Her comments come amid community concerns about a reduction in services, as CHIRP Community Health seeks to work within its available funding.

The not-for-profit organisation - which is registered as Castlemaine District Community Health - is in discussions with Castlemaine Health about co-locating or integrating services.

The process has been underway for some time, with hopes of a decision within the next few months.

CHIRP Community Health chief executive Dianne Couch said the organisations were working on developing options to strengthen their work together.

They were also involved in a longer-term vision for a health hub in Castlemaine, which would combine community health, clinical and medical services, and health-related shire services.

"A facility is obviously top of our minds," Ms Couch said.

CHIRP has been searching for more economical, better suited premises for a number of years.

Ms Couch yesterday said temporary co-location would assist the organisation in working within its funding.

Reductions to diabetes education and outreach, housing services, physiotherapy, and drug and alcohol rehabilitation counselling have been proposed, given the current financial pressures.

About 70 people attended a meeting in the Castlemaine Town Hall on Monday night, which organisers hoped would bolster support for service restoration and increased funding.

Doctors at one Castlemaine medical clinic penned a letter in support of CHIRP, seeking urgent funding for a "fundamental" service.

Ms Edwards said there was a process underway.

"We need to let it take its course," she said.

"My expectation is there will be continued delivery of good quality community health services in Castlemaine and the shire... and hopefully, at some stage, an increase in the number of services available."

She said was unable to attend Monday night's meeting, which was organised by Friends of CHIRP Community Health.

"I appreciate that the Friends of Castlemaine District Community Health are concerned about the much-loved [organisation] and the services it provides," Ms Edwards said.

"However, it would appear that they have not been fully briefed by the organisation on the process underway.

"I will continue to work with Castlemaine District Community Health, Castlemaine Health and the Department of Health and Human Services to ensure the best possible outcome for patients across the Mount Alexander Shire."

Ms Edwards said the delivery of "excellent" community health services and medical and clinical services was vital to regional communities.