Beleaguered health bosses have insisted their work merits a financial bonus as they revealed NHS Tayside requires more than £200 million to break even.
NHS Tayside chief executive Lesley McLay and finance director Lindsay Bedford argued their 2.3% bonus was justifiable despite revelations the health board is staring into the financial abyss.
The sanctioned bonuses mean Ms McLay benefited to the tune of almost £3,000 and Mr Bedford close to £2,000.
In total, 66 NHS Tayside senior management staff received performance-related bonuses totalling £87,000 last year.
Facing questions from MSPs on the Public Audit Committee, sitting in Dundee, health board chiefs conceded £214 million must be saved over the next five years.
In doing so, they claim brokerage paid by the Scottish Government can be repaid and necessary cost-cutting deployed.
External auditors Pricewaterhouse Coopers argue the future of the health board is not sustainable without “very radical change”.
Ms McLay and Mr Bedford were both evaluated as having operated at a “fully acceptable” standard and were sanctioned bonuses on top of their salaries by the National Evaluation Committee as a result.
The justification of the bonuses was questioned by MSPs present on the committee.
The SNP’s Colin Beattie said: “Fully acceptable means you have done your job. We’re rewarding people for doing their jobs.
“I find that difficult to get my head round. Isn’t that sending out the wrong message when NHS Tayside is in its current situation?”
Asked by committee chair, Dundee-based MSP Jenny Marra, if she thought the awards were merited, Ms McLay said: “Yes, I do. Clearly, I am fully aware of the financial challenges NHS Tayside has.
“I believe my performance was awarded on the work that I was doing as the leader of the organisation and work about building sustainable plans that were gong to bring the board back into balance.”
Despite having to find roughly £43 million worth of savings each year for the next five years, health board management insist there is “no intention” to cut jobs.
Asked to guarantee job losses will not take place, chief executive Lesley McLay said: “There is no forecast for job losses. This is absolutely not about job losses.
“There is an opportunity to redesign and do things differently. That can reduce the head count, but there is no intention of cutting jobs.”
The board’s financial planning came under fire from SNP and Labour MSPs alike.
Former health secretary Alex Neil cast doubt over the ability of the health board to meet its saving targets and said their financial planning amounted to “putting your finger in the air and estimating”.
Mr Neil said the “hand to mouth” budgeting of the health board had to stop and a clear five year business plan offering “line for line savings” is required.
He added: “The people of Tayside and the tax payer don’t need a wing and a prayer, they need a detailed plan.”
Ms Marra repeatedly questioned Ms McLay and her colleagues over whether they felt they retained the trust of their employees to oversee the savings required.
Speaking after the meeting, she said: “Huge questions still hang in the around over NHS Tayside’s finances and sustainability over the coming months and years.”
Asked if she had confidence in the NHS Tayside management team, health secretary Shona Robison said: “NHS Tayside’s leadership team has put in place a long-term plan to return to sustainable financial balance that we expect them to deliver, which includes tackling where operating costs are above the national average, and we are confident the plan can be delivered.”
