The Hawke's Bay District Health Board (DHB) says it will not be outsourcing food services to international catering company Compass Group.
Under a plan put forward by government agency Health Benefits Limited, DHBs throughout the country have been signing up with Compass.
The Hawke's Bay board's chairman, Kevin Atkinson, said the region's Clinical Council, Consumer Council and Maori Relationship Board did not support the business case for outsourcing food services and the DHB has heeded that advice.
He said it believed there would be marginal financial benefit from the move.
Mr Atkinson said smaller food suppliers would have to close their doors and lay off staff if outsourced food was adopted, and the board would not support that.