From January 1, ACC will stop funding new participants to the Otago Exercise Programme (OEP), which involves physio-therapists or other trained practitioners making home visits to people aged over 80 and at risk of falls.
Waimate physiotherapist Bridget Harrison said scrapping the programme was a "false economy".
Along with Waimate occupational therapist Louise McRae, she treated 10 people a year under the programme, visiting them at home six times over a 12-month period to teach strengthening and balancing exercises, and making monthly phone calls to check on progress.
Mrs Harrison said the OEP was a successful, well-researched programme that had been shown to reduce falls by an average of 37 per cent. Stopping its funding did not make economic sense, she said.
"Out of the 10 people we treat annually in Waimate, if it saves one broken leg it pays for itself. And I'm sure we've done better than prevent one broken leg annually."
In the past 12 months, ACC has started about 90 people from Timaru, Waimate, Geraldine and Temuka on the programme, with most referred by their GPs.
ACC injury prevention general manager Katie Sadleir said the decision to stop funding the OEP came from a desire to achieve the greatest impact from ACC's funding of its falls-prevention programmes.
The OEP was focused on people aged 80 and over, and ACC wanted to target a broader age range, she said.
"Currently, around 42 per cent of falls happen to people aged 25 to 64 years. But approximately 70 per cent of ACC's investment in falls prevention is focused on older adults, who represent just 17 per cent of fallers," Ms Sadleir said.
ACC corporate affairs manager Laurie Edwards said the decision had not been taken lightly, but ACC could not be "all things to all people".
"It is professionally responsible to look at where we can provide the best return on investment to our levy payers," Mr Edwards said.
Ms Sadleir said ACC would increase the number of classes nationally of its modified t'ai chi programme, which was targeted at people aged 60 and over.
"There will be more classes running across the country so more people will be able to access this programme in the future," Ms Sadleir said.
Waikakahi woman Patricia Greene was referred to the OEP by her GP in June last year.
The 83-year-old said after her husband died in December 2007, tiredness and a lack of confidence resulted in her falling five times in three months.
"I could fall over my own shadow. I knew I could cause some damage - I didn't want a broken leg or hips," Mrs Greene said.
She was visited at home by Mrs Harrison, who taught her a set of exercises for her whole body that took about 15 minutes to complete. She was also told to walk for about 20 minutes a day.
Mrs Greene said she noticd steady improvement over six months to the point where she "just stopped falling over".
Her strength, balance and confidence had improved "tremendously", and she continued to do the exercises every day.
She said she had been disappointed to learn funding for the OEP programme would be stopped.
There were many older people living in their own homes who could not go to t'ai chi classes or visit a physiotherapist, Mrs Greene said.