Untitled document

Health Legislation Amendment (Quality and Safety) Act 2017

No. 52 of 2017

TABLE OF PROVISIONS

Section  Page

Part 1—Preliminary

1Purposes

2Commencement

Part 2—Amendment of the Health Services Act 1988

3Definitions

4Interpretation: health service establishment

5Interpretation: day procedure centre

6Objectives

7Preparation of draft guidelines

8Chief executive officer

9Board of management

10Terms and conditions of appointment

11New section 34A inserted

12Removal and resignation

13New section 35A inserted

14Membership of board not office of profit

15Immunity

16New section 39 inserted

17Validity of acts or decisions

18Appointment of delegate to board

19Obligations of board to delegate

20New sections 40F, 40G, 40H and 40I inserted

21Hospital must comply with directions of Secretary

22Powers of Minister

23Secretary may commission audits

24Proposal for amalgamation

25Voluntary amalgamations

26Board of directors

27Directors

28Terms and conditions

29Chief executive officer

30New section 65XAB inserted

31Functions of the chief executive officer

32Appointment of delegate to board

33Application

34Criteria for grant of approval in principle

35Criteria for registration

36Certificate of registration

37Criteria for renewal of registration

38Endorsement of certificate of registration

39New sections 100 and 101 inserted

40Revocation of registration of health service establishment

41Directions of Secretary

42New sections 106, 107, 107A, 107B, 108, 108A and 108B inserted

43Records

44New sections 110A, 110B, 110C and 110D inserted

45Board of management

46Terms and conditions of appointment

47New section 115FA inserted

48Removal and resignation

49New section 115GA inserted

50Membership of board not office of profit

51Immunity

52New sections 115JB and 115JC inserted

53Validity of acts or decisions

54Section 115M substituted and new sections 115MA, 115MB, 115MC and 115MD inserted

55New section 115NA inserted

56Powers of Minister

57New section 115SA inserted

58Amalgamations

59Governor in council may order amalgamation

60Part 6A heading substituted

61Establishment of Health Innovation and Reform Council

62Functions of the Council

63Members of the Council

64Procedure at meetings

65Removal and resignation

66Committee of the Council

67Regulations

68New section 178C inserted

Part 3—Amendment of the Ambulance Services Act 1986

69Definitions

70Functions of the Secretary

71General powers of the Secretary

72Objectives of ambulance services

73Board of ambulance service

74New section 17A inserted

75Functions of board of ambulance service

76New section 19A inserted

77Chief executive officer

78Appointment of an administrator

79Secretary may commission audits

Part 4—Amendment of the Mental Health Act 2014

80Objectives

81Functions of the Secretary

82Functions of the Institute

83Powers of the Institute

84Board of directors

85New section 332A inserted

86Appointment of directors

87New sections 339A, 339B, 339C and 339D inserted

88Chief executive officer

89Statute law revision amendment—Mental Health Amendment Act 2015

Part 5—Amendment of the Public Health and Wellbeing Act 2008

90Disclosure of information held by a prescribed Consultative Council

91Confidentiality obligations applying in respect of a prescribed Consultative Council

92Constitution of CCOPMM

93New section 46A inserted

94New sections 48A and 48B inserted

95Immunisation status certificate

96Issuing of immunisation status certificate

Part 6—Amendment of the Health Complaints Act 2016

97Power to delegate

Part 7—Repeal of amending Act

98Repeal of amending Act

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Endnotes

1      General information

Health Legislation Amendment (Quality and Safety) Act 2017

No. 52 of 2017

[Assented to 24 October 2017]

The Parliament of Victoria enacts:

PART 1—PRELIMINARY

1Purposes

The main purposes of this Act are—

(a)to amend the Health Services Act 1988—

(i)to strengthen and elevate roles and responsibilities for quality and safety under that Act; and

(ii)to improve governance arrangements for public hospitals, public health services and multi purpose services; and

(iii)to require health service establishments to comply with health service establishment premises guidelines; and

(iv)to require the proprietors of health service establishments—

(A)to comply with applicable approved accreditation schemes; and

(B)to apply for approval of alterations to clinical areas; and

(C)to provide safe, patient-centred and appropriate health services; and

(v)in relation to the voluntary and compulsory amalgamations of registered funded agencies and multi purpose services; and

(vi)to establish the Better Care Victoria Board;

(b)to amend the Ambulance Services Act 1986—

(i)to strengthen and elevate roles and responsibilities for quality and safety under that Act; and

(ii)to improve governance arrangements for ambulance services; and

(c)to amend the Mental Health Act 2014—

(i)to strengthen and elevate roles and responsibilities for quality and safety under that Act; and

(ii)to improve governance arrangements for the Victorian Institute of Forensic Mental Health; and

(d)to amend the Public Health and Wellbeing Act 2008 in relation to the Consultative Councils and to make various technical amendments in relation to immunisation; and

(e)to amend the Health Complaints Act 2016 in relation to delegation powers.

2Commencement

(1)This Part and Part 6 come into operation on the day after the day on which this Act receives the Royal Assent.

(2)Section 89 is taken to have come into operation on 24 November 2015.

(3)Subject to subsection (4), the remaining provisions of this Act come into operation on a day or days to be proclaimed.

(4)If a provision of this Act referred to in subsection (3) does not come into operation before 1 July 2018, it comes into operation on that day.

PART 2—AMENDMENT OF THE HEALTH SERVICES ACT 1988

3Definitions

In section 3(1) of the Health Services Act 1988—

(a)the definition of Council is repealed;

(b)in the definition of day procedure centre, for "a major" substitute "an";

(c)in the definition of health service establishment, after paragraph (a) insert—

"(b)a premises at which, or from which, a prescribed health service is provided; or";

(d)insert the following definitions—

"approved accreditation scheme means an accreditation scheme approved under section 107;

Board in Part 6A means the Better Care Victoria Board established under that Part;

clinical area, in relation to premises registered as a health service establishment, means an area of the premises where health services are provided and includes an equipment sterilisation area;

health service establishment premises guidelines means guidelines approved under section 106;

serious risk to patient health or safety means there is a high probability of a substantial adverse impact on the health or safety of a patient;".

4Interpretation: health service establishment

In section 4 of the Health Services Act 1988, after "undertaking at" insert ", or from,".

5Interpretation: day procedure centre

Section 5 of the Health Services Act 1988 is repealed.

6Objectives

For section 9(a) of the Health Services Act 1988 substitute—

"(a)health care agencies—

(i)provide safe, patient-centred and appropriate health services; and

(ii)foster continuous improvement in the quality and safety of the care and health services they provide; and".

7Preparation of draft guidelines

In section 12(b) of the Health Services Act 1988, for "quality" substitute "quality or safety".

8Chief executive officer

In section 25(2) of the Health Services Act 1988, after "appoint" insert "or re-appoint".

9Board of management

(1)Insert the following heading to section 33 of the Health Services Act 1988—

"Board of directors".

(2)In section 33(1) of the Health Services Act 1988, for "management" substitute "directors".

(3)For section 33(2) of the Health Services Act 1988 substitute—

"(2)The functions of the board of a public hospital are—

(a)other than in the case of the Queen Elizabeth Centre and the Tweddle Child and Family Health Service, to develop statements of priorities and strategic plans for the operation of the public hospital and to monitor compliance with those statements and plans; and

(b)in the case of the Queen Elizabeth Centre and the Tweddle Child and Family Health Service, to enter into health service agreements, if the board considers it appropriate, and to develop strategic plans for the operation of the public hospital and to monitor compliance with those agreements and plans; and

(c)to develop financial and business plans, strategies and budgets to ensure the accountable and efficient provision of health services by the public hospital and the long term financial viability of the public hospital; and

(d)to establish and maintain effective systems to ensure that the health services provided meet the needs of the communities served by the public hospital and that the views of users and providers of health services are taken into account; and

(e)to monitor the performance of the public hospital to ensure that—

(i)the public hospital operates within its budget; and

(ii)its audit and accounting systems accurately reflect the financial position and viability of the public hospital; and

(iii)the public hospital adheres to—

(A)its financial and business plans; and

(B)its strategic plans; and

(C)its statements of priorities or, in the case of the Queen Elizabeth Centre and the Tweddle Child and Family Health Service, any health service agreements entered into; and

(iv)effective and accountable risk management systems are in place; and

(v)effective and accountable systems are in place to monitor and improve the quality, safety and effectiveness of health services provided by the public hospital; and

(vi)any problems identified with the quality, safety or effectiveness of the health services provided are addressed in a timely manner; and

(vii)the public hospital continuously strives to improve the quality and safety of the health services it provides and to foster innovation; and

(viii)any committees established or appointed by the board operate effectively; and

(f)during each financial year, to monitor the performance of the chief executive officer of the public hospital (including at least one formal assessment in relation to that financial year), having regard to the objectives, priorities and key performance outcomes specified in—

(i)the public hospital's statement of priorities under section 40G; or

(ii)in the case of the Queen Elizabeth Centre and the Tweddle Child and Family Health Service, any health service agreements entered into; and

(g)to establish the organisational structure, including the management structure, of the public hospital; and

(h)to develop arrangements with other relevant agencies and service providers to enable effective and efficient service delivery and continuity of care; and

(i)to ensure that the Minister and the Secretary are advised about significant board decisions and are informed in a timely manner of any issues of public concern or risks that affect or may affect the public hospital; and

(j)to establish the following committees—

(i)a Finance Committee, an Audit Committee and a Quality and Safety Committee; or

(ii)a Finance and Audit Committee and a Quality and Safety Committee; and

(k)to facilitate health education; and

(l)to adopt a code of conduct for staff of the public hospital; and

(m)to provide appropriate training for directors; and

(n)any other functions conferred on the board by or under this Act.".

