Tuesday 30 December 2014

Overpaid NHS Mangers - can anyone be worth £600,000 a year?



I’ve been monitoring the huge amounts of money paid to NHS Managers in past articles; here is another Daily Telegraph investigation.

Of course what would be interesting would be to compare the biggest salaries with the quality of treatment in the NHS Trust – I doubt there is any benefit from overpaying managers.

Quite separately the NHS itself has released a study which indicates that NHS mangers are using outdated and inefficient methods which indicates that these payments are unjustified.

Far worse; failure is never punished – they just leave and grab another NHS job somewhere else.

Of course….we are paying for all this.

Oh and care workers who do the real work are earning between one twentieth and one fortieth of these fat cat salaries.

 

Telegraph.co.uk

Tuesday 30 December 2014

The rise of the £300,000 NHS fatcats
 

Investigation discloses doubling in number of NHS managers being paid equivalent of at least £300,000 a year, with some on as much as £620,000 annually

NHS trusts said the payments were justified to secure “high calibre” expertise at short notice.

 

By  Laura Donnelly, Health Editor

 

10:00PM GMT 27 Dec 2015

The number of NHS managers being paid the equivalent of more than £300,000 a year has doubled in just 12 months, it can be disclosed.

In some cases, cash-strapped health trusts are hiring temporary executives for hundreds of thousands of pounds, an investigation by The Telegraph has found.

Patients’ groups said the “exorbitant” rates could not be justified, and nursing leaders said the sums were a “kick in the teeth” for junior staff who were refused a one per cent pay rise.

NHS board reports indicate that during 2013-14, 44 “interim” executives were employed on rates of £1,000 a day — the equivalent of £228,000 a year — compared with 24 the year before.

There was an even sharper increase at the top end of the scale. In the last financial year, 22 executives were paid the equivalent of at least £300,000 a year — compared with 11 the year before and just four in 2010-11. In most cases, the payments were not made directly to the managers, but via agencies, which were able to take a share.

 

Meanwhile, NHS finances spiralled out of control, with trusts running up a combined deficit of £500 million, before the Government announced plans to spend an extra £2 billion next year on the NHS.

 

Rotherham Foundation Trust paid the equivalent of £621,000 a year for the services of Michael Morgan as chief executive. Mr Morgan worked for Rotherham trust for 10 months, until last November.

Accounts for eight of the months show payments of £380,000 plus expenses — the equivalent of £621,000 over 12 months, a sum that would cover the salaries of 28 nurses.

NHS trusts said the payments were justified to secure “high calibre” expertise at short notice.

But the investigation found some managers stayed in post for more than a year, on rates worth far more than the Prime Minister’s £142,500 salary.

Peter Reading was paid £405,000 to be chief executive of Peterborough and Stamford Hospitals Foundation trust. He left in June, after almost two and a half years. Several of the organisations which hired executives at high rates faced major problems.

Colchester Hospitals foundation trust, which last month told patients to keep away from A & E unless their condition was life-threatening, hired two temporary executives, Kim Hodgson and Evelyn Barker, on rates of £387,000 a year during 2013-14.

Medway foundation trust, recently named as having one of the worst A &  Es in the country according to patient surveys, paid Nigel Beverley rates of £1,740 a day until he left just before an inspection found A &  E in a “state of crisis”.

Some individuals saw their pay rates soar. In 2010, Ian Miller was the highest paid NHS manager in the England, earning £310,000 for nine months’ work for the South East Coast Strategic Health Authority in 2009-10 — which equates to £400,000 a year.

Last year he was paid £251,000 for five months’ work as director of finance at Maidstone and Tunbridge Wells — the equivalent of £602,000 a year.
 
In 2012, the NHS said senior managers should not be employed “off payroll” — often through an agency — except in exceptional circumstances that should never last more than six months. But the 10 highest earners were all employed off payroll, in some cases through companies they owned or controlled, and three stayed more than six months.


