A recent report highlights that consultants working for the NHS still receive large bonuses even if their work deteriorates.
The scheme, which is currently under review, sees consultants being paid bonuses on top of their basic pay of £89,400.00 per year. However, a loophole in the system means they can receive the bonuses for life even if they are under performing.
Under the current bonus scheme, the best performing consultants can expect to receive more than £75,000 a year on top of their basic salary.
Last year in England a total of £200 million was paid out to consultants in bonuses with 19,892 people being eligible for the bonus payouts.
The bonus scheme dates back to 1948 when the NHS was formed. Currently in England there are 16 different levels of bonuses ranging from £2,957 to £75,899 a year.
Similar schemes are in place elsewhere in the UK, with only a small number of doctors receiving the awards.
To receive the bonus, consultants nominate themselves and provide details of excellent performance and innovation in terms of clinical care, research and training. The consultant’s awards are meant to be reassessed every five years, but a Government review by the Advisory Committee on Clinical Excellence Awards, which oversees the bonus scheme, said this did not always happen.
Between 2006 and 2009, just seven of the top awards worth over £35,484 were withdrawn. However, due to the protection clauses, all the doctors who were not eligible for the awards continued to receive payout bonuses even though their bonuses had been formally withdrawn from them.
The current scheme is being reviewed by independent Doctors’ and Dentists’ Review Body and is due to report next summer, amidst calls for it to be scrapped.
Professor Alan Maynard, an expert in health policy at York University said, “They never get stopped, once they have them, they have them for their lifetime. The system needs completely changing. The applicants provide very little information, but you can’t spend the money on anything else as it is earmarked for these awards. I would have preferred to spend it on providing more care.”
“The evidence for performance related pay was questionable anyway, but if there was to be an incentives scheme it should be much tougher.”
Professor John Appleby, chief economist at the King’s Fund, agreed, “I think they are out of step with how the NHS should be paying staff. They should be abolished.”
However, Dr Paul Flynn, of the British Medical Association consultants’ committee defended the scheme – “It is an integral part of the pay structure for consultants. It is only right that those who go over and above what is expected and do the best job get their performance rewarded.”
He said, “The BMA would be willing to engage with the government to make sure the system was transparent, fair and responsive. Pay protection was important as doctors needed security of income and so that the bonuses engaged and motivated, but not distracted them.”
A Department of Health spokeswoman said, “There were anomalies in the system and that was why it was being reviewed.”
She added, “In future we want to see a much tougher approach, including withdrawing them from people who no longer display the quality of work that would merit an award now.”
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