The Whanganui District Health Board has announced that the Taihape will retain maternity services, despite the closure of the town's hospital beds following the drying up of health service funding. The DHB also reportedly accepted a proposal from midwives, which will see women continue giving birth in the central North Island town.

The Whanganui DHB will close home resident beds and four hospital beds. This will mean that 22 rest home residents will have to move. In addition, 60 employees are at risk of losing their jobs. One-third of them are nurses. The Service and food Workers Union estimates that the loss of 24 hospital services will put lives at risk.

The dramatic change in the town's healthcare landscape led to a 300-perosn protest on State Highway One, the town's main thoroughfare. The march, which took place on Friday, was intended to push officials into keeping the hospital open rather than transforming it into a day clinic.

The hospital will continue to provide day services for older people, home-based support services, primary maternity services, GP and other primary care services, radiology, specialist out-patient clinics, district nursing, palliative care and oral health. Meals-on-wheels, the community pharmacy and the mobile surgical bus will also be retained.

Judith MacDonald, Executive Officer at Whanganui Regional Primary Health Organisation, said: "We need to build a business case, and we're currently working on that. We expect everything to be in place in about two months' time."