The Health Service Executive (HSE) has insisted it will exceed its target service levels this year, despite a temporary ban on recruitment introduced to help it balance its financial position.
Earlier, the HSE blamed the freeze on recruitment imposed for September and other cost-cutting measures on financial pressures caused by public demand for the drug refund scheme.
Liz McManus, Labour Party
The HSE has imposed the ban on the recruitment of frontline staff, promotions, pay rises, and agency staff for September in a bid to address the health service's financial problems.
Hospitals have overspent by close to €140 million to date and millions more than planned have been spent on primary and community care services.
In a statement this evening, the HSE's national director of finance Liam Woods said the "key priority is to ensure that the expansion of services, as has been delivered by the HSE each year since its establishment, is maintained".
He said the HSE would continue to work to achieve a balanced budget and sustain its services without compromising patient care.
"To date this year, the HSE has already exceeded its targets and has treated substantially more people than the same period last year," Mr Woods said.
Liam Woods, HSE
"We have a duty to deliver a balanced budget and report on this to the Oireachtas. This is one element of the ongoing management of the HSE as it reviews monthly the finance and performance of the organisation. Our priority is to ensure that patient care is not compromised and that we ensure that we maintain the high level of service being provided," Mr Woods said.
"That is why we are taking these measures - to protect our developments to date and ensure we continue to expand the services we provide. This is a dynamic process and it's important to remember that the HSE's overrun currently is at 1 per cent of its overall budget - €170 million out of a budget of €14 billion."
Mr Woods said over 20,000 more patients have been treated in acute hospitals on both an in-patient and day case basis compared with last year.
"Almost 8,000 people received home care packages in first seven months of this year - more than double the number for the same time last year," he added.
Citing other improvements, Mr Woods said day case attendances and outpatient attendances were up 11 per cent and almost 6 per cent respectively compared to the same time last year.
The HSE also said employment in the health service has increased "significantly" this year and already over 2,500 new posts have been approved nationally.
National director of HR, Martin McDonald said that while there had been a "pause" in relation to one aspect of the recruitment process, the processing of employment applications already on hand is continuing.
Interview dates for applicants for posts in the health service would also continue as planned and that applicants should not assume otherwise.
"This is a corrective financial measure to temporarily pause any further growth in payroll costs while the forecast financial outturn for 2007 is brought to the level approved by the Oireachtas for the year," Mr McDonald said.
The Irish Hospital Consultants' Association (IHCA) said it was "appalled" that front-line clinical services are to be "severely restricted in the rush to balance the HSE books". It said the HSE had failed in its obligations to patients.
In a statement, the IHCA said: "According to the HSE, at some stage every year, everybody in Ireland will use one or more of the services it provides. They are of vital importance to the entire population. In failing to manage its financial affairs, the HSE has failed in its fundamental obligations to patients.
"The IHCA had hoped that the establishment of the HSE would lead to a leaner, more efficient and transparent service provider. By directly cutting front line patient services, the HSE has called its own existence into question."
The Labour Party's health spokeswoman Liz McManus claimed the restrictions were an attack on the interests of patients.
"The health service simply cannot operate without replacing key staff," the Wicklow TD said. "While we recognise the need to keep costs under control, a blanket ban that makes no differentiation between the replacement of a cancer care nurse on the one hand, or the recruitment of an additional PR person on the other, simply cannot be justified under any circumstances."