Tough measures to limit the pay of senior executives at Britain’s private and independent sector hospitals were agreed – and potential dividend payments to shareholders are also being blocked – while the country continues to deal with coronavirus.
It is understood that the 26 companies who signed up to a landmark deal announced last month – where independent and private sector hospitals would set aside all of their capacity to assist the NHS during the pandemic – will not be able to claim back costs for executive salaries higher than the pay of NHS trust bosses for the period that the health service remains in control of their facilities.
A report by the Guardian said the NHS will also not cover dividend payments to shareholders during the takeover period.
There remain concerns that capacity at independent and private sector hospitals is being under-utilised, with the majority of private medical insurance customers unable to access them.
But under the arrangement brokered with the independent and private sector, many private sector hospital chiefs will take a huge hit to their pay packets during the crisis.
The median annual pay of the chief executive of a very large acute NHS trust should be about £225,000.
However, private sector bosses often earn even more than that – especially when dividends and bonuses are taken into account.