Taranaki Base Hospital is to have an $80 million upgrade, including two new surgical theatres and more hospital beds.
The first stage will consist of a new block with a combined theatre, ambulance service and in-patient ward.
The Government will contribute $43 million, and board chairman John Young says its $37 million share will be met by reserves and borrowings.
Mr Young says extra revenue from increased capacity will repay some of the debt. The reconfigured hospital will also be more efficient, which will also help pay for the project, he says.
The Government says ensuring the hospital is well equipped will reduce the need to transfer patients to Waikato, Auckland and Wellington.
The hospital serves the entire Taranaki area.
