Cranford Hospice is on the hunt for a new home and wants to include the community before a final decision is made.
A report by Turley and Co property consultants revealed that the age, construction and location of the hospice's current site on Knight St limited the opportunity for further growth, expansion and modernisation.
Cranford Hospice CEO Janice Byford-Jones said while it continued to provide a quality service for Hawke's Bay, management needed to consider the building implications and location as the service changed and grew.
"We started three decades ago with a handful of volunteers and now we have about 75 paid staff, 400 volunteers and every year we care for about 750 patients and their families."
She said the current site limited things such as private bathrooms and sufficient quiet spaces.
In addition, the recent palliative care review undertaken by the Hawke's Bay District Health Board highlighted the need to continue to attract the best people and keep up to date with best practice in the growing and dynamic area of palliative care.
Cranford Hospice Foundation chair and patron John Buck said this decision to find a new site was significant.
"That's why, before leaping to any conclusions about a new home, we felt it was imperative to have an independent assessment of alternatives to the current hospice site."
"Regardless of the site there will need to be a significant fundraising component so it is critical that locals are on board with our decision,"Mr Buck said.
Chair of the Cranford Hospice Trust Hayley Anderson said it was vital that the community had a say and felt informed on any proposed next steps, so a round of community consultation would take place before any final decision was made.
"We are a community service reliant on the generosity and support of the people of Hawke's Bay. We will always respect that and always consider seriously the needs and requirements of the people who keep us going."
Ms Anderson said It was both a privilege and a responsibility to be trusted and respected as a much-loved asset to our Hawke's Bay community.
The business case is being funded two thirds by the Cranford Hospice Foundation and one third by the HBDHB.
Ms Anderson said she looked forward to receiving the business case site recommendations. Most important for her was that a new building was "fit for future" and met the needs of people in the community and the people who worked and volunteered at the hospice.