Pathlab specimen collection facilities will remain open across the region.
The new development includes the multi-million dollar BD Kiestra TLA (Total Lab Automation) machine, installed last month. The machine - the first of its kind in the country - will significantly decrease the time it takes for patients to get some types of test results back from their doctor.
Mrs McQueen said the facility would improve efficiency and create a full regional laboratory.
"We are looking forward to being housed in one purpose-built building. We will facilitate microbiology, transfusion, biochemistry, haematology, cytology, histology and relevant support services."
Mrs McQueen said the Tauranga Hospital laboratory was no longer fit for purpose and there were no viable options for the upgrading of the existing facility.
"With the laboratory providing essential services to the Tauranga Hospital it was determined that it needed to be within the existing campus."
Pathlab has run the combined hospital and community laboratory operation for the Bay of Plenty District Health Board for the past 19 years.