Portland District Health Annual Report 2007 - South West Alliance of ...

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Portland District Health Annual Report 2007 - South West Alliance of ...

Portland District Health

President’s Report

Portland District Health looks

forward to the challenges and

opportunities our health service

faces in the coming year.

On behalf of the Board of Management, I am pleased to present the

2006/07 Annual Report of Portland District Health. This certainly has

been an eventful year. The Board has faced numerous challenges

and to their credit I believe they have worked tirelessly to provide a

sustainable health service that meets the needs of the Portland and

district community.

To achieve this, the Board has focused on the financial position of

the health service. Although Portland District Health had been on the

Department of Human Services’ Close Watch financial program, our

financial position was deteriorating. So the Board commenced an

internal review to determine why this was occurring, which alternatively

led to a complete review of all operational services.

In May, the Senior Vice President, Mr. Jim Harpley and I met with

Victorian Health Minister, The Honourable Bronwyn Pike, MP to

outline the Board’s proposed actions over the next six months. These

actions included a review of our medical workforce issues and our

declining patient numbers. Following our presentation, Minister Pike

provided additional assistance to the Board with the appointment

of two ministerial delegates to the Board, Dr. Heather Wellington, a

medico/legal advisor and Mr. Michael Rhook as a financial consultant.

The Board subsequently appointed Aspex Consulting to prepare a

five-year clinical services plan to address our medical workforce and

referral process and also appointed Mr. John O’Neill as the interim Chief

Executive Officer to co-ordinate these reviews.

Our road to recovery is far from over but we can now see the finishing

line. Providing we can stay focused and true to our vision, we will ensure

that Portland District Health is one of the best regional health services

in Victoria.

All of this could not be possible without the tremendous support of the

Portland district community who have demonstrated their commitment

and desire to ensure Portland District Health remains as an independent,

primary and acute care health service which services the needs of our

community.

The community commitment has been demonstrated in numerous

ways throughout the year and whether this is by the thousands of

hours committed by our volunteer workforce or by the generosity of the

Portland community through bequests from the estate of the late Glenys

Simmons, the Dipalo family and Geoff Handbury (Westneath Nominees).

Our sincere gratitude is extended to all local business houses, local

media, tradespeople and others who assisted in the construction of

the new 30-bed aged care facility, which will be officially opened later

this year.

To strive to become one of the best regional

health services in Victoria is only possible

if we have an outstanding workforce that

can provide the appropriate level of service.

After seeing the level of professionalism

displayed by our staff over the past 12 months,

I am confident that we have the talent and

commitment to achieve this goal.

Last but certainly not least I would also

like to take this opportunity to record my

sincere appreciation to Dr. Michael Martin,

Chair Visiting Medical Officers Group for

working closely with the Board to break down

the previous obstacles that had hindered

relationships between the medical workforce

and Portland District Health.

I sincerely thank all members of the Board

of Management who, as volunteers, serve

as community representatives on the

necessary committees required to ensure an

effective public health service is provided.

GREG ANDREWS

President

PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07


Portland District Health

Chief Executive’s Report

Our Health Service

Beyond 2007

As the newly appointed interim Chief

Executive Officer of Portland District Health

I can only report from July 2007. I can

categorically state that we are facing many

challenges, but without doubt, should we

overcome these challenges, our health

service has a solid and exciting future.

Change often creates uncertainty, but

always opportunities. It forces us to grow

and develop. It challenges us.

The key changes include:

• Appointment of two delegates to the

Board by Victorian Health Minister

The Hon. Bronwyn Pike MP;

• Engagement of consultants Aspex

Consulting to prepare a five-year clinical

services plan and model of care;

• Engagement of Adjunct Associate

Professor Leanne Rowe to review

clinical governance;

• Engagement of Ms. Christine

Cunningham to review PDH’s primary

care service delivery model;

• Negotiation of a partnership with

Western District Health Service to

co-operate in the regional delivery of

corporate services, providing the

hospital with improved management

resources; and

THE FUTURE

At the time of writing this report, Portland District Health and the community

are awaiting a report from the consulting group Aspex Consulting on a five-year

clinical services strategy and model of care including the region’s emerging aged

care needs.

This report is of particular relevance as patient care services are currently underutilised

with a steady drift towards the larger referral hospitals at Warrnambool,

Hamilton and Geelong. Based on the changing needs of our communities, we

are also looking for new ways of delivering health services and focusing more

on supporting people to stay well and live healthier lifestyles. This change will

not happen overnight, but at a time when more individuals are focusing on how

they can make changes to live a more healthy life, our health service should be a

leader in this direction and support our community to make those changes.

The Department of Human Services has provided approximately $5.2m of

“top-up” funding to support Portland District Health over recent years. Clearly this

is not sustainable in the long run. Consequently, the Aspex Consulting report also

becomes pivotal to the future direction and funding of Portland District Health.

Professor Leanne Rowe has been engaged to assist PDH to develop a clinical

governance framework. This framework will strengthen our accountability for

continuous improvement in the quality of service delivery and safeguard high

standards of care by creating an environment in which excellence in clinical care

will flourish, to ensure high quality care from all involved in the patients journey

and to ensure patients are the main focus and priority.

• The appointment of Deloittes to review

internal control systems.

Change often creates uncertainty,

but always opportunities. It forces us

to grow and develop.

PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07


The hospital and health service has made

considerable progress in many areas and is

now laying a solid foundation.

PATIENT CARE FACILITIES

The internal refurbishment program at Portland District Health has

led to improved patient care facilities. This year, a new 8-bed Day

Procedure Unit was commissioned on 17 July with the first patients

seen in late July. Arrangements are being made to officially open

the new Day Procedure Unit in October and PDH is indebted to the

Dipalo family who generously donated over $300,000 towards the

new unit.

A new Residential Aged Care facility, Harbourside Lodge will be

commissioned closer to Christmas. At the time of writing this report,

arrangements are being put in place to reach contract completion,

with essential services certification and practical completion

certificates.

In addition, there has been a significant injection and upgrade of

patient care equipment particularly in our operating theatres. PDH

is again indebted to Geoff Handbury (Westneath Nominees) who

very generously donated $200,000 towards the purchase of this

equipment.

FINANCIAL MANAGEMENT

The year in review brought with it a number of disappointments

and concerns; none more so than PDH’s financial performance

- recording its third consecutive operating loss. This year, financial

statements will record a net result from continuing operations before

capital and specific items of $0.985K and a net result for the year

of $0.509K. The Board and the Department of Human Services

recognise that the deteriorating result is not sustainable and must be

addressed. The Board has determined a course of action to reduce

operating costs and increase patient activity.

A little over 70% of costs within a healthcare facility lie in staff costs

and as such, PDH will need to restructure work practices and review

its staffing profiles. This process began when the Board endorsed a

new organisational senior executive structure commensurate with the

role and function of a local community hospital. At the time of writing

this report, a recruitment agency has been engaged to recruit to

these new positions.

EXECUTIVE STAFF DEVELOPMENTS

There were a number of pivotal senior executive changes during the

year. Marie Shea, Chief Executive Officer tendered her resignation

in July. Dr Meindert van der Veer took up a new post as Medical

Director at Western District Health Service.

SUMMARY

The year ahead will be difficult and demanding. Notwithstanding

this, the hospital and health service has made considerable progress

in many areas and is now laying a solid foundation to address the

deteriorating financial position and tackle declining patient numbers

and strengthen clinical governance.

Opportunities and challenges will arise from various reviews,

enabling PDH to secure its future fiscally and strengthen its clinical

governance framework. These reviews, when underpinned by

sound business principles, workforce management and general cost

constraints, coupled with increased scope and range of services, will

enable PDH to look confidently to the future.

JOHN C O’NEILL

Chief Executive

PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07


Portland District Health

Corporate Governance

The Board of Management of Portland

District Health is appointed on the

recommendation of the Victorian Health

Minister, The Hon. Bronwyn Pike MP.

The Board of Management is governed

by principles contained within the Health

Services Act 1998 (as amended).

The Board provides

governance of the Health

Service and is responsible

for the quality of healthcare

services provided by

Portland District Health.

It is also responsible for

the financial performance

and involvement in the

community.

The Board consists of up to 12 members appointed by the Governor in Council.

Each member of the Board holds office for a term not exceeding three (3) years

and is eligible for re-appointment.

Portland District Health’s Board of Management meets monthly throughout

the year.

Portland District Health by-laws enable the Board to delegate various

responsibilities. These by-laws are supported by executive delegations and

operational responsibility which enables executives and staff to perform their

duties through specific delegated authority.

The registered office of Portland District Health is Bentinck Street,

Portland, 3305.

Portland District Health would like to acknowledge The Hon. Daniel Andrews

MP as the Victorian Government’s recently sworn in Health Minister.

4 PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07


Portland District Health

Board Committees

AUDIT COMMITTEE

The Audit Committee is responsible for monitoring and advising

the Board on matters relating to financial accountability and

internal controls including the effectiveness of management

information systems, in accordance with relevant laws and

regulations.

The Committee meets quarterly.

MEDICAL APPOINTMENTS/ADVISORY COMMITTEE

The Medical Appointments/Advisory Committee is responsible

for the appointment of appropriately credentialed medical staff

to Portland District Health, within their defined scope of clinical

practice. These appointments are made in accordance with

Portland District Health by-laws.

REMUNERATION COMMITTEE

The primary focus of the Remuneration

Committee is to provide advice and

assurance to the Board relating to the

effectiveness, integrity and adherence to the

Government Sector Executive Remuneration

Panel (GSERP) guidelines for senior

executive remuneration.

PROJECT CONTROL GROUP/PLANNING

AND DEVELOPMENT

The Project Control Group monitors the progress of major

projects with particular emphasis on the program, scope, cost,

expenditure and fulfilment of the approved project brief and

user needs.

QUALITY COMMITTEE

The Quality Committee maintains a high

level overview of the performance of safety

and quality systems and ensures any risks

and/or deficiencies are addressed.

The Committee reports to the Board.

CONSULTATIVE COMMITTEE

The Consultative Committee is a forum for

the resolution of issues relating to medical

administrative matters. The function of the

committee is advisory and not executive.

It considers matters relating to the medical

administration of the hospital and considers

differences arising between the Board and

its officers and the medical staff, tendering

appropriate advice, recommendations or

reports to the Board and VMO Group on all

matters considered.

PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07


Portland District Health

Board Profiles

MR. GREG ANDREWS

PRESIDENT

Diploma Public Health

Greg is currently serving

his second term as a Board

member and was elected

President in 2006. He represents

the Board on the Remuneration,

Medical Appointments and

Consultative Committees. Mr.

Andrews is the Environmental

Health Officer at the Glenelg

Shire Council.

MS. TANYA SIMMONDS

TREASURER

(resigned April 2007)

Tanya was appointed to the

Board of Management in

November 2006. During this

time she served as Treasurer.

We extend our congratulations

to Tanya following the recent

birth of daughter Alice.

MR. JIM HARPLEY

SENIOR VICE PRESIDENT

B. Metallurgy

MR. MIKE NOSKE

TREASURER

B.Eng (Mech) Honours

Jim is serving his second term

as a Board member. He was

elected Senior Vice President in

2006. He represents the Board

on the Project Control Group,

Remuneration and Consultative

Committees. Mr. Harpley is a

Senior Process Engineer at

Portland Aluminium.

Mike is serving his first term as

a Board member. He represents

the Board on the Remuneration

and Quality Committees.

Mr. Noske is Keppel Prince’s

Project Manager for the Waubra

Windfarm project. He is also

the Director/Manager of Emelen

Pty. Ltd. (Portland Print Services

and the Star Cinema).

MR. VIN GANNON

JUNIOR VICE PRESIDENT

Vin is serving his third term

as a Board member. He

represents the Board on the

Medical Appointments and

Consultative Committees. Mr.

Gannon is the Chief Executive

Officer of the Victorian Abalone

Divers Association, Director

on the Prime Safe Board and

is a qualified graduate of the

Institute of Company Directors.

MR. BILL COLLETT

BOARD MEMBER

PHC, MPS, FACPP

Bill was appointed to the

Board of Management in 2005.

He currently serves as Deputy

Treasurer. Mr. Collett represents

the Board on the Audit and

Consultative Committees.

PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07


MRS. MERLYN MENZEL

BOARD MEMBER

Division 1 Nurse, Associate

Diploma Welfare Studies

Merle has been a member

of the Board since 2002.

She represents the Board

on the Quality and Medical

Appointments Committees.

Mrs. Menzel is the Office

Manager of R. and M. Menzel

Electrical Contractors and a

Bail Justice.

OUR MISSION

To provide safe

and cost effective

primary, acute and

aged care services

to residents of the

Portland district.

MR. BRUCE DU

VERGIER

BOARD MEMBER

Bruce was appointed to the

Board in November 2005.

He is the Chief Executive

Officer of Community

Connections (Vic) Ltd. since

beginning in 1991 and is the

Chairperson of the Southern

Grampians and Glenelg

Primary Care Partnership.

MR. BRIAN SPARROW

BOARD MEMBER

Brian is serving his first term

as a Board member. He

represents the Board on the

Quality Committee. Mr. Sparrow

is a qualified chef and has

previously run his own catering

business. He has served in the

Australian Defence Force for

12 years.

PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07


Portland District Health

Executive Management

Team

CHIEF EXECUTIVE OFFICER

MRS. MARIE SHEA

RN, BA (Hons), FRCNA, AFCHSE, JP

(Appointed July 2005, resigned August 2007)

The Chief Executive is responsible for the executive leadership

and overall management of the organisation ensuring that the

decisions of the Board are implemented.

Mr. O’Neill was appointed as Interim Chief Executive in July 2007.

DIRECTOR OF CORPORATE SERVICES

AND COMMUNITY HEALTH

MR. PHIL HYNES

Diploma Health Administration, Advanced Diploma of Business (HR)

(Appointed March 1982)

The Director of Corporate Services and Community Health is

responsible for all corporate service and allied health staff including

community nursing, counselling, drug and alcohol services, health

promotion, allied health, dental, physiotherapy, maternal and

child health, catering, environmental, engineering, safety, human

resources, fundraising, executive officer (Board), special projects

and supported residential service – Sea View House.

DIRECTOR OF NURSING

MRS. KATHRYN EYRE

RN Division 1, BN, M Health Management,

Certificate of Finance, AFCHSE, MRCNA

(Appointed February 2003)

The Director of Nursing is responsible for

inpatient services, outpatient services

(including Accident and Emergency),

operating suite, infection control, nurse

education, aged care, volunteers and

district nursing. She is also responsible

for the development, provision and

compliance of nursing policy.

With the assistance of the Assistant

Director of Nursing, Mrs Maureen

Patterson, she is also responsible for

quality co-ordination, mandatory reporting

including incidents, complaints and

patient advocacy issues, reporting

of quality of care to the community,

rehabilitation (return to work), clinical

HR specialists, data management and

chaplaincy services.

DIRECTOR OF MEDICAL SERVICES

DR. MEINDERT VAN DER VEER

MB,CHB, FRACGP, MRACGP, AFACHSE

(Appointed November 2004, resigned July 2007)

The Director of Medical Services is responsible for the

development and provision of medical services including Visiting

and Career Medical Officers, medical imaging, pathology,

pharmacy, patient services, Portland District Health Specialist

Centre and health information management and Freedom of

Information. He is also responsible for medical policy.

DIRECTOR OF FINANCE

MR. WAYNE ARMISTEAD

BComm, CPA, Master of Business

(Appointed June 1987)

The Director of Finance is responsible

for the management of the Finance

Department including financial reporting,

analysis, budgeting and budgeting controls/

recovery in line with identified targets and

strategies.

The role provides management and

leadership for information technology,

payroll and supply.

PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07


Portland District Health

Organisational Structure

BOARD

CHIEF EXECUTIVE OFFICER

Executive Assistant

Director

of

Nursing

Director

of

Finance

Director

of

Medical Services

Director of Corporate

Services and

Community Health

ADON/

Quality

Executive

Assistant

Financial Services

VMOs

Health Promotion

Midwifery

Acute

Rehabilitation

Dialysis

Operating Suite

A&E

Residential

Aged Care

Information Technology

Payroll

Supply

WorkCover

CMOs

Pathology

Pharmacy

Medical Imaging

Health Information

Community Health

Sea View House

Maternal & Child Health

Physiotherapy

Dental

Podiatry

Building/Engineering

Occupational Therapy

After Hours

Co-ordination

Speech Therapy

Education

Food Services

District Nursing

Dietetics

Infection Control

Board Executive

Discharge

Planning/PAC

Social Work

Drug & Alcohol

Environmental Services

PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07


Portland District Health

Services provided by Portland District Health

Portland District Health is a Public Hospital with 69

approved acute beds, 30 nursing home beds and a 58 place

Supported Residential Service. Through its primary and

community care division, Portland District Health also offers

a diverse range of community health services. A listing of

services provided by the organisation is set out below.

