The state government is exploring options to buy back the Calvary Mater Hospital but not at any cost, NSW Health Minister Ryan Park has told a budget estimates hearing.
Pressure on the government to end the public-private partnership (PPP) ramped up again this week with the revelation that mould had been discovered in the hospital's intensive care unit.
Opposition health spokeswoman Sarah Mitchell asked Mr Park on Thursday when the government was going to end the troubled PPP and return the hospital to public ownership.
Mr Park said the government was taking legal advice about what options were available to it.
"I've got a responsibility as a cabinet minister to be responsible around the use of taxpayers' money, so I can't just hand this over," he said.
"What I won't do is what the Opposition made out I should do, which is allegedly buy this back for $2.
"Now that is completely wrong. The liabilities on the state, if we did that, would be tens, if not hundreds of millions of dollars."
He said the government was working through the "complex contractual arrangements" of the PPP .
"I'm not in a position yet because I've not been advised yet of what those options are going forward," Mr Park said.
"Once I do get that and I make a pathway through the cabinet and ERC (Executive Review Committee) process, subject to what happens there, we will inform the community of a way forward."
The Newcastle Herald reported on Wednesday that elevated levels of mould had been detected in the intensive care unit as part of quarterly air quality testing.
The testing, completed in August, identified slightly elevated levels of aspergillus fumigatus in some areas of the ICU.
All other results were within the normal range.
Ms Mitchell called on Mr Park to act urgently.
"The minister needs to come out today with a clear timeline of what the government intends to do with the Mater Hospital. Will they be returning it fully to public hands?," she said.
The Health Services Union backed the call.
"The private partners are very happy to make their profit margins, but the need to maintain an appropriate level of acceptability here is not showing up," Health Services Union NSW secretary Gerard Hayes said
"I would encourage the government to get involved as a matter of absolute priority to either sort them out or make sure it is as safe as possible."
In a statement, the Hunter New England Local Health District (HNELHD) said the ICU would remain operational while remediation was under way.
Affected staff, patients and families are being contacted directly and provided with information and advice.
"In response to the findings of the independent building assessment, the newly established NSW Health Taskforce is progressing its work to rollout a targeted remediation program at Calvary Mater Newcastle," HNELHD said.
"This will address priority building condition, maintenance and performance issues across the facility."
