Government reverses $10m in hospital cuts

The Government is reversing $10 million of cuts to the new Dunedin hospital and Health Minister Ayesha Verrall has ruled out further "substantial re-designs", saying it's time to get on with the build.

Dr Verrall was in Dunedin today where she announced the return of an MRI scanner, previously planned to be shelled and potentially added later, and the return of a collaborative space for clinicians to work in.

Additionally, she said there would be no further re-design of the hospital.

“There will be no further substantial re-designs and now it’s time to get on with the build. It’s likely that further design changes would lead to increased cost and delay which no one wants.

‘‘I have allocated an extra $10 million for the hospital which will include an additional MRI machine and a complete fit-out of collaborative workspace. This is a reversal of a previous decision to ‘shell’ these spaces," she said. 

Dunedin Mayor Jules Radich welcomed the announcement, saying it shows the Health Minister has listened to the community. 

It comes after the Government in December last year announced $90 million in savings, along with $110 million in extra funding, to address a $200 million budget blowout.

Much of the cuts - including cutting operating theatres from 28 to 26 and not installing a PET scanner when the new facility opens - remain in place after today's announcement.

Dr Ayesha Verrall made the announcements during a visit to Dunedin Hospital today.  “There will...
Dr Ayesha Verrall made the announcements during a visit to Dunedin Hospital today. “There will be no further substantial re-designs and now it’s time to get on with the build." PHOTO: CRAIG BAXTER
Dr Verrall said two highly criticised aspects of the redesign - the removal of psychogeriatric beds and reduced space for pathology - would be the subject of investigations in the coming months.

The Government was open to further changes, depending on the result of those investigations.

She also announced that she and the Minister of Finance Grant Robertson had agreed to an additional $97 million to go towards data and digital infrastructure required to make the new hospital operational.

The use of the latest technologies would mean better patient flow and improved access to diagnostics and treatment spaces which would help reduce unnecessary delays, she said.

"The now $1.68 billion hospital is the largest ever health infrastructure project in New Zealand," she said.

Dr Verrall thanked the new hospital’s clinical transformation group - a group of clinicians involved in the project - and said the changes addressed concerns they had raised.

Members of the group have previously told the Otago Daily Times while they were largely happy with the design changes, they were concerned about the amount of collaborative workspace being shelled and the loss of an MRI scanner.

Chairwoman Dr Sheila Barnett and deputy chairman Prof Patrick Manning also called for the Government to rule out further "value management" and significant cuts.

Dr Verrall said the decision to reverse the cuts was something she had been considering since her first visit to Dunedin as Health Minister in February, on day two of the job.

"I really want to congratulate the clinical transformation group. They had held those clinical outcomes in the front of their minds throughout this entire process."

Positive step, says mayor 

Jules Radich
Jules Radich

Dunedin Mayor Jules Radich said today’s announcement updating plans for the new hospital were a welcome, positive step in the right direction.

“It is great the Minister of Health, Dr Ayesha Verrall, has listened to our community. The increased funding is a positive step and I am heartened by the commitment to no further cuts."

Mr Radich said his first priority would be to discuss the changes with members of the clinical community.

“Our clinicians know what is needed to provide quality healthcare to the people of the South. Today’s announcement is a positive step."

He urged people to continue supporting the nurses' petition as part of the ‘They Save We Pay’ campaign, while Dunedin City Council considered the announcement.

“Thank you for your contribution. We are being heard and your support has brought us to this point. Let’s continue to work towards the best possible outcome we can."

Dunedin nurses, midwives, health care assistants and kaimahi hauora are expected to pack the Octagon again on Saturday to rally for a fix to New Zealand’s health crisis.

They will be joined by their whānau and communities on a march from the First Church of Otago at 11am, to the Octagon where they will hear speeches, wave banners and enjoy family-focused activities until about 1pm.

It is one of 19 rallies being held across the country on the day, organised by the New Zealand Nurses Organisation Tōpūtanga Tapuhi Kaitiaki o Aotearoa (NZNO).

 

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