Irish hospital consultants among highest paid in the world

Ireland spends less on health than other western European countries as proportion of GDP

Starting salaries for consultants were cut by 30 per cent in 2012, but the Government is expected to agree to reverse some of this shortly.
Starting salaries for consultants were cut by 30 per cent in 2012, but the Government is expected to agree to reverse some of this shortly.

Irish hospital consultants are still among the highest-paid in the world, despite the cuts imposed during the economic downturn, according to new figures from the Organisation for Economic Co-operation and Development.

Ireland spends less than any other country in western Europe on health as a proportion of gross domestic product, OECD Health Statistics 2014 shows, though spending started to creep back upwards last year.

In a finding likely to be seized upon by those seeking an end to health cutbacks, the OECD says total health spending in Ireland was 8.9 per cent of GDP in 2012, much lower than the 16.9 per cent recorded in the US and allocations of over 11 per cent in the Netherlands, France, Switzerland and Germany.

Irish specialists earned an average €171,000 last year, higher than in any other OECD country except New Zealand and Luxembourg, according to the study. When the figures are corrected for local purchasing power, the pay of Irish specialists is the highest in the OECD apart from Luxembourg and almost twice as high as in the UK.

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The Department of Health said the data refers to specialists working in publicly-funded hospitals and excludes income from private practices.

‘Inconsistencies

’ The Irish Hospital Consultants’ Association said last night that the OECD data had many inconsistencies and distortions.

A spokesman said salary figures for some countries were gross, while others were net. Supplements paid to consultants in the UK were not included, while no data was included for the main countries to which Irish consultants emigrate – the US and Canada.

Starting salaries for consultants were cut by 30 per cent in 2012, but the Government is expected to agree to reverse some of this shortly because senior hospital posts are proving virtually impossible to fill.

Groups representing consultants say highly trained junior doctors and mid-career professionals are emigrating because of low pay and disorganisation in the system.

GP earnings

The study shows average GP income last year was €119,000, compared to €130,000 in Australia.

The Irish figure, while down sharply on previous years, is not comparable because the method of calculation, which now relies on Revenue Commissioners data, has changed.

The average salary of a nurse is given as €51,000, also among the highest in the OECD outside Luxembourg and Scandinavia.

Once again, an international survey shows Ireland to be a world leader in drinking, with a consumption of 11.6 litres of alcohol per adult in 2012.

Although consumption has declined over the past decade, this is still well above the OECD average of nine litres.

The study ranks Ireland fourth-highest of 34 countries for smoking, but this index is based on 2007 figures, and smoking in Ireland has fallen significantly since then.

Health cutbacks

The OECD says health spending in Ireland was reduced sharply in 2010 and 2011 as part of efforts to reduce large budgetary deficits.

Most of the reductions were achieved through cuts in wages and fees paid to professionals and pharmaceutical companies, and through reductions in staff numbers.

While a European Commission report last month said that Irish health spending was above the international average, this was based on expenditure relative to gross national income, rather the GNP, as used by the OECD.

Paul Cullen

Paul Cullen

Paul Cullen is a former heath editor of The Irish Times.