The Director of Health in Niue, Dr Kara Okesene-Gafa, says the opening of the new hospital there is the sign of a new beginning for Niue.
The hospital was opened by the Niue Premier Young Vivian and the New Zealand Foreign Minister, Winston Peters.
The building, which includes an infectious disease and intensive care unit, was funded by the New Zealand government.
Dr Okesene-Gafa says the opening marks the end of the cyclone recovery from Heta in 2004.
She says this is reflected in the name of the hospital, Niue Foou, or New Niue.
"We can look ahead and put the past behind us - as you can see from one of the plaque it said from Philippians that quotes that we will forget what is behind and look forward to things that are ahead. And hopefully, that's what we are going to do and we will develop our services with that in mind - with that vision"