A federal funding shortfall has been blamed for a decision to axe more than 200 health jobs in the Cairns region.
But the federal government says Queensland Premier Campbell Newman is behind cuts to individual health services.
Cairns and Hinterland Hospital and Health Service announced on Monday that 234 staff would be axed.
Local health board chairman Bob Norman says up to 190 permanent staff will be offered redundancies as part of an administrative restructure.
Another 44 temporary workers will also go.
He told ABC Radio that frontline staff won't be affected, although a Cairns and Hinterland Hospital and Health Service spokeswoman later told AAP that 41 nursing staff would be axed.
Mr Norman says a $6 million shortfall in federal funding is largely to blame.
However, Federal Minister for Health Tanya Plibersek says health funding in Queensland will increase by 21 per cent, or $600 million, over the next four years.
"Any reduction in funding to individual health services is a decision of the Newman government," she said.
It was the state government, not the commonwealth, which distributed money to local hospitals, Ms Plibersek said.
Queensland Health Minister Lawrence Springborg said every state health minister agreed that the federal government had cut health funding.
He said the Queensland government had increased health funding to the Cairns and Hinterland Hospital and Health Service by $40 million in the 2012-13 budget.
Cape York Hospital has also invited staff to apply for voluntary redundancies.
While chief executive officer Susan Turner could not pinpoint how many positions would go, she said no frontline services would be affected.
However, Ms Turner said a federal funding cut of $851,000 equalled the loss of about seven full-time positions.