In tender documents released to the market this week, Health New Zealand Te Whatu Ora (HNZ) warned contractors bidding to build the substructure of the new inpatient building that ongoing cuts could bring the price of the contract down.
The documents said an ongoing "value management" exercise was aimed at making "significant" cost savings — somewhere in the order of 15%.
HNZ infrastructure delivery lead Blake Lepper told the Otago Daily Times its "value engineering" aimed at bringing the cost of the project down was now complete.
"Due to an increase in costs identified last year, it was necessary to consider whether there was scope to modify the design of the new Dunedin hospital inpatient building.
"This has been achieved through considerable analysis and planning to determine capacity needs and keep within the budget.
"The result means that we will shell some spaces in the inpatient building in order to meet capacity demands in the future as the southern population grows."
HNZ was confident the changes would not affect the core objective of the build, which was to provide the southern region with a fit-for-purpose, state-of-the-art facility that supported the needs of the community now and in the future.
"Our process for determining the best option for the new hospital included analysis of health demand modelling for Dunedin and the wider region.
"We have engaged with Dunedin Hospital clinicians and service designers on proposed amendments to the plans."
Asked if there had been further cutbacks since Health Minister Simeon Brown announced the government was going ahead with building on the former Cadbury site in January, Mr Lepper said: "Clinical capacity in the inpatient building remains as announced in January".
"Clinicians continue to be involved in refining the design following the minister’s announcement and will be key partners in the future operational commissioning of the inpatient building."
His comments come after the ODT reported the number of ICU beds has been cut back from 30 to 20 upon opening, while the number of mental health for older people beds has been cut back from 24 beds to eight upon opening.
After reports of budget blowouts, the government paused work on the hospital last year for several months as it deliberated over whether to go ahead with a scaled-back version of the original proposed design at the former Cadbury’s site or retrofit the existing hospital.
Labour MP for Taieri Ingrid Leary said the value management exercise was another example of the government short-changing Dunedin.
"The cancelling and reshuffling of services from the shelled sixth floor shows the clinical realities of nickel-and-diming the hospital — something this government promised not to do.
"Yet every day we hear of another clinical casualty due to this government’s cuts-by-stealth.
"No wonder people in the lower South are feeling anxious and forgotten by this government."
