The Dorothy Kerin Trust said it has faced considerable financial challenges for a number of years and has come to the conclusion that the current situation is "untenable".
In a statement, the trustees said: "Despite sporadic sizeable single donations and legacies, there has also been a significant shortfall in reaching fundraising targets.
"On top of this, the cost of ensuring compliance with Care Quality Commission (CQC) regulations continues to grow, and this has also been a further contributory factor in the number of burdens on the Trust's limited resources.
"All of these issues combined have led to Burrswood facing an unsustainable financial position."
After prayerfully considering a wide range of options, trustees have now started a consultation process with all employees.
Burswood was founded in 1948, by Dorothy Kerin who experienced miraculous physical healing.
She wanted to open a centre dedicated to 'whole person care' which addressed Healthcare, Social Care and Spiritual Wellbeing services.
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