The Minister for Health has refused to become involved in the dispute at University College Hospital in Galway, saying that it is not his job to sort it out. He also warned other health boards that they were on their own if in difficulty with budget overruns.
Mr Cowen said yesterday the situation was made "very clear" to all health boards at the beginning of the year when new legislation was introduced where health boards could not exceed their annual budget allocation. "It's important that these local issues are deal with locally."
The Minister said he had to be able to "stand over" budgets that had already been agreed.
Over 300 people attended a meeting in Galway last night to protest against the Western Health Board's decision to close two wards and an operating theatre at University College Hospital, Galway because of the budget overrun.
Last night's meeting was organised by the Community Health Response Group, a non-political inter-denominational organisation established in 1993 to fight against cutbacks at the hospital at that time. The chairman of the group is hospital consultant Mr Jack McCann.
Among those attending the meeting were medical and non-medical staff from the hospital, local politicians and the 47 temporary nurses who face being sacked as a result of the Western Health Board's decision.
Earlier yesterday, SIPTU and the Irish Nurses' Organisation, the two unions representing hospital workers who have vowed to fight the ward closure, held a meeting with the Junior Health Minister, and Galway West TD, Mr Frank Fahey, and members of his Department.
After the meeting SIPTU spokesman Mr Michael Kilcoyne said some progress had been made.
The three parties issued a joint statement stating that the Minister was pleased with the union's willingness to re-engage in discussions with health board management. Mr Fahey said that in the longer term a corporate board should be established in University College Hospital
"I understand the Western Health Board's chief executive officer, Dr Sheelagh Ryan, is considering appointing such a board.
"University College Hospital Cork already has one which is made up of three consultants, the director of nursing and a general manager."