Treasury delays Dunedin hospital rebuild

Last year the Government tried to speed up the process to rebuild Dunedin Hospital but Treasury slowed things down. Existing buildings are deteriorating, particularly the clinical services block which includes operating theatres.

ODT: Brakes put on hospital

The Treasury has managed to slow down the Dunedin Hospital rebuild, despite the  clinical services building being at risk of abrupt clinical failure. Advice released under the Official Information Act shows the Treasury warned Finance Minister Bill English that haste was a “major risk to a successful outcome”.

Last year, Health Minister Dr Jonathan Coleman told officials to try to speed things up. In response, health officials proposed shortening the lengthy Treasury-approval process by six months.

But the Treasury told Mr English: “The [Southern Partnership Group] and the Ministry [of Health] are coming under pressure to expedite timelines for the business case process. We see this as a major risk to a successful outcome.”

The March advice was not the first such warning from the Treasury, but the Otago Daily Times has ascertained that its advice meant a move to speed up the project was scrapped.

Late last year, the ODTreported  Treasury had warned both Mr English and Dr Coleman against speeding up the timeframe.

Southern Partnership Group chairman Andrew Blair, in a statement to the Otago Daily Times, said the group settled on a slightly slower timeframe which struck an “appropriate balance”.

A new hospital is more than seven years from completion. The ministry has said it is looking at the entire hospital campus, and it has not said exactly what will be built, nor the site.

An official assessment of the clinical services building says it is “crumbling” and at risk of a significant defect that causes its abrupt closure.

The clinical services block in particular has a number of problems. In 2014 there were major leak problems in the operating theatres.

ODT: Q&A: The Hospital rebuild

The clinical services building is crumbling and suffered years of maintenance neglect.

It does not meet standards for electrical wiring, infection control, and management of dirty laundry. 

Its asbestos problem means even though there’s a special budget now for deferred maintenance, some areas are no-go.

Built in the 1960s, it’s at risk of abrupt clinical failure.

There are concerns it would not withstand a significant earthquake.

What about the ward block?

Even though it’s younger (built in the 1970s and commissioned in 1980) the ward block has suffered from the same deferred maintenance as the CSB.

It needs “substantial renovation”.

A 2012 assessment deemed its remaining “service life” at just under 16 years.

It “needs systematic re-lifing or will otherwise stumble through with reactive upgrades as building systems fail” according to an official assessment.