Killarney councillors are calling on the HSE to reverse its decision to sell part of St Finan’s to the public.
The former mental health facility sits on 30 acres in Killarney, and last year the HSE revealed plans for the site.
The HSE is retaining part of the St Finan’s site in Killarney to develop a new community nursing unit, and is selling 5.7 acres to Kerry County Council to develop social housing.
There was no interest from other State agencies, so the HSE said it would put the remainder of the property up for public sale.
There have been calls for this to be stopped, and for housing to be developed on the site.
Kerry Independent Alliance Cllr John O’Donoghue says the huge housing waiting lists in Killarney need to be tackled, and says St Finan’s must stay in State ownership.
Local Labour Cllr Marie Moloney is questioning what will happen to the existing Killarney Community Hospital, when a new one is built at St Finan’s.
She says Killarney doesn't need another vacant building.
Meanwhile Deputy Danny Healy-Rae is also calling on the HSE not to put the St Finan’s lands up for public sale.
The Independent TD says it should be returned to Kerry County Council, from where the HSE got it in the first place.
He adds the HSE should be able to make better use of St Finan’s, as it’s renting buildings in Killarney and around Kerry.