Health Minister Andrew Little says a rebuilt Nelson Hospital won't include a change in location.
An Indicative Business Case for the project was submitted in May, costed at about $713 million.
However, on Friday Little said that rough costing of $713m included “all the bells and whistles, and absolutely everything” and had been sent back for revision.
“They've been told that that's a little bit beyond what was expected, so they’re having a look at that again,” Little said. “I think, what we're saying is: Let's look at actual need and bearing in mind too that our health system is a network so not every hospital has to have absolutely everything.