Public-funded Otago District Health Board (ODHB) operations are being done at Mercy Hospital for the first time and the private hospital could easily do more - as Otago health bosses say they will struggle to spend an extra $1.8 million on elective surgery.
Mercy Hospital chief executive Mike Woodhouse said the private hospital had been doing public-funded operations for South Canterbury for the past four years and it would be a shame for Otago residents to miss out on surgery by not making use of private facilities.
"We have made it very clear that we believe there is both a need and an opportunity to develop an ongoing relationship which enables Dunedin Hospital to more readily turn to Mercy when the need arises.
A $1.8 million budget windfall for elective surgery in Otago was met with guarded enthusiasm as chief executive Brian Rousseau said the Otago board may have "some difficulty" in spending the money.
Dunedin Hospital has been struggling with staff shortages and a high level of acute admissions for some time.
The board would have to consider purchasing private services from Mercy, as well as general practice and other health boards.
"We are committed and want to get the work done; it is just how that is the issue."
The board is behind targets for orthopaedic procedures this financial year and for the first time it is paying Mercy Hospital to do 16 joint replacements this month and next.
Mr Woodhouse said with proper advance planning Mercy Hospital could do a "few hundred" operations for Dunedin Hospital, which would still only be a small percentage of the about 6000 cases it had every year.
While Mercy Hospital could offer help, he was not actively pursuing such work as it would not be in its interest to become heavily reliant on ODHB work, Mr Woodhouse said.
The two hospitals should be working together to address medical specialist shortages and it was important to make sure potential new doctors were aware there were opportunities to develop a private practice in Dunedin, he said.