The group set up over a year ago to plan the reorganisation of hospital services across the State along the lines set out in the Hanly report has been officially disbanded.
Confirmation of the decision by the Minister for Health, Ms Harney, came after she met with the businessman due to chair the group, Mr David Hanly, yesterday.
It is understood the decision has been made because the group has never been able to advance its work as a result of having been boycotted by hospital consultants in protest at the introduction without agreement of a new way of insuring their practice.
The recently established National Hospitals Office, set up under the Health Service Executive (HSE), will be asked instead to look at how hospitals should be reorganised.
Mr Hanly, who was due to chair the Hanly II group, also chaired the group which drew up the original Hanly report, Hanly I, which made proposals for just two regions - the Mid-West and East Coast Area Health Boards. Its proposal that A&E units in Nenagh and Ennis, as well as St Columcille's Hospital in Loughlinstown, Dublin, be replaced by nurse-led minor injury units caused consternation.
Hospital action groups were formed across the State and they threatened to run anti-Hanly candidates in the next election.
In a statement following her meeting with Mr Hanly yesterday, Ms Harney said she was committed to investment and reform to achieve regional hospital services that will have the confidence of patients in terms of safety and availability.
She said the Hanly report (Hanly I) was "a significant piece of work aimed at achieving regional self-sufficiency in the health services". This was a concept she agreed with.
Furthermore, Ms Harney said she was committed to providing consultant-led services, new paramedic services and the organisation of services around hospital networks, key themes in the Hanly report.
And she said Mr Hanly would continue to be available to advise her on the reform of the health services.
However, his contract has not been renewed by the Department of Health to provide advice on a formal basis into the future on hospital reorganisation.
Observers believe Ms Harney wants to continue with reforms along the lines set out in Hanly I but wants them distanced from the name Hanly.