2.3 Service agreements with more than one organisation
Where a group of funded organisations form an alliance or consortium to deliver a service, the department can enter into different service agreement arrangements, depending on the circumstances.
The department encourages alliances and cooperation between organisations, particularly where these maximise service delivery effectiveness, quality and benefits to the community.
Primary Care Partnerships (PCPs) provide a good example of the successes achieved through organisations working together. PCPs are a core component of the primary health care and broader human services sector platform for integrated care and health promotion. PCPs have enabled coordination of planning and care pathways for many population groups at risk of poor health, including refugee and Indigenous groups, people facing difficulty due to severe drought, and people with chronic and complex conditions to prevent unnecessary use of hospital services.
Non-incorporated alliance/consortium
A non-incorporated alliance/consortium is made up of a group of separate legal entities, all working together to achieve common goals and deliver specific services. Each member organisation is separately established under an act of parliament or other legislative framework. The non-incorporated alliance/consortium, however, is not a legal entity in its own right.
All members in the alliance/consortium are listed as parties to the service agreement. Each member organisation agrees to the terms and conditions of the service agreement and is individually bound by them. Each member organisation is responsible to the other members and to the department for the actions of the alliance/consortium and service delivery. The governance arrangements between member organisations are determined by the alliance/consortium members.
Secure access to view service agrement and payment information via Funded Agency Channel can be provided to members of the alliance/consortium as appropriate.
There is no limit to the number of members in a non-incorporated alliance/consortium. One member, however, must be nominated to receive payments on behalf of the alliance/consortium and receive correspondence from the department. Members are to detemine arrangements for distribution of funding provided.
Incorporated consortium
An incorporated consortium is an arrangement when members of an alliance incorporate to form a new legal entity.
Under this arrangement, the department enters into a direct relationship with the new legal entity and not with each individual member.
Subcontracting
Subcontracting is where an organisation holding a service agreement with the department establishes a contract with another service provider to deliver some or all of the services in the service agreement. Subcontracting of services in the service agreement is only allowed with written consent from the department. More information about subcontracting is provided in section 4.6.
Under subcontracting arrangements, the organisation holding the service agreement has direct accountability to the department for the delivery of services in the service agreement. The sub-contractor holds a direct relationship with the organisation for the subcontracted services.