It is understood that hospital staff received a memo this week outlining the gradual shutdown as part of the hospital's cost-cutting measures.

Both wards 5A and 5B will be affected with beds closed as patients are discharged to achieve the targeted 20 beds by December 23.

The empty beds will be stored off-site and the unused patient rooms will be closed.

It is understood that the reduction in bed numbers will coincide with the LGH's traditional Christmas slowdown when the number of elective surgery operating theatres is reduced from six to four.

But the theatres will not reopen early next year.

At the same time ward 4D, which is to be closed permanently, will start its shutdown from December 16.

Only short-stay patients will be admitted and the last patients on 4D will be discharged by December 21.

This will allow staff to clean the ward and close it by December 23.

LGH chief executive John Kirwan told staff last week that the hospital would achieve the $28 million it had to save this financial year as part of the government's health cuts through a range of measures including:

Shutting two intensive care unit beds and cutting the number of children's ward beds to 17.

Reducing pathology and radiology after-hours service.

Cutting the Hospital-in-the-Home program.

Cutting back on attendants and orderlies hours and merging unit manager roles as well as shutting down the two elective surgery operating theatres, 20 surgical ward beds and ward 4D.