Cornwall hospices say they want to ensure they get money to be distributed by the NHS to avoid falling into debt.
Special palliative care grants that hospices receive directly from the government will stop after 2006.
The Central Cornwall Primary Care Trust will then manage £100,000 a year for St Julia's and Mount Edgecumbe hospices.
The hospices said they hoped to enjoy close collaboration with the Trust. The Trust said it was still carrying out budget discussions.
'Serious' situation
The management team and board of trustees of Mount Edgecumbe Hospice said when it took over responsibility for St Julia's six years ago the financial situation was "serious".
Chief executive Alastair Adams said he hoped they would not lose out with the change in funding distributor.
He said: "The primary care trust will need to ensure that money is spent on palliative care within Cornwall.
"I hope that the close collaboration that we all have together is going to make sure that we are able to enjoy the benefits of funding that should come our way."
The Trust said in a statement: "Our budget discussions in relation to next year are still taking place, so we're unable at present to say anything more."
About 80% of the £3.5m needed to run both the St Julia's and Mount Edgecumbe hospices comes from public donations.
A recent £500,000 donation from a group of nuns, the Daughters of the Cross of Liege in Hayle, put St Julia's Hospice in Hayle back into the black for the first time in six years.
Hospices spokesperson Sarah Snell said of the money from the nuns: "We have money in reserve for the first time and we've been able to put that money into saving for the future."
But the hospices said they would still like more support from the NHS and would also continue to push for increased NHS funding.