The Government yesterday announced $110 million in additional funding for the project to address a $200 million budget blowout, with design cutbacks to the value of $90 million to make the difference.
National Dunedin list MP Michael Woodhouse was critical of what the changes would mean for the $1.47 billion project’s future ability to service the area.
The hospital will now have 398 beds, 23 fewer than the 421 beds identified in the hospital’s final business case.
Operating theatres have also been cut, from 28 to 26, while the three MRI scanners have been reduced to two and the Pet CT scanner will be installed later.
The changes will all be made to the larger inpatient building, although the pavilion building and one link bridge between the inpatient and outpatient buildings will also not go ahead.
Enough space will be set aside for 12 more beds, two more operating theatres and an additional MRI scanner to be added in future.
The southern area had a growing and ageing population, and required a bigger hospital than was now set to be provided, Mr Woodhouse said.
The planned design had been only just sufficient before changes were made.
"The 421 beds was the bare minimum to run a viable hospital for the South in the 21st century."
The problem would have been avoided if the Government had not dragged its feet on the project as costs increased, as there had been a five-year wait already, he said.
Further delays would result in further cost increases.
He also dubbed the timing of the announcement "incredibly cynical", coming five days before Christmas.
Cutbacks were also criticised when proposed earlier in the year.
The Otago Daily Times was leaked a copy of Te Whatu Ora Health New Zealand — Southern’s September response to the proposed cuts.
It warned that many of the proposed cuts would likely end up costing more money in the long run.
Some cuts could also jeopardise the new hospital’s meeting of the targets set for it in the detailed business case considered by Cabinet when it approved funding.
Any change to the size and scope of the hospital would have a widespread negative effect, the report concluded.
Ngai Tahu’s Dunedin Hospital Build Executive Steering Group member, Dean Fraser, said it was disappointing the original design would not be going ahead.
Health NZ chief of infrastructure and investment Jeremy Holman said the budget pressure made it necessary to modify the hospital’s design.
"Dunedin Hospital clinicians and service designers were consulted on proposed amendments to the plans and were a big part of us reaching the updated design that meant we could save $90 million of the projected $200 million escalation," he said.
"We did this by focusing on how we could reduce any impact on key clinical services while considering design efficiencies."
Dunedin Mayor Jules Radich said the most important thing was getting the hospital built and the announcement delivered certainty for the project.
"It’s a bit of an early Christmas present for us all.
"This much-needed facility will be a key part of our city for decades to come, and it’s pleasing to see the Government has been working hard to deliver on its promises for our residents."
Enabling work is starting January 2023 for the inpatient building with main construction expected to start in the first quarter of 2024. Construction completion is expected in 2029.
There is no change to design for the five storey outpatient building which is on track to be delivered in late 2025.
Health Minister Andrew Little was unavailable for comment.
Design changes
- 398 beds on opening, instead of 421.
- 26 operating theatres, instead of 28.
- 2 MRI scanners, instead of 3.
- Pet CT scanner to be installed later.
- Pavilion building and one link bridge between inpatients and outpatients will not go ahead.
