The HSE said it will cut cash funding by a fifth from two of the country’s biggest hospitals from next week until they are compliant with public pay policy.
In a submission to the Public Accounts Committee released tonight, St Vincent's University Hospital and St James' Hospital were listed among five institutions found to be in breach of rules for Section 38 agencies surrounding the use of additional payment allowances and now risk a reduction in State funding.
The Brothers of Charity South and South East as well as St John of Gods were also named by the HSE.
It is the latest development in the top-up scandal which came to a head last year with revelations surrounding details of payments at the Central Remedial Clinic (CRC).
“In respect of the five agencies who remain ‘not compliant’ the HSE has written to those agencies advising them that, as a sanction, the HSE will, with effect from 21st February 2014, reduce their cash funding by 20 per cent until such time that they provide confirmation that they are compliant,” the executive said in a statement tonight.
“It is important to note that this reduction in cash funding is not a budget cut and therefore should, under no circumstances, impact on the provision of services to patients or clients,” it said.
A detailed audit of Section 38 agencies and whether or not they were in compliance with pay policy began last December.
Consequently, some organisations have ceased using top-ups while others are in the process of submitting a “business case” to the HSE outlining why they feel they should be maintained.
According to the HSE, 10 agencies are compliant and 27 have made a total of 88 individual submissions for retention.
"Where the review panel is satisfied that there are legitimate reasons for the continuation of an allowance, business cases will be submitted to the Department of Health which will liaise as appropriate with the Department of Public Expenditure and Reform prior to the consideration of any allowance in line with public pay policy," it said tonight.
In a statement St Vincent’s Hospital said it was “ engaged in a process with the HSE and will not be making any further comment”.
Siptu health divisional organiser Paul Bell called on the HSE to guarantee that services would not be negatively impacted.
“I have serious concerns about this approach to addressing the salary non compliance issue as it may not yield the intended result.
“Our members providing frontline services in the identified institutions and services are deeply concerned that vulnerable patients and service users may suffer if the financial cut is applied in general terms by the HSE and as such will not have the desired impact on the salary’s of those executives deemed not to be in compliance with public service pay policy” said Mr Bell.
