The Rural Health Alliance is putting its service on hold over a lack of funding.
The organisation failed to secure Government funding on Friday, after asking for $600,000 - one for every rural person.
CEO Michelle Thompson says the board met today and have decided to put the alliance in hibernation.
"I think everybody was completely gutted, and we say that our precarious financial situation is entirely symbolic of the general underfunding of rural health services in New Zealand."
Ms Thompson says it feels like a kick in the guts, and is "symbolic" of what she calls the general underfunding of rural health services in New Zealand.
"We think the Government's failure to support our organisation is another example of being kicked in the guts on the way down. We think it's been a bad week for the Government with regards to rural and regional New Zealand."
It comes the same week critics accused the Government of putting a "death sentence" on the Taranaki region for planning to phase out oil and gas exploration over the next 30 years.
- Oil and gas exploration ban the 'worst thing' for climate - Judith Collins
- Oil and gas ban a 'death sentence' for Taranaki - Duncan Garner
Ms Thompson met with Minister of Rural Communities Damien O'Connor on Friday.
"Damien O'Connor said he was supportive, he did want to carry on conversations with us and look at ways of helping us with our sustainability but it wouldn't happen overnight and there was no guarantee of the timeframe. Rome is burning," she told NZFarmer.co.nz.
Mr O'Connor reportedly told her the Government had higher priorities to fund first.