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Serial NO 57
LEGISLATIVE ASSEMBLY OF THE
NORTHERN TERRITORY
This Bill replaces the Hospital Management Boards Act (1980).
The purpose of this Bill is: to establish a hospital board for each public hospital in the Northern Territory; to assist local communities engaging with hospitals; to facilitate communication and support between hospitals and the communities they serve; to encourage community involvement in the strategic planning of hospitals; to promote improvement of service quality and appropriateness; and to clarify that the primary focus of hospital boards is advisory and not management, as was the case with the previous Hospital Management Boards Act.
NOTES ON CLAUSES
Clause 1. Short title
Section 1 is the formal clause which provides the citation of the Bill. The Bill, when passed will be cited as the Hospital Boards Act.
Clause 2. Commencement
Section 2 clarifies the process for determining when the Act comes into force, that is it commences on a the date to be fixed by the Administrator and declared by notice in the Gazette.
Clause 3 Definitions
Section 3 clarifies the special meaning and usage applied to selected words throughout the Act, (ex. hospital being a premises established under Section 6(2) of the Medical Services Act thus restricting the application of this Act to Public Hospitals).
Clause 4 Establishment of board for each hospital
Section 4 creates a hospital board for each public hospital in the Northern Territory; determines the name for each board and indicates that the Health Minister is able to exercise powers in relation to the boards.
Clause 5 Composition of board
Section 5 determines that a board is restricted to a minimum of three and a maximum of six members.
Clause 6 Functions and powers of board
Section 6 defines the range of functions and powers which are created for a board: monitoring implementation of standards from the perspective of a lay person or sophisticated consumer (it is not the intent of this provision that a board would engage experts in performing this function); giving directions and advice about the implementation of standards; providing a mechanism for hospital staff to consult with ethics experts appointed by the board; liaising and consulting with the community and where appropriate engaging with the broader region; receiving donations, the raising and spending of funds for benefit of hospital patients or staff; and making members available to serve on relevant hospital committees including the selection of candidates for the hospital management group.
Clause 7 Board may establish committees
Section 7 provides the capacity for a board to establish committees for purposes relating to its functions; clarifies that committee members may be selected from persons other than members of the board; enables the board’s powers regarding committees to be governed by regulation; requires the board, prior to the establishment of a committee, to determine: the committee’s terms of reference, procedures, membership, the date upon which the committee must complete its business and report to the board, or the date upon which it ceases to exist.
Clause 8 Board’s involvement with other entities
Section 8 determines the board’s involvement in responding to requests for it to nominate a member for hospital committees not established by the board; clarifies that the board can not agree to nominate one of its members if, in its judgment, the committee is not relevant to the board’s functions; establishes the expectation that the board will provide a member to participate on the committee or panel established to select candidates for vacancies in the hospital’s management group.
Clause 9 Limitation on functions and powers
Section 9 clarifies that the functions and powers created for a board have specific limitations which restrict it from giving directions that: are inconsistent with government policy, strategies, and legislation in force in the Territory; relate to human resource or financial management of the hospital; concern the medical treatment of particular patients.
Clause 10 What board may do if written complaint made to it
Section 10 describes the conditions under which a board can accept complaints and it clarifies that in response to a complaint a board may make recommendations to the hospital’s manager or the Minister.
Clause 11 Regular inspections
Section 11 provides capacity for a board to undertake regular inspections of the hospital and clarifies that the board is to be given any reasonable assistance required to do these inspections.
Clause 12 Annual report
Section 12 establishes the requirement for a board to: report, by 30th September, to the Minister in regard to its operations and finances; obligates the Minister to table the board’s report within 10 sitting of the Legislative Assembly.
Clause 13 Minister must declare membership of board suspended
Section 13 requires the Minister to suspend the remaining members of a board when the total number of members falls to less than three, and, it enables the Minister to undertake the board’s functions and powers as considered necessary during the time membership has been suspended.
Clause 14 Minister may amalgamate or re-establish boards
Section 14 establishes powers for the Minister to amalgamate or re-establish boards as the community’s interest and capacity to provide members changes over time; it also facilitates the transition of existing members to newly amalgamated boards; stipulates that these powers are implemented by the placement of a Gazette notice.
Clause 15 Funds held by board before action under section 14
Section 15 enables the Minister to determine how funds held by an abolished or amalgamated board are to be dealt with and creates the capacity for regulations to be established for determining the actions that may be taken and any special considerations as may be appropriate for these funds (such as relatively small amounts being held in trust).
Clause 16 Notice about intention to appoint a person as member of board
Section 16 establishes the requirement for vacancies to be advertised within the local community served by the hospital; it also prohibits vacancies continuing for more than a year without being advertised.
Clause 17 Appointment of members of a board
Section 17 provides for the appointment of board members by the Minister; determines that members can not be employees, a consultant or contractors engaged by the Hospital (this should not be interpreted to automatically exclude health or community service professionals from eligibility for membership, for example General Practitioners, employees of Aboriginal Health Services); excludes persons who have been appointed more than three times; and, requires the Minister to advertise in the local community information relevant to appointments.
Clause 18 Date of appointment
Section 18 clarifies that appointments take effect on the later of: the date of appointment, or another date stated in the letter of appointment.
Clause 19 Duration of appointment
Section 19 clarifies that periods of appointment are for three years or less.
Clause 20 Appointment of chairperson
Section 20 requires the appointment of the chairperson to be made by the Minister and determines that this person continues as both a member and chairperson until another person is appointed as chairperson even though their term as member may have ended.
Clause 21 Appointment of deputy chairperson
Section 21 documents the requirement for a board to appoint a deputy chairperson and confirms that the deputy chairperson must act as chairperson in the absence or inability of the chairperson, or during a vacancy of the in the office of the chairperson.