MEDICAL:

Accident & Emergency

Anaesthetics

Chemotherapy

Dermatology

Diagnostic Imaging

- CT Scanning

- Doppler Ultrasound

Endocrinology

Endoscopy

ENT Surgery

General Surgery

General Medicine

Geriatric Medicine

High Dependency Unit

Obstetrics & Gynaecology

Ophthalmology

Oral Surgery

Orthodontics

Orthopaedics

Paediatrics

Pain Management

Pathology (Contract Service)

Physician

Psychiatry

Rehabilitation

Renal Dialysis

Urology

MEDICAL ANCILLARY:

Aboriginal Liaison

Audiology

Dental Clinic

Dietetics

Health Information

Occupational Therapy

Orthotics

Pharmacy

Physiotherapy

Podiatry

Sexual Assault Counselling

Social Work

Speech Pathology

NURSING:

Antenatal Education

Asthma Education

Breast Care Nursing

Cancer Support

Cardiac Rehabilitation

Continence Advice

Diabetes Education

Discharge Planning

District Nursing Service

Domiciliary Midwifery Care

Drug & Alcohol Withdrawal

Education Centre

Hospital in the Home

Immunisation Service

Infection Control

Lactation Counselling

Living with Cancer

Lymphoedema Service

Maternity Enhancement Service

Nursing Home

Home Oxygen

Palliative Care

Pharmacy Support

Post Acute Care

Rehabilitation

Respite Care

Sterile Supply

Stomal Therapy

Postgraduate Nurse Training

OTHER:

Engineering

Environmental Services

Equipment Borrowing Service

Food Services Department

General Administration Clerical,

Accounting & Payroll

Hospital Library

Safety & Security

Supply

Personal Laundry Service for

in patients/residents

Prescribed Waste Removal

Primary Care Partnerships

Primary & Community Health

SERVICES FROM AND

WITH OTHER AGENCIES:

BreastScreen Victoria

- Breast screening

Glenelg Shire Council

- Maternal & Child Health Care

- Meals on Wheels

South West Aged Care

- Aged Care Assessment

South West Alliance of Rural Health

- Information Technology

South West Health Care

- Audiology

- Bio Medical Engineering

Western District Health Service

- Linen

SERVICES TO OTHER

AGENCIES:

Accounting Services

- Heywood Rural Health

Fuel Card

- Western Dist. Employment Access

Immunisation Service

Infection Control Advice

Occupational Therapy &

Speech Pathology

- Special Development School

- Dartmoor Bush Nursing Service

Payroll

- Lewis Court Hostel

Speech Pathology

- Kindergartens & Schools

Supply

- Various

Sterile Supply

- Various

Counselling

- Heywood Rural Health

STUDENT PLACEMENTS

Work Experience Placements

- Secondary School Students

(Victorian)

Clinical Placements

University of South Australia

Health science disciplines

Deakin University

Bachelor of Nursing

Bachelor of Midwifery

LaTrobe University

All health science disciplines

RMIT University

Health science disciplines

Flinders University

Bachelor of Nursing

Bachelor of Midwifery

Australian Catholic University (ACU)

Bachelor of Nursing

Bachelor of Midwifery

Victoria University

Health science disciplines

Monash University

Health science disciplines

Barwon Health

South West Institute of TAFE

Health science disciplines

TAFE SA

University of Ballarat TAFE Division

Health science disciplines

Charles Sturt University (NSW)

Health science disciplines

10 PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07


Portland District Health

Service Activity

Activity / Indicator

Number of inpatients – Hospital

Number of inpatients – Nursing Home

Number of inpatient days – Hospital

Number of inpatient days – Nursing Home

Daily Average (days – Hospital)

Daily Average (days – Nursing Home)

Average stay (days – Hospital)

Average stay (days – Nursing Home)

Number of beds available – Hospital

Number of beds available – Nursing Home

Accident and Emergency

Births

Dental clinic treatments

District Nurse visits

Hospital in the Home

Mammography screening

Meals on Wheels delivered

Meals served (total)

Operations performed

Physiotherapy treatments – inpatients

Ultrasound attendances

X-Ray – Inpatients

X-Ray – Outpatients

X-Ray – Examinations

Staffing

Number of Staff Employed

Number of Staff Employed (EFT)

Time Lost through WorkCare Claims (EFT)

Time Lost through Industrial Disputes (hours)

Sick Leave as % of Basic Salaries

Costs

Costs per Inpatient Day – Hospital

Costs per Inpatient Day – Nursing Home

Cost per Inpatient Treated – Hospital

Cost per Inpatient Treated – Nursing Home

Primary Care Statistics

Community Nursing

Counselling/Social Work

Dietetics

Family Planning – Direct Care

Family Planning – Health Promotion

Health Promotion

IHSHY Youth Worker – Direct Care

IHSHY Youth Worker – Health Promotion

Occupational Therapy

Physiotherapy

Speech Pathology

Women’s Health

HACC (Contact Hours)

Dietetics

Podiatry

Volunteer Co-ordinator

Planned Activity Groups

Community Health (Contact Hours)

Dietetics

Community Nursing

Counselling/Social Work

Occupational Therapy

Speech Pathology

2002/03

5420

62

17488

10803

47.9

29.6

3.2

174.2

69

30

9489

189

12

12900

26

823

17989

162289

2178

7250

2804

1411

12241

14668

314

219.91

4.8

0.00

4.2%

791

143

3086

26211

2003/04

5191

74

15294

10800

41.9

29.5

2.9

145.9

69

30

12192

142

285

10536

27

1019

18249

164638

2354

6895

2709

1303

12179

14249

348

241.23

4.2

160.0

4.2%

1033

171

3098

25054

5682

2578

910

5

15

28770

538

605

1093

642

1358

1352

288

431

2789

3961

1299

825

538

816

396

2004/05

4978

76

13761

10516

37.7

28.8

2.8

138.4

69

30

9635

133

312

10752

17

863

15896

152897

2143

6158

3154

1217

12602

14632

351

249.1

2.1

0.0

4.3%

1212

201

3616

26036

5801

2536

906

8

19

3415

1104

199

852

932

1109

1464

566

599

2126

4362

1218

333

342

1170

305

2005/06

4882

83

13015

10429

35.6

28.6

2.7

125.7

67

30

7236

101

734

10125

58

970

14538

183172

1847

6795

2881

1120

12547

14293

350

249.8

4.01

0.0

4.4%

1357

207

3616

26036

6095

2952

883

15

14

3550

945

545

1312

849

990

1334

541

385

3936

1724

1230

241

474

865

284

2006/07

4518

55

12730

10795

34.8

29.6

2.8

196.27

33

30

7188

151

761

9217

11

825

13573

184457

1557

6037

2431

1075

11835

14186

361

257.69

4.3

0.00

4.1%

1489

212

4149

41563

6400

2740

1033

83

46

3621

825

214

1508

1000

804

1571

541

385

3936

1724

1230

241

474

865

284

PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07 11


Portland District Health

Comparative Financial Analysis

Description

2005/06

$000’s

2006/07

$000’s

Total Expenses

Total Revenue

Operating Surplus/(Deficit)

26101

24636

(1465)

26999

26490

(509)

Retained Surplus as at 1 July 2006

Net Result for the Year

Transfer to Reserves

Accumulated Surplus to 30 June 2007

(2316)

(1465)

(3781)

(3781)

(509)

(1725)

(6015)

Total Assets

Total Liabilities

Net Asset

Asset Revaluation

Restricted Specific Purpose Reserve

Contributed Capital

Capital Contributed from the Victorian Government

Retained Earnings

Total Equity

31718

7639

24079

27860

(3781)

24079

46326

9254

37072

7867

1725

27860

5635

(6015)

37072

The information requirements listed

in the directions of the Minister for

Finance part 9.1.3 (iv) have been

prepared and are available to the

Minister, Members of Parliament and

the public on request.

* As a result of the amalgamation

between the Portland and District

Hospital and Portland and District

Community Health Centre on the

1 July 2003, there is no comparative

data for periods prior to this date.

12 PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07


Portland District Health

2006/07 Year in Review

Throughout the year, Portland District

Health has been a part of various significant

achievements and milestones. As we reflect

on the 2006/07 year, we take this opportunity

to highlight some of these achievements.

After months of planning, Portland District Health hosted both

Aged Care and ACHS surveyors in 2006. Experienced surveyors

spent their time evaluating the facility and determining the quality

of care provided by Portland District Health. Portland District

Health is extremely pleased to announce its accreditation success

in both surveys.

DAY PROCEDURE UNIT

With over 50% of surgeries completed as day stay procedures at

Portland District Health, the new purpose-built Day Procedure Unit

is due for completion in July 2007. The 8-bed unit is complete with

modern monitoring equipment ensuring safe and effective patient

care and because of its proximity to the operating theatres, provides

increased efficiencies with patient throughput.

RACS CONSTRUCTION

In 2005 the Victorian State Government announced funding for

the construction of a new residential aged care facility for Portland

District Health. Located on the hospital campus, residents and

their families, will enjoy “hotel-style” accommodation comprising

single and double rooms complete with individual ensuites, family

living areas, dining areas, activity areas, offices and a warm and

welcoming reception area. The facility, recently named Harbourside

Lodge, is nearing completion and along with the staff, residents and

their families, we eagerly await the opening of this modern

and spacious facility.

VIRTUAL VISITING

Virtual Visiting is an IT-based communication

tool introduced to improve the quality of life

for aged care residents through increased

contact with family and friends. Portland

District Health was included in the pilot

project conducted by Western District Health

Service which saw participation between

Kolor Lodge Penshurst and family members

living in Portland, earlier this year.

STAFF ACCOLADES

Staff throughout the organisation participated

in Australia’s Biggest Morning Tea raising

money for the Cancer Council Victoria

Portland Unit. Staff raised a total of

$144.25. $4,200 was raised from Portland

and surrounding areas and will be used for

continuing cancer research.

Nursing Division

Congratulations to Jan Whyte who

successfully completed her Graduate

Diploma in Peri-operative studies. Portland

District Health farewelled Jan in December

2006 when she relocated to Queensland to

be closer to her family.

At the 2006 Annual General Meeting,

Portland District Health awarded Joanne

Brewster and Brenda McCulloch jointly with

the Bert Wilmot Scholarship Award. The

scholarship is available annually to all staff

undertaking further study in support of their

role/profession at Portland District Health.

PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07 13


Joanne and Brenda, both Registered Division 1

nurses, successfully undertook further studies

in Critical Care Cardiac and ECG Interpretation

through Deakin University (Warrnambool

Campus). The completion of this further study

complements and enhances their existing

nursing skills and knowledge. Congratulations

to you both!

Debra Tozer has become an instructor for the

internationally recognised Intermediate Trauma

Life Support Course. Debra is required to travel

around Australia and New Zealand providing an

educational role.

Linzi Donlan, Nurse Unit Manager Accident and

Emergency has almost completed her Masters

in Advanced Nursing Practice. Linzi intends to

seek endorsement as a Nurse Practitioner in

Emergency Care at the start of 2008.

Congratulations also to Ros Jones, Infection

Control Practitioner/Environmental Services

Manager who has recently completed her

Masters in Advanced Practice of Infection

Control and Prevention.

Medical Services

For the third consecutive year, we congratulate

the Medical Imaging staff on achieving a

“Highly Recommended” status in the Australian

Achievers Awards. With a score of 93.43%

for customer satisfaction, the department is

committed to ensuring their customers are

always given their very best care.

Portland District Health welcomed Dr. Adebayo

Jolayemi, Specialist Anaesthetist from South

Africa and Mr. Rotimi Afolabi, Specialist General

Surgeon from Fiji. Both doctors were welcome

additions to the medical service and theatre

teams. At the time of publishing this report,

Mr. Afolabi ceased working with Portland District

Health. We wish him well for the future.

CORPORATE SERVICES AND COMMUNITY HEALTH

Healthy Heart Award Nomination

Towards a Healthy Heart is a structured primary prevention program developed

by Portland District Health to address the risk factors for heart disease in men,

with the aim of reducing the total risk factors for heart disease within the high-risk

age group of 30-60 years.

The program consists of:

• four risk factor assessments pre, post, six months and 12 months,

• 12 weeks of group education,

• weekly physical activity sessions at local sporting facilities and fitness

centres, and individualised health coaching (where necessary) to promote

behaviour change.

In May 2007, the Health Promotion Unit at Portland District Health was the

recipient of a Primary Health Care Award for Excellence and Innovation in Health

Promotion for this popular and very successful program. The program’s success

would not have been possible without the support from Portland YMCA, Portland

Physiotherapy Centre, St. John of God Pathology and of course the five workplaces

Portland Aluminium, Graincorp, Incitec Pivot, Port of Portland and the Glenelg

Shire Council.

50th Anniversary of Meals of Wheels

In October 2006, Portland Meals on Wheels celebrated their 50th anniversary.

More than 100 people gathered at the Portland Civic Hall to celebrate the service

which operates six days a week and is supported by more than 120 volunteers.

Meals on Wheels are delivered both locally and outside of Portland throughout the

Glenelg Shire. Mrs. Escalante, Meals on Wheels Co-ordinator said that this service

not only provides meals to a broad range of people but also provides much needed

company and communication.

Apprenticeships and Training

In November 2006 Emma Shultze commenced as apprentice chef and nine

staff completed their Certificate III in Hospitality (Operations) through the University

of Ballarat.

14 PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07


Simple, effective and

inexpensive measures

can be undertaken to

boost energy reduction.

Engineering Services

“PORTLAND DISTRICT HEALTH CARING FOR

THE HEALTH OF OUR ENVIRONMENT”

Simple, effective and inexpensive measures can be

undertaken to boost energy reduction. Some of the results

achieved by Portland District Health include:-

• Reduction in gas consumption by 36.31% - achieved through the

replacement of dated, conventional gas water heaters with power

flue models consuming 25% less fuel. Heating provided by

geothermal hydronic panels. Heating was previously supplied

from gas burners. Hydronic panels heated by “Raypak” gas

boiler originally commissioned to supply constant heat and call

for cooling whilst still supplying heat. This was corrected to a

normal opposing cycle on/cycle off setup resulting in significant

gas savings.

• Reduction in electricity consumption by 6000 kWh per month.

• Reduction in water usage of 1074 Kl between same period -

November to February.

• Reduction of water charges with the introduction of worm farms.

The savings of trade waste saw water charges drop from

category 3 to category 2 – a saving of $4,000 per annum.

• Reduction of geothermal use through double-glazing.

• Vehicle petrol usage - Trials concluded that premium

unleaded fuel was on average 5% more expensive to

purchase however the benefit was an increase in kilometres

per litre of an average 12%. Apart from a saving of $3,569

per annum, Portland District Health fleet vehicles release

fewer greenhouse emissions.

Small projects can produce significant

and effective savings.

RETIREMENTS

During the year, Portland District Health

farewelled the following staff through

retirement:-

MR. PAUL KIERCE,

Orthopaedic Surgeon, retired from Portland

District Health after 17 years.

DR. DAVID TAYLOR,

Specialist Physician, retired from private

practice and is now working as consultant

physician and providing ongoing supervision

of CMOs at Portland District Health.

MRS. DENISE ORME,

Registered Nurse Division 1, 10 years

MRS. ELEANOR McCARTHY,

After Hours Nursing Co-ordinator, 11 years

at Portland District Health

MRS. ILONA EICHLER,

Registered Nurse Division 1 – Seymour

Cundy Wing, 28 years

MRS. CAROL SOLLY,

Environmental Services, 26 years

MRS. CAROLE PIETSCHMANN,

Registered Nurse Division 1, 30 years

FAREWELLS

Portland District Health has continued

to identify other cost saving options

including the introduction of the Ozone

Laundry Support System.

Portland District Health farewelled

a number of staff. We would like to

thank these former staff members

for their loyal and dedicated service

and wish them every success for

the future.

PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07 15


Portland District Health

Staff Profiles

JENNY SUTTON

Allied Health Assistant

16 months service at

Portland District Health

KAREN MADDEN

Dental Therapist

10 months at Portland District Health

Jenny is responsible

for assisting clients

within the Community

Rehabilitation Program.

Assistance in the form

of client interventions vary under the direction of Allied

Health disciplines including physiotherapy, occupational

therapy, speech therapy, dietetics and podiatry.

Jenny is committed to delivering quality care and

assistance to the rehabilitation clients within the

community under the guidelines of Portland District Health.

Karen is a Dental Therapist with many

years of experience. Like Dentists,

she is required to be registered to

practice with the Dental Practice

Board of Victoria. A Dental Therapist

is able to provide examinations and

treatments for people aged between 0-18 years and 18-25 year olds

once they have had an initial examination with a Dentist. A Dental

Therapist provides treatment such as fillings, extraction of baby teeth,

x-rays and cleaning of teeth and other work as set out by the Dental

Board. A registered Dental Therapist may work in a private dental

practice, public hospital or community health setting.

Karen is looking forward to having a fully staffed dental clinic

providing a full range of dental services to all ages throughout the

community. Along with all our dental staff, Karen is aware that dental

treatment can often be a time of anxiety. The dental team aims to

ensure that each treatment is as relaxed as possible.

JACKI BARNETT

Occupational Therapist

2 years at Portland District Health

Jacki Barnett commenced in her position as a new Graduate. Her role includes overseeing the management of

the Occupational Therapy department as well as providing clinical services in Acute, Community, Community

Rehabilitation Program, Aged Care and Cardiac Rehabilitation Program. Some of her responsibilities include

home modification recommendations, equipment prescriptions, wheelchair/scooter/home access, splinting for

hands, activity of daily living (ADL), relaxation (stress management) and intervention strategies.

Jacki is also responsible for the supervision of students including work experience, student health professionals and graduate nurses.

Jacki’s work also involves liaising and co-ordinating with agencies outside Portland District Health including Community Options, Glenelg

Shire Council, aged care facilities, Archicentre, Department of Human Services and other occupational therapy departments within the region.

Jacki is instrumental in ensuring that her client’s occupational needs are met through the process of accessibility, program planning,

monitoring and evaluation and established client goals.

16 PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07


ALEX TRAHAR

Electrician

18 months at Portland District Health

SUE HONEYBUN

Personal Care Attendant

2 years at Portland District Health

Alex is employed as an Electrician

within the Engineering Services

division of Portland District Health.

His role is to maintain and improve

plant and equipment and provide

general electrical maintenance

throughout the facility and its campus locations. Alex’s tasks include

maintenance of lights and power outlets, test and tag equipment,

maintain and check emergency equipment and repair or arrange the

repair of electrical equipment including specialised equipment when

necessary. He is responsible for sourcing correct equipment within

identified budgets. This includes the identification of appropriate

suppliers.

Sue is a Personal Care Attendant

at Sea View House. In 2004, after

working for two years as a nurse,

Sue, her husband and their four

children left Zimbabwe, abandoning

property and savings, for a brighter

future in Australia. Sue completed her nursing training in Zimbabwe.

Sue enjoys working with the elderly residents at Sea View House

and has been made to feel very welcome not only in this position,

but also to Portland. She enjoys working in a friendly, relaxed and

welcoming environment.

Alex is part of a small and responsive team providing skilled trade

services to Portland District Health. He is focused on improving

cost savings through the reduction of energy. He is committed to

providing a quality service at all times.

STAFF SERVICE AWARDS

10 YEARS

20 YEARS

25 YEARS

30 YEARS

Shirley Trinnick

Bernadette Fitzgerald

Gillian Guy

Dianne Jackson

Alison Mason

Jacinta Watson

Julienne Stone

Loren Drought

15 YEARS

Cathy Radford

Jenny Matthews

Pat Cain

Joan Cannon

Wendy Duncan

Alison Brian

Ivor Graney

Lorraine Hiscock

Margaret Wills

Miffy Maddox

Jennifer Moore

Judith Noske

Marlene Duffy

Shiralee Radley

Helen Anderson

Beverley Baker

Diane Duckmanton

Charlotte Murphy

Janine McIvor

Jennifer Smith

Christine Black

Janine Duckmanton

Leanne Stuchbery

35 YEARS

Hazel Antony

40 YEARS

Marlene Duffy

PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07 17


Portland District Health

Nursing

37 BEDS AVAILABLE

7,188 A&E PRESENTATIONS

151 BIRTHS

(30% rise from 2005/06)

9,217 DISTRICT NURSING

VISITS

11 HOSPITAL IN

THE HOME

70,000 SURGICAL ITEMS

PROCESSED

THROUGH CSSD

ACUTE INPATIENT CARE

Over the past year, acute service delivery has seen an increase in births,

palliative and chronic health conditions with a reduction in surgical cases noted.

