Billion dollar Nelson Hospital development to start construction in 2026

A $1.1 billion redevelopment of Nelson Hospital is scheduled to occur over the next ten years, the Government announced on Friday.

Minister of Health Ayesha Verrall said the first tranche, worth $73 million, would provide funding for a detailed business case to be developed and allow enabling works, including earthworks, to begin.

Construction is slated to begin in 2026.

In addition to plans for a new acute services and inpatient building, the redevelopment will feature 255 beds (up from 161), eight theatres (up from six), and a larger emergency department that meets Australasian standards and will allow better patient flow.

“The current building has significant issues. It’s hard to practically care for people in some of the spaces and it means also that the capacity is constrained,” Verrall said. “The people of Nelson deserve a modern, fit-for-purpose hospital.”

Nelson Hospital’s George Manson building was found to be the worst in New Zealand in a 2020 stocktake of the country’s hospitals and, along with the Percy Brunette building, is earthquake-prone.

Both buildings need to be strengthened by November 2028.

Jeremy Holman, chief infrastructure and investment officer for Te Whatu Ora – Health New Zealand, said that despite the earthquake-prone notice, the hospital was not at risk of collapse and that the funding announcement would get the project, including strengthening works, moving “as fast as possible”.

Verrall added that the new acute services building will be built to Importance Level 4 standards which will mean the hospital will be able to continue to provide patients with healthcare after an earthquake event.

Nelson’s Labour MP Rachel Boyack said the hospital redevelopment will be the biggest capital project the city has seen in a generation.

“We need to take the time to get this right – we’ve seen what can go wrong elsewhere when previous Governments have cut corners and underinvested.”

Previous ministerial assurances were given that the hospital redevelopment would begin this parliamentary term.

The delay until 2026 has been attributed to ensuring the hospital’s redevelopment accurately addressed the needs of the region and, according to Verrall, has resulted in plans for a “larger-than-initially-planned hospital”.

National’s Nelson candidate Blair Cameron said it was “good” to see funding committed to the hospital redevelopment but said the Government should have “been up front much earlier” about the project’s delay.

“I have some serious concerns about Labour’s ability to deliver the project,” he said. “We can’t afford for Nelson Hospital to follow the same path as the Dunedin Hospital – our region desperately needs a new hospital.”

He added that the Nelson Hospital would be a “key priority” for the party if National won the next election, despite Boyack’s concerns the project would be “at risk” under a National Government.

Nelson Mayor Nick Smith sought an urgent briefing from Te Whatu Ora and ministers in June over concerns about meeting the November 2028 deadline to strengthen the hospital.

He described the announcement as a “positive step forward”, but reiterated his concern that it was going to be “very tight” for Te Whatu Ora to meet the deadline to strengthen the building in time.

“I’ll want to see the details and the community properly consulted to ensure that we get a hospital fit for meeting the region’s needs for the next half century,” he said.

“My job as mayor, regardless of whoever’s in government, is to keep the pressure on to ensure that we get the very best redeveloped hospital to serve our community’s needs.”