The Western Health Board (WHB) is due to take over Portiuncula Hospital in Ballinasloe, Co Galway, as part of an £11 million deal approved by the Minister for Health and Children.
The 220-bed hospital, which has been run by the Franciscan Missionaries of the Divine Motherhood, will be transferred to the health board on October 31st.
The board said yesterday that it would honour employee contracts under Irish and European legislation, and had initiated consultations with staff on this.
A transition period of a year has been agreed, which will be supervised by a committee representing both the religious order and the health board.
An independent chairman, Mr Conal Devine, has been appointed to the committee.
The health board has agreed to promote and maintain the ethos of the hospital within its statutory obligations, and to respect the "conscientious beliefs" of the staff.
Voluntary work in the hospital by the nuns will be facilitated, and chaplaincy and pastoral care services will be retained.
The transfer has been welcomed by the WHB chief executive, Dr Sheelah Ryan.