4.6 Subcontracting
The service agreement includes provisions allowing organisations to subcontract direct services, in whole or in part, to a third party. This can only happen with the prior written consent of the department.
There are no provisions for the subcontracting of direct services by hospitals.
An organisation, except for hospitals, may subcontract if it:
- provides written notification to the department of its intention to subcontract
- provides the subcontractor's name, address, legal status, relevant qualifications and details of the service to be subcontracted
- satisfies the department that the third party can satisfactorily provide the service(s) proposed to be subcontracted
- acknowledges that it remains responsible and accountable to the department for the provision of any subcontracted services
- obtains the written consent of the department.
Before subcontracting services, organisations are strongly advised to seek their own legal advice, to ensure that their obligations under the service agreement are not compromised. The subcontracting arrangement must ensure that the subcontractor has at least the same obligations as those that apply to the organisation under the service agreement, including any provision relating to confidentiality, permitted disclosure, insurance requirements and privacy of information. For example, an organisation may ask the subcontractor to sign a deed of confidentiality to reflect its own requirements, as outlined in its service agreement.
The subcontractor must meet an organisation's service delivery obligations and the organisation must ensure that the subcontractor meets these obligations (as the department does not have a direct legal relationship with the subcontractor).
The organisation holding the service agreement will be responsible for any subcontracted services.