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.

Kfm Obituary Notices (Saturday)
Kildare Drugs Arrest
Man Arrested After €400,000 Worth Of Drugs Seized In Kildare
22 People Arrested For Driving Under The Influence Since Yesterday
Health Minister Meeting With Kill-Based Contractors BAM, Amidst Concerns Of Further Delays To New Children's Hospital
Relay For Life Officially Launched In Newbridge On Wednesday Night
Celbridge Facing 300+ Year Wait For New Homes Based On Current Building Rates