To be attributed to Blake Lepper, Health NZ Head of Infrastructure Delivery

Health New Zealand welcomes the recommendations of an independent review into the New Dunedin Hospital Inpatient Building and is working urgently to provide Ministers with advice on options to deliver the project within budget.

The review, released today, was commissioned by Ministers and undertaken by the Infrastructure Commission – Te Waihanga. It found that sustained global inflation and international supply pressures have made delivery of the project as currently scoped within the budget highly unlikely. 

We also welcome the clear parameters and additional funding Ministers have provided and are working at pace to assess the impact of changes and recommend a preferred option to them.

Two options are being considered, both incorporating the Outpatient Building:

  • Revision of the project’s specification and scope within the existing structural envelope, such as reducing the number of floors, delaying the fit-out of some areas until they’re needed, and/or identifying further services that can be retained on the existing hospital site or in other Health NZ buildings within Dunedin among other possible solutions.
  • A staged development on the old hospital site including a new clinical services building and refurbishing the existing ward tower.

The announcement today does not impact the Outpatient Building which is due to open for patients towards the end of 2026.

Health New Zealand is confident we have the right governance, leadership and expertise to deliver a modern hospital and health services for the people of Dunedin and the wider region within the new budget and driven by clinical needs and new models of care.

We acknowledge the challenges and the concerns of our local staff, the community and taxpayers, and know the community and staff are eagerly awaiting news. Our focus now is to move forward and provide them with certainty as fast as we can.  

We will consult with critical stakeholders, including clinical leaders, to ensure we understand the benefits and risks before a final decision is made.

The context we are working in recognises significant pressures on the health budget, despite record investment. We know that other major hospitals around New Zealand also require significant capital investment.