The memos, unearthed by the Otago Daily Times and dated from late last year, centre on Health New Zealand Te Whatu Ora (HNZ) hiring government construction management agency Crown Infrastructure Delivery (CID) to help out with the build. The agency is no longer involved.
Last October, CID chief executive John O’Hagan had pitched his agency’s involvement to HNZ managers on the understanding HNZ lacked internal capability. The pitch got the support of Blake Lepper, then HNZ lead for the project but also no longer in charge.
On November 14, Mr O’Hagan sent a memo to Infrastructure Minister Chris Bishop saying CID’s involvement was an "exciting development" that would lead to "great access to quality care through better and more affordable health infrastructure".
The memo, "No Surprises: HNZ engaging CID to work on New Dunedin Hospital", said a letter of intent would outline "the nature of CID support for HNZ during the reset of the hospital project and delivery of that project".
However, HNZ chief infrastructure and investment officer Jeremy Holman played down CID’s involvement and sought joint communications about the arrangement.
In a handwritten change to a briefing seeking then health minister Dr Shane Reti’s approval for CID’s involvement, CID’s involvement was altered from "potentially assume responsibility for" delivering the inpatient building to "potentially support Health NZ with" delivering it.
In another draft briefing, from Mr O’Hagan to ministers about the agreement, a line was crossed out that said then-health commissioner Lester Levy, now HNZ chairman, was "very supportive" of CID’s involvement.
In an email to Mr Lepper, Mr Holman said he was "very nervous" about "concerning" phrases used in a draft communications document that implied CID was "targeting/doing much more work for HNZ".
"This is exactly the comms and optics we must avoid," Mr Holman said.
A few days later, Mr Holman pulled up Mr O’Hagan for sending his "no surprises" memo about the partnership to Mr Bishop, saying: "Is this somewhat early?"
Mr Holman had previously said he wanted to send a joint letter from the two agencies to Mr Bishop because the minister was "taking more and more interest in health infrastructure ... I am keen to recognise that and also that we see [the inpatient build] as being an area for the ‘best of government’ approach."
On the same day the "no surprises" memo was sent, Dr Levy rapped Mr Holman over the knuckles for not keeping him in the loop.
"I do think you need to thoughtfully consider how you more formally work within the existing HNZ authorising environment," he said.
CID has no experience of building hospitals, but it appears some HNZ staff involved in CID’s engagement were unaware of that.
