Hospital CEO sues health boss over blocked renewal

The boss of Melbourne's major children's hospital is suing the Victorian health department secretary for blocking her reappointment.

Royal Children’s Hospital chief executive Bernadette McDonald has launched a bid for the Supreme Court to overturn a decision not to renew her contract.

Ms McDonald, whose three-year term in the role expires on September 13, argues she was not granted procedural fairness

Her statement of claim, prepared by law firm Maurice Blackburn, states the hospital's board voted unanimously to reappoint her in late February.

Chair Rowena Coutts formally wrote to Department of Health secretary Euan Wallace in mid-March to approve her reappointment, but months passed without a response.

On July 2, Ms Coutts met with the department's deputy secretary and was told Mr Wallace had decided not to approve the request and to go to "market" through a "recruitment process".

According to the document, she was told "the secretary had indicated that he would not approve the reappointment of Ms McDonald as CEO even if she was identified as the preferred candidate".

A second letter to the secretary to approve the board's appointment on July 23 was knocked back two days later.

"At no time prior to the decision had the secretary or other official of the Department of Health raised concerns about Ms McDonald’s ability to fulfil the role of CEO with the chair of the board or with Ms McDonald," the document said.

Ms McDonald wants the secretary's decision not to approve her reappointment quashed, or a declaration that it was invalid.

Otherwise she is seeking an injunction requiring the secretary to take steps to "dispel a reasonable apprehension of bias".

Health Minister Mary-Anne Thomas said she had been advised of the legal action but refused to comment further.

"It is a matter now that is before the courts," she told reporters at state parliament on Wednesday.

What is AAPNews?

For the first time, Australian Associated Press is delivering news straight to the consumer.

No ads. No spin. News straight-up.

Not only do you get to enjoy high-quality news delivered straight to your desktop or device, you do so in the knowledge you are supporting media diversity in Australia.

AAP Is Australia’s only independent newswire service, free from political and commercial influence, producing fact-based public interest journalism across a range of topics including politics, courts, sport, finance and entertainment.

What is AAPNews?
The Morning Wire

Wake up to AAPNews’ morning news bulletin delivered straight to your inbox or mobile device, bringing you up to speed with all that has happened overnight at home and abroad, as well as setting you up what the day has in store.

AAPNews Morning Wire
AAPNews Breaking News
Breaking News

Be the first to know when major breaking news happens.


Notifications will be sent to your device whenever a big story breaks, ensuring you are never in the dark when the talking points happen.

Focused Content

Enjoy the best of AAP’s specialised Topics in Focus. AAP has reporters dedicated to bringing you hard news and feature content across a range of specialised topics including Environment, Agriculture, Future Economies, Arts and Refugee Issues.

AAPNews Focussed Content
Subscription Plans

Choose the plan that best fits your needs. AAPNews offers two basic subscriptions, all billed monthly.

Once you sign up, you will have seven days to test out the service before being billed.

AAPNews Full Access Plan
Full Access
AU$10
  • Enjoy all that AAPNews has to offer
  • Access to breaking news notifications and bulletins
  • Includes access to all AAPNews’ specialised topics
Join Now
AAPNews Student Access Plan
Student Access
AU$5
  • Gain access via a verified student email account
  • Enjoy all the benefits of the ‘Full Access’ plan at a reduced rate
  • Subscription renews each month
Join Now
AAPNews Annual Access Plan
Annual Access
AU$99
  • All the benefits of the 'Full Access' subscription at a discounted rate
  • Subscription automatically renews after 12 months
Join Now

AAPNews also offers enterprise deals for businesses so you can provide an AAPNews account for your team, organisation or customers. Click here to contact AAP to sign-up your business today.

SEVEN DAYS FREE
Download the app
Download AAPNews on the App StoreDownload AAPNews on the Google Play Store