The Southern District Health Board is welcoming the announcement that a new hospital will be built in Queenstown.
Southern Cross Hospitals and Central Lakes Trust are working together to develop the new hospital next to the Queenstown Country Club on Frankton-Ladies Mile Highway.
Southern DHB has signed a Memorandum of Understanding with the partners to explore how the new hospital could support the public health system.
It will provide elective surgical procedures including endoscopy, general surgery, gynaecology, dental, orthopaedic, urology, plastic surgery and ear, nose and throat surgery.
Currently local patients have to travel to Dunedin, Invercargill or Christchurch for these procedures - that's up to six hours away.
DHB chief executive Chris Fleming said he's confident all involved want the benefits of the hospital to be shared by everyone, not just those who can afford it.
Mr Fleming said the hospital should reduce the amount of time patients need to travel out of town.
It's expected to be completed in late 2021.