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**Who it affects

• The State (Minister, Treasurer), the Department and the Department CEO (central decision‑makers: ss.10–15, 19, 20, 36B, 36C).
• Health service providers (statutory corporate bodies) and their boards or chief executives who run public hospitals and facilities (ss.32–36, Part 8).
• Health executives, chief executives and other employees of providers (Part 9) — their contracts, transfers, disciplinary regime and industrial rights are specifically regulated (ss.118, 121–138, Parts 10–11).
• Patients and users of public health services — fee rules, recovery of compensable charges, and confidentiality protections affect their costs and data privacy (ss.55–58, 214–220).
• Contracted health entities and non‑government providers who supply services under contract (ss.6 definition, 23).
• Local governments and third parties in relation to funding, leases, and reserve management where property transfers occur (ss.69, 194, 266–270).

**Why it matters (official aims, then practical implications)

• The Act formally re‑organises delivery of public health services in WA around system management, accountabilities and service agreements. The stated objects are system‑wide health promotion, equity, safety, integrated patient‑centred care, efficiency and workforce engagement (s.4).

• Mechanically, it centralises strategic direction and monitoring in the Department CEO (system manager role: s.19), while creating corporatised service providers with powers to trade, contract and hold land (ss.32, 35–36). It creates binding policy frameworks and directions that limit local discretion (ss.26–31).

• It gives the State stronger tools to: recover costs from compensation payments (ss.57A–57D, 58), manage financial distress in providers (ss.66–66B), transfer property and restructure providers (ss.194, 195–201), and to require data and compliance (ss.20, 52, 175–177).

**Testing the official rationale against costs, incentives and trade‑offs (with section pointers)

• Who pays?

  • The State: funds core public health services and may underwrite borrowing or guarantee provider obligations with Treasurer consent (ss.36B–36C; s.63 re National Health Funding).
  • Patients or compensation payees: providers can charge for services unless exempt and can recover "compensable" charges from compensation payers or recipients when compensation is paid (ss.55–57D). That shifts some cost recovery towards third‑party payers in personal injury claims.

• Who decides?

  • Central decisions: Minister (policy and orders, s.13; fees by order, s.56; land/transfer orders, ss.194, 195), Treasurer (approvals on borrowing/transactions, ss.36B, 38), Department CEO (policy frameworks, directions, s.26–31; system management, s.19).
  • Local decisions: boards or chief executives run day‑to‑day operations but within binding service agreements and policy frameworks (ss.34, 46, 26–27).

• Behavioural incentives and trade‑offs:

  • Centralisation incentives: binding frameworks and directions (ss.26–31) standardise practice across providers, reducing local policy variation but concentrating discretion in the Department CEO. That may improve coordination but reduce local managerial autonomy.
  • Revenue‑generation/commercialisation: providers are authorised to engage in commercial activities and sell services or facilities subject to policy frameworks (s.35). That creates incentives to earn non‑State revenue but requires balancing with core public service obligations (s.35(1)).
  • Fee recovery from compensation payers (ss.57A–57D) introduces an incentive for providers to pursue third‑party recovery, which can lower State/ taxpayer burden but may affect how compensation settlements are structured (regulations on apportionment and notice powers at s.58).

• Compliance, administrative and implementation costs:

  • Providers face a heavier compliance workload: service agreements, reporting performance and financial information, responding to Department CEO directions, maintaining records in the central health information system (ss.46, 52, 67, 214–215).
  • The Department and Minister have new administrative tasks: drafting policy frameworks, issuing binding directions, managing transfers of land and assets, and preparing inquiries (ss.26–31, 194, 183–193).

• Bureaucratic discretion and control points:

  • Wide delegations to the Department CEO and the Minister (ss.15, 24), plus power to issue binding, publicly available policy frameworks (ss.26–27), create many points where policy choices can materially change provider behaviour.
  • Financial controls (Treasurer consent for borrowing and Minister/Treasurer approvals for significant transactions, ss.36B, 38) create checkpoints but also potential bottlenecks.

• Effects on private enterprise and competition:

  • The Act authorises the Minister and providers to participate in business arrangements and commercial activities (ss.14, 35–36). Those powers allow state entities to form partnerships or commercial ventures with private parties. Where the State competes with private providers, this may affect market dynamics; the Act requires Treasurer notification/approval in many cases (s.14(3)).

• Concentrated benefits, diffuse costs and rent‑seeking risk:

  • Concentrated benefits: parties that gain through Ministerial orders, exemptions, or stock transfers (ss.37–39, 194) may capture asset value; the ability to exempt transactions (s.39) or adopt fee schedules by order (s.56) concentrates discretion.
  • Diffuse costs: increased reporting, regulatory compliance and potential patient charges (ss.52, 67, 55).
  • Rent‑seeking/capture risk arises where Minister/Treasurer approvals, exemptions and policy frameworks can be tailored to particular transactions or classes of provider (ss.14(3)–(6), 38–39). The Act requires some public availability of policy frameworks (s.26(5)) and Gazette publication of orders (many sections) which partly mitigates opaque decision‑making.

