A North Queensland MP is defending a local hospital against accusations of mismanagement by the state government. 

Minister for Health Yvette D'ath yesterday announced the North West Hospital and Health Service (NWHHS) board would have to defend its management of hospitals and services around Mt Isa. 

“The action I have taken today asks the board to show cause as to why they should not be dismissed and an administrator appointed," said Ms D'ath.

Traeger MP Robbie Katter says underfunding, rather than mismanagement, is the root cause of healthcare problems in regional areas.

"The chronic under-funding of dialysis services, lack of an in-patient mental health facility and doctor and nursing staff shortages have absolutely nothing to do with governance by the NWHHS and everything to do with decisions made by the Government," he said.  

"Further the NWHHS is one of the few, if not the only, Queensland health service that does not have full block funding, which means it relies on volume of population.

"I’m concerned that instead of simply funding the service properly, the Palaszczuk Labor Government is seeking to lay the blame for the myriad health problems faced in the North West at the feet of the board."