NSW Health has axed funding to a child care centre at Sutherland Hospital providing late-night care for the children of doctors and nurses, stating it is "not core business".

The Koala Child Care Centre was told abruptly this week it would no longer receive payments from the South Eastern Sydney Local Health District, which had been funding the centre for 25 years.

Nurses Jennifer Richards (left), with her son Noah, and Ashleigh Stuart, with son Keaton and daughter Paige, both rely on the Koala Child Care Centre at Sutherland Hospital, which has had its funding pulled. Credit:Brendan Esposito

The centre's director, Fiona Black, says the $78,000 hole left in the budget will force her to stop providing evening care for parents, who include a husband and wife who work as an ambulance driver and nurse.

Around 60 hospital workers rely on the child care centre, which is within the hospital grounds and stays open until 10.30pm.