Elmore Medical Practice has called for its lease to continue as-is after its landlord Bendigo Community Health Services terminated a long-running service-delivery partnership with the clinic.

But BCHS said the decision to terminate its partnership - by which it and the clinic share the building and certain running costs - was a responsible use of public money, as COVID-19 meant it could no longer run services from the joint facility.

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Bendigo Community Health Services and Elmore Medical Practice have worked in partnership to deliver services for several years as Elmore Primary Health.

Parent company of the Elmore practice St. Anthony Family Medical Practice managing director Adel Asaid said the contract had been terminated without explanation or consultation.

Dr Asaid said the Elmore practice had worked hard to develop a unique model of care in partnership with BCHS.

He said the aim behind the partnership was to help community members access the health services they needed in one place.

Dr Asaid said a doctor's practice in a small country town like Elmore was a service, rather than a business.

BCHS chief executive Gerard Jose said the Elmore clinic was renting the space at well below the market value.

He said BCHS hoped to create a conventional lease with the clinic, but planned to continue to provide it with a "friendly" rental rate, based on an independent market valuation.

Mr Jose said BCHS had spoken to St Anthony about fairly sharing the running costs of the site, but hadn't received any formal response from those discussions.

He said the relationship with St Anthony Medical Practice covered both the rental of the medical practice - which remained in place - and a partnership where BCHS contributed to site running costs.

Mr Jose said COVID-normal restrictions meant the combined site would be too small for BCHS to deliver its services, so it had moved programs to the Elmore Community Hub.

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Mr Jose said termination of the agreement was sensible use of public money from BCHS, because it was not running services from the site.

Elmore Medical Practice manager Kathy Tuohey said she feared BCHS would raise the facility's rent to a commercial rate, which would be out of reach for the clinic.

But Ms Tuohey said the clinic would be able to run all its health services without the partnership of BCHS.

She has joined a working party aiming to develop a resolution.

Ms Tuohey said her ideal resolution was for BCHS to commit to continue with the lease agreement as it was.

She said the end of the partnership was unsettling for the community.

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