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.

29 New Jobs To Be Created As Chemist Warehouse To Open In Naas Tomorrow
Vulnerable Adults, Some Using Wheelchairs, Forced To Share Inaccessible Vehicles At Kildare HSE Service
“Grabbed By the Neck”: Founder Tells Kildare Today Why She Launched New Female-Focused Taxi Service
Just 75% Of Landowners On Board So Far As Uisce Eireann Submits Plans For Major Water Supply Project
Two Kildare Animal Charities Share €170k Fund As Animal Welfare Costs Continue To Mount
Call To Make Extended Christmas Train Timetable Permanent For Commuter Towns
Roadside Memorial Ban Proposal Criticised Over Christmas Timing
Man (30s) Dies Following Collision Involving Bus, Car And Pedestrian At Kishawanny, Carbury