At least 250 visiting medical officers working in Canberra's public hospitals are facing a "Damocles' sword" in the form of a new contract condition that could allow ACT Health to terminate them without notice or pay if the relationship "deteriorated to the extent there is no mutual trust".
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The new clause was officially approved by the legislative assembly on September 5 as part of the latest ACT Health-wide VMO contract determination, after an independent arbiter approved it despite protests from the ACT's VMO Association.
Fairfax Media understands the new clause was instituted after relationships between ACT Health and one particular VMO soured, after the VMO raised concerns internally about staffing issues in ACT Health workplaces in Canberra.
The clause will eventually affect at least 250 visiting medical officers working at Canberra and Calvary hospitals, as their contracts come up for renewal over the next three years.
The contract clause states that ACT Health can sack a VMO "irrespective of the VMO's provision of the services", if the directorate "forms a reasonable view that the relationship between the VMO and the Territory has deteriorated to the extent that there is no mutual trust and confidence or good faith between the VMO and the Territory".
ACT VMO Association president Dr Peter Hughes said the clause followed "one person in particular that was giving [ACT Health] a lot of trouble, and they let his contract run out earlier this year".
An ACT Health spokeswoman said the directorate would not comment on "circumstances involving individual VMOs".
She said the new clause was intended "very much as a last resort" and that VMOs would still be able to access reviews of termination decisions they disputed.
But Dr Hughes described the new clause as "draconian" and "a bit of a Damocles' sword" hanging over VMO's heads.
He said he was concerned it could also "pacify" VMOs from honestly raising concerns with management about staffing issues at both Canberra's public hospitals.
"It gives ACT Health much more flexibility in terms of getting rid of people, but it's a pretty vague clause in that they can institute it without notice – it's quite draconian from our point of view," he said.
"If it actually comes up as a reason to terminate someone, we would contest it immediately on the grounds of what is 'a reasonable view'.
"But it's very messy and if they activate the clause, then we're already on the back foot fighting."
The ACT Health spokeswoman would not say how many contracts have been signed since the new three-year contract was approved in September.
But she said the new clause was "introduced to provide capacity for the Territory to address situations where a continued relationship with a VMO is untenable and is intended very much as a final resort".
She also said the contract would also still provide protections for VMOs under clauses that ensure they could have "access to independent mediation and arbitration for any matters of dispute".
"The provision is intended as a final resort and to ensure ACT Health has a legal recourse available to address situations where a continued relationship with a VMO is untenable," she said.
