This comes after eight patients and two staff members from the hospital tested positive to COVID-19 , with the situation described as a 'managed outbreak' by Public Health on Wednesday.

The cases are linked to a medical ward.

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State Health Commander Kathrine Morgan-Wicks said this decision to move the hospital to another level of its escalation plan would allow the hospital to continue delivering its core functions, while managing its outbreak.

"This escalation will mean that the North West Regional Hospital and MCH are both operating at COVID-19 escalation level three," Ms Morgan-Wicks said.

"This escalation only applies to the NWRH and MCH sites."

Under level-three conditions there will be a reduction in outpatient activity with services moved to telehealth where possible over the coming days. Surgical services will also be reviewed.

"The MCH will aim to continue same-day surgery and endoscopy and will review overnight elective surgical cases on a case-by-case basis," she said.

"Emergency department activity will be reviewed to maximise access."

Staff at the hospital will be asked to reconsider leave arrangements and all non-critical meetings will be cancelled.

At this stage current visitation rules at the hospital remain unchanged. One ward remains closed to the public in response to the current COVID-19 outbreak.

Ms Morgan-Wicks said while she understood these changes could cause concern among staff and the community, she was confident "that as a workforce, (the THS) will again meet the challenges that this pandemic presents".

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"We reassure staff that there are many challenges that we have faced before and will continue to face in the future.

"Should you have any concerns, please raise these through your line managers.

"As State Health Commander, I would like to acknowledge the efforts and dedication of all our hardworking Tasmanian Health Service staff."

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