Auckland’s private healthcare sector expands with nine private hospital, surgical expansions on the go
An expansion of new Auckland private hospitals, operating theatres and medical specialist buildings is running at an unprecedented pace, according to the head of one fast-growing business.
Andrew Williams, a urologist and chairman of Onesixone Medical Group, half-owned by Allevia Health, said the growth was the fastest he had seen.
“I have not seen anything like this in my time in Auckland, and I’ve been here 15 years,” said Williams, who is also an owner of the Urology Institute.
Nine projects are:
Retirement companies are also expanding hospital care to cope with the ageing population.
Metlifecare is adding higher-level services, spending $100m on aged-care and hospital-style accommodation at 10 of its existing North Island villages.
Williams’ businesses are Allevia and the Urology Institute, anchor tenants of a new $90m building by Mansons TCLM at 75 Remuera Rd, due to be finished mid-2027.
More people using private medical insurance were driving demand, hence medical businesses needed to expand and get new buildings, Williams said.
The public system was also sending more patients to private hospitals and specialists.
Ian England, Allevia CEO, said last year that about a third of Allevia Hospital Epsom’s patients are from the public sector: ACC and public patients.
Williams said: “The public hospitals are starting to outsource work, which they’ve been very clear about.”
He was referring to last year’s announcement by Health Minister Simeon Brown directing Te Whatu Ora Health NZ to give private hospitals 10-year contracts to perform elective surgeries.
“We’re making the health system work smarter, using both public hospitals and private providers in a coordinated national effort. New Zealanders don’t care who does the operation – they just want it done and done quickly," Brown said.
Southern Cross Health Society has 951,808 members, according to its latest annual report. About 60% of New Zealanders with private medical insurance are members.
Last year, Brown said an extra 21,000 operations would be performed this year as the Government spends more on private hospitals.
Southern Cross paid for a record 3.8 million claims in the year to June 30, 2025.
It paid out $1.706 billion, up 14% annually. About 94% of premiums collected were paid back to members in claims.
Southern Cross is now expanding its big North Shore hospital and also has plans to expand its Epsom property.
Allevia Health, 41% owned by Sir Stephen Tindall, is also expanding.
It has more than doubled the size of its Epsom hospital and will next year become the anchor tenant of a new $90m Remuera “medical mile” building.
Nine new private hospitals/specialist hubs
Below is a list of seven Auckland private hospitals or specialist centres where expansion has occurred lately or is planned.
1. Allevia Hospital Epsom
Located at 98 Mountain Rd, the hospital was originally founded by the Sisters of Mercy.
This has been the single largest private hospital expansion in Auckland in the past two years.
All up, $190m was spent by mid-2025, but CEO Dr Ian England said more spending was planned.
Ten new operating theatres were built in the new Gilgit Wing alone.
2. Southern Cross North Harbour Hospital
232 Wairau Rd, Totara Vale/Glenfield, North Shore, owned by Southern Cross.
No value has been put on the expansion, but experts say it could be $100m-plus.
It is being expanded from eight to 15 operating theatres
Preparatory ground work started on its Glenfield site late last month.
A new block is rising on what is now a relatively flat asphalt carpark to the Wairau Valley side of the existing main building.
Work is expected to take 18 months to two years to finish.
No dollar value was put on the expansion when it was announced last year.
Southern Cross Healthcare CEO Chris White said the plans represented a significant investment.
The hospital will have more capacity and a modern, sustainable environment while continuing to provide the high standards of clinical care, he said.
3. Kākāriki Hospital, Greenlane
15 Marewa Rd, Greenlane.
This new hospital and medical specialist building beside Woolworths opened in early 2024.
It is valued for rating purposes at $41m and has basement and ground-level parking.
On the first floor are medical consulting suites. Many specialists have rooms where they see patients.
This private hospital overlooking the motorway is operated by Allevia Health.
It was built by Clearwater Construction.
Allevia owns half of the operating company with a group of specialists.
4. Allevia Health Remuera
75 Remuera Rd, Remuera.
This $90m development by Mansons TCLM won’t be finished until mid-2027.
Allevia, 41% owned by Tindall, is the anchor tenant, taking about three floors.
Andrew Williams, chairman of Onesixone Medical Group, which is half-owned by Allevia, said the move would transform the business.
Onesixone Medical is now at 161 Gillies Ave. Allevia will take most of the building, Williams said.
5. Southern Cross Brightside Hospital
3 Brightside Rd, Epsom
There are long-term plans to expand this property.
Last November, Southern Cross Healthcare’s Chris White said the business welcomed a 2024 Environment Court decision to approve a zoning change for the property.
Some nearby homes will be demolished for a large expansion which was challenged by neighbours.
The four-theatre hospital provides 43 inpatient beds, six day-stay chairs, and has nearly 100 staff.
It was established in the 1940s but rebuilt and reopened in 2000.
6. Ormiston Hospital
125 Ormiston Rd, Flat Bush, in southeast Auckland.
This is a joint venture hospital with Southern Cross Healthcare.
In 2024, this privately owned, $83m Auckland hospital doubled in size.
That resulted in a $38m extension – and a $3m robot – to cater for the area’s growing population.
An extra 4500sq m of floor space over three levels was added.
NZX-listed Vital Healthcare Property Trust owns the hospital, but it is operated by Ormiston Surgical & Endoscopy.
Southern Cross Healthcare is that company’s major shareholder, with a group of surgeons and other investors.
7. Endoscopy Auckland expansion
148 Gillies Ave and 22-24 Kipling Ave, Epsom.
Last year, a 1400sq m standalone dedicated endoscopy suite was added.
This $50m property is a joint venture between Evolution Healthcare and Allevia Health.
It has four purpose-built theatres and a 16-bed endoscopy facility, and Vital said it was the first private hospital in New Zealand to achieve a 5 Star Green Star Design and As Built rating.
8. Franklin Day Surgery
82 Manukau Rd, Pukekohe.
Opened at the start of this year, founded by a group of doctors.
Has two operating theatres that are general anaesthesia capable, a four-bay first-stage recovery room, a six-bay second-stage recovery room and 10 day-stay beds.
Gynaecology, ENT, plastic surgery, urology and ophthalmology services are provided.
9. Allevia GI Institute
46 Taharota Rd, Takapuna.
This existing gastrointestinal specialist building was expanded and refitted in work completed at the start of this year.
It is a joint venture between Allevia and a group of specialists who paid to refit an older building.
Public hospitals
The Government is also spending big, announcing in this year’s Budget how it was buying land at Drury for a new hospital.
A new Dunedin public hospital is being built, with cost estimates ranging from $1.9b to $3b.
Design and enabling works were announced for redevelopment programmes at Tauranga, Palmerston North and Hawke’s Bay hospitals in the next two years.
Health New Zealand Te Whatu Ora would also fund a new temporary intensive care unit at Palmerston North Hospital and the fit-out of an inpatient unit at Tauranga Hospital.
A new 158-bed tower block will be built at Whangārei Hospital.
Taranaki Base Hospital is getting a $462.6m expansion.
Budget 2026 delivered more than $680m of capital spending for the public health sector.
Anne Gibson has been the Herald’s property editor for 26 years, written books and covered property extensively here and overseas.