Auckland District Health Board has terminated its contract with Belhaven rest home in Epsom, following allegations that a former staff member taped a resident's mouth shut.
The alleged abuse happened nearly two weeks ago and a staff member was dismissed soon after.
The DHB says its decision to terminate the contract is based on the preliminary findings of the Ministry of Health's investigations and recommendations from a temporary manager appointed last week.
The board says significant concerns remain over Belhaven's clinical management and remedial action would be complex and take a long time.
The DHB says Belhaven does not meet the required standards of care. The news was broken to the 10 remaining residents and their families on Thursday morning.
The health board is discussing long term residential options with them, but all are expected to leave the home in by Friday afternoon.
No one from the home has been available for comment.