It's feared local waiting lists will see further increases.
That's after an initiative aimed at improving access to healthcare in the west and northwest was scrapped.
Insourcing saw private companies paid to use HSE staff and equipment after hours to hold special clinics to treat patients on waiting lists, in an attempt to deliver more timely care.
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The Irish Times is reporting the biggest impact is expected in endoscopy and breast services.
Local councillor Ita Reynolds Flynn is a member of the regional health forum west.
She says the withdrawal adds further pressure to the sector:
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