In January 2006 five

new graduate nurses

commenced employment

at Portland District

Health. These nurses

work within a planned

rotation program

through various nursing

departments as they

consolidate their training.

The emphasis in rural health has been on multi-skilling to meet the challenges

of providing medical, surgical, rehabilitation, paediatric, palliative, aged and

obstetric services within one clinical department. The increase in aged patients

requiring care in Victorian acute hospitals has become evident, particularly

in Portland. The nursing staff has responded to this demand through the

development of educational workshops relating to aged care health issues.

The nursing team has focused on preventative health care in the form of

pressure injury, risk screening and falls prevention systems to ensure best

patient outcomes.

MATERNITY SERVICES

Over the past 12 months, Portland District Health has seen a 30% increase in

women choosing to birth here.

In addition to increasing continuity for women, the Maternity Model of Care

aims to attract and retain midwifery staff and to encourage the development of

increased midwifery skills to help ensure the continuity of maternity services

at Portland District Health. The maternity service operates within and from the

Acute Ward.

18 PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07


Portland District Health provides 33 acute inpatient beds, 30 residential aged

care beds (high-care), two operating theatres with provision for an additional

theatre and an 8-bed purpose-built day procedure unit. The division also

incorporates Central Sterilising Supply Department, Pre-admission Clinic,

Infection Control, District Nursing, Accident and Emergency, Dialysis, Post

Acute Care/Discharge Planning, After Hours Nursing Co-ordination, Professional

Development/Education Unit and Quality Co-ordination.

Births at Portland District Health increased by

30% from 101 in 2005/06 to 151 in 2006/07.

The goal of the service is to provide quality care and support to

mothers and their families during pregnancy, childbirth and the early

post natal period. We work in collaboration with visiting specialist

obstetricians to provide backup and follow-on care for women of

higher risk who plan to give birth at other health facilities.

DIALYSIS

The Unit is available three days per week. The Dialysis Unit receives

support from Ray Steenveld at Royal Melbourne Hospital/North West

Dialysis service through the training of new staff and competency

assessments. A certificate in Renal Dialysis by distance education

is a basic requirement of all dialysis staff and supports best practice

at all times.

POST ACUTE CARE (PAC)/DISCHARGE PLANNING

The Post Acute Care program has enjoyed another busy year. As part

of the Wannon PAC program, 336 clients accessed services through

the program. This regional program enables clients with complex

discharge needs to be discharged safely from the hospital back into

the Portland community.

Discharge Planning continues to be a busy role at Portland

District Health. Discharge Planning has taken part in a statewide

push by Aged Care Assessment Services (ACAS) to standardise

processes for referrals to their service. We have also been

developing discharge planning program folders and information

to nursing home type patients to ensure timely and correct

information. (This has been especially important due to high level

and respite bed closures in the Portland area.)

A reduced number of residential aged care beds in Portland

has seen an increase in aged care patients awaiting long term

placement within the Acute Unit.

294 clients were assessed for discharge to home during

the year, a reduction on past years. Discharge Planning time

is generally consumed with managing more complex patient

discharge planning needs.

Division 1 nurses Lesa Rees and Sharon

Olsen completed studies in Dialysis.

PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07 19


OPERATING SUITE

The Operating Suite has undergone a

significant facelift. The patient reception

area has been redeveloped into a two

bay area to improve patient flow. We are

looking forward to the opening of our newly

renovated endoscopy procedure room.

The Department of Human Services

funded the purchase of an anaesthetic

machine to equip the new endoscopy

procedure room. The Post Anaesthetic

Care Unit was reorganised and new

monitors purchased and installed.

The new Day Procedure Unit will

accommodate eight patients and is nearing

completion (anticipated opening June 2007).

More than 50% of surgical procedures at

Portland District Health are completed as

day stay procedures. This unit will increase

efficiency in patient throughput and provide

modern monitoring equipment to ensure

safe, high quality patient care. The purchase

of new equipment has enabled the complete

fit-out of the new unit. Two new operating

tables were bought with funding generously

donated by Mr. Geoff Handbury. These

tables are electronically operated and have

resolved occupational health and safety

issues within the department.

The Pre-admission Clinic ensures a smooth

and uneventful process when an elective

surgical procedure is required. Risk analysis

is undertaken; pre-operative tests and postoperative

support services are arranged

through the clinic.

The Central Sterilising Services Department (CSSD) has implemented

many changes to ensure compliance with Australian Sterilising Standards.

Validation for CSSD according to Standards ASNZ 4187 was successfully

obtained and will be undertaken on an annual basis. In excess of 70,000

surgical items have been processed through the CSSD department in the

past year.

2007/08 will be a year of consolidation of new practices and procedures

and further developing quality service provision to our community.

ACCIDENT AND EMERGENCY DEPARTMENT

The Accident and Emergency Department at Portland continues to offer

a 24-hour service to the community.

The Accident and Emergency Department attendances for 2006-2007 are

similar to the previous years, with 7,188 patients attending for emergency

care and 1,775 attending for procedural work. We have seen a small rise in

the more serious presentations with Category 2 and 3 patients increasing.

The Accident and Emergency Department provides additional services,

including 24-hour harm-minimisation program (needle exchange) and the

use of facilities to support local GPs who perform minor procedures within

the department.

All Accident and Emergency staff have been educated in advanced wound

management including suturing of minor wounds. Staff are currently being

trained on casting procedures. All staff have completed Advanced Life

Support education and are working towards their certification.

The emergency nurses work closely with the new Career Medical Officers.

Portland District Health participated in the

Department of Human Services Quality

Indicators Project for Residential Aged Care.

20 PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07


We continue to provide student placements for regional universities,

enabling our future clinicians the ability to develop their skills locally.

PROFESSIONAL DEVELOPMENT AND NURSING EDUCATION

Three 2006 graduates have successfully completed their year and

have found ongoing employment. We welcomed five graduate

nurses who commenced their graduate year in January 2007 and

are proving to be an asset to our hospital.

One nurse successfully completed the re-entry program and attained

her registration.

Compulsory training day has been reviewed and updated to meet

the needs of EQuIP 4 mandatory education. We have been exploring

opportunities to advance to the next level of education through the

use of online education and competencies programs. We hope

these competencies will be further developed within the South West

Alliance of Rural Health (SWARH) network over the coming months.

We continue to provide student placements for regional universities,

enabling our future clinicians the ability to develop their skills locally.

The Careers Expo provides information to potential clinicians at the

local schools regarding the health industry.

Over the past year, there has been exciting changes to the Division

2 scope of practice. This has seen the development of advanced

education programs in Medication Management and Accident and

Emergency care. These advanced skills undertaken by a large group

of the Portland District Health Division 2 nurses will benefit both the

health service and the Portland community.

A Continuing Professional Development (CPD) program at Portland

District Health is being developed. The CPD program will give staff

a record of their continuing professional development and allow

management to monitor their performance.

AGED RESIDENTIAL CARE

The excellent team of specialist aged care staff provide wonderful

care to the residents of the Seymour Cundy Wing and support

to their families. During the Accreditation process, special

mention was made of the nutrition program in place as a result

of a collaborative approach from the dietetics, food services and

nursing team.

Over the past two years the residents of the Seymour Cundy

Wing have watched with interest the building of the new residential

care facility - Harbourside Lodge. It is anticipated that

the current residents will move into their newly completed facility

in late October 2007.

In the past 12 months, the nursing home staff have participated

in the implementation of the new care plan program ‘Lee Total

Care’. This program enables the development of individual care

plans through an electronic system.

Resident lifestyle is recognised as paramount to improving quality

of life. Activity support hours continue to reflect this need, through

the provision of activities and social entertainment seven days

per week.

DISTRICT NURSING

This friendly team of nurses provide clinical support to clients

within the Portland community enabling people to remain within

their home or alternatively to be discharged from hospital and

receive care from competent nursing staff.

The District Nursing Service also provides local palliative care

support. This service offers health care and emotional support

to patients living with a life threatening illness. A Bereavement

Support Program has been developed through the District Nursing

Service. Four staff have completed Advanced Care Planning

education to enable them to consult with the community and

clients in the development of terminal care plans.

PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07 21


AFTER HOURS NURSING CO-ORDINATORS

As the senior person on duty they are responsible for providing leadership

and direction to patient care and facility management after hours. A large

portion of their role is supporting staff and assisting all units to provide

safe patient care. Staff replacement after hours can be time consuming,

however this team of creative nurses manage to rearrange or ensure

appropriately skilled staffing is available for the provision of safe and

appropriate care.

Throughout the

year we saw the

continuation of

various building

projects including a

purpose-built 8-bed

day procedure unit

and Harbourside

Lodge, a 30-bed

high-care residential

aged care facility.

The After Hours Co-ordinators also have various management portfolios.

NURSING ADMINISTRATION

The nursing administration team provides daily management of staff and

human resource-related matters, rostering and leave management, patient

care management, complaints, quality and project development, reporting,

documentation development and maintenance, record and database

management, contract development and maintenance, work experience

and student facilitation (pre and post-graduate). Maureen Patterson,

Assistant Director of Nursing and myself are ably supported by Brigietta

Herbertson, Executive Assistant.

KATHYRN EYRE

Director of Nursing

22 PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07


Portland District Health

thanks all our hard-working

staff for their contribution

throughout the year.

STAFF BY GENDER AND EMPLOYMENT

Male

Numbers

Category of Staff

2005/06

Full-time

20

Part-time

11

Female

Numbers

2005/06

72

200

Male

Numbers

2006/07

22

13

Female

Numbers

2006/07

69

233

Casual

1

45

4

59

TOTALS

32

317

39

361

STAFF NUMBERS IN EQUIVALENT FULL-TIME

Category of Staff

2002/03

2003/04

2004/05

2005/06

2006/07

Nursing

123.29

134.34

132.50

129.85

123.9

Administration and Clerical

22.5

21.79

20.74

20.28

20.66

Medical and Allied Health

24.36

26.79

40.57

45.20

50.10

Other Support Services

49.76

58.31

55.51

40.95

48.95

Supported Residential Services

7.6

13.40

13.67

13.67

14.08

TOTAL

227.51

254.63

262.99

249.95

257.69

Staff from across the organisation celebrated International Nurses Day

with a staff dinner embracing international cuisine recognising the many

different cultures within Portland District Health.

PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07 23


Portland District Health

Medical Services

4,518 INPATIENT ADMISSIONS

NIL

ELECTIVE SURGERY

WAIT LIST

1,557 SURGERIES

PERFORMED

615 SURGICAL HOURS

1,775 PROCEDURES

THROUGH A&E

6,037 PHYSIOTHERAPY

TREATMENTS

14,186 X-RAY EXAMINATIONS

13,000 X-RAY ATTENDANCES

39 FOI REQUESTS

Portland District Health provides

a range of appropriately qualified

medical and allied services to the

community including hospital-based

Career Medical Officers (CMOs),

Specialist Anaesthetist and Specialist

Surgeon; Visiting Medical Officers

(VMOs) including specialist services

in surgery, physicians, obstetrics and

gynaecology, paediatrics, dental,

psychology, ear, nose and throat,

urology, psychiatry and dermatology.

The health service also provides

hospital-based pharmacy, medical

imaging and pathology services

(St. John of God Pathology).

During 2006/07, after a series of reports and recommendations, Portland

District Health undertook the well publicised and difficult national and

international recruitment process for hospital and community-based medical

staff. With a widely reported shortage of skilled medical practitioners,

particularly those willing to work rurally, the Department of Human Services

provided vital funding assistance to enable this recruitment process and

provide for the retention of medical services within the Portland community.

Following the commencement of Tristar which supported the complete

cover of Accident and Emergency Department, Portland District Health

announced the recruitment of two Career Medical Officers (hospital-based)

– Dr. Annerie Hattingh and Dr. Carina Joubert both from South Africa.

Dr. Adebayo Jolayemi, Specialist Anaesthetist, also from South Africa and

Mr. Rotimi Afolabi, Specialist General Surgeon, from Fiji joined the health

service soon after.

Endoscopy sessions at Portland District Health also commenced with

Drs. Charnley, Nagarajah and Morphett from the Warrnambool Physicians

Group visiting weekly.

Portland District Health farewelled Dr. Wladek Smolilo, GP/Anaesthetist and

GP Obstetrician following his return to Bega, New South Wales.

24 PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07


Mr. Paul Kierce, Orthopaedic Surgeon, announced his retirement

along with Dr. David Taylor, Specialist Physician. Dr. Taylor, who

retired from private practice, continues to provide consultant

physician services to Portland District Health. We would like to

acknowledge his ongoing support and commitment including

the provision of on-going training, supervision and support of

our Career Medical Officers.

Dr. Meindert van der Veer has continued to direct the Medical

Services division. The Medical Services division has participated in

a number of clinical case reviews. These reviews are conducted as

the need arises. They are instrumental to the provision of ongoing

quality patient care. Outcomes identified from clinical case reviews

assist in the improvement of systems which support the overall

provision of quality patient care.

PHARMACY

National Medication Chart

June 2006 saw the introduction of the National Medication Chart (for

prescribing of medications by the doctor), in-line with other hospitals

throughout Australia.

Subsequent to the arrival of the new chart, pharmacists at Portland

District Health reviewed all in-patient medication charts to reduce the

possibility of medication errors.

Improved Discharge Medication Charts and Counselling to Patients

Patients’ home medications, own medication lists, GP lists and

community pharmacy sources may be accessed to compile an

accurate medication discharge history, which can be utilised by the

patient, patient’s GP (in order to update their records) and for visits to

a specialist by the patient. A copy of the Discharge Medication Chart

is given to the patient, the patient’s general practitioner and retained

in the patient’s medical record at Portland District Health.

Outcomes identified from clinical

case reviews assist in the

improvement of systems which

support the overall provision of

good quality patient care.

Improved Supply of Medications

A continuous supply of medication is ensured by weekly checking of

patients’ bedside medication drawers and dispensing further supplies

if necessary.

Established stock levels (Imprest) for Drugs of Addiction and

automatic top up to Acute, Theatre and Accident and Emergency

Departments has also commenced. Forms for the placement of

critical, low use, high cost medications including immunoglobulins

have been produced along with improved records, storage and

accountability of vaccines. There is also an increased vigilance

and monitoring of medication expiry dates. Portland District

Health records drugs held on site in the Register of Lifesaving and

Emergency Drug Register (Victoria and south-east South Australia).

As a result of staff changes, the functions of the department were

reviewed and streamlined.

A pharmacist, prior to discharge, gives verbal advice (counselling) on

these home medications to patients, family and/or carers.

PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07 25


MEDICAL IMAGING

In 2007 the Medical Imaging department

welcomed graduate Jo Robertson who

will work within the department until

2008. The Medical Imaging team also

welcomed Trevor Walmsley and Louis

Adriaanse, both Radiographers working

with the existing team in part-time positions.

The department has purchased a new

suite of general/casualty radiography

equipment which is expected to be

installed late in 2007. This equipment

includes a high-low x-ray table to

facilitate easier patient transfer, automatic

exposure and a high powered generator.

A computed radiography system will

also be introduced and this will enhance

the new radiography equipment, with

images being digitally transmitted to

the Radiologist for reporting, together

with digital image storage. The addition

of a CD burner will mean that in most

instances, patients will be given a CD of

their images, rather than films. Radiology

reports are now issued electronically in

the majority of cases.

The department has purchased a new

suite of general/casualty radiography

equipment which is expected to be

installed late in 2007.

PERFORMANCE

During the year 13,000 patients attended, and 14,200 examinations were

conducted by the Medical Imaging team.

BreastScreen targets were met once again, with 825 women undergoing

screening mammography within the catchment area.

OUTLOOK

With the introduction of computed radiography and digital image storage, the

department will have taken the first steps towards a filmless system.

A computed radiography

system will also be introduced

and this will enhance the new

radiography equipment.

26 PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07


Portland District Health

Community Health

and Corporate Services

5,534 HACC DIRECT

CONTACT HOURS

2,740 COUNSELLING AND

SUPPORT CONTACT

HOURS

825 YOUTH WORKER

DIRECT CONTACTS

184,457 MEALS SERVED

13,573 MEALS ON WHEELS

DELIVERED

98.12 EFT

761 DENTAL TREATMENTS

Portland District

Health aims to work

with individuals,

community groups,

schools and

workplaces to

enhance individual

health and wellbeing

by providing health

promotion programs

to our community.

COMMUNITY HEALTH

Community Health and Primary Care services are seen as an area of future growth for

Portland District Health. These services include community nursing, counselling, dental

clinic, drug and alcohol, health promotion, maternal and child health, podiatry, speech

pathology, occupational therapy, dietetics, physiotherapy and diabetes education.

Moving beyond the traditional treatment of illness and injury and with an emphasis

on health promotion, efforts are centred primarily on the social, physical, economic

and political factors that affect health, and include such activities as the promotion of

physical fitness, healthy living and good nutrition.

Portland District Health aims to work with individuals, community groups, schools

and workplaces to enhance individual health and wellbeing by providing health

promotion programs to our community.

Over the past 12 months, services within the division have been integrated and various

initiatives implemented to facilitate improved service delivery.

Portland District Health employed a second speech pathologist to assist with the large

workload and waiting list in Speech Pathology. A full-time Occupational Therapist,

based in Portland was also recruited during the year.

The demands of chronic illness management such as diabetes has seen the

implementation of a project to enhance self-management by diabetic clients.

Public dentistry continued to be an area where Portland District Health has struggled

to secure staff, resulting in longer than usual waiting lists. An innovative solution to the

dental recruiting issue saw the employment of four visiting dentists to provide services

on a rotational basis. The Dental Clinic has also secured the services of dental

therapist Karen Madden, who is credentialed to provide a range of services to children

and young adults.

PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07 27


GLENELG SOUTHERN GRAMPIANS

DRUG TREATMENT SERVICE

Service delivery across the Glenelg

and Southern Grampians Shires has

become more diverse as a result of

the successful integrated partnerships

with the acute, allied, and primary care

services within Portland District Health,

and with the wider health and welfare

services in Glenelg and Southern

Grampians Shires.

With the exception of the Diversion

Programs (brokered by the Criminal

Justice Service), we have met all

targets set by the funding agencies.

We are pleased to participate in

effective partnerships, in particular our

indigenous community partners and

likewise with the Portland and Hamilton

branch of South West Psychiatric

Services. These partnerships have

enhanced the outcomes for our

respective clients.

Our particular focus for the coming

year will be increased consumer input

into improving and consolidating our

service delivery.

COUNSELLING AND SUPPORT

The Counselling and Support Team offers counselling and group work to the

community including the inception of the Alzheimer’s Carer Support Group.

Other activities include facilitation of “Vulnerable Babies and Children Project”

in conjunction with Child First and Primary Care Partnerships. Advanced Care

Planning is a priority for Portland District Health. In collaboration with the

YMCA, development of the “Start from Scratch” program encourages physical

activity for older women.

Our IHSHY worker provides counselling to young people who are homeless

or at risk of homelessness. The program provides support and professional

development to primary and secondary schools.

Counselling and support services are provided to Heywood Rural Health and to

the Acute and Drug and Alcohol services. The team continues to support the

Needle and Syringe program at Otway Street.

In the coming year we will look to promote a greater awareness of our

Counselling and Support Team, including an increase in programs and services.

In the coming year we will look

to promote a greater awareness

of our Counselling and Support

Team, including an increase in

programs and services.

28 PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07


The Occupational Therapy department

moved to a new location and provided

improved treatment facilities and services.

PHYSIOTHERAPY DEPARTMENT

Highlights of the past year have included the hospital

rehabilitation program with an extension into community

partnering with the YMCA to help improve patient outcomes

after they leave our programs.

OCCUPATIONAL THERAPY DEPARTMENT

The Occupational Therapy department moved to a new location

and provided improved treatment facilities and services.

Quality improvement activities included the development of

a Personal Activities of Daily Living (PADL) assessment and

summary form, improved systems for the ordering and supply of

custom-made bannister rails for community clients, introduction

of a paediatric information flyer and in conjunction with Speech

Pathology, recommencement of the SPOT program which is

aimed at developing a child’s speech and communication,

gross motor skills, fine motor and social skills.

The Occupational Therapy Department will continue to monitor,

develop and evaluate services provided to the acute and

community sector including the community rehabilitation program

which is proving to be a successful concept.

The outpatients department has moved from 14 Otway Street

to 143 Percy Street, which is an improved facility and closer to

the hospital.

DIETETICS DEPARTMENT

Throughout the year inpatient, rehabilitation, dialysis and home

visit services continued and the department provided nutrition

support services to the Royal Children’s Hospital Outreach

Clinic for children with Type 1 Diabetes.

Outpatient demand rose sharply again in 2006-2007,

necessitating changes to the outpatient triaging system. As

a result, group programs for Diabetes Education, Cholesterol

Management and Weight Management were set up to address

clients’ needs in a timelier manner.

The Malnutrition Screening Tool (MST) was introduced as a

screening tool for all acute admissions.

Best Practice Guidelines were introduced for management of

renal, oncology, Type 2 Diabetes, weight management and

dysphagia clients.

As demand for services

is forecast to rise, we will

work towards greater time

efficiencies where possible.

PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07 29


We will continue to offer

a high quality podiatry

service to the community

of Portland and District,

particularly those in the

highest risk categories.

PODIATRY

Key Points

The relocation of the service as a result of

the residential aged care construction, has

enabled the podiatry department to have an

additional clinic.

New waiting list admission and processing

procedures have seen an increase in

efficiency of the department, allowing timely

assessment and review of clients.

Identified areas of need within our region are

predominately to do with children, low risk (but

requiring care), acute and aged care.

We will continue to offer a high quality

podiatry service to the community of Portland

and District, particularly those in the highest

risk categories.

SOCIAL MONITORING AND SUPPORT

Social Monitoring and Support services include Telecare, Telelink, Community

Transport, Portland and Narradarra Old Timers Groups and Library Bus

undertaken with support from volunteers within the community.

In the coming year the service will aim to increase the number of Telecare

clients and be involved with bringing together all Portland District Health

volunteer co-ordinators, volunteer information and recognition of volunteers.

MATERNAL AND CHILD HEALTH

In April, Portland District Health was successful in securing renewal of the

contract for the provision of Maternal and Child Health services for the Glenelg

Shire Council. Extra effort will be given to meeting the needs of clients with the

enhanced home visiting target group.

PRIMARY CARE NURSING

This department has introduced several new services aimed at providing

improved quality of life. These services include home-based sleep studies,

bladder scanning equipment, enhanced breast care nursing for those with

breast cancer and Active Script.

The community health nurses have been actively involved with the award

winning “Towards a Healthy Heart” program.

We will continue to offer a high

quality podiatry service to the

community of Portland and

District, particularly those in the

highest risk categories.

30 PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07


Women’s Health

The role of the Women’s Health Resource Worker is to work with

women and the community to improve the health of women. Over

the past 12 months, emphasis has been placed on working with the

local indigenous communities through Winda Mara Corporation and

Dhauwurd-Wurrung Elderly Citizens centre. Health education has

been a major focus for the role in 2006/2007.

HEALTH PROMOTION UNIT

The emphasis of health promotion is to provide sustainable models,

interventions and resources to promote health and wellbeing

throughout the Glenelg Shire.

During the year, the unit completed the 2006/2009 Health Promotion

Management Plan for Portland in conjunction with DHS, the

Glenelg Shire Council, local organisations, key stakeholders and the

community.

Three main priority health areas were identified:

• chronic illness

• mental health and wellbeing

• physical activity and nutrition

The focus for this plan was identified as schools, workplaces and the

community with emphasis placed on the development and delivery

sustainable models.

Other programs have included:-

Smiles4Miles - a new program “Smiles4Miles” children’s health

promotion initiative was established in conjunction with Dental Health

Victoria. This has involved six kindergartens.

Disability Health Promotion Framework

This pilot program has involved working with the disability agencies

to develop and implement a health promotion plan and up skilling

staff around health promotion. Being a first for health promotion and

disability, the pilot program was presented at the ‘Participate in Health

Conference’ in February this year.

Mental Health First Aid Training Program

With the increasing need for mental health promotion, the Southern

Grampians and Glenelg Primary Care Partnership engaged Portland

District Health and Aspire to co-facilitate the Mental Health First Aid

course across the two shires.

BreastScreen Community Education

The focus has been on providing community support and promotion

around increasing awareness of, access to, and uptake of free breast

screening for women aged 50-69.

Portland Healthy Schools Network

The Portland Healthy Schools Network aims to enable and empower

the Portland and district school community to promote healthy eating

and physical activity in primary school aged children.

The current focus of the Network is the co-ordination and promotion

of the Kids - ‘Go for your Life’ program in local primary schools.

‘The Well’

‘The Well’ is a quarterly newsletter aimed at keeping teachers,

parents and carers up to date about two children’s health projects -

Kids - ‘Go for your Life’ and Smiles4Miles. “The Well” has received

sponsorship from Portland Aluminium and Safeway, allowing

distribution throughout the Portland District.

Towards a Healthy Heart

This program centres on the longer term risk of cardiovascular

disease in men. The results have shown that the program not only

reduces cholesterol, blood pressure, weight and waist measurements

but also promotes healthy eating and physical activity uptake.

In May of this year, Portland District Health celebrated success by

taking out the prestigious ‘Primary Healthcare Network Award for

Innovation and Excellence in Health Promotion’ for the ‘Towards a

Healthy Heart’ program.

Workplace Wellbeing Program

The Workplace Wellbeing Program is a new health promotion

initiative that aims to combine mental health initiatives across

Portland District Health under one succinct program. The Workplace

Wellbeing Program is currently in its early developmental stage, with

piloting to occur early in 2008.

The unit has identified several key objectives including healthy

heart model for cardiovascular disease risk reduction in men aged

30 to 60; the development of a community consultation strategy,

completion of an evaluation plan for the 2006/2009 Health Promotion

Management Plan and the continued development of a quality

improvement program for health promotion and health programs.

PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07 31


We will continue to improve staff

knowledge through regular in-services.

SUPPORTED RESIDENTIAL SERVICE

Sea View House

Located within the hospital grounds, Sea

View House provides supported residential

accommodation for up to 58 residents.

This facility offers an excellent service to

its residents. It is well served by an active

and interested residents’ committee and

committed hospital staff.

CORPORATE SERVICES

Corporate services including catering,

engineering, environmental services and

safety departments, support the patient,

resident and client services and activities

delivered by Portland District Health.

FOOD SERVICES

The department provides nutritious, freshlycooked

meals to the needs of our clientele.

We will continue to improve staff knowledge

through regular in-services and all staff

attending the Compulsory Training Day.

We will also continue the ongoing financial

review of the department to absorb the 33%

increase in the cost of food due to drought,

fires and floods.

The Food Services Department receives

many favourable comments from our

inpatients and residents of Sea View House

and Seymour Cundy Wing.

ENGINEERING

Checks and repairs continue regularly at specified intervals and quarterly

inspections by Stokes Consulting (Registered Building Surveyors) take place to

ensure ongoing Form 10 Essential Services compliance. This is a mandatory

requirement.

Energy Reduction

Last year we were nominated for achievements in energy reduction. Although

we did not receive an award, the Department of Human Services, in recognition,

awarded a grant of $28,000 to install an Ozone Laundry System. This system

has reduced energy use and provided other gains in the Laundry.

Major Project

The construction of the new aged care facility - Harbourside Lodge is nearing

completion with an expected August 2007 handover date. This new facility will

be home to the 30 residents who currently reside in Seymour Cundy Wing with

an anticipated occupancy occurring in October 2007. One of the earliest tasks

encountered with the major project was site preparation and site clearing which

required the relocation of the Health Services Centre building.

INFECTION CONTROL/ENVIRONMENTAL SERVICES

The Infection Control/Environmental Services Department provides a high

quality service, maintaining excellent standards and working effectively within

budget constraints despite the increase in services required of the department.

Hand Hygiene

Avagard, an alcohol hand rub was successfully introduced throughout the

facility. This was a Victorian Quality Council initiative for the prevention and

transmission of hospital-acquired infections and brings Portland District Health

in line with best practice.

Environmental Services maintained impressively clean facilities which are often

remarked upon by our visitors.

FUTURE

All areas of the division are reviewing costs and productivity to ensure that

services are matched appropriately with consumer requirements. I would like

to express my thanks to all staff within the division for their efforts, in particular,

my thanks to all department heads.

PHIL HYNES

Director of Community Health and Corporate Services

32 PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07


Portland District Health

Finance Department

PERFORMANCE – BALANCED SCORECARD

Activity continued to reduce during the year in comparison

with the previous year. The number of inpatients treated

reduced by 364 in comparison with last year but this reduction

is in excess of 900 if you compare throughput in 2002/2003.

WIES were also down in comparison with prior years. This

year we achieved a total of 2442 WIES, which was 775 lower

than our adjusted target and 217 lower than last years actual.

This paints a picture we are attempting to reverse. Our hospital

service is under-utilised and with reduced activity in a funding

system relying on activity increases, we need support from

stakeholders to change the way we are currently operating to

achieve favourable results.

Currently we are budgeting for a $1m deficit, which is

predominately due to the implementation of new structures

and strategies. However, if activity levels remain consistent

with the past four years, we will possibly have a deficit in

the order of $2m plus.

The outcome of a clinical services review currently underway

will hopefully pave the way for our future. To date, due to low

activity levels in our core business and with high fixed costs,

over the years we have successfully argued for cash top up

assistance, equity injections and recall exemptions. This has

enabled Portland District Health to develop services outside our

core business such as primary health and aged care services.

A realignment of service provision will occur after the clinical

services review has been completed and this may lead to a

significant service delivery change.

It is exciting to announce a bequest

of $1,725,000. This bequest has

special conditions specifying its use.

The Board of Management will

ensure the wishes of the executors

are met in line with the Estate of

the Late Glenys Simmons.

PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07 33


ICT SYSTEMS DEPARTMENT

The provision of support for key initiatives such as improved wireless

systems, introduction of encrypted emails for security and remote

webmail access have continued to ensure reliable ICT operations.

Ongoing development of a number of projects that will culminate in a

better service to the public, such as the Slit Lamp installation which

allows the operator to examine an eye injury at Portland District

Health, then connect with the Eye and Ear Hospital.

The installation of a Network Core Upgrade has allowed an increase

in the number of emergency telephone units available, and has

allowed the installation of a high speed connection to the new aged

care facility.

Further development of a trial installation of the BEST system has

been undertaken, and this system will deliver core medical services,

patient call assistance, telephony and entertainment to the patient

bedside.

OUTLOOK

We are attempting to align our workforce more closely to workloads

as well as attempting to generate more activity. This is a fine balance

in which we have been unsuccessful to date. Full concentration on

reducing our workforce to align to workload is now underway.

The new financial year is set to be a difficult one with forecasts

mentioned previously tracking towards $2m if identified initiatives

do not work. We are hopeful that this will not be the case, and look

forward to activity levels increasing by at least 20% this year. To

achieve this, Portland District Health needs all stakeholders on side.

WAYNE ARMISTEAD

Director of Finance

The management of security of our network has been integral to

the avoidance of downtime as a result of computer virus and Trojan

attacks. It is also pleasing to see other hospital staff members taking

a more active role in developing their own computer skills, to assist

themselves, and others in their respective area, to gain advantages

through ICT.

34 PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07


Portland District Health

2006/07 Quality Program

KEY ACHIEVEMENTS OVER THE YEAR HAVE BEEN:-

Medications

Implementation of the National Medication Chart with the aim of

reducing documentation errors associated with medication management.

There has been a 50.8% reduction in medication incidents from the

previous 12 months with no adverse outcomes occurring from the

incidents.

Falls

A Falls Risk Assessment form was developed and implemented from

which a plan of care is then derived. Sea View House formalised a Falls

Risk Assessment program to proactively manage residents at risk.

Wound Care

The Wound Committee facilitated a successful trial of Mepilex dressings

resulting in improved outcomes for patients and reduced frequency for

dressing changes.

Pressure Ulcer Prevention

92% of acute staff and 100% of aged care staff have completed the

Victorian Quality Council online learning package and competency

on recognition of the stages of pressure ulcer development and the

appropriate treatment to minimise further development. Literature has

been developed for patient education.

Blood and Blood Products

The procedure and chart for blood transfusion was reviewed with a

specific form for consent and management of blood product infusions

introduced. Patient education material has been sourced and is being

used to explain the risks and use of blood products.

Nutrition

A multidisciplinary group developed a nutritional screening tool for

acute patients to identify and appropriately refer those at risk, resulting

in timelier referral for assessment and education. The Dietetics

department developed a triage and referral pathway to manage the

increased demand for service. This has resulted in an increase in group

work to provide access for more clients.

Risk Management Program

A standardised risk-rating matrix was applied to all risk management

plans to ensure a consistent approach. The Victorian Quality Council

education module “Introduction to Safety and Quality Principles” has

been incorporated into the compulsory education program.

Reporting of Incidents and Near Misses

Electronic incident report lodgement has resulted in the Quality Manager

and Department Managers being aware of incidents on the day they

occur and follow-up action initiated.

Portland District Health’s Quality Plan is

endorsed by the Board of Management and

supported by the current committee structure.

Each department has undertaken activities

aligned with the organisational plan and

identified priority department issues.

Effectiveness

Time to analgesia in the Emergency

Department (NICS evidence practice gap)

was audited revealing availability of medical

staff as crucial to reducing delays in analgesic

administration.

Appropriateness

Portland District Health implemented the 10

Steps to Safer Health Care – the leaflet is now

given to all Portland District Health admissions

and is in the bedside Patient Information Folder.

A program in place to assist staff and

consumers to reduce or cease smoking was

delivered in partnership with QUIT – results will

be presented at end of the program in 2007.

Referrals arising from this initiative have been

excellent both for staff and patients. Antenatal

women are provided with information on risks

and support to reduce or cease smoking.

A referral pathway for Asthma was developed

to assist with appropriate management. This

pathway will be evaluated against identified

outcomes.

Portland District Health has achieved nine

of the steps to recognition under the “Baby

Friendly” certification process and is well under

way with completing the tenth and final step.

Access

The Podiatry department introduced risk rating

for clients which resulted in all clients requiring

care being seen within three months however

it identified there is no room for growth in the

service due to lack of practitioner availability.

Accreditation

A Self-Assessment Report will be submitted to

the ACHS in October 2007.

PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07 35


Portland District Health

2006/07 Quality Report

Following on from last year, Portland District

Health will produce it’s Quality of Care

Report as an insert in the local print media

- Portland Observer, to provide maximum

distribution to the Portland community.

In 2006 both the Aged Care Accreditation

and organisation wide survey occurred.

In September 2006 a two-day Aged Care

Facility site audit reported compliance in all

44 standards, resulting in the awarding of

three years accreditation for our aged care

facility to 2009.

In August 2006 an organisation wide survey,

conducted over four days, resulted in

Portland District Health achieving four years

accreditation status to 2010.

The results achieved

in meeting the required

standards for both

accreditation surveys

are a credit to all the

staff. Well done!

EXTENSIVE ACHIEVEMENT WAS AWARDED IN THREE CRITERIA:

Standard 2.1.4

Standard 4.2.2

Standard 5.1.2

Systems for delegation of authority.

Clinical classification providing health information to

support internal and external service requirements.

Buildings, plant, equipment, utilities, consumables

and supplies are managed and operated to support

safe practice and environment.

OUTSTANDING ACHIEVEMENT WAS AWARDED IN TWO CRITERIA:

Standard 4.3.1

Standard 4.3.2

Organisation uses an integrated approach to plan

and appropriately use Information Technology.

Risks to Information Technology systems are

managed to minimise disruption.

Moderate Achievement was met in all other criteria.

All previous recommendations were satisfactorily addressed and closed.

From January 2007 we moved from EQuIP3 to EQuIP4 standards for

assessment.

These results achieved in both accreditation surveys are a credit to all the staff

that have worked hard to achieve the required standards. Well done to all.

