The Queensland Government will consult Gold Coasters on the future of the hospital, but confirms it won't be kept in its current form.

A consultation steering committee has been set up, with many hoping the site will be bought or transformed into another major employer.

Health Minister Geoff Wilson says come next year, there'll be no need for the old hospital to stay open and adds it's hoped whatever takes the hospital's place will be a good employer for the local area.