Artist's impression of the new Acute Service Building to be built at Christchurch Hospital.

More than 15 per cent of beds in Canterbury's new multi-million dollar acute services building will not be installed because of budget constraints.

The Government decision has overruled the business case proposed by the Canterbury District Health Board (CDHB) board before the earthquakes, escalating tensions already at breaking point.

The 62,000 square metre Acute Services Building was expected to have 400 beds, operating theatres, paediatric facilities, radiology, intensive care and emergency departments, and is part of a wider $650 million package of work redeveloping the Christchurch and Burwood hospitals. It has been touted as the largest investment in the history of New Zealand's public health service.

However, the CDHB board were told at a meeting on February 18 that 64 beds, that made up two wards, had to be cut from the design in a decision made by the Hospitals Redevelopment Partnership Group (HRPG), the Treasury and the Ministry of Health.

It was a "significant decrease" from what the board and clinicians wanted, a source, who did not want to be named, said.

CDHB board chair and HRPG member Murray Cleverley said the group had "unanimously agreed" on the decision.



"When it became apparent that the construction contract could not be signed due to a gap between the funding available and the costs of the development, it was decided to defer fitting out the two 32-bed wards so construction of the building was not delayed.



"We are continuing to look at cost savings across the project to help fund this fit-out before the facility opens in 2018."

Tensions between the HRPG and CDHB were already high, as exposed by an auditor-general's report in December.

Auditor-General Lyn Provost criticised the acute services building development as having a poorly-conceived leadership structure, and that the HRPG was established with little planning.

This escalated "already high" tensions, and created "an environment that is neither productive nor pleasant".

Board members contacted would not comment on the board meeting, as they were told in the public-excluded section, but The Press understands the decision was met with anger.

However, board member Jo Kane worried Canterbury was "missing out on opportunities".

"We've got all the accountability and responsibility but we're not making any of the decisions. It beggars belief when you're trying to work in partnership with the HRPG, the clinicians and the ministry."

Board member Andrew Dickerson said the fight was "not over yet".

"Canterbury already has the lowest rate of hospital admission in New Zealand, so it is difficult to see how the hospital could function with any significant reduction in hospital bed numbers," Dickerson said.

"This is not over yet. I can assure the people of Canterbury that I still have a lot of fight left in me to get a hospital that we can all be proud of - and that meets our community's future health needs."

The building was still on track to be completed in 2018.

The new contractor for the main build, CPB, was appointed just before Christmas by the Ministry of Health, and took over from Fletcher Construction who completed the foundations in November.

Contractors were now undertaking extensive photographic recording of the site, and installing site sheds.

The first steel for the building's framework is currently being shipped to New Zealand, but will be delivered to a special "lay-down yard" before being brought to the hospital site.

Engineering preparations are also underway for the two tower cranes that will be constructed on-site.

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