Mark Spittal will lead the Western NSW Local Heath District until a permanent replacement is put in place.
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Mr Spittal is currently the executive director of operations.
He will begin as acting chief executive on Wednesday, November 10, coinciding with current chief executive Scott McLachlan's final day.
Mr McLachlan will take over as chief executive of the Central Cost Local Health District.
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"I don't think there is ever a right time [to leave]," he said when announcing his retirement.
"I know what we have been through in the last two or three months, our leadership and the whole of our team has been amazing.
"To see everyone come together and find ways to keep people healthy and alive.
"So there is never a right time but I know the service is in great hands with our leadership and the 8,000 people who come to work every day to do what's best for our communities."
NSW Health is advertising the chief executive role.
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