The government is to spend $224 million on extra beds at Auckland's North Shore Hospital and new facilities at Whangārei Hospital.
In a statement, Prime Minister Jacinda Ardern said the majority of that money would go towards a new elective unit at North Shore Hospital, which is expected to provide an extra 120 beds and four operating theatres.
"We set aside a record $750m in this year's Budget as a first step to rebuilding New Zealand's hospitals so it's pleasing to be delivering on our promise to ensure New Zealanders to have access to the health care they deserve."
In Whangārei, $24 million will be spent on interim surgical and endoscopy facilities over the next 10 years, while a longer term redevelopment of the hospital is planned.
In a statement, Health Minister David Clark said he was pleased with Waitematā District Health Board's plan which has been designed to allow for further capacity to be added as demand increases.
"This provides the opportunity for this facility to meet demand from elective patients from across the Auckland area and reduce waiting times," Dr Clark said.
The funding package for Whangārei Hospital DHB will also allow for the establishment of a cardiac catheter laboratory, Dr Clark said.
"The prevalence of cardiovascular disease in Northland contributes to the greater life expectancy gap between Northland and the rest of the Northern region and between Māori and non-Māori," he said.
"The new cardiac catheter lab will mean fewer avoidable deaths through improved cardiac care for Northlanders and represents a significant opportunity to improve equity of outcomes."