The Health Service Executive has said that the only Section 38 agency now deemed not in compliance with public pay policy is St Vincent's University Hospital in Dublin.
The HSE wrote to the hospital today to outline what it needs to do in order to come into compliance.
Should it fail to meet this requirement, the HSE will proceed with its previously announced plan to withhold 20% funding from 21 February.
The executive said this will not result in a reduction of services for patients.
However, St Vincent's said the HSE has told it that the public pay policy matters need to be resolved by the end of March.
Last week, the HSE named five hospitals or agencies as not in compliance.
Following correspondence, the other four - St James's Hospital, Brothers of Charity South and South East and St John of God - are now deemed compliant.