Serco is facing a wages bill of about $60,000 to pay for extra staff to ensure it meets contract deadlines for sterilising equipment at Fiona Stanley Hospital.
The company, which delivers non-clinical services at the new $2 billion hospital, was criticised for failing return sterilised equipment to operating theatres and the emergency department within strict deadlines.
The Health Department has now assigned its own staff to the hospital to work with Serco personnel to ensure sterilisation is completed on schedule.
That arrangement could continue for up to two months at a cost estimated at $4,800 a week.
Dr Hames told Parliament that Serco must improve or face losing the contract.
“Our staff now have come … to assist them to make sure they can get it right,” he said.
“If they don’t get it right, then the contract will be terminated.
“If they get it right, then the problem is solved.”
The Minister said the cost of department staff would be met by Serco, and there would be no additional cost to government.
“And in fact, if the contract was taken off them, then we would take back the funds that would otherwise be spent on servicing that contract,” he said.
The Health Minister was unable to say what fines Serco would face for contract breaches.
“That will be determined as part of the contract,” he said.
Shortage of hospital porters dealt with: Minister
The Minister also faced questions over the use of porters to move patients in the hospital.
A shortage of porters at Fiona Stanley Hospital created delays, which forced some doctors to collect their own patients.
Dr Hames told Parliament the porter issue was not a contract breach.
“The Department dealt with that with Serco,” he said.
Dr Hames said the operator would not be fined, but had been required to increase staff numbers.
“Since that time they’ve appointed another 50 persons to work in that space,” he said.
“It’s well above the requirements of the contract to make sure we have a top quality service throughout the hospital.”
Labor moved a motion condemning the privatisation of non-clinical services at the hospital, and the Minister’s handling of Serco’s performance.
“This is an embarrassment for this minister. Privatisation was his key initiative,” Opposition health spokesman Roger Cook said.
“And, as we’ve seen, the privatisation birds are coming home to roost as his key failure.”
The motion was defeated on party lines.