Wellington Hospital.
Photo: RNZ / Dom Thomas
Government ministers are considering changes in how to manage spending on hugely costly hospital building projects.
They asked months ago for advice now that Budgets are making spending allocations that span a longer period of time. Budget 2023 marked year two of a “multi-year funding approach”, setting aside $1.3 billion for future cost pressures.
“This allows for better planning and more consistent health services,” the Ministry of Health said.
The government also asked for advice on what to do about the controversial capital charge, a $200m-plus invented levy that hospitals must pay the Crown based on what net assets they have.
“Ministers have recently received the advice from officials and are currently considering it. Therefore it’s not yet publicly available,” the health minister’s office told RNZ on Friday.
Te Whatu Ora minutes earlier this year showed consultants EY had been asked for input on this.
Officials were asked to also look at “a framework for alternate funding arrangement”. When RNZ asked if this might include public-private partnerships (PPPs), the government said no.
Other documents show the likes of a carparking project at Wellington Hospital estimated to cost perhaps $120m was a candidate for alternate financing.
The year-long health reforms have yet to provide clear answers on how to make healthcare more affordable and comprehensive.
