Health managers have unveiled plans to change the way a Lincolnshire hospital is run.
Officials have proposed to transfer control of Louth Hospital from the United Lincolnshire Hospitals NHS Trust over to local GPs.
The move, part of plans to reduce Lincolnshire's NHS debt would mean some operations and emergency cases would have to be moved to other hospitals.
Proposers say it would improve services and cut waiting times for patients.
Dr Yvonne Owen, who sits on the board which would oversee the new facility, said: "What's happened over the last six to nine months is all of the East Lindsey GPs have joined together and identified Louth as an ideal central location for healthcare services.
"We are working closely with the trust to make sure that the hospital does continue to provide healthcare but in a way that is particularly designed to give the best possible service to the local people."
But Councillor Jeremy Webb, leader of East Lindsey District Council has demanded more reassurances about the future of hospital services in Louth.
He said: "It is potentially good news they're not talking about closing the facility, so we have to take some heart from that.
"However, I don't like the way we're being fed snippets of information about the future of healthcare in East Lindsey.
"We need the full picture."
NHS managers are due to meet staff on Wednesday over the future of other health services in Lincolnshire.
They are expected to outline the latest position of a turnaround plan, which was due to be revealed on Wednesday but has been delayed until next month.
Unison has warned that plans to tackle chronic overspending problems, could involve many redundancies.