Southern Cross Hospital, Skin Institute Queenstown (formerly Clinic QT), the Queenstown Medical Centre and Remarkables Park Ltd were granted resource consent in March for a hospital and medical centre, including four operating theatres, a day surgery unit, recovery rooms and an accident and emergency centre.
Southern Cross Hospitals chief executive Terry Moore said the proposed development was on hold.
"Southern Cross Hospitals is waiting in the wings while the DHB completes its hospitals' needs analysis. The direction our proposal takes will depend on the directions the DHB decides to pursue."
Southern Cross, as a not-for-profit organisation, was a good potential partner for the DHB.
"We remain keen to be part of the solution for the Queenstown area," he said.
Queenstown's health services have come under the spotlight this week following the release of Wakatipu Health Trust's health needs assessment, which exposes an underfunded public health service.
The assessment highlights an inequity of access to local hospital services for Queenstown residents, particularly aged care, and an urgent shortage of hospital beds.
The report was released at a public meeting attended by about 150 people in the Queenstown Memorial Hall on Thursday night.
Southland DHB chairman Paul Menzies told the meeting the board was conducting its own hospital capacity review.
"It will not just look at current issues, but also future needs and models of care," he said.
Remarkables Park Ltd director Alastair Porter said he was keen for the Southern Cross hospital to go ahead but wanted to hear what the DHB had to say.
He said the Wakatipu Health Trust should look at all solutions, including a mix of public and private hospital services.
"The quality of a major new hospital will far exceed the current hospital and it won't be reliant on health board capital . . . it's going to be a good solution for the town," he said.
Land had been zoned at Remarkables Park for an integrated health care precinct, combining hospital services, a retirement village, a medical centre, skin cancer and appearance medicine, with provision of land for an aged care facility.
Otago and Southland DHB chief executive Brian Rousseau said the board's hospital capacity review would cover all hospitals in Otago and Southland.
He would meet all rural hospital managers on October 15 to discuss the draft report.
