The protest was held one week after about 2000 people marched in Westport to protest health cuts, including ongoing closures of the Westport health facility, and the change to a phoneline after-hours GP service from last week.
Local woman Moira Lockington estimated more than 200 people had turned out again in Reefton to hold hands.
"We got right around the hospital. It was amazing."
Organiser Trish Saunders said they used scarves, making it a very colourful protest.
A big part of the event was to support the Buller Declaration, launched a week ago in Westport and which is now travelling the country calling for urgent action to address the national health crisis.
"What we want still is relatively small in the scheme of things - Zimam House, palliative care room and respite, and our medical centre. The buildings are all in great condition."
They also wanted to support the declaration, she said, noting the groundswell of public opinion nationwide.
"We are really advocating for the country."
Helen Bollinger, who helped lead the fight to retain the Ziman House rest home in Greymouth, said the Hands Around the Hospital in 1988 had cut through the hospital precinct, just as they did again at the weekend, to link hands.
"It felt naughty but nice to be standing on Reefton hospital grounds."
Reefton Hospital Action Group's objectives to regain the town's old age, palliative and respite care still held, Mrs Bollinger said.
"It is reassuring that the baton of protest has been uplifted by the next wave of energetic idealists. Before today, we were somewhat dispirited by two years of fruitless negotiation with Whatu Ora health bureaucrats and a local politician.
"We were so naïve."
People can sign the Buller Declaration outside Super Value on Monday, outside the Reefton Gallery and Broadway Tearooms on Tuesday, and the rest of the week back at Super Value.
It will also be taken to Greymouth and Hokitika, dates to be advised.
