ACC to own new Westport hospital

"While ACC is a Crown entity, in this deal it will be operating like a private firm seeking to profit." Association of Salaried Medical Specialists Association executive director Ian Powell

The West Coast District Health Board (WCDHB) will enter a ‘‘longterm’’ lease deal with ACC for a new $12 million hospital on the West Coast.

The West Coast Hospital Redevelopment Partnership Group announced ACC will be the owners of the proposed Buller Integrated Family Health Centre in Westport.

Construction of the new centre is expected to be completed in the first half of 2019. The Ministry of Health will fund the project, which will be repaid upon completion. The hospital’s ownership will then be transferred to the WCDHB and on-sold to ACC.

The sale involves the DHB selling the land it owns at the selected Pakington St site.

The DHB will be required to consult the local community and get ministerial approval.

Partnership group chairwoman Cathy Cooney said the WCDHB endorsed the funding arrangement at a board meeting.

‘‘This is a key milestone in getting this new centre constructed by the first half of 2019. The focus now is on completing detailed design and tendering for the construction works,’’ she said.

Association of Salaried Medical Specialists Association executive director Ian Powell called for public disclosure of the deal and independent scrutiny of the risks as he feared the lease arrangement would take ‘‘money away from patient care and hand it to third-party investors’’.

‘‘While ACC is a Crown entity, in this deal it will be operating like a private firm seeking to profit from the financial arrangement.

‘‘The costs of building hospitals and other essential health infrastructure has always been regarded as a core part of government spending. Taxpayers expect their taxes to be used to provide the healthcare services they need.’’

Powell said he was concerned the proposal would strip ‘‘millions of dollars’’ from healthcare on the West Coast.

‘‘A crucial factor is the rate of return, which we understand will be between $750,000 and $1 million going to ACC each year over and above what would be paid back to the Crown under its normal formula for capital works funding,’’ he said. ‘‘At the same time, the West Coast DHB will be totally responsible for maintaining the new facility.’’

Powell said he understood the partnership group was initially seeking private equity to bankroll the hospital, but was unable to find a private investor.

The Ministry of Health and WCDHB has been approached for further comment.