Hospital CEO Apologizes for €1.4 Million Contract Issue

The chief executive of St James’s Hospital in Dublin has publicly apologized following the revelation that the hospital paid over €1.4 million to a company owned by its own staff without a formal contract. Professor Mary Day is set to address the Public Accounts Committee (PAC) on Thursday, admitting that the hospital “did not meet the standards expected of us” in handling the procurement of diagnostic services.

According to regulations, public bodies like St James’s Hospital are required to conduct public competitions for services and goods exceeding a threshold of €50,000. The issue was brought to light by Seamus McCarthy, the comptroller and auditor general, who identified the lack of a formal contract during a PAC session last November. He also noted that employees involved in the ownership of the company had failed to declare their interests, which is another legal requirement.

In her upcoming testimony, Professor Day will express regret on behalf of the hospital, stating, “I wish to apologize for the fact that some radiology services in 2024 were not procured through a public tender process.” She emphasized that the decision was made to address urgent patient needs, particularly in cancer and cardiology care, to prevent delays that could harm patients.

The CEO explained that the hospital sometimes faces unexpected circumstances that necessitate a quick response to urgent demands for diagnostic scans. “We have to balance the need for public procurement with the immediate requirement to avoid potentially harmful delays in diagnosis and treatment,” she said.

The hospital reported receiving 28 adverse incident reports in 2024 linked to delayed diagnoses due to restricted access to the diagnostic services provided by the staff-owned company. Professor Day maintained that the cost per diagnostic scan was “reasonable” under the circumstances.

As St James’s Hospital prepares to face the PAC, the leadership is under scrutiny regarding its procurement practices and internal compliance with regulations. The commitment to improve processes and ensure transparency in future dealings will likely be a focal point of the discussion.

This incident highlights the importance of adhering to public procurement guidelines, particularly in healthcare settings where timely access to services can significantly impact patient outcomes.