Maniototo Health Services Ltd (MHSL) manager Geoff Foster said a MHSL director had been investigating the idea, which had been suggested as a possible use for the building after the new hospital was built.
But no decisions had been made yet, and MHSL would continue seeking community input about it.
The 1929 building has a Heritage New Zealand category two classification, as a ``place of historical or cultural significance or value''.
Mr Foster said MHSL would ``love to'' see the building repurposed and continue to be used, but if it remained vacant it might need to be demolished.
``At the end of the day we'll have to do what has to be done. The one thing we do recognise is if it's not usable we can't leave it because it would become derelict, and we can't allow that to happen.''
It could cost about $500,000 to demolish the building.
Another suggestion previously made at a community meeting was to turn the building into a tourism venture by making it the home of the Eden Hore fashion collection.
Mr Foster said MHSL proposed to retain ownership of other buildings and land around the hospital.
