A further two voluntary hospital chief executives’ salaries have been found to be in breach of public pay scales, bringing the number to four.
Earlier this year, The Irish Times revealed that the salary for the chief executive of St John’s Hospital in Limerick, Emer Martin, was increased to a higher pay bracket which has resulted in significant tensions between the hospital board and the Health Service Executive.
Following this, the Department of Public Expenditure asked the HSE to examine the salaries of other voluntary hospitals, which tend to be State-funded but run by boards or religious institutions.
HSE chief people officer Anne Marie Hoey wrote to the heads of voluntary hospitals in October requesting confirmation that chief executive salaries were compliant with statutory pay rules, which are set out by the Department of Health.
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“These salary scales must be strictly adhered to and employees should not receive remuneration in the nature of pay or allowances in excess of these approved amounts,” she said.
“Non-exchequer sources of funding may not be used to supplement approved rates of remuneration.”
According to a response, obtained under the Freedom of Information Act, Peamount Healthcare, a rehabilitation centre in South Dublin, said the salary for its chief executive, Tanya King, is “deemed not to be pay-compliant” with the consolidated salary scales.
A letter from Derek Montgomery, chairman of Peamount Healthcare, and Ms King, confirmed she is in receipt of a salary at the top of the “H3″ salary scale, equalling €140,747.
However, according to the consolidated public pay scales, the chief executive of the hospital should be in receipt of a salary in the “H2″ bracket, which ranges from €99,829 to €106,866. Ms King did not respond to a request for comment about the compliance of her salary.
The National Orthopaedic Hospital Cappagh (NOHC) told the HSE its chief executive, Angela Lee, receives the assistant national director salary, which has a scale of between €126,206 and €154,250.
The hospital added that the salary was “approved by the CEO [chief executive] of the Ireland East Hospital Group”, the HSE hospital group under which it falls.
However, the salary scales state the hospital is a “H2″ and as such, its chief executive’s salary should be between €99,829 to €106,866.
In response to queries, NOHC said the hospital “does not accept the assertion that the CEO is in breach of the consolidated pay scales”.
“In advance of the CEO taking up the post, HSE correspondence at the time confirmed the permanent appointment and set out the recommended pay basis for the CEO role (assistant national director), which was ratified by NOHC,” said a spokeswoman.
“The CEO post is remunerated within the consolidated scale applicable to the grade applied, as approved by the HSE.”
The spokeswoman added that the chief executive receives a “basic salary only”.
“There are no allowances, bonus, premia, overtime payments, car allowances, honorarium, or any other additional pay elements. The CEO is a member of the voluntary hospital superannuation scheme with no additional pension top-up,” she added.
The Irish Times previously reported that the salary for Deirdre Hogan, chief executive of the Royal Hospital in Donnybrook, was also non-compliant with pay rules.
Asked what it is doing to ensure compliance with pay scales, a HSE spokesman said these hospitals are “obliged” to implement the Government-sanctioned salaries.
“Where an organisation has appointed its CEO at a rate higher than that sanctioned, it has been notified that it is a breach of the pay policy,” said the spokesman.
“The organisation is reminded of the terms of the service agreement between the HSE and the organisation regarding its requirement to meet the public health sector pay policy.”
