The council was investigating a joint private and public venture to build a multipurpose medical facility in Young.

The former Young Shire Council formed a community-based working group in 2014 to gauge support for a local medical facility.

Former Young Shire Council Mayor Stuart Freudenstein said the aim of the hub was to attract new doctors and other health professionals to Young to address the shortage of doctors locally.

Based on this funds were acquired as a show of faith and intent to be part of the project and have since been held in trust by council.

The council decided at this month's meeting to return funds held in that trust to parties who were interested in a partnership between the council and private investors.

Local Doctor Tom Douch said the council’s decision was disappointing.

"The decision had been made to fund a new medical centre pre-amalgamation to the tune of about $8 million dollars," he said.

"What this means is that the council is now leaving the problem of a shortage of doctor numbers to private interests to solve, they must believe that they have no role to play in sorting out this dilemma which is baffling.

"We must remember that any solution to the doctor shortage in Young must not only be GP's but doctors who service our two hospitals and nursing homes and get involved in the fabric of the community."

Hilltops Council’s general manager Anthony McMahon said since 2014 all applications for Government funding to assist in the Health Care Hub's development were unsuccessful.

"However, there has been interest from private enterprise to establish facilities that have the potential to address the shortage of GP’s in Young in the medium to long term," he said.

"Whilst assisting with the recruitment of medical practitioners and other health workers is a priority of the new council we will not continue to enter into a public - private partnership to build a physical space for a medical centre when there are indications that private enterprise is likely to invest in the space."