12 Apr 2023

Palmerston North Hospital's new mental health unit gets more funding

3:12 pm on 12 April 2023

Palmerston North Hospital. Photo:

Additional funding has been confirmed for Palmerston North Hospital's long-awaited mental health unit, which is facing a multimillion-dollar blowout.

RNZ revealed in March costs for the build had gone up 71 percent, but officials won't yet say how much extra money has been approved.

The government signed off on the new ward in 2020, with a budget of $30 million and a contingency of $5m, meaning costs could hit $60m.

Last month, RNZ reported that MidCentral has asked for another $27m for the new ward.

The new ward was originally expected to open in late 2022, but construction is now slated to finish in 2025.

Reviews in 2015 found the present ward not fit-for-purpose, a year after the suspected suicides of two patients, Shaun Gray and Erica Hume.

A Te Whatu Ora spokesperson confirmed the ministers of health and finance, Dr Ayesha Verrall and Grant Robertson, have approved "some additional funding for the replacement acute mental health unit at Palmerston North".

"It is not currently possible to disclose the value of that extra funding," the spokesperson said.

Hume's mother Carey and Gray's brother Ricky last month said they were concerned to hear of the blowout.

Ricky said it could have been avoided if the ward was built earlier, while Carey said there was risk the ward design would be compromised.

Carey Hume (left) at the inquest of her daughter Erica Hume (in framed picture) who died in a suspected suicide when she was a Palmerston North Hospital mental health ward patient.

A picture of Erica Hume is sitting in the courtroom next to where her mother Carey and father Owen are sitting. Photo: RNZ / Jimmy Ellingham

Te Whatu Ora said there would be no reduction in the number of beds at the new ward. The organisation previously said the new ward would have 30 beds, with provision to extend to 38. The present ward has 28.

"Since the business case was approved, the design has been developed to account for changes to the building code, a requirement to manage airborne infectious diseases within the unit, and to include improved environmental sustainability and resilience, and cultural elements," the spokesperson said.

"There has been no change to the number of beds planned for the new facility."

The spokesperson said "early works" at the site began in February.

"Contractor engagement is in accordance with the government procurement rules and LT McGuinness has been selected to undertake the construction. The main construction will begin shortly.

"The estimated completion date for the building is [the second quarter of] 2025."

Last month Te Whatu Ora said since the original business case was approved in 2020 the cost of infrastructure projects had increased, partly due to inflation and pandemic-related costs.

In 2021, another patient of the present ward died in a suspected suicide.

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