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More than 1,000 people have turned out to a community forum to protest against the South Australian Government's budget decision to cut funding for Keith and District Hospital.

The hospital says it is facing a 60 per cent cut to its state funding from next July.

Hospital board member Richard Vickery says residents spoke of the hospital's vital role in their community.

"People who had some very unfortunate farm accidents ... relayed that if Keith Hospital hadn't been here, their outcome or their sheer existence, if they had to go to hospital 50 or 100 kilometres further away, would have been substantially different," he said.

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