Staff at the North- East Soldiers Memorial Hospital learned yesterday that the 29-bed James Scott Wing may soon be operated by Presbyterian Care, which also runs the 32-bed Aminya North East Hostel on the same site.

The transfer is expected to result in more beds and extra investment of about $100,000.

Primary Health North manager Phil Morris assured staff in a memo that they would be offered employment with the new operator, which had approached the department.

"The practice of the state government- DHHS has been to avoid the provision of state-run residential aged care services wherever there has been another viable local provider," he said.

Health Minister Michelle O'Byrne said negotiations could take several months, and would not result in significant budget savings.

"There may eventually be some savings to the departmental budget but this amount cannot be quantified yet and in any case is not the focus of this proposal," she said.

Presbyterian Care chief executive Robin Philps said the organisation had wanted to expand in the region since taking over Aminya in May this year.

"It is very difficult for facilities with less than 60 beds to remain viable," he said.

"By bringing the 29 aged care beds at James Scott together with the now 32 beds at Aminya, the provision of aged care services in Scottsdale will have a strong future."

Some of the 50 staff are also employed in other areas of the hospital and Health and Community Services Union assistant secretary Tim Jacobson said the transition may not be a smooth one.

"This has a serious effect on all those staff and particularly the community, which have got a stake in all the services provided at the centre," he said.

Australian Nursing Federation state secretary Neroli Ellis expressed concerns about the lower wages traditionally offered to aged care workers, ahead of a meeting with members in Scottsdale today.