THE FINISHING line is in sight for Wanganui Hospital's multi-million-dollar rebuilding programme, but getting the job done will see the project go over budget.
At this stage, the Whanganui District Health Board is pinning its hopes on the Ministry of Health stumping up with the $2.3 million to bridge the gap.
If the ministry says no, the board will have to look at digging into its capital works budget or deferring some planned work.
A $1.6 million overspend has occurred with the new acute services block and the new car park that will be provided when the old maternity wing is demolished.
The board has already applied for the funding to cover that shortfall, arguing that increased building costs and the car park costs were outside the scope of its original application.
There is other contract work that hasn't got funding either, including a clinical services block worth $1.33 million with doctors' offices and administration areas.
Staff is currently in the surgical block that is tagged for demolition. And there's also another $440,000 to cover the demolition of the existing surgical block, which is regarded as an earthquake risk.
The board has funding of $33.8 million to cover the rebuilding projects but these extra contracts will push that out to $36.14 million.
In a report to the board meeting last week, Brian Walden, general manager, strategic developments, said they won't know until late July if the ministry has approved the $1.6 million to cover the overspend on the acute services block contract. Mr Walden said there is an option to defer the work but that would incur higher costs at a later date.
However, if the extra money is not available, then the $2.3 million difference would have to be found entirely from the board's $5 million 2008-09 capital budget.
This would require very strict management of the budget and would result in deferral of some significant projects, including $1.2 million for a picture archive system and $1.5 million for a patient management system," he said.
Board member Philippa Baker-Hogan said she was worried if these were issues that were going to "come back and hit the board in the pocket financially.
Any extra funding needed may mean some areas of the hospital's operations will be impacted on, Ms Baker-Hogan said.
PJ Faumui said he was concerned that these problems had not been put before the board earlier.
I'm really disappointed if these problems aren't articulated to this board," he said.
Memo Musa, board CEO, gave the board an assurance all the issues were being addressed.
We have a design committee that meets every month throughout the building programme and any issues are addressed there, Mr Musa said.
If the board needs to know about anything, then it will certainly be told, he said.
Board chair Kate Joblin said it was very important that the board is able to respond to things that need to be fixed and told senior managers that more commentary of the project was expected. Ms Joblin said there was probably an opportunity for the board to go back to the Ministry of Health to get the funding shortfall covered.
But Michael Laws reckoned the chances of extra funding were "just about zip".
"You can write [to the ministry] all you like, but you can't expect a favourable outcome," Mr Laws said.
However, Mr Musa said he believed the board could argue strongly for the extra money.
He assured the board that staff had been keeping a detailed list of any defects they have picked up in the contracts.
Mr Walden said there is a problem with the air conditioning units that service the operating theatres and that problem was still not resolved.
"They create a little too much noise in the theatres. The contractors thought they had found the problem and some ducting was replaced but that isn't the cause,"" he said.
"Their focus is now on the filters in the air conditioning and they are talking with the suppliers.""
Hospital rebuild to go $2.3 million over budget
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