James Reilly claims this is the toughest Budget yet for the Department of Health.
The Minister for Health, speaking in the wake of the budget, said €666m in savings will be needed next year, of which €113m will come from withdrawing medical cards.
He warned there are more difficult times ahead for the sector.
"Our system has been under huge pressure," he said, citing the 10% reduction in staff and €3bn reduction in budget in recent years.
"We are going to face a really, really challenging year this year. This is the year we get out of the bailout, but for health, this is the most challenging year that we've had yet."