It could cost up to $3 billion to build the new Dunedin Hospital as currently planned, which the government says is simply unaffordable.
Ministers announced on Thursday the planned redevelopment would either need to be reduced or done in stages.
Pete Hodgson is a former Labour cabinet minister, formerly the Minister for Health and MP for Dunedin North, as it was then known.
He was Chairperson of the Southern Partnership Group providing governance for the New Dunedin Hospital from 2017 until May of this year.