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The Regional Health Authorities Amendment Act (Improved Fiscal Responsibility and Community Involvement)

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S.M. 2012, c. 8

Bill 6, 1st Session, 40th Legislature

The Regional Health Authorities Amendment Act (Improved Fiscal Responsibility and Community Involvement)

(Assented to June 14, 2012)

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

C.C.S.M. c. R34 amended

1           The Regional Health Authorities Act is amended by this Act.

2           Section 1 is amended

(a) by repealing the definition "district health advisory council"; and

(b) by adding the following definition:

"local health involvement group" means a local health involvement group established by a regional health authority under section 32; (« groupe local de participation en matière de santé »)

3           Section 8 is amended

(a) by repealing subsection (1.1);

(b) in subsection (2),

(i) by striking out "or authorities" wherever it occurs, and

(ii) by striking out "or (1.1)"; and

(c) in clauses (3)(b) and (c), by striking out "or authorities".

4           The following is added after section 22:

Employment contract required

22.1        The terms and conditions of employment of the chief executive officer of a regional health authority, and of any senior officer of the authority designated for the purpose of Division 5.1 of Part 4, must be set out in a written employment contract between the authority and the officer.

5           The following is added after subsection  23(2):

Consultation

23(3)       When carrying out its duties under clauses (2)(a) to (c), a regional health authority shall consult with the residents of its health region.

6           Subsection 24(1.1) is repealed.

7(1)        Subsection 28(1) is amended by striking out "or, if two regional health authorities are established in The City of Winnipeg, without the approval of the regional health authority that is responsible for the health services provided or proposed to be provided in the hospital or personal care home".

7(2)         Subsection 28(2) is amended by striking out "or" at the end of clause (a) and repealing clause (b).

8           Subsection 29.1(2) is replaced with the following:

Subject matter of a direction

29.1(2)     A direction given to a health corporation may relate to

(a) the process for hiring a chief executive officer, or any senior officer of the corporation designated for the purpose of Division 5.1 of Part 4; or

(b) any matter that has a region-wide impact on the regional health authority's responsibility to coordinate and integrate health services and facilities in its health region, including planning, standards, and the allocation of financial and other resources.

9           Section 32 is replaced with the following:

Local health involvement groups

32          In accordance with guidelines approved by the minister, a regional health authority shall establish local health involvement groups to explore and provide advice to the board of the authority on issues that impact the delivery of local health services.

10          Clause 33.1(4)(a) is amended by striking out "established in The City of Winnipeg" wherever it occurs and substituting "for a health region that includes the City of Winnipeg".

11(1)       Subsections 51(1) to (4) are repealed.

11(2)       Subsection 51(5) is amended

(a) in clause (a), by striking out "that have submitted a proposal under subsection (1)"; and

(b) in clause (b), by striking out "if the regional health authorities were established for different health regions,".

11(3)       Clause 51(6)(a) is amended by striking out ", if the regional health authorities were established for different health regions,".

12          The following is added after Division 5 of Part 4:

DIVISION 5.1

EMPLOYMENT OF SENIOR HEALTH MANAGERS

Definitions

51.1        The following definitions apply in this Division.

"compensation" means compensation pursuant to an employment contract, and includes the value of all monetary and non-monetary salary or payments, allowances, bonuses, commissions and perquisites, including

(a) all overtime payments, retirement or severance payments, lump sum payments and vacation entitlements and payouts;

(b) the value of loan or loan interest obligations that have been extinguished and the value of imputed interest benefits from loans;

(c) long-term incentive plan earnings and payouts;

(d) the value of the benefit derived from vehicles or allowances for vehicles;

(e) the value of the benefit derived from living accommodation or any subsidy for living accommodation;

(f) payments made for exceptional benefits not provided to the majority of employees of the organization;

(g) payments for memberships in recreational clubs or organizations; and

(h) the value of any other payment or benefit that may be prescribed in the regulations. (« rémunération »)

"designated" means designated by regulation. (« désigné »)

"employment contract" includes any amendment to, or extension or renewal of, an employment contract. (« contrat de travail »)

Policy re RHA terms and conditions of employment

51.2(1)     The minister may establish a policy or policies respecting the terms and conditions of employment — including compensation — of the chief executive officer and designated senior officers of regional health authorities.

Proposed contract reviewed by Manitoba Health

51.2(2)     When a policy is in effect, a regional health authority shall not appoint or enter into an employment contract with a chief executive officer or a designated senior officer unless

(a) the authority has submitted the proposed employment contract to the chief financial officer of the Department of Health for review; and

(b) the chief financial officer has determined that the proposed employment contract is consistent with the policy.

Certain contracts void

51.2(3)     If the requirements of clauses (2)(a) and (b) have not been met with respect to an employment contract,

(a) any provision of the employment contract that the chief financial officer of the Department of Health has determined to be inconsistent with the policy is void and unenforceable; and

(b) the authority shall not provide compensation or make a payment to the chief executive officer or designated senior officer under any inconsistent provision.

Health corporations and designated health care organizations — compensation policy

51.3(1)     Subject to the minister's approval, a regional health authority may establish a policy or policies respecting the compensation payable by health corporations and designated health care organizations to their chief executive officer or designated senior officers.

Employment contract required

51.3(2)     The terms and conditions of employment of the chief executive officer and designated senior officers of a health corporation or designated health care organization must be set out in a written employment contract between the corporation or organization and the officer.

