Tauranga's Grace Hospital is to get a multi-million dollar upgrade with new medical facilities to meet the needs of the growing city.

Owners Evolution Healthcare and Southern Cross Healthcare said they would develop the existing five-hectare site in Oropi with details to be announced next year.

Evolution Healthcare chief executive and chair of the hospital board Simon Keating said the development will bolster services for the growing community.

"We are considering how best to meet the needs of this burgeoning area, including through additional theatres," Keating said.

"The development project will also generate a variety of job opportunities during both the construction and operational phases, boosting the local economy and providing valuable services to the community."

He said the partners will work with leading doctors to deliver this project, with details to follow once the plans were confirmed.

Southern Cross Healthcare chief executive Chris White said the collaboration would combine the expertise of a healthcare provider and medical professionals to deliver a patient-centred approach to care.

"The continued development of Grace Hospital demonstrates our dedication to enhancing healthcare facilities in the Bay of Plenty region," White said.

-RNZ