Independent councillor Brendan Cronin, who raised the issue, called for the replacement of the religious symbols at Killarney Community Hospital.
He was supported by curate Fr Kevin McNamara.
Mr Cronin said staff and patients at the hospital, which caters mainly for elderly people, had contacted him and were deeply upset by what had happened.
A large statue of the Sacred Heart, which stood in a prominent position on the outside front wall of the hospital for several decades, has been removed for health and safety reasons, according to the HSE.
Mr Cronin said smaller internal statues, holy pictures and crucifixes over beds in wards have also been taken down and placed on the floor of the hospital chapel.
"Some of these symbols have been replaced by so-called ‘modern art’, but I think it’s an absolute disgrace," he stated.
When it was put to Mr Cronin that some patients in the hospital might be of other religious beliefs, or of no belief, he expressed concerned about the welfare of all patients. However, he said no group should have the right to take away what the vast majority of people held dear, he insisted.
Acting local health manager for the HSE, Michael Fitzgerald, said extensive renovations were currently being carried out to Killarney Community Hospital, with internal refurbishment of shower and bathroom areas and redecoration.
There was ongoing repair to the hospital, both internally and externally, he said.
As part of this process, Mr Fitzgerald said the statue on the external façade of the building, which had deteriorated due to weathering, had been removed.
"The HSE intends to restore the statue and find a more suitable location," he said.
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