The HSE says residents from older buildings at the Killarney Community Hospital will be transferred to the new Killarney Community Nursing Unit next year.
The statement to Radio Kerry News was in the wake of comments by independent Killarney Municipal District councillor, Brendan Cronin, at this week's council meeting.
He claimed delays opening the new Killarney Community Nursing Unit are causing anguish to patients and their families alike - labelling the delays unacceptable.
Cllr Cronin has called on the HSE to clarify the situation, adding rumour and speculation will only be quelled by explaining the reality of the situation.
He says some people in need of specialist long-term residential care have been transferred out of Kerry, to counties like Cork and Limerick:
The HSE state that they offer residential placements as close to home as possible, but that they can only offer placements in facilities with available capacity.