Plans for a new satellite dialysis unit in Co Wexford have been stalled following the rejection of a planning permission application by Wexford County Council.
The proposed unit was to be built at a site in the Whitemill Industrial Estate on the outskirts of Wexford town.
It is claimed that the construction of a medical unit in an industrial estate would affect the development of factories in the vicinity.
A spokesperson for the South East Hospitals' Group confirmed that "some planning issues have arisen between the successful tenderer and Wexford County Council and these are currently being worked through. It is anticipated that the Wexford Satellite Renal Dialysis Unit should be operational by Q1 2017."
The HSE says it is committed to progressing the development of a unit in Wexford.
The evaluation of the tender for Wexford was completed in September 2015 and Fresenius Medical Care Ireland Ltd was selected to develop the unit.
The plan is for the unit to start with 25 to 30 patients and have the capacity to expand to treat up to 50 patients a year.
University Hospital Waterford currently provides transport for over 50 patients with Co Wexford addresses.
A similar satellite service has been operating in Kilkenny in recent years.