Service Agreements


Key Documents

Purchasing and Resource Allocation Policy Framework

In accordance with the Health Services Act 2016  (the Act) this Policy Framework, issued by the Department CEO as System Manager, specifies the mandatory legislative and financial framework that all Health Service Providers must comply with in order to ensure effective and consistent approaches to meet State Government budgeting and funding procedures and requirements, and purchasing and resource allocation processes, across the WA health system.

Purchasing and resource allocation policy framework

System-wide Budget Setting

This document will focus on the mandatory financial and legislative framework that underpins the State Government’s budgeting and funding procedures.

Systemwide Budget Setting Policy Placeholder (PDF 89.1KB)

Outcome Based Management

The WA health system operates under an Outcome Based Management (OBM) Framework, in accordance with its legislative obligation as a WA Government Agency under section 61 of the Financial Management Act 2006 and Treasurer’s Instruction 904. The OBM Framework translates how the government resources the WA health system.

The OBM Framework describes how outcomes, services and Key Performance Indicators (KPIs) are used to measure the WA health system’s performance towards achieving the relevant overarching whole-of-government goals. KPIs measure the effectiveness and efficiency of the services provided by the WA health system in achieving the required outcomes.

Outcome Based Management Policy (External site)

Service Agreement Management Policy

The Service Agreement Management Policy (SAMP) will mandate the mechanisms and formal processes by which Health Service Provider Service Agreements between the System Manager and Health Service Providers are developed, amended and managed, consistent with the requirements of the Act.

The relationship between the System Manager, supported by the Department of Health (the Department), and Health Service Providers is set through the Act, which provides clarity on governance, roles and responsibilities. The Service Agreements are specifically referenced within the Act (Part 5).

The Service Agreements establish the scope of services and targeted levels of activity for Health Service Providers, in accordance with the State Government’s policy objectives on service delivery. The Service Agreements are the key tool used to articulate resource allocation decisions and provide the framework for the evaluation of services. They are the principal budget accountability tool that defines the roles and responsibilities of the System Manager, supported by the Department, and the Health Service Providers to achieve service and budget parameters.

Service Agreement Management Policy Placeholder (PDF 38KB)

To support the SAMP, there will be three “Principles” documents that aim to provide more detailed information that will underpin the implementation and operation of the Policy to achieve its outcomes:
  • Principles relating to timetable adherence for the Service Agreement Management Process
  • Principles for identification and resolution of allocation issues 
  • Principles for funding of State-wide Health Services

Service Agreement Management Process Guidelines

This will provide information to operationalise the Service Agreement Management Policy and includes scenarios with step-by-step instructions

Service Agreement Management Process Guidelines Placeholder

Funding and Purchasing Guidelines

The Guidelines provide information to stakeholders including Health Service Providers, the Mental Health Commission (MHC) and the wider WA community about the funding acquisition, purchasing policies and mechanisms and the resource allocation process for health services in WA.

The Guidelines are a reference guide, underpinning the Service Agreements between the Department of Health (the Department) and each Health Service Provider

WA Health Purchasing and Funding Policy Guidelines (PDF 2MB)

Service Agreements

Service Agreements detail the health services that the Department CEO will purchase from each Health Service Provider and the services they will deliver during the financial year. Through execution of the Service Agreement the Health Service Provider agrees to meet the service obligations and performance requirements as detailed in the Service Agreement. The Department CEO agrees to provide the funding and other support services as outlined in the Service Agreement.

The Service Agreement is representative of the partnership between the Department CEO and the Health Service Provider and shared commitment to deliver on WA Government’s goal of greater focus on achieving results in key service delivery areas for the benefit of all Western Australians. The Service Agreement is executed in accordance with Part 5 of the Act.

The Department publishes abridged versions of all Service Agreements and Service Agreement Deeds of Amendment after all parties have executed the Agreement (see below).

Service Agreement Mid-year Review Deed of Amendment 2017-18

The Mid-year Review Deed of Amendment to the 2017-18 Service Agreement for each Health Service Provider was issued in February 2018 to reflect the decisions endorsed by Government through the 2017-18 Mid-year Review process.

Service Agreement Deed of Amendment 2017-18

As a consequence of the WA State Election for 2017, the WA State Budget was not delivered until September 2017.  The Service Agreement Deed of Amendment 2017-18 for each Health Service Provider represents the changes to the previously executed Service Agreement 2017-18 as a consequence of changes in the WA State Budget.

Service Agreement 2017-18

In accordance with section 49 of the Act, the term of the Service Agreement is for the period of 1 July 2017 to 30 June 2018.

The Service Agreement, pursuant to Section 46(3) of the Act, includes the health services to be provided by the Health Service Provider during the term of the Service Agreement that are within the overall expense limit set by the Department CEO in accordance with the State Government’s purchasing intentions.  The Service Agreements were executed on 1 July 2017.

Service Agreements 2016 – 2017

In accordance with section 49 of the Act, the term of the Service Agreement is for the period of 1 July 2016 to 30 June 2017.

Produced by

Purchasing and System Performance Division