A paper proposing a new model of health care for Queenstown is expected to go out for community consultation after consideration by the Southland District Health Board next week.
Chief executive Brian Rousseau said the paper, which had not yet been released, provided "an interesting approach to how we can ensure sustainability in the rural area".
The report is the next step in the boards' hospital capacity review, in which consultant Cranleigh Health has been analysing rural hospitals and looking at ways to provide care in future.
Mr Rousseau said a generic model was being prepared for the rural areas which was able to be refined to suit the various communities.
The paper would show how it could be refined to suit the "unique aspects of Queenstown".
In its initial report, Cranleigh found rural hospital bed numbers were adequate until 2026 and could be reduced by treating more people in the community.
The report said increases in spending at Lakes District Hospital in Queenstown could not be sustained.
The hospital posted a $3.6 million deficit last year and is forecasting a $2.8 million loss this year.
Late last year, the Southland board reluctantly agreed to spend an estimated extra $300,000 to hire more staff for the hospital until June.
In the meantime, the alternative model of care would be developed.
While no details of the proposed model have yet been released, it seems likely to concentrate on integration of care.
The initial Cranleigh report was critical of the separation between community and hospital care which it said was not sensible, increased costs and was often a barrier to better care.
It suggested there was the opportunity to consider integrated care models in Queenstown, Gore, Oamaru, Balclutha and Ranfurly.
Such a model would involve all health professionals and health related organisations and local authorities working together on health promotion, health care, housing and employment and possibly using public/community/private partnerships.
The report noted that transition to such a model would not be easy or quick to implement and would challenge accepted norms.
Mr Rousseau said the boards would be examining hospital services in Oamaru, Dunstan, Gore, Ranfurly and Balclutha later, to review their services and establish whether change was necessary.
It had not yet been decided which would follow Queenstown.
That would require discussion with their relevant governing bodies.
"Some may require no or very little change, while others may require more significant change to ensure clinical and financial stability."
