The protest marked the latest in a string of incidents surrounding Portland District Health in recent months.

About 100 people marched to the hospital on Friday demanding action.

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Leading the protest was former PDH chair Mike Noske, Andrew Levings and current PDH doctor Peter Reid.

Mr Noske was chair of the board from 2013 to 2015 and believed the service had deteriorated since the all-local board was replaced largely with members from out of town at the direction of the Victorian Health Minister Martin Foley.

"What we want to see happen is what should have happened years ago," Mr Noske said. "The budget that this hospital is assessed against each year is based on a 20-year-old health delivery model so out of date and so inappropriate for this hospital it's not funny.

"Every year the department looks at it and sees PDH needs more funding, but the budget they set for it is just not right.

"I'm looking for, and what I think the community is looking for, is for the government to fund the hospital properly so we can have the health services we need here and so people can be treated for normal things in Portland.

"By all means if you have a severe injury or sever illness you should go to a specialist hospital. But normal things - births, basic orthopedics, basic medical issues, you should be able to get services here but the way this hospital is going you won't be."

The current board chair Peter Matthews declined to meet with the protesters.

Speaking to The Standard from the hospital board room, Mr Matthews said funding shortages were not an issue unique to Portland.

"Every hospital in Victoria would love an increase of 20 to 25 per cent on its budget," Mr Matthews said. "If you doubled our budget, we would spend it constructively, if you tripled it, we would spend it constructively.

"We as a public service are bound by what we get and we have to spend as efficiently as we possibly can to provide the best services for the community."

Mr Matthews said he supported the release of the Hillis report to the public, but declined to reveal how many locums were currently employed at the hospital, and at what cost.

"I understand the general issue but we do have a community advisory committee, which is made up of locals, and we do work with them," he said.

"That is, in fact, the most influential way to have locals involved, in my view."

The hospital has set up an online portal for locals to ask questions of the board.

On the issue of advertising for jobs, Mr Matthews said the board was beholden to the state government.

"We need to get specific permission from the department to fill certain positions - we have to present the case. A third anesthetist is not one that has yet been approved for us to advertise. Simple as that."

Joining the protest were long-term Portland residents Ron Grant and Norm Perkins.

Both had relied upon the service in the past and want to see healthcare preserved in the industrial regional city.

"I was born in the bluestone hospital, I watched them build the new hospital and I've had a long association with it," Mr Perkins said.

"We want to see the locals back on the board and our chief executive Christine Giles back."

PDH chief executive Christine Giles is currently on leave due to bullying and harassment claims.

Mr Matthews refused to comment on the future of her tenure.

Member for South West Coast Roma Britnell attended the protest and said she would help organise another gathering next month.

Though not a federal issue, when asked if her federal counterpart Dan Tehan would attend, she said "absolutely".

Member for Western Victoria Gayle Tierney was contacted for comment.

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