The minister of health says Placentia does not currently meet the criteria for a dialysis unit.
Some residents in the town have been asking MHA Sherry Gambin Walsh to add dialysis services to the hospital, but Health Minister John Haggie says certain conditions have to be met.
Haggie says an area has to have the critical clinical mass, meaning enough people using the service, and government must be certain that the service would be sustainable over the long term.
Placentia meets neither criterion.
Haggie says Gambin Walsh and he have had regular discussions on that issue since she was first elected in 2016. He says she is keen to make sure the views of the people in Placentia have made their way to the department.