It was a particularly sombre atmosphere at the Mossman District Hospital this morning as staff face an uncertain future in the wake of the announcement regarding the restructure of Cairns and Hinterland Hospital and Health Service (CHHHS).

CHHHS claims the restructure, dubbed 'Redesigning from the Inside Out,' will "see more health professionals returning to frontline duties and administration costs drastically reduced."

Staff and unions were informed of the restructure during the week, but as of this morning staff were still unaware just how the changes will affect their jobs. The CHHHS deadline for contacting affected staff ends tonight.

CHHHS Board chair Bob Norman said the Board had approved the restructure following a reduction in government funding to the health service.

“We were already looking to where we could make substantial savings when it was announced late last year that we were going to lose an additional $6.5 million from our budget this financial year. We knew we were going to have to make some serious changes,” he said.

Mr Norman said the CHHHS workforce would have to be reduced by up to 190 permanent positions by the end of this financial year plus 44 temporary employees out of a total workforce of 3,709.

Mr Norman claimed patients will not be adversely affected by the restructure.

“While I deeply regret having to reduce the workforce size, I’m hopeful that making these reductions will mean there will be a level of certainty for everyone employed within the CHHHS,” he said.

A voluntary redundancy package will be put forward, while staff can also apply for some positions left vacant by the restructure.

“It’s important that we refocus our resources into our core business which is delivering a range of health care services for our communities," Mr Norman said.

Caroline Wagner, Executive Director of People and Culture, Cairns and Hinterland Hospital and Health Service said affected staff will receive support.

"We are working hard to ensure that we support our staff in every way possible. Over the next two weeks, People and Culture will be running a series of workshops for affected staff covering managing change, resume writing, job application writing and interview skills."

A clearly angry Julia Leu, chair of the Mossman Hospital Community Advisory Network, told Radio Port Douglas this morning the impact on the local community will be significant.

"I've been told it actually affects about 350 people. It's about 260 across the region which is effective full-time equivalents, but in actual fact because a number of people are part-time it's more than 350 or 360 people.

"Unfortunately, of course, this also affects our wonderful staff at the Mossman Hospital, and I've been told a number of long-standing, vital positions have been told in a particularly brutal way that their jobs are gone.

"Late yesterday it was described to me like a car crash.

"This will affect vital services, because much of it affects programs that have taken some years to develop...In a remote area we absolutely depend on our local hospital services.

Ms Leu said the Mossman Hospital Community Advisory Network were given no advance warning of the decision.

"What I've been told is the way this has been done is particularly brutal. Even people who have also lost their jobs have been asked to deliver these phone calls as well.

"These are people that go way beyond the call of duty, they do a lot of unpaid overtime. They are the people who care so much for our community and are the sort of people we rely on when we're under distress or are unfortunate to have an accident or a health problem.

"The way it has been done has been absolutely shocking.

"I don't buy the whole thing that it doesn't affect frontline services and I will be watching very carefully to see how this unfolds, and I am particularly distressed that people we know and love have been affected. It's a shocking thing for them to have to deal with."

Ms Leu also commented on the economic impact of job cuts as families weigh up their future, and are potentially forced to look outside the region for work.

The restructure is expected to be completed by 31 March 2013.