Allevia Hospitals has completed its $190 million redevelopment of Mercy Hospital, officially launching Allevia Hospital Epsom with a blend of modern design and integrated care options for public and private patients.
Legacy Meets Innovation in Heritage Redevelopment
Originally founded in 1901 by the Mercy order of nuns, the hospital has undergone a dramatic redevelopment while maintaining its legacy.
The renaming to Allevia Hospital Epsom reflects a new era, and the recently opened McAuley Ward pays tribute to Catherine McAuley, founder of the Mercy order. The redevelopment, led by Leighs Construction and other key contractors, began in 2022 and was completed in phases.
Enhanced Clinical Capabilities Redefine Sector Standards
Allevia Epsom stands as the only private hospital in Auckland equipped with both an intensive care unit (ICU) and a high-dependency unit, with the new facilities now operational. It also boasts the largest private ICU in the country. The hospital is designed to accommodate complex, high-acuity medical cases.
“Some people say, ‘you just do the easy stuff’. That‘s untrue. We do open heart surgery, head and neck cancer surgery, major spinal, liver and kidney surgery,” said Dr Ian England, CEO of Allevia Hospitals, during a guided tour of the new site.
Major Capital Investment Drives Infrastructure Expansion
The redevelopment includes a major $150 million investment in constructing the new four-level Gilgit Wing on the site of the hospital’s former driveway and entrance. An additional $30 million funded the development of an off-site sterile processing facility at 79 St George’s Bay Rd in Parnell, upgrades to the existing seven-level Prendergast building, and expanded parking.
Another $10 million went toward the construction of an adjacent 887-square-metre Heart Group building by RCP and Brosnan. This extensive infrastructure upgrade reflects a commitment not just to scale but to clinical capability.
Public-Private Integration in Patient Care Delivery
While the hospital is privately run, its patient model includes a significant public component. “Many of those funded by ACC come to the hospital for spine, shoulder or knee surgery,” Dr England explained. Approximately 25% of Allevia Epsom’s patients are funded through ACC or Health New Zealand Te Whatu Ora, demonstrating a successful integration of public-private care.
Future-Focused Model Aligns with Medical Innovation
The redevelopment is not only a response to growing demand but also to the pace of medical innovation. “Medicine is moving at such a pace that continuous development and change would be necessary,” said England.
Allevia’s COO Aimee Bourke also emphasised the long-term vision behind the project, which is designed to support new technologies and patient care models well into the future.
The opening of Allevia Hospital Epsom introduces a facility capable of delivering care standards commonly found in the public sector. The transformation of a heritage hospital into a state-of-the-art medical centre reflects a broader strategy for modernisation and growth.







