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It emerged last week the preferred bidder has withdrawn from the plans to build a 50-bed unit in Clonbrusk, to replace St. Vincent's Care Centre.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.
Calls Grow For 24 Hour Garda Station In Edenderry After Arson Attack
Appeal Date Set For Jozef Puska Over Murder Of Ashling Murphy
Offaly Town Demands Meeting With Garda Commissioner And Justice Minister
Ireland’s First Kidney Pancreas Transplant Recipient Dies Aged 68
Quality Of Life To Drive Offaly’s Appeal For Foreign Investment - Anna Marie Delaney
Hundreds Of Mourners Gather For Tadgh Farrell's Funeral
Dancing With The Stars ‘A Once In A Lifetime Opportunity’ - Rose Of Tralee
Uisce Éireann To Submit €6b Water Project Plan
Pedestrian Killed In Midlands Crash
Gardai Arrest Four Men Over Laois Prison Assault
Maura Higgins Set For Traitors US
Man Taken To Hospital Following Alleged Westmeath Assault
Osteoarthritis Programme Launched At Midlands Hospital
Laois County Fire And Rescue Service Welcomes Two New Fire Appliances
Offaly TD Welcomes New IDA Ireland Investment
Gardai Conduct House Searches In Connection With Offaly Arson Attack
Funeral For Offaly Arson Attack Victim To Be Held Today
Emergency Services At Scene Of Offaly Crash
Tadgh Farrell’s Father Denied Compassionate Bail To Attend Son’s Funeral