The UK’s largest healthcare charity paid its former chief executive almost £1m last year, new figures reveal.

Nuffield Health’s accounts for 2023 show it paid an employee between £970,000 and £979,999.

The charity confirmed this was former chief executive Steve Gray, who retired earlier this year.

Nuffield Health said the figure includes a base payment to Gray and a bonus payment because predefined targets were achieved in 2023. 

Gray received a similar bonus in 2021, when his pay was doubled, rising from between £570,000 and £580,000 in 2020 to £1.22m and £1.23m in 2021. He was paid between £620,000 and £629,999 in 2022. 

The charity undertook a financial remodelling programme during the year, designed to “drive lasting efficiency” in its cost base and improve its people structures for the future, according to the accounts.

Changes arising from the improved people structures resulted in the redeployment or redundancies of staff, predominantly in central support roles, which amounted to £2.8m dropping from £4m in 2022, the charity said.

The accounts do not say how many people were affected by these changes and the charity declined to confirm the numbers when asked by Third Sector. 

“Additional non-staff expenditure in relation to the financial remodelling programme was £1.9m and consisted primarily of professional fees incurred,” the accounts say.

The charity’s total staff costs increased by £40m compared with the previous year, with wages and salaries rising from £394m to £439m.

Staff numbers at the charity grew from 17,165 in 2022 to 18,215 in 2023 and individual redundancy and termination costs increased to £1.3m from £500,000.

The charity’s overall income grew by more than £100m, rising to £1.36bn from £1.24bn in 2022.

“Hospital turnover increased by £141.5m, with private medical insurance and NHS revenue being significant areas of growth,” the accounts say.

“This increase included revenue growth in both hospital diagnostic services, which grew 14.4 per cent, and income from episodes of hospital care, which grew by 10.6 per cent over the year.”

Nuffield Health’s wellbeing income increased by £23.4m in 2023, driven by the “significant positive impact” of its consumer fitness membership base, which rose by 10,000 to 375,000 in the year, the charity said.

“Health assessment activity also improved in 2023, following a focus on recruitment that drove capacity and resulted in a 21.1 per cent increase in this revenue stream,” the accounts say.

Nuffield Health’s expenditure also increased by more than £100m, with the charity spending £1.42bn in 2023 compared with £1.3bn in 2022.

The charity’s general fund remains in a deficit position of £132.7m compared with £63.5m in 2022.

“The trustees are committed to returning to a surplus position within the general fund,” the accounts say.

Actions introduced by trustees to remove the deficit include introducing a pension deficit repayment plan arranged with pension trustees, building strategic partnership to improve the charity’s offering in key clinical areas, and investing charity assets to support revenue growth.