(4)After section 33(2A) of the Health Services Act 1988 insert—

"(2B)In performing its functions and exercising its powers, the board of a public hospital must have regard to—

(a)the needs and views of patients and other users of the health services provided by the public hospital and of the community served by the public hospital; and

(b)the need to ensure that the public hospital uses its resources in an effective and efficient manner; and

(c)the need to ensure that resources of the Victorian health sector generally are used effectively and efficiently.".

(5)In section 33(7) and (8) of the Health Services Act 1988, for "members" (wherever occurring) substitute "directors".

(6)For section 33(10) of the Health Services Act 1988 substitute—

"(10)In nominating a person for appointment to a board, the Minister must—

(a)ensure that both men and women are adequately represented on the board; and

(b)have regard to any prescribed matters; and

(c)for the period of 3 years from the commencement of section 9(6) of the Health Legislation Amendment (Quality and Safety) Act 2017, consider the desirability of limiting the term of re-appointment of a director so that the combined term of the director's initial appointment, any re-appointment and any proposed re-appointment does not exceed 9 consecutive years.".

(7)In section 33(11) of the Health Services Act 1988, for "member" (where twice occurring) substitute "director".

10Terms and conditions of appointment

(1)In section 34(1) of the Health Services
Act 1988—

(a)for "member" substitute "director";

(b)after "re-appointment" insert ", subject to section 34A".

(2)In section 34(2) of the Health Services Act 1988, for "member" (where twice occurring) substitute "director".

(3)In section 34(3) of the Health Services Act 1988—

(a)for "member of a board" substitute "director of a board";

(b)for "member of the board" substitute "director of the board".

11New section 34A inserted

After section 34 of the Health Services Act 1988 insert—

"34A   Eligibility for re-appointment

(1)A director of a board of a public hospital is only eligible for re-appointment if the combined term of the initial appointment, any re-appointment and any proposed re‑appointment does not exceed 9 consecutive years.

(2)Despite subsection (1), a director may be re‑appointed if the Minister is satisfied that exceptional circumstances exist which justify the re-appointment.

(3)This section applies in relation to a re‑appointment made on or after the third anniversary of the commencement of this section.".

12Removal and resignation

In section 35(1) and (2) of the Health Services Act 1988, for "member" substitute "director".

13New section 35A inserted

After section 35 of the Health Services Act 1988 insert—

"35A   Chairperson of board

(1)The board of a public hospital may—

(a)elect one of its directors to be the chairperson of the board; and

(b)remove from office the chairperson elected under this subsection.

(2)As soon as practicable after the board of a public hospital elects a director to be chairperson or removes the chairperson from office, the board must give written notice to the Secretary of the election or removal.

(3)The Minister may—

(a)appoint a director of the board of a public hospital to be the chairperson of the board; and

(b)remove from office the chairperson of the board of a public hospital, irrespective of whether the chairperson is appointed by the Minister or elected by the board.

(4)As soon as practicable after the Minister appoints a director to be chairperson or removes the chairperson from office (irrespective of whether the chairperson is appointed by the Minister or elected by the board), the Minister must give written notice to the board of the appointment or removal.".

14Membership of board not office of profit

(1)Insert the following heading to section 38 of the Health Services Act 1988—

"Directorship of the board not office of profit".

(2)In section 38 of the Health Services Act 1988—

(a)for "member of a board" substitute "director of a board";

(b)in paragraphs (a), (c) and (d), for "the member" substitute "the director";

(c)in paragraph (b), for "member's" substitute "director's".

15Immunity

In section 38A(1) and (2) of the Health Services Act 1988, for "member" substitute "director".

16New section 39 inserted

After section 38A of the Health Services Act 1988 insert—

"39   Guidelines of Minister

The Minister may publish in the Government Gazette guidelines relating to the role and procedure of boards of public hospitals and how they may carry out their functions.".

17Validity of acts or decisions

In section 40 of the Health Services Act 1988—

(a)in paragraph (a), for "member" substitute "director";

(b)in paragraph (b), for "membership" substitute "directorship".

18Appointment of delegate to board

(1)In section 40C(1) of the Health Services Act 1988, after "performance of the public hospital" insert "or, in the case of a new public hospital, will assist the orderly establishment of the public hospital or the performance of the public hospital".

(2)In section 40C(2) of the Health Services Act 1988, for "member" substitute "director".

(3)In section 40C(3) of the Health Services Act 1988—

(a)after "improve the performance of the public hospital" insert "or, in the case of a new public hospital, will assist the orderly establishment of the public hospital or the performance of the public hospital";

(b)in paragraph (a), after "hospital" insert "or the future financial performance of the new public hospital";

(c)in paragraph (b), after "hospital" insert "or to be provided by the new public hospital";

(d)in paragraph (c), after "complying" insert ", or the new public hospital will comply,".

19Obligations of board to delegate

In section 40E(b) of the Health Services Act 1988, for "members" (where twice occurring) substitute "directors".

20New sections 40F, 40G, 40H and 40I inserted

After section 40E of the Health Services Act 1988 insert—

"40F   Strategic plans

(1)The Secretary may direct the board of a public hospital to prepare and submit to the Secretary for approval a strategic plan for the operation of the public hospital.

(2)The board of a public hospital must comply with a direction of the Secretary under subsection (1).

(3)The Secretary may—

(a)approve a strategic plan; or

(b)refuse to approve a strategic plan.

(4)The board of a public hospital must advise the Secretary if it wishes to exercise its functions in a manner inconsistent with its approved strategic plan.

40GWhen statement of priorities to be prepared

(1)For each financial year, the board of a public hospital must—

(a)prepare, in consultation with the Secretary, a proposed statement of priorities in relation to the public hospital in accordance with section 40H; and

(b)submit the proposed statement of priorities to the Secretary.

(2)If the board of the public hospital and the Secretary fail to agree on a statement of priorities before 1 October of the financial year to which the statement of priorities relates, the Secretary may make a statement of priorities in relation to the public hospital in accordance with section 40H.

(3)A statement of priorities may be varied at any time if the board of the public hospital and the Secretary so agree.

(4)If the board of the public hospital and the Secretary fail to agree to a proposed variation of a statement of priorities within 28 days after the variation is proposed, the Secretary may—

(a)vary the statement of priorities; or

(b)refuse to vary the statement of priorities.

(5)A member of the public may request the Secretary to provide a copy of a statement of priorities or any variation made to a statement of priorities.

(6)The Secretary must comply with a request made under subsection (5).

(7)This section does not apply to—

(a)the Queen Elizabeth Centre; or

(b)the Tweddle Child and Family Health Service.

40HContent of statement of priorities

A public hospital's statement of priorities under section 40G must—

(a)be consistent with the strategic plan approved by the Secretary for the operation of the public hospital; and

(b)specify for the financial year to which it relates—

(i)the services to be provided by the public hospital and the funds to be provided to the public hospital; and

(ii)the objectives, priorities and key performance outcomes to be met by the public hospital; and

(iii)the performance indicators, targets or other measures against which the public hospital's performance is to be assessed and monitored; and

(iv)how and when the public hospital must report to the Secretary on its performance in relation to the specified objectives, priorities and key performance outcomes; and

(v)any other matters that, from time to time, are agreed by the Secretary and the board of the public hospital or are determined by the Secretary.

40IFunctions of the chief executive officer of public hospital

(1)The functions of the chief executive officer of a public hospital are—

(a)to manage the public hospital in accordance with—

(i)the financial and business plans, strategies and budgets developed by the board; and

(ii)the instructions of the board; and

(b)to prepare material for consideration by the board including the following—

(i)statements of priorities, other than in the case of the Queen Elizabeth Centre and the Tweddle Child and Family Health Service;

(ii)strategic plans, business plans, strategies and budgets; and

(c)to ensure that the board and any committees established or appointed by the board are assisted and provided with relevant information to enable them to perform their functions effectively and efficiently; and

(d)to implement effective and accountable systems to monitor and improve the quality, safety and effectiveness of health services provided by the public hospital; and

(e)to ensure that the public hospital continuously strives to improve the quality and safety of the health services it provides and to foster innovation; and

(f)to ensure that the board's decisions are implemented effectively and efficiently throughout the public hospital; and

(g)to inform the board in a timely manner of any issues of public concern or risks that affect or may affect the public hospital; and

(h)to inform the board, the Secretary and the Minister without delay of any significant issues of public concern or significant risks affecting the public hospital.

(2)In performing the chief executive officer's functions under this section, the chief executive officer must have regard to—

(a)the needs and views of patients and other users of the health services provided by the public hospital and of the community served by the public hospital; and

(b)the need to ensure that the public hospital uses its resources in an effective and efficient manner; and

(c)the need to ensure that resources of the Victorian public health sector generally are used effectively and efficiently.".

21Hospital must comply with directions of Secretary

After section 42(1)(ia) of the Health Services
Act 1988 insert—

"(ib)action to be taken to ensure that the health services provided are safe, patient-centred and appropriate;

(ic)a requirement that the hospital provide the Secretary specified information by a specified date and in the specified manner to ensure that the objectives of the Act are being met;".

