Health NZ admits gap in communications over non-existent sick baby unit in Lower Hutt

In November 2022, Health NZ announced it had leased space in Lower Hutt for a transitional care unit but it was never delivered. Photo / File

• Health NZ Te Whatu Ora has admitted a communication gap over a sick baby unit that has never been built.
• The unit’s business case required nearly $6 million but was not prioritised due to fiscal constraints.
• Negotiations are ongoing to assign the lease to another health provider.

Health NZ Te Whatu Ora has admitted a “gap in communications with the local community” after a sick baby unit in Lower Hutt was quietly shelved.

In November 2022, Health NZ announced it had leased space at the former Te Awakairangi Birthing Centre in Lower Hutt for the transitional care unit.

The purpose-built primary birthing facility had previously been funded through the Wright Family Foundation and closed the year before despite community efforts to save it.

However, the Herald revealed earlier this year that the unit was quietly shelved. Local MPs were dismayed and the Health Minister requested a briefing about why it had not been delivered.

A copy of the briefing has now been released to the Herald under the Official Information Act.

The former Te Awakairangi Birthing Centre. Photo / Mark Mitchell

Capital Coast Hutt Valley operations group director Jamie Duncan said the Foundation’s 15-year lease for the facility was assigned to Health NZ after lengthy negotiations,” Duncan said.

“There were 11 years remaining on the lease. At the time of the assignment, there were no approvals gained within Health NZ for a transitional care and primary maternity birthing unit, as a business case had not been developed.”

At this time, Hutt Hospital’s Heretaunga Block had been deemed earthquake-prone and it was possible that services and patients would have to be moved out.

“It was considered that the space could be useful, should the decision be made to decant services,” Duncan said.

As it turned out, Heretaunga Block was not actually earthquake-prone and patients could not be moved out of the building without their care being compromised.

Duncan said work to develop a business case for maternity services at the former Te Awakairangi Birthing Centre continued with Health NZ now responsible for the lease payments.

This business case was finalised in April 2023. Nearly $6 million of operational and capital funding was required for the unit as well as the ongoing cost of the lease.

“Further discussions at a regional and national level between April and August 2023 regarding the approval of the business case eventually resulted in a decision not to progress as other investment cases were deemed high priority, particularly in the tight fiscal environment,” Duncan said.

Health Minister Simeon Brown requested a briefing about why the sick baby unit was not delivered after the Herald revealed it had been quietly shelved. Photo / Mark Mitchell

Duncan noted birthing demand was being met by existing services at Hutt Hospital, Wellington Women’s Hospital, Keneperu Maternity Unit and Paraparaumu Maternity Unit.

However, there is no primary maternity facility in the Hutt Valley.

Duncan acknowledged mother and newborn attachment is vital and said the district continued to work with midwives to ensure women receive the highest standard of community care.

“We also recognise there has been a gap in communications with the local community and will look to provide information and some certainty about next steps over the coming month.”

Work was under way to find a tenant that the former Te Awakairangi Birthing Centre lease could be assigned to, to reduce further lease payments for Health NZ, Duncan said.

Health NZ has declined to release the rent costs because doing so would “be likely unreasonably to prejudice the commercial position of the person who supplied or who is subject of the information”.

The Herald has complained to the Ombudsman.

Head of land and property Monique Fouwler said Health NZ is now in active negotiations with another health provider to take on the lease.

“Due to commercial sensitivity, we are unable to share further details but are committed to communicating the decision on the new health service provider once available,” Fouwler said.

Health Minister Simeon Brown said his priority was to ensure all New Zealanders have access to timely, quality healthcare.

“That includes mothers and their babies in the Hutt Valley. These services are being delivered through Hutt Hospital.”

Georgina Campbell is a Wellington-based reporter who has a particular interest in local government, transport, and seismic issues. She joined the Herald in 2019 after working as a broadcast journalist.