Around 1,500 day case and inpatient cases are being outsourced to the private hospital sector to help reduce waiting lists, Minister for Health Leo Varadkar has told the Dáil.
He said that a notice to tender the procedures was issued on 15 May by the Health Service Executive.
Sinn Féin health spokesperson Caoimhghín Ó Caoláin described the move as "outrageous" and said it would mean doctors being paid twice for the same case.
He said it would mean lining the pockets of doctors in front-line practice and reward those who are not performing.
Mr Varadkar said that the plan had only begun so it was too early to audit.
He said there was a potential for a conflict of interest but the priority was to get patients waiting a long period of time treated, as this was a patient safety issue.
The minister said that the plan was different to the National Treatment Purchase Fund, as it did not involve patients self-referring for private treatment.
He also said that where possible, existing public hospital facilities would be used.
Mr Varadkar also told the Dáil that anyone waiting 12 months or more for an outpatient appointment will be seen within a year.
He was responding to a question from Fianna Fáil health spokesperson Billy Kelleher, who said that more than 11,000 people in Waterford are waiting over 12 months for an outpatient appointment.
In Cork, he said the number waiting a year or more was 13,000.
Mr Varadkar said: "Anyone waiting that long will be seen within the year and we'll use whatever finance to do that".
The minister said waiting lists needed to be managed better.
He said that huge numbers of patients do not turn up for appointment, many are not on the waiting list at all, and there is a problem with referral rates.
