Presbyterian Support Otago is considering taking legal action against Southern District Health Board following the axing of its home support services in the region.
The group, which offers home care to about 1200 people, believes the board unjustly cancelled its services in favour of larger agencies.
Presbyterian Support Otago chair Frazer Barton said he's unsure why the board had acted this way, given it had always been pleased with the group's quality of work and affordability.
Mr Barton said the DHB wants the work to go to fewer contractors.
He has legal advice that there were serious flaws in the process the board used to choose which providers it would fund.
Mr Barton will meet the board next week to discuss the problem and if there is no resolution an interim injunction against the board may be filed.