The Government will spend $300 million on a major upgrade of the New Plymouth hospital, including a new emergency department and a rooftop helipad.
The funding comes from the $1.7 billion which was earmarked for upgrading health facilities and hospitals in the budget.
Health Minister David Clark said the people of New Plymouth deserve a modern, fit-for-purpose facility which can support the hospital's already high-quality services.
He said the upgrades would make the building five stars on the Greenstar certification – meaning it meets a high level of energy efficiency.
As well as the new emergency department and helipad, the new wing of the hospital will also have a new intensive care unit and a purpose-built maternity facility.