Reports came out recently that the Children's Hospital at Home service was axed.
But the Warwickshire Primary Care Trust has come forward this week to say that the service has not closed - although it is 'reviewing the way the team works' and
has cut down its hours.
The service treats sick children at home and was brought in after the closure of the in-patient paediatric facilities at the Hospital of St. Cross.
It takes referrals from doctors for children with acute illnesses, such as chest infections and gastroenteritis.
A source said: "Staff were told that the service has been closed and they are very upset.
"They have built up an excellent rapport with the families in Rugby and won a national award in 2002.
"There has been an awful shroud of secrecy about this and we were told not to make it public but I think the public has a right to know.
"Now I have heard that it might be re-opening, but we just don't know."
In an attempt to clear up the matter, Jill Freer, Managing Director of Community Services for Warwickshire PCT, said: "The Children's Hospital at Home team in Rugby has not closed and we are currently reviewing the way the team works with a view to integrating the staff within the wider Children's Community Nursing team.
"There has been a detailed review of the Rugby Children's Hospital at Home team and the options have been discussed at the Health Overview and Scrutiny Committee and will go before GPs in the next month before a final decision on the future of the service is taken."