Minister for Health Mary Harney has said that decisions will be made by the Government over the coming weeks on the health budget for 2011.
She said her priority was to see an end to outdated work practices before cuts in services to patients occur.
Minister Harney said there would be reduced services and the decisions to be taken will not be easy.
The Minister also said that there was no question of revisiting the decision to locate the new National Children's Hospital at the Mater Hospital site in Dublin.
She was speaking at a conference in Dublin Castle, organised by the HSE and Department of Health, to mark the centenary of the death of Florence Nightingale.
Also speaking at the conference, the new Chief Executive of the Health Service Executive, Cathal Magee, said a significant improvement in the delivery of health services is needed.
In his first public engagement since taking up the post this month, he said that the service had to deliver accessibility, quality and at a lower cost.
Mr Magee said there remained issues about access and quality of care, at a time when Ireland was facing an extremely difficult economic environment.
