The HSE has said it is disappointed that a service agreement for Cregg House in Co Sligo has not been agreed at this point for the provision of services in 2012.
Earlier today, the trustees of Cregg House, which provides services to over 200 people with intellectual disabilities, said they could not enter into a further service level agreement with the HSE because of a serious situation with funding.
Wisdom Services said that the funding offered for 2012 is about €1.3m less than the amount required to maintain services at the 2011 level.
It said it is functioning without a psychology service, social work and speech and language services are most inadequate and some of its residential accommodation is not fit for purpose.
The HSE said the reduction in budget for 2012 is consistent with other disability service providers in the region.
A statement from the HSE West said: "While the HSE appreciates the difficulties for Wisdom Services we unfortunately do not have additional funding to address the deficit in Wisdom Services, given the current financial climate."
It added that the HSE and Wisdom Services will work together to ensure that the service users will continue to receive the care and support they require.
It said further discussions are planned with Wisdom Services to ensure that any arrangements that need to be put in place will meet the needs of service users and their families.
