An Act to amend the Health Services Act 1997 to implement a health network system for the purposes of the National Health and Hospitals Network Agreement; to make consequential amendments to certain other Acts and statutory rules; and for other purposes.
1 Name of Act
This Act is the Health Services Amendment (Local Health Networks) Act 2010.
2 Commencement
(1) This Act commences on a day or days to be appointed by proclamation, except as provided by subsection (2).(2) Schedule 1.1 [40], [42], [44]–[48] and [50] commence on the date of assent to this Act.
Schedule 1 Amendments to Health Services Act 1997 No 154
1.1 Principal amendments
[1] Section 4 Objects of Act
Omit section 4 (a). Insert instead:(a) to establish a system of local health networks for the whole of the State to deliver health services and to enable their recognition as health networks for the purposes of the NHHN Agreement, and
[2] Section 4 (c1)
Insert after section 4 (c):(c1) to enable the recognition of some statutory health corporations and affiliated health organisations as health networks for the purposes of the NHHN Agreement, and
[3] Section 6 What is the public health system?
Omit “health support” from section 6 (d).
[4] Section 8 What is a local health network?
Omit the note at the end of the section.
[5] Section 10 Functions of local health networks
Insert after section 10 (f):(f1) to co-operate with other local health networks and the Director-General in relation to the provision of services involving more than one public health organisation or on a State-wide basis,
[6] Section 25 Functions of chief executive generally
Omit “subject to the control and direction of the Director-General” from section 25 (b).Insert instead “accountable to the local health network governing council constituted for the network”.
[7] Section 26 Constitution of local health network governing council
Omit section 26 (2) and (3). Insert instead:(2) A local health network governing council is to consist of 6 to 13 persons appointed by the Minister, selected in accordance with subsections (3) and (3A).(3) The Minister is to select the membership of a local health network governing council so that the membership of the council has an appropriate mix of skills and expertise required to oversee and provide guidance to the network, including members who:(a) have expertise and experience in health management, business management and financial management, and(b) have expertise and experience in the provision of clinical and other health services, and(c) where appropriate, are representatives of universities, clinical schools or research centres, and(d) have knowledge and understanding of the community served by the network, and(e) have other backgrounds, skills, expertise, knowledge or experience appropriate for the network.(3A) A local health network governing council is to have at least one member (who may also be one of the kinds of members referred to in subsection (3) (a)–(e)) who has expertise, knowledge or experience in relation to Aboriginal health.
[8] Section 27 Role of area health advisory councils
Omit the section.
[9] Section 28
Omit the section. Insert instead:28 Functions of local health network governing councilsThe local health network governing council for a local health network has the following functions:(a) to ensure effective clinical and corporate governance frameworks are established to support the maintenance and improvement of standards of patient care and services by the local health network and to approve those frameworks,(b) to approve systems:(i) to support the efficient and economic operation of the local health network, and(ii) to ensure the network manages its budget to ensure performance targets are met, and(iii) to ensure that network resources are applied equitably to meet the needs of the community served by the network,(c) to ensure strategic plans to guide the delivery of services are developed for the local health network and to approve those plans,(d) to provide strategic oversight of and monitor the local health network’s financial and operational performance in accordance with the State-wide performance framework against the performance measures in the performance agreement for the network,(e) to make recommendations for the appointment of the chief executive of the local health network and, where it considers it appropriate to do so, to make recommendations concerning the removal of the chief executive,(f) to confer with the chief executive of the local health network in connection with the operational performance targets and performance measures to be negotiated in the service agreement for the network under the NHHN Agreement,(g) to approve the service agreement for the local health network under the NHHN Agreement,(h) to seek the views of providers and consumers of health services, and of other members of the community served by the local health network, as to the network’s policies, plans and initiatives for the provision of health services, and to confer with the chief executive of the network on how to support, encourage and facilitate community and clinician involvement in the planning of network services,(i) to advise providers and consumers of health services, and other members of the community served by the local health network, as to the network’s policies, plans and initiatives for the provision of health services,(j) to endorse the local health network’s annual report,(k) to liaise with the governing councils of other local health networks and network governed health corporations in relation to both local and State-wide initiatives for the provision of health services,(l) such other functions as are conferred or imposed on it by the regulations.