MAUREEN PATTERSON

ADON/Quality Co-ordinator

36 PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07


Portland District Health

Legislative Compliance and Statutory Reporting

Portland District Health has

a number of supporting

policies and procedures in

place to enable compliance.

FREEDOM OF INFORMATION

Applications for the provision of information

accompanied with the appropriate fee can

be made in accordance with the Freedom of

Information Act 1982. The request should

contain the name and address of the patient,

date of birth and if known, the Unit Record

(UR) number.

Freedom of Information requests made under

the Act should be directed to:-

Freedom of Information Officer

Ms. Toni Young

Health Information Manager

Portland District Health

Bentinck Street

PORTLAND VIC 3305

FREEDOM OF INFORMATION

APPLICATIONS 2006/07

Total Requests 39

Fully Granted 37

Granted in Part 0

Documents not in Existence 2

NATIONAL COMPETITION POLICY

Portland District Health complies with the

requirements of the National Competition

Policy and State Competitive Neutrality

Policy as revised.

WHISTLEBLOWERS PROTECTION ACT 2001

Portland District Health has a number of supporting policies and procedures in

place to enable compliance with the Act which provides a safe environment in

which disclosure can be made.

Since the introduction of the Act in 2002 there has not been any disclosures or

notification of disclosures to the Ombudsman or any other external agency.

Whistleblowers Protection Act Disclosures Officer

Mrs. Maureen Patterson

Assistant Director of Nursing/Quality Co-ordinator

Portland District Health

Bentinck Street

PORTLAND VIC 3305

CONSULTANCIES DISCLOSURE

Throughout 2006/07, Portland District Health engaged eight consultancies at a

cost of $123,987.

PECUNIARY INTEREST

Members of the Board of Management are required to notify the President of the

Board of any pecuniary interests which might give rise to a conflict of interest

in accordance with hospital policy. Reference is also made to Note 26 of the

Financial Statement contained within this annual report.

FEES AND CHARGES

Portland District Health charges fees in accordance with Department of Human

Services directives.

BUILDING AND MAINTENANCE COMPLIANCE

In accordance with legislative requirements, building condition reports are

undertaken on a regular basis. Recommendations arising from these reports

have been incorporated into the ongoing works and equipment program and site

and services planning.

Portland District Health has obtained the necessary Form 10 certification in

connection with the Essential Services Legislation.

PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07 37


Portland District Health

Health Service

Agreement Report

As part of the 2006/2007 Health Service Agreement

with the Department of Human Service, activity and

efficiency targets were set.

Set out in this report is a summary of the activity levels.

ITEM

INDICATOR

2005/06

2006/07

1.

Discharged Patients (separations)

Acute Same Day

Overnight Stay

Nursing Home Type

Total Separations

2756

2128

8

4882

2589

1917

12

4518

2.

Admitted Patient Bed Days

Acute

Nursing Home Type

12856

112

12730

195

Total Admitted Patient Days

12968

12925

3.

Total Acute Patient Weighted Inlier Equivalent Separations

2659.98

2442.09

4.

Average Inlier Equivalent DRG Weight

0.56

0.55

5.

Average Length of Stay of Admitted Patients

Acute Excluding Same Day (Days)

All Acute Admitted Patients (Days)

Nursing Home Type (Days)

Average Length of Stay of Admitted Patients (Days)

3.9

2.63

14

2.65

4.17

2.82

16.25

2.86

6.

Occupancy – Admitted Patients

12.94

12.37

7.

Non-Admitted Patient Occasions of Service

Accident and Emergency

Other Non-Admitted Patient Services

Total Occasions of Service

7,236

49,748

56,984

7,188

49,301

56,489

8.

Efficiency

Admitted Patient Costs ($000’s)

Acute

Other

Total Admitted Patient Costs

15,970

1,695

17,665

17,002

1,725

18,727

Non-Admitted Patient Costs ($000’s)

Accident and Emergency

Other

Total Non-Admitted Patient Cost

1,028

7,408

8,436

1,092

7,598

8,690

Total Acute Hospital Costs

Total Residential and Other Costs

22,206

3,895

22,625

4,105

Total Entity Costs ($000’s)

26,101

26,730

9.

10.

11.

Cost per Admitted Patient

Cost per DRG Weighted Admitted Patient

Cost per Bed Day

Cost per Occasion of Service

Residential Services – Patient Costs

Nursing Home – Patient Costs

Total Patients (Numbers)

Residential Services – Bed Days

Nursing Home

Quality Assurance – Accreditation Status

3,616

6,639

1,357

118

26,036

83

10429

4,149

7,684

1,489

129

41,563

55

10795

4 years to August 2010

38 PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07


Portland District Health

Medical Officers

MEDICAL STAFF

Visiting Medical Officers:

Dr. W Rieger, MB ChB

Dr. J Cantley, MBBS

Dr. D Singh, MBBS, MAFP, FRACGP

Dr. B Bassili, MB ChB, BSc AMC

Mr. J Das, MB, BS, FRCS, FICS

Dr. M Martin, MBBS

Dr. M van der Veer, MB, ChB,

FRACGP, MRACGP, AFACHSE

(resigned)

Dr. W Smolilo, MB ChB, FRACGP

(resigned)

Dr. D Singh, MBBS, FRACGP

Dr. J Risk, MBBS

Dr. A Hattingh, MB ChB

Dr. R Stewart, LRCP, MRCS, RACGP

Dr. S Rana, MBBS

Dr. P Mazani, MBBS

Dr. M Idris, MBBS

Dr. M Boules, MBBS (resigned)

Dr. F Irshad, MBBS

Dr. H Joubert, MB ChB

Dr. F Irshad, MBBS

Dr. M Hawu (contract ended)

Dr. K N Chong, B Med (Tapei) (resigned)

Dr. C J Okeleke, MBBS (Nig), AMC (resigned)

Anaesthetists:

Dr. P Goodman, MBBS, DA, RCOG, FRACGP

Dr. M Martin, MBBS, FACRRM

Dr. Wladek Smolilo, MB ChB, FRACGP

(resigned)

Dr. J Stapleton, MB, FANZA

Dr. A Fielke, MBBS, DA

Specialist Anaesthetist:

Dr. A Jolayemi, MB ChB, Sc (Med), FCA (SA),

FMCA (Nig)

Mr. K Cronin, MBBS, FFARACS, FANZCA

Dr. J Muir, MB ChB, DA, FRCA

Specialist Surgeon:

Mr. J Das, MBBS, FRCS, FICS

Visiting Surgeons:

Mr. S Clifforth, MBBS, FRACS

Mr. D Bird, MBBS, FRACS

Mr. P Tung, MBBS, FRACS

Specialist Physician:

Dr. D Taylor, MB ChB, FRCP, FRACP

Dr. B Morphett, MBBS

Visiting Physicians:

Dr. M Page, MBBS, FRACP

Dr. C Charnley, MBBS, FRACP

Dr. A Bowman, FRACP

Dr. N Abbott, FRACP

Dr. S Nagarajah, MBBS, FRACP

Visiting Obstetrician & Gynaecologist:

Dr. C Beaton, MB ChB, FRANZCOG, MRCGP,

FRCOG

Dr. K Braniff, MBBS, FRANZCOG

Dr. E Uren, MBBS, FRANZCOG

Dr. F Ng, MBBS

Visiting E.N.T. Specialists:

Ms. M Cass, MBBS, FRACS

Mr. L Ryan, FRACS, DLO

Visiting Ophthalmologist:

Dr. V Lee, FRACO, FRACS

Visiting Paediatrician:

Dr. G Pallas, BMed, FRACP (Paed)

Dr. N Thies, MBBS, DCH, FRACP (Paed)

Visiting Pathologists:

Dr. G Davey

Visiting Radiologists:

Dr. N Houghton, MBBS, (Lond) MRCS, LRCP,

FRACR,

Dr. J M Rogan, MB BCh, BAO, DMRD,

FRACR, (Lond), FRACR

Dr. J Nagorcka, MBBS, FRACR

Dr. N Walters, FRACR

Visiting Orthopaedic Surgeon:

Mr. P Kierce, MBBS, FRACS, (Ortho), FA,

Orth A (retired from Portland District Health)

Mr. A Sundarum

Visiting Urologist:

Mr. R Grills, MBBS, FRACS (April 06)

Mr. P Kearns, MBBS, FRACS

Visiting Psychiatrists:

Dr. M Duke, MBBS, MRC Psych, FRANZCP

Visiting Psychologist:

Mr. J Clark

Visiting Oral Surgeon:

Mr. B Robinson, BDSc (Adel), BSc Dent

(Hons), MDS

Visiting Alcohol & Drug Physician:

Dr. D Richards, MBBS, APSAD

Visiting Orthodontist:

Mr. C Stanley, MDs, BSc (Hons)

Visiting Dermatologist:

Dr. S Chandra, MBBS (Melb), FACD (Melb)

Dental Hygenist:

K Madden

Visiting Dental Officers:

Dr. M Stubbs

Dr. K Stock, BDSc,

Dr. M Thow, BDSc

Dr. S McGuire, BDSc, LDS

PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07 39


Portland District Health

Life Members, Life Governors, Awards,

Donations, Tributes and Thanks as at 30 June 2007

LIFE MEMBERS OF THE FORMER PORTLAND

AND DISTRICT COMMUNITY HEALTH CENTRE INC.

Association for the Blind

Mrs. Shirley Elliott

Portland Neighbourhood House

Mr. Jeff Baulch

Mr. Jack Finck

Mrs. Marilyn Baulch

Mr. Jeff Knuckey

Mr. David Harris

Mr. W. (Bill) Collett

Mrs. Anne Lanyon

LIFE GOVERNORS OF THE

FORMER PORTLAND AND

DISTRICT HOSPITAL

Aitken, Mrs. M. E.

Apex Club of Portland

Baxter, Percy (Trust)

Brownlaw, Miss E. J.

Chipperfield, Mr. B.

Edwards, Mrs. Brenda

Elford, Mrs. P.

Farrands, Miss S. M.

Fyfe, Mrs. S.

Godfrey-Smith, Mrs. P.

Jennings, Mrs. M. L.

Kermond, Mrs. J.

Lightbody, Miss E.

Lions Club of Portland

McDiven, Mrs. B.

Maling, Mrs. W. G. C.

Mitchell, Mrs. P.

Ough, Mr. A. K.

Panozzo, Mrs. S.

Pettit, Mr. P.

Plantinga, Mrs. M.

Portland Aluminium

Portland Professional Women’s

Service Club

Poon, Mr. S.

Pritchard, Mrs. S. I.

Rotary Club of Portland

Saunders, Mr. E. A.

Sharrock, Mrs. M. M.

Smith, Helen Macpherson (Trust)

Smith, Mrs. R.

Stewart, Miss J.

Wigan, Mr. J. C.

Wilmot, Mrs. P.

DISTINGUISHED SERVICE AWARD

OF THE FORMER PORTLAND AND

DISTRICT HOSPITAL

1994 Mr. Jesse Das

DONATIONS, BEQUESTS

AND FUND RAISING

During 2006/07, Portland District Health

received 24 donations and bequests totalling

$2,314,434

Murray to Moyne

Estate of the Late Gertrude Brown

Rotary Club of Portland

In Memory of the Late Gaylene Penwarden

United Way Glenelg

MA & SM Wiese

Portland Lutheran Ladies Guild

Portland Aluminium - MTM Team

Lions Club of Portland

Kristie Weston

Westneath Nominees

Isobel Byass

Portland District Health Catering Staff

K and H Phillips

Fete

Estate of Glenys Simmons

Westvic WorkForce

Estate of Thelma Dipalo

Portland Aluminium

United Way – D&A Project Grant

South West Bottle Club

Leonard Parker

P&O Ports

Mrs. Coral Lucas

During the year Portland District Health was

the beneficiary of two extraordinarily generous

acts of kindness.

Mr. Geoff Handbury (Westneath Nominees)

visited the hospital and agreed to assist with

the provision of new operating tables for the

operating theatres.

These tables possessed some of the latest

technology and as a consequence are also

very expensive. Mr. Handbury’s donation of

$200,000 made the purchase possible and

we sincerely thank him for this donation.

In June 2007, the Board learned of another

generous act, this time a bequest left to the

hospital by the late Glenys Simmons. The

bequest, which is a substantial amount, is to

be used for equipment purposes rather than

operational activities.

SPECIAL THANKS

Portland District Health would like to thank

Portland Football Netball Club and the

Narrawong General Store for their kind

support throughout the year.

Portland District Health sincerely thanks

each and every donor and sponsor for their

support. We also acknowledge the numerous

donations made to specific fundraising

projects, individual departments and wards

throughout the year.

40 PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07


Portland District Health

FINANCIAL

STATEMENTS

for the year ended 30 June 2007

Operating Statement 42

Balance Sheet 43

Statement Changes in Equity 44

Cash Flow Statement 45

Notes 46

Certification 70

Independent Audit Report 71


Portland District Health

Operating Statement for the year ended 30 June 2007

2006-07 2005-06

Note $’000 $’000

Revenue From Operating Activities [2] 21,552 21,549

Revenue From Non-operating Activities [2] 2,966 2,940

Employee Benefits [2b] (18,286) (16,478)

Non Salary Labour Costs [2b] (2,265) (2,514)

Supplies and Consumables [2b] (1,951) (2,394)

Other Expenses From Continuing Operations [2b] (2,919) (2,980)

Share of Net Result of Associates & Joint Ventures accounted [7] (82) (35)

for using Equity Model

Net Result from Continuing Operations before Capital & Specific Items (985) 88

Capital Purpose Income [2] 1,972 141

Depreciation [3] (1,369) (1,590)

Assets Provided Free of Charge [2] - 6

Finance Costs [4] (127) (110)

Net Result for the Year (509) (1,465)

This statement should be read in conjunction with the accompanying notes.

42 PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07


Portland District Health

Balance Sheet as at 30 June 2007

2007 2006

Note $’000 $’000

Assets

Current Assets

Cash and Cash Equivalents [5] 2,597 933

Receivables [8] 682 941

Inventories [10] 236 219

Other Current Assets [9] 203 217

Total Current Assets 3,718 2,310

Non Current Assets

Receivables [8] 269 434

Property, Plant and Equipment [17] 42,197 28,749

Investment in Joint Venture [7] 142 225

Total Non Current Assets 42,608 29,408

Total Assets 46,326 31,718

Liabilities

Current Liabilities

Payables [11] 2,964 1,363

Interest Bearing Liabilities [12] 171 171

Provisions [13] 2,628 2,340

Other Liabilities [14] 138 218

Total Current Liabilities 5,901 4,092

Non Current Liabilities

Interest Bearing Liabilities [12] 1,436 1,619

Provisions [13] 1,917 1,928

Total Non Current Liabilities 3,353 3,547

Total Liabilities 9,254 7,639

Net Assets 37,072 24,079

Equity

Contributed Capital [16] 33,495 27,860

Accumulated Surpluses/(Deficit) [16] (6,015) (3,781)

Asset Revaluation Reserve [16] 7,867 -

Restricted Specific Purpose Reserve [16] 1,725 -

Total Equity 37,072 24,079

This statement should be read in conjunction with the accompanying notes.

PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07 43


Portland District Health

Statement of Changes in Equity for the year ended 30 June 2007

2007 2006

Note $’000 $’000

Total Equity at Beginning of Financial Year 24,079 23,252

Gain/(loss) on Asset Revaluation [16] 7,867 -

Net Result for the Year [16] (509) (1,465)

7,358 (1,465)

Transactions with the State in its Capacity as Owner

Capital Contribution [16] 5,635 2,292

Closing Balance 37,072 24,079

This statement should be read in conjunction with the accompanying notes.

44 PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07


Portland District Health

Cash Flow Statement for the year ended 30 June 2007

Note

2006-2007 2005-2006

$’000 $’000

Cash Flows from Operating Activities

Receipts

Operating Grants from Government 19,564 19,268

Patient & Residents Fees Received 5,177 5,141

Other 544 20

Employee Benefits Paid (18,009) (16,204)

Fees For Service Medical Officers (1,685) (1,785)

Payments for Supplies and Consumables (4,580) (4,780)

GST Paid to ATO - (1,382)

Cash Generated from Operations 1,011 278

Capital Grants - Government 42 93

Capital Donations 1,805 30

Interest 13 18

Net Cash Inflow/(Outflow) From Operating Activities [19] 2,871 419

Cash Flows from Investing Activities

Purchase of Properties, Plant and Equipment (6,687) (1,413)

Proceeds from Sale of Properties, Plant and Equipment 23 19

Net Cash Inflow/(Outflow) from Investing Activities (6,664) (1,394)

Cash Flows from Financing Activities

Repayment of Borrowings (178) (178)

Contributed Capital from Government 5,635 2,292

Net Cash Inflow/(Outflow) from financing Activities 5,457 2,114

Net Increase/(Decrease) in Cash Held 1,664 1,139

Cash and Cash Equivalents at Beginning of Period 933 (206)

Cash and Cash Equivalents at End of Period [5] 2,597 933

This statement should be read in conjunction with the accompanying notes.

PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07 45


Portland District Health

Notes to and forming part of the Financial Statements

for the year ended 30 June 2007

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

The general purpose financial report has been prepared on an accrual basis in accordance with the Financial Management Act 1994, Accounting

Standards issued by the Australian Accounting Standards Board, and Urgent Issues Group Interpretations. Accounting standards include Australian

equivalents to International Financial Reporting Standards (A-IFRS).

The financial statements were authorised for issue by Wayne Armistead, Chief Finance and Accounting Officer on 19/7/07.

Basis of preparation

The financial report is prepared in accordance with the historical cost convention, except for the revaluation of certain non-current assets and financial

instruments, as noted. Cost is based on the fair values of the consideration given in exchange for assets.

In the application of A-IFRS management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that

are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and various other factors that

are believed to be reasonable under the circumstance, the results of which form the basis of making the judgements. Actual results may differ from these

estimates

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the

estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future

periods.

Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and

reliability, thereby ensuring that the substance of the underlying transactions or other events is reported.

The accounting policies set out below have been applied in preparing the financial statements for the year ended 30 June 2007, and the comparative

information presented in these financial statements for the year ended 30 June 2006.

(a)

Reporting Entity

The financial statements include all the controlled activities of the Health Service. The Health Service is a not-for profit entity and therefore applies

the additional Aus paragraphs applicable to “not-for-profit” entities under the Australian equivalents to IFRS.

(b)

Rounding Off

All amounts shown in the financial statements are expressed to the nearest $1,000.

