Construction of a new renal health unit at the Kings Meadows Community Health Centre is underway, with the original Joan Marshall building now demolished.
The unit will lift the number of dialysis treatment bays from 15 to 18 to meet rising demand in northern Tasmania.
Builder Shape Australia started main works on site in early January.
Construction is expected to wrap up by the end of the year, with dialysis services moving into the new facility shortly after.

The federal government has tipped in $10 million through the community health and hospitals program.
The design was shaped by consultation with staff, patients and carers, along with a consumer advisory group.

Allied health services and renal dialysis will keep running from the existing Community Health Centre next to the construction site until the new unit opens.
Health Minister Bridget Archer said the new unit would change how renal services were delivered in the region.
“The renal health unit will feature light filled spaces, dedicated staff spaces and views out into soft landscapes, along with access to the main Community Health Centre,” she said.
She said the extra treatment bays would help meet growing demand and the Joan Marshall name would be kept on the new building.
“This Liberal government is delivering for Tasmanians, ensuring our community can access the right care, in the right place, at the right time,” she said.
Federal Bass MP Jess Teesdale said the project would make a real difference for patients in the north.
“This new renal health unit at Kings Meadows is a game-changer for northern Tasmania, giving patients access to life-saving dialysis closer to home in a modern, purpose-built facility,” she said.
“The Australian government’s $10 million investment shows what can be achieved when governments, health providers and the community work together.”