[10] Section 29
Omit sections 29 and 29A. Insert instead:29 Removal of members of local health network governing council and appointment of administrator(1) The Minister may at any time, for any reason or no reason and without notice, by order published in the Gazette:(a) remove any member or all members of a local health network governing council from office, or(b) remove all members of a local health network governing council from office and appoint, as administrator of the local health network concerned, the chief executive of the network or any other person specified in the order for such period as may be specified in the order.(2) If the Minister appoints an administrator of a local health network under this section, the Minister is (as soon as is reasonably practicable after the appointment is made) to make a statement in Parliament concerning the basis for the appointment of the administrator.(3) An administrator of a local health network has and may exercise, subject to any conditions that may be specified in the order by which the administrator is appointed, all the functions of the chief executive and governing council for that network.(4) An administrator of a local health network is entitled to be paid from the funds of that network such remuneration (including travelling and subsistence allowances) as the Minister may from time to time determine in respect of the administrator.(5) The regulations may make provision with respect to administrators of local health networks.
[11] Section 32 Determination of role, functions and activities of local health networks
Omit “the chief executive of the area health service” from section 32 (1).Insert instead “the local health network”.
[12] Section 41 Constitution of statutory health corporations
Omit section 41 (3). Insert instead:(3) A statutory health corporation is to be a chief executive governed health corporation, a board governed health corporation or a network governed health corporation, as specified from time to time in Schedule 2.
[13] Section 42 Amendment of Schedule 2 (Statutory health corporations)
Omit section 42 (a). Insert instead:(a) amend Schedule 2 by inserting, altering or omitting the name of a statutory health corporation, or(a1) amend Schedule 2 by changing its governance from:(i) chief executive governance to board governance or network governance, or(ii) board governance to chief executive governance or network governance, or(iii) network governance to chief executive governance or board governance, or
[14] Chapter 4, Part 2, heading
Omit the Part heading. Insert instead:Part 2 Control and management of statutory health corporations
[15] Section 52C
Omit the section. Insert instead:52C Functions of chief executive generallyThe chief executive of a chief executive governed health corporation has, and may exercise, such functions as are conferred or imposed on the chief executive by or under this or any other Act.
[16] Chapter 4, Part 2, Division 3
Insert after Division 2:Division 3 Network governed health corporations52F Governing councils of network governed health corporations(1) There is constituted a governing council for each network governed health corporation.(2) The provisions of Division 2 of Part 2 of Chapter 3 (except section 26 (1)) apply in relation to a governing council of a network governed health corporation in the same way as they apply to a local health network governing council, subject to the following modifications:(a) a reference in those provisions (however expressed) to a local health network governing council is to be read as if it were a reference to the governing council for a network governed health corporation,(b) a reference in those provisions (however expressed) to a local health network is to be read as if it were a reference to a network governed health corporation,(c) a reference in those provisions (however expressed) to the chief executive of a local health network is to be read as if it were a reference to the chief executive of a network governed health corporation,(d) such other modifications as may be prescribed by the regulations.52G Chief executives of network governed health corporations(1) A chief executive is to be appointed for each network governed health corporation.(2) The provisions of Division 1 of Part 2 of Chapter 3 (except section 23 (1)) apply in relation to a chief executive of a network governed health corporation in the same way as they apply to a chief executive of a local health network, subject to the following modifications:(a) a reference in those provisions (however expressed) to the chief executive of a local health network is to be read as if it were a reference to the chief executive of a network governed health corporation,(b) a reference in those provisions (however expressed) to a local health network is to be read as if it were a reference to a network governed health corporation,(c) a reference in those provisions (however expressed) to a local health network governing council is to be read as if it were a reference to the governing council of a network governed health corporation,(d) such other modifications as may be prescribed by the regulations.
