Portland District Health Annual Report 2008 - South West Alliance of ...

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Portland District Health Annual Report 2008 - South West Alliance of ...

2007/08

PROVIDING SAFE AND COST EFFECTIVE PRIMARY, ACUTE AND AGED

CARE SERVICES TO RESIDENTS OF THE PORTLAND DISTRICT


contents

PRESIDENT’S REPORT 1

CEO’S REPORT 3

BOARD PROFILES 10

ORGANISATIONAL CHART 12

FINANCIAL PERFORMANCE 13

COMPARATIVE FINANCIAL ANALYSIS 15

CLINICAL SERVICES REPORT 16

SERVICES PROVIDED

BY PORTLAND DISTRICT HEALTH 31

SERVICE ACTIVITY 32

QUALITY ACTIVITIES 33

EMPLOYEE RECOGNITION

AND RESIGNATIONS 35

VOLUNTEER RECOGNITION 37

MEDICAL OFFICERS 39

DONATIONS 40

GOVERNANCE 41

LIFE GOVERNORS 44

FINANCIAL STATEMENTS

cd supplied

PROFILE

Portland District Health was formed on 1 July 2003

through the amalgamation of the Portland and

District Community Health Centre and the Portland

and District Hospital.

We provide an integrated delivery of health services

which comprises acute, primary health and aged

residential care services. In 2002, Portland District

Health opened Sea View House. Located within the

hospital campus, this facility provides supported

residential care for up to 58 residents.

The amalgamation, expansion and creation of

these services has seen an improvement in patient,

client and resident access to a wide variety of

services. It has, in effect, created a “one-stop-shop”

health delivery service where the community’s

needs are streamlined efficiently and effectively.

Portland District Health is ACHS and Aged Care

accredited.

OUR MISSION

To provide safe and cost-effective primary,

acute and aged care services to residents of

the Portland district.

OUR VISION

Portland District Health will deliver excellence in

health services through continually challenging

ourselves to do better and creatively meeting the

needs of the community by listening, living and

working together.

• 24-hour Accident and Emergency Department

• 29 acute inpatient beds

• 23 sub-acute inpatient beds

• Eight bed Day Procedure Unit

• Two operating theatres (with provision for three)

• No waiting list for elective surgical procedures

• 30 high care aged care residential beds

• 58-bed supported residential service, Sea View House

• Two service locations

• 384 staff

• 265.06 equivalent full time staff


president’s report

Greg Andrews

IT IS WITH GREAT PLEASURE THAT I PRESENT PORTLAND

DISTRICT HEALTH’S ANNUAL REPORT FOR 2007/08.

After serving six years on the Board of Management

of Portland District Health, with the last two years

as President, I am delighted to report that our health

service is in far better shape than previous years.

The Board of Management has strived tirelessly to

achieve the goal of becoming the best regional health

service in Victoria, and I can report that we have taken

solid and important steps towards that goal. Clearly,

the board’s early strategic decisions have provided

a solid foundation for the year under review.

I can report that the combined efforts of our board and

management team have seen many of those issues put

behind us, and importantly, clear plans are in place to

address the remaining challenges. This is a significant

step forward for Portland District Health.

An important change was the successful re-establishment

of the Medical Staff Group, which has now become a more

cohesive and supportive meeting forum for our medical

staff. These medical meetings are now complemented by

weekly clinical meetings. I would like to especially thank

Dr Michael Martin for his work and leadership in reviving

regular visiting medical officer meetings.

Dr Martin retired from Portland District Health early in

2008, and Dr Adebayo Jolayemi took over as chair of the

Medical Staff Group in early 2008. I would like to thank

Dr Jolayemi for carrying out this role as well as for his

contributions to the board’s deliberations.

I am pleased to report

that the 2007/08 year

produced an operating

result significantly

better than budget.

To better appreciate the challenges confronting

the board, readers of our annual report need only

to turn to the Aspex Consulting’s report to the board on

its five year Clinical Services Plan and Model of Care.

In particular, I refer to issues and challenges such as

financial viability, clinical and corporate governance,

leadership and communication, workforce mismatch,

culture and poor morale, a lack of community

confidence and extended periods of uncertainty

and instability.

Harbourside Lodge resident Blanche McDiven and

Activities Co-ordinator Riemie Gunsser

ANNUAL REPORT 07/08


The financial viability of our health service has been

the subject of considerable concern and debate for

many years among our board, the Department of Human

Services and external auditors. I am pleased to report

that the 2007/08 year produced an operating result

significantly better than budget, and Portland District

Health will budget for a small operating surplus for the

coming financial year.

The Portland community has a strong sense of regional

pride, and that pride has seen solid attendances at our

public forums as we worked with our community to build

the public’s understanding of the changes taking place

within our health service. I would like to acknowledge

the board’s appreciation for the very positive community

support shown to our health service over the past year.

As the outgoing president and on behalf of the board

I would like to sincerely thank our many volunteers who

have contributed thousands of hours to our services in

support of our patients and clients. Not always visible

to the public, their warmth and generosity are intrinsic

to our health service.

To the professional team of medical, nursing, allied

health and support personnel who deliver patient care

services year in and year out, the board thanks you

most sincerely. Your enthusiasm and commitment is

undoubtedly one of our strengths, and the positive

outcomes from patient satisfaction survey results reflect

the care and service delivered by our skilled staff.

The board acknowledges and sincerely thanks all

medical staff for their ongoing contribution to the

hospital and for their provision of quality patient care

to the community.

Finally, I thank my colleagues on the Board of

Management for their support and contributions

to the effective governance of Portland District

Health throughout the year. Members of the Board of

Management, who, as volunteers, serve as community

representatives on the necessary committees, are

required to ensure an effective health service.

