Open Mind on Funding Options for Hospitals

Health Minister Bill English said today he was keeping an open mind on alternative funding options for hospitals, but would need to be convinced any proposals were a good deal for the health service.

"The Government is investing over $2 billion in new public health services in an effort to catch up on years of neglect.

"Involving the private sector in financing some of this development will help spread the cost because I only have a limited amount of capital available for investment. There is a whole range of potential financing arrangements that could be considered and I am keeping an open mind about them.

"I want to see the highest quality facilities available for New Zealanders as soon as possible. The essential thing from the Government's perspective is that we keep control of what services are provided and who has access to them.

"Auckland Healthcare is looking at building a new hospital at a cost of a quarter of a billion dollars. This will be the biggest capital investment decision made by the Government since the Clyde Dam. The alternative to building a new hospital is upgrading the old facilities in Auckland but that will cost $170 million and does not look like a sensible long-term option.

"A similar choice is being faced in Wellington. It may be better to build a new hospital rather than patching up an old site that many agree is not designed for modern healthcare and is not in the right place.

"We will look at any options put forward by hospitals for funding. Hospitals are wanting to get on with new building programmes, but the Government will not be rushed into approving any of these options until it has satisfied itself that they are in the best interests of health care for New Zealanders," said Mr English.