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Service Agreement Information Kit for Funded Organisations

2.4 Service Agreements with more than one organisation

The departments may enter into a Service Agreement with non-incorporated alliances or consortia.

The department encourages alliances and cooperation between organisations, particularly where these arrangements maximise service delivery effectiveness, quality and benefits to the community.

Primary Care Partnerships provide a good example of the successes achieved through organisations working together. Primary Care Partnerships 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 a separate legal entity at law. 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 Agreement and payment information via the Service Agreement Module on the Funded Agency Channel (external link) 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 determine arrangements for distribution of funding provided by the department.

The alliance/consortium members must also determine which members will be listed as signatories to the Service Agreement. This may be all or some of the overall membership.

Members of non-incorporated consortia that have a Service Agreement may be eligible for coverage under department funded Victorian Managed Insurance Authority insurance programs while undertaking consortium related activities. The Victorian Managed Insurance Authority (external link, opens in a new window) should be contacted to confirm eligibility.

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 that has a Service Agreement with the department arranges for another service provider to deliver some or all of the services under 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 chapter 3.10.

Under subcontracting arrangements, the organisation who is a party to the Service Agreement is directly responsible to the department for the delivery of services in the Service Agreement. The sub-contractor is accountable to the organisation for the subcontracted services, not directly to the department.