The Southern District Health Board says it has fixed the problem of water leaking into operating suites at Dunedin Hospital.
The topic dominated debate at Parliament's health select committee today, where DHB chiefs appeared for a regular financial review.
Dunedin South MP Clare Curran said the hospital was an old, leaky building in desparate need of a rebuild and upgrade.
She said operating theatres leaked when it rained heavily, and a major upgrade was needed.
But DHB chief executive Carole Heatly said improvements had been made.
"The theatres do not leak anymore. Because we have spent $1.3 million of capital monies on fixing the problems that we did have with the operating theatres.
"So it's not the problem that it was. And you'll see all the scaffolding over the building as you go past every day."
Ms Heatly said more interim improvements were planned while work towards a more substantial upgrade continues.