[17] Section 53 Determination of functions of statutory health corporations
Insert at the end of section 53 (1) (b):, or(c) in the case of a network governed health corporation, to the corporation.
[18] Section 53 (3) (b)
Insert “or network governed health corporation” after “corporation”.
[19] Section 58 Contracts of statutory health corporations
Insert “or network governed health corporation” after “corporation” in section 58 (4) (b).
[20] Section 60 Statutory health corporation may make by-laws
Insert “or network governed health corporation” after “corporation” in section 60 (7) (b).
[21] Section 61 Delegations by statutory health corporations
Insert “or network governed health corporation” after “corporation” in section 61 (5) (b).
[22] Section 62B
Insert after section 62A:62B Recognition of networked affiliated health organisations(1) The Minister may, by order published in the Gazette, declare that one or more affiliated health organisations are to be treated as a network for the purposes of the NHHN Agreement in respect of some or all of their recognised establishments or recognised services.(2) Such an order may be made:(a) on the application of one or more affiliated health organisations, or(b) on the Minister’s own initiative.(3) The Minister may make an order pursuant to the application of one or more affiliated health organisations only if the Minister is satisfied that:(a) in the case of an application by one affiliated health organisation:(i) the affiliated health organisation has more than one recognised establishment or service, or(ii) the affiliated health organisation provides State wide services or services of State significance, or(b) in the case of an application by two or more affiliated health organisations, the affiliated health organisations have agreed to form a health network.(4) An order under this section may specify a name for the network.(5) An order cannot be made under this section in relation to an affiliated health organisation except with the concurrence of the organisation (or its governing body).
[23] Section 122 Functions of the Director-General
Insert after section 122 (c):(c1) to provide governance, oversight and control of the public health system and the statutory health organisations within it,
[24] Section 122 (f1)
Insert after section 122 (f):(f1) to give directions to statutory health organisations,
[25] Section 126 Director-General may enter into performance agreement with a public health organisation
Omit section 126 (2). Insert instead:(2) A performance agreement may:(a) include the provisions of a service agreement (within the meaning of the NHHN Agreement) for the organisation, and(b) set operational performance targets for the organisation in the exercise of specified functions during a specified period, and(c) provide for the evaluation and review of results in relation to those targets, and(d) provide for the provision of such data or other information by a public health organisation concerning the exercise of its functions that the State determines is required to comply with the State’s performance reporting obligations under the NHHN Agreement.
[26] Section 126B Director-General to provide certain services
Omit section 126B (1). Insert instead:(1) The Director-General may provide services for any or both of the following purposes:(a) to support the public health system and public health organisations and the public hospitals they control,(b) to enable the co-ordinated provision of health services involving more than one public health organisation or on a State-wide basis.
[27] Section 126G Directions by Minister in relation to acquisition of services
Omit “health support services” from section 126G (1) (a).Insert instead “services”.
[28] Section 126G (2) (e) (i)
Omit “health support services”. Insert instead “services”.
[29] Section 131 Transfer of hospitals, health institutions, services and property between statutory health organisations
Omit section 131 (5).
[30] Chapter 11 Miscellaneous
Omit the last sentence from the Introduction at the beginning of the Chapter.
[31] Section 133B
Insert after section 133A:133B Personal liability of members of boards or governing councils of statutory health organisationsA matter or thing done or omitted to be done by:(a) a statutory health organisation, or(b) the board or governing council of a statutory health organisation, or(c) a member of the board or governing council of a statutory health organisation, ordoes not, if the matter or thing was done or omitted to be done in good faith for the purposes of executing this or any other Act, subject such a member or person personally to any action, liability, claim or demand.(d) a person acting under the direction of such an organisation, board or governing council,
[32] Section 136 Proof of certain matters not required
Insert “, governing council or governing body” after “board” wherever occurring.
