The Calvary Mater's deadly mould problem is set to be fixed under a Minns government plan to tackle the hospital's disastrous infrastructure and maintenance problems, after a quarter of inspected assets were found to have defects.
NSW Health Minister Ryan Park will announce today a taskforce to manage a "targeted asset remediation program" at the Mater.
The announcement coincides with the release of a scathing NSW Health-funded audit of the Mater, known as the Jacobs report.
The report said 26 per cent of the 1172 assets examined had defects and required intervention.
Of these 305 defects, almost half were a high priority and a quarter a medium priority.
This building condition assessment, which began in March, pinpointed "long-term structural issues which will help guide the remediation program".
This investigation included an audit of the hospital's dysfunctional heating, ventilation and air conditioning (HVAC) systems, a key cause of the Mater's mould contamination.
The report found the hospital had flawed HVAC systems, a lack of maintenance records, safety and compliance issues and numerous defects across mechanical, electrical and fire systems.
"These include matters such as moisture ingress, corrosion, or incomplete maintenance works. Defects provide direct, observable evidence of how assets are being maintained and operated," the report said.
"Internal [building] fabric condition is characterised by widespread mould, water ingress and general deterioration consistent with recurring moisture-related conditions.
"Prolonged exposure to mould presents a material risk to the health and safety of patients and hospital staff."
The report confirmed the HVAC system "does not actively control humidity, despite historical design expectations and current healthcare guidelines requiring defined limits on indoor moisture levels".
"Instead, the system operates using a temperature-only control strategy, which does not directly manage a condition commonly associated with microbial growth," it said.
The government said the HVAC systems and other critical building services will be among the "priority rectification works".
The focus will be on "reducing moisture and mould risks, addressing priority maintenance issues and renewing ageing infrastructure".
The asset remediation works will be funded through the NSW government's $400 million "health asset and equipment renewal program, announced as part of the 2026-27 state budget".
The funding follows a Newcastle Herald series, including more than 90 stories over a year on the Mater mould and maintenance scandal.
The Herald's reporting led to a parliamentary inquiry, which recommended that the hospital's disastrous public-private partnership (PPP) be terminated.
The failed PPP is between Novacare and NSW Health's Health Administration Corporation (HAC) and closely involves Hunter New England Health.
The NSW Health taskforce will consult with the PPP parties, along with Calvary Health Care, hospital staff and unions.
This will help complete plans for the work needed, with "a focus on maintaining safe and effective services while minimising disruption to patients, staff and hospital operations".
Calvary Health Care runs the Mater hospital's clinical services, but was not part of the PPP. It had been raising concerns about maintenance issues at the Mater since 2014.
Mr Park highlighted that the private arm of the PPP had failed. He has met with Treasury officials to discuss the PPP's future.
"The maintenance issues at the Mater are the responsibility of Novacare, not Calvary. On the ground, Calvary is just as frustrated with Novacare as everyone else," Mr Park said.
"The Novacare PPP is complex and Novacare repeatedly failed to rectify multiple maintenance issues, racking up millions in abatements [fines worth about $300 million].
"Earlier this year, we formed the view that we could no longer wait for Novacare to act, and we stepped in to rectify the cladding and undertake cleaning - some of which has already been completed."
The building's defective and leaky cladding, also part of the mould problem, is being fixed at a cost of $12.5 million, with the government paying $3.5 million and Lendlease the remainder.
Mr Park said the government commissioned the Jacobs report "to help identify more long-term structural issues", which will help guide further work.
The work includes rectification of water ingress and moisture management "across priority clinical and support areas, along with mould remediation".
Additionally, the works will include "targeted renewal of HVAC systems and associated building services where investigations identify they contribute to moisture-related issues".
Other works include "remediation of priority safety, compliance and building fabric defects", and "maintenance and lifecycle renewal works to improve the long-term condition and resilience of the facility".
"Planning is now under way for these works, which will be delivered in stages to minimise disruption to patients and staff, while supporting the continued operation of the hospital," the statement said.
The government said the $400 million in funding "will allow the remediation works to proceed", but discussions with the PPP parties were progressing to "determine their contribution to the works".
"Necessary rectification works will not be delayed while these matters are being considered," the statement said.
Novacare said in May it was headed for voluntary administration.
