Anne Rabbitte has described the news as "disappointing".
A proposal to transfer St. John of God's services to the HSE would be a "serious blow" to people with mental health issues and intellectual disabilities.
That's according to the Minister of State for Disability, after the organisation proposed to complete the transfer by August.
Anne Rabbitte has described the news as "disappointing" and says it was proposed because of "long-standing debt" that the organisation attributes to low State funding.
She said meetings were held over the weekend to discuss not pursuing the plan.
The organisation employs 3,000 staff and volunteers in 300 locations across Kildare, Wicklow, Dublin, Meath, Louth and Kerry.

Staff Say Unsafe Pressure At Naas Hospital Is Worsened By Uncovered Sick Leave And Vacant Positions
Inside The Celbridge Lab Where Evidence Helped Identify 32 Missing People Last Year
Man Assaulted By Two Males In Newbridge After Refusing To Hand Over His Jacket
Taoiseach Says Patients Shouldn’t Pay for Blister Packs - But Says State Can't Pay For Everything
Council Executive Asked Naas Cllrs To Refuse Free Xmas Parking To Encourage Use Of "Sustainable" Travel
Gunman Steals Cash From Centra In Naas Before Being Tracked Down By Gardai
Woman Arrested At Dublin Airport Detained In Kildare Garda Station Over Alleged Series Of Thefts
Vulnerable People And Those With Disabilities In Kildare Left Waiting A Year For Basic Advocacy Support