The organisation employs 140 staff across the entire region and has offices at Dubbo and Bathurst.

Funding contracts have been extended for at least 12 months and Western NSW Medicare Local CEO Dr Jenny Beange said she was confident no staff would lose their job.

However federal Health Minister Peter Dutton is doing little to provide reassurance. Yesterday he said an announcement on the future of Medicare Local was coming soon.

"We think there are some good Medicare Locals doing some good work," Mr Dutton said.

"What I'm determined to do is to make sure that we can get money back to doctors and nurses and away from health bureaucrats."

Dr Beange believes WNSW Medicare Local will survive into the future, although she admitted it may undergo some changes.

She confirmed all current funding contracts had been extended until at least June next year.

Dr Beange said core contracts have just been signed off by the government for a two-year period until June 2016 while all others had been renewed for 12 months.

"Until the budget is unveiled, everything that is coming out is speculation," Dr Beange explained.

"A lot of what has been said is not unexpected.

"We know there will more than likely be a name change, they will no longer be called Medicare Locals and we believe their will be a change of boundaries, we may be more aligned with Local Health Districts."

WNSW Medicare Local services a region with a population of 255,013 with almost 24,000 of those identifying themselves as Aboriginal.

Dr Beange said when Medicare Locals were set up, there was a strong emphasise on not duplicating services and identifying aspects of health delivery that could be improved and she believed it had provided an important service to Western NSW.

Indigenous health is an area that Dr Beange said WNSW Medicare Local had made a big difference.

"We have had enormous success with our Aboriginal Health programs, working with Aboriginal health providers and other programs, including with people with disabilities, setting up most providers with E-Health and introducing Telehealth.

"We provide mental health services to the most disadvantaged. Working closely with Local Health Districts, we have changed the system to better suit individuals and provide better care."

The Labor Party has jumped on speculation Medicare Local CEOs have been told they will be phased out to highlight a pre-election promise from Prime Minister Tony Abbott.

"For a no-surprises government Tony Abbott is certainly providing some pretty big surprises when it comes to health," Labor's health spokesperson Catherine King said.

"It would appear that we are in for a horror budget when it comes to the healthcare of Australians."