Anger at NHS chiefs £175,000 golden handshake (From The Argus)

Anger at NHS chiefs £175,000 golden handshake

11:00am Saturday 20th March 2010 in

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A hospital trust facing the biggest cuts in its history has given its boss a £175,000 "golden goodbye".

Kim Hodgson is standing down from her £155,000 a year job as chief executive of East Sussex Hospitals NHS Trust at the end of this month.

As she is leaving with almost immediate effect rather than serving a 12-month notice period, she will be getting the lump sum instead of monthly payments.

Until a permanent new boss is found, the trust will have a temporary replacement in Darren Grayson, chief executive of NHS Brighton and Hove.

Campaigners have reacted angrily at Ms Hodgson’s “golden goodbye”.

Bosses insist Ms Hodgson is leaving with no more than her contractual entitlement and the money is not a pay off.

However they will not say why Ms Hodgson is leaving.

The move comes as the hospital trust, which runs Eastbourne District General Hospital (DGH) and the Conquest Hospital in St Leonards, is bracing itself for an expected freeze in government funding from next year.

It is already drawing up plans on how to save money and admits difficult decisions will have to be made in the future if it is to continue to balance its books.

This includes moving services like planned orthopaedic operations from the DGH to St Leonards.

Liz Walke, who headed the Save the DGH campaign when maternity services came under threat, said she was extremely disappointed at the news.

She said: “Sometimes I think the NHS is living on another planet. Some people could buy a house with that.

“The trust is having to really work hard to try and save money and achieve a surplus at the end of the financial year and there are signs it is not going to be able to manage it.

“To suddenly see a big payment like this really does not send out the right message. I am very surprised.

“If anyone else leaves a job, they don't get paid and that is that. It seems like one rule for managers and another rule for everyone else.”

Hastings MP Michael Foster said he would be contacting the trust.

He said: “I find it outrageous. There is no good reason why someone should be given such a large amount like that, especially with the present state of finances in the NHS.

“I don't know what the reasons behind her leaving are but there is no way someone should be paid the equivalent of a year's salary when they are not in post and doing the job.”

Eastbourne MP Nigel Waterson has written to the trust to ask why Ms Hodgson is leaving so quickly and for details of the severance deal.

He said: “From what it appears, it is Kim’s idea to go so why is she being paid more than a year’s salary?

“I am not entirely satisfied with what is happening here.”

Mr Waterson originally raised concerns at Ms Hodgson's appointment at the end of 2005, because he said the post had not been advertised properly.

She was parachuted in following the swift departure of her predecessor, Annette Sergeant.

Mrs Sergeant ended up with a pay-out of £300,000, which included £231,000 plus full pay for a six month notice period she didn't serve.

The trust was accused at the time of “rewarding failure” because when Mrs Sergeant left, the trust was millions of pounds in the red, was planning to axe 250 jobs and cutting bed numbers.

The Argus asked to speak to Ms Hodgson yesterday but she was unavailable.

The trust said Ms Hodgson's 12 month notice deal was agreed between her and the trust's chairman at the time.

A spokesman said: “It was agreed with the then chairman to reflect the exceptional circumstances faced by the trust and her move from a successful position within another trust.

“At the time of her appointment, the trust was faced with a number of significant challenges.

“Kim has been a popular chief executive and has loved working at the trust, but sometimes people want to move on to new things.

“As Kim has said: "There are critical moments for everybody when they evaluate where their life is going. I have dedicated 30 fantastic years to the NHS and its now time to hand over the trust to others."

“Kim and Irene Dibben, the trust chairwoman, have been talking about Kim's wish to move on for a few months.

“The NHS today has many challenges and can demand a lot of a chief executive.

“Kim and Irene felt that the arrangements for her leaving needed to be in place before an announcement was made.

“Once it was agreed that Darren Grayson was available, the announcement was made public. The Trust will have continuity of senior leadership.

“Kim is not therefore fully working out her notice.

“Having decided on this move, and having established that an appropriate interim chief executive was available, it just makes sense both for Kim and for the trust to put the new arrangements into effect more quickly.

“This is not a pay-off. The trust and Kim have strictly adhered to the terms of her contract.

“She is leaving with no more than her contractual entitlement. She will pay tax on the amount she gets.”

What do you think about the “golden goodbye”? Tell us what you think at theargus.co.uk/news