Email leaves uncertainty over mental health facility, ED upgrades
A leaked email to staff in Wellington hospital has raised uncertainty over the future of major health projects, including the Mark Dunajtschik mental health facility.
The email, sent by Capital & Coast hospital director Jamie Duncan, told staff there was a halt on capital plans due to spending cuts, warning that previously planned projects were now under review.
Sent to Wellington staff on Monday afternoon, the email stated: “At this point in time no new projects, or spend, are to start until further approval is obtained.”
Projects with an approved business case would go ahead only if they had been through the procurement phase, while any other approved projects would need to be resourced from somewhere else, such as a regional process, Duncan said.
The Mark Dunajtschik Mental Health Facility in Lower Hutt remains in the planning phase, and has had a commitment of up to $50 million from philanthropist Sir Mark Dunajtschik, but is yet to be costed.
Dunajtschik donated $53m for the Wellington children’s hospital in 2017, but the project ended up costing $116m, with the balance from government.
In a formal response, Health NZ’s head of infrastructure and investment, Jeremy Holman, said the mental health facility was subject to final business case approval.
The centre, set to replace one that is no longer fit for purpose, was due to open in 2026. Construction is yet to begin on the facility but understands the old Kowhai House, which was on the site, has been demolished.
Dunajtschik referred questions to his business partner, Nick Wareham, who said the donation of up to $50m still stood.
The pair were waiting for Health NZ to complete the design process and costing, but any cost overruns will need to be met by Government.
“I mean, he’s set his [$50m] limit. He said he’ll make his donation on the basis of progress payments,” Wareham said.
“Then it’s for Government to receive its costing advice and make its decision as it sees fit.”
In the meantime, they were working under the impression the facility was still going ahead, Wareham said.
Other projects in question include the Wellington emergency department expansion, still in the design phase, and a multi-storey car park which was supposed to relieve parking pain at the Newtown hospital.
The expansion, which would add 35 extra bed spaces, was announced in June 2023 by former health minister Dr Ayesha Verrall, with $10m allocated for design and planning.
A multi-storey car park at the Wellington site was costed at $120m last year, after staff raised safety fears and patients talked of missing appointments after being unable to find parking.
This plan will set out investment in health infrastructure for the next 10 years, Holman said. “It takes a national approach to how we can best support the priorities for health services and where in the country services are needed.”
Holman said the email was not sent to all regions, but was part of the agency’s efforts to return to budget.
“It is important that we maintain the assets that we have across our health estate, looking after what we have and even making these assets work more effectively while understanding how health services can also be provided effectively and efficiently across the wider health network.”
Meanwhile the head of a doctor’s union said upgrades to clinical equipment and much-needed IT are also in jeopardy, warning that will add to burgeoning patient wait times – something Commissioner Lester Levy has promised to address.
Duncan’s email told staff any urgent approvals related to critical risks “e.g an anaesthetic machine that fails” should be raised with a manager “so they can be escalated for approval quickly”.
Dr Deborah Powell, national secretary for the NZ Resident Doctors’ Association, said machines took time to replace and would render the staff unable to perform surgery and reduce the ever-growing wait lists.
“If we don’t have the equipment we need to do the job, we can’t do the job.
“It is absolutely essential to us being more productive.”
Powell said just as essential hiring approvals had taken too long, she had little hope for efficiency when approving critical equipment.
Health Minister Dr Shane Reti said: “The recent revelations about the dire state of Health New Zealand’s finances mean that now more than ever, we need to ensure every public dollar available to health is spent wisely.
“The commissioner is leading on his turnaround plan, including for infrastructure, and I expect to receive further updates as that progresses.”
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