The Health Service Executive is expected to tell unions representing around 100,000 staff today that the controversial cost-containment plan, aimed at tackling the organisation's major financial deficit, is to continue.
Senior HSE managers are to meet today to consider reports from around the country on the impact on local budgets and services of a temporary recruitment freeze and other associated measures introduced last month.
The Irish Times understands that up to the end of August the HSE had overspent by €222 million. However, informed sources suggested yesterday that that figure had increased in recent weeks.
The HSE had maintained the financial overruns were due to heavier than expected expenditure on hospital services and on demand-led drug schemes in the community.
Following its internal meeting, at which the extension of the cost-containment plan is expected to be ratified, senior management officials from the executive will meet officials from a number of health sector unions.
The unions strongly criticised the executive last month for failing to enter into consultations on the introduction of the cost-containment plan, which has resulted in lay-offs and service cutbacks in a number of hospitals.
Last month, the National Implementation Body, the main trouble-shooting mechanism in the social partnership process, criticised the way in which the executive had introduced the cutbacks.
Minister for Health Mary Harney has denied that patient services are being affected by the current cost-containment measures and has stated that the number of people treated is running ahead of schedule.
However, health service unions have strongly argued that the cuts are hitting patient services.
In addition to the temporary recruitment ban, the cost-containment measures also involved a moratorium on promotions, "acting-up" arrangements and the additional use of locum or agency staff.
The cuts have also affected services in a number of hospitals around the country including Ennis, Sligo, Mullingar and Clonmel.
In Sligo, around 30 nurses and four temporary consultants are being let go. In Ennis, nurses have voted for industrial action in protest at cutbacks there.
Meanwhile, the Cabinet sub-committee on health will consider on Wednesday a consultant's controversial report on future bed-capacity requirements.
The Sunday Business Post reported yesterday that it will say up to 8,000 additional hospital beds would be needed by 2020 in the absence of major investment in facilities in the community.
The report said investing in primary care was a more economical alternative and would also improve patient care.
The report added that without the investment in community facilities to keep patients out of hospital, a total complement of 20,000 beds would be needed by 2020, given the ageing population.
The report's findings supported the position of HSE chief executive Prof Brendan Drumm who has argued for investment in the community rather than in additional hospital beds.
However, it is unclear whether the report will receive political support at Cabinet.