(c)

Cash and Cash Equivalents

Cash and cash equivalents comprise cash on hand and in banks and investments in money market instruments, net of outstanding bank overdrafts.

Bank overdrafts are shown within borrowings in current liabilities in the Balance Sheet.

(d)

Receivables

Trade debtors are carried at nominal amounts due and are due for settlement within 30 days from the date of recognition. Collectability of debts is

reviewed on an ongoing basis, and debts which are known to be uncollectible are written off. A provision for doubtful debts is raised where doubt as

to the collection exists. Bad debts are written off when identified.

(e)

Inventories

Inventories include goods and other property held either for sale or for distribution at no or nominal cost in the ordinary course of business

operations. It includes land held for sale and excludes depreciable assets.

Inventories held for distribution are measured at the lower of cost and current replacement cost. All other inventories are measured at the lower of

cost and net realisable value.

Costs for all inventory is measured on the basis of weighted average cost.

46 PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07


Portland District Health

Notes to and forming part of the Financial Statements

for the year ended 30 June 2007

(g)

Property, Plant & Equipment

Freehold and Crown Land is measured at fair value with regard to the property’s highest and best use after due consideration is made for any

legal or constructive restrictions imposed on the land, public announcements or commitments made in relation to the intended use of the land.

Theoretical opportunities that may be available in relation to the assets are not taken into account until it is virtually certain that any restrictions

will no longer apply.

Buildings are measured at fair value less accumulated depreciation and impairment.

Plant, Equipment and Vehicles are measured at cost less accumulated depreciation and impairment.

(h)

Revaluations of Non-Current Assets

Financial Reporting Directions (FRD) 103B Non-Current Physical Assets, prescribes that non-current physical assets measured at fair value are

revalued with sufficient regularity to ensure that the carrying amount of each asset does not differ materially from its fair value. This revaluation

process normally occurs every five years as directed by timelines in FRD103B which sets the next revaluation for the Health, Welfare and

Community Purpose Group to occur on June 2009, or earlier should there be an indication that fair values are materially different from the carrying

value. Revaluation increments and decrements arise from differences between an assets carrying value and fair value.

Revaluation increments are credited directly to the asset revaluation reserve, except that, to the extent that an increment reverses a revaluation

decrement in respect of that class of asset previously recognised as an expense in net result, the increment is recognised as revenue in the

net result.

Revaluation decrements are recognised immediately as expenses in the net result, except that, to the extent that a credit balance exists in the asset

revaluation reserve in respect of the same class of assets, they are debited directly to the asset revaluation reserve.

Revaluation increases and revaluation decreases relating to individual assets within an asset class are offset against one another within that class

but are not offset in respect of assets in different classes. Revaluation reserves are to be transferred to accumulated funds on derecognition of the

relevant asset.

(i)

Depreciation

Assets with a cost in excess of $1,000 (2005-06 and 2006-07) are capitalised and depreciation has been provided on depreciable assets so as

to allocate their cost (or valuation) over their estimated useful lives using the straight-line method. Estimates of the remaining useful lives for all

assets are reviewed at least annually. This depreciation charge is not funded by the Department of Human Services.

The following table indicates the expected useful lives of non current assets on which the depreciation charges are based.

2007 2006

Buildings 30 to 40 years 30 to 40 years

Plant and Equipment 8 to 10 years 8 to 10 years

Medical Equipment 4 to 5 years 4 to 5 years

Computer Equipment 3 to 5 years 3 to 5 years

Furniture & Fittings 3 to 5 years 3 to 5 years

Motor Vehicles 2 to 3 years 2 to 3 years

Leased Assets 2 to 4 years 2 to 4 years

Other Equipment 3 to 5 years 3 to 5 years

PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07 47


Portland District Health

Notes to and forming part of the Financial Statements

for the year ended 30 June 2007

(j)

Impairment of Assets

Intangible assets with indefinite useful lives are tested annually as to whether their carrying value exceeds their recoverable amount.

All other assets are assessed annually for indications of impairment, except for:

- inventories;

- assets arising from construction contracts;

- financial instrument assets;

If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their recoverable amount.

Where an asset’s carrying value exceeds its recoverable amount, the difference is written off by a charge to the operating statement except to

the extent that the write down can be debited to an asset revaluation reserve amount applicable to that class of asset.

The recoverable amount for most assets is measured at the higher of depreciated replacement cost and fair value less costs to sell. Recoverable

amount for assets held primarily to generate net cash inflows is measured at the higher of the present value of future expected cash flows expected

to be obtained from the asset and fair value less costs to sell. It is deemed that, in the event of the loss of an asset, the future economic benefits

arising from the use of the asset will be replaced unless a specific decision to the contrary has been made.

(k)

Payables

These amounts represent liabilities for goods and services provided prior to the end of the financial year and which are unpaid.

The normal credit terms are usually Net 30 days.

(l)

Provisions

Provisions are recognised when the Portland District Health Service has a present obligation, the future sacrifice of economic benefits is probable,

and the amount of the provision can be measured reliably.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking

into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cashflows estimated to settle the

present obligation, its carrying amount is the present value of those cashflows.

(m)

Resources Provided and Received Free of Charge or for Nominal Consideration

Resources provided and received free of charge or for nominal consideration are recognised at their fair value. Contributions in the form of services

are only recognised when a fair value can be reliably determined and the services would have been purchased if not donated.

(n)

Interest Bearing Liabilities

Interest bearing liabilities in the Balance Sheet are recognised at fair value upon initial recognition. Subsequent to initial recognition, all financial

liabilities are recognised at amortised cost using the effective interest method.

(o)

Functional and Presentation Currency

The presentation currency of Portland District Health Service is the Australian dollar, which has also been identified as the functional currency of

the Health Service.

(p)

Goods and Services Tax

Income, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation

authority. In this case it is recognised as part 6 of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to,

the taxation authority is included with other receivables or payables in the balance sheet.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable

from, or payable to the taxation authority, are presented as operating cash flow.

48 PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07


Portland District Health

Notes to and forming part of the Financial Statements

for the year ended 30 June 2007

(q)

Employee Benefits

Wages and Salaries, Annual Leave, Sick Leave and Accrued Days Off

Liabilities for wages and salaries, including non-monetary benefits, annual leave, accumulating sick leave and accrued days off expected to

be settled within twelve months of the reporting date are recognised in the provision for employee benefits in respect of employees services up to

the reporting date, classified as current liabilities and measured at nominal values. Those liabilities that the health service does not expect to settle

within 12 months are recognised in the provision for employee benefits as current liabilities, measured at present value of the amounts expected to

be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement.

Long Service Leave

Current Liability - Unconditional LSL (representing 10 or more years of continuous service) is disclosed as a current liability regardless of whether

Portland District Health does not expect to settle the liability within 12 months as it does not have the unconditional right to defer the settlement

of the entitlement should an employee take leave.

The components of the current LSL liability are measured at:

present value - component that Portland District Health does not expect to settle within 12 months; and

nominal value - component that Portland district Health expects to settle within 12 months.

Non-Current Liability - conditional LSL (representing less than 10 years of continuous service) is disclosed as a non-current liability.

There is an unconditional right to defer the settlement of the entitlement until 10 years of service has been completed by an employee.

Conditional LSL is required to be measured at present value.

Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service.

Expected future payments are discounted using interest rates of national Government guaranteed securities in Australia,

Superannuation

Defined contribution plans

Contributions to defined contribution superannuation plans are expenses when incurred.

Defined benefit plans

The amount charged to the Operating Statement in respect of Defined benefit superannuation plan represents the contributions made by Portland

District Health to the superannuation plan in respect to the current services of current Portland District Health staff. Superannuation contributions

are made to the plans based on the relevant rules of each plan.

Employees of Portland District Health are entitled to receive superannuation benefits and Portland District Health contributes to both the defined

benefit and defined contribution plan. The defined benefit plan provide benefits based on years of service and final average salary.

Portland District Health made contributions to the following major superannuation funds:

Defined Benefit Plans:

Defined contribution Plans:

Health Super

Health Super

Hesta Super Fund

Portland District Health does not recognise any defined benefit liability in respect of the superannuation plans because Portland District Health has

no legal or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as

they fall due. The Department of Treasury and Finance administers and discloses the States defined benefit liabilities in its financial report.

Termination Benefits

Liabilities for termination benefits are recognised when a detailed plan for the termination has been developed and a valid expectation has been

raised with those employees affected that the terminations will be carried out. The liabilities for termination benefits are recognised in other creditors

unless the amount or timing of the payments in uncertain, in which case they are recognised as a provision.

On-Costs

Employee benefit on-costs are recognised and included in employee benefit liabilities and costs when the employee benefits to which they relate

are recognised as liabilities.

PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07 49


Portland District Health

Notes to and forming part of the Financial Statements

for the year ended 30 June 2007

(r)

Finance Costs

Finance costs are recognised as expenses in the period in which they are incurred.

Finance costs include:

- interest on bank overdrafts and short term and long term borrowings:

- amortisation of discounts or premiums relating to borrowings:

- amortisation of ancillary costs incurred in connection with the arrangement of borrowings:

- finance charges in respect to finance leases recognised in accordance with AASB 117 Leases.

(s)

Residential Aged Care Service

The Seymour Cundy Wing Nursing Home is an integral part of Portland District Health and shares its resources. An apportionment of land and

buildings has been made based on floor space. The results of the two operations have been segregated based on actual revenue earned and

expenditure incurred by each operation.

(t)

Joint Ventures

Interests in jointly controlled operations and jointly controlled assets are accounted for by recognising in Portland District Health’s financial

statements, its share of assets, liabilities and any revenue and expenses of such joint ventures of the joint venture are set out in Note 7.

(u)

Intersegment Transactions

Transactions between segments with Portland District Health have been eliminated to reflect the extent of the Portland District Health’s operations

as a group.

(v)

Leases

Leases of property, plant and equipment are classified as finance leases whenever the terms of the lease transfer substantially all the risks and

rewards of ownership to the lessee. All other leases are classified as operating leases.

Assets held under finance leases are recognised as non-current assets at their fair value or, if lower, at the present value of the minimum lease

payments, each determined at the inception of the lease. The minimum lease payments are discounted at the interest rate implicit in the lease.

A corresponding liability is established and each lease payment is allocated between the principal component and the interest expense.

Finance leased assets are amortised on a straight line basis over the shorter of the estimated useful life of the asset or the term of the lease.

Contingent rental associated with finance leases are recognised as an expense in the period in which they are incurred.

Operating lease payments, including any contingent rentals, are recognised as an expense in the operating statement on a straight line basis

over the lease term, except where another systematic basis is more representative of the time pattern of the benefits derived from the use of the

leased asset.

(w)

Revenue Recognition

Revenue is recognised in accordance with AASB 118 Revenue. Income is recognised as revenue to the extent it is earned.

Unearned income at reporting date is reported as income received in advance.

Amounts disclosed as revenue are, where applicable, net of returns, allowances and duties and taxes.

Government Grants

Grants are recognised as income when Portland District Health gains control of the underlying assets in accordance with AASB 1004 Contributions.

Where grants are reciprocal, revenue is recognised as performance occurs under the grant. Non-reciprocal grants are recognised as income when

the grant is received or receivable. Conditional grants may be reciprocal or non-reciprocal depending on the terms of the grant.

50 PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07


Portland District Health

Notes to and forming part of the Financial Statements

for the year ended 30 June 2007

Indirect Contributions

- Insurance is recognised as revenue following advise from the Department of Human Services.

- Long Service Leave - Revenue is recognised upon finalisation of movements in LSL liability in line with the arrangements

set out in the Acute Health Division Hospital Circular 16/2004.

Patient Fees

Patient fees are recognised as revenue at the time invoices are raised.

Private Practice Fees

Private Practice fees are recognised as revenue at the time invoices are raised.

Donations and Other Bequests

Donations and bequests are recognised as revenue when the cash is received. If donations are for a special purpose they may be appropriated

to a reserve, such as specific restricted purpose reserve.

(x)

Fund Accounting

The Health Service operates on a fund accounting basis and maintains three funds: Operating, Capital and Specific Purpose funds.

The Health Service Capital Fund includes unspent capital donations and receipts from fundraising activities conducted solely in respect of this

fund and the Specific Purpose fund is made up of funds over which the Health Service has possesion but no discretion to amend or vary the

restrictions underlying the use of the fund.

(y)

Services Supported by Health Services Agreement and Services Supported by Hospital and Community Initiatives.

The activities classified as Services Supported by Health Services Agreement (HSA) are substantially funded by the Department of Human

Services and includes RACS, while Services Supported by Hospital and Community Initiatives (Non HSA) are funded by the Health Services

own activities or local initiatives.

(z)

Comparative Information

There have been no changes to previous years figures other than detailed below:

Revenues and Expenses by category in Notes 2a and 2b have been reclassified to accord with the governments requirements for reporting under

the Australian Health Care Agreement with the Commonwealth government. This reclassification is to reflect the new category groups as detailed

in Note1(ae) as follows:

2005-06

Acute

$’000

Admitted

Patients

$’000

Reclassified to:

EDS

$000

Ambulatory

$’000

Revenue - HAS

Hospital & Community Initiatives 16,984 16,984 - -

Expenses - HAS

Hospital & Community Initiatives 16,685 16,685 - -

PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07 51


Portland District Health

Notes to and forming part of the Financial Statements

for the year ended 30 June 2007

(aa) Contributed Capital

Consistent with UIG Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities and FRD 2 Contributed Capital,

apportions for additions to the net asset base have been designated as contributed capital. Other transfers that are in the nature of contributions

or distributions, have also been designated as contributed capital.

(ab) Asset Revaluation Reserve

The asset revaluation reserve is used to record increments and decrements on the revaluation of non-current assets.

(ac)

Portland District Health has applied the going concern basis, in the preparation of this financial report. The going concern basis continues to be

appropriate with the expected renewal of the Health Service’s bank overdraft and a letter of comfort provided by the Department of Human Services

to continue to support the operations of Portland District Health has been received.

(ad) Net result Before Capital and Specific Items

The subtotal entitled ‘Net Result Before Capital and specific Items’ is included in the Operating Statement to enhance the understanding of the

financial performance of Portland District Health. This subtotal reports the result excluding items such as capital grants, assets received or provided

free of charge, depreciation, and items of unusual nature and amount such as specific revenues and expenses. The exclusion of these items are

made to enhance matching of income and expenses so as to facilitate the comparability and consistency of results between years and Victorian

Public Health Services. The net result before Capital and Specific Items is used by the management of Portland District Health, the Department of

Human Services and the Victorian Government to measure the ongoing result of Health Services in operating hospital services.

Capital and Specific items, which are excluded from this sub-total, comprise:

Capital purpose income, which comprises all tied grants, donations and bequests received for the purpose of acquiring non-current assets, such

as capital works, plant and equipment or intangible assets. It also includes donations of plant and equipment (refer Note 1 (m)). Consequently the

recognition of revenue as capital purpose income is based on the intention of the provider of the revenue at the time the revenue is provided.

Specific income/expense, comprises the following items, where material:

- Diagnostic Imaging

- Sea View House

- Meals on Wheels

- Dental Clinic

- Palliative Care

- Catering

- Fundraising and Community Support

Depreciation and Amortisation, as described in Note 3

Assets provided free of charge, as described in Note 2e

Expenditure using capital purpose income, which comprises expenditure which either falls below the asset capitalisation threshold (Note 1 (g),

or doesn’t meet asset recognition criteria and therefore does not result in the recognition of an asset in the balance sheet, where funding for that

expenditure is from capital purpose income.

(ae) Category Groups

Portland District Health has used the following category groups for reporting purposes for the current and previous financial years.

Admitted Patient Services (Admitted Patients) comprises all recurrent health revenue/expenditure on admitted patient services, where services are

delivered in public hospitals, or free standing day hospital facilities, or palliative care facilities, or rehabilitation facilities, or alcohol and drug treatment

units or hospital specialising in dental services, hearing and ophthalmic aids.

Outpatient Services (Outpatients) comprises all recurrent health revenue/expenditure on public hospital type outpatient services, where services

are delivered in public hospital outpatient clinics, or free standing day hospital facilities, or alcohol and drug treatment units, or outpatient clinics

specialising in ophthalmic aids or palliative care.

Emergency Department Services (EDS) comprises all recurrent health revenue/expenditure on emergency department services that are available

free of charge to public patients.

52 PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07


Portland District Health

Notes to and forming part of the Financial Statements

for the year ended 30 June 2007

Aged Care comprises revenue/expenditure from Home and Community Care (HACC) programs, allied health, Aged Care Assessment and

support services.

Primary Health comprises revenue/expenditure for Community Health Services including health promotion and counselling, physiotherapy,

speech therapy, podiatry and occupational therapy.

Residential Aged Care including Mental Health (RAC incl. Mental Health) referred to in the past as psychogeriatric residential services, comprises

those Commonwealth-licensed residential aged care services in receipt of supplementary funding from DHS under the mental health program.

It excludes all other residential services funded under the mental health program, such as mental health funded community care units (CCUs)

and secure extended care units (SECs)

Other Services excluded from Australian Health Care Agreement (AHCA) (Other) comprises revenue/expenditure for services not separately

classified above, including: Public health services including Laboratory testing, Blood Borne Viruses, Sexually Transmitted Infections clinical

services, Kooris Liaison Officers, immunisation and screening services, Drugs services including drug withdrawal, counselling and the needle

and syringe program, Dental Health services including general and specialist dental care, school dental services and clinical education, Disability

services including aids and equipment and flexible support packages to people with a disability, Community Care programs including sexual

assault support, early parenting services, parenting assessment and skills development, and various support services. Health and Community

Initiatives also falls in this category group.

(af)

New Accounting Standards and Interpretations

Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2007 reporting period.

As at 30 June 2007, the following standards and interpretations had been issued but were not mandatory for financial years ending 30 June 2007.

Portland District Health has not and does not intend to adopt these standards early.

Standard/ Interpretation

Summary

Applicable for

Reporting periods

beginning on or

ending on

Impact on Health Services

Annual Statements

AASB7

Financial Instruments:

Disclosures

New standard replacing disclosure

requirements of AASB132

Beginning

1 Jan 2007

AASB7 is a disclosure standard

so will have no direct impact

on the amounts included

in Portland District Health’s

financial statements. However

the amendments will result

in changes to the financial

instrument disclosures included

in the annual report.

