An elderly woman with gangrene in both feet was admitted to hospital only after a charity offered to pay, the Dail heard.
Labour's health spokeswoman, Ms Liz McManus, said the woman, who lived alone, was told she would have to wait five weeks for a hospital bed but she was admitted when the Society of St Vincent de Paul offered to pay for a private bed.
The Minister for Health, Mr Martin, was "deeply disturbed" by the account of the case, which occurred in a Dublin hospital in August 1999. He agreed it highlighted the issue of eligibility and access and it "should not have happened in this case, irrespective of the context of the system we have".
However, he rejected suggestions by Ms McManus that he was throwing money at the problem and was making no difference.