The Ministry of Health is contracting out the "indicative business case'' for the $300 million delay-ridden redevelopment, and has told potential tenderers a PPP should be considered.
At the same time, the ministry has separately called for tenderers for "a hospital services planner and architect'' whose work will support the business case writer.
The bill will be paid out of a $5.9 million two-year budget for the Government-appointed "Southern Partnership Group''.
When contacted, the ministry said consideration of a PPP was standard practice in hospital redevelopments.
PPPs are opposed by the senior doctors' union, the Association of Salaried Medical Specialists, partly because of how they have performed in the United Kingdom.
ASMS executive director Ian Powell said PPPs had a "track record of failure''.
Mr Powell said a PPP seemed unlikely in Dunedin because private investors tended to shy away from tricky "brownfield'' developments.
Although nothing is confirmed, the development is expected to be on the busy Dunedin Hospital site.
Mr Powell said it appeared consultants were doing rather well out of the redevelopment.
A consulting firm has been busy at the board for several months writing a "strategic assessment'' and a "strategic service plan''.
Former health board member and ASMS spokesman John Chambers said PPPs appeared attractive but made no financial sense.
"The attraction for the DHB of the PPP is that the conglomerate does all the work and nothing has to be paid till the day the DHB gets the keys.
"The disadvantage is that it can cost a lot more taxpayers' dollars in the end when compared to a traditional way of funding - and there are often traps like lucrative contracts for maintenance,'' Dr Chambers said.
A person familiar with the process of developing business cases for large projects said the lack of public visibility around the project was unusual.
The source, who declined to be named, said the public should be told more about what was being considered for Dunedin.
It had an impact on the wider region.
There were unanswered questions about what would be provided in Dunedin, the role of Southland Hospital, of rural hospitals, and whether more services would be provided in Christchurch.
"Clearly, there's a plan. Why don't they tell us what the plan is?''
Taking time to consider a PPP probably meant more delays, the person said.
"You don't want to spend a whole lot of time exploring various outcomes rather than just getting on and choosing an option and getting an outcome, because it just adds to the date before you break dirt.''
In a statement, Southern Partnership Group chairman Andrew Blair, of Hawkes Bay, said the indicative business case would be ready by the middle of next year.
The strategic assessment would be presented to the partnership group later this month.
"In the interests of expediting the work required to enable decisions to be made as soon as possible, ministers approved parallel work being undertaken on the strategic assessment and IBC.''
