The committee, with the help of an outside consultant, will evaluate the nursing home costs and staffing.
One option would reduce the 139 available nursing home beds, 115 of which are filled, down to 80.
The facility would also add 23 units of assisted living apartments.
Nursing home officials say residents wouldn't be required to leave under the reorganization, instead long term admissions would be put on a "flexible freeze" to be negotiated with the state.
Another possible option would reduce the nursing home to 50 beds.
The committee will report their findings to the board at a meeting on June 14.