A Hawke's Bay man who was leading the Dunedin Hospital rebuild has had his position terminated in favour of local expertise.
Hawke's Bay consultant Andrew Blair will be replaced by former Labour cabinet minister Pete Hodgson as Southern Partnership Group chairman.
Earlier reports said Health Minister David Clark announced the termination this week due to wanting the rebuild to have greater local leadership.
Mr Blair said this stance had been discussed by Dr Clark while he was in opposition and now he is Health Minister he has followed through.
"I completely understand and accept his preference.
"The Minister has been very generous in acknowledging the contribution I've made."
The experience had been beneficial and the project was now in a position where it could really take off, he said.
"I'm really proud of where the partnership group has got this project to."
When Mr Blair was first appointed the initial plan was to rebuild the services block at a cost of $300m, however, after extensive analysis by his team it was found that the current site was not fit for purpose and a new location was needed.
"Had we not taken the time...there would be a $300m building which would end up being a white elephant.
"We've also driven a lot of change in how clinical services are going to be delivered."
His contract had been until September 2018 but this week's termination was effective immediately.
However, Mr Blair said he was happy to help pass over the project and any expertise to Mr Hodgson.
"I will continue to take an interest in it."
The announcement would now mean Mr Blair would be able to look for more consulting opportunities closer to Hawke's Bay so he could enjoy the region more and travel less, he said.
Mr Blair said he would continue as chairman of Capital and Coast District Health Board and Hutt Valley District Health Board.
Mr Blair was appointed to the Hawke's Bay DHB for three years from 2013, sitting on its Risk & Audit Committee, and during that time was chairman of Cancer Control New Zealand.
Before that, he was chief executive of Acurity Health Group (formerly Wakefield Health), bringing Wakefield and Bowen hospitals in Wellington together as one unit and Royston Hospital in Hastings.
He was general manager of Royston Hospital in Hastings from 1995 to 2007.
As part of Dr Clark's changes to Southern Partnership Group, he will also be appointing University of Otago chief operating officer Stephen Willis to the group now led by Mr Hodgson.
Mr Willis has replaced Auckland consultant Tony Lanigan.
The other members of the group are Richard Thomson, of Dunedin, and Drs Margaret Wilsher and Andrew Connolly, both of Auckland.
Mr Hodgson, Dr Clark's predecessor in Dunedin North, served as MP from 1990 to 2011, and held numerous ministerial portfolios in the fifth Labour government.
"As a former minister of health, he understands the complexity of the issues involved," Dr Clark said.
"He is indisputably a local champion, and . . . is well connected into health.
"I'm delighted that he's agreed to lead the partnership group for the next three years."
Mr Hodgson would be charged with implementing Labour's vision for the rebuild, including a promise to start construction before the 2020 election.
Dr Clark said he was frustrated by the years of delay and stalling with the project but did not blame Mr Blair for the delays as it reflected the previous government's lack of focus on Dunedin Hospital.
"I thank Andrew for his service and expect him to continue to provide informal guidance where his expertise is required for the project."
Mr Willis would not vote on any rebuild decision directly pertaining to the university, Dr Clark said.