Investor Presentaiton
Department of Health
Notes to the financial statements
For the year ended on 30 June 2023
3.2
Grants and subsidies (continued)
a) Includes the non-cash component of service appropriation.
b)
The Health Services Act 2016 came into effect from 1 July 2016. Under this Act, several statutory authorities are established, they are the Child and Adolescent Health
Service, East Metropolitan Health Service, North Metropolitan Health Service, South Metropolitan Health Service, WA Country Health Service, Health Support Services,
PathWest Laboratory Medicine WA, Queen Elizabeth II Medical Centre Trust and Quadriplegic Centre. These transactions are considered to be significant related party
transactions.
c) Under the National Partnership on COVID-19 Response Agreement, there is a provision for funds to be transferred from the department to other State Government
agencies that have been requested to assist in the control of, and to help with, the COVID-19 Response. In 2022-23, the department has incurred $11.5 million to other
State Government agencies via Department of Treasury ($118.9 million in 2021-22).
Transactions in which the department provides goods, services, assets (or extinguishes a liability) or labour to another party without receiving approximately equal value in
return are categorised as 'Grant or Subsidy expenses'. These payments or transfers are recognised at fair value at the time of the transaction and are recognised as an
expense in the reporting period in which they are incurred. They include transactions such as: grants, subsidies, personal benefit payments made in cash to individuals, other
transfer payments made to public sector agencies, local government, non-government organisations, and community groups.
3.3
Contracts for services
Health care services provided by external organisations (a) (b)
Shared services provided by Health Support Services
Other contracts for services
Total contracts for services
2023
2022
$'000
$'000
569,559
511,161
28,623
32,324
49,388
56,152
647,570
599,637
a) There is no private hospital viability payment for COVID-19 Response in 2022-23 ($11.1 million in 2021-22) under the National Partnership Agreement on the COVID-19
Response with the Commonwealth.
b) A new 5-year contract, contemporised with other public private partnerships, was entered into with St John WA. The contract will improve response capabilities and
performance through investment in paramedics, crews and infrastructure, the implementation of performance measures and the provision of additional funding for extra
paramedics in the metropolitan and regional areas. The department has incurred $240.1 million service expense ($190.6 million in 2021-22).
Contracts for services mainly consist of payments to external organisations for the purchase of health care services, including aboriginal health, blood and organs, chronic
diseases, communicable diseases, environmental health, health promotion, home and community care, mental health, oral health, palliative care, patient transport, aged
care, and pathology services.
<
150
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