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Six-figure payout for Eastbourne hospital boss
THE outgoing boss of the trust responsible for Eastbourne District General Hospital (EDGH) is to receive a six-figure payout, thought to be around £400,000 of tax payers' money.
Last week the East Sussex Hospitals NHS Trust announced that its 155,000-a-year chief executive, Kim Hodgson, would be stepping down with almost immediate effect rather than serving her 12-month notice period.
The trust, which controls Eastbourne's DGH and the Conquest Hospital in Hastings, is refusing to reveal details of why Ms Hodgson resigned or the size of her payout but said the trust chairman, Irene Dibben, and Ms Hodgson had been discussing a possible departure for 'a few months'.
Ms Hodgson's resignation comes at a time when 'difficult decisions' are being made by the trust, like whether elective orthopaedics – such as hip replacements – will move from Eastbourne to Hastings.
The payout comes as money is tight: it is less than a fortnight before the end of the financial year and the trust has a statutory duty to deliver a 1 million surplus. Previous financial reports suggest it is likely to fail in its obligation.
It has also come during the week when spending watchdog the Audit Commission has criticised the severance deals given to council chief executives.
And it is just five years since the last holder of the top job at the trust – who left in similarly mysterious circumstances and had an equally speedy departure – received a six-figure severance deal.
The previous chief executive of the trust, Annette Sergeant, is thought to have received around 300,000, made up of a 235,000 payout, plus full pay for the six-month notice period which she did not serve. At that time, the trust agreed that details of Ms Sergeant's settlement would be kept confidential, later publishing the figure in its annual accounts.
The Strategic Health Authority (SHA) then released letters revealing more details of the departure.
When Ms Sergeant stepped down in October 2005, Ms Hodgson, a former nurse, was parachuted into East Sussex from a senior role at East Kent Hospital NHS Trust, inheriting an unhealthy 17 million deficit. Ms Hodgson's appointment was of immediate concern to Eastbourne's MP, Nigel Waterson, who said the job had not been advertised in accordance with the normal rules.
Mr Waterson has this week written to the trust's chairman to ask why Ms Hodgson is not serving her notice period and for details of the severance deal. Mr Waterson also wants to ensure a competitive interviewing process will take place for a new chief executive.
Parliamentary candidate for the Liberal Democrats, Stephen Lloyd, said, "If this grossly-inflated pay off figure is true, the public will deserve an apology from the board along with some answers as to why, yet again, the local tax payer has been fleeced."
Asked about reasons for Ms Hodgson's departure and details of the payout, the trust issued a statement.
"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 it's now time to hand over the trust to others'.
"Kim and Irene, the trust chairman, 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, the interim chief executive 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 executivewas 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."
Mr Grayson will start at the trust on Monday (March 22) and will remain until a permanent chief executive is appointed. Ms Hodgson is due to leave on March 31.
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