Use of private-sector health managers ‘could hit salaries’

Staff in hospitals could ultimately have to foot the bill themselves in reduced terms and conditions to meet the cost of bringing in highly-paid private sector managers to run services under new Government proposals, the trade union Impact has warned.

Last Thursday the Minister for Health Leo Varadkar suggested that private companies could be allowed take over the management of under-performing public hospitals under future health service reforms.

He also proposed that newly formed hospital groups should have the freedom to make collective agreements and negotiate independent contracts with staff “outside of the constraints of public sector rules in the way semi-State companies do now”.

The Minister’s proposals have been strongly criticised by doctors and the opposition.

Impact, which represents management and administrative grades in the health service, this weekend also raised concerns at the Minister’s comments.

‘Unwarranted salary payments’

A spokesman for the union said that there had already been one instance where a private management contract entered into by the HSE led to “excessive and unwarranted salary payments” in the region of €250,000 being made to an individual who provided services on a consultancy basis.

“The money spent employing just one management consultant would have covered the costs of at least five clerical staff to help the hospitals cope with increasing demands. This illustrates the inherent difficulty in procuring services from a ‘for-profit’ supplier, and in a system that is already burdened with huge agency procurement costs to fill existing gaps.”

“The other item that raises concern is the proposal to give management the freedom ‘to make collective agreements and negotiate independent contracts with staff’. Taking these two issues together, it raises the question as to what protections, if any, would be afforded to hospital staff who might ultimately be forced to foot the bill for the procurement of private management services through their own terms and conditions of employment.”

On Friday the Irish Medical Organisation (IMO) said it was "grossly insensitive and ill conceived" for a Minister to be discussing profit- focussed businesses to run our hospitals in a week when there was a number of high -profile controversies over the treatment of patients.

IMO president Dr Ray Walley said: "This policy will downgrade public service and pave the way for privatisation of our essential health services."

In his speech to the Institute of Chartered Accountants on Thursday Mr Varadkar said that with authority there should also be accountability.

“Where hospitals consistently under perform in terms of clinical outcomes, patient experience and financial management, it should be open to the provider to transfer management of the hospital for a period of time to a private provider by means of a concession or management contract.”