Wantage Hospital is to close half its beds and its minor casualty unit because of a staffing crisis.
Twelve beds could shut by the end of the year if recruitment does not improve.
South West Oxfordshire Primary Care Trust has pleaded for any registered nurses interested in working at the hospital to come forward.
Janet Grant, PCT director of clinical services, said: "Wantage Community Hospital provides a valuable resource for patients in the area.
"It makes sure that people who cannot be nursed at home, but who do not need the care of an acute hospital, can be looked after in an appropriate environ- ment. Losing these beds is a blow to the area.
"We also regret having to close our minor casualty service, although we are confident that people will not mind seeking treatment elsewhere until we manage to replace our staff."
The minor casualty service is provided by ward-based nurses and treats up to 50 people a week.
Wantage mayor Peter Kent said: "I'm very concerned about the closures, particularly in view of the fight we had to make to avoid closures in the past. We just hope it is going to be very temporary."
Wantage councillor Jenny Hannaby said: "It is a vital service for the town and it's disappointing that the staffing problem was not foreseen earlier."
The PCT stressed that the bed closures were a temporary measure and that beds would be re-opened once staff were found.
No patients in the hospital will be sent home until they are ready to be moved.
Campaigners fought bitterly to save Wantage Hospital beds under threat in 1999 and some still fear the community hospital could be moved to the new health centre being built at Mably Way.
The chairman of the hospital's League of Friends, Colin Wilkins, said they were obviously disappointed with the closures and added: "We hope this is not the thin end of the wedge and that it is only temporary as we've been told.
"But we can't do much about the situation if they haven't got the staff -- it's a matter of patient safety."
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