Minister for Health and Ambulance Services Yvette D'Ath has issued a show cause notice to the North West Hospital and Health Service (NWHHS) Board.
All 16 Hospital and Health Services (HHS) in Queensland are governed by a Board. Each Board reports to the Minister of Health, and each Board in turn appoints a HHS Chief Executive.
Board responsibilities include the management of health service finances, land, buildings and staff.
Ms D'Ath said concerns had been raised around governance and financial management at NWHHS.
"The action I have taken today asks the Board to show cause as to why they should not be dismissed and an Administrator appointed," Ms D'Ath said.
"Ensuring the delivery of sustainable health services to the North West Queensland community is a priority."
The NWHHS services a population of around 32,000 people in north western Queensland and the Gulf of Carpentaria.
The Minister also acknowledged the work of Mr Paul Woodhouse, the inaugural Chair of the North West HHS Board, who is retiring after ten years' service.
