Service Agreements

Service Agreements define and detail the scope of services and targeted levels of activity which the System Manager will purchase from Health Service Providers in a financial year, consistent with the State Government’s policy objectives and funding allocations. Service Agreements are executed in accordance with Part 5 of the Health Services Act 2016 (the Act).

Service Agreements 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, and the Health Service Providers.

Through execution of the Service Agreements, the Health Service Providers agree to meet the service obligations and performance requirements as detailed in the Service Agreement. The Department CEO, as System Manager, agrees to provide the funding and other support services as outlined in the Service Agreements.

The System Manager and Health Service Providers may amend the Service Agreement in accordance with the Act through a Deed of Amendment. The Deed of Amendment becomes an addendum to the original Service Agreement and forms the revised basis on which the Service Agreement will be conducted.

Supporting documents

Purchasing and Resource Allocation Policy Framework

The 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

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 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

WA Health Funding and Purchasing Guidelines

The WA Health Funding and Purchasing Guidelines provide information 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 and each Health Service Provider.

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.

Service Agreement Management Policy Placeholder

Service Agreement Management Guidelines

The Service Agreement Management Guidelines (SAMG) will provide information to operationalise the Service Agreement Management Policy by detailing the Service Agreement development and amendment processes

Service Agreement Management Guidelines Placeholder

Service agreements and deeds of amendment

The Department publishes abridged versions of all Service Agreements and Deeds of Amendment after all parties have executed them, in accordance with Schedule D9 of the National Health Reform Agreement (NHRA).

The abridged versions of the Service Agreements and Deeds of Amendment include:

All textual information
Summary of activity and funding schedule (all other schedules are excluded)
Commonwealth specific purpose funding for in-scope activity— required by the NHRA and is not included in original Service Agreements or Deeds of Amendment.

An additional Service Agreement, referred to as the Notional Local Health Network Service Agreement, includes Commonwealth specific purpose activity and funding for the contracts with third parties managed (e.g. non-government organisations) that provide health related activity on behalf of the System Manager.

Produced by

Purchasing and System Performance Division