Health Services Act 2016 (WA) Assented

On 26 May 2016, the Health Services Act 2016 (No. 11) was assented in Western Australia. The Act seeks to modernise the governance and delivery of the health system in WA by introducing a model based on the successful elements of the Victorian, NSW and Queensland systems.

Background to the Act

This new Principal Act was introduced to, in the words of the Second Reading Speech, "replace the Hospitals and Health Services Act 1927 that was passed almost a century ago. Whilst the Hospitals and Health Services Act 1927 has been amended a number of times since 1927, all members would agree that it is not capable of providing the contemporary framework that is required to support the governance of the WA health system in the twenty-first century."

In December 2013, this government established the WA Health Transition and Reconfiguration Steering Committee to provide advice on reforms needed to better position the WA health system to deal with future challenges. The committee recommended, along with other reforms, the replacement of the Hospitals and Health Services Act 1927. The new Act will clarify the roles, responsibilities and accountabilities at each level of the system, and by devolving decisionmaking to the local level, the legislation will drive the continued delivery of high-quality health care. It will modernise the governance and delivery of the health system in WA, with the model being based on the successful elements of the Victorian, New South Wales and Queensland systems.

Purpose of the Act

The purpose of the Act is to:

• provide for health services in Western Australia;
• make consequential amendments to the Hospitals and Health Services Act 1927 and other Acts;
• repeal various enactments.

The Act also introduces reforms to the governance of the WA health system by clarifying the roles, responsibilities and accountabilities at each level of the system, and by devolving decision making to the local level.

The Act covers the following elements in the Parts:

• Part 1 of the Act provides that the provision of health services by the WA health system is based on the Medicare principles, thereby enshrining the right for eligible persons to be given a choice to receive public hospital services free of charge as public patients;
• Part 2 of the Act sets out the powers of the minister and establishes the Minister for Health as a body corporate, known as the ministerial body, which will have perpetual succession and a common seal and corporate identity;
• Part 3 of the Act establishes the director general of the Department of Health as the system manager of the WA health system, purchasing health services from autonomous boards;
• Part 4 of the Act provides for the establishment of new autonomous health service entities known as health service providers;
• Part 5 of the Act outlines the requirements and detail for these service agreements between the system manager and the health service provider. Part 5 also provides for the Mental Health Commission to purchase mental health services and alcohol and drug health services from the Western Australian health system;
• Part 6 of the Act establishes the mechanisms for the setting of fees and charges for the provision of health services;
• Part 7 of the Act provides for the accountability and financial management of health service providers;
• Part 8 of the Act provides for the establishment of health service provider boards of governance;
• Part 9 of the Act outlines the employment arrangements for health service provider employees;
• Parts 10 and 11 of the Act set out the mechanisms for dealing with criminal and misconduct matters and substandard performance and discipline of employees;
• Part 12 of the Act provides for the adoption of part 6 of the Public Sector Management Act 1994 in relation to redeployment and redundancy of employees;
• Part 13 of the Act sets out the powers of the director general of the Department of Health to investigate, inspect and audit health service providers;
• Part 14 of the Act empowers the director general of the Department of Health to conduct inquiries into the functions, management or operations of health service providers and authorises the director general to require persons to attend hearings, produce documents and answer questions;
• Part 15 of the Act empowers the Minister for Health to make changes to existing health service providers and their assets, rights and liabilities;
• Part 16 of the Act provides for the regulation and control of conduct and traffic on health service provider land;
• Part 17 of the Act provides for the collection, use and disclosure of information within the WA public health system;
• Part 18 of the Act contains miscellaneous provisions;
• Part 19 of the Act contains the transitional and savings provisions; and
• Part 20 of the Act provides for the amendment of the Hospitals and Health Services Act 1927. 

The commencement of the new principal Act is yet to be proclaimed.

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Health Services Act 2016 (No. 11) (WA) and related secondary materials from the Bill as published on TimeBase LawOne