Disparities in Healthcare Leadership Salaries Raise Eyebrows Amid Financial Struggles
In a stark juxtaposition, some chairs of healthcare boards in Finland are reportedly receiving salaries exceeding 80,000 euros annually, while numerous well-being services counties battle to maintain their budgets. This discrepancy has sparked questions about the rationale behind such pay scales, especially as many regions face severe fiscal challenges, laying off hundreds of workers to stay afloat.
Data compiled by Yle reveals a dramatic range in compensations across the country. For instance, the chair of the Kanta-Häme board earns a hefty 91,644 euros per year, in stark contrast to their counterpart in South Karelia, who receives a mere 3,480 euros annually. Meanwhile, salaries for council chairs vary widely as well, with North Ostrobothnia offering 41,008 euros and Central Ostrobothnia keeping it significantly lower at just 3,000 euros.
These board positions are no longer merely ceremonial; they’re the product of a significant overhaul of Finland’s healthcare system, known as ‘Sote,’ which took effect at the start of 2022. In addition to their substantial yearly salaries, these elected officials are also eligible for reimbursements for lost earnings and travel expenses, as well as extra payments for attending certain meetings.
“No Clear Logic at All”
The autonomy given to regional authorities in determining wages has led to puzzling disparities, as articulated by Arto Haveri, a Professor of Administrative Science at the University of Tampere. “If you compare the salaries to variables such as the size of the area or the responsibilities of the well-being sector, there is no clear logic at all,” Haveri explained to Yle.
Interestingly, the regions with the highest salary offerings aren’t necessarily the largest. For example, Kanta-Häme ranks only 14th in population size among the 21 well-being counties in Finland.
A representative from North Ostrobothnia, which allocates over 82,000 euros annually to its board chair and 41,000 euros to its council chair, justified these figures by emphasizing the demanding nature of the role. “We deemed this position required a full-time commitment, given that our regional board meets weekly,” said Chief Legal Officer Tiina Kallikulju, highlighting that the salary aligns with that of a first-term Member of Parliament.
Conversely, the council chair’s salary, set at half that of the board chair’s, reflects its part-time nature.
In a striking revelation, figures from 2024 indicated that the North Ostrobothnia well-being county was grappling with a financial shortfall of approximately 60 million euros, prompting an average wage cut of six percent for staff.
Haveri notes that salary decisions may reflect a balancing act between maintaining moderate pay levels and attracting highly qualified candidates. “Compensation should indeed correspond to the workload and the challenges inherent to the role,” he remarked.
As these conversations unfold, the landscape of healthcare leadership salaries in Finland remains a complex and contentious subject, urging a deeper examination of equity and necessity in public service compensation.