Infrastructure (Asset Management)

Generating PDFGenerating PDF

Policy framework statement

The Infrastructure (Asset Management) Policy Framework specifies the infrastructure asset planning, asset procurement, asset operation and maintenance, and asset disposal requirements that all Health Service Providers (HSPs) must comply with in order to ensure effective and consistent asset management functions across the WA health system.

Purpose

The Director General (DG) of the Department of Health is the System Manager responsible for the overall management, strategic direction and stewardship of the WA health system. The DG will use policy frameworks to ensure a consistent approach to a range of matters undertaken by HSPs. Policy frameworks must be complied with and implemented as a part of ongoing operations.

The purpose of this policy framework is to ensure:

  • good governance in asset management
  • accountability and transparency of the financial management of asset management
  • projects are delivered with scope, cost and time parameters and to the specified quality
  • effective and efficient service delivery solutions
  • consideration of lifecycle costings to ensure long term sustainability of each asset
  • effective project and service risk management strategies
  • accuracy, timeliness and completeness of information
  • compliance with the WA Government’s legislative and policy requirements

Applicability

This policy framework is binding on each HSP to which it applies or relates.

Principles

The key principles that underpin this policy framework are:

Accountability, Transparency and Performance Focussed

Responsible and accountable use of financial resources, with the ability to explain decisions and actions to external reviewers, as well as document and report on the management of resources, in a clear, consistent and accurate manner.

Asset Management is considered in the context of:

  • Asset lifecycle.
  • Asset prioritisation based on the operating imperatives across the WA health system. This by nature means that reprioritisation becomes a key consideration for future asset planning.
  • Future proofing of assets to ensure opportunities to extend the operating life of assets by anticipating changes in patterns of use or growth in demand, thereby creating flexibility and the potential to add capacity. This allows for continued technological evolution.
  • Strategic Asset Planning to provide a framework for future and current assets, with the involvement of all the key enablers of the WA health system. This includes ICT, procurement, finance, facilities management and governance with consideration of the long term lifecycle costs.
  • Sustainability to ensure - the performance of assets is optimised in terms of their capacity to support service delivery. Asset management decisions do not compromise the long-term financial sustainability across the WA health system.

Holistic and Strategic

Asset management decision-making will take a holistic and strategic approach in relation to asset development, procurement, maintenance and disposal. Patient care, service delivery and safety are always at the core of this decision-making process.

Stewardship

The use of funds and resources in the management of assets to support service delivery objectives is consistent with achieving value for money for whole-of-government service delivery.

Legislative context

The Health Services Act 2016 refers to policy frameworks in ss. 26-27 and s. 34(2)(c). Other relevant parts in the Act that relate specifically to this policy framework include ss. 34(2)(i), 36(3)(a) and 37-39.

The legislation below, may also apply:

  • Building Act 2011
  • Building Services (Registration) Act 2011
  • Building Services (Registration) Regulations 2011
  • Financial Management Act 2006
  • Public Works Act 1902
  • Planning and Development Act 2005
  • Occupational Health and Safety Act 1984
  • State Supply Commission Act 1991
  • Treasurer’s Instructions
  • Work Health and Safety Act 2011 (Cwlth)

Mandatory requirements

Under this policy framework HSPs must comply with all mandatory requirements* including:

*Any mandatory requirement document that references the Hospitals and Health Act 1927 must be interpreted as a requirement under the Health Services Act 2016.

^This internal document can be made available on request.

Policy framework custodian

Assistant Director General
Purchasing and System Performance Division

PolicyFrameworkSupport@health.wa.gov.au

Review

This policy framework will be reviewed as required to ensure relevance and recency. At a minimum this policy framework will be reviewed within two years after first issue and at least every three years thereafter.

Version Effective from Effective to Amendment(s)
1 1 July 2016 24 May 2017 Original version
2 24 May 2017 20 Sept 2018 New MP 0052/17
3 20 Sept 2018 Current New MP 0092/18
Rescind MP 0052/17

Approval

This policy framework has been approved and issued by the Director General of the Department of Health as the System Manager.

Approval byDr D.J. Russell-Weisz, Director General, Department of Health
Approval date01 July 2017
Date published20 September 2018
File numberF-AA-40151

Compliance

This policy framework is binding on those to whom it applies or relates. Implementation at a local level will be subject to audit.

Glossary of terms

Term Meaning
Applicability Under Section 26 of the Health Services Act 2016, policy frameworks may apply to:
  • All Health Service Providers
  • A type of public health service facility
  • A type of public health service
  • A type of staff member of a health service provider.
Health Service Provider Means a Health Service Provider established by an order made under section 32(1)(b) of the Health Services Act 2016.
WA Health system Pursuant to section 19(1) of the Health Services Act 2016, means the Department of Health, Health Service Providers and to the extent that Contracted Health Entities provide health services to the State, the Contracted Health Entities.