A small Queensland town will blockade its hospital to prevent the state government from potentially mothballing it.

Residents of Moura, southwest of Gladstone, believe there are plans to close the 10-bed hospital, which has 34 staff.

Most of the town's 2500 residents will form a human wall around the hospital to foil a meeting between Queensland Health (QH) officials and staff on Wednesday, former state MP Jim Pearce says.

"The community is very angry about what's happened, they've been completely left out of the process," he told AAP.

"Everybody in town at the moment will be there.

"They'll stop them from getting in until the health board have the decency to consult them about this."

Health Minister Lawrence Springborg said there were no concrete plans yet and promised a community meeting next Thursday will discuss "the tough decisions facing the hospital".

"With the regards to Jim Pearce, he would be better calling on his federal friend (Treasurer) Wayne Swan to reinstate the $4.8 million that's just been ripped out of the central Queensland hospital budget unannounced," he said.

"Any final decision will rest with the health board, not the government."

QH did not return AAP's calls.

Banana Shire Council thinks the hospital's closure would be terrible for Moura, which has been through many natural disasters in recent years.

Mayor Maureen Clancy says she has received no confirmation about the closure but believes it's imminent.

"They're telling us it's not working to capacity," Ms Clancy told AAP.

"There's a whole raft of reasons for that, which can be changed with good management. Closure isn't a good outcome."