Cash-strapped Southend Hospital handed its former boss a year’s salary – despite her only working only six months of her 12-months’ notice.

Jacqueline Totterdell was paid between £170,000 and £175,000 in 2014/15, but only worked until October 2014, when she left to join Newark Hospital, in Nottinghamshire.

The hospital said it paid the sum to allow both parties to move on “quickly”, but unions have blasted the move as sending “negative signals” to other NHS staff.

The payoff was made in the same year the hospital’s debt soared to £9.8million.

Sam Older, from Unison, said: “A departing chief executive getting a six-figure salary not to work, sends very negative signals to hardworking NHS employees who are paid a fraction of a chief executive’s pay and are often asked to work their notice.

“Unison is fully supportive that the NHS ensures staff are paid contractually, but the issue here is about fairness and equality for staff of all grades.”

Mrs Totterdell also received a £20,000 pay rise the previous year, 2013/14, despite the majority of her workforce getting just a 1 per cent increase.

After her departure in October last year, the hospital appointed Sue Hardy, its chief nurse, as acting chief executive.

She was paid £125,000 as chief nurse and then between £155,000 and £160,000 when she landed the chief executive role, which she took up full-time in April.

The hospital's spending has been criticised in the past year, particularly the spending on money saving experts.

For example, Kingsgate Advisory was paid £343,000 for just six months’ work.

Alan Tobais, the hospital’s chairman, said: “Jacqueline was entitled to give a year’s notice and by agreement received six months’ pay to enable both herself and the trust to move on sooner.”

Mrs Totterdell worked up to three days a week at Newark Hospital as a director to help increase its use and services.

She then joined West Middlesex Hospital in April, as chief executive.

Echo: New man – Ian McMillan

'Cost saving' boss given £56,000 golden goodbye

A commercial director at Southend Hospital was given a £56,000 golden goodbye, despite being brought in to help them save money.

Iain McMillan was drafted in as commercial director on £95,000 a year in 2012, but was paid off in July 2014.

He was given £56,000 from the hospital, in a payout which hospital bosses described as an “agreement that allowed both parties to move on” after his role was deleted.

He was appointed the hospital’s first-ever commercial director in July 2012, with a remit to find ways of saving cash and generate income and investigate new ways to make money.

This was despite the hospital having its own chief financial officer, Brian Shipley, who was replaced by James O’Sullivan, in March last year – who took home between £125,000 and £130,000 in 2014/15.

The hospital’s chairman, Alan Tobais, said: “The trust and Mr McMillan reached an agreement that enabled both parties to move on.

“The trust no longer has the dedicated position of commercial director and commercial and planning activities now sit within the remit of the chief finance officer.”

The hospital’s deficit spiralled in 2014/15, going from a predicted black hole of £700,000 to £9.8million.

In his only full year of work, Mr McMillan, was paid between £110,000 and £115,000.