The Maniototo Community Board received 194 submissions regarding the funding of the project in its draft annual plan consultation.
Of those, 77% favoured land sales as a way of funding a Central Otago District Council loan, with the shortfall made up by rates.
The option of funding the loan on rates alone was favoured by 18% of submitters.
The consultation document also asked whether submitters would prefer council contribute a $1million, $1.5million or $2million loan.
The $2million option was favoured by 64%, with 28% of submissions classed as ''not specified''.
The total cost of the project is estimated at $5.5million.
The plots of land in question are two farms in area the board own and lease out.
In his submission, Maniototo Health Services Ltd chairman Stuart Paterson said there was ''considerable local opinion'' the land was worth more than the estimated $1.4million.
Submitter Stewart McKnight favoured the land sale option, saying ''to sell an asset to provide a better one makes a lot of sense''.
Submitter Heather Dowling said she did not think the land should be sold as she understood its purpose was ''for young farmers who need help to get started''.
Of the submitters, 57% preferred the loan be paid off over 25 years, 12% chose 40 years and 30% did not specify.
The health company has $2.4million for the rebuild so far, $2million of which is from the company's reserves.
It learned this month it would not receive the $1million in government funding it hoped for.
The company plans to raise funds by the end of the year, and hopes construction can start early next year.
The project will combine the 15-bed Maniototo Hospital and the 16-bed Chalet retirement home, replacing the 80-year-old hospital building.
The move is also intended to cut costs and improve the efficiency of both operations.
The board will consider the submissions at its meeting on Tuesday.
