Version No. 127

Health Services Act 1988

No. 49 of 1988

Version incorporating amendments as at
23 June 2011

table of provisions

Section Page

xiv

Section Page

Part 1—Preliminary 1

1 Purpose 1

2 Commencement 1

3 Definitions 1

4 Interpretation: health service establishment 16

5 Interpretation: day procedure centre 16

5A Interpretation: trust instruments 17

6 State funded residential care service 17

7 Designated public hospital 18

8 Amendment of Schedules 18

9 Objectives 20

10 Principles applying to hostels, nursing homes and supported residential services 21

11 Exemptions 22

11A Principal function of the Secretary 22

Part 2—Health Services Development Guidelines 24

12 Preparation of draft guidelines 24

13 Notice of draft guidelines 24

14 Approval of guidelines 25

15 Publication of approved guidelines 25

16 Operation of guideline 25

17 Revocation of guideline 26

Part 2A—Public Hospital Services Principles 27

17AA Public hospital services principles 27

Part 3—Agencies 28

Division 1—Public funding 28

17AB Definition 28

17A Power to fund agencies 28

18 Criteria for public funding of agencies 28

Division 1A—Case mix funding 30

18A Definition 30

18B Case mix auditors 31

18C Functions of case mix auditors 32

18D Powers of case mix auditors 32

18E Confidentiality requirements 33

18F Repealed 34

Division 2—Registration of certain agencies 34

19 Definition 34

20 Registration as condition of funding 35

21 Conditions of registration 36

22 Registration 36

Division 3—Registered funded agencies 36

23 Repealed 36

24 Rules of registered funded agency 36

25 Chief executive officer 38

26 Health service agreements 38

27 Interim funding statements 41

28 Limits or controls on expenditure or entering into of contractsetc. 42

29 Power to invest 43

30 Approved borrowers and guarantees 43

Division 4—Public hospitals 44

31 Incorporation 44

31A Public hospitals do not represent Crown 44

32 Objects and functions of public hospitals 44

33 Board of management 45

34 Terms and conditions of appointment 47

35 Removal and resignation 47

36 Annual meetings 48

37 Procedure of board 48

38 Membership of board not office of profit 49

38A Immunity 49

39 Repealed 49

40 Validity of acts or decisions 50

40A Notice of proposed direction 50

40B Minister may issue directions 50

40C Appointment of delegate to board 51

40D Functions of delegate 53

40E Obligations of board to delegate 53

Division 4A—Repealed 53

40F–40L Repealed 53

Division 5—Public hospitals and denominational hospitals 54

41 Powers and duties 54

42 Hospital must comply with directions of Secretary 55

43 Public hospitals and denominational hospitals excluded from Corporations legislation 57

44 Trustees' power to transfer certain property 58

44A Statement of priorities for denominational hospitals 58

Division 6—Registered community health centres 58

45 Application for registration 59

46 Further information 60

47 Registration criteria 60

48 Registration 61

49 Conditions on registration 61

50 Refusal of registration 62

51 Minister may determine performance standards 62

52 Subject matter of performance standards 63

53 Community health centre to comply with performance
standards 63

54 Secretary may give directions 63

55 What happens if a registered community health centre fails to comply with the Secretary's direction? 64

56 Secretary may revoke registration 64

57 Displacement of other laws—appointment of administrator 65

57A Appointment of administrator 65

57B Cancellation of registration of community health centre 68

57C Application for review by VCAT 68

57D Register of registered community health centres 69

Division 8—Censure etc. 71

58 Powers of Minister 71

59 Censure 73

60 Suspension of admissions 74

61 Appointment of administrator 74

62 Closure 76

Division 8A—Audits of public hospitals, public health services,
multi purpose services and denominational hospitals 78

