Declining births and a shortage of obstetricians has seen Kyneton District Health suspend its labour and birth services.
In 2018-19, Kyneton hospital delivered just 26 babies and the health service said there had been a steady decline in births.
Only women with low-risk pregnancies are able to give birth at the hospital and about 50 per cent are transferred to other hospitals due to their or their baby's health.
One of the hospital's two obstetricians also recently resigned.
The suspension of birth care will come into force from September 30.
Women booked to give birth at the hospital will be transferred to other health services in the surrounding area, including Castlemaine and Bendigo.
Pregnancy and postnatal care will continue.
"Women will be supported to return to KDH as soon as possible following birth and to have our staff provide support and care prior to returning home," the health service said in a statement.
"Local women may still be able to receive pregnancy care at KDH under the care of midwives in an antenatal clinic, with obstetrician oversight coming from the hospital where they are booked to birth."
Kyneton District Health chief executive officer Maree Cuddihy said the staff were disappointed they had to make the decision to suspend labour and birth services, but they had to do it in the interests of the patients.
However, Ms Cuddihy said Kyneton District Health had not "closed the door" on ever providing birth services again.
She said the move to suspend such care was made in response to a shorter-term issue and the health service would possibly consider again offering birth care in the future if the situation changed.
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