22Powers of Minister

After section 58(1)(c) of the Health Services Act 1988 insert—

"(caa)in the case of a public hospital, has failed—

(i)to provide safe, patient-centred and appropriate health services; or

(ii)to foster continuous improvement in the quality and safety of the care and health services it provides; or".

23Secretary may commission audits

For section 63A(1)(b) of the Health Services Act 1988 substitute—

"(b)is providing safe, patient-centred and appropriate health services; or

(ba)is fostering continuous improvement in the quality and safety of the care and health services it provides; or".

24Proposal for amalgamation

(1)For section 64(1) of the Health Services Act 1988 substitute—

"(1)This section applies if the Secretary considers that—

(a)the provision of health services by 2 or more registered funded agencies (none of which is a denominational hospital) may be more effective if the agencies were amalgamated; or

(b)governance of the quality and safety of health services provided by 2 or more registered funded agencies (none of which is a denominational hospital) may be more effective if the agencies were amalgamated.

(1A)The Secretary must cause to be prepared a report outlining proposals and options for the more effective provision of health services or the more effective governance of the quality or safety of health services provided, as the case may be, including the proposal for amalgamation.".

(2)In section 64(2) and (4) of the Health Services Act 1988, for "subsection (1)" substitute "subsection (1A)".

(3)In section 64(7) of the Health Services Act 1988, after "provision of health services" insert ", or the more effective governance of the quality or safety of health services provided,".

(4)Section 64(8) of the Health Services Act 1988 is repealed.

25Voluntary amalgamations

In section 64A(3)(a) of the Health Services Act 1988, after "services" insert ", or the more effective governance of the quality or safety of health services provided,".

26Board of directors

(1)In section 65S(2)(d) of the Health Services Act 1988—

(a)in paragraph (v) and (vi) after "quality" insert ", safety";

(b)in paragraph (vii), after "quality" insert "and safety".

(2)For section 65S(2)(e) and (f) of the Health Services Act 1988 substitute—

"(e)subject to the Secretary's approval, to appoint a chief executive officer and to determine the chief executive officer's remuneration and the terms and conditions of appointment;

(f)during each financial year, to monitor the performance of the chief executive officer of the public health service (including at least one formal assessment in relation to that financial year), having regard to the objectives, priorities and key performance outcomes specified in the service's statement of priorities under section 65ZFA;".

(3)In section 65S(2)(j) of the Health Services Act 1988, after "Quality" insert "and Safety".

(4)In section 65S(4)(c) of the Health Services Act 1988, for "hospital" substitute "health".

27Directors

After section 65T(3)(a) of the Health Services Act 1988 insert—

"(ab)for a period of 3 years from the commencement of section 27 of the Health Legislation Amendment (Quality and Safety) Act 2017, the desirability of limiting the term of re-appointment of a director so that the combined term of the director's initial appointment, any re-appointment and any proposed re-appointment does not exceed 9 consecutive years is considered; and

(ac)regard is had to any prescribed matters; and".

28Terms and conditions

In section 65U(2) of the Health Services Act 1988, after "that board" insert "unless the Minister is satisfied that exceptional circumstances exist that justify a further re‑appointment of the director".

29Chief executive officer

Section 65XA(1) of the Health Services Act 1988 is repealed.

30New section 65XAB inserted

After section 65XA of the Health Services Act 1988 insert—

"65XAB   Guidelines of Minister

The Minister may publish in the Government Gazette guidelines relating to the role and procedure of boards of public health services and how they may carry out their functions.".

31Functions of the chief executive officer

(1)In section 65XB(1)(d) of the Health Services Act 1988, for "the quality" substitute "andimprove the quality, safety".

(2)In section 65XB(1)(e) of the Health Services Act 1988, after "quality" insert "and safety".

(3)In section 65XB(2)(c) of the Health Services Act 1988, for "hospital" substitute "health".

32Appointment of delegate to board

(1)In section 65ZAA(1) of the Health Services Act 1988, after "performance of the public health service" insert "or, in the case of a new public health service, will assist the orderly establishment of the public health service or the performance of the public health service".

(2)In section 65ZAA(3) of the Health Services Act 1988—

(a)after "improve the performance of the public health service" insert "or, in the case of a new public health service, will assist the orderly establishment of the public health service or the performance of the public health service";

(b)in paragraph (a), after "meeting" insert ", or that the new public health service will meet,";

(c)after paragraph (a) insert—

"(ab)the quality and safety of the health services provided by the public health service or to be provided by the new public health service; and".

33Application

(1)In section 70(1) of the Health Services Act 1988—

(a)for "may apply" substitute "must apply";

(b)in paragraph (ba), for "establishment; or" substitute "establishment.";

(c)paragraph (c) is repealed.

(2)After section 70(1) of the Health Services Act 1988 insert—

"(1A)A person may apply to the Secretary for approval in principle of a variation of the registration of a health service establishment being either or both of the following—

(a)an alteration in the number of beds to which the registration relates;

(b)in the case of a day procedure centre or private hospital—

(i)a variation of the kinds of prescribed health services that may be carried on at, or from, the premises; or

(ii)a variation of the number of beds that may be used for specified kinds of prescribed health services.".

(3)In section 70(2) of the Health Services Act 1988, after "subsection (1)" insert "or (1A)".

34Criteria for grant of approval in principle

(1)In section 71(1)(c)(iv) of the Health Services Act 1988, for "premises." substitute "premises; and".

(2)After section 71(1)(c) of the Health Services Act 1988 insert—

"(d)in relation to an application made under section 70(1), whether—

(i)any relevant planning permit has been issued; and

(ii)the design of the premises proposed to be constructed is satisfactory, having regard to the kind of health services to be provided at, or from, the premises; and

(iii)the plans for the proposed premises comply with the health service establishment premises guidelines;

and

(e)whether the applicant has met the prescribed requirements in relation to health service establishments.".

35Criteria for registration

(1)For section 83(1)(i) of the Health Services Act 1988 substitute—

"(i)whether the applicant has complied with the health service establishment premises guidelines; and

(ia)whether the applicant—

(i)will provide, safe, patient-centred and appropriate health services; and

(ii)will foster continuous improvement in the quality and safety of care and health services provided; and".

(2)In section 83(1)(m) of the Health Services Act 1988, for "in which" substitute "at which, orfrom which,".

36Certificate of registration

(1)In section 85(a) of the Health Services Act 1988, for "on on" substitute "at, or from,".

(2)After section 85(c) of the Health Services Act 1988 insert—

"(d)whether, from the registered premises, a prescribed health service may be provided at other premises and, if so, the prescribed health service and the kind of those other premises; and".

37Criteria for renewal of registration

(1)After section 89(1)(e) of the Health Services Act 1988 insert—

"(f)the proprietor—

(i)is providing safe, patient-centred and appropriate health services; and

(ii)is fostering continuous improvement in the quality and safety of care and health services provided; and

(iii)is complying with the health service establishment premises guidelines; and".

(2)After section 89(1) of the Health Services Act 1988 insert—

"(1A)In addition to the matters referred to in subsection (1), in determining whether to renew or refuse to renew the registration of a health service establishment, the Secretary must consider any action that has been taken in relation to the health service establishment under Division 4 or 5 of Part 4.".

38Endorsement of certificate of registration

(1)In section 96(a) of the Health Services
Act 1988—

(a)for "produce" substitute "return";

(b)omit "for endorsement".

(2)For section 96(b) of the Health Services Act 1988 substitute—

"(b)the Secretary must issue a new certificate of registration in accordance with section 85 or a new certificate of renewal of registration in accordance with section 91, as the case may be, which is endorsed with particulars of the variation.".

39New sections 100 and 101 inserted

Before section 102 of the Health Services Act 1988 insert—

"100   Suspension of registration of health service establishment in relation to provision of specified prescribed health service

(1)The Secretary may suspend the registration of a health service establishment in relation to the provision of a specified prescribed health service if the Secretary is satisfied that—

(a)the proprietor of the health service establishment is providing the specified prescribed health service in a manner that poses serious risk to patient health or safety; or

(b)the proprietor of the health service establishment has failed to provide the specified prescribed health service in accordance with this Act, the regulations or any conditions of registration; or

(c)the proprietor of the health service establishment is not likely to continue to provide the specified prescribed health service in accordance with this Act, the regulations or any conditions of registration; or

(d)the proprietor of the health service establishment has been convicted of an offence against this Act or the regulations; or

(e)in the case of a proprietor who is a natural person, the proprietor of the health service establishment has ceased to be a fit and proper person to carry on the health service establishment; or

(f)in the case of a proprietor that is a body corporate, a director or other officer of the body corporate who exercises or may exercise control over the health service establishment has ceased to be, or is not, a fit and proper person.

(2)If under this section the Secretary determines to suspend the registration of a health service establishment in relation to the provision of a specified prescribed health service, the Secretary must give the proprietor of the health service establishment a written notice that states—

(a)the reason for the suspension; and

(b)the date on which the suspension takes effect; and

(c)that the Secretary will lift the suspension if the Secretary is satisfied that the reason for the suspension no longer exists.

(3)A suspension of registration under this section only prevents the health service establishment from providing the specified prescribed health service.

