Speaking to the reporters in Salem, Palaniswami said the government has held talks with members of the recognized doctor's union and the those on strike belong to an unrecognized union.
He said the government will announce the striking doctors' posts as vacant and fill them up with other candidates.
The government spends about Rs 1.24 crore of tax payer money for each medical student studying in a government college, according to Palaniswami.
While a student in a government medical college spends just about Rs 67,000 for the entire course, a student in a private medical college would be spending about Rs 1.5 crore, he said.
He also said that it is the poor who avail of the services at government hospitals.
Earlier on Wednesday, Health Minister C. Vijaya Baskar had said the strike period will be considered as a break in service if the doctors do not resume duty.
The members of Federation of Government Doctors Association (FOGDA) are on strike to press for settlement of their various demands
Besides pay parity with their counterparts in the Central government, the doctors are also demanding implementation of the time-bound promotion, and a halt to the process of cutting down the number of doctors in hospitals.
( With inputs from IANS )