The Daily Liberal reported on Friday, that contract negotiations between the Western NSW Local Health District and Trangie's long-serving Dr Ashraf Labib were on thin ice.

Narromine Shire Council mayor Craig Davies revealed last week that Trangie's only doctor might have to leave the small community after almost 22 years due to cuts to his payments as a Visiting Medical Officer.

A Western NSW LHD spokesperson confirmed the doctor's contract would be ending on June 30 this year, however discussions were ongoing.

READ ALSO:

Mr Saunders said while he couldn't comment in detail on the matter, he assured he was looking into the case.

"It is absolutely essential that the people of Trangie have access to quality medical care, and I am taking an active interest in this matter," he said.

"The Western NSW LHD has no intention of ending Dr Labib's employment and continues to actively engage in discussions regarding a new contract.

"It would not be appropriate to comment further on the employment contract negotiations of a private individual."

The crisis talks come just a month after the damning findings of a parliamentary inquiry into the NSW rural health system.

The NSW parliament's rural health inquiry found that the system which "in some instances is in crisis", is rife with staff shortages, inequity, staff bullying, and other major problems.

The report, tabled in state parliament in May, was the result of a year-long inquiry receiving 720 submissions and 15 hearings.

As a result of the findings, the upper house report made 44 recommendations, including an urgent review of the rural workforce and funding arrangements, along with better engagement with rural communities.

There are calls for the state government to do more in the short term to keep doctors in country towns while NSW waits for medical staff to be recruited.

Rural and Remote Medical Services chief executive officer Mark Burdack said small towns can't afford to lose their GPs while waiting for the thousands of new staff.

"We all know that if a rural or remote town loses its GP practice the town has a snowflakes chance in hell of getting it back," he said.

The charity has called on the state and federal government to create a $300 million Rural Health JobKeeper package to stem the loss of rural and remote GPs, nurses and health staff, and prevent the closure of GP practices in rural and remote communities.

"Rural and remote communities are the most vulnerable in Australia and they need immediate support to keep their health centres open and operating while they try to recruit GPs including help to pay nursing and practice staff and ongoing operating costs" Mr Burdack said.

Federal member for Parkes Mark Coulton said he recognised the recruitment and retention of rural doctors, especially GPs was an issue for many towns across the electorate.

"The issue is complex and requires a range of short, medium, and long-term approaches," he said.

"I have worked closely with rural health stakeholders to ensure policy settings can achieve their intended outcomes."

The former Regional Health Minister said while the federal government didn't have a direct input in the recruitment of the health workforce, a number of innovative and targeted programs had been designed to incentivise doctors to move to and remain working in regional, rural and remote towns.

"In my time as Regional Health Minister I was also able to bring in higher Medicare rebates for GPs working in eligible rural and remote areas," he explained.

"This change to funding was specifically brought about to recognise the unique challenges faced by GPs in these areas and alleviate some of the difficulties around remote service provision."