Mitch, who collapsed last week, visited a doctor on July 10 for tests and was told that he needed to take care of himself.
When Winehouse came to know of her father's bad health, she insisted that he get some rest.
So he's now leaving for Spain to recuperate.
"Mitch isn't well. He has been taking a lot on and has been dedicating himself to trying to improve Amy's health. But his own health has suffered as a result," the Sun quoted a pal as revealing.
"He has been having stress-related panic attacks and collapsed at home last week.
"The doctor did some tests and told him he needed to take time out or he was seriously risking his own well-being. Amy is devastated and told him to get away and relax.
"She told him not to worry about her - but that is easier said than done," the pal added.
Mitch, who made a televised plea this weekend for Amy's friends to stop giving her drugs and even cigarettes, confirmed on July 13 that he was taking some time out after his scare.
"I'm awaiting the results of tests. I'm going away for a few days and we will see what happens after that," he said.
Mitch started looking after the 'Rehab' singer full-time at her home in Camden, north London, two weeks ago after she quit the hospital where she was being treated.
She was diagnosed with lung condition emphysema at The London Clinic after collapsing at home. However, Mitch's attempts to keep Amy in her house and away from temptation failed.