[8] On 16 August 2008 the hospital was put in lockdown for one week due to a norovirus outbreak affecting 73 patients and nearly 100 staff, blocking most visitors for the duration, and postponing 2,300 procedures.

The Clinical Services Block has also had significant maintenance issues, such as asbestos and leaks in the roof which allowed rain water to seep into the main operating theatres during a storm.

[14] As a result of these and other issues, a significant rebuild project is underway for the reconstruction of the entire hospital, headed by Pete Hodgson, at an estimated cost of $1.2 to 1.6 billion.

[24] In opposition to the proposed cuts, Benson-Pope filed a notice of motion urging the DCC to contribute NZ$130,400 for a public campaign to support the hospital rebuild project as it was outlined in the final business case.

[26] On 1 February, incoming Health Minister Ayesha Verrall confirmed that she would meet with Dunedin City councillors to discuss their concerns about the hospital rebuild changes.

[27] In early March 2023, the Otago Daily Times reported that staff vacancies and a large number of patients had forced the hospital to postpone some "planned care."

In early July 2023, Luxon announced that National would invest NZ$30 million in restoring cut beds, theatres, and a PET scanner at the new Dunedin Hospital.

[35] On 12 September 2023, the Labour Government announced that it would reverse two proposed cuts, namely a separate pathology laboratory and 24 beds for elderly mental health patients.

[36] In mid January 2024, Health Minister Shane Reti announced that the National-led coalition government was committed to the new Dunedin hospital but did not confirm whether it would honour its NZ$30 million election pledge.

[38] In June 2024, Reti reiterated that the National-led government was open to keeping its campaign promise of restoring previously cut beds, operating theatres and equipment for the new Dunedin Hospital.

[40] On 3 September, the Otago Daily Times reported that the Government was considering cutting emergency beds and downgrading operating theatres as part of efforts to slash spending on the new Dunedin hospital.

[42] On 17 September 2024, Radich and New Zealand Nurses' Organisation delegate Linda Smillie met with Health Minister Reti to present a 23,000 strong petition opposing the previously proposed cuts to the New Dunedin Hospital.

Bishop expressed concerns that the Hospital rebuild could balloon to NZ$3 billion due to the inclusion of other things that had not been budgeted for including a pathology laboratory, refurbishment of the existing site and car parking.

Bishop expressed concern that a full rebuild based on the original plans could divert resources from other regional hospitals needing refurbishing.

The second option involves a staged redevelopment of the current hospital site, including a new clinical services building and refurbishing the existing ward tower.

[46] The Government's proposals to downgrade the construction of Dunedin Hospital were denounced as "completely unacceptable" by Mayor Radich, who confirmed a protest march against the cutbacks would be held on 28 September.

[52] On 5 November a 34,000 signature petition was delivered to MP Rachel Brooking at Parliament by the Dunedin, Waitaki and Invercargill mayors, using Cliff the Ambulance, a repurposed St John vehicle.

[53][54] On 31 January 2025, Health Minister Simeon Brown announced that a new inpatient building would be built on the site of the former Cadbury factory at a cost of NZ$1.9 billion.

Other facilities included 20 short-stay surgical beds, 24 theatres, 58 emergency department spaces and 20 imaging units for CT, MRI and X-ray procedures.