101Suspension of registration of health service establishment

(1)The Secretary may suspend the registration of a health service establishment if the Secretary is satisfied that—

(a)the proprietor of the health service establishment is operating the health service establishment in a manner that poses serious risk to patient health or safety; or

(b)the proprietor of the health service establishment has failed to carry on the health service establishment in accordance with this Act, the regulations or any conditions of registration; or

(c)the proprietor of the health service establishment is not likely to continue to carry on the health service establishment in accordance with this Act, the regulations or any conditions of registration; or

(d)the proprietor of the health service establishment has been convicted of an offence against this Act or the regulations; or

(e)in the case of a proprietor who is a natural person, the proprietor of the health service establishment has ceased to be a fit and proper person to carry on the health service establishment; or

(f)in the case of a proprietor that is a body corporate, a director or other officer of the body corporate who exercises or may exercise control over the health service establishment has ceased to be, or is not, a fit and proper person.

(2)If under this section the Secretary determines to suspend the registration of a health service establishment, the Secretary must give the proprietor of the health service establishment a written notice that states—

(a)the reason for the suspension; and

(b)the date on which the suspension takes effect; and

(c)that the Secretary will lift the suspension if the Secretary is satisfied that the reason for the suspension no longer exists.".

40Revocation of registration of health service establishment

After section 102(1)(a) of the Health Services Act 1988 insert—

"(ab)has failed to comply with the requirements of an approved accreditation scheme; or

(ac)has operated, or is operating, the health service establishment in a manner that poses serious risk to patient health or safety; or".

41Directions of Secretary

After section 105(2) of the Health Services Act 1988 insert—

"(3)The Secretary may direct in writing the proprietor of a health service establishment to provide specified information by a specified date and in a specified manner to ensure that the objectives of this Act are being met.

(4)The proprietor of a health service establishment to whom a direction under subsection (3) has been given must not without reasonable excuse fail to comply with the direction.

Penalty:60 penalty units in the case of a natural person;

300 penalty units in the case of a body corporate.

(5)The proprietor of a health service establishment must not, without reasonable excuse and in purported compliance with a direction under subsection (3), give information that is false or misleading in a material particular.

Penalty:60 penalty units in the case of a natural person;

300 penalty units in the case of a body corporate.".

42New sections 106, 107, 107A, 107B, 108, 108A and 108B inserted

After section 105 of the Health Services Act 1988 insert—

"106   Health service establishment premises guidelines

(1)The Secretary may approve guidelines in relation to the design, construction, fittings and equipment of premises, or of parts of premises, at which a health service establishment is located.

(2)The Secretary must cause a notice of approval of guidelines under subsection (1) to be published—

(a)in the Government Gazette; and

(b)on the Department's Internet site.

(3)A notice of approval of guidelines must state—

(a)where a copy of the health service establishment premises guidelines may be obtained; and

(b)the date on which the health service establishment premises guidelines take effect; and

(c)whether the health service establishment premises guidelines operate as at the date of the approval or as amended from time to time.

(4)The proprietor of a health service establishment must not, without reasonable excuse, fail to comply with the requirements of any applicable health service establishment premises guidelines.

107Approval of accreditation scheme

(1)The Secretary may approve an accreditation scheme in relation to a specified kind of health service establishment.

(2)The Secretary must cause a notice of approval of an accreditation scheme under subsection (1) to be published—

(a)in the Government Gazette; and

(b)on the Department's Internet site.

(3)A notice of approval of an accreditation scheme must state—

(a)where a copy of the accreditation scheme may be obtained; and

(b)the date on which the accreditation scheme takes effect; and

(c)the kind of health service establishment to which the accreditation scheme applies.

107AProprietor to comply with approved accreditation scheme

The proprietor of a health service establishment must not, without reasonable excuse, fail to comply with the requirements of an applicable approved accreditation scheme.

Penalty:60 penalty units in the case of a natural person;

300 penalty units in the case of a body corporate.

107BProprietor to notify Secretary of failure to obtain accreditation or of revocation of accreditation

(1)The proprietor of a health service establishment who is notified that the proprietor's application for accreditation under an approved accreditation scheme is refused must not, without reasonable excuse, fail to give notice of the refusal to the Secretary within 24 hours after receiving the notification.

Penalty:60 penalty units in the case of a natural person;

300 penalty units in the case of a body corporate.

(2)The proprietor of a health service establishment who is notified that the health service establishment's accreditation under an approved accreditation scheme is revoked must not, without reasonable excuse, fail to give notice of the revocation to the Secretary within 24 hours after receiving the notification.

Penalty:60 penalty units in the case of a natural person;

300 penalty units in the case of a body corporate.

108Application for approval of alterations to clinical area

(1)The proprietor of a health service establishment whose premises include a clinical area substantially altered, renovated or extended after registration of the premises was granted must not, without reasonable excuse, fail to apply to the Secretary for permission to use that altered, renovated or extended clinical area.

Penalty:60 penalty units in the case of a natural person;

300 penalty units in the case of a body corporate.

(2)An application under subsection (1)—

(a)must be in the prescribed form; and

(b)must be accompanied by the prescribed fee.

(3)The proprietor must give to the Secretary any further information relating to the application that the Secretary requests.

108ADecision on application for approval of alterations to clinical area

(1)In determining whether to approve or refuse the use of a substantially altered, renovated or extended clinical area, the Secretary—

(a)may carry out an inspection of the clinical area; and

(b)must consider—

(i)any relevant registration criteria set out in section 83; and

(ii)any report made following an inspection of the clinical area.

(2)The Secretary must decide whether to approve or refuse the use of a substantially altered, renovated or extended clinical area of a health service establishment.

(3)The Secretary must give written notice to the proprietor of the decision within the period determined under section 104.

108BOffence to use altered, renovated or extended clinical area without approval

The proprietor of a health service establishment whose premises include a clinical area that is substantially altered, renovated or extended must not, without reasonable excuse, use that clinical area if the Secretary has not granted approval of that use under section 108A.

Penalty:60 penalty units in the case of a natural person;

300 penalty units in the case of a body corporate.".

43Records

In section 109(4) of the Health Services Act 1988, for "subsection (3)" substitute "this section".

44New sections 110A, 110B, 110C and 110D inserted

After section 110 of the Health Services Act 1988 insert—

"110A   Minister may grant exemption from requirements of Act

(1)The Minister may exempt the proprietor of a health service establishment from any or all provisions of this Act or the regulations if the Minister reasonably believes that granting the exemption would not adversely affect the health or safety of patients.

(2)An exemption granted under subsection (1)—

(a)must be in writing and be published in the Government Gazette; and

(b)must specify the provisions of this Act or the regulations from which the proprietor is exempt; and

(c)must specify the period during which the exemption applies; and

(d)may be subject to any condition that the Minister considers to be appropriate for the purposes of protecting the health or safety of patients.

(3)The Minister, at any time by written notice to the proprietor of the health service establishment, may vary, suspend or revoke an exemption granted under subsection (1) if the Minister is satisfied that—

(a)the health or safety of patients is adversely affected; or

(b)the proprietor of the health service establishment has contravened a condition specified under subsection (2)(d).

(4)A notice of variation, suspension or revocation given under subsection (3) must be published in the Government Gazette.

110BProvision of safe health services

(1)The proprietor of a health service establishment must not, without reasonable excuse, fail to ensure that safe, patient-centred and appropriate health services are provided at, or from, the health service establishment.

Penalty:60 penalty units in the case of a natural person;

300 penalty units in the case of a body corporate.

(2)The proprietor of a health service establishment must ensure that continuous improvement in the quality and safety of care and health services provided by the health service is fostered.

110CProvision of prescribed information to the Secretary

The proprietor of a health service establishment must not, without reasonable excuse, fail to provide to the Secretary any prescribed information in relation to the health service establishment within the prescribed time.

Penalty:20 penalty units in the case of a natural person;

100 penalty units in the case of a body corporate.

110DProprietor to inform Secretary of serious risk to patient health or safety

The proprietor of a health service establishment must not, without reasonable excuse, fail to inform the Secretary that there is a serious risk to patient health or safety in relation to health services provided at, or from, the health service establishment as soon as practicable after the proprietor—

(a)receives notice of a serious risk from an agency administrating an approved accreditation scheme in relation to the health service establishment; or

(b)has any other reason to believe that there is a serious risk to patient health or safety.

Penalty:20 penalty units in the case of a natural person;

100 penalty units in the case of a body corporate.".

45Board of management

(1)Insert the following heading to section 115E of the Health Services 1988—

"Board of directors".

(2)In section 115E(1) of the Health Services Act 1988, for "management" substitute "directors".

