New South Wales Bills Explanatory Notes

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PRIVATE HEALTH FACILITIES BILL 2007

Explanatory Notes

Overview of Bill


The objects of this Bill are to repeal the Private Hospitals and Day Procedure
Centres Act 1988 and to provide for the licensing of private health facilities and the
conduct of those facilities.

Outline of provisions


Part 1 Preliminary
Clause 1 sets out the name (also called the short title) of the proposed Act.

Clause 2 provides for the commencement of the proposed Act on a day or days to be
appointed by proclamation.

Clause 3 sets out the objects of the proposed Act.

Clause 4 defines certain words and expressions used in the proposed Act.

Part 2 Licensing of private health facilities
Division 1 Licensing standards
Clause 5 permits the regulations to prescribe standards in relation to the safety, care
or quality of life of patients at private health facilities.

Division 2 Applications for and issue of licences
Clause 6 provides that a person who intends to conduct a private health facility may
apply to the Director-General of the Department of Health (the Director-General)
for a licence in respect of the facility.

Clause 7 provides that the Director-General must, after considering an application
for a licence under the proposed Division, approve the application in principle or
refuse the application. The Director-General may only refuse the application in
certain circumstances.

Clause 8 provides that an approval in principle is effective for one year but that
period may be extended.

Clause 9 provides that the Director-General must grant an application and issue a
licence to an applicant if the Director-General has approved the application in
principle and all conditions to which the approval in principle was subject have been
complied with unless the approval in principle has expired or the applicant is not a
fit and proper person to be a licensee.

Division 3 Provisions relating to licences
Clause 10 permits the regulations to prescribe different classes of private health
facilities for the purposes of the proposed Act and sets out how fees under the
proposed Act are to be determined if a facility falls into more than one class.

Clause 11 sets out certain particulars that are to be specified in a licence.

Clause 12 permits the Director-General to issue a licence subject to any conditions
that are specified in the licence.

Clause 13 provides that a licence remains in force until cancelled under the proposed
Act.

Clause 14 provides for the payment of an annual licence fee.

Clause 15 enables the Director-General to transfer the licence for a private health
facility to a person who intends to take over conduct of the facility.

Clause 16 provides that a licensee of a private health facility must not cause or
permit the facility to be altered or extended unless the Director-General has approved
the alteration or extension.

Clause 17 provides for the Director-General to amend a licence for a private health
facility.

Division 4 General provisions relating to applications
Clause 18 enables the Director-General to direct an applicant for a licence to provide
any information that the Director-General requires to determine the application.

Clause 19 requires the Director-General to notify an applicant for a licence of certain
matters if the Director-General refuses an application for a licence.

Clause 20 provides for the advertising of applications.

Clause 21 permits an applicant for a licence to amend an application.

Division 5 Review of decisions of Director-General
Clause 22 defines decision of the Director-General for the purposes of the proposed
Division.

Clause 23 provides for the appointment of a Chairperson of Committees of Review.

Clause 24 provides for the review of decisions of the Director-General by the
Minister. On receipt of an application for review, the Minister is to forward the
application to the Chairperson of Committees of Review, who is to establish a
Committee of Review to advise the Minister on the application.

Clause 25 provides for the composition of a Committee of Review.

Clause 26 provides for a Committee of Review to investigate a matter and make a
recommendation to the Minister.

Clause 27 provides for the determination of an application for review by the
Minister.

Clause 28 permits the Minister or a Committee of Review to which an application
for review is referred to require the applicant to provide additional information or
allow the Minister or members of the Committee to enter and inspect any premises
to which the application for review relates.

Division 6 Suspension and cancellation of licences
Clause 29 permits the Director-General to suspend a licence for a private health
facility if the licensee is in breach of a licensing standard and that breach is likely to
cause a serious and substantial risk to the health or safety of patients at the facility or
if the licensee does not have a medical advisory committee appointed in accordance
with the proposed Act in respect of the facility.

Clause 30 sets out the circumstances in which the Director-General may cancel the
licence for a private health facility without notice.

Clause 31 sets out the circumstances in which the Director-General may cancel the
licence for a private health facility with notice.

Clause 32 provides that a licensee of a private health facility may apply to the
Administrative Decisions Tribunal for a review of a decision of the Director-General
to suspend or cancel the licence for the facility (except cancellation under proposed
section 30).

Part 3 Conduct of private health facilities
Clause 33 creates an offence (maximum penalty $550,000) if a person conducts a
private health facility unless the private health facility is licensed and the person is
the licensee.

Clause 34 provides for an executor or administrator to be taken to be the licensee of
a private health facility if the licensee of the facility dies and he or she was the only
licensee of the facility.

Clause 35 sets out the purposes for which licensed premises may be used and creates
an offence (maximum penalty $110,000) if the premises are used for other purposes.

Clause 36 provides that the licensee of a private health facility must not cause or
permit the number of patients accommodated at any one time in a ward of the facility
to exceed the number of patients specified in the licence in relation to that ward
(maximum penalty $110,000).

Clause 37 provides that the licensee of a private health facility must not conduct the
facility unless a registered nurse is on duty at the facility at all times during which
there is a patient at the facility and there is a registered nurse appointed as director of
nursing of the facility who is responsible for the care of the patients at the facility
(maximum penalty $110,000).

Clause 38 requires the licensee of a private health facility to cause a register of
patients to be kept at the facility (maximum penalty $110,000).

Clause 39 requires a licensee of a private health facility to appoint a medical
advisory committee for the facility to advise the licensee on the accreditation of
medical practitioners and dentists to provide services at the facility, clinical practice
at the facility and patient care and safety (maximum penalty $110,000). Any such
committee is to report to the Director-General on any repeated failure by the licensee
of the facility to act on the committee’s advice where that failure is likely to adversely
impact on the health or safety of patients.

