The Minister for Health has said the cut to health spending in December's Budget will be substantial.
Mary Harney said that she did not want to speculate on the exact figure, but she said it will have serious consequences for the health system.
The Minister said every possible way of reducing the impact on patient services needed to be looked at, including work practices.
She said that process will take place over the coming weeks.
Meanwhile, HSE West has confirmed that it is examining all temporary work contracts in the Mid West region as part of a series of measures to meet cutbacks in its budget.
HSE West has said that the estimated overspend for the west regional area is likely to be €90m.
It says its break even plans will affect some patients, clients and staff but they are working to minimise these effects.
HSE West says if they do not take measures to reduce costs, there will be a requirement for more severe actions later in the year.
Impact trade union estimates that between 200 to 300 staff of all clinical and administrative grades could be affected by the non renewal or termination of contracts.
Other cuts proposed by HSE West is the closure of a ward at the Mid Western Regional hospital, the closure of a theatre and a ward at the Orthopedic hospital at Croom, and 25 in-patient beds at Ennis and Nenagh hospitals.