(3)In section 115E(2) of the Health Services Act 1988—

(a)in paragraph (b), for "service." substitute "service; and";

(b)after paragraph (b) insert—

"(c)to enter into service agreements under section 115O or health service agreements, if the board considers it appropriate; and

(d)to develop strategic plans for the operation of the multi purpose service and to monitor compliance with those agreements and plans; and

(e)to develop financial and business plans, strategies and budgets to ensure the accountable and efficient provision of health services by the multi purpose service and the long term financial viability of the multi purpose service; and

(f)to establish and maintain effective systems to ensure that—

(i)the health services provided meet the needs of the communities served by the multi purpose service; and

(ii)the views of users and providers of health services are taken into account; and

(g)to monitor the performance of the multi purpose service to ensure that—

(i)the multi purpose service operates within its budget; and

(ii)its audit and accounting systems accurately reflect the financial position and viability of the multi purpose service; and

(iii)the multi purpose service adheres to—

(A)its financial and business plans; and

(B)its strategic plans; and

(C)any service agreements entered into under section 115O or any health service agreements entered into; and

(iv)effective and accountable risk management systems are in place; and

(v)effective and accountable systems are in place to monitor and improve the quality, safety and effectiveness of health services provided by the multi purpose service; and

(vi)any problems identified with the quality, safety or effectiveness of the health services provided are addressed in a timely manner; and

(vii)the multi purpose service continuously strives to improve the quality and safety of the health services it provides and to foster innovation; and

(viii)committees established or appointed by the board operate effectively; and

(h)subject to the Secretary's approval, to appoint a chief executive officer of the multi purpose service and to determine the chief executive officer's remuneration and terms and conditions of appointment; and

(i)during each financial year, to monitor the performance of the chief executive officer of the multi purpose service (including at least one formal assessment in relation to that financial year), having regard to the objectives, priorities and key performance outcomes specified in any service agreements entered into under section 115O or any health service agreements entered into by the multi purpose service; and

(j)to establish the organisational structure, including the management structure, of the multi purpose service; and

(k)to develop arrangements with other relevant agencies and service providers to enable effective and efficient service delivery and continuity of care; and

(l)to ensure that the Minister and the Secretary are advised about significant board decisions and are informed in a timely manner of any issues of public concern or risks that affect or may affect the multi purpose service; and

(m)to establish the following committees—

(i)a Finance Committee, an Audit Committee and a Quality and Safety Committee; or

(ii)a Finance and Audit Committee and a Quality and Safety Committee; and

(n)to facilitate health education; and

(o)to adopt a code of conduct for staff of the multi purpose service; and

(p)to provide appropriate training for directors; and

(q)any other functions conferred on the board by or under this Act.".

(4)After section 115E(2) of the Health Services Act 1988 insert—

"(2A)In performing its functions and exercising its powers, the board of a multi purpose service must have regard to—

(a)the needs and views of patients and other users of the health services provided by the multi purpose service and of the community served by the multi purpose service; and

(b)the need to ensure that the multi purpose service uses its resources in an effective and efficient manner; and

(c)the need to ensure that resources of the Victorian public health sector generally are used effectively and efficiently.".

(5)After section 115E(4) of the Health Services Act 1988 insert—

"(4A)For the purposes of subsection (4), the Minister or the board (as the case may be) must consider, for the period of 3 years from the commencement of section 45(5) of the Health Legislation Amendment (Quality and Safety) Act 2017, when nominating a person for the board, the desirability of limiting the term of a re‑appointment of a director so that the combined term of the director's initial appointment, any re-appointment and any proposed re-appointment does not exceed 9 consecutive years.".

(6)After section 115E(5) of the Health Services Act 1988 insert—

"(5A)For the purposes of subsections (4) and (5), the Minister or the board (as the case may be) must have regard to any prescribed matters when nominating a person or submitting a name.".

(7)In section 115E(6) of the Health Services Act 1988, for "members" substitute "directors".

(8)In section 115E(7) of the Health Services Act 1988, for "member" (where twice occurring) substitute "director".

46Terms and conditions of appointment

(1)In section 115F(1) of the Health Services
Act 1988—

(a)for "member" substitute "director";

(b)after "re-appointment" insert ", subject to section 115FA".

(2)In section 115F(2) of the Health Services Act 1988—

(a)for "member" (where twice occurring) substitute "director";

(b)after "the board" insert "and such remuneration as specified in the instrument of appointment".

(3)In section 115F(3) of the Health Services Act 1988, for "member's" (where twice occurring) substitute "director's".

47New section 115FA inserted

After section 115F of the Health Services Act 1988 insert—

"115FA   Eligibility for re-appointment

(1)A director of a board of a multi purpose service is only eligible for re-appointment if the combined term of the initial appointment, any re-appointment and any proposed re‑appointment does not exceed 9 consecutive years.

(2)Despite subsection (1), a director may be re‑appointed if the Minister if satisfied that exceptional circumstances exist which justify the re-appointment.

(3)This section applies in relation to re‑appointments made on or after the third anniversary of the commencement of this section.".

48Removal and resignation

In section 115G(1) and (2) of the Health Services Act 1988, for "member" substitute "director".

49New section 115GA inserted

After section 115G of the Health Services Act 1988 insert—

"115GA   Chairperson of board

(1)The board of a multi purpose service may—

(a)elect one of its directors to be the chairperson of the board; and

(b)remove from office the chairperson elected under this subsection.

(2)As soon as practicable after the board of a multi purpose service elects a director to be chairperson or removes the chairperson from office, the board must give written notice to the Secretary of the election or removal.

(3)The Minister may—

(a)appoint a director of the board of a multi purpose service to be the chairperson of the board; and

(b)remove from office the chairperson of the board of a multi purpose service, irrespective of whether the chairperson is appointed by the Minister or elected by the board.

(4)As soon as practicable after the Minister appoints a director to be chairperson or removes the chairperson from office (irrespective of whether the chairperson is appointed by the Minister or elected by the board), the Minister must give written notice to the board of the appointment or removal.".

50Membership of board not office of profit

(1)Insert the following heading to section 115J of the Health Services Act 1988—

"Directorship of board not office of profit".

(2)In section 115J of the Health Services Act 1988—

(a)for "member of a board" substitute "directorof a board";

(b)in paragraphs (a), (c) and (d), for "the member" substitute "the director";

(c)in paragraph (b), for "member's" substitute "director's".

51Immunity

In section 115JA(1) and (2) of the Health Services Act 1988, for "member" substitute "director".

52New sections 115JB and 115JC inserted

After section 115JA of the Health Services Act 1988 insert—

"115JB   Chief executive officer

(1)Subject to the Secretary's approval, the board of a multi purpose service must appoint or re-appoint a chief executive officer of the multi purpose service and determine the remuneration of the chief executive officer and the terms and conditions of the chief executive officer's employment.

(2)A vacancy in the office of the chief executive officer of a multi purpose service must be filled as soon as possible.

(3)The chief executive officer of a multi purpose service is subject to the direction of the board in controlling and managing the multi purpose service.

115JCFunctions of the chief executive officer

(1)The functions of the chief executive officer are—

(a)to manage the multi purpose service in accordance with—

(i)the financial and business plans, strategies and budgets developed by the board; and

(ii)the instructions of the board; and

(b)to prepare material for consideration by the board including any service agreements entered into under section 115O or any health service agreements entered into, strategic plans, business plans, strategies and budgets; and

(c)to ensure that the board and any committees established or appointed by the board are assisted and provided with relevant information to enable them to perform their functions effectively and efficiently; and

(d)to implement effective and accountable systems to monitor and improve the quality, safety and effectiveness of health services provided by the multi purpose service; and

(e)to ensure that the multi purpose service continuously strives to improve the quality and safety of the health services it provides and to foster innovation; and

(f)to ensure that the board's decisions are implemented effectively and efficiently throughout the multi purpose service; and

(g)to inform the board in a timely manner of any issues of public concern or risks that affect or may affect the multi purpose service; and

(h)to inform the board, the Secretary and the Minister without delay of any significant issues of public concern or significant risks affecting the multi purpose service.

(2)In performing the chief executive officer's functions, the chief executive officer must have regard to—

(a)the needs and views of patients and other users of the health services that the multi purpose service provides and the community that the multi purpose service serves; and

(b)the need to ensure that the multi purpose service uses its resources in an effective and efficient manner; and

(c)the need to ensure that resources of the Victorian public health sector generally are used effectively and efficiently.".

53Validity of acts or decisions

In section 115L of the Health Services
Act 1988—

(a)in paragraph (a), for "member" substitute "director";

(b)in paragraph (b), for "membership" substitute "directorship".

54Section 115M substituted and new sections 115MA, 115MB, 115MC and 115MD inserted

For section 115M of the Health Services Act 1988 substitute—

"115M   Multi purpose service must comply with directions of Secretary

(1)For the purpose of carrying out functions and powers under this Act or for carrying out the objectives of this Act, the Secretary may give written directions to a multi purpose service in relation to all or any of the following matters—

(a)the purposes of the multi purpose service, including those to which it must give priority;

(b)the manner in which, and extent to which, the multi purpose service must provide training for persons engaged or intending to engage in health care;

(c)the number and type of persons which the multi purpose service must employ or from whom it must obtain services and their conditions of employment or service;

(d)the number and types of patients the multi purpose service must treat;

(e)the facilities, services, equipment or supplies which the multi purpose service must or must not use;

(f)the extent to which, and the conditions on which, the multi purpose service must make use of facilities, services, equipment or supplies provided by another multi purpose service;

(g)the extent to which, and the conditions on which, the multi purpose service must allow another multi purpose service to make use of its facilities, services, equipment or supplies;

(h)the extent to which, and the conditions on which, a multi purpose service is required to obtain or purchase facilities, services, equipment or supplies provided by another multi purpose service or another person or body;

(i)a requirement that a multi purpose service appoint HPV as its agent for the purposes of obtaining or purchasing goods and services and the conditions on which the appointment is to be made;

(j)a requirement that a multi purpose service provide the Secretary specified information by a specified date and in the specified manner to ensure that the objectives of the Act are being met;

(k)the manner in which, and extent to which, the admission of patients, patient care and treatment must be coordinated between multi purpose services, hospitals, supported residential services, registered funded agencies and health service establishments;

(l)the accounts and records which must be kept by the multi purpose service and the returns and other information which must be supplied to the Secretary;

(m)the inspection of its facilities and its accounts and records by the Secretary;

(n)the carrying out of audits for case mix funding purposes;

(o)action to be taken to ensure that the health services provided are safe, patient-centred and appropriate;

(p)action to be taken or avoided to enable the State to comply with the terms of any agreement made between it and the Commonwealth or any other State or a Territory.

