The IHC is seeking a lifeline from the Government as it grapples with the implications of a landmark employment court case which would bankrupt it if it were forced to pay $80 million in backpay and an extra $20 million a year in wages.
The IHC is seeking leave to appeal the case, and the Government is considering joining the appeal.
The case centred on employees who are required to sleep on the employers' premises and be on call.
"We have to appeal," said IHC communications manager Philippa Sellens.
"We have no money to pay the money it would cost us to cover this."
She said the organisation was looking to the Ministry of Health, its primary funder, for a solution.
The case may have implications for other employees, such as in the aged-care sector.
The Services Workers Union, which has taken the case through the court, also said it had some sympathy for the IHC and that it was time for the Government as funder to get involved.
The case, taken on behalf of Levin care worker Phillip Dickson, is about both the pay rates for employees who are required to sleep-over at houses with IHC clients, and how their pay is calculated.
The Employment Court has found that such employees should be paid the minimum wage - now $12.50 an hour.
Mr Dickson - and others - is paid $34 a night for between eight and 10 hours, so payment can be as low as $3.40 on an hourly rate.
With the right to claim up to six years in backpay, figures supplied to the Employment Court showed it would cost about $80 million in backpay and about $20 million extra a year after that.
Mr Dickson is one of about 6500 carers who work for the IHC service arm Idea Services for about 3500 clients receiving community-based care.
The case is divided into two main issues.
The court found earlier this year that the minimum rate of pay should apply to employees sleeping over.
The most recent issue was whether employers were able to calculate a fortnightly pay based on an average of not less than $12.50 an hour for the total number of hours worked in the pay fortnight.
That would have meant that rate of $3.40 an hour at night could have been offset by a higher rate of $17.66 he earned for shift work and a possible way out of avoiding the minimum pay entitlement.
The court last week found that "averaging" was not acceptable under the Minimum Wage Act.
Health Minister Tony Ryall said the Ministry of Health had advised him that the extra annual cost to the public health system could be up to $40 million a year.
"It's enormous.
"It's an incredible potential cost to the health service and to other providers around the country side."
There were also flow-on effects for care providers in the private sector.
Mr Ryall said Crown Law was considering whether the Ministry of Health should join the IHC in seeking leave to appeal the decision at the Court of Appeal.
The Service and Food Workers' Union national Secretary, John Ryall, said "a whole lot of chickens are coming home to roost".
When the psychopaedic and psychiatric hospitals were closed, a lot people were moved into the community but it was done "on the cheap".
Workers were paid a lot less than they were in the hospitals.
