NZ Unveils $20B Health Infrastructure Plan to Renew Aging Hospital Network

New Zealand Launches First National Health Infrastructure Plan to Address Decades of Facility Decay and Support Future Growth.

New Zealand has taken a landmark step in modernising its health system with the release of the country’s first-ever Health Infrastructure Plan, a national, long-term strategy to overhaul and expand the public health estate. Health Minister Simeon Brown today announced the comprehensive initiative, marking a new era of coordinated investment aimed at revitalising outdated infrastructure and preparing for future health demands.

Speaking at the launch, Mr Brown emphasised that this is the first time New Zealand has developed a cohesive, strategic framework to guide health facility development across the country.

“This is a first for New Zealand – a single, long-term plan that lays out a clear pipeline for health infrastructure,” Mr Brown said. “The health system is under significant pressure from ageing infrastructure that hasn’t kept pace with the needs of a growing and ageing population.”

A Crumbling Health Estate

The plan highlights the critical state of New Zealand’s health facilities: 1,274 buildings across 86 campuses, with an average age of 47 years. Many of these facilities face significant challenges, including:

• Structural issues requiring major remedial work to prevent service disruptions

• Poor seismic ratings and compliance risks

• Infrastructure unfit to support modern healthcare delivery

“The condition of our health infrastructure is not a new problem—it’s the result of decades of underinvestment,” Mr Brown said. “We need a long-term, nationwide approach to tackle this deficit and ensure the delivery of safe, modern, and reliable care for all New Zealanders.”

$20 Billion Investment Pipeline

The Health Infrastructure Plan identifies over $20 billion in investment needed to meet future healthcare needs. This will be delivered through a new approach dubbed ‘Building Hospitals Better’—a model that focuses on staged, modular development rather than large-scale, monolithic hospital projects.

By constructing smaller, phased facilities, the plan aims to:

• Deliver services to communities faster

• Improve cost and timeline certainty

• Provide flexibility for future expansion

“The staged approach means patients will benefit sooner from modern healthcare environments, while giving us better control over budgets and schedules,” Brown noted.

Phased National Programme

The plan lays out a detailed, multi-stage programme of hospital and facility developments across New Zealand. Key features include:

• Major new hospital builds and expansions

• New acute services buildings and inpatient units

• Expanded emergency departments and upgraded wards

• Community-based health hubs for outpatient services

One of the flagship projects is the planning and initial construction of a new hospital in South Auckland, catering to one of the fastest-growing and most diverse populations in the country.

Bringing Healthcare Closer to Home

Supporting the infrastructure plan is the National Clinical Service and Campus Plan, a strategy to decentralise services and reduce pressure on hospitals by enhancing community-based care.

As part of this shift, the government will invest in new ambulatory care hubs in population centres, offering services like:

• Radiology

• Oncology

• Dialysis

• Day-stay surgeries

“This approach helps cut down on the need for expensive hospital admissions while also bringing care closer to where people live,” Mr Brown explained. “It’s more efficient and more convenient for patients.”

Each project in the infrastructure pipeline will require a full business case and go through Cabinet’s usual funding approval process.

Dunedin Hospital Rebuild: Construction Resumes Mid-Year

As part of the national rollout, Mr Brown also announced major progress on the New Dunedin Hospital. Health New Zealand has begun the tender process for the next stage of construction for the inpatient building at the former Cadbury site.

Key steps include:

• An Advance Notice being issued on GETS (Government Electronic Tender Service)

• Substructure works beginning mid-year

• Installation of 324 capped piles and the base for the basement perimeter

• Followed by installation of base isolators and the hospital frame

“The substructure is the vital foundation for what will become a state-of-the-art facility delivering care for generations,” Mr Brown said. “While commercial negotiations continue for the main construction, this next phase of work signals real momentum.”

A Blueprint for Generational Change

While acknowledging that the infrastructure gap cannot be solved overnight, the government considers this plan a crucial turning point.

“It sets out clearly what needs to be done and how we’ll do it,” said Mr Brown. “For the first time, we have a unified plan to ensure our hospitals and health services are fit for the future. This is about delivering real, lasting improvements for every New Zealander.”

The Health Infrastructure Plan will be periodically updated to respond to population growth, technology developments, and evolving models of care, making it a living strategy that adapts to New Zealand’s changing healthcare landscape.