(2)A direction may be given generally in relation to multi purpose services or to a specified multi purpose service or class of multi purpose services.

(3)The Secretary must ensure that a direction under subsection (1)(h) or (i) to a multi purpose service is not inconsistent with a HPV direction or a purchasing policy that applies to the multi purpose service.

(4)The Secretary must give a copy of a direction under this section to each multi purpose service to which it applies.

(5)The board of a multi purpose service must comply with a direction under this section that applies to that multi purpose service.

(6)A direction applying to a multi purpose service under this section has effect despite anything to the contrary in any health service agreement or interim funding statement having effect in relation to that multi purpose service.

115MAGuidelines of Minister

The Minister may publish in the Government Gazette guidelines relating to the role and procedure of boards of multi purpose services and how they may carry out their functions.

115MBAppointment of delegate to board

(1)The Minister may appoint not more than 2 delegates to the board of a multi purpose service if the Minister considers that such an appointment will assist the board to improve the performance of the multi purpose service or, in the case of a new multi purpose service, will assist the orderly establishment of the multi purpose service or the performance of the multi purpose service.

(2)A delegate is not a director of the board of a multi purpose service.

(3)In determining if an appointment of a delegate under subsection (1) will assist the board to improve the performance of the multi purpose service or, in the case of a new multi purpose service, will assist the orderly establishment of the multi purpose service or the performance of the multi purpose service, the Minister must have regard to—

(a)the financial performance of the multi purpose service or the future financial performance of the new multi purpose service; and

(b)the quality and safety of the health services provided by the multi purpose service or to be provided by the new multi purpose service; and

(c)whether the multi purpose service is complying, or the new multi purpose service will comply, with the health service agreement to which it is a party; and

(d)whether the board has requested such an appointment.

(4)The Minister may appoint a delegate irrespective of whether the board has requested such an appointment.

(5)The instrument of appointment of a delegate—

(a)must be published in the Government Gazette; and

(b)must specify the terms and conditions of appointment; and

(c)may specify any remuneration to which the delegate is entitled.

(6)A delegate—

(a)subject to subsections (7) and (8), holds office for the period specified in the instrument of appointment, being a period of not more than 12 months from the date of appointment; and

(b)is eligible for re-appointment; and

(c)is entitled to be reimbursed reasonable expenses incurred in holding office as delegate; and

(d)is in respect of the office of delegate subject to the Public Administration Act 2004 (other than Part 3 of that Act).

(7)A delegate may resign by writing signed by that person and delivered to the Minister.

(8)The Minister may revoke the appointment of a delegate.

115MCFunctions of delegate

The functions of a delegate to the board of a multi purpose service are—

(a)to attend meetings of the board and observe its decision-making processes; and

(b)to provide advice or information to the board to assist it in understanding its obligations under this Act; and

(c)to advise the Minister and the Secretary on any matter relating to the multi purpose service or the board.

115MDObligations of board to delegate

The board of a multi purpose service must—

(a)permit a delegate appointed to the board to attend any meeting of the board or any meeting of its committees established or appointed; and

(b)provide a delegate appointed to the board with information or a copy of any notice or other document provided to the directors of the board or to the members of any of the board's committees at the same time as the information, notice or other document is provided to the directors or members.".

55New section 115NA inserted

After section 115N of the Health Services Act 1988 insert—

"115NA   Strategic plans

(1)The Secretary may direct the board of a multi purpose service—

(a)to prepare a strategic plan for the operation of the multi purpose service; and

(a)to submit the strategic plan to the Secretary for approval.

(2)The board of a multi purpose service must comply with a direction of the Secretary under this section.

(3)The Secretary may—

(a)approve a strategic plan; or

(b)refuse to approve a strategic plan.

(4)The board of a multi purpose service must advise the Secretary if it wishes to exercise its functions in a manner inconsistent with its approved strategic plan.".

56Powers of Minister

After section 115Q(b) of the Health Services Act 1988 insert—

"(ba)has failed to provide safe, patient-centred and appropriate health services; or

(bb)has failed to foster continuous improvement in the quality and safety of the care and health services it provides; or".

57New section 115SA inserted

After section 115S of the Health Services Act 1988 insert—

"115SA   Proposal for amalgamation

(1)This section applies if the Secretary considers that—

(a)the provision of health services by 2 or more bodies, each being a registered funded agency or a multi purpose service, may be more effective if the bodies were amalgamated; or

(b)governance of the quality and safety of health services provided by 2 bodies, each being a registered funded agency or a multi purpose service, may be more effective if the bodies were amalgamated.

(2)The Secretary must cause to be prepared a report outlining proposals and options for the more effective provision of health services or the more effective governance of the quality or safety of health services, as the case may be, including the proposal for amalgamation.

(3)The Secretary must cause copies of each report under subsection (2)—

(a)to be given to each body concerned; and

(b)to be made available on request to members of the public.

(4)Any person may make submissions to the Secretary on the report before the expiration of the period specified in the report (not being less than 60 days after a copy is given to each body concerned).

(5)If, after considering any submissions made to the Secretary on the report during the period referred to in subsection (4), the Secretary considers the proposal for amalgamation should be implemented in whole or in part, the Secretary must advise the Minister accordingly.

(6)The Secretary must not advise the Minister to implement the proposal for amalgamation in whole or in part unless the Secretary is satisfied that the amalgamation is likely to result in the more effective provision of health services, or the more effective governance of the quality or safety of health services, having regard to—

(a)the possible benefits to Victoria in the form of improved health services throughout Victoria or in any part of Victoria; and

(b)the possible economic consequences of amalgamation.".

58Amalgamations

(1)Insert the following heading to section 115T of the Health Services Act 1988—

"Voluntary amalgamations".

(2)In section 115T(3)(a) of the Health Services Act 1988, after "Victoria" insert "or the more effective governance of the quality or safety of health services provided".

59Governor in council may order amalgamation

In section 115U(1) of the Health Services Act 1988, after "section" insert "115SA or".

60Part 6A heading substituted

For the heading to Part 6A of the Health Services Act 1988 substitute—

"PART 6A—BETTER CARE VICTORIA BOARD".

61Establishment of Health Innovation and Reform Council

For section 134P of the Health Services Act 1988 substitute—

"134P   Establishment of the Better Care Victoria Board

The Better Care Victoria Board is established.".

62Functions of the Council

For section 134Q of the Health Services Act 1988 substitute—

"134Q   Functions of the Better Care Victoria Board

The functions of the Board are to provide advice to, and report to, the Minister and the Secretary on—

(a)the effective and efficient delivery of quality health services; and

(b)strategies to support innovation and improvement in the health sector.".

63Members of the Council

(1)In the heading to section 134R of the Health Services Act 1988, for "Council" substitute "Board".

(2)For section 134R(1) of the Health Services Act 1988 substitute—

"(1)The Board consists of not fewer than 6, and not more than 12, members appointed by the Minister by Order published in the Government Gazette.".

(3)In section 134R(2), (4) and (5) of the Health Services Act 1988, for "Council" substitute "Board".

(4)Section 134R(3) of the Health Services Act 1988 is repealed.

(5)After section 134R(4) of the Health Services Act 1988 insert—

"(4A)The Minister must appoint a member to be the Deputy Chairperson of the Board.".

64Procedure at meetings

(1)For section 134S(1) of the Health Services Act 1988 substitute—

"(1)The Chairperson must preside at a meeting of the Board.".

(2)After section 134S(1) of the Health Services Act 1988 insert—

"(1A)If the Chairperson is not present at a meeting, the Deputy Chairperson is to preside at the meeting.

(1B)The members present must elect one of their number to preside at the meeting if—

(a)the Chairperson is not present at a meeting; and

(b)the Deputy Chairperson is not present at the meeting or there is no Deputy Chairperson.".

(3)In section 134S(2) and (3) of the Health Services Act 1988, for "Council" (wherever occurring) substitute "Board".

65Removal and resignation

In section 134T(1) and (2) of the Health Services Act 1988, for "Council" substitute "Board".

66Committee of the Council

(1)In the heading to section 134U of the Health Services Act 1988, for "Council" substitute "Board".

(2)In section 134U(1) and (2) of the Health Services Act 1988, for "Council" (wherever occurring) substitute "Board".

67Regulations

In regulation 158(1) of the Health Services Act 1988—

(a)in paragraph (d) omit "safety,";

(b)after paragraph (d) insert—

"(da)requirements to be complied with by health service establishments in relation to the quality and safety of the health services they provide;".

68New section 178C inserted

After section 178B of the Health Services Act 1988 insert—

"178C   Transitional provisions—Health Legislation Amendment (Quality and Safety) Act 2017

(1)Despite the change of the name of the Health Innovation and Reform Council to the Better Care Victoria Board, the Better Care Victoria Board is the same body as the Health Innovation and Reform Council in existence immediately before the commencement of section 61 of the Health Legislation Amendment (Quality and Safety) Act 2017.

