The government has revealed that Nelson Hospital's redevelopment is set to cost $500 million over four years, less than half of what the previous Labour-led government committed.
Health Minister Simeon Brown said this investment - part of the government's $1 billion "boost" to hospital infrastructure - would fund a new five-storey inpatient unit with 128 beds, an energy centre, and seismic upgrades while refurbishing existing buildings.
Nelson would also be the first hospital in the country to receive a new "temporary inpatient unit" while construction is underway.
"This is a significant investment in the future of healthcare for Nelson. It includes the construction of a new inpatient building by 2029, two years earlier than planned," Brown said.
"Nelson Hospital is under increasing pressure from a growing and ageing population. It has a shortage of beds, putting pressure on elective treatment. Surgeries are being cancelled, and operating theatres are not being fully utilised due to a lack of inpatient beds."
Labour's plan was for a new acute services building with 255 beds at a cost of $1.1b, which was scrapped in August, when the decision was made to "re-scope" the project.
The new modular, transportable 28 to 32-bed inpatient units, "designed to provide extra capacity quickly and support ongoing care during major infrastructure projects" were part of a broader Budget 2025 initiative to ensure hospitals could continue delivering for patients during redevelopment, Brown said.
"They can be moved where needed, making them a flexible and fast solution to bed shortages. It is expected the unit for Nelson will be delivered within the next 12 months."
The new inpatient building at Nelson Hospital will include 128 beds, adding 41 more beds to the current capacity, along with an acute assessment unit, a transit lounge, a pharmacy, a blood bank, and dedicated areas for assessment, treatment, and rehabilitation services.
The hospital's two main buildings - the George Manson and Percy Brunette buildings - will be refurbished and seismically strengthened. A new Energy Centre will house critical hospital infrastructure, and there will be digital upgrades to support modern models of care.
"The government's staged approach to delivering major hospital projects is ensuring a well-planned and efficient build programme, with the $73 million in design and enabling works well underway, laying strong foundations for the next stage of construction," Brown said.
"The $11 million emergency department expansion, part of the redevelopment to meet growing demand, is expected to be completed in early 2026."
Brown said the government was "providing certainty to the people of Nelson by getting on with the project, which has been delayed for many years".
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