Clause 40 provides that the licensee of a private health facility must ensure that the
director of nursing of the facility has ready access to a copy of the proposed Act and
the regulations under the proposed Act (maximum penalty $5,500).

Part 4 Root cause analysis teams
Clause 41 defines certain words and expressions used in the proposed Part.

Clause 42 provides that the licensee of a private health facility must appoint a root
cause analysis team (a team) when a reportable incident involving the facility is
reported to the licensee (maximum penalty $11,000).

Clause 43 imposes certain restrictions on root cause analysis teams including a
restriction on a team from conducting an investigation relating to the competence of
an individual in providing services and a restriction on publication of identifying
information about any provider or recipient of services in any report or other
information made available by a team.

Clause 44 sets out the responsibilities of a root cause analysis team in relation to a
reportable incident, including notification of the licensee and the chair of the medical
advisory committee for the relevant facility if the reportable incident may relate to
professional misconduct, unsatisfactory professional conduct or unsatisfactory
professional performance. The team is also required to prepare a written report in
relation to the reportable incident. The licensee commits an offence (maximum
penalty $5,500) if the licensee fails to provide the report of the team to the
Director-General.

Clause 45 prevents a person who is or was a member of a root cause analysis team
disclosing certain information (maximum penalty $5,500).

Clause 46 provides that a person who is or was a member of a root cause analysis
team and the licensee and chair of the medical advisory committee of the facility for
which the team was appointed are neither competent nor compellable to give
evidence.

Clause 47 provides that a notification or report of a root cause analysis team is not
admissible as evidence in any proceedings that a procedure or practice is or was
careless or inadequate.

Clause 48 protects a root cause analysis team, a member of a team or any person
acting under the direction of a team from personal liability for anything done in good
faith for the purposes of the exercise of the team’s functions.

Clause 49 permits regulations to be made in relation to root cause analysis teams.

Part 5 Enforcement
Clause 50 enables the Director-General to appoint a member of staff of the
Department, or a person of a class prescribed by the regulations, to be an authorised
officer for the purposes of the proposed Act.

Clause 51 permits an authorised officer to enter and inspect premises for the purpose
of determining whether there has been a contravention of the proposed Act, the
regulations or a licence condition.

Clause 52 enables an authorised officer to give an improvement notice to a licensee
of a private health facility requiring the licensee to take the action specified in the
notice within the period (if any) specified in the notice for the purpose of ensuring
that the licensee complies with the proposed Act or the regulations. An offence is
created (maximum penalty $22,000) for failing to comply with an improvement
notice.

Clause 53 creates offences (maximum penalty $22,000) of obstructing or delaying
an authorised officer in the exercise of the officer’s functions under the proposed Act
and of failing to comply with requirement to produce a document, record or other
thing.

Part 6 Private Health Facilities Advisory Committee
Clause 54 establishes the Private Health Facilities Advisory Committee (the
Advisory Committee).

Clause 55 provides that the principal function of the Advisory Committee is to
provide advice to the Minister and the Director-General on certain matters.

Clause 56 enables the Advisory Committee to establish sub-committees.

Part 7 Miscellaneous
Clause 57 permits the Director-General to direct the licensee of a private health
facility to engage an expert to provide advice on the conduct of the facility if the
Director-General has reason to believe that the licensee is not conducting the facility
in accordance with the proposed Act, the regulations or a licence condition.

Clause 58 provides for the circumstances under which a practitioner, who has a
pecuniary interest in a private health facility, must notify a patient of that interest.

Clause 59 provides that in any proceedings for an offence against a provision of the
proposed Act or the regulations, the onus of proving that a person had a reasonable
excuse (as referred to in the provision) lies with the defendant.

Clause 60 enables the Director-General to issue certificates in relation to licensed
private health facilities and gives evidentiary status to such a certificate.

Clause 61 provides for the service of documents under the proposed Act.

Clause 62 provides for proceedings for offences in relation to officers of
corporations.

Clause 63 makes provision for proceedings for an offence under the proposed Act or
regulations to be dealt with summarily before a Local Court.

Clause 64 enables the Director-General to delegate his or her functions under the
proposed Act.

Clause 65 enables the Governor to make regulations for the purposes of the
proposed Act.

Clause 66 is a formal provision that gives effect to the savings, transitional and other
provisions set out in Schedule 4.

Clause 67 is a formal provision that gives effect to the amendments to the Acts and
instruments set out in Schedule 5.

Clause 68 provides for the review of proposed section 7 (4) (c) (i) in 5 years.

Clause 69 repeals the Private Hospitals and Day Procedure Centres Act 1988.

Schedule 1 Provisions relating to Chairperson of
Committees of Review
Schedule 1 sets out provisions relating to the Chairperson of Committees of Review.

Schedule 2 Provisions relating to Committees of
Review
Schedule 2 sets out provisions relating to Committees of Review.

Schedule 3 Constitution and procedure of Private
Health Facilities Advisory Committee
Schedule 3 sets out provisions relating to the constitution and procedure of the
Private Health Facilities Advisory Committee.

Schedule 4 Savings, transitional and other
provisions
Schedule 4 contains savings, transitional and other provisions consequent on the
proposed Act and the repeal of the Private Hospitals and Day Procedure Centres Act
1988.

Schedule 5 Amendment of other Acts and
instruments
Schedule 5 amends a number of other Acts and instruments as a consequence of the
proposed Act.

Note: If this Bill is not modified, these Explanatory Notes would reflect the Bill as passed in the House. If the Bill has been amended by Committee, these Explanatory Notes may not necessarily reflect the Bill as passed.

 


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