A leak has caused a partial ceiling collapse in Dunedin Hospital where sterilisation equipment is stored.
Health New Zealand said it was caused by an issue with fitting in a water pipeline in the above floor. This pipeline carries water to the steriliser units.
Diversions were put in place within the hospital, and the leak repair was completed on Tuesday morning.
It comes after the government announced in September there would have to be changes to the planned redevelopment of Dunedin Hospital because it couldn't be delivered within the current budget of just under $1.9 billion and the cost could possibly blow out to $3b.
Health NZ Te Waipounamu Regional Head of Infrastructure Dr Rob Ojala said Te Whatu Ora worked with its clinical and operational teams to ensure the disruption was minimised.
"We understand this situation may be upsetting for some patients and staff and we apologise for any disruption caused.
"We acknowledge Dunedin Hospital is an ageing facility and with that comes challenges with infrastructure.
"Health New Zealand has been instructed by ministers to develop options that will deliver modern, fit-for-purpose health facilities to enhance clinical safety and enable new models of care, and that can be achieved within the budget outlined.
"We are working urgently to present initial options analysis and advice for ministers to consider as soon as possible." Dr Ojala said.
Health Minister Dr Shane Reti said funding was allocated to the sterilisation area months ago, as he was aware of the repairs that were needed.
"In that area, we actually applied funds several months ago to the sterilisation area, because we are aware that it had deficits, so we already tackled that months ago and that's in progress, and approved by the Commissioner," Reti said.
He said he remained committed to building Dunedin Hospital within the $1.9b budget.
Sterilisation equipment storage issues for years
NZ Nurses Organisation president Anne Daniels said the leak was further evidence a new hospital building was needed.
Daniels said there had been issues in that area for a long time.
"It is not up to standard and it is unable to its job and that's evidenced by the fact that there are about 500 incidents a year being reported by the theatre staff about contamination of equipment.
"Now this is actually quite important, the equipment is used to actually do surgery," Daniels said.
She wanted the government to "build it once, build it right, and build it now".
"The constant delays have been absolutely, totally frustrating for all those who have been involved and they are totally unnecessary," Daniels said.
"It absolutely demonstrates why we need to actually have a new hospital and we need it now. We cannot continue to go down rabbit holes of options that have already been thrown in the rubbish bin.
"This government needs to take responsibility and it also needs to actually back the promises they made going into the election."
Daniels attended a meeting at Dunedin Town Hall earlier this month and said the message was clear.
"That we had to actually have our hospital now because patients are suffering by long waits for going into surgery, for instance, because the facility is not fit for purpose, the surgeons don't get enough for surgery time because they actually cannot work within the facilities that are we have now currently," Daniels said.
More money goes towards hospital campaign
The majority of Dunedin City Councillors do not appear to be backing down from keeping the 'Save Our Southern Hospital' campaign alive.
Twelve voted in favour on Tuesday of approving an overspend of up to $20,000 to go towards the drive - one was against.
Councillor David Benson-Pope voted in favour.
"This campaign will serve its purpose when the hospital that we are entitled to, which we have been promised, is built.
"That's on the Cadbury site, providing the high level of specialist healthcare, and appropriate facilities for staff and patients, that we as New Zealanders are entitled to.
Councillor Lee Vandervis voted against approving the overspend. He supported funding in the past, but questioned what difference more money would make.
"I don't believe it's going to give us any real value. The overspend is gone too far already in my view, you can make a point and it can be heard, but if you just keep making the same point then it becomes something that is just simple repetition.
"The prime minster has said that the $1.9b is the limit, that seems to be fairly clear, to me it would make much more sense to stop spending money on this campaign and instead have negations to se whether we can get all the facilities we canted for that 1.9b budget." he said
It brings the the total approved overspend to $346,099 for the Save Our Southern Hospital campaign.