The Southern District Health Board moved to end elective surgery outsourcing with Mercy Hospital, but then changed its mind, Mercy chief executive Richard Whitney says.
The DHB is commissioning a ninth operating theatre at Dunedin Hospital, for more elective surgery.
However, a gap between the start of the new financial year, and commissioning of the theatre, seems to have prompted the DHB to renew its contract.
Mr Whitney said he was told about six weeks ago the DHB no longer required the electives contract as of July 1.
Three weeks ago, he was advised of a turnaround.
The contract enabled about 400 public sector patients a year to get elective surgery at Mercy.
Details of the new agreement were to be worked through, and a meeting was planned in the next week or so, with the DHB, he said.
Southern DHB deputy chief executive Lexie O'Shea, through a spokesman, said the contract was under negotiation with Mercy and was commercially sensitive.
"We have yet to confirm the finish date of the ninth theatre as the tender process has yet to be completed."
The spokesman said the theatre would be ready "post-November".
"Providing elective surgery to those who need it is very important to us.
"The DHB has exceeded its elective surgery targets this year and we are working to ensure we will be well placed to meet those targets in the coming year."
