The HSE has revised downwards the estimate of its shortfall in funding this year to €480m.
The executive had originally forecast a shortfall of over €1bn.
It follows a six-hour meeting of the executive where new figures suggest its loss of income from the Health levy will be less than earlier anticipated.
HSE Chief Professor Brendan Drumm said following discussions with the Department of Health, the HSE would now be responsible for securing €205m in savings from the new shortfall estimate.
The HSE will now prepare a revised Service Plan for 2009, which will be submitted to a special meeting of the board for approval.
Professor Drumm has already said that hard choices would have to be made to stay within budget.
The rise in unemployment has meant a dramatic fall in income to the HSE from the health levy, as well as an increase in demand for medical cards.
Two weeks ago, a special board meeting was held to discuss the shortfall this year, which was thought to be over €1bn.
