Application of this Part
s 32
32. This Part applies only in relation to a licensee of a prescribed category or description (called in this Part a designated licensee).
Healthcare Services Act 2020 PART 4 — STEP-IN ARRANGEMENTS FOR DESIGNATED LICENSEES
Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. · Read the official text ↗
Step-in order
s 33
33.—(1) The Minister may make an order under this section (called a step‑in order) if —(a) one or more licences of a designated licensee are suspended, revoked or surrendered; (b) a designated licensee —(i) is, or is likely to be, declared a bankrupt; (ii) has gone, or is likely to go, into compulsory or voluntary liquidation other than for the purpose of amalgamation or reconstruction; or (iii) is, or is likely to be, placed under judicial management of a judicial manager under any written law relating to the insolvency of companies; (c) a designated licensee is contravening or not complying with any provision of this Act; (d) a designated licensee is carrying on its operations in a manner that is detrimental, or is likely to be detrimental, to the interests of the designated licensee’s patients or customers; or (e) the Minister considers it in the public interest to do so, and on receipt of the written opinion of the Director-General that it is necessary to take over some or all of the operations of the designated licensee to ensure that the designated licensee’s patients or customers receive the appropriate healthcare services or an adequate provision of healthcare services. [Act 11 of 2023 wef 26/06/2023] (2) Before a step‑in order is made under subsection (1), but subject to subsection (3), the Minister must give the designated licensee concerned a reasonable opportunity to make written representations in respect of the proposed step‑in order. (3) Where the Minister is of the opinion that it is necessary to make a step‑in order on an expedited basis (called in this Part an expedited step‑in order) in order to protect the safety and health of the designated licensee’s patients or customers, the Minister may make an expedited step‑in order, which takes effect on the date the order is served on the designated licensee. (4) A step‑in order or an expedited step‑in order —(a) may order the designated licensee —(i) to revoke the appointment of the designated licensee’s Principal Officer or Clinical Governance Officer, and appoint another individual as the designated licensee’s Principal Officer or Clinical Governance Officer (as the case may be) for the period specified in that order; (ii) to revoke the appointment of all or any of the designated licensee’s key appointment holders, and appoint another individual or other individuals as the designated licensee’s key appointment holder or holders for the period specified in that order; (iii) to transfer the designated licensee’s patients or customers to the care or treatment of another licensee for the period specified in that order; (iv) to appoint another licensee to provide a licensable healthcare service provided by the designated licensee for the period specified in that order; and (v) to appoint a person to advise the designated licensee in the proper conduct of the designated licensee’s business and operations; (b) may authorise the Director-General —(i) to directly take over, or appoint a step‑in operator to take over, the operations of the designated licensee or a specified part of those operations; and (ii) to do any thing mentioned in paragraph (a);[Act 11 of 2023 wef 26/06/2023] (c) may specify that —(i) the step‑in operator has the functions and powers in relation to the operations of the designated licensee that are specified in the order; (ii) the designated licensee is to stop providing healthcare services to specified patients or customers on and from a specified date; (iii) the step‑in operator must have access to, and take control or management of, the premises or other assets and other property (including intellectual property), licences and employees used or required by the designated licensee for the purpose of carrying on the operations specified in the order; and (iv) the Director-General must have access to, and be able to make copies of or take extracts from, any document or record in the possession or under the control of the designated licensee that is relevant to the order;[Act 11 of 2023 wef 26/06/2023] (d) where an order mentioned in paragraph (a)(iii) or (iv) is made, may specify, in addition to any matter that may be specified under paragraph (c), that —(i) the designated licensee must notify the Director-General of the identity of the other licensee mentioned in paragraph (a)(iii) or (iv); and[Act 11 of 2023 wef 26/06/2023] (ii) the other licensee must have access to, and be able to make copies of or take extracts from, any document or record in the possession or under the control of the designated licensee for the purpose of the order; and (e) may contain ancillary directions that may —(i) contain directions about how the costs of, and revenue generated from, providing the healthcare services are to be dealt with; (ii) fix the remuneration and expenses to be paid by the designated licensee concerned to any person appointed under paragraph (a)(v) to advise the designated licensee in the proper conduct of the designated licensee’s business and operations; (iii) specify the period for which the step‑in order or expedited step‑in order applies; and (iv) specify any other conditions that may apply. (5) Any decision of the Minister under subsection (1) or (3) is final. (6) A step‑in order or an expedited step‑in order operates to the exclusion of rights that are inconsistent with the step‑in order or expedited step‑in order, as the case may be. (7) Subject to subsections (8) and (9), the designated licensee mentioned in the step-in order or expedited step-in order, as the case may be —(a) must facilitate the handover of the operations to the step‑in operator as specified in the step‑in order or expedited step‑in order, as the case may be; (b) must not obstruct the step‑in operator’s access to the property of the designated licensee or the exercise by the step‑in operator of the step‑in operator’s responsibilities under this section; and (c) must comply with reasonable directions given by the step‑in operator in the exercise of the step‑in operator’s responsibilities under this section. (8) Where a step‑in order or an expedited step‑in order mentioned in subsection (4)(a)(iii) is made, the designated licensee must facilitate the transfer of the designated licensee’s patients or customers to the other licensee mentioned in subsection (4)(a)(iii). (9) Where a step‑in order or an expedited step‑in order mentioned in subsection (4)(a)(iv) is made, the designated licensee —(a) must facilitate the provision of the licensable healthcare service by the other licensee mentioned in subsection (4)(a)(iv); and (b) must not obstruct that other licensee’s access to and use of the property of the designated licensee for the purpose of the provision of the licensable healthcare service. (10) A designated licensee that fails to comply with subsection (7), (8) or (9) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 12 months or to both and, in the case of a continuing offence, to a further fine not exceeding $1,000 for every day or part of a day during which the offence continues after conviction.
Duration of step-in order or expedited step-in order
s 34
34.—(1) The Minister may revoke a step‑in order or an expedited step-in order at any time. (2) The appointment of a step‑in operator in relation to the operations of a designated licensee or a specified part of those operations may be revoked by the Minister at any time —(a) if the Minister is satisfied that —(i) the reasons for the appointment have ceased to exist; or (ii) it is no longer necessary for the protection of the designated licensee’s patients or customers; or (b) on any other ground, and upon the revocation, the step‑in operator ceases to be in control of those operations or that specified part of those operations.
Rules and saving for step-in arrangements
s 35
35.—(1) The Minister may make rules to give effect to this Part, including making provision for applying, omitting or modifying provisions of any written law relating to the insolvency of companies (if applicable) where a step‑in order or an expedited step‑in order is made. (2) Nothing effected or to be effected by, or done under, this Part —(a) is to be regarded as placing any person in breach of contract or confidence or as otherwise making any person guilty of a civil wrong; (b) is to be regarded as placing any person in breach of, or as constituting a default under, any Act or other law or obligation or any provision in any agreement, arrangement or understanding including, but not limited to, any provision or obligation prohibiting, restricting or regulating the assignment, transfer, sale or disposal of any property or the disclosure of any information; (c) is to be regarded as fulfilling any condition that allows a person to exercise a power, right or remedy in respect of, or to terminate, any agreement or obligation; (d) is to be regarded as giving rise to any remedy for a party to any contract or instrument, or as causing or permitting the termination of any contract or instrument, because of a change in the beneficial or legal ownership of any designated property; (e) is to be regarded as causing any contract or instrument to be void or otherwise unenforceable, or as frustrating any contract; or (f) releases any surety or other obligor wholly or in part from any obligation.
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