Clause 22 Board to determine procedure
Section 22 establishes the requirement for a board to determine procedures for the conduct of its meetings.
Clause 23 Meetings
Section 23 mandates the minimum number of regular meetings per year as six; stipulates that in addition to these meeting, at least one special meeting must be conducted each year to consider the strategic direction of the hospital; clarifies the obligation of the chairperson to call special meetings at the request of at least two members or the Minister; establishes need for the views of individual board members are to be kept confidential; and, obligates the Minister to meet with the board at least once a year if the board requests a meeting.
Clause 24 Quorum and voting
Section 24 determines that two members are required to constitute a quorum for a board with a total membership of three, and for a board with a membership greater than three members, a quorum is three members; also clarified is the use of majority votes for deciding questions before a board.
Clause 25 Person presiding at meeting
Section 25 clarifies that only the chairperson or deputy chairperson are able to preside at meeting; establishes, in the event of a equality of votes on a decision, that the chairperson or deputy chairperson presiding at a meeting is able to determine the board’s decision with a casting vote.
Clause 26 Decisions outside meetings
Section 26 establishes the validity of decisions taken by a board outside formal meetings when these decisions are made with the written agreement of at least three members and when the process is consistent with established board procedures.
Clause 27 Attendance at meeting other than by members
Section 27 clarifies that the Minister may attend any meeting of a board; mandates the attendance of the hospital management group for each meeting; clarifies that a board may also invite other hospital staff to attend its meetings; and, enables the person presiding at a meeting (chairperson or deputy chairperson) to remove any person, other than the Minister, from a meeting while discussion of a particular matter takes place.
Clause 28 Minutes
Section 28 creates the requirement for a board to keep minutes and provide copies of their minutes to the Minister within 28 days; determines that the minutes must include the details of any directions or advice given by the board to the manager of the hospital and that minutes must include a report about any directions or advice given to the manager that was not addressed or responded to within 30 days.
Clause 29 Leave of absence
Section 29 establishes a power for the Minister to grant leave of absence to a chairperson of a board and establishes a power for chairpersons to grant leave of absence, for a particular meeting, to a board member or a member of the hospital management group.
Clause 30 Disclosure of interest
Section 30 requires board members to disclose any direct or indirect interest they may have in a matter to come before a board; determines that these interests and the board’s handling of this are to be documented in minutes; prohibits the member disclosing an interest from taking part in deliberations on the matter; enables the board to determine that a particular interest is inconsequential and does not create a conflict thus allowing the member to take part in deliberations on the matter; provides clarification about what constitutes an interest by referencing Section 9 of the Corporation Act 2001.
Clause 31 Vacancies not to invalidate
Section 31 confirms that board actions do not become invalid solely by reason of there being a vacancy, as long as there are least three members of a board.
Clause 32 Termination of appointment
Section 32 requires the Minister to terminate the appointment of a board member when certain prescribed circumstances exist, for example the member misses three consecutive meetings, becomes bankrupt or of unsound mind, or the member has become an employee of the hospital or guilty of misbehaviour or incompetence.
Clause 33 Resignation from board
Section 33 establishes the mechanism by which members resign from a board, that is a written notice to the Minister; also clarifies that the resignation does not take effect until formally accepted by the Minister.
Clause 34 Expenditure only if Ministerial approval
Section 34 restricts expenditure by a board to only those things approved by the Minister, either through a Gazette notice identifying a general range of pre-approved expenditure or by a specific approval on application to the Minister; clarifies that the purpose of board expenditure is limited to those things which benefit patients and staff of the hospital.
Clause 35 Protection from liability
Section 35 establishes protection of board members and persons acting on behalf of the board (i.e. members of an ethics committee) from civil or criminal liability resulting from their actions or omissions under this Act; prohibits these members and persons from being required to provide evidence in civil, criminal, disciplinary or administrative proceeding; clarifies that this protection applies only when actions or omissions are done in good faith.
Clause 36 Functions of manager
Section 36 established the functions to be performed by the hospital manager in relation to the board, for example: arranging secretarial services for the board, attending all board meetings, providing overviews of the hospital’s operations (in a format prescribed by a schedule of the Act), and providing reports on the accounts held in the board’s name.
Clause 37 Regulation making power
Section 37 clarifies that regulations, as approved by the Administrator, may be made in relation to this Act.
Clause 38 Definitions
Section 38 explains the special meaning to be used in Part 7 (Transitional provisions, repeals and further amendment) the for following terms: commencement, existing board, and repealed Act.
Clause 39 Continuation of existing Boards
Section 39 provides for existing boards to continue as boards under the new Act; determines that these boards will have the same name but the word “management” will be omitted; clarifies that references in a document to an existing board under its prior name are not made invalid because of the change in the board’s name.
Clause 40 Continuation of appointment to existing Board
Section 40 provides for continuity of board membership between a board established under the previous Act and the new Act; clarifies that the term of appointment for these transitioning members is to continue as it would have under the previous Act, that is until the end of three years from date of appointment or a shorter period as specified in the original instrument of appointment.
Clause 41 Continuation of appointment as chairperson
Section 41 enables the person, who was the chairperson of a board prior to the commencement of the new Act, to continue as chairperson of the board as if they had been appointed chairperson under the new Act.
Clause 42 Funds and accounts held by existing Board
Section 42 enables the funds and accounts held in the name of a board existing under the previous Act to transition to effective control of the board established under the new Act.
Clause 43 Repeals
Section 43 clarifies that the previous legislation, the Hospital Management Boards Act and its amendment Acts are to be repealed.
Clause 44 Amendment of Mental Health and Related Services Act
Section 44 amends the Mental Health and Related Services Act so that it no longer refers to the previous Hospital Management Boards Act.