Hon. Amber-Jade Sanderson questions the government's handling of the Peel Health Campus private operation contract renewal, specifically regarding formal notice to Ramsay Health Care and the lack of a public sector comparator. The government confirms no formal notice was given, citing contractual obligations to enter negotiations.

AnsweredQoN 1013Legislative Council
Asked
18 September 2014
Portfolio
Health

QuestionView source ↗

PEEL
HEALTH CAMPUS — PRIVATE OPERATION CONTRACT
1013. Hon AMBER-JADE SANDERSON to the parliamentary secretary representing the Minister for Health:
I refer to the private operation
contract for Peel Health Campus and the requirement that the government must
give notice to the private operator by June 2014 that it will be seeking to
renegotiate the contract, which comes to an end in 2017.
(1) Has the
government given formal notice to Ramsay Health Care under the contract to
formally renegotiate the contract?
(2) If so, why
will the contract not be subject to the full glare of competition or simply
rolled over to the status quo?
(3) Was that
formal notice preceded by a public sector comparator for the renewal of the
contract?
(4) If no to (3), why not?

AnswerView source ↗

I thank the honourable member for
some notice of the question.
(1) No. The
health services agreement requires the state and the operator of Peel Health
Campus to enter into negotiations as outlined by clause 18.9, ''Renewal
of Term'', which states that promptly following the commencement of the
seventeenth year of the term—August 2014—the parties must enter
into negotiations in good faith with a view to reaching agreement as soon as
practically possible thereafter on whether the term should be extended and if
so, for what period or periods it should be extended and in what manner the
provisions of the agreement should be amended or varied to facilitate such
extension. The Department of Health has sought advice from the State Solicitor's
Office in relation to advising the Department of Health and the Minister for
Health on this matter.
(2)–(4) Not applicable.

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