A restructure of The Wide Bay Health and Hospital Service on the Fraser Coast has put 220 jobs at risk, 70of them in the aged care sector.
The service announced it would ask for expressions of interest as they seek to privatise management of an in-home care service for the elderly.
This would affect 40 people on the Fraser Coast, and a similar number in Bundaberg.
The programme has kept elderly people in their homes through nursing care, home assistance and social support.
Adrian Pennington, chief executive of WBHHS, aims to concentrate their core business on hospital services by transferring the HACC service.
"It is important to reiterate that clients receiving HACC services currently will see little or no difference to the service they receive,” he said, adding that ongoing employment options will be made available to staff affected by the change.