Union against private funds for hospital

The senior doctors’ union is opposed to the idea of private financing being used to build  Dunedin’s new hospital, and says patients will suffer if it goes ahead.

On Saturday, Prime Minister Bill English announced the Dunedin Hospital redevelopment would be a new build costing $1.2 billion to $1.4 billion.

Both of the options - a new site, or building at Wakari Hospital -  would be completed in 2027.

"Starting again is the most economically efficient, but also the step that needs to be taken to provide the next generation of health services across the South.

"We also want to look at the possibility of it being under a public-private partnership (PPP). We’ve found this model very successful for schools."

The Government’s preference is a central-city location for what will be ‘"the largest hospital build in New Zealand". Association of Salaried Medical Specialists executive director Ian Powell said senior doctors were staunchly opposed to a PPP.

"If the Government does go down this track in Dunedin, then it would essentially be handing over the keys for one of the country’s biggest public hospitals to private investors to maximise extracting profits for themselves."

Much of these profits would come from repayments Southern DHB would be forced to pay out of its increased annual operating expenses.

"The winners are private investors through profit extraction and the Government’s financial books. 

"The losers are patients with the increased risk of deterioration of services and increased barriers to timely access for treatment," Mr Powell said.

Health Minister Jonathan Coleman announced $4.7 million extra interim works funding for the existing hospital.

Yesterday DHB chief executive Chris Fleming told the Otago Daily Times the money had already been spent, as it would pay for the cost increase in the new intensive care unit.

Dunedin Mayor Dave Cull said he was pleased the Government listened to the community’s preference for a central-city location.

Prime Minister Bill English, flanked by Dunedin-based list MP and cabinet minister Michael...
Prime Minister Bill English, flanked by Dunedin-based list MP and cabinet minister Michael Woodhouse (left) and Health Minister Johnathan Coleman in Dunedin on Saturday. Photo: Stephen Jaquiery

"I do still have reservations about the fact that the option of rebuilding on the current Wakari Hospital site remains on the table.

"But I am encouraged that the Government has reached the same conclusions as the majority of our community in that a central-city rebuild is the clear preference," Mr Cull said in a statement.

SDHB commissioner Kathy Grant said the scale of the planned project was "incredibly exciting".

"We now have the assurance that the new design won’t be constrained by any existing infrastructure.

"We now also know that we can avoid the significant disruption to services at Dunedin Hospital while the new hospital takes shape."

Dunedin North MP and Labour health spokesman David Clark said Labour would rule out a PPP if it won the election as they had not worked overseas. He said the timeframe for the build was too slow, and Labour would begin construction in its first term.

eileen.goodwin@odt.co.nz

New hospital new site

Officials scouting for central  site.

• Completed February 2027.

• Unknown site work requirements as yet.

• No disruption to existing services an advantage.

Wakari Hospital site

• New build on existing  site.

• Completed December 2027.

• Would encounter community opposition.

• Commissioning could take longer due to demolition work.

• Helicopter service may be  issue.

Timeline

2014:  Southern District Health Board starts planning long-awaited hospital redevelopment, saying it is up to 10 years from completion. At this stage, it is just the clinical services building. Then health minister Tony Ryall promised the business case would be finalised in 2015. 

2015: Little happens as DHB gripped by financial issues and board sacked. A "partnership group" comprising mostly North Island members is appointed.

2016: Several firms of consultants engaged. Official assessment reveals  "crumbling" clinical services building  at risk of an abrupt failure.

March, 2017: Dunedin City Council launches campaign for central city rebuild.

August, 2017: National announces $1.2billion to $1.4billion new build with preference for central city site but no guarantee. Building at Wakari Hospital will be explored, as will financing it through a public private partnership. Timeframe  about 10 years to completion.

Comments

As opposed to handing over the keys for one of the country’s biggest public hospitals to senior doctors to maximise extracting profits for themselves --- the current situation.

Mr Powell clearly has no sense of irony or shame.

I note in the current system there seem to be many doctors running lucrative private practices as well as working for the DHB. I have always found this a bit odd that I have to wait a year to see a Doctor in Public, but can see the same person next week in his private clinic. Surely the public/private lines are already quite blurred.

If the doctor's union is against private involvement then I wonder if it is because that might hinder their usual high salary demands.

 

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