HSE staff numbers could be cut on a voluntary basis, Minister for Health Mary Harney told the Dáil.
She said that about 16 per cent of the staff in the health system were in administrative roles, a figure which was at 18 per cent in the NHS.
"The HSE is currently carrying out an audit of management and administration, which I support.
"I am not saying we have the right balance. There is scope for a voluntary redundancy programme and I hope that can be discussed in the new health forum that will be established."
Labour health spokeswoman Jan O'Sullivan said there had been an increase in "grade eight" managers from 10 in 2000 to more than 500 at present.
Ms Harney said the grade eight title had been introduced as a result of an industrial relations agreement. Staff would previously have held other titles such as hospital managers, disability service managers, accountants, industrial relations officers and IT personnel.
"That explains why the numbers of posts categorised as grade eight was very low in 2000. However, I share the concerns about the growth in posts at grade eight from 521 to 713 between late 2005 to June 2007."
She said that as part of a new employment control framework, introduced in December 2006, the HSE was now required to get her department's approval for the filling of posts at grade eight or above. "Despite the controls that are in place now, the numbers are running ahead of expectations. I am awaiting a report from the HSE on this."
Ms Harney said that close on 130,000 people were employed in the delivery of public health and personal social services, the vast majority of whom provided direct service to patients and clients. Staff costs made up almost 70 per cent of the HSE's overall budget.
Fine Gael health spokesman Dr James Reilly claimed the HSE would not answer queries from TDs. "When we ask questions, we get facetious questions. I asked a question on ambulance services and trolleys and I was given an answer which made absolutely no sense.
"There is no transparency in the HSE and not even the Comptroller and Auditor General can get a response. Where is the evidence of the increased productivity of this large number of bureaucrats in the HSE?"
Ms Harney said that one of the challenges to be faced was to make sure that staff numbers were in line with approvals from the Department of Health and the Department of Finance.