Published Tuesday, 27 October 2009
Mr McGimpsey said the recent Executive decision to grant an extra £40m for the vaccination and treatment programmes had eased the financial pressure facing health trusts.
The minister has also confirmed around £20m is being released to trusts to help them meet waiting time targets.
This will include the resumption of private treatment to maintain reduced waiting times.
"Now that I have clarification on my total budget for 2009/10, I am able to reject those proposals which would have had a significant impact on front-line services and had caused concern among the public," he said.
The Belfast Trust had said its proposed cuts were in response to Department of Health demands for efficiency savings of £700m across the trusts.
Its plan would have seen up to 150 beds axed at the Royal Victoria and the City Hospitals.
But Mr McGimpsey said on Tuesday: "I have carefully considered all of the trusts' contingency plans which were needed to address the funding shortfalls I faced."
This included help in meeting the £64m estimated costs of swine flu, to which he has contributed £32m. He received an extra £40m following a recent meeting of the Executive.
Finances have also been boosted by the latest assessment of the employers' contribution to staff pensions next year, which has reduced the cost pressures on trusts.
The British Medical Association (BMA) had warned of the danger of rising waiting lists because tightened funds were affecting the practice of sending patients for private care to meet waiting lists.
The minister said an extra £20m was being released to the trusts to help sustain work to meet waiting time targets.
He added: "However, given the fact that demand for services is rising at 9% each year while funding this has grown by only 0.5% above inflation, I have had to make some very difficult decisions and trusts still face considerable challenges in balancing their books.
"This has included delays to much-needed service improvements. In addition, there will be a continued focus on bringing down the costs of agency staff and a wide range of stringent cost control measures."