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.

Friday's Kfm Obituary Announcements
New Cultural Programme Set For Castletown House
Celbridge Woman Who Lost Sister To CF Calls For People To Support Today's Fundraiser
Protestors, Including Kildare's John Dallon, Refused Entry From Government And Agriculture Bodies Meeting
Defence Forces Travelling To The Curragh Today For Training
Newbridge Silverware’s Silver-plated Cutlery Factory Officially Closes
Martin Heydon Will Meet Farming And Haulier Groups This Morning Amid Fuel Protests
Missing 17-Year-Old Joshua Treacy From Maynooth Has Been Located