But the Andrews government says it is only acting to reduce funding "double-ups".
The Victorian Healthcare Association says the state's health department contacted the industry on Friday warning of looming cuts ahead of May's budget, with reports as much as 15 per cent of community health promotion funding could be slashed.
The peak body for public healthcare services believes about 45 community health services will be impacted.
It's unclear what types of programs will go but could include initiatives to encourage healthy eating or reduce smoking and vaping.
Doctors Reform Society President Dr Tim Woodruff declared it "shameful and also silly policy" that would increase stress on hospitals.
"The claim that this will not impact on frontline services is a political lie," Dr Woodruff said.
"With about one in ten admissions to Victorian public hospitals being preventable with good primary health care why would any government reduce funding for it?"
Premier Daniel Andrews disagreed any cuts would lead to more pressure on hospitals as local public health units delivered many of the same services.
"The notion that these other services won't be delivered, that's simply wrong," Mr Andrews told reporters on Sunday.
"They've been delivered in multiple places and we are rationalising that and making sure that we're not having all these double-ups, which is hardly the most efficient way to deliver services."
Health Minister Mary-Anne Thomas said community health had already received more than $150 million in budget funding and local public health units had been allocated $40 million.
Victorian Healthcare Association acting chief executive Juan Paolo Legaspi said that while the budget could include billions of dollars to build new hospitals that should not come at the cost of community health programs.
"This is not the right time to cut funding to programs that help people stay well and out of our stretched hospital system," he said.
The Australian Health Promotion Association said the move was irresponsible, shortsighted and would lead to job losses among 500 health promotion workers across the state.
