NHS Lincolnshire ICB has said the service will not be renewed after its contract expires on 31 March.
Sue Morgan, associate director of strategic partnerships and services at Marie Curie for Lincolnshire, said: ‘It is devastating that such an important and long-standing overnight specialist end-of-life service will no longer be available to the people of Lincolnshire.
‘Over the last couple of years, the cost of delivering our specialist care has risen and NHS funding has not kept pace. This cannot continue.'
The charity said it would keep pushing the UK Government and ICBs to invest further in palliative and end-of-life care.
Marie Curie has requested a two-month extension from the ICB to allow them to consult with affected staff compassionately and ensure continuity of care.
A spokesperson for NHS Lincolnshire ICB said feedback from the service had been ‘variable', adding: ‘We have been working with partners across health and care to develop a palliative and end-of-life strategy that enables health and care agencies to work together and with communities to provide the highest quality of care, communication and support to patients and those who are important to them.'
The ICB said it was ‘disappointed' it had not been able agree a ‘delivery model and arrangement that includes the Marie Curie night service being part of the integrated whole system service for our patients' to serve families and carers in all parts of the county.
The spokesperson added: ‘To ensure there is no disruption to patient services and to support Marie Curie in managing the transition arrangements, we have agreed that Marie Curie night services will continue whilst we agree an end date with Marie Curie. We will be working with our other community end-of-life care providers that are supported by our community specialist palliative care teams to ensure that during this transition patients, families and carers continue to have their care needs and wishes met.'
Marie Curie's Rapid Response Service operating 8pm to 8am is unaffected by the decision.