(2)On and from the commencement of section 61 of the Health Legislation Amendment (Quality and Safety) Act 2017, a reference in any Act (other than the Health Legislation Amendment (Quality and Safety) Act 2017), subordinate instrument or other document, unless the context otherwise requires, to the Health Innovation and Reform Council is to be construed as a reference to the Better Care Victoria Board.

(3)On and from the commencement of section 61 of the Health Legislation Amendment (Quality and Safety) Act 2017, the members and the chairperson of the Health Innovation and Reform Council in office immediately before that commencement continue in office as a member or as chairperson of the Better CareVictoria Board, as the case may be, onthe same terms and conditions as those onwhich they were originally appointed forthe remainder of their original terms.

(4)On and from the commencement of section 61 of the Health Legislation Amendment (Quality and Safety) Act 2017, a committee of the Health Innovation and Reform Council appointed immediately before that commencement continues in existence and is taken to be a committee appointed by the Better Care Victoria Board.".

PART 3—AMENDMENT OF THE AMBULANCE SERVICES ACT 1986

69Definitions

In section 3(1) of the Ambulance Services Act 1986, in the definition of Metropolitan Ambulance Service, for "General Post Office at Melbourne" substitute "north-east corner of Bourke and Elizabeth Street, Melbourne".

70Functions of the Secretary

For section 9(e) of the Ambulance Services Act 1986 substitute—

"(e)to ensure that ambulance services—

(i)provide safe, patient-centred and appropriate services; and

(ii)foster continuous improvement in the quality and safety of the care and services they provide; and".

71General powers of the Secretary

After section 10(4)(g) of the Ambulance Services Act 1986 insert—

"(ga)the provision by the ambulance service of specified information to the Secretary, within a specified period and by a specified manner; and

(gb)the action to be taken by the ambulance service to ensure that it provides safe, patient-centred and appropriate services; and".

72Objectives of ambulance services

(1)After section 15(b) of the Ambulance Services Act 1986 insert—

"(ba)to provide safe, patient-centred and appropriate services;".

(2)After section 15(d) of the Ambulance Services Act 1986 insert—

"(da)to foster continuous improvement in the quality and safety of the care and services it provides;".

73Board of ambulance service

(1)For section 17(3) of the Ambulance Services Act 1986 substitute—

"(3)In making a recommendation under subsection (1A), the Minister must—

(a)ensure that the board includes at least one person who is able to reflect the perspectives of users of ambulance services; and

(b)ensure that women and men are adequately represented; and

(c)have regard to any prescribed matters; and

(d)for the period of 3 years from the commencement of section 73(1) of the Health Legislation Amendment (Quality and Safety) Act 2017, consider the desirability of limiting the term of a reappointment of a director so that the combined term of the director's initial appointment, any reappointment and any proposed reappointment does not exceed 9 consecutive years.".

(2)In section 17(7) of the Ambulance Services Act 1986, after "reappointed" insert ", subject to section 17A".

74New section 17A inserted

After section 17 of the Ambulance Services Act 1986 insert—

"17A   Eligibility for reappointment

(1)A director of a board of an ambulance service is only eligible for reappointment if the combined term of the initial appointment, any reappointment and any proposed reappointment does not exceed 9 consecutive years.

(2)Despite subsection (1), a director may be reappointed if the Minister is satisfied that exceptional circumstances exist which justify the reappointment.

(3)This section applies in relation to a reappointment made on or after the third anniversary of the commencement of this section.".

75Functions of board of ambulance service

(1)For section 18(1)(e)(v) of the Ambulance Services Act 1986 substitute—

"(v)effective and accountable systems are in place to monitor and improve the quality, safety and effectiveness of services provided by the ambulance service; and".

(2)In section 18(1)(e)(vi) of the Ambulance Services Act 1986, for "quality" substitute "quality, safety".

(3)In section 18(1)(e)(vii) of the Ambulance Services Act 1986, after "quality" insert "and safety".

(4)For section 18(1)(g) of the Ambulance Services Act 1986 substitute—

"(g)during each financial year, to monitor the performance of the chief executive officer of the ambulance service (including at least one formal assessment in relation to that financial year), having regard to the objectives, priorities and key performance outcomes specified in the ambulance service's statement of priorities under section 22F; and".

76New section 19A inserted

After section 19 of the Ambulance Services Act 1986 insert—

"19A   Guidelines of Minister

The Minister may publish in the Government Gazette guidelines relating to the role and procedure of boards of ambulance services and how they may carry out their functions.".

77Chief executive officer

For section 21(3)(d) and (e) of the Ambulance Services Act 1986 substitute—

"(d)to implement effective and accountable systems to monitor and improve the quality, safety and effectiveness of services provided by the ambulance service; and

(e)to ensure that the ambulance service continuously strives to improve the quality and safety of the services it provides and to foster innovation; and".

78Appointment of an administrator

(1)In section 35(1)(d) of the Ambulance Services Act 1986, for "section 34B." substitute "section 34B; or".

(2)After section 35(1)(d) of the Ambulance Services Act 1986 insert—

"(e)has failed to ensure that the ambulance service—

(i)provides safe, patient-centred and appropriate services; or

(ii)fosters continuous improvement in the quality and safety of the care and services it provides.".

79Secretary may commission audits

For section 37(1)(b) of the Ambulance Services Act 1986 substitute—

"(b)is providing safe, patient-centred and appropriate services; or

(ba)is fostering continuous improvement in the quality and safety of the care and services it provides; or".

PART 4—AMENDMENT OF THE MENTAL HEALTH ACT 2014

80Objectives

(1)In section 10(h) of the Mental Health Act 2014, for "illness." substitute "illness;".

(2)After section 10(h) of the Mental Health Act 2014 insert—

"(i)to promote continuous improvement in the quality and safety of the mental health services provided by mental health service providers.".

81Functions of the Secretary

(1)In section 118(1)(b) of the Mental Health Act 2014, after "that are" insert "person‑centred,".

(2)For section 118(1)(d) of the Mental Health Act 2014 substitute—

"(d)to collect, compile and analyse data about the provision of mental health services for the purposes of—

(i)funding, managing, planning, monitoring, evaluating and improving mental health services provided by mental health service providers; and

(ii)research into mental illness, mental health and related fields;".

(3)In section 118(1)(e) of the Mental Health Act 2014, after "providers" insert "and the quality and safety of the mental health services they provide".

82Functions of the Institute

For section 330(h) of the Mental Health Act 2014 substitute—

"(h)to promote continuous improvement in the quality and safety of forensic mental health and related services provided in Victoria;

(ha)to promote innovations in the provision of forensic mental health and related services in Victoria;".

83Powers of the Institute

(1)In section 331(3)(b) of the Mental Health Act 2014, for "manner." substitute "manner; and".

(2)After section 331(3)(b) of the Mental Health Act 2014 insert—

"(c)the need to ensure that it continuously strives—

(i)to improve the quality and safety of the services it provides; and

(ii)to promote innovation.".

84Board of directors

In section 332(2)(b) of the Mental Health Act 2014, for "Institute and" substitute "Institute to perform its functions and exercise its powers and for".

85New section 332A inserted

After section 332 of the Mental Health Act 2014 insert—

"332A   Functions of the board

The functions of the board of the Institute are—

(a)to develop statements of priorities and strategic plans for the operation of the Institute and to monitor compliance with those statements and plans; and

(b)to develop financial and business plans, strategies and budgets to ensure the accountable and efficient performance of the functions of the Institute and the long term financial viability of the Institute; and

(c)to monitor the performance of the Institute to ensure that—

(i)the Institute operates within its budget; and

(ii)its audit and accounting systems accurately reflect the financial position and viability of the Institute; and

(iii)the Institute adheres to—

(A)its financial and business plans; and

(B)its strategic plans; and

(C)its statements of priorities; and

(iv)effective and accountable risk management systems are in place; and

(v)effective and accountable systems are in place to monitor and improve the quality, safety and effectiveness of mental health services provided by the Institute; and

(vi)any problems identified with the quality, safety or effectiveness of the mental health services provided are addressed in a timely manner; and

(vii)the Institute continuously strives to improve the quality and safety of the mental health services it provides and to promote innovation; and

(viii)committees established or appointed by the Institute operate effectively; and

(d)during each financial year, to monitor the performance of the chief executive officer of the Institute (including at least one formal assessment in relation to that financial year), having regard to the objectives, priorities and key performance outcomes specified in the Institute's statement of priorities under section 344; and

(e)to develop arrangements with other relevant agencies and service providers to enable effective and efficient service delivery and continuity of care; and

(f)to establish a finance committee, an audit committee and a quality and safety committee; and

(g)to provide appropriate training for directors.".

86Appointment of directors

After section 334(2) of the Mental Health Act 2014 insert—

"(3)In making a recommendation to the Governor in Council, the Minister must have regard to any prescribed matters.".

87New sections 339A, 339B, 339C and 339D inserted

After section 339 of the Mental Health Act 2014 insert—

"339A   Guidelines of Minister

The Minister may publish in the Government Gazette guidelines relating to the role and procedure of the board and how it may carry out its functions.

339BAppointment of delegate to board

(1)The Minister may appoint not more than 2 delegates to the board if the Minister considers that such an appointment will assist the board to improve the performance of the Institute.

(2)A delegate is not a director of the board.