• Substitution and unintended consequences to monitor:

  • Providers may substitute State funding for commercial income or third‑party recoveries where allowed (s.35; ss.57A–57D), potentially shifting patient access or priorities.
  • The restriction that executive employment is not an industrial matter (s.118) increases managerial control but may reduce executive job security litigation and alter negotiating leverage.
  • Recovery of compensable charges may influence behaviour in medico‑legal and insurance settlements (s.58 allows regulations to require claims to account for recoverable charges).

Implementation risks and practical constraints

• Heavy interlocking regulations and cross‑legislation: the Act depends on and modifies other laws (PSM Act, Financial Management Act, National Health Agreement, Health Practitioner Regulation National Law). This raises coordination and drafting risks (see many cross‑references: e.g. s.20(2), s.62).

• Data and IT capability: central health information management systems (ss.214–215) are required to support performance management and legal disclosure obligations; this needs investment and governance.

• Resource constraints: the Department’s enforcement, audit and inquiry capacity must scale to exercise broad investigatory powers (Parts 13–14).

• Political or legal challenge points: asset transfers, fee orders, and employment provisions (executive non‑industrial status, s.118) are likely focal points for litigation or political scrutiny.

Concrete levers to watch (sections)

• Department CEO binding policy frameworks and directions: ss.26–31.
• Service agreements and unilateral decision mechanism: ss.43–52, especially s.47.
• Fees, Ministerial fee orders and recovery from compensation payers: ss.55–58, 57A–57D.
• Borrowing, guarantees and major transaction approvals: ss.36B–36C, 38–39.
• Land/asset transfer powers and transitional validations: ss.194, 237–240, Parts 19–20.
• Employment and industrial relations carve‑outs for executives and disciplinary scheme: ss.118; Parts 10–11.

(References shown are to sections of the Health Services Act 2016 cited in parentheses.)

26. Department CEO may issue policy frameworks 27

27. Policy framework is binding 29

Division 3 — Department CEO directions

28. Department CEO may issue directions 29

29. Relationship between Department CEO direction and other instruments and directions 30

30. Department CEO direction is binding 30

31. Department CEO direction must be given to chief executive and to board 31

Part 4 — Health service providers

Division 1 — Establishment

32. Establishment of health service provider 32

33. Status of health service provider 32

Division 2 — Functions and powers

34. Functions 33

35. Commercial and other activities 35

36. General powers 36

36A. Joint arrangements 38

36B. Power to borrow 39

36C. Guarantees 39

36D. Restricted power to enter arrangements on behalf of other health service providers or State 40

36E. Health service providers may provide services to each other 41

37. Restrictions on power to dispose of land 41

38. Transactions that require agreement or approval 42

39. Exemptions from section 38 43

40. Delegation 43

41. Execution of documents by health service provider 44

42. Contract formalities 46

Part 5 — Service agreements

Division 1 — Preliminary

43. Terms used 48

Division 2 — Commission service agreements

44. Head agreement between Department CEO and Commission CEO 49

45. Commission CEO and health service provider may enter into service agreement 49

Division 3 — Service agreements generally

46. Department CEO and health service provider must enter into service agreement 50

47. Department CEO may decide on terms of service agreement 52

48. General provisions about service agreements 52

49. Term of service agreement 53

50. Procedure to amend service agreement 53

51. Service agreement may provide for Department CEO to carry out specified functions 54

52. Review and report on service agreements 54

53. Other agreements for provision of services 55

Part 6 — Fees and charges for health services and other matters

53A. Terms used 56

53B. What is compensation 56

54. Effect of National Health Agreement 57

55. Fees and charges for provision of health services 57

56. Minister may fix fees and charges for health services 58

57. Liability of persons for health service fees and charges 59

57A. Liability for, and right to recover, compensable charges for health services 60

57B. Liability for, and right to recover, compensable charges for former hospital services 61

57C. Waiving or refunding compensable charges payable under section 57A or 57B 62

57D. Recovering amounts from compensation payer in relation to compensable charges 63

