Health bosses could withdraw from plans to provide services for new additional support housing planned as part of a £17 million Midlothian Council project in a row over funding.
Midlothian Council reduced its annual funding for health and social care services by £1.3million in its February budget as it looked to cut costs across the board.
The move stunned the county's Integration Joint Board (IJB) which oversees the services, after they claimed it was a 'last minute' decision by the local authority.