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A private surgical facility is being built in Tauranga’s city centre with plans to open at the end of 2026.
The pioneering surgeon driving the project says it will help address Tauranga’s theatre shortage and public surgery waitlist - currently more than 2700 people, Health NZ says.
Electivesurgeries for specialties such as urology, gynaecology, and orthopaedics will be performed at the facility in the nearly $80 million Panorama Towers building on Hamilton St.
An artist's impression of Asclepius Surgical - a surgical facility planned to open in the new Panorama Towers building in Tauranga's CBD at the end of 2026. Image / Supplied
Tackling elective surgery waitlists
Fraundorfer works across Tauranga Hospital, Grace Hospital in Pyes Pa, Rotorua’s Southern Cross Hospital and in Gisborne.
He understood Tauranga had “by far the fewest” theatres per head of population of any New Zealand city.
“The shortage of capacity has really affected the ability to deliver elective care.
“We struggle to do any elective surgery in Tauranga Hospital.”
An artist's impression of Asclepius Surgical - a surgical facility planned to open in the Tauranga CBD at the end of 2026. Image / Supplied
For example, if an emergency caesarean needed a theatre prepared for an elective surgery, “that bumps the case”.
“Tauranga Hospital does a fantastic job of coping with what it’s got.”
Fraundorfer said most publicly funded elective surgeries were outsourced to private hospitals because “there’s just no capacity” in public facilities.
“Effectively [as] I see it, Tauranga Hospital will evolve into what will we call an acute hospital and I’m hoping Asclepius ... [will] take up the elective work.
“That’s how I see us helping the waitlist - just by creating capacity.”
Fraundorfer said the “one-off opportunity” to lease the site came about by chance from a conversation with the builder in 2023.
Asclepius Surgical would lease six of the 13 levels - one for a carpark and five for the facility - and builders had made “significant modifications” to accommodate it.
This included lowering and strengthening one floor, adding a “special stairwell” for stretchers plus two additional lifts, he said.
Tauranga urologist Dr Mark Fraundorfer. Photo / Megan Wilson
Fraundorfer said the facility would have six theatres, two procedure rooms, one interventional radiology suite, and 60 beds.
Elective surgeries for urology, general surgery, gynaecology, orthopaedics, plastic, and otolaryngology (ear, nose and throat) would take place at the facility.
It would not be open for emergencies or after-hours, he said.
An artist's impression of a clinical space in Asclepius Surgical. Image / Supplied
Fraundorfer said it would be “great for downtown Tauranga” as patients' families would also come to the city.
“They’ve got to go and eat and somewhere to stay overnight … we think it’s going to revitalise that downtown area.”
He said it would initially create about 100 jobs.
The facility was taking a “regional” approach with patients and medical practitioners from across the Bay, including Rotorua, he said.
Addressing ‘critical’ shortage
Panorama Towers is a joint venture between Carrus Group, Watts Group Investments, and Quayside Holdings - the Bay of Plenty Regional Council’s investment arm.
Carrus managing director Scott Adams said Asclepius’s “state-of-the-art” healthcare facility would address the “critical” shortage of surgical capacity in the Bay.
Transport hubs and parking nearby made Panorama Towers “a highly accessible and convenient option” for patients and staff.
Adams said Carrus had not yet secured other tenants for the building.
He said the development cost was now “closer to $80m″ than the previously estimated $60m.
Carrus managing director Scott Adams pictured at Panorama Towers in June 2024. Photo / Alex Cairns
Adams said Panorama Towers represented “a transformative step forward” for Tauranga CBD’s evolution into a thriving hub for business, healthcare, education, and innovation.
Towards the middle of this year, it expected to open 200 public car parks accessible from Harington St, in a boost for parking infrastructure.
Adams said Panorama Towers would “redefine the city centre’s commercial landscape”.
Grace Hospital plans four new theatres
Grace Hospital board chairman Simon Keating said it was investing “significantly” in additional capacity given increased demand in Tauranga.
The hospital had nine operating theatres after opening two in 2022. It also had three procedure rooms.
Construction was under way to expand support facilities by the end of the year to enable plans for another four operating theatres, Keating said.
He said hospital owner Evolution Southern Cross Limited was talking to specialists about innovative future partnership and investment opportunities.
Keating said Grace Hospital welcomed competition. It had been growing on its Pyes Pa site since 2007 thanks to relationships with specialists and funders such as health insurers, ACC and the public sector.
The hospital expected to increase its volume of publicly funded surgeries “in the near future” and Health NZ had acknowledged its important role in Tauranga.
Last year, Grace Hospital provided more than 11,000 procedures and it employed 370 staff, Keating said.
In his view, “it will not be easy for a new hospital facility to establish funding agreements and employ the necessary staff in the current environment”.
Fraundorfer said setting up a new facility had “never been easy in my experience and we will rise to the challenges”.
Asclepius Surgical will create about 100 jobs.
Photo / Supplied
Health NZ responds
Health NZ Te Whatu Ora Hauora a Toi Bay of Plenty operations group director Pauline McGrath said 2747 patients were waiting for elective surgery - 2510 in Tauranga and 237 in Whakatāne.
Regular clinical reviews prioritised patients by highest clinical need and longest wait time.
“Acute and priority specialty planned care is also considered in our planning.”
McGrath said Health NZ was committed to reducing waiting times and improving access to elective surgery among other targets for quality care.
She said Health NZ made contracts with private providers via a public procurement process, and welcomed expressions of interest from new providers.
Health NZ was also asked about how Tauranga theatre numbers compared nationally.
Megan Wilson is a health and general news reporter for the Bay of Plenty Times and Rotorua Daily Post. She has been a journalist since 2021.
