Israeli tanks have allegedly shelled the third floor of the hospital which housed an intensive care unit and operating theatres also injuring "dozens", health ministry spokesman Ashraf al-Qudra said.
He added that 30 of the wounded were staff at the hospital. Medical Aid for Palestinians confirmed the attack:
Palestinian officials have called on the Red Cross to help evacuate patients.
Live footage on al-Aqsa TV station showed wounded being moved on gurneys into the emergency department. A doctor at the hospital told the Hamas TV station the hospital was still being shelled.
The bombing came after the Israeli Defence Forces (IDF) claimed photographic proof of rockets being fired from another hospital, Wa'afa, which was hit by airstrike last week.
The development came after Israeli prime minister Benjamin Netanyahu signalled that the offensive against Gaza "will be expanded until the goal is achieved - restoring quiet to the citizens of Israel for a long period of time".