Hon. Amber-Jade Sanderson asks about the financial implications of terminating the Midland Health Campus Services Agreement, specifically regarding termination payments. The Minister declines to provide specific figures due to commercial confidentiality, but outlines the general calculation method.

AnsweredQoN 329Legislative Council
Asked
25 March 2015
Portfolio
Health

QuestionView source ↗

MIDLAND
HEALTH CAMPUS SERVICES AGREEMENT
329. Hon AMBER-JADE SANDERSON to the parliamentary secretary representing the Minister for Health:
I refer to the Midland Health Campus Services Agreement.
(1) If the
state were to terminate the services agreement for convenience during the
operational phase in accordance with clause 29.1, what amount or range of
amounts would the state have to pay in order to cover —
(a) the convenience termination
payment; and
(b) the private patient facility
termination payment?
(2) If an exact figure cannot be provided for (1), on what
formula would the figure be calculated?

AnswerView source ↗

I thank the honourable member for some notice of the
question.
(1) The termination schedule is commercial-in-confidence;
thus it cannot be released.
(2) The
quantum of compensation payable in the event of termination for convenience is
a function of the date on which termination for convenience occurs. For Midland
Health Campus, the amount payable in the event of a termination for convenience
reduces over time until it becomes a fixed amount, subject to indexation, in
the final six years of the contract term.

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