One of the most remote hospitals in the country is fighting back against funding cuts.

Southern District Health Board is to slash five percent of funding for Dunstan Hospital in Clyde despite patient admissions rising 28 percent over the past three years.

The hospital is run by Central Otago Health Services.

The cuts will force them to close between 25 and 50 percent of Dunstan's beds, reduce staff numbers, and close the high-dependency unit.

Chairman Russell McGeorge says meetings have been held with the DHB to explain that unlike most of the district, growth is booming in Dunstan's service area.

"The people are still going to come in our door even if we have to close beds and so those people are going to have to be transferred to Dunedin which is three hours away."

McGeorge claims people from Upper Clutha may have to be transferred to Queenstown or Invercargill.

He says they won't allow this damage to happen lightly.

A petition will be circulated at the meetings in Alexandra, Cromwell and Invercargill.