Labour's health spokeswoman, Annette King, said the caterer Compass was the preferred provider for a 15-year contract, and would prepare food in Christchurch and Auckland to be transported around the country.
The proposal would mean kitchens such as Dunedin's would be downgraded to a reheating facility, she said.
It was risky centralising food preparation to just two centres with a single provider, she said. Food was best sourced locally, and presented fresh to patients. Health Minister Tony Ryall said the outsourcing could save more than $10 million a year, although he rejected claims 50 kitchens would close.
''I am told the consultation could see two or more major new kitchens providing food services across the country. That would result in a number of other hospital kitchens being downsized, but [Health Benefits Ltd] says food quality would be maintained and improved.
''It is early days. HBL is still consulting with the unions and a business case is expected to be completed in the next six months or so, but implementation would take longer,'' Mr Ryall said.
The proposal includes meals on wheels food.
Dunedin prepares much of the hospital food for Otago and Southland. Its kitchen was upgraded at a cost of almost $1 million a few years ago.
The Southern District Health Board refused to comment yesterday. Service and Food Workers Union national secretary John Ryall said he had ''major concerns'' for patients if food was transported over long distances.
While concerned about members' jobs, his biggest worry was patients.
''The biggest issue for us is really the risk to district health boards and the patients in public hospitals by putting all your eggs in one basket,'' he said.
John Ryall said there was considerable risk in over-centralising food provision, as witnessed in the 1990s when much bulk outsourcing took place.
Then, food in many areas was cooked and chilled and taken in refrigerated trucks long distance, leading to food quality problems. When one company collapsed, a group of health authorities was left in a ''mess'' in terms of their food services, he said. He believed there should be a ''public debate'' before a final decision.
''This does affect the care that people get in the public hospital system.''
At present, hospital food comes via a mix of the private sector and health boards, with health boards still providing about a third.
In the South, food services are provided in-house by the board.
The 1200 food workers spread between health boards and private providers had the same pay and conditions. This meant parity between the public and private sectors, and while the workers were relatively low-paid, they enjoyed the same allowances and benefits as other health board employees. John Ryall feared that if all the work was outsourced, workers would face reduced pay and conditions.
The matter is likely to be discussed by the health board today behind closed doors in Queenstown; ''HBL update'' appears as an item on its agenda.
