In response to the findings of the independent building condition assessment, NSW Health will establish a Taskforce to manage a targeted asset remediation program at Calvary Mater Newcastle Hospital to address priority building condition, maintenance and performance issues across the facility.
The building condition assessment, which commenced in March, identifies long-term structural issues which will help guide remediation program. It examined physical asset condition, maintenance practices and supporting asset management. This involved detailed site investigations, including an audit of heating, ventilation and air‑conditioning (HVAC) systems.
The assessment has informed the scope of priority rectification works required, including HVAC systems and other critical building services, with a focus on reducing moisture and mould risks, addressing priority maintenance issues, and renewing ageing infrastructure across the campus.
The Taskforce will be consulting further with the Public Private Partnership (PPP) parties as well as with Calvary Health Care, hospital staff and relevant unions. This engagement will help finalise the plans for delivering the works, with a focus on maintaining safe and effective services while minimising disruption to patients, staff and hospital operations.
The works will include:
- Rectification of identified water ingress and moisture management issues across priority clinical and support areas;
- Mould remediation and environmental improvements in affected areas;
- Targeted renewal of HVAC systems and associated building services where investigations identify they contribute to moisture-related issues;
- Remediation of priority safety, compliance and building fabric defects identified through the assessment;
- Delivery of deferred 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 asset remediation works will be initially funded through the NSW Government's $400 million Health Asset and Equipment Renewal program, announced as part of the 2026-27 State Budget.
While this funding will allow the remediation works to proceed, discussions with the PPP parties are progressing, to determine their contribution to the works.
Necessary rectification works will not be delayed while these matters are being considered.
Extensive work is already underway at this facility with essential building and infrastructure works progressing across the campus, including critical cladding remediation - some of which has already been completed.
The remaining works are being completed in stages and will replace non‑compliant external cladding with materials that meet current safety and performance standards. The project remains on schedule and is expected to be completed in mid-2027.
Further updates on the Health Asset and Equipment Renewal program, including investments in other health facilities and assets across NSW, will be provided as funding priorities are determined through the program's established assessment and prioritisation processes.
The maintenance issues at Mater are the responsibility of Novacare, not Calvary. The private provider Novacare repeatedly failed to rectify multiple maintenance issues, accruing hundreds of millions of dollars in liability. The Coalition has proposed to let Novacare off the hook from these liabilities.
Quotes attributable to Minister for Health, Ryan Park:
"The maintenance issues at Mater are the responsibility of Novacare, not Calvary. On the ground Calvary is just as frustrated with Novacare as everyone else.
"The Novacare PPP is complex and Novacare repeatedly failed to rectify multiple maintenance issues, racking up millions in abatements.
"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.
"We also undertook a building condition report to help identify more long-term structural issues which will help guide further rectification moving forward."
