Ballooning costs mean a multimillion-dollar centre that would have had different health learning under the one roof has been cut from Dunedin's new health precinct.
Te Whatu Ora, the University of Otago and Te Pūkenga made the decision after the project costs increased from $50 million in 2020 to more than $130m based on current projections.
Te Whatu Ora chief executive Fepulea'i Margie Apa said they had to reconsider the feasibility of a new, separate building to house training due to escalating costs.
"I want to reassure the community that this decision will not impact or compromise the training for students and our staff.
"Our trainee doctors, nurses and other health practitioners will still continue to have the advantage of clinical placements on-site at the new Dunedin Hospital.
"Te Whatu Ora will continue to explore how we can partner and collaborate with the education providers to advance the teaching and learning opportunities in Dunedin and across the motu, especially around interprofessional education."
Instead of a specific building for learning, the group said they would work together to grow training.
Te Pūkenga chief executive Peter Winder said they remained committed to interdisciplinary learning and training.
"We are committed to finding a different solution that delivers the benefits of interprofessional learning, but is affordable."
Currently they needed to focus on building the education of the workforce rather than an actual facility, he said.
University of Otago acting vice-chancellor Professor Helen Nicholson said it was disappointing the centre could not go ahead at this time.
"Although we cannot progress the Interprofessional Learning Centre currently, we remain committed to interprofessional education and will continue to provide opportunities for students in our health-related programmes to undertake interprofessional training in communities throughout the motu."
The group did not rule out giving the proposal a green light in the future.