10 Aug 2023

Shared approach to health projects will not mean public-private partnerships - Te Whatu Ora

2:54 pm on 10 August 2023
Counties Manukau Health says it has enacted special escalation plans, including cancelling elective surgery, to deal with a surge in patients visiting Middlemore Hospital's emergency department.

Photo: 123RF

Te Whatu Ora says it is moving to build hospitals in a more collaborative way with project partners - but stopping short of public-private partnerships or PPPs.

Documents about the overhaul of the hospital building system state that partnering with the private sector should be considered.

"The private sector partnerships ... are not Public Private Partnerships, as defined by Treasury," the agency said today.

"It is looking at whether a capital solution is required or procuring a third party to provide the service," chief infrastructure and investment officer Jeremy Holman said in a statement.

This aligns with what Health Minister Dr Ayesha Verrall told RNZ earlier, though if there was a change of government in October that could alter the aversion to PPPs in health.

"Additionally, Te Whatu Ora is moving to a more collaborative delivery model for the construction of our significant and more complex infrastructure projects," Holman said.

"We want to move away from the traditional fixed-price-lump-sum approach to a more collaborative, innovative, fair and transparent delivery arrangement between the project partner and Te Whatu Ora as the client."

It is taking over control of a construction system fractured between the former district health boards and once-powerful Health Ministry, and made worse by repeated poor planning.

That power has now shifted to the Infrastructure and Investment Group, though the group's final shape would not be known till late next month, Holman said.

Additionally, the agency was dumping the old project-by-project approach that had "led to duplication and higher costs", for a nationally coordinated one.

"The key driver ... is to bring together all infrastructure teams from across the motu into a national team ... ensuring regional and local perspectives are fully understood and considered."

Ways to monitor and report on projects had been streamlined already and bolstered with better risk assessments.

The specialist team was also identifying local suppliers to work with.

The hospital building changes would "produce some of the efficiencies and benefits intended from the creation of Te Whatu Ora".

"This will enable more efficient delivery of health infrastructure projects and will make Te Whatu Ora a more attractive client," Holman said.

Get the RNZ app

for ad-free news and current affairs