It was clear the staff were dedicated at all levels and there were some innovative rural medical training programmes in place, he said.
He was accompanied by Southern District Health Board (DHB) commissioner Kathy Grant and Central Otago Health Services Ltd (COHSL) board members and staff.
The health company runs Dunstan.
Dr Coleman said he was aware how passionate the community was about its hospital and that was reinforced by the series of public meetings run by the health company in May, to highlight its proposed budget cuts.
The meetings, in Alexandra, Cromwell and Wanaka, attracted a total attendance of about 1700.
The feedback since the sacking of the DHB was that the community was pleased the board's financial situation was being addressed, he said.
There had been district-wide concerns about the future -''so something had to happen and now the challenge is putting a plan together and implementing it''.
There was no suggestion Dunstan, or any other hospitals in the southern region, would be closing, Dr Coleman said.
COHSL chairman Russell McGeorge said the health company was pleased Dr Coleman had visited to get a different perspective on rural health care.