ACT Health Minister Rachel Stephen-Smith has said the government's compulsory acquisition of Calvary Hospital has "significant legal precedent" to be done "on just terms", saying the response of legal action from Calvary is "not entirely a surprise".
Calvary announced it would be taking legal action against the acquisition on Tuesday, stating it was the only response left available if the government did not adjourn debate on the legislation.
The legislation to forcibly acquire Calvary's Bruce hospital will move ahead and face the Assembly on Wednesday, despite proposed legal action, where it is expected to pass.
Minister Stephen-Smith told ABC Radio Canberra on Wednesday the goal was to come to an agreement with Calvary on exactly what the "just terms" are.
"And that's been the aim of the conversations that have been held to date but there hasn't been agreement at this point," she said.
"The legislation is very clear and there is significant legal precedent for governments to undertake compulsory acquisition on just terms ... and the legislation is very clear that it provides for the compensation to be made to Calvary on just terms."
She said a meeting scheduled between Calvary and the ACT government on Monday had been cancelled.
"And then we received this letter telling us that they intended to take legal action," she said.
"But once this legislation is passed and notified, they will also be legally obliged to work with Canberra Health Services through transition and we strongly encourage them."
Minister Stephen-Smith praised leadership at Calvary for holding talks with Canberra Health Services chief executive Dave Peffer, but said the government still hadn't been able to talk to staff directly.
"We have actually had quite a few conversations with staff who have chosen to come to the forums that have been hosted by Canberra Health Services or who I've met with either separately or with their union representatives," she said.
"But what we have heard very clearly from all of them is that they want to understand what this means to them."
She said the staff wanted to understand their jobs would remain the same, they would stay in the same team and that they would remain on the same pay conditions over the period following the transition.
"That's what we have been able to provide them during those conversations," she said.
The details of the negotiations between Calvary and the ACT government remain unknown, but Minister Stephen-Smith said it was possible the terms would be determined through a court process.
She said the details of the agreement would become public once it was justifiably made.
A fiery debate is expected and protesters are anticipated to gather outside the Legislative Assembly while the bill is being discussed on Wednesday.
Some minor amendments will be made to the legislation but it is set to pass with support from Labor and Greens members. The Liberals want to oppose the bill.
Calvary will not provide details of the court action it intends to take, however, an injunction is the most likely option.
The organisation is not able to pursue this until the bill has passed the Assembly.
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