The Otago Community Hospice is cutting services in response to growing financial deficits and is calling for more government funding.
In the coming month, the hospice, in Dunedin, will stop providing day respite care and reduce its bed numbers from 12 to eight.
Hospice chairman Stuart McLauchlan says the decision was made after the hospice discovered it was facing a $300,000 loss next year.
He says the money it receives from the Otago District Health Board covers less than half its operating costs, with the rest funded by public donation.
He says the public gave $1.1 million to the hospice last year.