The Kerema hospital in the Papua New Guinea district of Gulf Province has closed.
The hospital closed this week due to acute water problems, sickness, and a lack of funds.
A senior medical official told the Post Courier that most of the staff had gone down with typhoid because of the long dry spell.
He said there had been no financial support to continue operations and to maintain hospital vehicles.
Chief executive, Robert Saleau, says the hospital was originally set up for temporary use, pending the construction of new premises by the National government.
Meanwhile the chief executive of the Wewak General Hospital, Dr Linda Tamsen, says the hospital is to be relocated away from the waterfront.
The hospital has received a cash grant of nearly 79-thousand US dollars from the Japanese government for refurbishments.