The Lodge is merging with Uniting NSW/ACT, but residents raised concerns at a public meeting on Wednesday night that the community might lose its 23 beds and never see its assets or money again.

Crookwell Taralga Aged Care (CTAC) director Garry Kadwell joined board members and Upper Lachlan Shire councillors Mandy McDonald and Nathan McDonald at the Taralga Community Hall on Wednesday, June 8 to discuss the plans.

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Mr Kadwell put the necessity of the merger down to financial difficulties arising due to increased expectations of aged care after the Royal Commission into Aged Care and COVID-19, saying the Lodge would have likely folded before the end of the year without a merger.

Mr Kadwell said it was one of the "hardest decisions" he has had to make, but described the merger with Uniting as a "blessing".

"Honestly, the wheels were starting to fall off and we're happy to have found this merger in time," Mr Kadwell said.

Mr Kadwell noted in particular that the new requirement to have a registered nurse on-site, 24/7 seven days a week, was unachievable in Taralga.

However, residents questioned how Uniting would be able to source a registered nurse for Sunset Lodge with the current nurse shortage, prompting concerns that the organisation may move the beds out of Taralga altogether.

"As soon as the church realises that the real estate value is worth more than the business, they will sell and take the money out of town," one resident said.

Mr Kadwell admitted there was no way to guarantee Uniting would continue to run the aged care facility in its current form in the future.

However, he said currently there was no intention of shutting down Sunset Lodge and the organisation had agreed to continue hiring locals and to use local suppliers.

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The Board acknowledged that "passion and care" were at the heart of aged care in Taralga, which was born from the community with many assets donated.

Mr Kadwell said the decision of who to merge with was made with careful consideration of whether their beliefs and values aligned with CTAC.

He believed as a faith-based not-for-profit Uniting was an excellent fit. Currently, the Board is negotiating with the organisation to try and get the best deal for the community.

Uniting will replace the CTAC Board and take over all assets. They will also purchase the five-acre block of land behind the residence for $475,000 with the money going to the Upper Lachlan Foundation, which is managed by a public trustee.

Mr Kadwell, who sits on the board of the Upper Lachlan Foundation, said through the trustee the money is continually reinvested into the community "forever".

Residents were concerned that by the time the money was reinvested in the community it would be spread "too thin".

Current Sunset Lodge employees attended the meeting concerned about current working conditions in which staff were working back to back shifts. They were hopeful the merger would improve conditions, provided their jobs were safe.

Local resident Adam Moloney suggested adding a clause into the contract that would ensure if Sunset Lodge ceased to be an aged care facility that it would be returned to the community.

The clause is currently sitting with Uniting Care's legal team for consideration.

Taralga residents have also requested Uniting Care host a community meeting to discuss the future of Sunset Lodge.

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