The Taoiseach has said publicly-funded hospitals should reflect Ireland's diverse range of religious beliefs - rather than just Catholicism.
It comes after a new report called for hospitals run by religious orders to remove Catholic statues and crucifixes if a patient asks.
It found there was no difference in the quality of care between religious-run hospitals and secular institutions.
However, it did question whether the State should continue to fund religious-run hospitals if they refuse to provide abortions or contraception.
Hospitals
On Newstalk Breakfast this morning, Leo Varadkar said religious bodies should have regard for the huge differences in opinion on religion amongst the Irish public.
"Charities and religious bodies that run hospitals and so on should have regard to the fact that in modern Ireland there is now a diversity of views on religion and so on," he said.
"It is the 21st century and a lot of patients and a lot of kids are not religious or maybe are not Roman Catholic and the ethos of an institution that is publicly funded should reflect the public."
These people in Dublin don't think a crucifix on the wall is a big deal:
Mr Varadkar said he does believe there is a place for religion in public spaces.
"I actually believe in the separation of Church and State," he said. "I think that is right."
"What I don't believe in is banishing religion to some sort of private space.
"The way I would have it is I would have a crib and a menorah up for Hanukah and maybe something for Eid as well.
"Maybe recognise and celebrate everyone's traditions in a reasonable way."
A total of 12 hospitals around the country are either owned by faith-based organisations or have religious involvement.