[33] Section 138 Repeal of the Area Health Services Act 1986 No 50 and the Public Hospitals Act 1929 No 8
Omit the section.
[34] Schedule 1
Omit the Schedule. Insert instead:Schedule 1 Names and areas of local health networks(Sections 17 and 18)
[35] Schedule 2 Statutory health corporations
Omit “Chief executive” from Column 2 in relation to the matter relating to The Sydney Children’s Hospitals Network (Randwick and Westmead) (incorporating The Royal Alexandra Hospital for Children).Insert instead “Network”.
[36] Schedule 2
Insert after the matter relating to the Clinical Excellence Commission, in columns 1 and 2 respectively:
[37] Schedule 4 Transfers, dissolutions, amalgamations and changes of name or nature of governance
Omit clause 4 (1) (b) and (2) (b). Insert instead, respectively:(b) in the case of a board governed health corporation or network governed health corporation, the members of the board or governing council of the corporation (as the case requires) cease to hold office, but are not entitled to be paid any compensation by reason of ceasing to hold office, and
[38] Schedule 4, clause 4 (3) (b)
Omit the paragraph. Insert instead:(b) the members of the board of a board governed health corporation or the governing council of a network governed health corporation involved in the amalgamation cease to hold office and:(i) if the amalgamated corporation is a board governed health corporation or network governed health corporation, are eligible (if otherwise qualified) to be appointed as members of the board or governing council of the amalgamated corporation, and(ii) are not entitled to be paid any compensation by reason of ceasing to hold office, and
[39] Schedule 4, clause 4 (4A) and (4B)
Omit clause 4 (4A). Insert instead:(4A) Change of governance orders On and from the date specified in an order made under section 43 (1) (d) changing the nature of governance of a statutory health corporation from board governance or network governance to chief executive governance, the members of the board or governing council for the corporation cease to hold office, but are not entitled to be paid any compensation by reason of ceasing to hold office.(4B) On and from the date specified in an order made under section 43 (1) (d) changing the nature of governance of a statutory health corporation from board governance to network governance or from network governance to board governance, the members of the existing board or governing council cease to hold office and:(a) are eligible (if otherwise qualified) to be appointed as members of the new board or governing council of the corporation, and(b) are not entitled to be paid any compensation by reason of ceasing to hold office.
[40] (Repealed)
[41] Schedule 4, clause 16 (1)
Insert “or governing council” before “or managing body”.
[42] (Repealed)
[43] Schedule 5 Provisions relating to members and procedure of health corporation boards
Omit clause 11.
[44]–[48] (Repealed)
[49] Dictionary
Omit the definitions of area, area health service, board and chief executive from Part 1.Insert in alphabetical order:area of a local health network means the area described in Column 2 or 3 (or both) of Schedule 1 in respect of which the local health network is constituted.chief executive:(a) of a local health network—means the chief executive of that network, or(b) of a statutory health corporation—means the chief executive of that corporation, or(c) of an affiliated health organisation—means the person who is responsible to the governing body of the organisation for the management of its recognised establishments and recognised services.local health network—see section 8.local health network governing council means a local health network governing council for a local health network constituted under section 26.modification includes addition, exception, omission or substitution.network governed health corporation means a statutory health corporation that, as specified in Schedule 2, is network governed.NHHN Agreement means the National Health and Hospitals Network Agreement entered into by the Commonwealth, certain States and the Territories in April 2010, as in force from time to time.statutory health organisation means a local health network or a statutory health corporation.
[50] (Repealed)
1.2 General amendments updating references to local health networks and local health network governing councils and minor amendments
[1] The whole Act (except the long title, section 5 and Schedule 7 and except as otherwise amended by this Act)
Omit each expression specified in Column 1 of the following Table wherever occurring (including headings and notes).Insert instead the expression specified in Column 2 opposite the expression specified in Column 1:Table
[2] Section 8 What is a local health network?
