On Tuesday, the Government announced $110 million in additional funding for the project to address a $200 million budget blowout.
The remaining $90 million will be saved by design changes to what is now a $1.58 billion project.
Changes include a reduction in hospital beds to 398, 12 fewer than planned, and fewer operating theatres — 26 rather than 28.
Three MRI scanners have been reduced to two and the PET CT scanner will be installed later, while the pavilion building and one link bridge between the inpatient and outpatient buildings will not go ahead.
Dunedin Hospital’s former emergency department clinical leader and elected board member, Dr John Chambers, said the Government’s treatment of the project showed a lack of urgency.
"We’re not coping now in any way," Dr Chambers said.
The final business plan for the project had been quite good, and he was "very disappointed" the cuts had been made.
However, space had been set aside to increase beds by 12 and add two operating theatres and another MRI scanner at some point, and he remained hopeful the situation would be improved in future.
Oncologist Lyndell Kelly said cancer services might be affected and it would be another instance of outsourcing diagnostic services.
Oncology was already "a mess" and there had been no plans in place to remedy this in the new build, as the oncology building was deemed to be fit for use into the 2040s.
Mr Little said the project was future-proof despite the cutbacks, emphasising the space to make additions later.
He denied a lack of urgency, describing the project as large and complex.
People needed to think about the project in the long term, rather than just the next few years, he said.
"These are buildings that will last between 50 and 75 years — with that time there are other capital projects that will be considered."
This included a possible expansion of Southland Hospital and a possible new hospital campus in North Otago.
Asked if he had a message for anyone feeling disappointed or cynical about the project, he denied such sentiments were widespread.
"You’re the only one expressing cynicism aside from the National Party.
"Dunedin will have a state-of-the-art hospital that suits its needs."
Te Whatu Ora Health New Zealand (HNZ) delivery of infrastructure and investment group director Monique Fouwler said the reduction in beds would come from the mental health services for older people (MHSOP) ward, which would open with 12 beds, rather than the planned 24.
This aligned with the interim New Zealand health plan to strengthen primary and community care, Ms Fouwler said.
An error in which some beds were counted twice led to the figure of 421 beds being given in the detailed business case.
"The number of overnight beds planned for the new Dunedin hospital inpatient building was always 410."
There were no changes to other wards and the number of high-dependency beds remained as planned, as did same-day beds, she said.
However objections were made to many of the cuts while they were only proposals, as detailed in an HNZ Southern impact statement leaked to the Otago Daily Times earlier this year.
A reduction to the available beds in the MHSOP ward was warned against.
"[This] will most likely contribute to reduced patient flow and potential bed block in emergency department and inpatient units," the statement said.
HNZ chief of infrastructure and investment Jeremy Holman said HNZ was advised of the funding decision last Friday.
It was the best option for delivering the new hospital in the current conditions, he said.
"These design adjustments will not compromise access to healthcare."
