The larger building programme will see the tired, poorly laid out current hospital building not only modernised but better able to integrate primary and secondary health and social services for the mid-north.
The configuration of primary care services such as doctors' and other clinics is still being planned but will include a mix of mobile, community and outreach clinics.
The services will be an extension of existing community health strategies already operating via the Bay of Islands Integrated Family Health Centre, NDHB chief executive Nick Chamberlain said.
"We are always looking for ways to strengthen partnerships in the delivery of healthcare services and, with the formalisation of a Memorandum of Understanding with Ngati Hine Health Trust last year, we are set to develop a purpose-built facility together."
NDHB has already committed $8 million to the major refurbishment already under way at the hospital. That includes building new emergency and medical facilities, after-hours clinics for GPs to use, a new eight-bed renal unit and replacing and relocating the kitchen.