The government has upped funding for a Whangārei Hospital redevelopment, announcing $759 million for Stage 1.
It said Stage 2 would likely cost another $200m but that money would be finalised closer to the time.
This is up from $572m ring-fenced earlier this year.
The hospital has had a litany of problems including raw sewage leaking down the inside of walls last year and lifts breaking down leaving patients needing urgent care stuck inside.
The redevelopment plans include an acute services building with a new emergency department with three times more space and 10 operating theatres in Stage 1 and a new 158-bed tower in Stage 2, with four medical and surgical wards and an acute assessment unit.
"It was originally expected both stages could have been funded out of the $780 million earmarked for the new hospital, but it became clear that would not build the facility Northland needs, so the project has been broken into two parts," Health Minister Andrew Little said in Whangārei today.
"Whangārei Hospital was built in the 1950s and is well past its use-by date."
Construction is expected to employ 500 people, including carpenters, electricians and plumbers.
Whangārei Hospital services more than 190,000 people. Northland's population is expected to reach 210,000 by 2030.
RNZ