Nelson Hospital to Undergo Major Redevelopment with $1 Billion Boost

Nelson Hospital is on the brink of a transformative redevelopment, with Health Minister Simeon Brown announcing a major investment under the Government’s $1 billion Budget 2025 commitment to modernise healthcare infrastructure across New Zealand. Nelson will be among the first hospitals in the country to benefit, with a new inpatient building planned and a temporary modular unit arriving within the next year.

A New Era for Nelson Healthcare

Health Minister Simeon Brown called the project a “significant investment in the future of healthcare for Nelson,” as he unveiled a fast-tracked timeline for the new inpatient building—now expected by 2029, two years ahead of the original schedule.

“This redevelopment recognises the growing pressure Nelson Hospital faces from a rapidly ageing and increasing population,” Brown stated. “The shortage of inpatient beds is contributing to cancelled surgeries and underused operating theatres.”

The expansion aims to rectify these constraints by boosting capacity, reducing wait times for elective treatments, and enhancing overall service delivery.

Temporary Modular Units: A National First

Nelson Hospital will be the first in the country to receive a modular, transportable inpatient unit designed to offer interim relief during the construction phase. These 28 to 32-bed units are part of a broader strategy to maintain patient care standards while large-scale hospital redevelopments are underway.

“These modular units can be delivered quickly and relocated as needed, making them a flexible and scalable solution,” said Brown. The unit for Nelson is expected to be installed within the next 12 months, providing much-needed support to the hospital’s overstretched resources.

New Inpatient Building to Add 41 Beds

Once complete, the new inpatient building will provide a total of 128 beds—41 more than the hospital’s current capacity. It will house essential clinical functions, including:

• An acute assessment unit

• A patient transit lounge

• A new pharmacy and blood bank

• Modernised assessment, treatment, and rehabilitation facilities

The aim is to create an integrated and efficient hospital environment that accommodates increasing patient loads while delivering contemporary models of care.

Seismic Strengthening and Modern Facilities

As part of the broader redevelopment, Nelson Hospital’s two main buildings—the George Manson and Percy Brunette wings—will undergo seismic strengthening and refurbishment. In addition, a new Energy Centre will be constructed to house critical hospital infrastructure, ensuring resilience and energy efficiency.

Digital upgrades are also in the pipeline, supporting advanced technologies and enabling smart healthcare delivery.

Enabling Works and Emergency Department Expansion

Progress is already visible on the ground, with $73 million allocated for design and enabling works currently underway. These foundational efforts are laying the groundwork for the main phase of construction.

Another key component is an $11 million expansion of the emergency department, expected to be completed by early 2026. This upgrade will help the facility cope with increasing patient numbers and reduce congestion in acute care services.

Planning for the Future: Workforce and Services

Health New Zealand is actively planning for future workforce requirements to ensure the hospital is adequately staffed when new facilities come online. Recruitment and training efforts are being aligned with the upcoming service expansions to ensure a seamless transition.

“This project isn’t just about bricks and mortar—it’s about better care, better access, and better outcomes for patients,” said Brown. “It ensures that as the Nelson community grows, our health system grows with it.”

A Long-Awaited Promise Finally Realised

The project has endured delays and re-evaluations over the years. In August 2023, the Government decided to rescope the redevelopment, following years of stagnation. A comprehensive business case was completed by Health New Zealand and approved by Cabinet in early 2025, unlocking full funding in Budget 2025.

“After years of inaction, our Government is delivering certainty to the people of Nelson,” Brown affirmed. “We are getting on with the job and laying the foundation for a more resilient and responsive healthcare system.”

With construction progressing and both temporary and long-term facilities in the works, the Nelson Hospital redevelopment marks a vital step forward in ensuring equitable, high-quality healthcare for the region.