The state government has flagged a hospital in Berry may be repurposed once it finishes delivering medical services.
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The David Berry Hospital now only delivers palliative care and rehabilitation services, though that will end in the coming years as those are relocated to Shoalhaven Hospital as part of its $438 million upgrade.
The government has guaranteed those services will remain in Berry at least until the end of 2025.
But a lack of clarity about future plans for the hospital site has led independent MP Gareth Ward to question the Minns government's motives.
"Is David Berry Hospital next on the list of government land set for sell-off by the Minns Labor Government?," Mr Ward said.
"We know the NSW Government cut the palliative care budget last year; is this the reason for closing services at David Berry?
"I've been contacted by staff who have been told that services are being wound up at Berry Hospital but the community haven't been consulted. Where is the consultation with the community and staff for whom David Berry Hospital has very personal significance?"
A government spokesperson said the age of the hospital meant it was no long suitable for such a use.
"David Berry Hospital was built in 1906," the spokesperson said.
"The layout of the buildings is outdated and cannot accommodate contemporary clinical requirements. The David Berry Hospital site is governed by legislation and the Illawarra Shoalhaven Local Health District will ensure that future-use options for the site comply with the legislation."
The spokesperson said "extensive community and stakeholder consultation" would take place during the consideration of future uses of the site.
"Please note that consultation regarding future use of the David Berry Hospital site is separate, and in addition to, previous consultation which occurred with staff and the community regarding the relocation of clinical services to the expanded Shoalhaven Hospital campus," the spokeswoman said.