58. Regulations about recovery of compensable charges 63

59. Fees and charges for other services, goods and facilities 66

Part 7 — Accountability and financial provisions

Division 1 — Accountability

60. Minister may give directions 68

61. Minister to have access to information 68

Division 2 — Financial provisions

62. Application of Financial Management Act 2006 and Auditor General Act 2006 70

63. Health funding arrangements under the National Health Agreement 70

64. Health service provider account 70

65. Health service provider’s funds 71

66. Notice of financial difficulty 71

66A. Department CEO response to notice of financial difficulty 72

66B. Minister’s response to notice of financial difficulty 72

67. Department CEO’s power to require financial information 73

68. Various documents exempt from duty 73

69. Local governments may fund health services 74

Part 8 — Administration of health service providers

Division 1 — Governance

70. Health service provider may be governed by board or chief executive 76

Division 2 — Boards

Subdivision 1 — Constitution and procedures

71. Constitution of health service provider’s board 76

72. Chairperson and deputy chairperson 78

73. Deputy chairperson acting as chairperson 79

74. Alternate members 79

75. Remuneration and allowances 80

76. Term of office 80

76A. Removing board members from office 81

77. Casual vacancies 81

78. Leave of absence 82

78A. Delegation 82

Subdivision 2 — Duties and personal interests

79. Duties of board and committee members 83

80. Disclosure of material personal interest 84

81. Voting by interested member 85

82. Section 81 may be declared inapplicable 85

83. Quorum where section 81 applies 85

84. Minister may declare sections 81 and 83 inapplicable 86

Subdivision 3 — Meetings

85. Holding meetings 86

86. Quorum 86

87. Procedure at meetings 86

88. Voting 86

89. Holding meetings remotely 87

90. Resolution without meeting 87

91. Minutes 87

Subdivision 4 — Committees

92. Committees 87

93. Remuneration and allowances 88

Division 3 — Appointment of advisers to board, administrators, dismissal of board

