Further investigations will be held into why the National Children's Hospital has become the most expensive in the world.
The Government has confirmed the cost will now rise to €1.4 billion.
It was initially expected to come with a price tag of just €650 million.
Costs have also risen by €400 million since September - that's mostly down to a significant rise in construction costs.
When asked it the price could rise further, the Taoiseach acknowledged: "It is possible".
Illustration of the planned National Children's Hospital
Leo Varadkar acknowledged the hospital may turn out to be one most of the expensive in the world, but insisted it will also be one of the best.
Fianna Fáil leader Micheál Martin, however, said the increasing costs are unbelievable and "beyond comprehension".
The main St James's campus of the new children's hospital in Dublin is expected to open in 2022.