The Charlotte Jean Maternity Hospital Trust, which runs a maternity hospital in Alexandra, had hoped to build the centre at 28 Blackhead Rd as an alternative to the Queen Mary Maternity Centre, for women expected to have low-risk labours.
Planning for the centre began in 2002 with the trust granted resource consent for the proposal in June 2003.
Despite support for the idea from various maternity-related organisations, it was unable to secure a contract from the board to provide maternity services.
Asked for comment, board chief executive Brian Rousseau said it was possible the situation could be revisited in future, in the changing community health care environment, but indicated it was not a high priority.
"We've got enough on our plate at the moment," he said.
One of the key reasons a birthing unit had not been pursued was there were insufficient births to justify two separate facilities, he said.
Trust chairman Robin O'Brien said he had noted recent comments from the board's women's health clinical director Dr Alex Teare saying it was not ideal to have women expected to have low-risk labours coming into the same environment as high-risk mothers, and a satellite unit would be of tremendous benefit to Dunedin and the surrounding area.
Dr Teare said lack of money was given as the reason for it not going ahead.
Mr O'Brien said the trust's proposal would not have required capital expenditure from the board.
When the trust advised the board last April of its intention to sell the land, the board reiterated it would not support the maternity service and it would not be interested in buying the land.
The land has since been sold.
Mr O'Brien said he had recently written to the various consumer groups supporting the proposal and advised them the trust had abandoned it.
"It's a shame for women," Mr O'Brien said.
He was disappointed the trust had never been given the opportunity to speak directly to the board over the issue.
Correspondence between the trust and the board over several years showed requests for public consultation over the issue were not accepted by board management because it only consulted about possible service changes and none were being considered in the maternity area in Dunedin.
This meant the trust's proposal was not put before the board.
In a November 2003 letter, chief planning and funding manager Chris Fraser advised "we very rarely present unsolicited applications for funding to the board in isolation, and would only consider doing so in exceptional circumstances".
It was essential the board was presented with a balanced report of all perspectives and that this was supplemented with an accurate assessment of the service and financial implications of the options being considered, he wrote.
Mr Fraser also stated the Ministry of Health's policy was that satellite units were unlikely to be considered appropriate where the volume of births in the base facility dropped below 1800.
He pointed out it was ministry policy where a satellite unit was deemed appropriate, the first right of refusal to deliver such a service should be given to the current provider of services.
In Otago's case this would be the board.
Given the financial challenges facing the board, consideration of such a change was a very low priority and unlikely to be considered in the foreseeable future, he wrote.
Figures supplied by the district health board showed the number of births at Queen Mary exceeded 1800 in 2007 and 2008: 1856 and 1862 births respectively were recorded.
In the three years before, the numbers ranged from 1721 to 1771.
In the 11 months to the end of November last year, 1659 births had been recorded.
In 2005, the trust advised the board it was still intending to pursue the proposal, but its request for the board to receive a delegation from those supporting the proposal was refused because it was considered a review of the board's position was not warranted at that time.
Mr Rousseau advised then it was the board's intention to review the proposal more fully in 2006-07, and if it found favour it would be discussed with interested providers.
The lack of a primary birthing centre in Dunedin has been criticised by midwifery representatives and women's groups for some years.
Among their concerns are that only about 20% of women need to give birth in a tertiary hospital and that the risk of unnecessary medical interventions increases in that setting.
In a 2002 letter of support for the primary birthing unit concept, Otago Polytechnic acting head of the school of midwifery Jean Patterson said the reduction in intervention that would result from mothers having access to a birthing unit would be positive for mothers and babies as well as leading to significant cost savings for the board and the wider health system.
She noted the New Zealand College of Midwives believed primary birthing units were the country's best opportunity to reduce the spiralling and costly unnecessary intervention rates in maternity services.
Existing units had already demonstrated their safety and excellent outcomes, she said.
