Treasurer not ready to 'put up white flag' on troubled hospital's $3.2b budget

Read the original at ABC News (AU) ↗
Cite

Kelsall, T. (2026, October 28). Treasurer not ready to 'put up white flag' on troubled hospital's $3.2b budget. ABC News (AU). https://www.abc.net.au/news/2026-10-28/cost-blowout-call-imminent-on-womens-and-childrens-hospital/107318930

Dated from the outlet's own feed. Check the original for its byline.

ABC News (AU) · collected 2026-10-28 · by Thomas Kelsall

Quick Summary

South Australian Treasurer Tom Koutsantonis is resisting calls to increase the $3.2 billion budget for the new Women's and Children's Hospital in Adelaide, despite warnings of potential cost overruns. Lendlease, the project’s managing contractor, is expected to provide a final price estimate by the end of this year or early next year. Koutsantonis vowed not to "put up the white flag," emphasizing the government’s commitment to delivering the project on time and within budget, despite mounting pressures highlighted in an auditor-general report.
Written locally by qwen2.5:14b on 2026-10-28, using this article's own text rather than the other coverage of the same event (that is the story summary below).

AI analysis runs on qwen2.5:14b, locally

Story summary

The construction of a new Women's and Children's Hospital in Adelaide, originally budgeted at $3.2 billion, is facing potential cost overruns after four years since the project was first announced by the Malinauskas government. SA Treasurer Tom Koutsantonis has stated he will not abandon efforts to manage the budget despite warnings of increased costs. The hospital's construction was shifted from a smaller site west of the Royal Adelaide Hospital to the former Thebarton Police Barracks site on Port Road, and is now expected to be completed by 2031. Lendlease, the project’s managing contractor, is set to provide the final price for the build by the end of this year or early next year, according to Health Minister Blair Boyer.

Written for “Hospital Budget Crisis” on 2026-10-28, grounded in this article and the 0 other(s) covering the same event.
Why this leaning score
The model judged this article politically coded and scored it -0.25, but none of the 2 quote(s) it offered could be found in the article text, so the score is not published.
Written under an earlier scoring contract, which gave a paragraph rather than checkable quotes. Re-analysing this article replaces it.
Leaning score withheld for article 111153: no verified evidence · logged 2026-10-28

Story

📰 Hospital Budget Crisis
Health · 1 article(s) covering the same event.

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How this article was measured signals, leaning charts, publisher record, byline, topics and claims

Signals How these are calculated →

Claims extracted
20
sentences that state something as happening or true
Uncertain
20%
4 of 20 hedged ("reportedly", "may", "according to")
Leaning
withheld
no quote in the article backed the model's score
Publisher signals
68/100
ABC News (AU)'s corrections and hedging, across everything collected from it. Not a measure of accuracy.
Outlets on this story
1
Health
Same framing elsewhere
1
articles that frame the event the way this one does
Analyzed 2026-10-28 · how these are computed

How this is being covered How these are calculated →

Article leaning vs. publisher reliability
Source leaning vs. consistency

Publisher

ABC News (AU) · 4169 article(s) · 10 correction(s) detected
Running correction rate · 10 correction(s)

Who wrote this

Thomas Kelsall
7 article(s) here · 1 carrying a prediction
🔮 Lendlease is expected to provide a final price by the end of the year.
🔮 The report estimates that NDIS funding in SA could be $1.3 billion lower in 2030 than under the previous growth rate, equivalent to between 10,000 and 15,000 jobs.
🔮 As the world-renowned Michelin Guide dished out its coveted stars to 11 South Australian venues on Wednesday night, you could see all the hallmarks of a Malinauskas government media moment coming together.
🔮 A business case three years ago for creating the university forecast that it could attract 6,000 additional international students by 2034 — before the federal government's crackdown on migration.
🔮 Liberal Party state director Alex Hyde confirmed Senator Antic's presidency this morning, although the margin of victory is yet to be published. "The new president will convene the state executive soon and we all look forward to getting on with the job," Mr Hyde said in a statement.
2026-09-19 · assertive framing · Breaking: Senator Alex Antic wins SA Liberal presidency
🔮 It would have reversed the "No Jab, No Pay" policy introduced by the Turnbull government in 2015 to boost childhood immunisation rates against preventable diseases.
🔮 The community has "gone through a lot" but it will "band together" because it is a "resilient town" looking forward to better days.
Also by Thomas Kelsall
Nothing else under this byline is closely related to this article, so these are simply their most recent.
All 7 articles by Thomas Kelsall →

