Dunedin to get new hospital for $1 billion

Dr Jonathan Coleman

Wellington, August 19, 2017

Dunedin will get a new $1 billion plus hospital, in what will be the largest build of its type in New Zealand’s history.

I was happy to make this announcement with Prime Minister Bill English at Dunedin Hospital today.

The Government is committed to ensuring the people of Dunedin and the wider Southern community receive quality hospital care.

Assessing options

We have been assessing the options around refurbishing the existing site and building a new hospital. The decision has been made to rebuild.

This would maximise the opportunity of having a purpose-built, state-of-the-art facility, while also minimising disruption to patients and staff.

Largest rebuild

Given the scale of the project it is estimated to cost between $1.2 billion – $1.4 billion, making it the largest hospital rebuild in New Zealand history.

The original plan was to simply rebuild the services block, but the indicative business case has determined that the ward block also needs replacing and that has increased the cost significantly from the original $300 million estimate.

The Ministry of Health is working to secure an appropriate site for the new hospital, with a strong preference for a central city location. Depending on the location the new hospital will be opened in seven to ten years.

Given the size of the project the Government will consider all funding options including a Private Public Partnership model.

We are also taking steps to support the existing Dunedin Hospital while the rebuild takes place with an extra $4.7 million being invested into the Interim Works programme, taking the fund to $27.2 million.

Expansion of facilities

The programme includes the expansion of ICU to 22 bed spaces over the next 12 months. Taking the unit to eight ICU beds, 10 High Dependency beds and 4 beds which are flexible to be either as demand requires.

Increasing the number of co-located beds in ICU will greatly improve efficiency and enable more effective care of patients.

The programme also includes the expansion of the Gastroenterology Unit, which will support the roll-out of the National Bowel Screening Programme to the DHB.

This is a once in a generation opportunity to build modern and sustainable health facilities that will meet the future needs of Dunedin and the wider Southern community.”

The new Dunedin Hospital will follow on from the completion of the new $77.8 million Grey Base Hospital on the West Coast, as well as the almost $1 billion hospital redevelopment programme in Canterbury.

The Indicative Business Case for Dunedin Hospital can be accessed here.

Dr Jonathan Coleman is Health Minister of New Zealand.

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