Waitaki Mayor Gary Kircher says the decision to approve the sale of Ōamaru Hospital to Health New Zealand is a “bittersweet change for our community”. 

As of July 1, Ōamaru Hospital will be owned by Health New Zealand Te Whatu Ora (HNZ), after Waitaki District Councillors approved a conditional agreement between HNZ and Waitaki District Health Services (WDHS) at its meeting today (Tuesday, May 28).

As sole shareholder in WDHS, the council was required to approve any deal struck between the parties.

Gary said the hospital has been part of council life since the late 1990s and has “seen its share of highs and lows”.

“However, we have had to accept that now is the right time for it to go back into HNZ’s control, and I am pleased with the conditions negotiated by our hospital company and our [Waitaki District Council] CEO Alex Parmley.

“I wish to thank all of those involved in these negotiations, and a special thanks to our hard-working hospital staff, and board members over the last 25 years, for delivering the health services that the Waitaki community needs,” he said.

The financial components of the agreement are: 

• An asset sale price of $1 million, plus stock purchase of $250,000. 
• An annual lease charge of $1 million per annum, plus outgoings. Health NZ assumes responsibility for various ongoing service arrangements.
• Assumption of all accrued staff-related costs, with an approximate value of $2 million. 

The council retains ownership of the land, which it will continue to lease to WDHS, which will, in turn, continue as owner of the hospital buildings.

An almost $2 million loan from the council to WDHS, which was repayable over ten years, is now repayable over five.

Council chief executive Alex Parmley opened his address at the meeting with an apology to the community that a consultation was not able to take place on the matter.

“Every community feels a sense of strong ownership of its local hospital, but in Waitaki, given the history of the hospital and the community's role in saving the hospital 25 years ago, there's an even stronger bond and sense of ownership,” he said.

Negotiations finalising the details of the agreement had run late into the night on Sunday, and needed to be finalised and approved before tomorrow, so the required processes, such as employment agreements, could take place before handover date on July 1. The hospital’s existing funding contract expires on that date, and has not been renewed.

Health NZ chief executive Margie Apa said she believed the agreement will provide the people of the Waitaki district with "confidence of continued access to healthcare at Ōamaru Hospital and ensure continuity of employment for staff".

“I want to acknowledge the work that WDHS and the Waitaki District Council has done, over many decades, to ensure that the Ōamaru Hospital has delivered services locally, supporting both the health of the community, and providing employment for people in the Waitaki District. 

Health NZ and the council both confirmed their commitment to working with the community and other stakeholders through the Te Waka Hauora o Waitaki Health Futures Project.

The project aims to take a “total well-being” approach, to achieve better health service access and outcomes for all members of the Waitaki community.