The Department of Health has reportedly instructed the Health Service Executive to draw up plans for up to €800m worth of cutbacks next year.
Reports this morning say the department has asked the HSE to assess how services would be affected by spending cuts ranging from €400m to €800m.
The Department of Finance has ordered all Government departments to have a list of cuts prepared by September 11 as part of efforts to reduce spending by €3bn.
They have been told to use the Bord Snip Nua recommendations as the basis for identifying areas where cuts can be made.