site.btaHospital Managers' Salaries to Be Linked to Performance

Salaries of hospital managers will be linked to the performance and financial results of the hospitals they run, the Health Ministry said Thursday. The measure is expected to reduce expenses by nearly EUR 190,000 per month and more than EUR 2.2 million annually, with the savings remaining in the healthcare facilities.

The change limits the possibility of directors receiving high salaries when a hospital's financial performance does not justify them. It is already in effect in all 34 companies wholly owned by the State.

The remuneration is calculated under a points-based system that takes into account the size of the hospital, as well as its financial performance, liabilities, management efficiency and policies toward medical professionals.

Under the new rules, the maximum monthly salary is EUR 8,930.88 for an executive director, EUR 2,976.96 for a board member, EUR 5,953.92 for a manager of a single-member limited liability company and EUR 2,381.57 for a controller. These cap the salaries for a full score of 16 points; lower scores will result in lower salaries.

The hospital's financial results, profitability and timely payment of current and overdue liabilities will be taken into account. The ability to attract young doctors will also be considered. Hospitals where residents account for more than 5% of staff may receive up to two additional points.

Additional points for care for staff and patients will be awarded only to hospitals using at least 75% of their beds and paying medical professionals the salaries agreed under the collective labour agreement.

The measure covers 60 hospitals in total. It has already been implemented in the 34 wholly state-owned hospitals, while for the remaining 26 with mixed state and municipal ownership, the change will be submitted for approval by their respective general meetings.

The Health Ministry said the measure aims to ensure that directors' remuneration reflects the results of their management and leaves more resources available for hospitals.

In June, the Health Minister said that the monthly salaries of directors of some state hospitals significantly exceeded those of senior government officials, despite negative financial results and losses at the healthcare facilities. She said at the time that the methodology for determining the remuneration of members of hospital boards of directors would be reviewed.