❓ Mr. Cook questions the Minister for Health regarding Health Solutions' request for a 60-year lease extension at Peel Health Campus in exchange for infrastructure upgrades. The Minister acknowledges the request is under review to determine the best option for the Mandurah region.
AnsweredQoN 552Legislative Assembly
QuestionView source ↗
PEEL
HEALTH CAMPUS — HEALTH SOLUTIONS
552. Mr R.H. COOK to the Minister for Health:
I refer to the recent announcement by Health Solutions, the
private operator of Peel Health Campus, to expand the private wing of that
hospital.
(1) Can the
minister confirm that the Health Solutions contract at that hospital will
expire in 2017, with the possible option to extend by just another five years?
(2) Can the
minister confirm that Health Solutions has now asked for an extraordinary
60-year lease on that hospital land, effectively locking up its contract for
that period; and, if so, how does the minister intend to respond to this
request?
HEALTH CAMPUS — HEALTH SOLUTIONS
552. Mr R.H. COOK to the Minister for Health:
I refer to the recent announcement by Health Solutions, the
private operator of Peel Health Campus, to expand the private wing of that
hospital.
(1) Can the
minister confirm that the Health Solutions contract at that hospital will
expire in 2017, with the possible option to extend by just another five years?
(2) Can the
minister confirm that Health Solutions has now asked for an extraordinary
60-year lease on that hospital land, effectively locking up its contract for
that period; and, if so, how does the minister intend to respond to this
request?
AnswerView source ↗
(1)–(2) The answer is yes and yes. I do not know what
else the member wants me to say.
Mr R.H. Cook : How
do you intend to respond?
Dr K.D. HAMES :
Interject on me so I can answer some more!
Mr R.H. Cook :
There's the third point to the question, which is: how do you intend to
respond?
Dr K.D. HAMES : I
do not know how I intend to respond yet. Health Solutions has put that
proposal. Yes, the contract goes until 2017 and, yes, there is potential for
expansion. Health Solutions has put to the Department of Health a proposal for
an extension of the lease, I think by the amount that the member said, and in
return it will spend a significant amount of money in building a new emergency
department and a new private wing and will hand over to us the private wing it
has. The health department is currently assessing that, and it will report back
to tell me which is the best option. There are two potential options. One is to
say no and wait until 2017. Health Solutions has that option to continue, so
obviously that limits to some degree the options we have. Do we go out and seek
alternative bidders to take over the management of that hospital? What we need
to consider is whether those additional funds and costs are in the best
interest of the Mandurah region. Which option is best? Therefore, I have asked
the department to do an unbiased representation back to me about those
potential options. I asked today when I should receive that response, and the
indication is within the next few weeks. Consequently, we will hopefully make a
decision on which path to follow in the relatively near future.
else the member wants me to say.
Mr R.H. Cook : How
do you intend to respond?
Dr K.D. HAMES :
Interject on me so I can answer some more!
Mr R.H. Cook :
There's the third point to the question, which is: how do you intend to
respond?
Dr K.D. HAMES : I
do not know how I intend to respond yet. Health Solutions has put that
proposal. Yes, the contract goes until 2017 and, yes, there is potential for
expansion. Health Solutions has put to the Department of Health a proposal for
an extension of the lease, I think by the amount that the member said, and in
return it will spend a significant amount of money in building a new emergency
department and a new private wing and will hand over to us the private wing it
has. The health department is currently assessing that, and it will report back
to tell me which is the best option. There are two potential options. One is to
say no and wait until 2017. Health Solutions has that option to continue, so
obviously that limits to some degree the options we have. Do we go out and seek
alternative bidders to take over the management of that hospital? What we need
to consider is whether those additional funds and costs are in the best
interest of the Mandurah region. Which option is best? Therefore, I have asked
the department to do an unbiased representation back to me about those
potential options. I asked today when I should receive that response, and the
indication is within the next few weeks. Consequently, we will hopefully make a
decision on which path to follow in the relatively near future.
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