The Infrastructure and health ministers - Chris Bishop and Shane Reti - are offering Dunedin a blunt truth

They've asked Health NZ for advice on two options to deliver the region's new hospital within its allocated funding of 1.88 billion dollars, with a report finding costs could balloon to three billion.

The independent review's found the current plan is 'probably not achievable' within its budget.

Bishop says they can't justify higher costs.

He says it would impact other hospitals around New Zealand crying out for maintenance, upgrades and new facilities.