Whangārei Hospital's redevelopment has been labelled as a project with "significant risk" by Health NZ due to a major funding shortfall.

In 2022, the Labour-led Government approved $759m for a new hospital block to include 10 surgical theatres, an expanded emergency department, intensive care unit, coronary care unit, radiology and support services, as well as a new child health centre, whānau house and the design of a ward tower. This would have been Stage 1 of 2 of the redevelopment.

Documents released to 1News under the Official Information Act have revealed the project was given a red rating in March and labelled as a project with "significant risk" – one of a dozen health projects marked as such, including Dunedin Hospital.

A red rating indicates ministers should be aware of "one or more significant risks" and issues that require Committee, Board or Ministerial decisions.

Funding was found to be insufficient for the full delivery of the redevelopment, the document read.

"The energy centre to run the acute services building was not provided for in the initial funding. The acute assessment unit, which should be adjacent to the ED, is housed in the ward tower which is not funded. Car parking to replace lost car parks is not included."

Health NZ head of infrastructure delivery Blake Lepper said additional time was being taken with the design to ensure the most suitable facilities could be built in a timely manner.

"This is part of Health NZ’s more streamlined, financially-responsible approach to health infrastructure, with staged, standardised builds, ensuring faster delivery."

Emergency doctor Garry Payinda said the existing hospital was built in the 1950s and was no longer fit for purpose and that "we outgrew it decades ago".

"We have a radiology department that when it rains outside, it rains inside. We've got buckets near million dollar CT scanners, we have buckets and sponges, absorbent pads, near multi-million dollar MRIs.

"That's so substandard, and it's not right, and that's just the infrastructure."

Health Minister Shane Reti said he was concerned that "badly needed" upgrades to Whangārei, Nelson, Hawke’s Bay, Palmerston North and Tauranga hospitals might be put at risk if "New Dunedin" continued to go so far over budget.

"Whangārei Hospital is just one of a number of complex pieces of health infrastructure the Government is currently working through."

Reti said planning for the wider Whangārei Hospital redevelopment was ongoing and that the next stages would focus on clinical priorities that could be achieved within budget.

Reti, who is also the MP for Whangārei, said National was committed to the rebuild of the city's hospital on social media last year.

"It's what I've campaigned on, and it's what National will deliver," the post to X read.

Labour's associate health spokesperson Tracey McLellan said Reti campaigned on the rebuild when he was trying to get elected.

"Now that it's his job to get it funded — fund the second tranche of it — all of a sudden, he's not so committed anymore. I think that's deplorable."