Some patients needing chemotherapy will be able to receive treatment in Whanganui in the future, rather than travelling to Palmerston North.
Health Minister David Clark's announcement of $2.8 million for the Whanganui District Health Board (DHB) is part of the Government's $300 million package of priority health funding.
"For Whanganui, $2 million has been set aside to extend the Waimarino Health Centre," Clark said.
"This collaborative project involving Whanganui DHB, Healthy Families and Ruapehu Whanau Transformational Programme will support community wellness initiatives.
"In addition, $800,000 will be invested in a new regional chemotherapy service. This will enable the DHB to provide chemotherapy services in Whanganui rather than people having to travel to Palmerston North.
"Delivering more care closer to home makes a big different to patients and their whānau."
Whanganui DHB chief executive Russell Simpson said he was delighted to have both projects approved as they would provide great benefit to the community.
He said the $2 million project to extend the Waimarino Health Centre, both physically and in the services it offered, was a testament to the efforts of the local community in realising the aspirations of the Ruapehu Whānau Transformation plan.
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"This shows the value of co-designing with the community in creating solutions for the future wellbeing of people. It is also an important step in improving rural health services."
Ruapehu mayor Don Cameron welcomed the $2m for extending the health centre in Raetihi.
"This is an investment in the local community that will significantly enhance the delivery of health services and help to improve community well-being," he said.
Erena Mikaere, Ruapehu Whānau Transformation leader, said the development offered potential to the Waimarino for "a wellness system that listens to the voices of our community and delivers services based on genuine and evolving needs and aspirations of our local population - it is a fantastic example for rural communities".
Simpson said both projects would support the DHB's commitment to achieving equity in health outcomes for Māori.
The DHB has wanted for some time to provide an infusion therapy unit to deliver chemotherapy and other infusion services at Whanganui Hospital. Currently, patients have to travel to Palmerston North Hospital and the development of a local unit will mean eventually some patients will be able to receive treatment in Whanganui.