Minister for Health Simon Harris is considering introducing new performance measures for hospital managers, with a particular focus on how they manage their budgets.
Mr Harris has been given two weeks by Taoiseach Enda Kenny to draw up proposals in this area.
It is understood Mr Harris will move to establish a new unit aimed at assisting hospital managers, which will have specific funding and expertise in the area.
In return, the hospital managers will be asked to commit to remaining within budget and are to be held personally responsible if they do not.
In the proposals, still being considered by Mr Harris, managers who stick to their allocated funding will be rewarded.
Any deficiencies identified will be examined by the performance management unit.
It is understood the Minister is to meet the chief executives of the State’s hospital groups next month to explain the measures.
He will outline the “explicit need”to stay within the budgets allocated to them.
Additional funding
Mr Harris is expected to insist that no further monies will be made available after the additional €500 million in funding that has recently been allocated to his department.
A spokeswoman for the Minister said no decisions had been made on the performance management unit.
Mr Harris informed the Taoiseach and HSE director general Tony O’Brien of his plan at a meeting of the Cabinet sub-committee on health last week.
Mr Kenny asked Mr Harris and his officials to come up with concrete proposals inside a fortnight.