Omit “the services” from section 8 (2). Insert instead “the networks”.
[3] Section 24 Chief executive to manage and control affairs of local health network
Omit “the service” wherever occurring. Insert instead “the network”.
[4] Section 36 Power to accept property by gifts, devises and bequests
Omit “the service” from section 36 (1). Insert instead “the network”.
[5] Chapter 10, Part 1A, heading
Omit “health support”.
[6] Schedule 4 Transfers, dissolutions, amalgamations and changes of name or nature of governance
Omit “area health organisations and statutory health corporations” from the heading to clause 6.Insert instead “statutory health organisations”.
sch 1: Am 1987 No 15, sec 30C.
Schedule 2 Consequential amendment of other Acts and statutory rules
Dictionary
Omit “an area health service” from the definitions of designated person and hospital wherever occurring.Insert instead “a local health network”.
Section 4 Definitions
Omit “an area health service” from paragraph (b) of the definition of public sector agency.Insert instead “a local health network”.
Schedule 1 Scheduled agencies
Omit the matter relating to each of the area health services referred to in the Schedule.Insert at the end of the Schedule:A local health network constituted under the Health Services Act 1997
[1] Clause 21 Constitution of Coordination Groups
Omit “an area health service” and “appropriate area health service” from clause 21 (1) (d) wherever occurring.Insert instead “a local health network” and “appropriate local health network”, respectively.
[2] Clause 28A Evaluation and monitoring of scheme
Omit “an area health service” from paragraph (c) of the definition of participating State agency in clause 28A (2).Insert instead “a local health network”.
[3] Clause 38 Savings and transitional provisions
Insert after clause 38 (2):(2A) The amendment made to clause 21 (1) by the Health Services Amendment (Local Health Networks) Act 2010 does not affect the continued validity of any nomination made by an area health service under clause 21 (1) (d) before the commencement of that amendment.
Section 30 Director-General’s investigations and assessment
Omit “an area health service” from the note to the section.Insert instead “a local health network”.
Clause 206 Provision of information relating to offenders
Omit “area health service” from clause 206 (1) (a).Insert instead “local health network”.
[1] Section 39PA Order for disposal of dangerous exhibit
Omit paragraph (a) of the definition of analyst in section 39PA (5).Insert instead:(a) any person employed by the Government of New South Wales as an analyst (including a person employed as an analyst in the NSW Health Service), or
[2] Section 43 Certificate evidence
Omit paragraph (a) of the definition of analyst in section 43 (6). Insert instead:(a) any person employed by the Government of New South Wales as an analyst (including a person employed as an analyst in the NSW Health Service), and
[1] Clause 37 Threshold increase applications—consultation requirements
Omit “area health service” from clause 37 (2) (d).Insert instead “local health network”.
[2] Clause 41 Consultation and advertising requirements
Omit “area health service” from clause 41 (2) (b) (ii).Insert instead “local health network”.
[1] Section 3 Definitions
Omit “an area health service” from paragraph (a) (v) of the definition of exempt premises in section 3 (1).Insert instead “a local health network”.
[2] Section 45AA Tribunal may approve clinical trials
Omit “an area health service” from paragraph (b) (i) of the definition of ethics committee in section 45AA (5).Insert instead “a local health network”.
[1] Section 4 Definitions
Omit the definition of area health service from section 4 (1).Insert in alphabetical order:local health network means a local health network constituted under the Health Services Act 1997.
[2] Section 20L Definitions
Omit “an area health service” from paragraph (a) of the definition of relevant health services organisation.Insert instead “a local health network”.
