OBJECTIVES: The new act on developing of the Hungarian health care system – came into effect on the 1st of April 2007 cut the number of hospital beds significantly in Hungary and the National Institute of Psychiatry and Neurology (OPNI) was closed. The aim of our paper is to analyze the effect of the 2007 Hungarian health care reform on the number of psychiatric hospital beds. METHODS: Data were derived from the nationwide administrative dataset of the National Health Insurance Fund Administration (OEP), the only health care financing agency in Hungary. The number of both acute and chronic care hospital beds was evaluated before and after 1st of April 2007. RESULTS: The 2007 act on developing of the Hungarian health care system cut the total number of acute care hospital beds by 15.631 (26 %) from 59.846 to 44.215 (from 59,2 to 43,7 beds per 10000 inhabitants) and increased the total number of chronic care hospital beds by 7.069 (35 %) from 20.100 to 27.169. The number of acute psychiatric beds was reduced from 3.644 beds to 2.750 (-894 or -24,5% decrease). At the same time, the number of chronic care psychiatric beds was increased from 4.898 beds to 5.091 (193 or +3,9% increase). Altogether, 701 psychiatric beds were eliminated from the Hungarian health care system. CONCLUSIONS: Although the total number of chronic care hospital beds was increased by 35 % within the Hungarian health care reform in 2007, the Hungarian health care system lost 701 psychiatric care hospital beds without any reasonable consideration or explanation.