The HSE South West has imposed a hiring freeze and tighter spending controls.
It comes as the Health Service revealed it was €250 million over budget for the first three months of 2026.
HSE South West, which covers Kerry and Cork, have been instructed to limit spending on overtime, agency staff and recruitment.
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The region will also see a pause in recruitment for non-frontline and non-critical roles.
According to the Irish Examiner, HSE South West overspent their budget by 7.6% between January and March, recording a deficit of over €37 million.
The HSE says the measures are aimed at avoiding any impact on patient services later in the year.
