The expansion of a hospital in Limerick is now at risk due to an escalating row between the Health Service Executive and the board of the healthcare facility over the rate of pay to its chief executive.
In August, The Irish Times revealed that the salary of Emer Martin, chief executive of St John’s Hospital in Limerick, was increased to that of a higher pay band - breaching the consolidated public pay scales.
According to the HSE, the hospital is considered H2, under which chief executives can earn between €99,829 and €106,866.
However, the board in 2023 agreed to increase Ms Martin’s salary to that of a H3 hospital, which has a salary scale of between €119,571 and €140,747
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Tensions between the bodies have increased significantly in recent months, according to correspondence released under the Freedom of Information Act, with the HSE repeatedly demanding the hospital reduces Ms Martin’s salary.
In a letter on July 15th, Sandra Broderick, regional executive officer of HSE Midwest, told Bishop Brendan Leahy, chairman of the hospital board, that failure to correct Ms Martin’s salary “places both the board and the employee at significant risk, including implications for pension entitlements”.
Ms Broderick followed up with another letter a month later on August 19th, stating it was “regrettable” she had not received a response, adding she “urgently” required confirmation the correct pay was in place.
“Failure to comply may result in delayed progression to planned developments for St John’s,” the letter said.
The hospital in recent years announced an expansion plan which will see 78 new beds, 42 of which will be additional capacity. The organisation has described the expansion as bringing “the hospital into the 21st century”.
Bishop Leahy responded to the HSE on August 22nd, stating it was not a “simple issue of compliance or otherwise” and was “far more complex than that”.
“It is also regrettable that the matter is now linked with the progression of the planned capital development project. This project, which has been endorsed by the CEO of the HSE, is a completely separate matter,” he said.
“It should not be jeopardised or put in doubt as it has the potential to dramatically increase capacity in Limerick and across the region which is urgently needed for the people of the Mid-West.”
On August 29th, Ms Broderick told the hospital once again that pay must be brought back in line with public pay policy and that the hospital must seek reimbursement for “unsanctioned overpayments”.
Ms Broderick added: “All future developments agreed or otherwise are now paused based on our concerns in respect of governance matters. We require assurance St John’s Hospital are compliant with policy and regulation.”
The HSE was unwilling to clarify whether this statement meant it was now withholding funding for the project. St John’s Hospital did not respond to a request for comment.
