Bulli residents say parking around the town's hospital and urgent care centre has become "horrendous" over the past month, with hospital staff not using the shuttle service which allows them to park at Bulli showground.

Community campaigner Margaret Hutchinson said the relocation of the Illawarra's palliative care and rehabilitation wards has created significant congestion, with cars lining Hospital Road for hours each day.

'It's horrendous now," Ms Hutchinson, from the Old Bulli Hospital Community Group said."They're parking the full length almost now, which means some patients - even elderly people with not a lot of mobility - are having quite a long walk to get to the hospital."

The Illawarra Shoalhaven Local Health District set up the shuttle in early August in response to concerns about parking, as staffing numbers increase with Port Kembla hospital being decommissioned.

Under an agreement with Bulli Showground staff can be able to access up to 100 parking spaces, with the bus running to and from the hospital every 15 minutes between 6-8.30am and 3-4.45pm.

Ms Hutchinson said she and other community members had observed a maximum of five cars at any time parked at the showground to use the shuttle.

"We've just been checking on the odd day here and there, and some days the car park is completely empty," she said.

Acting General Manager of the Northern Illawarra Hospitals Group Barbara Crawford acknowledged the bus service was "still not operating at capacity".

"This is part of a 12-month trial to monitor usage, ensure that staff are finding it a useful and convenient way to get to work, and that it is having an impact on road congestion," she said.

"The District remains aware of the concerns raised by staff and the community in accessing parking on Hospital Road.

"We are providing regular updates and encouraging staff to utilise the free shuttle bus service option."

She said there were now about 120 members of staff now working from the expanded Bulli Hospital campus on weekdays including nursing, medical, allied health, facility support and administrative staff.

The Old Bulli Hospital Community Group will be hosting a meeting on their suburb's traffic and parking issues on August 30.

Ms Hutchinson said Heathcote MP Maryanne Stuart was expected to attend to give residents an update about her meeting earlier in August with NSW Planning Minister Paul Scully.

Ms Stuart wrote to Mr Scully in late July, drawing his attention to the issue with the hospital and highlighting the residents' proposed solution, which is to portion off a part of the old Bulli Hospital site for parking at the new hospital.

The group is calling on the new Labor Government to intervene in the upcoming development of the old hospital site to make sure parking is part of the plans.

They say the old hospital had about 110 off street car parking spaces for patients, visitors and staff, while the new larger one has 46 spaces.