Presbyterian Support Otago has decided not to take legal action against the Southern District Health Board.
In December last year, the DHB announced plans to axe Presbyterian Support Otago as a provider of home support services.
The South Island DHB has chosen three new providers including a district nursing service and Healthcare New Zealand.
Presbyterian Support Otago offered home care to about 1200 people and believes there was a legal case to be answered regarding what is said was a flawed and unjust process used by the DHB to cut its services.
However, PSO board chair Frazer Barton says clients and staff need clarity about their future and filing for an interim injunction would prolong an already lengthy transition.