National Maternity Hospital faces fine for continuing top-ups

The National Maternity Hospital in Dublin is facing fines from the HSE for continuing top-up payments to senior executives.

The HSE said, in a report to the Dáil Public Account Committee and the Oireachtas Health Committee, that the National Maternity Hospital had been deemed to be non compliant with Government pay policy.

The Irish Times reported last year that an audit carried out by the HSE into top-up payments to senior executives in voluntary hospitals and agencies funded by the exchequer – known as Section 38 bodies – had found that additional money from private sources was paid to three managers at the National Maternity Hospital. The amounts ranged from €30,000 to €39,000 a year.

A document subsequently drawn up by the Department of Health said the privately funded additional payments were made to the secretary manager, the director of nursing and the financial controller at the hospital.

The report given to the Oireachtas committees on Monday said the National Maternity Hospital had indicated the three employees were “in receipt of remuneration not in line with Department of Health pay scales and that contractual entitlement existed.

“They have not provided the necessary documentation in support of this entitlement to the HSE, citing confidentiality.”

The HSE said the hospital was not in compliance with Government pay policy and the matter was being addressed by its national director for acute hospitals in the context of its service level agreement with the National Maternity Hospital.

Last year the HSE indicated funding cuts would be considered for agencies which continued to breach official pay policy by making top-up payments to executives.

It suggested cuts could be imposed on areas that would not impact directly on frontline services such as for capital projects.

The HSE said at the time that where a body did not stop paying the allowances, it would consider “a different relationship” with the organisation

The National Maternity Hospital receives about €45 million in State funding a year.

The HSE told the Oireachtas committees on Monday that 25 health agencies had made submissions seeking official permission to continue to pay specified additional payments or perks to 84 named employees.

The HSE said these employees were deemed to have an entitlement by virtue of their contract and the voluntary hospitals and agencies had sought approval to continue to make these payments on a person-to-holder basis .

The HSE has asked the Department of Health to sanction these payments.

“The support for all cases has been given on the strict understanding that once the current post holder no longer holds the roles and responsibilities attaching to the role, the non-compliant remuneration will cease,” it said. “ In addition, future appointments to the role will be in line with the Department of Health pay scales.”

This application is understood to be still under consideration by the Department of Health.

The Irish Times reported in September 20113 a confidential HSE internal audit had found senior personnel in voluntary hospitals and agencies got more than €3.2 million in allowances and benefits on top of official salary rates.

The top-up revelations led directly to the issue surrounding payments made to senior personnel in the Central Remedial Clinic, and ultimately the Rehab controversy.

Section 38 organisations receive their funding directly from the State and their employees are considered to be public servants.