Hollins View, on Clarke Terrace, Macclesfield, currently offers 40 beds as respite and intermediary care for dementia sufferers and vulnerable adults.
Currently run by Cheshire East Council, it gives carers a break by taking on dementia patients for respite care, as well as looking after patients for a short period after are discharged from hospital.
But under the council’s proposals to privatise care, those services provided by Hollins View may be affected.
Coun Janet Clowes, Cheshire East Council cabinet member in charge of health and care in the community, said: “This council believes in putting residents first – and, above all, our concern and responsibility is to protect the welfare of our most vulnerable citizens, both young and old.
“Existing support must be continually reviewed to ensure we deliver the best way of meeting needs. This is the role of commissioning.
“As part of that continual review, the proposal is that dementia respite should be provided in the independent sector. This strategy, if confirmed after the scrutiny process is completed, may result in services at Hollins View being affected.
“However, the assessed social care needs of users and carers at Hollins View will continue to be met.”
Before any decision is made the council says it will hold a consultation with users and carers at the home.
Coun Laura Jeuda, who speaks for the labour group on health matters, said the home is a ‘vital’ service.
She said: “If this service was withdrawn, for whatever reason, it would cause severe hardship for the carers and those they care for.”
