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Accident Compensation Act 2001

Miscellaneous provisions - Public health acute services

301: Service agreement for purchase of public health acute services and other health services

You could also call this:

“Agreement between ministers for ACC to pay for hospital and health services”

Every year, the Minister must make an agreement with the Minister of Health. This agreement is about buying specific public health acute services and other agreed services for the Accident Compensation Corporation (ACC).

The agreement needs to say how much money ACC will pay to the government. In return, the Minister of Health will fund Health New Zealand to provide public health acute services and other services like medicines and lab tests.

The agreement must also say how they will check if the Minister of Health is following the agreement. It should include any other terms the Ministers agree on, what level of services will be provided, how much ACC will pay, and how they will work out this amount.

The agreement can also include a way to calculate and pay for any leftover costs from the previous year’s public health acute services. It can even cover costs from before this law started.

If ACC has paid too much in a previous year for these services, the agreement can say that the government will pay back the extra amount to ACC.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM103440.

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Part 9 Miscellaneous provisions
Public health acute services

301Service agreement for purchase of public health acute services and other health services

  1. The Minister must enter into an annual service agreement in respect of the financial year commencing on 1 July with the Minister of Health requiring the Crown to purchase specified public health acute services, and such other services as are from time to time agreed by the Ministers, on behalf of the Corporation.

  2. The service agreement must—

  3. provide for the payment of money to the Crown in return for the Minister of Health—
    1. funding the provision of public health acute services, and any other services (including pharmaceuticals and laboratory services) agreed by Health New Zealand or other providers, under Health New Zealand on behalf of the Corporation; and
      1. arranging the funding of that provision; and
      2. provide how the Minister of Health's implementation of the agreement is to be monitored; and
        1. contain the terms and conditions that the Minister of Health and the Minister agree on; and
          1. specify service levels for the delivery of such services; and
            1. specify the level of payment from the Corporation to the Crown; and
              1. specify the mechanism for calculating the sum payable by the Corporation and the method of payment.

                1. The service agreement may provide for the method of calculating, and the payment of, the residual cost of public health acute services for the previous financial year (including the financial year that ended before the date of commencement of this section).

                2. The service agreement may also provide for the Crown to refund to the Corporation any amount overpaid by the Corporation in a previous financial year for public health acute services.

                3. Subsection (4) is for the avoidance of doubt.

                Notes
                • Section 301(2)(a)(i): amended, on , by section 43 of the Pae Ora (Disestablishment of Māori Health Authority) Amendment Act 2024 (2024 No 5).
                • Section 301(2)(a)(i): amended, on , by section 104 of the Pae Ora (Healthy Futures) Act 2022 (2022 No 30).
                • Section 301(4): added, on , by section 50 of the Injury Prevention, Rehabilitation, and Compensation Amendment Act (No 2) 2005 (2005 No 45).
                • Section 301(5): added, on , by section 50 of the Injury Prevention, Rehabilitation, and Compensation Amendment Act (No 2) 2005 (2005 No 45).