Chapter 1


Chapter 1

Personally Controlled Electronic Health Records Bill 2011 and the

Personally Controlled Electronic Health Records (Consequential Amendments) Bill 2011

The referral

1.1        On 25 November 2011, on the recommendation of the Selection of Bills Committee, the Senate referred the provisions of the Personally Controlled Electronic Health Records Bill 2011 and the provisions of the Personally Controlled Electronic Health Records (Consequential Amendments) Bill 2011 to the Community Affairs Legislation Committee for inquiry and report by 29 February 2012.[1] On 28 February the Senate extended the reporting date to 13 March 2012.[2] The reporting date was again extended to 15 March and then 19 March 2012.[3]

1.2        References to Committee Hansard in this report are references to the Proof Committee Hansard. Page numbering references in footnotes may change when the Official Hansard becomes available.

Scrutiny of Bills consideration

1.3        The bills were considered by the Scrutiny of Bills committee in its Alert Digest No. 1 of 2012. In that Digest, the Scrutiny of Bills committee commented extensively on the clauses of the bills. The Community Affairs committee recommends that the matters considered in Alert Digest No. 1 of 2012 be taken into consideration by the Senate when debating passage of the bills.

Conduct of the inquiry

1.4        The committee advertised the inquiry in the national press and on its website. A large number of known stakeholders were also invited to make submissions. The committee received 52 submissions relating to the bills (listed at Appendix 1), which are available for viewing on the committee's website https://www.aph.gov.au/Senate/committee/clac_ctte/pers_cont_elect_health_rec_11/index.htm, and held a public hearing in Canberra on 6 February 2012. A list of stakeholders who appeared before the committee is set out in Appendix 2.

1.5        The committee thanks all those submitters and witnesses for their contribution and participation in the inquiry process. 

Background to the policy development

1.6        In 2009 the National Health and Hospitals Reform Commission recommended to the government that by 2012 every Australian should be able to have a personal electronic health record that will at all times be owned and controlled by that person.[4]

1.7        The Personally Controlled Electronic Health Records (PCEHR) Bill 2011 (and the one related bill) will establish the national PCEHR system and provide its regulatory framework.[5] The bill will also implement a privacy regime for the PCEHR system which will operate concurrently with Commonwealth, state and territory privacy laws.[6]

1.8        Essentially the PCEHR system is a network of various participating entities which are coordinated by the System Operator, exchanging health information for the provision of healthcare and other authorised purposes.[7]

1.9        The bill is comprised of eight parts:

  • Part 1 deals with the preliminary matters; it sets out the objects clause, provides a simplified outline of the Act and sets out definitions important to the operation of the Act.
  • Part 2 sets out the governance arrangements that will support the operation of the Act – it identifies the role, composition and functions of the System Operator, advisory bodies such as the Jurisdictional Advisory Committee and the Independent Advisory Council, and the Chief Executive of Medicare.
  • Part 3 deals with registration matters including the requirement to establish a register, the registration process for the different participants in the PCEHR system as well as the requirements for registration. Part 3 also explains cancellation, suspension and variation of registration.
  • Part 4 of the bill contains the key privacy protections. These concern the collection, use and disclosure of health information.
  • Part 5 and 6 provide the framework for the imposition of penalties for breaches of the Act.
  • Part 7 of the bill concerns voluntary enforceable undertakings and injunctions. Voluntary enforceable undertakings and injunctions may be used by the System Operator to ensure participants in the PCEHR system comply with their obligations under the Act.
  • Part 8 of the bill (Other Matters) provides the System Operator with the authority to delegate certain powers, and to make subordinate legislation through Regulations and PCEHR Rules. It also sets out the legislative framework to support the review of decisions, to ensure that authorisations of entities also extend to employees, and to require the lodgement of annual reports by the Information Commissioner and System Operator. Part 8 also provides for the operation of the Act to be reviewed.

1.10      The Personally Controlled Electronic Health Records (Consequential Amendments) Bill 2011 will make amendments to the Healthcare Identifiers Act 2010 to ensure that the PCEHR Bill, once enacted, operates appropriately and effectively.[8] The Consequential Amendments Bill will also make small amendments to the Health Insurance Act 1973 and the National Health Act 1953.[9]

Structure of the report

1.11      This report is comprised of two chapters. Chapter Two discusses the issues raised throughout the inquiry and sets out the committee's considerations and recommendations.

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