The government has committed $10.6 million to upgrade Nelson Hospital's emergency department.
Health Minister Dr Shane Reti said it was part of a broader plan to redevelop Nelson Hospital - the plans for which have not yet been released.
Dr Reti announced in August that the long-awaited hospital rebuild would now be made up of several smaller buildings and include existing infrastructure.
"It gives us the ability to have new buildings come up quicker and to reduce the cost risk of the build. That phasing to Nelson Hospital will continue and progress towards a business case, that's its next step.
"It is a good sign that we are thinking about the people of Nelson and trying to improve their access to healthcare services."
The Emergency Department will remain open during the redevelopment, which is expected to take 18 months. It will include six additional patient spaces, including two new isolation rooms and a negative pressure pod to contain infectious diseases.
It will also include a new fast-track area for patients who can be treated and discharged quickly, two dedicated mental health consultation rooms, an additional triage room and a whānau room.
The government has a target of 95 percent of patients being admitted, discharged or transferred from an ED within six hours. Last month approximately 78 percent of patients were seen in less than six hours at Nelson Hospital's ED.
Health New Zealand is expected to break ground on the project next week.
It's being funded by the Crown through the Health Capital Envelope, the Rapid Hospital Improvement Programme, and by using Health New Zealand funds set aside from asset depreciation.
Last week, elected members of the Nelson and Tasman councils were briefed on the project by Te Whatu Ora.
Concerns were raised that once the first stage was complete, further stages could be abandoned as political priorities shifted.
The previous government had signed off on a full rebuild of Nelson Hospital in 2023, after ruling out a series of smaller buildings.
Its $1.1 billion plan included 255 beds instead of the current 161, eight operating theatres instead of six, and a larger emergency department all located in one building.
The cost is expected to remain at around $1 billion.
Subject to Cabinet approval and granting of resource consent, it is hoped construction of the new inpatient building would start in early 2026 with construction expected to take between two and a half and three years.
The six-storey George Manson building and adjacent Percy Brunette building were deemed earthquake-prone by engineers, with notices issued by the Nelson City Council in 2020 requiring that they be strengthened or replaced by November 2028.
Reti said in August that recent seismic work revealed both buildings could be better remediated than previously thought.
The George Manson building has since been half-completed, while the consent applications for work on the Percy Brunette building will be lodged soon.