HSE spent €51m on spin doctors

By Conall Ó Fátharta

Tuesday, February 24, 2009

THE Health Service Executive spent more than €51 million on spin doctors since 2005, including a staggering €16,000 a month on a personal communications adviser to chief executive Brendan Drumm.

The figures were released as it emerged the deficit faced by the HSE this year could be more than €1.1 billion.

The documents released to the Irish Examiner under the Freedom of Information Act show Prof Drumm’s "inner cabinet" were among the biggest winners from the massive pay-outs.

In the first six months of last year, the HSE paid €83,895 to Prof Drumm’s personal communications adviser Karl Anderson. Mr Anderson is paid a monthly rate of more than €16,000. Contracted by the HSE for 183 days’ work, Mr Anderson has earned in excess of €600,000 since 2005.

Another adviser to Prof Drumm, Maureen Lynott, was paid a total of €126,608 in the first six months of 2008. Ms Lynott, a former chairwoman of the National Treatment Purchase Fund, earned €317,005 in 2007 and €264,638 in 2006 for her services, bringing her total to well over €700,000 since 2006.

Human resources consultant Maureen McGrath was paid €147,828 for the first six months of 2008. This despite the fact that the HSE already has a national director of human resources, Seán McGrath.

The list of external consultants used by the HSE shows a large number are hired for HR consultancy purposes. In 2006 and 2007, Ms McGrath’s company was paid €590,976 for its services.

Public relations firms have also benefited from being on the HSE books. In 2007, Wilson Hartnell public relations firm was paid €481,812 for "public relations support" to the HSE.

In the same year, Janet Hughes was paid in the region of €17,500 for her public relations advice.

Phil Flynn, the former banker and trade union leader, who was investigated as part of the Garda inquiry into IRA money-laundering as a result of the Northern Bank robbery in 2005, is also on the books of the HSE.

In 2008, Mr Flynn was paid €52,126 for mediation and arbitration services in negotiations between the HSE and the public service trade union, IMPACT.

The extent of the spend on outside consultants comes as the HSE held a special meeting to discuss a range of cost-cutting measures including possible cuts to core pay, overtime, patient services and pay for junior doctors.

Speaking following the meeting, Prof Drumm said as the economy worsened it was very difficult to predict precisely what the deficit will be. He said the HSE would brief the Government as to the extent of the financial challenge facing the organisation and "will propose a series of actions in order to redress the emerging situation".

"While the economic situation poses significant challenges, the HSE will seek to minimise the impact on services," the statement read.

This appeared in the printed version of the Irish Examiner Tuesday, February 24, 2009