Clutha-Southland MP Bill English says the Southern District Health Board (DHB) and clinicians should decide if a CT scanner is based in the hospital in Queenstown or Clyde.
The Deputy Prime Minister and Finance Minister also backed the DHB chairman's declaration the board will "pick and choose" which of 21 recommendations from the National Health Board review of Wakatipu health services it will implement.
Mr English was asked for his opinion on where the diagnostic scanner should be based.
"I think it's a decision best made by the DHB along with the clinicians," he said. "It's important that wherever it goes the decision is going to be based on the interests of patients and that it is going to be sustainable.
"At the same time, the DHB needs to be focusing on getting stability on the the broader health services in Queenstown. The scanner is interesting and worthwhile, but it's not the most important issue."
Mr English was asked for his reaction to comments by chairman Joe Butterfield who said recently the DHB would select which National Health Board recommendations it would follow.
NHB panel chairman Dr Peter Foley assured residents during almost four months of consultation the recommendations would be heeded by the DHB.
Mr English said events had moved on.
"I don't think we should be bound by everything that committee said. I was always a bit concerned it didn't have to look at the financial constraints and so the DHB need a bit of room to move."
Asked if the Government would stump up extra funds to pay for a scanner and its operation, Mr English said the DHB would have to do it within its budget.
"In a number of places around New Zealand these facilities are publicly funded and privately operated, which allows for a better utilisation of the asset and I would hope that they are going to look at those options."
The district health board has decided a panel and terms of reference should be set up to review the scanner location, with input from the fledgling Wakatipu Health Reference Group and the Dunstan Hospital operating company Central Otago Health Services Ltd. It aimed to make a recommendation to the board's June 2012 meeting.