A health service in Taihape is 10 days from declaring itself broke. Otaihape Health Trust has lost $1 million in two years.
A consultant recommends that Whanganui District Health Board reduce its rent by $150,000 and Otaihape Health reduce its management costs by $85,000.
Other cost-cutting recommendations are $200,000 from rest home wages, including a pay cut of 30% for about 20 nurses.
Otaihape Trust chairman Jock Stratton says employees have 10 days to agree.
The Nurses Organisation wants the Government to install a statutory manager.