63 Definition 78

63A Secretary may commission audits 78

63B Appointment or engagement of auditors 79

63C Powers of auditors 79

63D Confidentiality requirements 80

Division 9—Amalgamation of registered funded agencies 81

64 Proposal for amalgamation 81

64A Voluntary amalgamations 83

65 Governor in Council may order amalgamation 85

Division 9A—Aggregation of metropolitan hospitals 88

65A Definitions 88

65B Extra-territorial operation 89

65C Aggregation 90

65D New metropolitan hospital to be successor in law 92

65E Substitution of party to agreement 92

65F Old instruments 93

65FA Trusts in relation to aggregated hospitals 93

65G Proceedings 93

65H Interests in land 94

65I Amendment of Register 94

65J Taxes 94

65K Evidence 95

65L Transfer of aggregated hospital staff to new hospital 95

65M Future terms and conditions of transferred employees 96

65N Validity of things done under this Division 97

65O Operation of Division not subject to review 98

Division 9B—Public health services 98

65P Incorporation 98

65Q Public health services do not represent the Crown 99

65R Objects of public health services 99

65S Board of directors 99

65T Directors 102

65U Terms and conditions 103

65V Removal and resignation 104

65W Disclosure of interest 104

65X Procedure of board 105

65XA Chief executive officer 105

65XB Functions of the chief executive officer 106

65Y Immunity 107

65Z Validity of acts or decisions 108

65ZAA Appointment of delegate to board 108

65ZAB Functions of delegate 109

65ZAC Obligations of board to delegate 110

65ZA Advisory committees 110

65ZB Community advisory committee 111

65ZC Primary care and population health advisory committee 111

65ZD Guidelines of Secretary 112

65ZE Procedure of advisory committees 112

65ZF Strategic plans 113

65ZFA When statement of priorities to be prepared 113

65ZFB Content of statement of priorities 114

65ZG Annual meetings 115

66 Notice of proposed direction 116

66A Minister may issue directions 116

Division 10—Compulsory acquisition of land 117

67 Acquisition 118

68 Acquired land to vest in the Crown 119

69 Power to reserve and grant land to agency 119

Part 3A—Public Hospital Patient Services Agreements 120

Division 1—Definitions 120

69A Definitions 120

Division 2—Agreements 120

69B Minister may enter into public hospital patient services agreements 120

69C Matters that may be included in agreement 121

69D Agreement to run with land 124

69E Rights of access 124

69F Right of intervention in management 126

69G Application of FOI Act 127

69H Investigation of administrative actions 128

69I Application of Land Act 129

Part 4—Health Service Establishments 130

Division 1—Approval in principle 130

70 Application 130

71 Criteria for grant of approval in principle 131

72 Decision on application 135

73 Certificate of approval in principle 135

74 Transfer or variation of certificate 136

75 Revocation of certificate 137

76 Voluntary revocation of certificate 138

Division 2—Repealed 138

77–81 Repealed 138

Division 3—Registration 138

82 Application 138

83 Criteria for registration 138

84 Decision on application 141

85 Certificate of registration 142

86 Change of directors etc. 143

87 Annual fees 143

88 Renewal of registration 144

89 Criteria for renewal of registration 145

90 Decision on application 147

91 Certificate of renewal 147

92 Variation of registration 148

93 Criteria for variation of registration 149

94 Decision on application 149

95 Variation of registration without application 150

95A Cancellation of registration 150

96 Endorsement of certificate of registration 151

97 Legal personal representatives 151

Division 4—Censure etc. 152

98 Repealed 152

99 Powers of Minister—supported residential services 152

100 Censure 153

101 Suspension of admissions 154

102 Revocation of registration of health service establishment 155

103 Appointment of administrator of supported residential service 156

Division 5—General 161

104 Notification of decisions by Chief General Manager 161

104A Application deemed withdrawn 162

105 Directions of Secretary 162

106 Residential statements 162

106A Resident's interim and on-going care plans 164

106B Information for prospective residents 166

106C Notice to vacate 167

107 Sick residents of supported residential services 167

108 Medical examination or further care 168

108A Privacy, dignity and security of residents 168

108B Personal hygiene of residents 169

108C Medication for residents 169

108D Suitable nutrition for residents 170

108E Mobility and sensory function of residents 170

108F Notification of certain matters to next of kin etc. 170

108G Procedures for resident complaints 172

108H Money of a resident 173

108HA Management or control of resident's money by proprietor 173

108HB Proprietor may give directions relating to resident's money 174

108HC Proprietor to give notice of sections 108HA and108HB 175

108HD Proprietor or close associate not to be resident's
administrator or resident's guardian 176

