The formal opening follows commissioning of the first two of three stages of the hospital's reconstruction.
Stage 1 was completed in September last year and saw a new maternity unit built alongside the hospital's emergency department and a new radiology area.
The Emergency Department has moved to the opposite side of the hospital and doubled in size, from six to 12 cubicles. Taupo Maternity is now next to the Emergency Department, with two birthing rooms and three post-natal rooms.
Stage two of the redevelopment saw the inpatient ward (Ward 2) redeveloped and refurbished, along with the hospital's occupational therapy area. Staff and patients moved back into the redeveloped areas last week.
Stage three of the hospital's redevelopment begins later this year and in early 2015 will see the redevelopment of the outpatient clinics area and the hospital main front entrance.
The second phase of stage three will include refurbishment of the physiotherapy department and the day-stay unit.
The Taupo Hospital and Health Society initially donated $750,000 to the redevelopment and its members have been fundraising during the past 18 months for the rest.
Seismic strengthening requirements coupled with design changes to the maternity and inpatient units saw the cost rise by an unbudgeted $1.3 million to $12.88 million.