The move came just before a HSE deadline on March 31 which would have seen the group hit with budget cuts of up to 20% if it did not comply.
Current CEO Nicholas Jermyn is resigning as boss of the public hospital and will work exclusively as head of the group, which includes the private hospital and St Michael’s. This creates a vacancy as CEO of the public hospital, which will be filled on a interim basis by Killian McGrane.
Structural changes will also be introduced to separate the two different aspects of the group, which is ultimately owned by the Religious Sisters of Charity.
The changes bring the group onside with public pay policies.
On December 23, it emerged that Mr Jermyn had been receiving two salaries, which saw him earn €292,669 a year. The HSE had been providing €136,282 but the board of SVHG Ltd had also been paying him €136,591 to run its private commercial operations.
The private part of the group has an income of €100m a year and the board claims the facility results in reduced pressure on the public unit. This arrangement is the subject of an audit by the HSE into pay policy at Section 38 voluntary groups.
The HSE said it would not comment on Mr Jermyn’s resignation from his public role while the audit was ongoing.
St Vincent’s had been criticised for the manner in which it eventually revealed the nature of Mr Jermyn’s salary arrangements in the wake of a similar controversy at the Central Remedial Clinic.