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Arriva is cancelling the 368 bus which serves the Island's hospital and Neats Court retail park at Queenborough.
Transport campaigner Michael Blee of Scocles Road, Minster, said: "It is one of only three routes serving Sheppey Community Hospital and the only one which runs regularly in the afternoon. Many of the older generation rely on it.
"We had been hearing rumours from bus drivers that the 368 service from Minster to Rushenden via Morrisons was about to be withdrawn. Apparently this was sponsored by Morrisons and they are removing their subsidy."
He added: "Arriva seems to be running down its services so they become so unreliable people don't want to use them. But this service is vital, especially if you are poorly and can't drive.
"Parking is also frustratingly difficult at the hospital and will get worse because of the planned health reorganisation.
"I would have thought it would be easy to attract custom for a well-publicised and reliable bus service. But the 368 has neither of these qualities."
An Arriva spokesman said: "The 368 was funded for a five-year period as part of an agreement for the planning permission process attached to Neats Court and this agreement is now coming to an end.
“As a result, and due to low passenger numbers, the 368 service has been de-registered and will cease to operate on Saturday, December 21.
“We apologise for any inconvenience this might cause and have done what we can to minimise the impact on our passengers.
"This includes retaining a journey for the school movement from Rushenden and Queenborough to Oasis Academy East which will run as an extension of the 361 service.”
Minster parish council said it has “serious concerns” about the 368 being axed.
Clerk Trish Hamilton said: “ There is a strong view that if Arriva were to offer a better publicised and more reliable bus service, it would make it more viable.”
The parish council wants the route saved and has offered its services as a “facilitator”’ to “kick-start the conversation.”
Miss Hamilton said: “The parish council is adamant that a conversation on how this service can be saved is required. As it stands, it does not feel there is enough evidence or input from those directly affected on which to base that decision on.”
Mr Blee has written to Arriva complaining about Island bus services.
He said: "I feel very strongly that at this time when Sheppey is gradually grinding to a halt because of its inadequate road system we should be taking every available step to encourage the use of public transport not allowing it to disappear.
"Bus routes to hospitals and care centres should be viewed as being as socially important as bus routes to schools.
"The past two weeks have been particularly bad for would-be users leading to passenger exasperation at unannounced cancellations."
He told Arriva bosses: "I can report personal experience of waiting in vain for the 9.30am departure of the 368 on October 7, 16 and 19.
"What is more worrying is that on October 19 your app maintained that 18 minutes before departure the bus would appear on time, encouraging a trip to the bus stop. It later disappeared from the radar!
"Attributing cancellations to unexplained 'unforeseen circumstances' is not the best way to attract passengers. One is unlikely to embark on a journey without being reasonably sure that one can get back again.
"I respectfully suggest this current chaos is fully investigated and the findings published to try to restore public confidence."
Valerie Sturgeon-Brown, 87, of Warden Road, Warden, was left in the lurch when the 367 failed to get her back home on market day. She ended up getting as far as the community hospital then had to call a taxi.
The widowed great grandmother and former personal assistant said: "I have trouble walking so rely on these buses.
"The bus on the way to Sheerness sounded most peculiar and was making strange noises and juddering. These buses are rubbish. It is getting out of hand. It's just not funny."
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