Medicare Australia (Functions of Chief Executive Officer) Amendment Direction 2007 (No. 2)

Administered by Services Australia

Legislation au F2007L02583 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

 

Issued by the authority of the Minister for Human Services

 

Medicare Australia Act 1973

 

Medicare Australia (Functions of Chief Executive Officer) Amendment Direction 2007 (No. 2)

 

Background

 

Section 4 of the Medicare Australia Act 1973 (the Act) establishes Medicare Australia. 

 

Sections 5 and 8AG of the Act create the office of Chief Executive Officer of Medicare Australia (CEO), with statutory functions.  The CEO is, under the Minister and through the Secretary to the Department of Human Services, responsible for managing Medicare Australia.

 

Section 5 of the Act sets out a number of mechanisms for conferral of functions on the CEO.  Paragraph 5(1)(d) of the Act provides that the CEO has any functions the Minister, by writing, directs the CEO to perform.

 

The purpose of the Medicare Australia (Functions of Chief Executive Officer) Amendment Direction 2007 (No. 2) (the Direction) is for the Minister for Human Services to confer a function on the Chief Executive Officer of Medicare Australia (CEO of Medicare Australia) to enter into a contract with the National E-Health Transition Authority (NEHTA) to provide services for carrying out the UHI program and to scope, develop, build and test a UHI program system in accordance with the contract.

 

In February 2006, the Council of Australian Governments (COAG) committed funding for the development of a single national approach to identifying individuals and healthcare providers for healthcare purposes.  This funding has been provided to NEHTA to establish Unique Healthcare Identifiers (UHIs) for each individual, healthcare provider and healthcare organisation in Australia.

 

The UHI program is being developed to support progress toward the proposed establishment of a national Shared Electronic Health Records System.  One of the key building blocks to enabling access to a system of electronic health records is to establish a means for uniquely identifying consumers and health professionals.  This will reduce the possibility of information being sent to the wrong health professional or being assigned to the wrong consumer. 

 

COAG funding to NEHTA for the development and implementation of UHIs was premised on leveraging Medicare Australia’s infrastructure, including the Consumer Directory Management System (CDMS) to establish individual healthcare identifiers (IHIs) for consumers and the Provider Directory System (PDS) for data to establish the identifiers for healthcare providers (HPIs).

 

Medicare Australia received a ‘Request for Proposal’ (RFP) (on a single source provider basis) from NEHTA to provide a scoping, development and operational response.

 

This Direction provides that the CEO of Medicare Australia may enter into a contract with NEHTA to provide services relating to the UHI program and may scope, develop, build and test a UHI program system in accordance with the contract.

 

 

Details of Direction

 

Section 1 – Name of Direction

 

This section provides for the Amending Direction to be named the “Medicare Australia (Functions of Chief Executive Officer) Amendment Direction 2007 (No. 2)”.

 

Section 2 – Commencement

 

This section provides for the Amending Direction to commence on the day after it is registered as a legislative instrument.

 

Section 3 – Amendment of Medicare Australia (Functions of Chief Executive Officer) Direction 2005

 

This section provides that the Medicare Australia (Functions of the Chief Executive Officer) Direction 2005 (the Direction) is amended as set out in Schedule 1.

 

Schedule 1 – Amendments

 

Item [1] - After section 34

 

This item inserts a new section 35 into the Direction.

 

This section at subsection 35(1) defines certain terms used in the Amendment Direction.

 

Subsection 35(2) provides that the CEO may undertake the work in relation to the UHI program in that it confers on the CEO the function to:

(a)   enter into a contract with NEHTA for Medicare Australia to provide services relating to the UHI program, and

(b)   to scope, develop, build and test the UHI program system in accordance with the contract mentioned in paragraph (a).

 

Subsection 35(2), at paragraph 35(2)(c), confers a function on the CEO to:

(a)               copy personal information from nominated Medicare Australia databases;

(b)               apply a process to that copied personal information to create new data that cannot be used to identify the individuals to whom it relates; and

(c)               to use the created data;

to perform the functions provided under paragraph 35(2)(b).

 

Subsection 35(3) provides that Medicare Australia’s ability to perform its obligations under the contract mentioned in paragraph 35(2)(a) is limited to scoping, developing, building and testing the UHI program system.

