Four consultants say the morgue in the hospital they work in is so run down dead bodies are being stored on trolleys in corridors.
They say a lack of chilled storage at University Hospital Waterford has led to bodies decomposing, and bodily fluids leaking onto floors.
In a letter to hospital management seen by The Irish Times, the consultants explain that conditions mean some families have to have closed coffin funerals.
University Hospital Waterford says it has recently received approval to build a new morgue.
However, it is waiting on funding to be made available.
Matt Shanahan, from the Health Equality for the South East group, said:
"The whole thing is a health hazard, and the HSE have acknowledged this themselves".
He said the "situation is that you have got a huge capacity problem - it's as simple as that".
The Irish Patients Association is calling on the Taoiseach and Health Minister to apologise for the lack of dignity for patients and their families.
University Hospital Waterford says, until its new morgue is built, it will look at measures to address the issues raised.