Watford and Three Rivers Primary Care Trust is holding a public consultation over plans to close St Julian's ward.
The 22-bed ward mainly treats patients from Hemel Hempstead who need in-patient mental health facilities.
The consultation concludes on 3 May and public meetings are being held throughout April to inform local people about the proposals.
The health trust said that closing the ward would free up funds to treat more serious cases and would allow more patients to be cared for in the community.
Over one third of the money saved could be ploughed into community care.
The trust also admitted that full psychiatric services would no longer be available for all patients who currently received them if the ward closed.
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