Eight beds at Albury Wodonga Health's children's ward have been closed as contact tracing is done to understand the fall-out of a staff member working in the ward while infectious.
Chief executive Michael Kalimnios said the issue arose overnight but it "wasn't a great impact" to the specialist service as yet.
"We're not experiencing any great pressure on paediatric services at the moment," he said.
"Once we've finished that (tracing) process, then we'll assess what are the challenges and issues for us, and there are many staff right across Albury Wodonga Health with multiple skill sets ... some of those will be appropriate to be redeployed into paediatrics."
Mr Kalimnios said an incident management team had been enacted at Albury Wodonga Health to manage the hospital's workforce and overall response.
"The modelling indicated that as various jurisdictions started to open up that there would be a surge of cases - we always anticipated this," he said.
"The incident management team is an internal emergency response group ... the major issues we're really focusing on at the moment are around workforce.
"We do need to look at now redeploying people from non-essential or non-critical service areas into areas like testing.
"Our biggest chance of improving our workforce isn't about getting people from Sydney or Melbourne, or from the Army or wherever else, it's actually about redeploying people from within Albury Wodonga Health into those clinics.
"We will have staff and we do already have staff that are furloughed, either because they're close contacts or secondary contacts."
Mr Kalimnios said Albury Wodonga Health would be in a position soon to tell the community which services might be wound back or adjusted.
"We're looking at those areas which we would classify as non-core or non-critical - those will be ramped down," he said.
"People should be aware that for a period probably for the next three to four weeks, those services will be limited.
"We obviously have very, very stringent protocols and processes in place at both our EDs ... we have had a couple of patients who have presented that have been positive and our processes have stoop up very well.
"So we haven't had to furlough any of our critical care staff ... but if we do have a an unexpected exposure, it can cripple services.
"We saw that happen in Goulburn Valley, where at one stage they had over 500 staff that they had to furlough and that had significant impacts on their ability to continue to deliver services.
"We're doing everything we can to avoid that."
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Mr Kalimnios said the health service was "now in a emergency response mode".
"We're now looking at what staff we need to bring to bear to make sure that we're adequately responding to the outbreaks that we have in our region," he said.
"There's a lot of issues on both sides of the border about people accessing testing clinics, we're really hoping from an Albury Wodonga Health point of view, that we'll be able to stand up an extra clinic and extend hours from tomorrow, we're sourcing staff ... to be able to do that."