Greater scrutiny of salaries needed in HSE voluntary and community funded agencies – Burke

Excessive pay to CEOs in State funded organisations needs to be addressed

Fine Gael Cork North Central Senator and Seanad Spokesperson on Health, Colm Burke, today (Thursday) called on all organisations that are in receipt of HSE revenue grants but are not under direct control of the Executive to make full disclosures of the salaries of senior management and CEOs. 

Senator Burke was responding to a Health Service Executive 2012 Annual Report, which indicated that over €3.4 billion is paid to hospitals and organisations, which do not fall under the remit of the HSE and the Department of Health, but which are in receipt of substantial funding from the health budget. 

“There are currently 2,680 voluntary hospitals and community organisations that provide wide ranging services on behalf of the HSE and are in receipt of funding in excess of €3 billion. All of agencies provide vital services which the HSE is not best placed to provide and are remunerated for that service provision.

“Many of the organisations operate under service level agreements with the HSE and are required to stay within the HSE guidelines in relation to salary scales.  However, there are a number of them to which adherence to salary scales within public sector norms does not apply.

“There is reason to believe that the salaries being paid to some members of senior management and CEOs at some of these organisations are at an exorbitant level. However, due to the fact wages and salaries are not listed individually, identifying what each senior staff member earns is impossible.

“While these organisations do not get all of their funding from the health budget, many of them get a significant amount of their annual funds from this source.  For that reason it is imperative that each agency clearly sets out what each senior members earns.

“The total HSE expenditure in 2012 was €13.814 billion. Any discrepancy in oversight of public monies should not be allowed to continue.  It is unacceptable, particularly in a Department where cost savings are being sought, that the level of scrutiny of salaries that are being funded from the health budget is increased.

“All agencies operating outside service level agreements should now be compelled to comply with the same salary guidelines that apply to all other HSE sectors and to voluntary hospitals.  It is only by ensuring that the same rules relate to all HSE funded organisations that the taxpayer can receive the best return for their investment and the best use of money can be made.”