Losing Waitaki health care could ''seriously impact'' services at Dunedin Hospital, high-level advice released under the Official Information Act shows.
Waitaki has threatened to join the South Canterbury District Health Board over a long-running funding dispute with the Southern District Health Board.
Ministry of Health advice to Health Minister Dr Jonathan Coleman says Waitaki is fairly served under its existing arrangement, and breaking away would benefit only one party - South Canterbury.
Waitaki District Health Services chairman George Berry was undeterred when contacted yesterday, saying the trust is working with South Canterbury on the idea.
A resolution to the funding row is expected soon, Mr Berry confirmed yesterday (see side story).
However, the Waitaki trust is still pursuing the breakaway option, as it could be in the area's interests to link with Timaru rather than Dunedin.
The advice released under the OIA says the Southern board reviewed its spending on Waitaki patients, and this was peer reviewed by the ministry.
''Our review largely agrees with the DHB's analysis, which indicates that the Waitaki population receives their fair share of expenditure when compared with revenue under population based funding.
''Therefore it appears to the ministry that the only likely beneficiary of any boundary change would be South Canterbury DHB.''
Some services in Dunedin could be seriously affected, both clinically and financially, by losing the Waitaki population, the advice says.
The next step would be a ''major piece of analysis'' of the effects, and the Southern District Health Board had ''other priorities at the moment''.
Any such move would need approval from Dr Coleman and the Cabinet, the advice points out.
Mr Berry said he was happy to continue the process through a joint study with South Canterbury.
Nothing would happen quickly, he said.
''It's got to be seen in the context of the longer term.''
Ever since the old Waitaki health board was disestablished, there's been an issue as to whether Waitaki is served best by the closest base hospital, which is Timaru, or by Dunedin.
''The decision in the past was to go with Dunedin, because it was felt that Dunedin had more to offer. But that was in the days when the hospital in Dunedin was in much stronger shape than it now appears to be.''
Most Waitaki people lived closer to Timaru than Dunedin, and it was an easier drive, especially in winter. Dunedin would still be needed for ''high end stuff'' that Timaru did not provide.
The Southern board's long-term plan seemed to involve referring more patients to Dunedin and downgrading rural hospitals, which did not make sense, Mr Berry said.