Health minister Jonathan Coleman and Prime Minister Bill English announced this morning the Government would be spending $1.2 billion to $1.4 billion on replacing Dunedin's ageing hospital.
This would make it the largest hospital rebuild in New Zealand history, the pair said.
Depending on the location of the hospital, the aim was for it to open in 7 to 10 years and the Government was considering a public-private partnership model to help fund the rebuild.
Mr English said starting again with a complete rebuild of the hospital was the most economically efficient way to go and it was a "step that needs to be taken".
A central city site was preferred, but a final decision on the location had not been made yet, Mr English said.
"I know this will be welcomed news for people in Dunedin certainly but also as the Commissioner pointed out, to the wider southern area."
Mayor Cull welcomed the Government's announcement and was encouraged it had listened to the community’s preference on the location of the rebuild.
“I am pleased that the Government has committed to rebuilding Dunedin Hospital.
"An investment of up to $1.4 billion is a far greater level of investment than had first been indicated, so this gives me reassurance that a top flight teaching hospital will be retained in the city.
“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
Dr Coleman said the Government was committed to ensuring the people of Dunedin and the wider Southern community received quality hospital care.
After assessing the options around refurbishing the existing hospital, the decision was made to start a fresh.
“This would maximise the opportunity of having a purpose-built, state-of-the-art facility, while also minimising disruption to patients and staff.
“Given the scale of the project it is estimated to cost between $1.2 billion - $1.4 billion, making it the largest hospital rebuild in New Zealand history.
“The original plan was to simply rebuild the services block, but the indicative business case has determined that the ward block also needs replacing and that has increased the cost significantly from the original $300 million estimate.
“The Ministry of Health is working to secure an appropriate site for the new hospital, with a strong preference for a central city location.
"Depending on the location the new hospital will be opened in 7 – 10 years.
“Given the size of the project the Government will consider all funding options including a private public partnership model," he said.
The Government was also taking steps to support the existing Dunedin Hospital, with an extra $4.7 million being invested into the interim works programme, taking the fund to $27.2 million.
The programme included the expansion of ICU to 22 bed spaces over the next year, taking the unit to eight ICU beds, 10 High Dependency beds and 4 beds which are flexible to be either as demand requires.
It also included the expansion of the Gastroenterology Unit, which will support the roll-out of the National Bowel Screening Programme to the DHB.
Southern District Health Board (SDHB) also welcomed the Government’s announcement
SDHB commissioner Kathy Grant said the scale of the investment is "incredibly exciting".
“We are extremely excited about this huge investment in health infrastructure in our district.
"It goes beyond what we initially imagined.
"We now have the opportunity to build the hospital our patients and staff deserve – remembering that this is not just for Dunedin but the whole Southern district and the specialist services we deliver," Mrs Grant said.
She was also pleased the new design would not be constrained by existing infrastructure, given re-configuring the current site had been ruled out.
"We now also know that we can avoid the significant disruption to services at Dunedin Hospital while the new hospital takes shape."
SDHB chief executive Chris Fleming said the announcement was a "once-in-a-generation" to put SDHB at the forefront of health planning and technology advances.
“This is a massive opportunity, not just for the DHB, but also the university and polytechnics that provide critical teaching, research and education, and the wider community who will benefit from the facility.
"We look forward to working together to make the most of it," Mr Fleming said.
