Labour wants the Government to buy two private hospitals to increase capacity and tackle waiting lists in the health service.
The party made the proposal in its alternative budget plan which was published this afternoon.
Party leader Alan Kelly said the two hospitals are urgently needed and could be purchased for somewhere in the order of €450 million.
He said one hospital should be purchased in Dublin and one in the regions.
The party is also calling for the restoration to €350 of the PUP payment, a €5 increase in social welfare rates and a 20 cent increase in the minimum wage.
Labour's Finance Spokesperson Ged Nash said this plan was asking those who had the most to pay more as part of a new social contract.
The proposals also include a €4.8 billion package to stimulate the economy. The would be on top of the estimated budget deficit of €20 billion.
The revenue raising measures contained in the plan include a 25 cent increase in tobacco duty, a €50 a tonne levy on incinerator waste and a levy on the Meat Sector which would be based on turnover.
