Despite the frustration, Queenstown Lakes District Council Mayor Glyn Lewers remains confident and had been assured the hospital will be built and done so under budget.
"Dunedin’s going to get a hospital that is going to be a first-class hospital."
Last week, government ministers said spiralling costs meant it could cost $3 billion, prompting a re-think of the project.
Mr Lewers said his views on the Dunedin hospital aligned more with Waitaki District Mayor Gary Kircher, as opposed to those of Clutha District Mayor Bryan Cadogan.
From meetings he had attended, he understood the government had started to recognise the demand and the growth of inland Otago.
"I’ve been very appreciative of that.
"In inland Otago, we have a higher risk profile because we don’t have a certain level of service."
People living in Upper Clutha and Queenstown had to travel up to three and a-half hours for a standard appointment sometimes, he said.
The suggestion that helicopters could cover the healthcare of the district was "flawed".
"Let’s be frank. [The government] made a promise and they’ve walked away from that promise.
"But if I took a very dispassionate view and took the emotion out of it, my task here is to improve the healthcare situation in my district."
The recent announcements signalled a realisation that the original business case did not acknowledge the growth demands of inland Otago, he said.
Invercargill MP Penny Simmonds was "extremely disappointed" with how the hospital project had progressed.
"It’s really important to have a good standard hospital in Dunedin.
"It’s an important issue to ensure that we get really good value for money out of our infrastructure spend.
"It’s been really disappointing to see how this has gone from a $1.2b to $1.4b project up to one that’s getting closer to $3b."
Southland MP Joseph Mooney agreed that last week’s announcement was disappointing.
"I certainly understand how deeply New Zealanders — and particularly all of us in the lower South Island — care about the delivery of health services, and the passion shown in Dunedin reflects that."
The announcement was "necessary" to ensure the progress of the country’s hospital network, he said.
"As a local MP, I will continue talking with ministers about how we can best move forward with this critical project for the health of the South."
In a social media post, Waitaki MP Miles Anderson said the hospital was important to all.
"I will continue advocate for and highlight the current regional sentiment around the Dunedin hospital to the Minister at every opportunity."
Central Otago Mayor Tim Cadogan, who was also supportive of a new hospital in inland Otago, could not be reached for comment.
