Clampdown on top-up payments for voluntary hospital chiefs

The Government has ordered a clampdown on top-up payments to senior management in State-funded voluntary hospitals and health service agencies above the official salaries.

In a new circular issued on the instructions of Minister for Health James Reilly, the Department of Health said voluntary bodies had to adhere to official salary scales, and in no circumstances should an employee "receive remuneration in the nature of pay and allowances of an amount greater than the amount prescribed".

The circular also maintained that voluntary hospitals or agencies funded by the State (known as section 38 bodies) could not use funding outside of that provided by the exchequer to top-up the approved rate of remuneration for senior managers.

The circular was drawn up last Friday on foot of a controversial HSE internal audit report which found that managers in voluntary hospitals and agencies in the health sector were receiving millions of euro in extra allowances and benefits financed from both State funds and private sources.

The Irish Times reported last Friday that among the top-up payments and benefits to some senior managers using funds allocated by the HSE to the voluntary bodies were private health insurance, motor allowances and extra duty allowances.

The report said there were at least 36 specific allowances and additional benefits being paid by agencies from HSE funds at a cost of €3.22 million.