Taihape's Ruanui Hospital Trust is due to close, and was appointed a liquidator last week by the directors of Otaihape Health Limited. Officials cited a lack of public funding as the reason for its voluntary liquidation. The hospital is funded by the Whanganui District Health Board, which expressed satisfaction with the liquidation as it is no longer able to provide more money for the facility without taking funds from other services in the region.

Taihape residents have not reacted quite as well, however. They recently staged a protest march on State Highway 1, with residents expressing their extreme disappointment and anger at the decision. The New Zealand Nurses Organisation (NZNO) also voiced disapproval, adding that the closure will force at least 20 Taihape families to find care for their loved ones outside the town. The closest aged-care facilities are at least one hour away by car.

Health service staff had agreed to a 6% pay cut to help ease pressure on finances, and even proposed a buy-out, but this was rejected by the DHB.

"The trust has provided a quality cradle-to-the-grave health service for the people of Taihape and the surrounding districts. NZNO cannot understand why the Minister of Health, Tony Ryall, local MP Simon Power and the Government are allowing this situation to occur, when it is at such odds with their professed commitment to better, sooner more convenient health care."

The staff and community members are preparing a petition, which they will present to Parliament early next week.