Proposed contract reviewed by RHA

51.3(3)     When a compensation policy is in effect under subsection (1), a health corporation or designated health care organization shall not appoint or enter into an employment contract with a chief executive officer or designated senior officer unless

(a) the health corporation or designated health care organization has submitted the proposed employment contract to the senior financial officer of the regional health authority for review; and

(b) the senior financial officer has determined that the proposed employment contract is consistent with the compensation policy.

Certain contracts void

51.3(4)     If the requirements of clauses (3)(a) and (b) have not been met with respect to an employment contract,

(a) any provision of the employment contract that the senior financial officer of the regional health authority has determined to be inconsistent with the compensation policy is void and unenforceable; and

(b) the health corporation or designated health care facility shall not provide compensation or make a payment to the chief executive officer or designated senior officer under any inconsistent provision.

Restriction — RHA contracts, etc. with former officers

51.4(1)     Except with the minister's approval, no regional health authority shall enter into an employment contract with, or provide compensation or make a payment under any contract or other arrangement to, a person who was formerly a chief executive officer or designated senior officer of the authority, within one year after the person's employment terminated.

Contract void

51.4(2)     A contract entered into without the approval required under subsection (1) is void and unenforceable.

Prohibition — providing compensation or payments

51.4(3)     No regional health authority shall provide compensation or make a payment to any person under a contract or other arrangement that contravenes subsection (1).

Restriction — health corporation, etc. contracts with former officers

51.5(1)     Except with the regional health authority's approval, no health corporation or designated health care organization shall enter into an employment contract with, or provide compensation or make a payment under any contract or other arrangement to, a person who was formerly a chief executive officer or designated senior officer of the health corporation or designated health care organization, within one year after the person's employment terminated.

Authority to consider position of health corporation or health care organization

51.5(2)     In determining whether to grant approval under subsection (1), a regional health authority shall consider the position of the health corporation or designated health care organization on the matter.

Contract void

51.5(3)     Any contract entered into without the approval required under subsection (1) is void and unenforceable.

Prohibition — providing compensation or payments

51.5(4)     No health corporation or designated health care organization shall provide compensation or make a payment to any person under a contract or other arrangement that contravenes subsection (1).

13          Section 59 is amended by adding the following after clause (k):

(k.1) regulating, prohibiting or restricting a regional health authority's use, transfer, disposition, allocation or encumbrance of

(i) its surplus operating funds, or

(ii) funds derived from the operation of an ancillary service provided by the authority;

(k.2) regulating, prohibiting or restricting a health corporation's use, transfer, disposition, allocation or encumbrance of

(i) its surplus operating funds, or

(ii) funds derived from the operation of an ancillary service provided by the health corporation;

(k.3) for the purpose of clause (h) of the definition "compensation" in section 51.1, prescribing any other payment or benefit;

14          Section 60 is amended

(a) by repealing clause (j);

(b) in clause (l) by striking out "district health advisory councils" and substituting "local health involvement groups"; and

(c) by adding the following after clause (q):

(r) designating senior officers or classes of senior officers for the purpose of section 38.1 or Division 5.1 of Part 4;

(s) designating health care organizations for the purpose of Division 5.1 of Part 4.

Amendments to unproclaimed provisions

15(1)        This section replaces or amends provisions of The Regional Health Authorities Amendment Act (Accountability and Transparency), S.M. 2011, c. 28, that are not yet in force.

15(2)       Section 38.1, as enacted by section 8, is replaced with the following:

Expenses paid to CEO and other officers to be published on authority's website

38.1(1)      By June 30 following the end of each fiscal year, a regional health authority shall publish on its website, in accordance with the regulations, the information described in subsection (2) about expenses paid, in that fiscal year,

(a) by the regional health authority to or on behalf of its chief executive officer; and

(b) by each health corporation that provides health services within its health region to or on behalf of its chief executive officer or designated senior officer.

Information to be published

38.1(2)     A regional health authority shall publish on its website information, as prescribed by the regulations, respecting

(a) expense claims in relation to expenses paid to or on behalf of the chief executive officer or designated senior officer in the fiscal year; and

(b) the expenses paid to or on behalf of the chief executive officer or designated senior officer for the fiscal year, in relation to each claim referred to in clause (a).

Information that is not to be published

38.1(3)     Information that would identify a personal bank account, personal credit card account or any other personal account of the chief executive officer, designated senior officer or any other person must not be published on the authority's website.

Health corporation to provide information to RHA

38.1(4)     A health corporation shall provide to a regional health authority the information, including personal information, that the regional health authority requires to comply with this section.

15(3)       Clause 60(h.1), as enacted by clause 10(e), is amended

(a) by adding "under section 38.1" after "authority"; and

(b) by striking out "to its chief executive officer".

Coming into force

16(1)       Subject to subsection (2), this Act comes into force on the day it receives royal assent.

Coming into force: sections 2, 8, 9, parts of sections 12 and 13, and clauses 14(a) and (b)

16(2)       The following provisions come into force on a day to be fixed by proclamation:

(a) section 2;

(b) section 8;

(c) section 9;

(d) section 12 insofar as it enacts section 51.3;

(e) section 13 insofar as it enacts clause 59(k.2);

(f) clauses 14(a) and (b).