The DHB said while Dr Titchener's results were very good, the cost of the contract would have a wider health benefit if spent differently.
The lobby group made an emotional presentation to the DHB's February board meeting, to no avail.
A review of the DHB's decision was sought from the Ombudsman, an independent authority that helps the community in its dealings with government agencies.
Put Patients First backer Andy Lowe's company Lowe Corp has since funded a pilot education programme, in conjunction with Totara Health, which could help more than 2000 patients.
"We are committed to helping Hawke's Bay become a stronger and a more educated region in preventing and fighting diabetes," Mr Lowe said.
"We have to listen to patients and doctors. We support and agree with their call to expand and grow a model that uses a patient-centred approach within a primary care setting, learning from Dr Titchener.
"The GPSI service has proven it works, has delivered outstanding long-term results and has been life-changing for patients. It has closed the gap in diabetes for Maori.
"We all acknowledge there is only one Janet Titchener, she cannot do it alone. So we are going to invest in offering clinical training for doctors and nurses where they can learn from her skills and knowledge, and in doing so reach a lot more patients."