(3)In determining if an appointment of a delegate under subsection (1) will assist the board to improve the performance of the Institute, the Minister must have regard to—

(a)the financial performance of the Institute; and

(b)the quality and safety of the mental health services provided by the Institute; and

(c)whether the board has requested such an appointment.

(4)The Minister may appoint a delegate irrespective of whether the board has requested such an appointment.

(5)The instrument of appointment of a delegate—

(a)must be published in the Government Gazette; and

(b)must specify the terms and conditions of appointment; and

(c)may specify any remuneration to which the delegate is entitled.

(6)A delegate—

(a)subject to subsections (7) and (8), holds office for the period specified in the instrument of appointment, being a period of not more than 12 months from the date of appointment; and

(b)is eligible for re-appointment; and

(c)is entitled to be reimbursed reasonable expenses incurred in holding office as delegate; and

(d)is in respect of the office of delegate subject to the Public Administration Act 2004 (other than Part 3 of that Act).

(7)A delegate may resign by writing signed by that person and delivered to the Minister.

(8)The Minister may revoke the appointment of a delegate.

339CFunctions of delegate

The functions of a delegate to the board are—

(a)to attend meetings of the board and observe its decision-making processes; and

(b)to provide advice or information to the board to assist it in understanding its obligations under this Act; and

(c)to advise the Minister and the Secretary on any matter relating to the Institute or the board.

339DObligations of board to delegate

The board must—

(a)permit a delegate appointed to the board to attend any meeting of the board or any meeting of its committees; and

(b)provide a delegate appointed to the board with information or a copy of any notice or other document provided to the directors of the board or to the members of any of the board's committees at the same time as the information, notice or other document is provided to the directors or members.".

88Chief executive officer

(1)In section 340(1) of the Mental Health Act 2014—

(a)for "The" substitute "Subject to the Secretary's approval, the";

(b)in paragraph (b) omit ", subject to the Secretary's approval,".

(2)After section 340(3)(c) of the Mental Health Act 2014 insert—

"(ca)to implement effective and accountable systems to monitor and improve the services provided by the Institute to ensure continuous improvement in the quality and safety of the services it provides; and

(cb)to ensure that any problem in relation to the quality, safety or effectiveness of services provided by the Institute are addressed in a timely manner; and

(cc)to ensure that the Institute continuously strives—

(i)to improve the quality and safety of the services it provides; and

(ii)to promote innovation; and

(cd)to manage the Institute in accordance with—

(i)the financial and business plans, strategies and budgets developed by the board; and

(ii)the instructions of the board; and

(ce)to ensure that the board and the committees established or appointed by the board are assisted and provided with relevant information to enable them to perform their functions effectively and efficiently; and

(cf)to ensure that the board's decisions are implemented effectively and efficiently throughout the Institute; and

(cg)to inform the board in a timely manner of any issues of public concern or risks that affect or may affect the Institute; and

(ch)to inform the board, the Secretary and the Minister without delay of any significant issues of public concern or significant risks affecting the Institute.".

89Statute law revision amendment—Mental Health Amendment Act 2015

In section 31(1) of the Mental Health Amendment Act 2015, for "to" substitute "person to".

PART 5—AMENDMENT OF THE PUBLIC HEALTH AND WELLBEING ACT 2008

90Disclosure of information held by a prescribed Consultative Council

After section 41(1)(f) of the Public Health and Wellbeing Act 2008 insert—

"(fa)the Chief Health Officer;

(fb)the chief psychiatrist appointed under section 119 of the Mental Health Act 2014;".

91Confidentiality obligations applying in respect of a prescribed Consultative Council

In section 42(2) of the Public Health and Wellbeing Act 2008, for "section 37 or 41" substitute "section 37, 41, 46A or 48A".

92Constitution of CCOPMM

In section 45(1) of the Public Health and Wellbeing Act 2008, for "not more than 12" substitute "the".

93New section 46A inserted

After section 46 of the Public Health and Wellbeing Act 2008 insert—

"46A   CCOPMM guidelines, compliance and reporting

(1)The CCOPMM may prepare and issue guidelines relevant to its functions.

(2)If the CCOPMM issues guidelines, the CCOPMM must publish notice of their issue—

(a)in the Government Gazette; and

(b)on the CCOPMM's Internet site.

(3)A notice under subsection (2) must state—

(a)where a copy of the CCOPMM guidelines may be obtained; and

(b)the date on which the CCOPMM guidelines take effect.

(4)The CCOPMM may—

(a)monitor compliance with its guidelines by health services; and

(b)report to the Secretary any instances of non-compliance identified; and

(c)collect information from health services in relation to the preparation of its guidelines and the monitoring of compliance with those guidelines.

(5)A report under subsection (4) must include the following—

(a)the type of non-compliance, including a failure to provide information to the CCOPMM in relation to the preparation of guidelines and the monitoring of compliance with those guidelines;

(b)the health service which failed to comply with the guidelines;

(c)how the non-compliance may have been prevented;

(d)the status of any investigation by CCOPMM of the non-compliance;

(e)any remedial action taken by the relevant health service.".

94New sections 48A and 48B inserted

After section 48 of the Public Health and Wellbeing Act 2008 insert—

"48A   Preventable harm to be reported to Secretary

(1)If the CCOPMM determines that a maternal death, stillbirth or death of a child was likely to have been preventable, the Chairperson of the CCOPMM must provide a report to the Secretary of that death or stillbirth.

(2)If the CCOPMM determines that an instance of severe obstetric or paediatric morbidity was likely to have been preventable, the Chairperson of the CCOPMM must provide a report to the Secretary of that morbidity.

(3)A report under subsection (1) or (2) must include the following—

(a)the type of incident causing the mortality or morbidity;

(b)the health service connected with the mortality or morbidity, if any;

(c)how the mortality or morbidity was likely to have been preventable;

(d)the status of any investigation by CCOPMM of the incident;

(e)any remedial action taken by the relevant health service.

48BConfidentiality of reports under

section 48A

(1)This section applies to a person who is or has been the recipient of a report referred to in section 48A.

(2)A person must not disclose to any other person a report referred to in section 48A unless the Secretary considers that the disclosure is in the public interest.

(3)Subsection (2) has effect despite anything to the contrary in section 12 of the Audit Act 1994.

(4)The Freedom of Information Act 1982 does not apply to a report referred to in section 48A.

(5)Part 5 and HPP 6 of the Health Records Act 2001 do not apply to a report referred toin section 48A.

(6)Nothing in this section prevents a person from including information in any document that does not contain any particulars which would be likely to lead to the identification of a person from whom the information was obtained or to whom the information relates.

(7)A person must not, and cannot, be required to produce before any court or tribunal or any board, agency or other person a report referred to in section 48A unless the Secretary considers that the production is in the public interest.".

95Immunisation status certificate

(1)In section 147(1)(a) of the Public Health and Wellbeing Act 2008, for "Australian Childhood Immunisation Register kept under section 46B of the Health Insurance Act 1973" substitute "Australian Immunisation Register kept under section 8 of the Australian Immunisation Register Act 2015".

(2)In section 147(1)(b)(ii) of the Public Health and Wellbeing Act 2008, for "recognised immunisation provider within the meaning of section 46A of the Health Insurance Act 1973" substitute "recognised vaccination provider as defined in section 4 of the Australian Immunisation Register Act 2015".

96Issuing of immunisation status certificate

In section 148(2)(a) of the Public Health and Wellbeing Act 2008, for "recognised immunisation provider within the meaning of section 46A of the Health Insurance Act 1973" substitute "recognised vaccination provider as defined in section 4 of the Australian Immunisation Register Act 2015".

PART 6—AMENDMENT OF THE HEALTH COMPLAINTS ACT 2016

97Power to delegate

For section 120 of the Health Complaints Act 2016 substitute—

"120   Power to delegate

(1)The Commissioner must not delegate—

(a)any function or power of the Commissioner under any of the following provisions—

(i)Part 7;

(ii)Part 8;

(iii)section 103;

(iv)section 124;

(v)section 128;

(vi)Division 4 of Part 11; or

(b)this power of delegation.

(2)The Commissioner, by instrument, may delegate to an Assistant Commissioner—

(a)any function or power of the Commissioner under—

(i)section 24; or

(ii)section 29; or

(iii)section 30; or

(iv)section 31; or

(v)section 35; or

(vi)section 39; or

(vi)section 41; or

(vii)section 62; or

(viii)section 65: or

(ix)section 69; or

(b)any function or power that the Commissioner may delegate under subsection (3).

(3)The Commissioner, by instrument, may delegate to a person referred to in section 121 (other than an Assistant Commissioner) or to a class of that person any function or power of the Commissioner under this Act except a function or power referred to in subsection (1) or (2)(a).".

PART 7—REPEAL OF AMENDING ACT

98Repeal of amending Act

This Act is repealed on 1 July 2019.

Note

The repeal of this Act does not affect the continuing operation of the amendments made by it (see section 15(1) of the Interpretation of Legislation Act 1984).

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ENDNOTES

1   General information

See for Victorian Bills, Acts and current authorised versions of legislation and up-to-date legislative information.

Minister's second reading speech—

Legislative Assembly: 21 June 2017

Legislative Council: 22 August 2017

The long title for the Bill for this Act was "A Bill for an Act to amend the Health Services Act 1988, the Ambulance Services Act 1986, the Mental Health Act 2014, the Public Health and Wellbeing Act 2008 and the Mental Health Amendment Act 2015 and for other purposes."