SLAIN psychiatric nurse Bob Fenwick has been hailed a hero after he stepped in to save a colleague in a stabbing attack that cost him his life.

Nurse Emily Pritchard's father Bob said last night that he believed Mr Fenwick saved his daughter's life.

"It's something I'll never be able to repay," Mr Pritchard said.

"Our family owes him a great debt of gratitude for what he's done."

Ms Pritchard, 20, was on duty at the Bloomfield Hospital in Orange on Wednesday afternoon when a patient entered the ward and allegedly attacked her.

Mr Fenwick, 63, rushed to help and was stabbed in the chest and arms. He died yesterday.

"The person was attacking her and Bob stepped in to assist and that's when the attack changed," Mr Pritchard, a former president of the NSW Police Association, claimed.

"He certainly stopped the attack on Emily and saved her life and unfortunately lost his own."

Mr Pritchard said the little finger on Emily's right hand was nearly severed in the attack but has been reconnected in surgery.

"He's gone to attack her face and neck and she's put her hand up and it has almost severed her little finger."

Mr Pritchard said his daughter - who was working as a relief nurse for a few months and was set to start as a full time nurse soon - was devastated over Mr Fenwick's death.

"She's just devastated for the family of Bob," Mr Pritchard said.

"It's a pretty hard time for her.

"She's realising how brave the other fellow was that assisted her."

Ms Pritchard is recovering at home with her family in Orange.

Matthew Peter Loughrey, 33, appeared in Orange Local Court yesterday charged with murder and attempted murder. Bail was refused.

Mr Fenwick, a married father, had dedicated his life to nursing and had worked at the hospital for six years.

Nurses Association western region organiser Linda Griffith said he was "passionate about mental health".

"He was very well-liked and respected," she said.

"He was the type of guy who would stand up and advocate for others."

It is the second violent attack on a nurse at a NSW mental health hospital in the past three months.

The Nurses' Association plans to look at the issue of safety at the hospital once a full investigation has been carried out.

"It's still unclear if anything could have been done better here to ensure these nurses were safer," acting general secretary Judith Kiejda said.