The new Dunedin Hospital is now due to open in 2029. Photo: newdunedinhospital.nz
Te Whatu Ora has admitted the government's desire to cut about $100 million from the new Dunedin Hospital build has delayed its opening by almost a year.
Just before Christmas, the government announced a number of cuts to the planned facilities in the new Dunedin Hospital it had signed off in 2021.
This came after the project's budget blew out by $200 million.
Cabinet agreed to stump up just over half of that, a further $110m, leaving $90m in cuts to be found by Te Whatu Ora.
A number of hospital beds were now shelved - meaning space was available for them in future but they would not be hospital beds come opening day - as was some imaging services including the first publicly available PET CT scanner.
Some cuts were permanent, like the loss of two operating theatres, the pavilion building and a link bridge between the inpatient and outpatient buildings.
Officials from Te Whatu Ora hosted a media briefing and public forum on Tuesday to explain the consequences of Cabinet's decision.
Te Whatu Ora was directed by the government to find about $100m to cut from what was initially agreed, as prices skyrocketed due to inflation, but ended up with a plan to cut $90m.
Director of delivery Monique Fouwler confirmed the government's decision to redesign the hospital was the reason its opening had been delayed by almost a year to 2029.
"Yes, the redesign of the inpatients building has pushed the timetable out to a 2029 opening when it was a 2028 opening. There's no change to the delivery date for the outpatient building," she said.
However the outpatient building had already been delayed with its planned opening late this year now set for 2025.
So what was the cost of re-designing the already signed-off business case for the inpatient building?
"I can't give you the exact number of the actual redesign element because it's part of a bigger number that we pay our design teams," Fouwler told media.
Local Advisory Group chair Pete Hodgson - a former health minister during Helen Clark's premiership - told the public forum that of the $90m in cuts, more than half were architectural and unrelated to clinical services.
Dunedin City councillor Jim O'Malley said the cuts should end there.
"Architectural changes are already bringing in half the savings, so if that $90m shortfall has already dropped down to $45m .. why can't we just close that gap at this point?" O'Malley questioned.
"This is a decision of cabinet and I know that in this room who has authority over the final budget of this hospital. That gap is getting closer and closer to being closed, so why can't we send a message back to Wellington - close the gap with a cheque."
Absent from both the media and public briefings were the politicians who had made the decision not to spend an extra $45m on the hospital.
Dr John Chambers - a former Southern DHB board member and a senior emergency department doctor - said he hoped they were feeling the pressure.
"I'm sure the Cabinet are observing what's happening in Dunedin and the strength of feeling about this project within Dunedin and perhaps they'll reconsider the budgetary cuts."
He had no confidence the $1.58 billion budget would be the final figure.
"I think it will be exceeded by quite a lot of money in the end, and one wonders if any savings are actually false economy," Dr Chambers said.
Confidence about the budget was in low supply with Hodgson also expressing doubt it would not grow.
When asked during the media briefing what confidence Te Whatu Ora had that the project's budget would not grow, Fouwler responded: "As is now designed, that is the cost estimate we have. I can't give you confidence - it's a cost estimate. Until we get the final numbers in, no one can give you that confidence."
Chambers saw no benefit to the cost-cutting and thought the government should simply front up with the money needed to ensure the detailed business case was built.
Te Whatu Ora Southern Clinical Transformation Group deputy chair Professor Patrick Manning said hospital clinicians wanted assurance from the government no further cuts would be needed, as costs continued to balloon globally.
"I think we've pared down the hospital such that it will still be a very functional, state-of-the-art hospital. But any further reductions would have a significant impact on clinical capacity."
Dunedin mayor Jules Radich said the Dunedin City Council remained hopeful it could pressure the government to stump up more cash.
"What we want is delivery of the services and facilities as promised in the detailed business case."
