Minister for Health James Reilly has approved the Health Service Executive's National Service Plan for this year.
Last week, the Minister asked the HSE to redraft its plan because it was regarded as too severe.
It is understood to have envisaged cuts in some hospitals of around 12%, mainly for those with a large deficit to carry over.
The re-drafted plan will be presented to the Oireachtas on Monday.
Dr Reilly said he was pleased that the reduction in funding would not mean an equivalent drop in the level of service.