Health Minister Tony Ryall has rejected Labour Party claims that the Government is planning to close 50 hospital kitchens.
Labour said the move had been proposed by Crown company Health Benefits Limited (HBL), who were set up by the Ministry of Health to make savings in the public health service.
It said the plan would involve the outsourcing of the making of hospital meals and cost 1300 jobs.
Mr Ryall says HBL is consulting with unions on a proposal to streamline district health board food services but a business case could be six months away.
"The health service is looking at how we can provide a better service with improved quality of food but in a more collective way, that saves money which can be ploughed back in to front line services.