AASB 2005-10 Amendments

to Aust. Accounting Standards

(AASB’s 132, 101, 114, 117,

133, 139, 1, 4, 1023 & 1038)

Amendments arising from the release

in Aug 05 of AASB7 Financial Instruments:

Disclosures.

Beginning

1 Jan 2007

Amendments may result

in changes to the financial

statements.

AASB101 Presentation of

Financial Statements (revised)

Removes Australian specific requirements

from AASB 101, including the Aust

illustrative formats of the income statement,

balance sheet, and the statement of

changes in equity which Health Services

were previously ‘encouraged’ to adopt

in their financial statements.

Beginning

1 Jan 2007

Amendments may result

in changes to the financial

statements.

AASB 2007-1 Amendments

to Australian Accounting

Standards arising from AASB

Interpretation 22 (AASB 2)

Additional paragraphs added underneath

transitional payments.

1 Mar 2007

Amendments may result

in changes to financial

statements.

PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07 53


Portland District Health

Notes to and forming part of the Financial Statements

for the year ended 30 June 2007

NOTE 2: REVENUE HSA Non HSA Total

2006-07 2006-07 2006-07

Revenue from Operating Activities $’000 $’000 $’000

Government Grants:

- Department of Human Services 17,547 - 17,547

- Dental Health Services Victoria 465 - 465

- State Government - Other 298 - 298

- Commonwealth Government 418 - 418

- Residential Aged Care Subsidy

Indirect Contributions by Department of Human Services 576 20 596

Patient & Resident Fees (refer note 2c) 2,029 35 2,064

Other Revenue from Operating Activities - 164 164

Sub-Total Revenue from Operating Activities 21,333 219 21,552

Revenue from Non-Operating Activities

Diagnostic Imaging - 1,129 1,129

Supported Residential service - 1,725 1,725

Meals on Wheels - 112 112

Sub-Total Revenue from Non-Operating Activities - 2,966 2,966

Revenue from Capital Purpose Income

State Government Capital Grants

- Targeted Capital Works and Equipment 42 - 42

Commonwealth Government Capital Grants - - -

Assets Received Free of Charge (refer note 2e) - - -

Donations & Bequests - 1,917 1,917

Capital Interest - 13 13

Sub-Total Revenue from Capital Purpose Income 42 1,930 1,972

Total Revenue 21,375 5,115 26,490

Indirect Contributions by Human Services

Department of Human Services makes certain payments on behalf of the organisation. These amounts have been brought to account in determining

the operating result for the year by recording them as revenue and expenses

NOTE 2A: ANALYSIS OF REVENUE BY SOURCE Admitted Aged Primary Other Total

Patients Care Health

2007 2007 2007 2007 2007

Revenue from Services Supported by Health Services Agreement $’000 $’000 $’000 $’000 $’000

Government Grants

- Department of Human Services 15,928 140 1,525 252 17,845

- Dental Health Services Victoria - - - 465 465

- Commonwealth Government - 418 - - 418

Indirect Contributions by Human Services

- Insurance 498 62 25 17 602

- Long Service Leave 51 - - - 51

Patient & Resident Fees (refer note 2c) 285 1,686 58 35 2,064

Interest - - - 43 43

Pharmacy Services - - - 18 18

Other - - - 23 23

Sub-Total Revenue from Services Supported by Health

Services Agreement 16,762 2,306 1,608 853 21,529

Revenue from Services Supported by Hospital and Community Initiatives

Private Practice and Other Patient Activities

Business Units

- Diagnostic Imaging - - - 1,129 1,129

- Supported Residential service - - - 1,725 1,725

- Meals on Wheels - - - 112 112

Other Activities -

Capital Purpose Income - - - 55 55

Assets Received Free of Charge - - - - -

Donations and Bequests - - - 1,917 1,917

Net Gain/(Loss) on Disposal of Non-Current Assets (refer note 2d) - - - 23 23

Sub-Total Revenue from Services Supported by Hospital

and Community Initiatives - - - 4,961 4,883

Total Revenue from Operations 16,762 2,306 1,608 5,814 26,490

54 PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07


Portland District Health

Notes to and forming part of the Financial Statements

for the year ended 30 June 2007

NOTE 2: REVENUE (continued) HSA Non HSA Total

2005-06 2005-06 2005-06

Revenue from Operating Activities $’000 $’000 $’000

Government Grants:

- Department of Human Services 17,745 - 17,745

- Dental Health Services Victoria 354 - 354

- State Government - Other 322 - 322

- Commonwealth Government 316 - 316

- Residential Aged Care Subsidy

Indirect Contributions by Department of Human Services 488 20 508

Patient & Resident Fees (refer note 2c) 1,983 33 2,016

Other Revenue from Operating Activities - 288 288

Sub-Total Revenue from Operating Activities 21,208 341 21,549

Revenue from Non-Operating Activities

Diagnostic Imaging - 1,095 1,095

Supported Residential service - 1,690 1,690

Meals on Wheels - 155 155

Sub-Total Revenue from Non-Operating Activities - 2,940 2,940

Revenue from Capital Purpose Income

State Government Capital Grants

- Targeted Capital Works and Equipment 93 - 93

Commonwealth Government Capital Grants - - -

Assets Received Free of Charge (refer note 2e) - 6 6

Donations & Bequests - 30 30

Capital Interest - 18 18

Sub-Total Revenue from Capital Purpose Income 93 54 147

Total Revenue 21,301 3,335 24,636

Indirect Contributions by Human Services

Department of Human Services makes certain payments on behalf of the organisation. These amounts have been brought to account

in determining the operating result for the year by recording them as revenue and expenses

NOTE 2A: ANALYSIS OF REVENUE BY SOURCE (continued) Admitted Aged Primary Other Total

Patients Care Health

Revenue from Services Supported by Health 2006 2006 2006 2006 2006

Services Agreement $’000 $’000 $’000 $’000 $’000

Government Grants

- Department of Human Services 16,198 - 1,459 410 18,067

- Dental Health Services Victoria - - - 354 354

- Commonwealth Government - 398 - - 398

Indirect Contributions by Human Services

- Insurance 443 41 18 6 508

- Long Service Leave 46 - - - 46

Patient & Resident Fees (refer note 2c) 297 1,634 54 31 2,016

Interest - - - 18 18

Pharmacy Services - - - 14 14

Other - - - 146 146

Sub-Total Revenue from Services Supported by Health

Services Agreement 16,984 2,073 1,531 979 21,567

Revenue from Services Supported by Hospital and Community Initiatives

Private Practice and Other Patient Activities

Business Units

- Diagnostic Imaging - - - 1,095 1,095

- Supported Residential service - - - 1,690 1,690

- Meals on Wheels - - - 155 155

Other Activities

Capital Purpose Income - - - 93 93

Assets Received Free of Charge - - - 6 6

Donations and Bequests - - - 30 30

Sub-Total Revenue from Services Supported by Hospital

and Community Initiatives - - - 3,069 3,069

Total Revenue from Operations 16,984 2,073 1,531 4,048 24,636

PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07 55


Portland District Health

Notes to and forming part of the Financial Statements

for the year ended 30 June 2007

NOTE 2B: ANALYSIS OF EXPENSES BY SOURCE

Admitted Aged Primary Other

Patients Care Health

2007 2007 2007 2007 2006-07

Services Supported by Health Services Agreement $’000 $’000 $’000 $’000 $’000

Employee Benefits

Salaries and Wages 10,668 1,692 1,389 787 14,536

WorkCover 150 61 42 14 267

Long Service Leave 124 42 21 19 206

Superannuation (refer Note 22) 1,059 135 115 48 1,357

Non Salary Labour costs

Fees for Visiting Medical Officers 1,358 - - 58 1,416

Supplies and Consumables

Drug Supplies 401 16 - - 417

Medical, Surgical Supplies and Prosthesis 697 24 21 14 756

Food Supplies 236 61 12 5 314

Other Expenses

Domestic Services & Supplies 261 45 3 - 309

Fuel, Light, Power & Water 192 25 34 35 286

Insurance Costs funded by DHS 498 62 25 11 596

Motor Vehicle Expenses 98 - - - 98

Repairs and Maintenance 445 58 29 - 532

Maintenance Contracts 185 - - - 185

Patient Transport 131 - - - 131

Lease Expenses 7 - - - 7

Other administrative expenses 231 65 48 163 507

Sub Total Expenses from Services Supported by

Health Services Agreement 16,741 2,286 1,739 1,154 21,920

Services Supported by Hospital and Community Initiatives

Employee Benefits

Salaries and Wages - - - 1,713 1,713

WorkCover - - - 35 35

Long Service Leave - - - 7 7

Superannuation (refer Note 22) - - - 165 165

Non Salary Labour costs

Fees for Visiting Medical Officers - - - 849 849

Supplies and Consumables

Medical and Surgical Supplies - - - 266 266

Food Supplies - - - 198 198

Other Expenses

Domestic Services - - - 21 21

Repairs and Maintenance - - - 105 105

Administrative Expenses - - - 131 131

Sub-Total Services supported by Hospital

and Community Initiatives - - - 3,490 3,490

Depreciation and Amortisation (refer Note 3) 835 218 92 224 1,369

Impairment of Non-Current Assets

Audit Fees

Auditor General’s (refer Note 23 ) - - - 11 11

Finance Costs (refer Note 4) 18 - - 109 127

Share of Net Result of Associates & Joint Ventures - - - 82 82

for using Equity Model (refer Note 7)

Net Gain/(Loss) on Disposal of Non-Current Assets (refer note 2d) - - - - -

Total Expenses 17,594 2,504 1,831 5,070 26,999

56 PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07


Portland District Health

Notes to and forming part of the Financial Statements

for the year ended 30 June 2007

NOTE 2B: ANALYSIS OF EXPENSES BY SOURCE (continued)

Admitted Aged Primary Other

Patients Care Health

2006 2006 2006 2006 2005-06

Services Supported by Health Services Agreement $’000 $’000 $’000 $’000 $’000

Employee Benefits

Salaries and Wages 9,981 1,406 1,395 134 12,916

WorkCover 154 43 35 11 243

Long Service Leave 118 55 12 26 211

Superannuation (refer Note 22) 1,070 125 120 33 1,348

Non Salary Labour costs

Fees for Visiting Medical Officers 1,659 - - 41 1,700

Supplies and Consumables

Drug Supplies 405 19 - - 424

Medical, Surgical Supplies and Prosthesis 1,024 33 38 28 1,123

Food Supplies 223 55 10 - 288

Other Expenses

Domestic Services & Supplies 241 41 2 - 284

Fuel, Light, Power & Water 178 19 29 29 255

Insurance Costs funded by DHS 443 41 14 10 508

Motor Vehicle Expenses 105 - - - 105

Repairs and Maintenance 449 51 24 - 524

Maintenance Contracts 178 - - - 178

Patient Transport 124 - - - 124

Lease Expenses 6 - - - 6

Other administrative expenses 327 48 38 325 738

Sub Total Expenses from Services Supported by

Health Services Agreement 16,685 1,936 1,717 637 20,975

Services Supported by Hospital and Community Initiatives

Employee Benefits

Salaries and Wages - - - 1,560 1,560

WorkCover - - - 32 32

Long Service Leave - - - 19 19

Superannuation (refer Note 22) - - - 149 149

Non Salary Labour costs

Fees for Visiting Medical Officers - - - 814 814

Supplies and Consumables

Medical and Surgical Supplies - - - 365 365

Food Supplies - - - 194 194

Other Expenses

Domestic Services - - - 15 15

Repairs and Maintenance - - - 92 92

Administrative Expenses - - - 137 137

Sub-Total Services supported by Hospital

and Community Initiatives - - - 3,377 3,377

Depreciation and Amortisation (refer Note 3) 956 225 96 313 1,590

Impairment of Non-Current Assets

Audit Fees

Auditor General’s (refer Note 23 ) - - - 11 11

Finance Costs (refer Note 4) 14 - - 96 110

Share of Net Result of Associates & Joint Ventures - - - 35 35

for using Equity Model (refer Note 7)

Net Gain/(Loss) on Disposal of Non-Current Assets (refer Note 2d) - - - 3 3

Total Expenses 17,655 2,161 1,813 4,472 26,101

PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07 57


Portland District Health

Notes to and forming part of the Financial Statements

for the year ended 30 June 2007

NOTE 2C: PATIENT AND RESIDENT FEES

Total

Total

Patient and Resident Fees Raised: 2006-07 2005-06

Recurrent $’000 $’000

Acute

- Inpatients 285 297

- Outpatient 58 54

Residential Aged Care

- Residential Accommodation Payments 1,686 1,634

- Other 35 31

Total 2,064 2,016

NOTE 2D: NET GAIN /(LOSS) ON DISPOSAL OF NON CURRENT ASSETS

2006-07 2005-06

$’000 $’000

Proceeds from Disposals of Non-Current Assets

- Motor Vehicles 33 19

Less: Written Down Value of Non-Current Assets Sold

- Motor Vehicles (10) (22)

Net gain/(Loss) on disposal of Non-Current Assets 23 (3)

NOTE 2E: ASSETS RECEIVED FREE OF CHARGE OR FOR NOMINAL CONSIDERATION

BY HOSPITAL AND COMMUNITY INITIATIVES

During the reporting period, the fair value of assets received 2006-07 2005-06

free of charge, was as follows: $’000 $’000

Medical Equipment - 6

Total - 6

NOTE 2F: ANALYSIS OF EXPENSES BY INTERNAL AND RESTRICTED SPECIFIC PURPOSE FUNDS

FOR SERVICES SUPPORTED BY HOSPITAL AND COMMUNITY INITIATIVES

2006-07 2005-06

$’000 $’000

Private Practice and Other Patient Activities

Diagnostic Imaging 1,129 1,095

Sea View House 1,725 1,570

Meals on Wheels 112 124

Dental Clinic 365 335

Palliative Care 54 52

Catering 38 41

Other Activities:

Fundraising and Community Support 25 21

Total 3,448 3,238

58 PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07


Portland District Health

Notes to and forming part of the Financial Statements

for the year ended 30 June 2007

NOTE 3: DEPRECIATION AND AMORTISATION

2006-07 2005-06

$’000 $’000

Depreciation:

Buildings 575 574

Plant & Equipment 419 447

Medical Equipment 171 186

Computer Equipment 49 228

Motor Vehicles 93 87

Other Equipment 62 68

Total Depreciation Expenses 1,369 1,590

NOTE 4: FINANCE COSTS 2006-07 2005-06

$’000 $’000

Interest on Borrowings - Short Term 127 110

Total Finance Costs 127 110

NOTE 5: CASH AND CASH EQUIVALENTS

For the purposes of the Cash Flow Statement, cash assets includes cash on hand and in banks,

and short term deposits which are readily convertible to cash on hand, and are subject to an

insignificant risk of change in value, net of outstanding bank overdrafts.

2006-07 2005-06

$’000 $’000

Cash at Bank 121 933

Bank Overdraft (230) -

Short Term Money Market 2,706 -

Total 2,597 933

Represented by:

Cash for Health Service Operations (as per Cash Flow Statement)

- Cash at Bank 121 933

- Bank Overdraft (230) -

- Short Term Money Market 2,706 -

Total 2,597 933

PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07 59


Portland District Health

Notes to and forming part of the Financial Statements

for the year ended 30 June 2007

NOTE 6: FINANCIAL INSTRUMENTS

(a) Interest Rate Risk Exposure

The Hospital’s exposure to interest rate risk and effective weighted average interest rate by maturity periods is set out in the following timetable.

For interest rates applicable to each class of asset or liability refer to individual notes to the financial statements. Exposure arises predominantly

from assets and liabilities bearing variable interest rates.

Weighted Fixed Interest Rate Non

Interest Rate Exposure as at 30/6/2007 Average Interest Floating 1 Year Over Over Over Over Over Interest

Rates Interest or Less 1 to 2 2 to 3 3 to 4 4 to 5 5 Bearing 2006-07

Rate years years years years years

% $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Financial Assets

Cash Assets 2.5% 2,597 - - - - - - 2,597

Receivables - - - - - - - 951 951

Other Assets 2.4% 203 - - - - - - 203

Total Financial Assets 2,800 - - - - - - 951 3,751

Financial Liabilities

Payables - - - - - - - 2,724 2,724

Borrowings:

- Treasury Corporation Victoria 3.8% - 171 171 171 171 171 752 1,607

Total Financial Liabilities - 171 171 171 171 171 752 2,724 4,331

Net Financial Assets and Liabilities 2,800 (171) (171) (171) (171) (171) (752) (1,773) (580)

Weighted Fixed Interest Rate Non

Interest Rate Exposure as at 30/6/2006 Average Interest Floating 1 Year Over Over Over Over Over Interest

Rates Interest or Less 1 to 2 2 to 3 3 to 4 4 to 5 5 Bearing 2005-06

Rate years years years years years

% $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Financial Assets

Cash Assets 2.5% 933 - - - - - - - 933

Receivables - - - - - - - 1,375 1,375

Other Assets 2.4% 217 - - - - - - - 217

Total Financial Assets 1,150 - - - - - - 1,375 2,525

Financial Liabilities

Payables - - - - - - - 1,363 1,363

Borrowings:

- Treasury Corporation Victoria 3.8% - 171 171 171 171 171 935 1,790

Total Financial Liabilities - 171 171 171 171 171 935 1,363 3,153

Net Financial Assets and Liabilities 1,150 (171) (171) (171) (171) (171) (935) 12 (628)

(b) Credit Risk Exposure

Credit risk represents the loss that would be recognised if counterparties fail to meet their obligations under the respective contracts at maturity. The credit risk on financial

assets of the entity have been recognised on the statement of financial position, as the carrying amount, net any provisions for doubtful debts.

60 PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07


Portland District Health

Notes to and forming part of the Financial Statements

for the year ended 30 June 2007

(c) Net Fair Value of Financial Assets and Liabilities

The carrying amount of financial assets and liabilities contained within these financial statements is representative of the net fair value of each financial asset or liability.

2006-07 2005-06

Net Fair Value Book Net Fair Book Net Fair

Value Value Value Value

$’000 $’000 $’000 $’000

Financial Assets

Cash at Bank 2,597 2,597 933 933

Trade Debtors 951 951 1,375 1,375

Other Assets 203 203 217 217

Total Financial Assets 3,751 3,751 2,525 2,525

Financial Liabilities

Payables 2,724 2,724 1,363 1,363

Borrowing:

- Treasury Corporation Victoria - Current 171 171 171 171

- Treasury Corporation Victoria - Non-Current 1,436 1,436 1,619 1,619

Total Financial Liabilities 4,331 4,331 3,153 3,153

*Net fair values are capital amounts

Net fair values of financial instruments are determined on the following basis:

1. Cash, deposit investments, cash equivalents and non-interest bearing financial assets and liabilities (trade debtors, other receivables, trade creditors

and advances) are valued at cost which approximates net fair value.

