Broken Hill’s Shorty O’Neil retirement village and hospice is currently run by the town’s council. However councillors are asking for expression of interest in running the village, subject to a vote at the next full meeting.
Broken Hill’s Mayor Wincen Cuy says outsourcing could save money.
"We believe there's a greater opportunity for the public and the community to get greater services and also we're hoping that it will be more cost effective for council to operate in that manner," he said.
The council has assured residents that there will be no immediate change, while the Town Employees Union secretary Ros Ferry is concerned the move will mean job losses.
"Staff wages are probably the most expensive of any employer, so naturally they would look to reduce wages," she said.
Southern cross Care has previously expressed an interest in Shorty O’Neil but won’t be putting in an offer if the current staff structure remains.
"My understanding of the terms and conditions that currently apply for the staff and Shorty O'Neil Village are unaffordable," said SCC’s chief executive Alan Carter.
