The practice would have 40 doctors, 50 nurses, employ 70 other staff and service 38,000 patients. It would not cause any job losses. It was not yet known whether it would create jobs.
The centre would be a multi-million dollar investment, but the exact cost, and location, has yet to be determined.
Totara Health managing director Howard Dickson said the centre would be "a great opportunity for everyone".
"Patients will keep their existing relationship with their doctor in new and better facilities, in a central Hastings location with good parking, whilst enjoying enhanced services and facilities at Totara Health's facility in Flaxmere.
The centre would feature "world-class facilities".
"We plan to consult widely with interested parties as we develop the design for the site. That includes staff, patients, iwi, the PHO and DHB and other primary health providers. We are also open to working with other medical practices."
Hawke's Bay District Health Board's chief executive Kevin Snee said the announcement was "very good news for people in Hastings".
"As a district health board we have been encouraging community organisations to be bold and think big, and this is a good example of two separate organisations doing just that.
"This announcement will not only mean a better patient experience but it will be good economic news for the region.
"We will want to talk with the two medical practices, Hastings Health Centre and Totara Health, about urgent care and after hours services as they develop their new model of care. This will be critical for the district health board as it develops its urgent and integrated care strategy for Hawke's Bay people."
Tukituki National MP Craig Foss welcomed the announcement of the new centre.
"A new primary healthcare centre is great news for Hawke's Bay.
"The centre, which will be one of the largest and most advanced in New Zealand, is a multi-million dollar investment in the health of our families. It's great to see the Bay at the forefront of New Zealand's healthcare system."
Napier Labour MP Stuart Nash said it was "a fantastic initiative".
"If it's going to be innovative and it's going to increase the level of healthcare available to people in Hawke's Bay, then it's a great thing."
Hawke's Bay Chamber of Commerce chief executive Wayne Walford said it appeared the health centre could be a boost for the region, provided it didn't detract from existing practices.
"If it's an opportunity for growth, for new jobs and for greater value for the region, it's a really positive thing - as long as those jobs are sustainable and it's got strong legs in the community.
"I just hope it's not going to take primary health-registered patients away from other practices; that would be a concern for me, but on the surface it looks really positive."
