Northern Area Health Service chief executive John Kirwan told a parliamentary inquiry investigating the impact of health budget cuts that patients needed to be realistic about their chances of an operation.

The state government has reduced spending on elective surgery by $60 million over three years.

Mr Kirwan said the hospital was assessing the extra delays patients on the elective surgery waiting list could now expect.

He said he would prefer the waiting lists to be published so patients and doctors could be kept up to date.

"I just think that's a far more open and transparent way," Mr Kirwan said.

"Then they can plan their life around it. What they don't like is when you say one year and mean three."

The LGH will close two theatres and a 24-bed medical ward to cut $28 million from its budget this year.

Mr Kirwan said there was no doubt it would have a negative impact.

"We will see an increase in ED (emergency department) presentations. We will see people deteriorate on the waiting list."

He said it was also unclear how long the elective surgery slowdown would last, but the hospital was working on alternative savings measures.

"It's not something we can continue on forever. The risk is too high."

The Health and Human Services acting deputy Greg Johannes told the Legislative Council about $92 million of the savings measures were on track, but $8 million worth of savings were "at risk".

The department has spent $2.5 million in payouts for 127 people who have taken either voluntary redundancies or an incentive to retire early.