Topics

891 ABC Adelaide Health Lendlease Liberal Women's and Children's Hospital

Subjects

Lendlease ORG · 3× 891 ABC Adelaide ORG · 2× Boyer PERSON · 2× RAH ORG · 2× Health ORG · 1× Liberal NORP · 1× Malinauskas PERSON · 1× Marshall PERSON · 1× Tom Koutsantonis PERSON · 1× Women's and Children's Hospital ORG · 1×

Narrative

It has now been four years since the Malinauskas government revealed it would shift the new hospital build to the Thebarton Police Barracks site on Port Road, scrapping the former Marshall Liberal government's plan to build it on a smaller parcel of land immediately west of the Royal Adelaide Hospital.
framing: assertive · carried by 1 article(s) · first seen 2026-10-28
🔮 Lendlease is expected to provide a final price by the end of the year.

Claims (20 extracted, 4 hedged)

In short: The construction of a new hospital, originally budgeted at $3.2 billion, is facing predictions of a cost blowout. asserted
construction → budget → blowout
SA government ministers say the budget allocated to the project is under pressure. asserted
budget → say → pressure
Lendlease is expected to provide a final price by the end of the year. asserted
Lendlease → expect → year
SA Treasurer Tom Koutsantonis says he is "not going to surrender or put up the white flag just yet" on the budget for the new Women's and Children's Hospital, after renewed warnings about cost overruns on the $3.2 billion health project. asserted
he → say → project
It has now been four years since the Malinauskas government revealed it would shift the new hospital build to the Thebarton Police Barracks site on Port Road, scrapping the former Marshall Liberal government's plan to build it on a smaller parcel of land immediately west of the Royal Adelaide Hospital. asserted
it → reveal → Hospital
The project was allocated $3.2 billion and scheduled for completion in 2031. asserted
project → allocate → 2031
Following persistent speculation about a major cost blowout, the project's managing contractor Lendlease is set to give the state government a final price for the hospital build by the "end of this year, or some time around the start of next year", according to Health Minister Blair Boyer. uncertain
contractor → follow → Boyer
"Once we've got it, then the government then has to make a decision on whether we increase that $3.2 billion budget," Mr Boyer told 891 ABC Adelaide. asserted
Boyer → get → Adelaide
The project's schematic design — a detailed, room-by-room outline of the new hospital — was completed "in the last couple of weeks", the health minister said. asserted
minister → complete → weeks
Asked if he could say $3.2 billion is "achievable", Mr Boyer said: "No I can't." uncertain
I → ask → ?
"It is absolutely a build that is under a lot of pressure, it is under pressure like other hospital builds right around the world," he said. asserted
he → say → world
Those pressures were underscored by an auditor-general report tabled in parliament on Tuesday that highlighted a 3.2 per cent increase in non-residential building construction costs in SA over the last year. asserted
that → underscore → year
"Some key project elements remain unresolved," the auditor-general said of the new hospital, "including the budget impacts of the final schematic design and the appointment of a major construction contractor. asserted
general → remain → contractor
"Until these matters are finalised, the full cost of delivering the project remains uncertain, increasing the risk that the current budget may not be sufficient." Mr Koutsantonis said he also had concerns about the Women's and Children's budget. uncertain
he → finalise → budget
But the treasurer pushed back against speculation the cost could escalate to $5 billion, saying: "No-one's ever said that number to me." uncertain
's → push → me
"My message to Lendlease, my message to all the contractors here is the government is sticking to its guns, we want this project delivered," he said. asserted
he → stick → guns
"Now I understand it's under pressure, I understand there's been escalation, but I am not going to surrender or put up the white flag just yet. asserted
I → understand → flag
"I want this project delivered on time and on budget." Shadow Treasurer Ben Hood said the hospital's budget was set four years ago and there was still no builder. "It's all history repeating," he told 891 ABC Adelaide. asserted
he → want → budget
"We saw the new RAH [Royal Adelaide Hospital] blow out to one of the most expensive buildings in the southern hemisphere and now we see it again with the new women's and kids'." asserted
we → see → women
The new RAH was costed at $1.7 billion when it was unveiled by the Rann government in 2007, but rose to $2.4 billion by the time it opened in 2017 — a year behind schedule. asserted
it → cost → schedule
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