Negotiations are ongoing between LCP and the Nepean Blue Mountains Local Health District (NBMLHD) for a sustainable long-term arrangement to keep essential services to the region.

A report from Lithgow City Council General Manager, Craig Butler provided an update that indicated LCP isn't out of the woods while negotiations continue.

"In the abscence of an appropriate arrangement between the parties, some risk remains that the Lithgow community could suffer a loss or reduction of the specialist medical services provided by the Lithgow Community Private," The General manager's report said.

"Lithgow is not a Local Government Area that can endure any reduction in medical services."

Deputy Mayor, Cassandra Coleman said she is worried for the future of the facility after reading the report.

"It greatly concerns me that some risk remains. We still need to advocate for health services," Deputy Mayor, Cassandra Coleman said.

"Considering that our local population consists of one in four over the age of 65. Investing in our local health services has to be an absolute priority."

Councillor Deanna Goodsell also shared her concerns about the information shared in the report.

"I also found this report disappointing and disturbing that the parties have not yet reached an agreement to keep our current health services and continue to provide them into the future," Councillor Goodsell said.

During the monthly ordinary meeting held on January 23, it was revealed that LCP have requested funding to recoup some losses due to COVID-19 and the replacement of a lung function machine.

According to the General Manager's report, the request hasn't been granted at this stage.

At the meeting, the Council voted to continue its advocacy to the NSW Government to secure a future through a viable arrangement for LCP and NBMLHD.

The Council also voted for the community to be updated bi-monthly through media release.