Retrofitting old hospital unworkable: documents

Retrofitting the asbestos-ridden Dunedin Hospital was dismissed by engineers as unworkable and more expensive than starting from scratch, documents show.

On Thursday, Health Minister Dr Shane Reti and Infrastructure Minister Chris Bishop announced the new Dunedin hospital project could be drastically scaled back or dumped altogether in favour of a "staged development" on the old hospital site.

However, documents obtained by the Otago Daily Times showed when the option for a "staged development" was last assessed, consultants for the Southern District Health Board dismissed the idea.

Reports by Beca Engineering and ProJ-X Solutions said the buildings had seismic issues, asbestos issues, concrete cancer and general use issues.

A report by Beca said the building had concrete cancer — which has previously caused chunks to fall off the side of the building — and "water ingress through the roof and walls".

"The ward block’s layout and configuration hinders efficient and modern models of care ... it is uneconomic to renovate and would likely cost more than a new build," the report said.

The ProJ-X report likened retrofitting the old building to "replacing the engine on your car while driving".

"Ultimately the re-lifing option proposed is actually more expensive in a simple capital context and will take four years longer to deliver than the new capital project."

The ProJ-X consultants found that at its core the ward building would be approaching 50 years old before it started its upgraded use — "a very large investment in what is an aged platform".

It also expressed concern about how work on the building would affect day-to-day "core hospital activities".

There were significant programme and economic drawbacks, it said.

The report also states that there would likely be damage sufficient to render the facility unusable after a one-in-500-year seismic event.

It said concrete corrosion could not be altogether stopped but "with the application of surface treatments, it could be slowed down".

This would require a re-coat "every 15-20 years", which could cost upwards of $42 million, it said.

Centre for Health Systems and Technology co-director Prof Robin Gauld said the project risked turning into a "mega-project fiasco".

He was not sure about the seriousness of the retrofitting option.

"I can’t see that being a viable option, really," Prof Gauld said.

"What the ministers were saying was ‘let’s look at all options’.

"But I didn’t get the sense that [the second option] actually is what they mean by let’s look at all options."

Former Labour minister Pete Hodgson, who previously oversaw the construction of the new Dunedin hospital, said yesterday refitting the old site would turn the ward block into a construction site for several years, where "by the end of it all you just have a brand-new 50-year-old building".

"The assessment that finished seven years ago was exhaustive.

"The disappointing but clear conclusion was that it would take four years longer, and be more expensive, to re-life rather than replace. In addition, the hospital would be a construction zone for the best part of a decade, as contractors worked their way from floor to floor, and from one end of each floor to the other."

In 2021, the then-Labour government prepared a business case for the new Dunedin hospital, and determined that the clinical services block (CSB) had "reached the end of its serviceable life" and the ward block had "significant maintenance issues and impedes the delivery of efficient and effective services".

"Neither building is economic to repair or refurbish.

"The structure and layout of the CSB and ward block are hindering modern and efficient service delivery ... Population ageing means a rapid growth in complex patients, bed-day requirements and other resourcing unless the system is reorganised."

A spokeswoman for Mr Bishop said yesterday officials were working to provide advice on the two options in the coming weeks.

"The work is being led by Health NZ Te Whatu Ora and includes working with local leaders. When further decisions have been taken, we will announce them."

Readers’ reactions

"These hospital cuts are a cruel, thoughtless castration of progress, one of many that the coalition government has already executed. I’m 22, just about to graduate, and I don’t know if I have a life here in New Zealand for the foreseeable future."

Kaea Roberts, Green Island 

"This is the coalition government breaking its election promise to the people of Dunedin and Southland to build our much-needed public hospital which is also a training hospital for medical students from Otago University."

Beverley Schofield, Palmerston

"I’d like to see  of the budget go to a new build hospital in Dunedin and  of the budget go to expanding Dunstan Hospital. It would save money with rescue helicopters and transporting patients in Central Otago/Southland and relieve the burden on Dunedin."

Christine Skinner, Alexandra  

"Seems that only the North Island counts for anything, except for little Auckland (Qtown) and Chch. Time to cut the cable and introduce South Island passports. Disgusting behaviour by this pack of nobodies."

Dale Brewster, Dunedin

"This is personal for me. I am an otherwise fit and healthy 72-year-old. All my life l have been active and have loved the outdoors. Now l have severe arthritis in both knees that has compromised my life in a major way. The downgrade of the new hospital in Dunedin will surely affect me, quite possibly shorten my life and it seems like no-one really cares a damn."

Kay Susanne Joyce, Dunedin 

"I am so disgusted I have had trouble sleeping. I feel partly guilty for this as I believed Luxon when he said if elected, he will reverse any proposed cuts to the Hospital. I will never vote National ever again."

Samuel Gilchrist, Dunedin