A popular cafe at John Hunter Hospital is set to close, angering healthcare workers who use the venue to buy affordable food and drink.
Patients and visitors also use the Cosy Kooka Cafe, which is run by HealthShare - a public arm of NSW Health.
Staff have been told the cafe will close at the end of this month.
Health Services Union (HSU) members rallied outside the hospital on Thursday, calling for the cafe to remain open.
The HSU's John Hunter sub-branch president, Adam Henry, said "the cafe has been a big part of the hospital for staff and the community for about 35 years".
"It's an affordable place to eat," Mr Henry said.
He said a medium coffee at the cafe was about $4.40 and a wrap $9.40.
"The sausage rolls and party pies are a staple for morning tea. You see everyone down there," he said.
"They had a sausage with onion and barbecue sauce on a bread roll for $4.50. I couldn't go anywhere else in the hospital and get something that cheap."
Mr Henry said the cafe acted as "a meal room for staff".
"There'd be well and truly more than 400 to 500 people that don't have a place to have a meal [without the cafe]," Mr Henry said.
He said hospital volunteers got meal vouchers for the cafe, and staff received them when they worked overtime.
HSU delegate Mallory Wood said she was "absolutely outraged" that the cafe was closing.
"It's been an institution for years," Ms Wood said, adding that Healthshare had "run it into the ground".
"They've done no consultation, which is a requirement of the Work Health and Safety Act.
"Where we eat, drink and have our break is a matter that very much affects us."
Ms Wood said the cafe was more of a central spot at the hospital than other privately-run eateries there.
"And it's such a good meeting spot," she said.
Ms Wood said only a small number of tea rooms were available at the hospital for staff.
"A lot of staff, in their 20-minute to half-hour break, will now have to be lining up for the few microwaves and fridges to store food.
"That will demoralise workers."
Ms Wood said members of the public also used the cafeteria.
"Two children's wards are either side of it, so a lot of parents go there," she said.
Mr Henry said he stayed in a ward near the cafe when his son was diagnosed with type 1 diabetes.
"It's really close to duck into the cafeteria," he said.
HSU organiser Matthew Ramsay said up to 15 staff were employed at the cafe.
"We welcome there will be no job losses," Mr Ramsay said, adding staff had been told they would be offered redeployment.
"We're rallying to try to highlight that this decision cuts a lot deeper than just the staff directly employed."
HSU NSW secretary Gerard Hayes said the cafe provided "affordable meals for exhausted and stressed-out health workers".
"Why disrupt something that's working?"
HealthShare NSW said it would continue to operate the cafe "until staff consultation regarding the closure of the outlet is completed in the coming weeks".
"There are a number of alternative retail food outlets available on site for staff and visitors," a spokesperson said.
"The Cosy Kooka Cafe seating area will be retained for the use of staff, patients and visitors."