The project is facing further delays after the preferred bidder withdrew from the project.
Efforts are underway to secure another developer for the new Community Nursing Unit in Athlone.
It emerged last week the preferred bidder has withdrawn from the plans to build a 50-bed unit in Clonbrusk, to replace St. Vincent's Care Centre.
The HSE has today confirmed the second-placed bidder is currently reviewing the documentation again.
They're due to confirm in the coming weeks whether or not they're in a position to accept the contract terms and progress with the project.
Speaking on Midlands Today, local Fianna Fáil councillor Frankie Keena expressed concern over the impact on final cost and completion date for the long-awaited development.
Laois Councillor Lays Bare IDA Numbers For County
OPW Minister "Annoyed" At Government Over Budget Kite Flying
Demonstration On Family Court System Taking Place in Dublin
Public Sector Workers Begin Work-To-Rule Action
Walk Out For Women Taking Place Across Laois, Offaly, And Westmeath
Woman Hospitalised After Three Car Midlands Crash
Over 100 Without Power Across The Midlands After Stormy Weather
Funeral For Father And Daughter Killed In Offaly Workplace Accident Tomorrow