The payments included VAT, and there is no suggestion that any individuals were using their off-payroll status to avoid paying tax or national insurance contributions.

Others moved from trust to trust, often commanding the same high rates while keeping within the “six-month” rule.

Although trusts do not have to pay national insurance and pension contributions for managers who are off payroll, in some cases they have paid significant expenses.

Rotherham paid £7,000 a month to cover the expenses of Mr Morgan and two colleagues paid via a consultancy firm, amounting to an extra £84,000 a year between the three.

Katherine Murphy, chief executive of the Patients Association, said the spending was “unacceptable.” She added: “Investment is urgently needed on the front line.”

Dr Peter Carter, chief executive of the Royal College of Nursing said: “For sums this large to be spent instead on paying temporary managers is a kick in the teeth to nurses and a blow to patient care.

 

Rotherham trust said the majority of those it hired on an interim basis, including Mr Morgan, were no longer working for the organisation.

A spokesman added: “The majority of board members who were on the Board 18 months ago when the contract was awarded, are no longer working for the trust; this includes the chief executive and chairman.”

Maidstone and Tunbridge Wells said the sums paid to Maxentius specialist financial support, which provided Mr Miller’s services, “provided independent financial expertise that was essential in helping the Trust achieve £23.5 million in efficiency savings last year without impacting on patient care”.

Peterborough and Stamford Hospitals said payments for Dr Reading’s services did not include any provision for pension, holiday pay or sick pay adding that the trust was not able to recruit a permanent candidate at the time.

Colchester Hospital foundation trust, which has been in special measures since October 2013, said its exceptional circumstances required “outstanding leaders with the right skills and experience.”

Monitor, the regulator for foundation trusts, which was responsible for the appointments to Medway, said trusts with failing leadership sometimes needed to appoint senior staff on an interim basis.

 

The paychecks:

 

Michael Morgan chief executive, Rotherham Foundation Trust

Payment during 2013/14: £380,000 plus expenses to work 7 months, 3 weeks

Annual equivalent: £621,000 including expenses

 

Ian Miller, director of finance, Maidstone and Tunbridge Wells Trust

Payment during 2013/14: £251,000 to work 5 months

Annual equivalent: £602,000

 

Peter Reading, chief executive, Peterborough and Stamford Hospitals Foundation Trust

Payment during 2013/14: £405,000 to work all year

 

Antony Sumara, chief executive, Royal Bolton Foundation Trust

Payment during 2013/14: £105,000 to work 12 weeks

Annual equivalent: £399,000

 

Nigel Beverley, chief executive, Medway Foundation Trust

Payment during 2013/14: £40,000 to work 7 weeks - trust said he was on daily

rates of £1,740

Annual equivalent: £397,000

 

Kim Hodgson, chief executive, Colchester Hospitals Foundation Trust

Payment during 2013/14: £95,000 to work 11 weeks

Annual equivalent: £387,000

Evelyn Barker, chief operating officer, Colchester Hospitals Foundation Trust

 

Payment during 2013/14: £95,000 to work 11 weeks

Annual equivalent: £387,000

Jon Scott, chief operating officer, Kettering General Hospital Foundation Trust 

 

Payment during 2013/14: £135,000 to work 4 months, 1 week

Annual equivalent: £383,000

 

Colin Gentile, director of finance, Dartford and Gravesham Trust

Payment during 2013/14: £185,000 to work 6 months

Annual equivalent: £370,000

 

Bill Boa, interim director of finance, Burton Hospitals Foundation Trust 

Payment during 2013/14: £134,000 to work 6 months

Annual equivalent: £368,000

 

All figures taken from trusts’ annual reports and other documents.

Rotherham Foundation Trust paid an additional £7K a month for expenses for Mr Morgan and two colleagues: a third share of this has been included in calculations of his yearly cost to the trust. 
Neil Harris
(a don't stop till you drop production)

Home:  helpmesortoutthenhs.blogspot.com

Contact me: neilwithpromisestokeep@gmail.com
 

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