NPS is an independent organisation established to promote Quality Use of Medicines (QUM) and supporting Australians to make safe and wise decisions about medicines and other health technologies.

"This is a terrible decision by the outgoing health minister," Dr Holliday said.

"The NPS is the only non-commercial provider of health care provider education," he said.

"Our universities have been forced to seek funding from the private sector or international students and our professional organisations are also reliant on commercial players to fund their journals and conferences.

"If health care providers rely solely on commercial research to develop and evaluate medications and devices, source all their education from the same funders, and all regulators work in partnership with these same groups, then the art of healing will merely become a vertically integrated health industry and the concepts of equity and service will have become quaint anachronisms," Dr Holliday warned.

According to The Greens, funding cuts were announced in the last Federal Budget without consultation either with the organisation or the broader sector.

"The NPS represents a crucial check and balance that protects the public and prevents wasteful spending of public money," The Greens candidate for Lyne, Karl Attenborough said.

"The fact that the regional health minister has waived this through is another example of his indifference to the people of Lyne and of Australia," he said.

"The Greens understand that investing in and protecting our health services from becoming a health industry ensures the public are insulated from exploitation and profiteering."