94. Term used: adviser 88

95. Minister may appoint advisers to boards 88

96. Terms and conditions of appointment as adviser 89

97. Functions of advisers 89

98. Obligations of board in relation to advisers 90

99. Minister may appoint administrator for health service provider 90

100. Terms and conditions of appointment as administrator 91

101. Role of administrator 91

102. Minister may dismiss all members of board 91

Part 9 — Health service provider employment

Division 1 — Preliminary

103. Term used: employing authority 93

104. Application of PSM Act 93

Division 2 — Health Executive Service

Subdivision 1 — Purposes and composition of the Health Executive Service

104A. Purposes of Health Executive Service 94

105. Composition of Health Executive Service 94

Subdivision 2 — Chief executives

106. Chief executive 95

107. Functions and powers of chief executive 95

108. Appointment of chief executive 96

109. Procedure for appointment of chief executive 97

110. Remuneration and leave entitlements 98

111. Contract of employment 98

112. Appointment of health service provider employee or public service officer 99

113. Reappointment of chief executive 99

114. Performance criteria for chief executive and review of performance 100

115. Removal from office 100

116. Transfer from office 101

117. Acting chief executive 102

118. Employment of chief executive cannot be litigated and is not an industrial matter 103

119. Delegation 104

120. Modification of PSM Act delegation provision 105

Subdivision 3 — Health executives

121. Appointment of health executives 105

122. Reappointment of health executive 106

123. Transfer of health executives 106

123A. Acting health executives 107

124. Performance assessment 108

125. Termination of contract of employment by employing authority 108

Subdivision 4 — General provisions about chief executives and health executives

126. Terms used 109

127. Conditions of employment 109

128. Employment of chief executives and health executives governed by contract of employment 109

129. Content of contract of employment 110

130. Termination of contract of employment by executive 110

131. Notification or payment in lieu if executive is not reappointed 110

132. Right of return for certain executives 111

133. Compensation if executive has no right of return 113

134. Repayment of compensation 114

135. Election to take compensation instead of right of return 114

136. Secondment of executive 115

137. Vacation of office of executive 115

138. Operation of Division 116

Division 3 — Other staff

139. Division does not apply to Health Executive Service 116

140. Employees of health service provider 116

141. Transfers between health service providers or between health services providers and the Department 117

142. Secondment of employee 119

143. Contracts for services 119

Part 10 — Criminal and misconduct matters concerning employees

144. Terms used 120

145. Duty of staff member to report certain criminal conduct and misconduct findings 120

146. Further reporting and notification 121

147. Suspending employee if health practitioner registration is suspended or becomes conditional 122

148. Suspending employee pending decision in relation to serious offence 123

149. Salary during suspension 123

150. Disciplinary or improvement action where registration suspended or conditional or in case of serious offence 124

151. Protection of patients to be paramount consideration 125

152. Power of employing authority to take improvement or other action not limited 125

153. Appeals and referrals 126

Part 11 — Substandard performance and disciplinary matters

Division 1 — General

154. Application and effect of Part 127

155. Application of Part in respect of former employees 127

156. Power of employing authority to take improvement or other action not limited 128

157. Inconsistent provisions, instruments and contracts 128

Division 2 — Substandard performance

158. What is substandard performance 128

159. Powers in relation to substandard performance 129

Division 3 — Disciplinary matters

160. Term used: lawful redeployment breach of discipline 130

161. What is a breach of discipline 130

162. Options in relation to suspected breach of discipline 131

163. Dealing with disciplinary matter 131

164. Action against employee pending decision on breach of discipline 132

165. Special disciplinary inquiries 133

166. Consequence of report of special disciplinary inquiry 134

167. Notification of outcome of disciplinary matter 135

168. Termination of other employment if employee is dismissed 136

169. Payment and recovery of fine 136

170. When disciplinary action can be taken 137

Division 4 — Industrial matters for purposes of Industrial Relations Act 1979

171. Certain decisions and findings are industrial matters for purposes of Industrial Relations Act 1979 137

Part 12 — Redeployment and redundancy of employees

174. Application of PSM Act Part 6 and regulations made for the purposes of that Part 139

174A. Lawful directions under applied provisions 139

Part 13 — Investigations, inspections and audits

175. Department CEO may investigate, inspect or audit health service provider 141

176. Procedures 141

177. Powers of Department CEO 141

178. Incriminating information or answers 143

179. Liability for complying with requirement 143

180. Failure to comply with requirement 144

181. False information 144

Part 14 — Inquiries

182. Terms used 145

183. Department CEO may conduct inquiry 145

184. Preliminary matters 145

185. Procedure 146

186. Hearings 146

187. Inquirer’s powers 147

188. Failure to comply with requirements of notice 149

189. Incriminating answers or documents 150

190. Disruption of inquiry 150

191. False information 150

192. Protection for certain purposes 151

193. Reports 151

Part 15 — Changes to health service providers

Division 1 — Transfers of property between health entities

194. Minister may order transfer of assets, rights or liabilities 153

Division 2 — Changes to, or abolition of, health service provider

195. Amendment of order establishing health service provider 155

196. Abolition, amalgamation, merger or division of health service provider 156

197. Order may include savings and transitional provisions 156

198. Change of name 156

199. Board of health service provider 157

200. Transfer of assets, rights and liabilities 157

201. Former accounts 158

Division 3 — General provisions

203. Registration of documents 160

204. Exemption from State tax 160

205. Transitional regulations 161

206. Effect of other instruments, rights and obligations 163

Part 16 — Control of conduct and traffic on health service provider land

207. Term used: health service provider land 165

208. Declaration of health service provider land 165

209. Regulations about conduct on, and use of, health service provider land 166

210. Regulations about management and control of traffic 166

211. Requirement to leave health service provider land 169

212. Proceedings and payment of penalties 170

Part 17 — Information

Division 1 — General

213. Terms used 172

214. Health information management systems 173

215. Information held in health information management system 173

Division 2 — Disclosure of information

216. Collection, use and disclosure of information by Department CEO 174

217. Disclosure of information by health service provider 175

217A. Disclosure of health information in health information management system under legal process 175

218. Requesting information 176

Division 3 — Confidentiality

219. Confidentiality 178

220. Authorised collection, use or disclosure of information 178

221. Regulations relating to information 180

Part 18 — Miscellaneous

Division 1 — Legal proceedings

222. Commencement of prosecutions 181

223. Appointments and signatures taken to be proved 181

224. Documentary evidence of certain matters 181

225. Evidence Act 1906 not affected 182

Division 2 — Miscellaneous

226. Protection from liability for persons exercising functions 182

227. Minister and health service providers not required to be registered 183

228. Modifications for purposes of Workers Compensation and Injury Management Act 2023 Part 7 Division 2 183

229. Laying documents before House of Parliament not sitting 184

230. Regulations — general power 185

231. Regulations may adopt codes or legislation 186

Division 3 — Review of Act

232. Review of Act 187

Part 19 — Transitional and savings matters

Division 1 — Interpretation

233. Terms used 189

Division 2 — Boards and ministerial control

234. Boards abolished and Minister ceases to control hospitals 190

235. Immunity continues 190

Division 3 — Hospital boards’ assets, rights and liabilities

236. Division does not apply to land reserved under the Queen Elizabeth II Medical Centre Act 1966 191

237. Transfer to health service provider or Ministerial Body 191

238. Transfer orders 192

239. Correction of errors in transfer orders 194

240. Reserves 194

241. Registration of documents 195

242. Hospital boards to complete necessary transactions 196

243. Exemption from State tax 197

244. Operating accounts of hospital boards 197

Division 4 — Staff

245. Employees of hospital boards 198

246. Preservation of rights 199

Division 5 — Continuation of certain things

247. Completion of things done 200

248. Continuing effect of things done 200

249. Agreements, instruments, proceedings and remedies generally 200

Division 6 — Quadriplegic Centre

250. Terms used 201

251. Quadriplegic Centre continued 201

252. Quadriplegic Centre board members 202

253. Staff members 202

254. Preservation of rights 203

255. Transfer of con

This is an opening excerpt, not the complete document.