A former midwife could face criminal and civil action after the home birth death of a Melbourne mother.

But Gaye Demanuele wants to continue working in the field, a court has heard.

She was in charge when the mother lost a lot of blood giving birth in a pool at a home four years ago.

The birth took place in the dark and the mother, who was left in the water for at least an hour without proper examination, fell unconscious before begging for an ambulance to be called because she thought she was dying.

Ms Demanuele "acted quite as she pleased" and ignored the pleas until the mother eventually collapsed, Coroner Peter White said on Thursday.

The mother had suffered a post-partum haemorrhage and later died in hospital, leaving behind her newborn daughter and an older girl.

Mr White referred the case to the Director of Public Prosecutions, saying the mother's death was avoidable and Ms Demanuele's inadequate management contributed.

Ms Demanuele has now de-registered herself, but she has a bias against hospital birthing and wants to continue helping out with home deliveries, the court heard.

She told an inquest into the mother's 2012 death that she wanted to assist when a mother "catches the baby with her own hands".

"(That) is a matter of concern that should be addressed immediately," Coroner White said.

The dead woman's mother says Ms Demanuele is a danger to pregnant women, and she will take legal action against the former midwife.

Her beautiful daughter was a loving mother who thought she was in safe hands, she said.

"She never thought that, when she begged to be taken to hospital, her cry for help would be rejected," the woman's mother told reporters outside court.

"They refused to call an ambulance because of their radical and dangerous beliefs."

The woman's husband was present for the birth, conducted by Ms Demanuele with help from assisting midwife, Melody Bourne, and a doula.

The mother had told Ms Demanuele she believed she had suffered a tear during her first child's delivery, but Ms Demanuele did not seek relevant medical records from the hospital involved or consult with the woman's GP.

She didn't create a safe environment, the dark room making it hard to see what had happened to the mother, and she misled attending paramedics and the hospital, Mr White said.