108I Maintenance and cleanliness of supported residential service 176

108J Communications systems in supported residential service 177

108K Supply of water must be safe 177

108L Minimum staff requirements 177

108M Prohibited and reportable transactions 178

108N Proprietor or close associate not to enter into prohibited transactions 180

108O Proprietor to give notice of sections 108M, 108P, 108Q and108R 180

108P Reportable transactions 181

108Q Cooling off period 181

108R Remedies 182

108S Proprietor to notify Secretary of offences 183

109 Records 183

110 Reviews 184

111 Offence to carry on business if establishment or proprietor notregistered 186

112 Offence to provide excess beds or accommodation 186

113 Offences relating to day procedure centres and private hospitals 186

114 Offence to contravene condition of registration 187

115 Offence to build etc. without approval in principle 187

Part 4A—Multi Purpose Services 189

115A Declaration and incorporation 189

115B Multi purpose services do not represent Crown 192

115C Objects and functions of multi purpose services 192

115D Powers 192

115E Board of management 193

115F Terms and conditions of appointment 194

115G Removal and resignation 195

115H Annual meetings 195

115I Procedure of board 196

115J Membership of board not office of profit 196

115JA Immunity 196

115K Repealed 197

115L Validity of acts or decisions 197

115M Secretary may give directions 197

115N Rules of multi purpose service 197

115O Service agreements 198

115P Health service agreements 198

115Q Powers of Minister 199

115R Appointment of administrator 199

115S Closure 201

115T Amalgamations 202

115U Governor in Council may order amalgamation 203

115V Transitional 206

Part 5—Community (Residential Services)
Visitors 209

116 Appointment 209

116A Definition 209

117 Functions of a visitor 209

118 Panels 210

119 Visiting designated public hospitals and supported residential services 210

120 Powers of inspection 210

121 Request to see a visitor 211

122 Record of visits 212

123 Reports by visitors 212

124 Terms and conditions of appointment 213

125 Resignation and removal from office 214

126 Secrecy provision 214

126A Immunity of visitors 215

127 Community (Residential Services) Visitors Board 215

128 Annual report of visitors 216

Part 6—Health Purchasing Victoria 217

Division 1—Establishment 217

129 Establishment of Health Purchasing Victoria 217

130 HPV represents the Crown 218

Division 2—General functions and powers 218

131 Functions of HPV 218

132 Powers of HPV 219

133 Factors to which HPV must have regard in performing functionsand exercising powers 220

Division 3—Purchasing policies 221

134 Purchasing policies 221

134A HPV may exempt public hospitals from policies 222

134B Procedure for making and notification of purchasing
policies 222

134C Disallowance of purchasing policies 224

Division 4—Membership and procedure 224

134D Members of HPV 224

134E Terms and conditions 226

134F Removal and resignation 227

134G Procedure of HPV 228

134H Validity of HPV decisions 228

134I Members' pecuniary interests 228

134J Improper use of information 229

134K Delegation 230

Division 5—General 230

134L Directions of the Minister or Secretary 230

134M Strategic plans 230

134N Existing supply contracts 231

134O HPV—trade practices 231

Part 7—Miscellaneous Provisions 233

Division 1—Hospitals and charities fund 233

135 Definition 233

136 Hospitals and Charities Fund 233

137 Payments out of Fund to agencies 234

Division 2—Payment of fees to certain agencies 235

138 Payment of fees 235

Division 2A—Conditions of certain public service staff 235

138A Definition 235

138B Remuneration and allowances 236

138C No compensation payable 236

Division 3—General 237

139 Quality assurance 237

140 Proclaimed services 240

141 Confidentiality 241

142 Agencies etc. incorporated under other Acts 247

143 Delegation by Minister 247

144 Inquiry by Secretary 247

145 Authorised officers 248

146 Identity cards 248

147 Powers of authorised officers 249

147A Entry to unregistered premises—search warrant 250

148 Immunity 251

149 Offence to obstruct or hinder 252

150 Impersonating etc. an authorised officer 252

151 False and misleading statements 252

152 Defacing documents etc. 253

152A Offences by bodies corporate etc. 253

153 Police assistance 253

154 Service of documents 253

155 Infringement notice 254

156 Power to bring proceedings 255

156A Extension of time limit for proceedings for certain offences 255

157 Evidentiary 255

157AA Supreme Court—limitation of jurisdiction—section138C 256

157A Supreme Court—limitation of jurisdiction—section126A 256

157B Supreme Court—limitation of jurisdiction—section18F 256

157C Supreme Court—limitation of jurisdiction—sections17AA, 40J or65O 257

157D Supreme Court—limitation of jurisdiction—section115K 257

157E Supreme Court—limitation of jurisdiction 257

157F Supreme Court—limitation of jurisdiction 257

157G Supreme Court—limitation of jurisdiction 257

157H Supreme Court—limitation of jurisdiction 257

158 Regulations 258

Part 8—Transitional Provisions 262

159 Saving of Hospitals and Charities (Fees) Regulations1986 262

159A Saving of hospital by-laws 262

160 Private hospitals etc. registered under Health Act1958 262

161 Existing nursing homes and hostels not registered under the Health Act 1958 264

162 Applications under Health Act 1958 265

163 Building approval in force under Health Act 1958 265

164 Transitional provision for Commonwealth building approval 266

165 Residential statements 266

166 Transitional provision for public hospitals 266

166A Peter MacCallum Cancer Institute 266

166B Fairfield Hospital 267

167 Tweddle Baby Hospital 267

168 Transitional provision for community health centres 268

169 Transitional provision for boards of public hospitals 269