Work on initiatives aimed at improving health services for rural areas has been paused while the Rural Health Alliance Aotearoa New Zealand fights for its own survival.
RHAANZ last week hauled up the shutters, saying without government funding it would be forced to close permanently.
The future of projects such as RHAANZ's work on rural suicide prevention and boosting the rural health work force has been placed at risk by the move.
"We are in limbo as we have literally run out of money,'' RHAANZ chairman Martin London said.
"The office is paralysed, apart from carrying out the contracts which are already put in place and contracted, but beyond that we can't do anything.''