Serco fined $1m for WA hospital failings

Serco has been fined $1 million by the West Australian government for failing to meet key performance targets at the new Fiona Stanley Hospital.

Parliament heard during budget estimates on Wednesday that the money was deducted from Serco's $45.5 million contract because it had performed poorly in areas including cleaning and logistics.

Health Minister Kim Hames said negotiations to take away part of Serco's sterilisation responsibilities were under way after surgical equipment at the hospital was found to be contaminated.