 

Consultation

 

The Direction was settled after consultation with the Department of Health and Ageing and the Department of Human Services.

 

 

The Direction is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

 

Overview

The Medicare Australia (Functions of Chief Executive Officer) Amendment Direction 2007 (No. 2) was enacted to address the need for a unified national approach to identifying individuals and healthcare providers for healthcare purposes, as committed to by the Council of Australian Governments in February 2006. This direction was established under the Medicare Australia Act 1973 and was issued by the Minister for Human Services. It aims to enable the Chief Executive Officer of Medicare Australia to enter into a contract with the National E-Health Transition Authority (NEHTA) to provide services for the Unique Healthcare Identifier (UHI) program, which is a critical step towards the establishment of a national Shared Electronic Health Records System. The policy objective is to reduce the risk of information being sent to the wrong health professional or being assigned to the wrong consumer by establishing a means for uniquely identifying consumers and health professionals. The Direction allows the CEO of Medicare Australia to perform specific functions, such as entering into a contract with NEHTA, scoping, developing, building, and testing a UHI program system, and handling personal information to create data that cannot be used to identify individuals. The Direction was developed in consultation with the Department of Health and Ageing and the Department of Human Services and is considered a legislative instrument under the Legislative Instruments Act 2003.

Scope and Application

The Medicare Australia (Functions of Chief Executive Officer) Amendment Direction 2007 (No. 2) amends the Medicare Australia (Functions of the Chief Executive Officer) Direction 2005, extending the functions of the Chief Executive Officer (CEO) of Medicare Australia to facilitate the implementation of the Unique Healthcare Identifier (UHI) program. This amendment allows the CEO to enter into a contract with the National E-Health Transition Authority (NEHTA) to provide services related to the UHI program, including the scoping, development, building, and testing of a UHI system. The purpose of this Direction is to leverage Medicare Australia's infrastructure to develop a national system of unique identifiers for individuals, healthcare providers, and organisations, supporting the establishment of a national Shared Electronic Health Records System. The Direction applies to the CEO of Medicare Australia and is intended to support the national UHI program, ensuring the secure and accurate identification of healthcare consumers and providers. The scope of the Direction is limited to the functions necessary to carry out the UHI program within the parameters of the contract with NEHTA.

Key Provisions

The Medicare Australia (Functions of Chief Executive Officer) Amendment Direction 2007 (No. 2) amends the Medicare Australia (Functions of the Chief Executive Officer) Direction 2005 by introducing new functions for the CEO of Medicare Australia. Specifically, under Section 35(2)(b) of the Amendment Direction, the CEO is now permitted to enter into a contract with the National E-Health Transition Authority (NEHTA) to provide services related to the UHI program and to scope, develop, build, and test a UHI program system in accordance with the contract. This amendment is significant because it allows for the establishment of a national system for uniquely identifying individuals and healthcare providers, which is essential for the development of a national Shared Electronic Health Records System. The Amendment Direction imposes certain obligations on the CEO of Medicare Australia. Under Section 35(2)(b), the CEO is required to enter into a contract with NEHTA to provide services for the UHI program and to scope, develop, build, and test a UHI program system. Additionally, the CEO must ensure that personal information is copied from nominated Medicare Australia databases and that a process is applied to create new data that cannot be used to identify individuals, as specified in Section 35(2)(c). This data is then used to perform the functions outlined in Section 35(2)(b). These obligations are intended to facilitate the development and implementation of the UHI program, which is a key component of the national health strategy. Breaches of the obligations imposed by the Amendment Direction can lead to various consequences. While the Direction itself does not explicitly outline specific offences or penalties, violations of the terms of the contract between the CEO of Medicare Australia and NEHTA could potentially result in legal actions, including claims for damages or breach of contract. Furthermore, failure to adhere to the requirements for handling personal information, as outlined in Section 35(2)(c), could lead to penalties under the Privacy Act 1988. The Privacy Act imposes stringent obligations on the handling of personal information, and non-compliance can result in substantial fines, up to a maximum of $2.1 million for corporations and $210,000 for individuals, depending on the severity and intent of the breach. These potential consequences underscore the importance of adhering to the provisions of the Amendment Direction.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.