When Julie Papworth opened a letter from VincentCare which said as of June 30 they will no longer be providing support through her Home Care Package, she felt stressed.
"Once again the ageing population cop it," she said.
"Once again we are in the situation where we have to find a new provider — which is not an easy task."
While the letter said VincentCare would make "every effort" to help her choose a new provider, so far Ms Papworth said help has not been forthcoming.
"They haven't suggested other providers because they say it would be a conflict of interest," she said.
Ms Papworth lives in an independent living unit at a facility run by VincentCare.
She said many of her neighbours also used VincentCare for their federally funded Home Care Packages, and the idea of finding a new provider was "daunting".
"We've all ended up here through hard times. We've all got so much to deal with in our daily lives," she said.
"At the end of the day I feel like I am basically the collateral damage. I don't matter."
'Difficult decision'
VincentCare and their parent organisation St Vincent de Paul Society Victoria said they made the "difficult decision" to cease their involvement in Home Care Packages due to "significant changes" to federal government aged-care funding.
Interim Group chief executive Paul Turton told ABC Radio Melbourne as a small-scale provider it would have been difficult for the organisation to meet new government requirements.
"There are a number of mainstream specialist providers out there who do a terrific job, and because they've got the scale they are in a much better position to continue to provide a high standard of care," he said.
"We actually think this will deliver a better outcome, a better quality of care, for people who we're currently supporting."
Mr Turton said 150 people in north-west Melbourne, Gippsland and Shepparton would be impacted by the decision.
"VincentCare is assisting clients to use the My Aged Care portal to identify potential providers that are best equipped to meet their needs in accordance with their packages, but we are unable to recommend specific providers," a St Vincent de Paul Society Victoria spokesperson said.
"We urge people who have any concerns or questions to call our Home Care Packages Team in North Melbourne on (03) 8327 7000."
New system should empower consumers
A spokesperson for the Department of Health and Aged Care said reforms to in-home care are being made in response to recommendations by the Royal Commission into Aged Care Quality and Safety.
To simplify the system, the royal commission recommended a number of existing programs be consolidated into one aged care program.
"The reforms seek to ensure older people are provided with high quality, consumer-centric aged care services that enable them to have choice and control," a spokesperson said.
"As part of the reforms, a new Support at Home Program is proposed to replace the Commonwealth Home Support Program (CHSP), Home Care Packages (HCP) program, and Short-Term Restorative Care (STRC) program."
The department said it is working with existing aged care providers to transition to the new program.
Providers exiting in-home care
VincentCare is not the only organisation which has decided to get out of in-home aged care ahead of the changes.
The ABC understands 25 Victorian councils have fully exited in-home aged care and a further nine have decided to exit by June 30.
Municipal Association of Victoria president David Clark said funding changes, which see clients being given a budget rather than providers being directly funded, have been a factor in council decisions.
"To provide the in-home service councils rely on permanent staff supported through the former block funding model," Mr Clark said.
"The changes to the funding remove council funding certainty, impacting their ability to effectively plan and deliver the service."
He said larger statewide and even national service providers will be better suited to providing in-home aged care services in the future.