2. Interest Bearing Liabilities amounts are based on the present value of expected future cash flows, discounted at current market interest rates,

quoted for trade (Treasury Corporation of Victoria)

NOTE 7: INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

2007 2006

$’000 $’000

Investment in Jointly Controlled Entities 142 225

Total 142 225

Principal Country of Ownership Interest Published Fair Value

Activity Incorporation

2007 2006 2007 2006

% % $’000 $’000

South West Alliance of Rural Hospitals (SWARH) Information Australia 10.65 10.65 142 225

Technology

The voting power of all partners in the Joint Venture are the same.

2007 2006

$’000 $’000

Share of Jointly Controlled Entities loss 82 35

Total 82 35

PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07 61


Portland District Health

Notes to and forming part of the Financial Statements

for the year ended 30 June 2007

NOTE 7: INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (continued)

JOINT VENTURE

Portland District Health has a joint venture interest of 10.65% in the South Western Alliance of Rural Health (SWARH) whose principal activity is the

implementing and processing of an information technology system and an associated telecommunication service suitable for use by each member agency.

Our share of assets, liabilities and operating result is: 2007 2006

$’000 $’000

Current Assets 84 68

Non-Current Assets 280 240

Share of Total Assets 364 308

Current Liabilities 222 83

Share of Total Liabilities 222 83

Net Share of Joint Venture Assets 142 225

Share of Current Year Profit/(Loss) (82) (35)

Capital Commitments 19 59

Operating Lease Commitments 15

Operating Contracts Commitments 253

NOTE 8: RECEIVABLES

2007 2006

Current $’000 $’000

Patient Fees 265 215

Trade Debtors 228 225

Accrued Revenue - DHS - 385

GST Receivable 198 128

Total 691 953

Less Provision for Doubtful Debts (9) (12)

Total Current Receivables 682 941

Non Current

DHS Debtor (LSL) 269 434

Total Non Current 269 434

Total Receivables 951 1,375

NOTE 9: OTHER FINANCIAL ASSETS

2007 2006

$’000 $’000

Money Held in Trust 31 19

Refundable Entrance Fees 62 109

SRS Ingoing Debtors 110 89

Total Other Assets 203 217

NOTE 10: INVENTORY

2007 2006

$’000 $’000

Pharmaceuticals - at cost 63 56

Catering Supplies - at cost 14 16

House Keeping Supplies - at cost 15 15

Medical and Surgical Supplies - at cost 107 102

Administration Stores 37 30

Total Inventory 236 219

62 PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07


Portland District Health

Notes to and forming part of the Financial Statements

for the year ended 30 June 2007

NOTE 11: PAYABLES

2007 2006

$’000 $’000

Trade Creditors 928 707

Accrued Expenses 1,723 415

GST Payable 313 241

Total Payables 2,964 1,363

NOTE 12: INTEREST BEARING LIABILITIES

2007 2006

Current $’000 $’000

Australian Dollar Borrowings:

- Loan - Treasury Corporation Victoria 171 171

Total Australian Dollar Borrowings 171 171

Non-Current

Australian Dollar Borrowings:

- Loan - Treasury Corporation Victoria 1,436 1,619

Total Australian Dollar Borrowings 1,436 1,619

Total Interest Bearing Liabilities 1,607 1,790

Current

- Secured Long term fixed interest loan with Treasury Corporation Victoria 171 171

Non-Current

- Secured Long term fixed interest loan with Treasury Corporation Victoria 1,436 1,619

The approved Bank Overdraft Limit is $800,000

Finance Costs of the Health Service incurred during the year are accounted for as follows:

Amount of finance costs recognised as expense 127 110

NOTE 13: EMPLOYEE BENEFITS 2007 2006

$’000 $’000

Current

Long Service Leave

- short-term benefits at nominal value 254 258

- long-term benefits at present value 84 83

Annual Leave

- short-term benefits at nominal value 1,232 1,156

- long-term benefits at present value 335 326

Accrued Wages and Salaries 678 467

Accrued Days Off 45 50

Total Current Employee Benefits 2,628 2,340

Non-Current

Long Service Leave 1,917 1,928

Total Non-Current Employee Benefits 1,917 1,928

Movement in Long Service Leave

Balance 1 July 2,269 2,167

Provision made during the year 213 230

Settlement made during the year (227) (128)

Balance 30 June 2,255 2,269

The following assumptions were adopted in measuring present value:

2007 2006

Weighted Average Increase in employee costs 2.8% 2.7%

Weighted average Discount Rates 2.4% 2.3%

Weighted Average Settlement period 12.9 12.8

PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07 63


Portland District Health

Notes to and forming part of the Financial Statements

for the year ended 30 June 2007

NOTE 14: OTHER LIABILITIES Total Total

2007 2006

$’000 $’000

Provision for Fee Sharing 45 39

Monies Held in Trust - Sea View House 62 109

- Seymour Cundy Wing 31 19

Other - PCP - 51

Total 138 218

NOTE 15: COMMITMENTS

As at 30th June 2007, Portland District Health had commitments totalling $4,295,000 which includes the contribution made to

South West Alliance of Rural Hospitals of which Portland District Health is committed for a further 5 years.

Not Later than Later than

one year one year and

not later than Total Total

ten years 2007 2006

Capital Commitments $’000 $’000 $’000 $’000

Residential Aged Care Facility and DPU 2,306 - 2,306 6,730

Other - SWARH 19 - 19 59

Sub-Total 2,325 - 2,325 6,789

Lease Commitments

Operating Lease 63 48 111 83

Operating Contracts Commitments (SWARH) 252 - 252 -

Sub-Total 315 48 363 83

Total 2,640 48 2,688 6,872

NOTE 16: EQUITY

2007 2006

$’000 $’000

Accumulated Surpluses/(Deficit)

Balance at Beginning of Year (3,781) (2,316)

Net result for the Year (509) (1,465)

Transfer to Reserves: (1,725) -

Accumulated Surplus/(Deficit) at the end of the financial year (6,015) (3,781)

Contributed Capital

Balance at the beginning of the reporting period 27,860 25,568

Capital Contributed From the Victorian Government 5,635 2,292

Balance at the end of the reporting period 33,495 27,860

Land and Buildings Asset Revaluation Reserve

Balance at beginning of reporting period - -

Revaluation Increment/(Decrement)

- Land 1,630 -

- Buildings 6,237 -

Balance at the end of the reporting period 7,867 -

Represented by:

- Land 1,630 -

- Buildings 6,237 -

Restricted Specific Purpose Reserve

7,867 -

Balance at the beginning of the reporting period - -

Transfer to Restricted Specific Purpose Reserve 1,725 -

Balance at the end of the reporting period 1,725 -

64 PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07


Portland District Health

Notes to and forming part of the Financial Statements

for the year ended 30 June 2007

NOTE 17: PROPERTY, PLANT AND EQUIPMENT 2007 2006

$’000 $’000

At Valuation

Crown Land (at 2007 Valuation) 4,530 2,900

Total Land 4,530 2,900

Buildings

Buildings under Construction 7,145 1,207

Buildings at Cost - 393

Less Accumulated Depreciation & Impairment - 2

Buildings (at 2007 Valuation) 27,321 22,900

Less Accumulated Depreciation & Impairment - 1,718

Total Buildings 34,466 22,780

Plant and Equipment at Cost

Plant & Equipment 6,681 6,523

Less Accumulated Depreciation and Impairment 4,873 4,454

Total Plant and Equipment 1,808 2,069

Medical Equipment at Cost

Medical Equipment 2,960 2,371

Less Accumulated Depreciation and Impairment 2,075 1,905

Total Medical Equipment 885 466

Computers and Communication at Cost

Computers and Communication 1,659 1,617

Less Accumulated Depreciation and Impairment 1,581 1,532

Total Computers and Communication 78 85

Other Equipment at Cost

Other Equipment 713 609

Less Accumulated Depreciation 477 414

Total Other Equipment 236 195

Motor Vehicles at Cost

Motor Vehicles 552 572

Less Accumulated Depreciation and Impairment 358 318

194 254

Total Property, Plant & Equipment 42,197 28,749

Reconciliation of the carrying amounts of each class of land, buildings, plant & equipment at the beginning

and end of the current and previous financial year are set out below:

Crown Buildings Plant & Medical Computer Other Motor Total

Land Equipment Equipment Equipment Equipment Vehicles

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Balance at 1 July 2005 2,900 22,147 2,405 610 327 246 313 28,948

Additions - 1,207 254 42 87 17 44 1,651

Disposals - - (143) - - - (16) (159)

Adjustment on restatement of SWARH - - - - (101) - - (101)

Depreciation Expense - (574) (447) (186) (228) (68) (87) (1,590)

Balance at 1 July 2006 2,900 22,780 2,069 466 85 195 254 28,749

Revaluation 1,630 6,237 - - - - - 7,867

Additions - 6,024 158 589 42 104 41 6,958

Disposals - - - - - - (8) (8)

Depreciation Expense - (575) (419) (170) (49) (63) (93) (1,369)

Balance at 30 June 2007 4,530 34,466 1,808 885 78 236 194 42,197

PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07 65


Portland District Health

Notes to and forming part of the Financial Statements

for the year ended 30 June 2007

NOTE 18: LEASED ASSETS

Total

Total

2007 2006

$’000 $’000

Cost

Finance Leased Assets

- Plant & Equipment - 6

less Accumulated Amortisation - (6)

Total Written Down Value - -

Reconciliation of the carrying amounts of Leased Assets at the beginning

and end of the current and previous financial year are set out below

Leased Assets Leased Assets

$’000 $’000

Carrying amount at start of year - 4

Amortisation Expense - (4)

Carrying amount at end of year - -

NOTE 19: RECONCILIATION OF NET RESULT FOR THE YEAR TO NET CASH INFLOW/(OUTFLOW)

FROM OPERATING ACTIVITIES

2007 2006

$’000 $’000

Net Result for the Year (509) (1,465)

Depreciation 1,369 1,590

Long Service Leave Expense 211 267

Long Service Leave Paid (213) (221)

Net Gain on Sale of Plant & Equipment (23) 3

Changes in Operating Assets and Liabilities:

Increase/(Decrease) in Payables 1,361 167

Increase/(Decrease) in Employee Benefits 277 228

Increase/(Decrease) in Other Current Liabilities (263) (97)

(Increase)/Decrease in Prepayments - 11

(Increase)/Decrease in Stores (17) 3

(Increase)/Decrease in Receivables 259 46

(Increase)/Decrease in Other Current Assets 179 (113)

Net Cash Flows From Operating Activities 2,631 419

66 PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07


Portland District Health

Notes to and forming part of the Financial Statements

for the year ended 30 June 2007

NOTE 20: LEASE LIABILITIES

Aggregate Lease Expenditure contracted for at Balance Date. 2007 2006

Operating Lease $’000 $’000

Not later than one year 63 55

Later than 1 but not later than five years 48 28

Total 111 83

NOTE 21: CONTINGENT LIABILITIES/ASSETS

As at balance date the Board of Management is unaware of the existence of any contingent liabilities/assets that may have a material effect

on the Operating Statement as a result of any future event which may or may not happen.

NOTE 22: SUPERANNUATION

Superannuation contributions for the reporting period are included as part of employee benefits and on costs in the Operating Statement of the Hospital.

The name and details of the major employee superannuation fund and contributions made by the Hospital are as follows:

Contribution for the year 2007 2006

$000 $000

Health Super Fund 1,522 1,497

Total 1,522 1,497

The bases for contributions are determined by the various schemes.

The unfunded superannuation liability in respect to members of State Superannuation Schemes and Health Super Scheme is not recognised in the Balance Sheet.

Portland District Health’s total unfunded superannuation liability in relation to these funds has been assumed by and is reflected in the financial statements of the Department

of Treasury and Finance.

The above amounts were measured as at 30 June of each year, or in the case of employer contributions they relate to the years ended 30 June. All employees of the agency

are entitled to benefits on retirement, disability or death from the Government Employees Super Fund. This fund provides defined lump sum benefits based on years of service

and annual average salary.

In accordance with the Directions of the Minister for Finance under the Financial Management Act 1994, contributed income sector bodies are required to make certain

disclosures regarding superannuation. Accordingly the following items are disclosed;

(i) Name of the Fund - Health Super Fund

(ii) Total contributions made by the Hospital to the schemes during 2006-07 were $1,522,155

(iii) As at balance date there were no outstanding contributions in respect of the 2006-07 financial year;

(iv) Contributions are paid in accordance with the Hospitals Superannuation Act 1988 and the State Superannuation Act 1988;

(v) There were no loans made from the Hospitals Superannuation Fund to the Hospital.

NOTE 23: REMUNERATION OF AUDITORS

Audit fees paid to the Victorian Auditor-General’s Office

for audit of the Hospitals financial report

Total

Total

2006-07 2005-06

$’000 $’000

Paid as at 30 June 2007 2 2

Payable as at 30 June 2007 9 9

PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07 67


Portland District Health

Notes to and forming part of the Financial Statements

for the year ended 30 June 2007

NOTE 24: SEGMENT REPORTING

Hospital Hospital RACS RACS Primary Primary Other Other Total Total

Care Care

2007 2006 2007 2006 2007 2006 2007 2006 2007 2006

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Revenue

External Segment Revenue 17,054 17,041 2,093 2,068 1,695 1,582 5,888 3,965 26,730 24,656

Total Revenue 17,054 17,041 2,093 2,068 1,695 1,582 5,888 3,965 26,730 24,656

Result

Segment Result (534) (1,032) (183) (242) (204) (100) 818 36 (103) (1,338)

Net Result from ordinary Activities (534) (1,032) (183) (242) (204) (100) 818 36 (103) (1,338)

Interest Expense (30) (2) - - - - (97) (108) (127) (110)

Interest Income 3 18 - - - - 40 - 43 18

Share of Net Result of Joint Ventures (31) (29) (15) (3) (19) (1) (17) (2) (82) (35)

using the Equity Model

Net Result for Year (592) (1,045) (198) (245) (223) (101) 744 (74) (509) (1,465)

Other Information

Segment Assets 45,027 30,566 612 585 175 169 512 398 46,326 31,718

Total Assets 45,027 30,566 612 585 175 169 512 398 46,326 31,718

Segment Liabilities 8,586 7,305 208 195 75 51 145 88 9,014 7,639

Total Liabilities 8,586 7,305 208 195 75 51 145 88 9,014 7,639

Investments in associates and joint

venture partnerships 130 207 8 12 3 4 1 2 142 225

Acquisition of property, plant and

equipment and intangible assets 1,384 1,472 5,494 45 29 58 51 76 6,958 1,651

Depreciation and amortisation expense 804 956 236 225 101 96 228 313 1,369 1,590

The major product/services from which the above segments derive revenue are:

Business Segments

Hospital

Nursing Home

Primary Health

Supported Residential Service

PDH Medical Centre

Services

Acute Health

Aged Care

Primary Care

Supported Residential Service

Medical Clinic

Geographical Segment

Portland District Health operates predominantly in the South West of Victoria. All revenue, net surplus from ordinary activities and segment assets relate

to operations in Portland, Victoria.

68 PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07


Portland District Health

Notes to and forming part of the Financial Statements

for the year ended 30 June 2007

NOTE 25: VALUATION OF LAND & BUILDINGS

Portland & District Hospital contracted the services of Alison McLeod AAPI from Land Link Property Group to revalue the land and buildings owned by

Portland & District Hospital. Valuations were completed on 30/6/07 and totalled $4,530,000 for Land (previously $2,900,000 - 2003) and $27,321,000 for

buildings (previously $22,900,000 - 2003).

NOTE 26: RESPONSIBLE PERSON RELATED DISCLOSURES

(a) Responsible Persons

The names of persons who were Responsible Persons at any time during the financial year for the purposes of the Financial Management Act 1994 are:

Mr. Greg Andrews Mrs. Merlyn Menzel Mr. Vincent Gannon

Ms. Tanya Simmonds Mr. James Harpley Mr. William Collett

Mr. Bruce du Vergier Mr. Mike Noske Mr. Brian Sparrow

Ms. Marianne Kuljis

Accountable Officer

Mrs. Marie Shea (resigned 31 August 2007)

Mr. John O’Neill (appointed 4 July 2007)

Responsible Ministers

The Hon. Bronwyn Pike MP

(b) Remuneration of Responsible Persons

The number of Responsible Officers whose total remuneration exceeded $110,000 are shown below in their relevant income Bands:

2007 2006

No.

No.

$0 - $9,999 10 10

$170,000 - $179,999 1 -

$160,000 - $169,999 - 1

11 11

(c) Amount Attributable to other transactions with Responsible persons:

Total

Total

Responsible Person Transaction 2007 2006

$’000 $’000

Nil

(d) Executive Officer Remuneration

The number of Executive Officers whose total remuneration exceeded $110,000 are shown below in their relevant income bands.

2007 2006

No.

No.

$230,000 - $239,999 1 -

$220,000 - $229,999 - 1

$130,000 - $139,999 1 -

$120,000 - $129,999 2 -

$110,000 - $119,999 - 3

4 4

PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07 69


Portland District Health

Certification

BOARD MEMBERS, ACCOUNTABLE OFFICER’S AND CHIEF FINANCE

AND ACCOUNTING OFFICER’S DECLARATION

We certify that the attached financial statements for Portland District Health have been prepared in accordance

with Standing Direction 4.2 of the Financial Management Act 1994, applicable Financial Reporting Directions,

Australian Accounting Standards and other mandatory professional reporting requirements.

We further state that, in our opinion, the information set out in the Operating Statement, Balance Sheet, Statement

of Changes in Equity, Cash Flow Statement and Notes to and Forming Part of the Financial Statements, presents

fairly the financial transactions during the year ended June 2007 and financial position of Portland District

Health at 30 June 2007.

We are not aware of any circumstance which would render any particulars included in the financial statements

to be misleading or inaccurate.

Mr Greg Andrews

Chairperson

Mr John O’Neill

Chief Executive Officer

Mr. Wayne Armistead

Chief Finance & Accounting Officer

Dated the 28th of August 2007

Portland, Victoria

70 PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07

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