Health portfolio
Amid allegations of bullying, it was reported in early 2010 that nine obstetricians had resigned from Canberra Hospital in the preceding 13 months. The Royal College of Obstetricians and Gynaecologists called on Gallagher to conduct an external, transparent review of the hospital; and, although initially denying the claims, Gallagher agreed to two external reviews, one to look at workplace issues and the other to investigate patient outcomes. The patient outcome review, when handed down in August 2010, sharply criticised hospital management with regards to workload, but stated that patient care was adequate. A number of months earlier, Gallagher faced pressure from the Catholic Church, following an agreement that the ACT Government would purchase Calvary Hospital (in Bruce) from the Little Company of Mary Health Care (LCMHC) – an independent arm of the Church – for $77m. Catholic Archbishop of Sydney, Cardinal George Pell claimed that the Government's motives were ideological and driven by anti-Christian elements. Gallagher denied the claims. A dispute subsequently arose between LCMHC and the Government over an accounting concession and the government withdrew from the purchase. The culmination of these matters led the Liberal leader, Zed Seselja, on 17 August 2010, to move a no confidence vote in the Assembly against Gallagher as Minister for Health as follows:

The motion was defeated (five in favour, nine against), with the ACT Greens supporting the government. Chief Minister

On 12 May 2011, while Gallagher was deputy chief minister, the current chief minister at the time, Jon Stanhope, resigned. On 16 May 2011, Gallagher was elected by the Assembly as the ACT's 6th Chief Minister and 3rd female Chief Minister.
Health portfolio
 Amid allegations of bullying, it was reported in early 2010 that nine obstetricians had resigned from Canberra Hospital in the preceding 13 months. The Royal College of Obstetricians and Gynaecologists called on Gallagher to conduct an external, transparent review of the hospital; and, although initially denying the claims, Gallagher agreed to two external reviews, one to look at workplace issues and the other to investigate patient outcomes. The patient outcome review, when handed down in August 2010, sharply criticised hospital management with regards to workload, but stated that patient care was adequate. A number of months earlier, Gallagher faced pressure from the Catholic Church, following an agreement that the ACT Government would purchase Calvary Hospital (in Bruce) from the Little Company of Mary Health Care (LCMHC) – an independent arm of the Church – for $77m. Catholic Archbishop of Sydney, Cardinal George Pell claimed that the Government's motives were ideological and driven by anti-Christian elements. Gallagher denied the claims. A dispute subsequently arose between LCMHC and the Government over an accounting concession and the government withdrew from the purchase. The culmination of these matters led the Liberal leader, Zed Seselja, on 17 August 2010, to move a no confidence vote in the Assembly against Gallagher as Minister for Health as follows:
 The motion was defeated (five in favour, nine against), with the ACT Greens supporting the government. Chief Minister
 On 12 May 2011, while Gallagher was deputy chief minister, the current chief minister at the time, Joni Stanhope, resigned. On 16 May 2011, Gallagher was elected by the Assembly as the ACT's 6th Chief Minister and 3rd female Chief Minister.