A three-month consultation on proposals for Keynsham Hospital, which include closing the facility and selling the site, is under way.
The plans centre on changes to rehabilitation services used by Bristol and Keynsham patients and respite care at the hospital.
If the proposals are approved, services at Keynsham will be relocated.
The hospital site itself will either be redeveloped for another health use or sold and the money returned to the NHS.
Health park plan
The plans would bring the rehabilitation beds for south Bristol together in one place - ultimately at the new hospital being developed in south Bristol.
In the meantime the Bristol beds at Keynsham would be moved into vacant space at Bristol General Hospital.
For the Keynsham people, the nine rehabilitation beds would be put into newly expanded capacity at Paulton Hospital and St Martin's Hospital.
People will also be offered the choice of Bristol General Hospital.
Bath and North East Somerset Primary Care Trust will also look at the feasibility of reproviding rehabilitation beds for Keynsham locally as part of the longer term planning to develop services in the town, including work to develop a health park for Keynsham.
Ron Kerr Chief Executive of United Bristol Heathcare Trust (UBHT) said: "The quality of the building's accommodation is very mixed and falls far short of modern requirements.
"It would cost around £4m to simply keep the building in use."