Two More Hospitals Found in Breach of Public Pay Compliance

Two additional voluntary hospitals have been identified as non-compliant with public pay scales, raising the total number of such institutions to four. The findings follow an earlier report from The Irish Times, which disclosed that the salary of Emer Martin, chief executive of St John’s Hospital in Limerick, had been elevated to a higher pay bracket, causing significant tensions with the Health Service Executive (HSE).

In response to these discrepancies, the Department of Public Expenditure instructed the HSE to review the salaries of other voluntary hospitals, many of which receive state funding but are managed by boards or religious organizations. Anne Marie Hoey, the HSE’s chief people officer, reached out to heads of voluntary hospitals in October, emphasizing the necessity for compliance with statutory pay rules established by the Department of Health.

Hoey stated, “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 also noted that non-exchequer sources of funding cannot be used to supplement approved remuneration rates.

Among the hospitals reviewed, Peamount Healthcare, a rehabilitation centre located in South Dublin, reported that the salary of its chief executive, Tanya King, is “deemed not to be pay-compliant” with the consolidated salary scales. According to a response obtained through the Freedom of Information Act, a letter from Derek Montgomery, chairman of Peamount Healthcare, confirmed that King earns €140,747, which places her at the top of the “H3” salary scale. In contrast, the public pay scales stipulate that her salary should fall within the “H2” bracket, which ranges from €99,829 to €106,866.

King did not provide a comment when contacted regarding her salary compliance.

Further Non-Compliance Identified at the National Orthopaedic Hospital

The National Orthopaedic Hospital Cappagh (NOHC) also informed the HSE that its chief executive, Angela Lee, is compensated within the assistant national director salary range, which spans from €126,206 to €154,250. The hospital maintains that this arrangement was sanctioned by the CEO of the Ireland East Hospital Group, the HSE hospital group overseeing NOHC.

Nonetheless, the salary scales classify the hospital as “H2,” indicating that its chief executive should earn between €99,829 and €106,866. In response to inquiries, NOHC asserted that it does not agree with the claim of non-compliance. A spokeswoman stated, “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.”

The spokeswoman further clarified that the chief executive is solely on a basic salary and does not receive any additional payments, bonuses, or allowances.

The Irish Times previously highlighted that Deirdre Hogan, chief executive of the Royal Hospital in Donnybrook, also faced similar compliance issues regarding salary.

When questioned about actions being taken to ensure adherence to pay scales, a spokesperson for the HSE stated that these hospitals are “obliged” to implement 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,” the spokesperson added. “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.”

As these compliance issues unfold, the ongoing scrutiny highlights the challenges faced by voluntary hospitals in navigating pay structures while adhering to governmental regulations.