Lady Cilento Hospital has been renamed the Queensland Children's Hospital to clear up supposed confusion about whether it is a public or a private facility.

Queensland Health Minister Steven Miles made the announcement on Friday after 900 medical staff signed a petition asking for the original name to be stripped.

It also comes after several months of community consultation and a survey of thousands of parents that found they did not know it was a public hospital.

Mr Miles says the work of Lady Cilento, who was 93 when she died in 1987, will be honoured in another way but her son, Dr David Cilento, says the decision has destroyed her reputation.

"There is no worse way of permanently destroying a person's reputation than publicly expunging her name from a building," he told reporters.

"Every member of the family is absolutely appalled."

Premier Annastacia Palaszczuk says it is not about diminishing Lady Cilento's work as a pioneering clinician, but money.

"No one is saying that she shouldn't be honoured," Ms Palaszczuk said.

"It's just in terms of attracting that international research funding that people know that it is the public and premiere Queensland children's hospital."

Medical practitioners had raised concerns about the impact of the name on their involvement in international research projects.

The estimated cost of changing signage at the hospital is expected to be under $500,000, funded by the Department of Housing and Public Works.

Stationery and uniform changes will be implemented over time, as needed.

The Liberal National Party believes the cost will run over budget and says the move is a waste of taxpayer money.

Australian Associated Press