Province could save $18M trimming health region leadership to a single board
The Saskatchewan government could potentially save about $18 million annually when it trims its provincial health leadership to move to a single health authority.
Top-ranking officials in the province's 12 health regions are being offered voluntary separation packages as the province prepares to amalgamate the regions and their leadership.
There are currently 12 chief executives and 62 vice-presidents who will be affected by the consolidation. One new amalgamated health region may trim that to one board of executives, with one CEO.
Health region spending on executive compensation last year totalled $19,710,533. This figure is based on total compensation figures shown in annual reports.
CBC News crunched some numbers to give readers an idea of the kind of savings the amalgamation could mean for the province.
CEO salaries and savings
If the new health region trims its leadership compensation to 1/12 of current executive compensation levels, it could theoretically result in savings of roughly $18 million each year.
Base salaries for health region chief executives currently vary between $188,791 in the Mamawetan Churchill River region, up to $400,365 for the CEO of the Regina Qu'Appelle Health Region.
Salaries for vice-presidents start at about $180,000 in health regions throughout the grainbelt, up to $316,865 in Regina. Saskatoon's vice-presidents were paid up to $276,022 last year.
Executives who want to leave with a severance must to apply to the Ministry of Health by early March to receive a package offer.
Possible severance costs
Executives tell CBC a standard severance package for health regions is typically based on 18 months salary.
Using last year's executive compensation levels, and assuming every executive wants to quit, the province could be on the hook for one-off payments totaling close to $30 million dollars.
Brad Wall told reporters in Saskatoon the move was "not about the short-term, it's about savings in the medium and long-term."
"We've heard from Saskatchewan people, they want health dollars to focus on front line patient care and less on administration and we think this is a way to help achieve that," the premier said.
Who will stay and who will go?
Some executives currently based in Regina and Saskatoon have told CBC they are interested in staying on with the reorganized health region.
The Saskatoon Health Region (SHR) said the CEO of St. Paul's Hospital, the region's chief medical health officer, and its vice-president of practioner staff affairs would not be eligible for the buyouts.
"It is up to each of our senior leaders to make their own personal decision on this matter. It is an individual choice and we are respecting their privacy during this time," an SHR spokeperson told CBC in an e-mail Tuesday.
The Regina Qu'Appelle Health Region echoed those concerns, saying "a decision like this is incredibly personal, and out of respect for these individuals and their unique circumstances, it's most appropriate that we allow them the time they need to consider their response, and allow that process to work its way through."
Health ministry still running calculations
Tracey Smith, assistant deputy minister for the Ministry of Health, said Tuesday the packages would be "fair and reasonable".
"Taking into consideration things like a person's year of service, what their level is at in the organization," said Smith.
"In terms of specifics it's really not until we're in a situation where we're actually working with individuals and having those conversations."
The Athabasca Health Region, which serves Dene fly-in communities in northern Saskatchewan, will not be included in the amalgamation.
Its most recent annual report was posted online in 2013, showing its lone chief executive was paid $265,683.
