Business Case to DPER for an annual fee of ?80,000 for the Chairperson of the HSE Board 1. Proposed for fee for the Chairperson of the HSE The Department is about to advertise through PAS for the position of Chair of the HSE. This is in keeping with the view that, from a good governance perspective, the Chair of the Board should have an input into the recruitment process for the CEO of the Board. Appointment of other members of the board will take place when the legislation putting the Board on a statutory footing is enacted, later this year. The timeline agreed with the Department of the Taoiseach for the commencement of the PAS campaign for this post is tomorrow, 8 June. It is intended to advertise the post in the weekend?s newspapers and the deadline for confirming this advert is close of business today. Based on an analysis by PAS of the Chair fees in 3 non commercial public sector bodies (NAMA, AdOption Authority and IHREC) and those in 9 other commercial public bodies, details of which are attached in the Appendices, the Department proposes that an annual fee of ?80,000 per annum would be appropriate for the incoming HSE Chair, given that the time commitment for the post will be 2 days per week, with the new Chair overseeing major reorganisation within the HSE and the implementation of the Slaintecare recommendations. We wish to seek approval to this fee. The detailed business case for this post is set out below. 2. Background The HSE is a statutory body under the aegis of the Department of Health, charged with the provision of a wide range of health and social services. The HSE has a budget of ?14.5 billion in 2018. The public health service has over 110,000 staff in whole time equivalent terms and is the largest employer in the country. The HSE is amongst the most important public bodies in the State, with an essential role in meeting the health needs of the population and delivering on the Government?s ambition of improving pOpulation health and the health services. The HSE was established on 1 January 2005 as a new State body with wide ranging responsibilities, including managing and delivering health and personal social services or arranging for these to be delivered on its behalf. A Directorate governance structure was put in place for the HSE in 2013. Since then, the Oireachtas Committee on the Future of Healthcare has worked together to develop a roadmap for change in our health services (Slaintecare Report). One of its recommendations is an independent Board for the HSE. 3. The Board of the Health Service Executive The legislation for a Board governance structure is being drafted at present. This legislation is on the Government?s priority list of Bills and, working with members of Oireachtas, the Minister intends to bring the legislation through both Houses as soon as possible. Under the new legislation, the Board will be the governing body of the HSE and will be accountable to the Minister for the performance of its functions and the CEO will be accountable to the Board. A Board governance structure, with strong competencies across key areas, will be a key component in strengthening HSE governance and will contribute to strengthening the oversight and performance of the HSE. Priority issues for the Board include - developing and implementing an effective performance management and accountability system in the HSE - developing a plan for building public trust and con?dence in the HSE and the wider health service - ensuring the full support for and implementation of the Government?s programme of health reform as will be set out in the Slaintecare Implementation Plan. There has been significant additional health service funding in recent years and this has supported growth in targeted service areas and developments. Within the total resources available the HSE has achieved significant operational improvements and improved outcomes in important areas. Nevertheless, the system faces a number of challenges, including a growing and ageing population, health inequalities and attracting and retaining the right workforce. The Government has committed to a very significant programme of health reforms arising from the Slaintecare report. These include changes and improvements to health services, and also a range of measures to strengthen the system of structures, governance and accountability. This will entail significant changes to the HSE itself. Among the recommendations put fonNard are: - Introduction of a board for the HSE, with the Chair accountable to the Minister and the CEO accountable to the Board; - Development of a strategic national centre complemented by regional integrated structures that would be accountable for delivering integrated care; - Development of a blueprint for clinical governance across the health system, underpinned by legislation which specifies standards and structures. These recommendations are central to delivering meaningful reform of the health service. The Slaintecare Implementation Plan will be published in the coming weeks following approval by Government. This will set out a concrete programme of reform for the next decade, including a more detailed programme for the immediate years ahead. An early priority will be the introduction of a high calibre Board for the HSE which the Chair will have a key role in establishing. The Chair is also expected to have a key role in the selection of the CEO as part of an international recruitment campaign overseen by the Public Appointments Service. This post of Chair is being advertised at a time when public confidence in the health system in Ireland needs to be strengthened. The ability to build confidence and trust in the service and a sense of ownership and pride among health service workers will be a key requirement for the incoming Board and CEO. There will be a need to provide strong leadership in developing an organisational culture that delivers for patients and service users, in line with Government health policy. It will also be necessary to prioritise the examination of the structure, responsibilities, capacity, skills and experience at senior level within the organisation, in line with the importance of the organisation to the public and Government of Ireland. The HSE Board will be required to drive and oversee a significant programme of change and reform in a challenging environment. 