The Weddin Health Council has expressed deep disappointment after no funding has been allocated in the next financial year for the long-awaited redevelopment of Grenfell's Multi-Purpose Health Service (MPS), despite ongoing advocacy stretching back almost a decade.

Health Council chair Peter Moffitt said the community is growing frustrated with repeated delays and feel they are not being heard by decision-makers.

"We've been pushing for this since 2017 and feel like we're bashing our heads against a brick wall," Mr Moffitt said.

"We just feel that we're not being listened to."

The project requires funding support from both the NSW and Federal governments, with neither level of government able to proceed independently.

Mr Moffitt said the council would now seek further support from local representatives including Cootamundra MP Steph Cooke and Riverina MP Michael McCormack, in an effort to secure funding sooner rather than waiting another 12 months.

"We don't want to wait another year," he said.

A major concern for the community is the future of nine aged-care bed licences awarded to Grenfell around 12 months ago.

Mr Moffitt said there were concerns the licences could expire within two years if new facilities were not built to accommodate them.

"We've got the licences but we haven't got the bricks and mortar to build around them," he said.

"If those licences were taken away, it'll be disastrous. That has to be avoided at all costs."

The council recently completed its own updated Clinical Services Plan which has been submitted to both state and federal health departments.

The document outlines the healthcare needs of the Weddin Shire and aims to strengthen the case for redevelopment.

Mr Moffitt said while the shire's overall population may be declining, the number of residents aged over 65 is expected to increase by about 30 per cent, creating greater demand for aged care services.

"It's an ageing population and there's going to be more need for aged-care facilities," he said.

The redevelopment being sought extends beyond aged-care beds.

Mr Moffitt said previous planning identified the need for a broader hospital upgrade, including community health facilities and other healthcare services.

"A major redevelopment is required, not only of the MPS side but also across the board," he said.

The condition of existing community health facilities was another source of frustration.

"Our community health facilities are a disgrace," Mr Moffitt said.

"The staff working there and the facilities the community has to use are not up to the standards they should be."

The Health Council is also considering how best to use the $3.3 million bequest received from the late Kath Bandy Estate.

While the funding could help provide accommodation for nurses, doctors and other visiting health professionals the council is reluctant to commit to construction plans until broader redevelopment are confirmed.

One of Grenfell's biggest challenges is attracting and retaining healthcare workers due to a lack of suitable accommodation.

"If we're going to bring nurses, doctors and allied health professionals to town, they need somewhere to live," Mr Moffitt said.

The shortage of local aged-care places is already having wider impacts on the community.

Mr Moffitt said some elderly residents have been forced to move to facilities in Forbes, Parkes and Cowra, away from family and friends.

"It means loved ones have to travel to visit them, and there's a knock-on effect," he said.

"People do their shopping and spend money in those towns while they're there, so it has a commercial impact on Grenfell as well."

Mr Moffitt, who has chaired the Weddin Health Council since its formation and was involved in the opening of the Grenfell MPS in 2001, said the council remained committed to achieving better health outcomes for the community despite the setbacks.

"The Health Council is very active, but it just feels a bit unloved at the moment," he said.

"We know there's only so much money to go around, but healthcare is what keeps people in town. It's vital for the future of our community," Mr Moffitt added.