Stephen Donnelly
Ceist:151. Deputy Stephen S. Donnelly asked the Minister for Health if he will report on the settlement reached with hospital consultants on 15 June 2018; and if he will make a statement on the matter. [27142/18]
Amharc ar fhreagraThursday, 21 June 2018
Ceisteanna (151)
Freagraí scríofa
Last Friday Minister Donohoe and I announced that a settlement agreement in relation to cases taken by consultants seeking payment of increases provided for in Consultant Contract 2008 was concluded between the State and the consultants’ representative bodies after two weeks of intensive negotiations. This agreement applies to 10 lead cases that were before the High Court and other cases that involved the same contract. This case was due to commence on 05 June 2018 however both agreed to an adjournment to facilitate settlement discussions.
The settlement terms achieved represent a substantial reduction on previous estimates of potential liability of up to €700 million. Under the terms of the settlement, it has been agreed to correct the pay rate only for those Consultants who signed ‘Consultant Contract 2008’ between 25 July 2008 and 30th September 2012. Correction of remuneration/pension entitlements will be effective from the Date of Settlement (15 June) but payable from January 2019.
Under the Settlement an eligible Consultant shall be entitled to retrospective payment (“arrears”) of remuneration and/or retrospective payment of pension entitlements as follows:
- For consultants who have initiated proceedings against the State: for a period commencing up to six years prior to the date of issue of proceedings and ending on the Date of Settlement.
- For non-litigating consultants: for a period of up to six years prior to the Date of Settlement and ending on the Date of Settlement.
Any retrospective payment will be calculated as 55% of the difference between the remuneration paid to a Consultant during the period of retrospection and the remuneration which he or she would have been paid if the provisions of the Consultants’ Contract 2008 had been fully applied.
The estimated costs which will arise from the settlement reached are €182m for arrears, and ongoing costs of €62m per annum from 2019, backdated to the date of settlement in June 2018. Payment of the arrears will be phased over 2019 and 2020. While this settlement is extremely costly it is the most cost-effective outcome for the Exchequer and the taxpayer resulting in significant savings and prevents a lengthy and costly legal battle.
The IHCA and IMO have committed to recommending the agreement to members and will not support any progression of the current cases that have been initiated or any new litigation.
All consultants who accept the terms also affirm the terms of Consultant Contract 2008 and accept the importance of compliance with the terms of that Contract. The agreement confirms the commitment of the parties to compliance with contractual obligations to ensure more timely delivery of effective care to patients. It specifically provides for co-operation in relation to arrangements put in place to verify the delivery of the consultant’s contractual commitments, in particular those relating to private practice. This is going to help in ensuring accountability, compliance with the contract by consultants and improving services to patients.
This settlement brings to conclusion a disagreement between the parties that has been ongoing since 2009 and I look forward to a reinvigorated working relationship with consultants.