The Lake of the Woods District Hospital in Kenora is in a crisis situation.
The designation was given last week by the North West Local Health Integration Network.
Hospital President and Chief Executive Officer Ray Racette says the number of beds they have is limited.
Racette says patients waiting for a long term care bed to open up are taking away as many as 20 beds at the hospital.
He adds the flu also limits the number of beds they have, because any room that has an influenza patient is considered under quarantine, even if there are two or three empty beds in it.
Racette says under the designation, any bed that opens up in a Kenora long term care home, goes to Lake of the Woods District Hospital, instead of other communities.