Schedule 1 Modification of Health Practitioner Regulation National Law
Omit “an area health service” from clauses 6 (2) (i), 7 (2) (a), 8 (2) (a) and 9 (2) (a) of Schedule 5C of the modifications to the Health Practitioner Regulation National Law set out in Schedule 1 [25] wherever occurring.Insert instead “a local health network”.
Clause 5 Certain public sector agencies to be treated as a single agency
Omit “area health services” from clause 5 (c).Insert instead “local health networks”.
Clause 12
Omit the clause. Insert instead:12 Local health network descriptions(1) A reference in Column 2 of Schedule 1 to the Act to Sydney (part), in relation to the Sydney Local Health Network, is a reference to the following Statistical Local Areas:(a) Sydney (C)–West,(b) Sydney (C)–South.(2) A reference in Column 2 of Schedule 1 to the Act to Sydney (part), in relation to the South Eastern Sydney Local Health Network, is a reference to the following Statistical Local Areas:(a) Sydney (C)–Inner,(b) Sydney (C)–East.(3) In this clause:Statistical Local Area means a Statistical Local Area specified in the document entitled Australian Standard Geographical Classification (ASGC), published by the Australian Bureau of Statistics in July 2010.
Clause 19 Principal officers of public authorities
Omit clause 19 (1) (b). Insert instead:(b) a local health network within the meaning of the Health Services Act 1997—the chief executive of the local health network,
Section 2 Definitions
Omit “an area health service” from paragraph (b) of the definition of Institution in section 2 (1).Insert instead “a local health network”.
Section 556 What land is exempt from all rates, other than water supply special rates and sewerage special rates?
Omit “an area health service” from section 556 (1) (k).Insert instead “a local health network”.
Schedule 1 Alcohol and drug use—random breath testing and related matters
Omit “an area health service” from paragraph (a) of the definition of hospital in clause 1 (1).Insert instead “a local health network”.
Section 162A Tribunal may request information or services from other agencies
Omit “an area health service” from section 162A (1).Insert instead “a local health network”.
Section 76J Exchange of information
Omit “an area health service” from paragraph (a) of the definition of associated agency in section 76J (6).Insert instead “a local health network”.
Section 39A Definitions
Omit “an area health service” from paragraph (a) of the definition of public hospital in section 39A (1).Insert instead “a local health network”.
Section 24 Interpretation
Omit “an area health service” from paragraph (a) of the definition of Public hospital in section 24 (1).Insert instead “a local health network”.
Section 123 Proceedings against successors of government corporations
Omit “an area health service” from section 123 (1) (c).Insert instead “a local health network”.
Section 25A Definitions
Omit “an area health service” from paragraph (b) of the definition of designated government agency in section 25A (1).Insert instead “a local health network”.
Schedule 2 NSW specific provisions
Omit “area health services”, “an area health service” and “the area health service” from clause 8 (including the clause heading).Insert instead “local health networks”, “a local health network” and “the local health network”, respectively.
Schedule 1 Definitions of “authority” and “controlled entity”
Omit the matter relating to Area health service from Part 1.Insert in alphabetical order of entities:Local health network constituted under the Health Services Act 1997
Schedule 1 Prescribed audits
Omit item 3 from Part 1.Insert after item 19:19ALocal health networks within the meaning of the Health Services Act 1997
Clause 9 Board may arrange supply or disposal for other public bodies
Omit “an area health service” from paragraph (b) of the definition of public body in clause 9 (5).Insert instead “a local health network”.
Dictionary
Omit “an area health service” from paragraph (a) of the definition of hospital in clause 1.Insert instead “a local health network”.
Section 3 Definitions
Omit “an area health service” from paragraph (a) of the definition of hospital in section 3 (1).Insert instead “a local health network”.
Schedule 4 Land exempt from water supply authority service charges
Omit “an area health service” and “the area health service” from item (6).Insert instead “a local health network” and “the local health network”, respectively.
Section 59 Definitions
Omit “an area health service” from paragraph (a) of the definition of public hospital.Insert instead “a local health network”.