Health New Zealand estimates the new frontline doctors will cost $20 million, depending on the specialities of the doctors and their experience.
Funding of $10m will be made available for new nurses.
Health Minister Shane Reti says the investment will reduce wait times, improve patient safety and support vulnerable specialities like dermatolgy that are in need of more clinical staff.
"This funding will help fill critical workforce gaps and support the health workforce to deliver on the Government's health targets, particularly in regional or provincial hospitals," Reti said.
"While Health New Zealand has made significant progress recruiting nurses in the last 12 months, there are critical shortages."
"Setting aside funding specifically to employ senior specialist nurses and allied health professionals will help sustain services that are struggling because of a lack of specialist skills," Reti said.
A separate $12m fund is also being set up to pay for minor repairs, replacement appliances, and new books and toys for children undergoing treatment.
It will be up to each region to decide how to spend the money, "but I expect them to be able to access it quickly and easily, so they can get recruitment and minor repairs underway", Reti said.
RNZ reported on Monday that patients who need hospital treatment are increasingly not even making waiting lists.
An excerpt of a letter to a GP from Palmerston North Hospital's orthopaedic clinic earlier this year - obtained by RNZ - confirmed some referrals are being knocked back due to "lack of resources".
Meanwhile, Te Whatu Ora accepted more than 400 voluntary redundancies in October, as part of efforts to cut costs to ease a huge deficit. On Monday, staff in its IT department were told of a new proposal to disestablish more roles at the agency.