4. Role of the Chair The Chair is responsible for leadership of the Board and ensuring its effectiveness on all aspects of its role. This will include playing a key role in establishing the Board governance structures and ensuring their effective and cohesive operation. The appointed candidate will: 0 Chair a Board which is engaged in complex change, possessing the leadership experience required to ensure that the Board guides, challenges and supports the CEO and HSE executive team to deliver major change whilst holding them to account in doing so; . Play a central role in relation to the direction, leadership and corporate and clinical governance of the . Foster a positive relationship with the HSE CEO in order to facilitate the conduct of good governance; - Support and challenge the CEO and HSE Executive team; . Promote a culture of accountability, and ensure that the HSE demonstrates value achieved for the very significant public funds made available to Health and instil an organisational culture of continuous improvement; 0 Develop a constructive relationship with stakeholders, including the Minister for Health, the Department of Health and the Government. The Chair will be committed to the delivery of the reform of the health service and the HSE. The candidate for this post would provide evidence of: - Significant strategic leadership experience with a proven track record of organisational management and organisational improvement preferably in a distributed and highly complex organisation; . Demonstrable leadership of transformational change and reconfiguration in complex environments and a track record in implementing major system-wide reform; . Experience in performance management, and the presentation and interpretation of performance information, a capacity to quickly develop an understanding of the economics of health care and the budgets required to achieve the organisation?s miss10n; . A capacity to quickly develop an understanding of the complex legal and regulatory environment in which the HSE operates; . An understanding of the complexity of providing evidence-based, high quality and safe care, including risk management; . Significant board level experience, with the confidence and resilience to lead the Board of a complex and high profile organisation; . Ability to ensure that the Board guides, challenges and supports the CEO and executive team to deliver major reform whilst holding them to account in doing so; . Excellent communication skills and the ability to develop constructive relationships with all relevant stakeholders. While previous Healthcare experience is not a prerequisite, the candidate should be able to demonstrate successful leadership experience and success in an organisation or sector of an equivalent scope and scale as the HSE. In order to qualify for appointment a person must not have any conflicts of interest likely to interfere with his/her ability to assume the role of Chair. 4. Term of appointment and time commitment The appointment of Chairperson and other members of the Board will be for an initial period of 5 years. The Chairperson will be required to provide 2 days per week to the position. [Wm . Year Organisation- 2017 CRH 2017 SMURFIT KAPPA 2017 AIB 2017 ARYZTA 2017 TULLOW OIL 2017 GREENCORE 2017 BANK OF IRELAND 2017 KERRY GROUP 2017 UDG Position Non-executive Chairman Chairman Non-Executive Chairman Non?Executive Chairman Non-Executive Chairman Non?Executive Chairman Non?Executive Governor Non-Executive Chairman Non?Executive Chairman Nicky Hartery Liam O'Mahony Richard Gary McGann Aidan Heavey Gary Kennedy Archie Kane Michael Dowling Peter Gray ?575,000 ?78,000 NED supplementary fee for chair and membership ?350,000 ?70,000 Plus Share based payment ?19,830 ?365,000 ?65,000 NED supplementary fee for chair and membership ?278,590 ?75,855 NED supplementary fee for chair and membership ?280,000/ ?319,108 NED supplementary fee for chair and membership ?247,000 ?78,000 NED supplementary fee for chair and membership ?394,000 ?63,000 Total ?490,000. Has a consultancy arrangement wit ?230,000 ?78,000 NED supplementary fee for chair and membership ?140,000 ?65,000 Total fees of ?205,000. NED supplementary fee for of committees of committees of committees of committees of committees Bank of Ireland (UK) in respect of which he receives an annual fee of ?59,000. He also receives an a of committees chair and membership of committees accommodation, utilities and car allowance of ?37,000 per annum Organisation Position Year National Asset Management Agency (NAMA Board Member ?50,000 Adoption Authority Chair IH REC Notes 2017 An additior ?63,120 2015 Commissioner Ass Sec Equivalent 2014 Full time pc Ial single fee of ?25,000 is payable to the Chair of the Credit Committee and an additional single fee of )sition 210,000 to a member who chairs one or more of the remaining Committees.