I also warmly acknowledge and thank our two ministerial

delegates, Dr Heather Wellington and Michael Rhook,

whose special expertise and wisdom have assisted the

board to fulfil its governance role.

I wish the incoming board every future success in

meeting the many exciting challenges that lie ahead.

The Annual Report is prepared for the Minister for Health

the Hon. Daniel Andrews MP, Member for Mulgrave

and through him, the Parliament of Victoria and the

Victorian people.

In accordance with the Financial Management Act 1994,

I am pleased to present the Report of Operations for

Portland District Health for the year ending 30 June 2008.

GREG ANDREWS

President

24 September 2008

Operating Suite Nurse Unit Manager Tersia Steyn

and Division 1 Nurse James Xing


Portland District Health


chief executive’s report

IT IS PLEASING TO REPORT THAT THE PAST YEAR STANDS AS A PROUD

TESTIMONY TO THE ABILITY OF OUR BOARD OF MANAGEMENT AND STAFF TO

MEET THE CHALLENGES AND UNCERTAINTIES OF CHANGE. WE HAVE NOW

RECORDED SOLID POSITIVE RESULTS ACROSS OUR HEALTH SERVICE.

John C O’Neill

Portland District Health has started a journey towards

becoming the best small regional health service. While

that journey has a way to go, we are well down the road

towards reaching our goal of providing a sustainable and

financially viable local health service.

CLINICAL SERVICES FRAMEWORK

Our journey started when President Greg Andrews and

Vice-President Jim Harpley met with Health Minister

Bronwyn Pike in May 2007. The Minister endorsed the

board’s action plan to address:

• The decline in patient activity;

• The escalation in operating deficits; and

• Various clinical and corporate governance issues.

Arising from the meeting with Ms Pike came:

• The appointment of two Ministerial Delegates;

• The appointment of an Interim Chief Executive; and

• The engagement of Aspex Consulting to prepare a

five year Clinical Services Plan and Model of Care.

Following a six month study and extensive public

consultation over a three month period, the board

endorsed the Clinical Services Plan and Model of Care

at its May 2008 meeting.

The board’s decision enabled Portland District Health to

affirm its direction as a local health service providing

a range of acute, sub-acute, residential aged care and

primary and ambulatory health services to the local

catchment area. To achieve this new model of care,

Portland District Health recognises that services must be

delivered within the framework of:

John C O’Neill

BEc DPA AFCHSE AFAIM

For 18 years John has held significant and

pivotal management portfolios in the delivery

of health care services in public and private

settings in both New Zealand and Australia

including at La Trobe Regional Hospital, the

Victorian Rehabilitation Centre, General

Manager Psychiatric Services Department of

Human Services and Regional Director of Health.

Many of these positions have required John

to take on significant change management

and leadership responsibilities, and have

called on him to undertake major structural

reorganisation.

John has been a board member of the Young

Offenders Board and the Victorian Rehabilitation

Centre as well as Chairman of Victorian and

Tasmanian Cardiac Retrieval Services and the

Corrections Health Board.

John holds qualifications in economics and

public administration and is an associate fellow

of the Australian College of Health Service

Executives and the Australian Institute of

Management.

He is married to Maree and an avid supporter of

the Melbourne Football Club, keen tennis player

and has owned slow race horses.

• Sustainability;

• Service integration;

• Workforce capacity; and

• Service quality.

ANNUAL REPORT 07/08


Professor Brendan Crotty, Deakin University

To cement the board’s objective of achieving a

long-term sustainable acute health service, the

board will consider the following goals over the

coming twelve months:

1. A broader medical and surgical base;

2. The recruitment of an emergency physician,

two general physicians, a general surgeon and

three GP obstetricians;

3. The establishment of a Centre for Advanced

Primary and Ambulatory Care; and

4. Prepare for Deakin University Medical Students

in 2010.

Greg Andrews President, Gail Tierney MP and John Osbourne

- Portland Aluminium Operations Manager

These goals have been developed taking into account

the rapid changes in clinical practice, community

expectations, pharmacology and technology. These

advancements have led to:

• A reduced need for bed day services;

• Continuing decline in bed days and average length

of stay;

• Increased propensity for active intervention for

the elderly;

• Growth in the management of chronic conditions

and community-based services; and

• Transition from bed-based services to primary care.

The centre aims to address

the shortage of emergency

medical services in the region,

and contribute to teaching

programs co-ordinated by the

Deakin Medical School.

MAJOR INITIATIVES

The establishment of the Centre for Rural Emergency

Medicine was initiated this year. Other major service

improvements included the opening of Harbourside

Lodge, the Day Procedure Unit and a Sub-Acute Unit

and the recruitment of numerous dental staff.

The Centre for Rural Emergency Medicine

The Centre for Rural Emergency Medicine is a

partnership between Alcoa, Deakin University, South

West Healthcare, Portland District Health, the Victorian

Government’s Department of Human Services (DHS) and

the local community. The estimated annual running cost

of the centre is $240,000. Alcoa has agreed to provide

$100,000 annually for three years towards research

and training infrastructure and support costs, including

the research and training components of the director’s

salary, and has made a commitment to review the

partnership before the end of 2009 with the intent of

extending support for a minimum of two further years.

The centre aims to address the shortage of emergency

medical services in the region, and contribute to

teaching programs co-ordinated by the Deakin Medical

School. It will also provide emergency medical

training for junior and senior medical staff at both

health services and for regional medical practitioners,

including GP’s.


Portland District Health


An important outcome arising from the establishment of

an emergency medicine centre will be the development

and implementation of best practice in emergency

medicine for multidisciplinary teams working in hospitals

and ambulatory healthcare services in regional and rural

settings throughout Australia. The research, teaching

and clinical programs of the centre will engender a

culture of evidence-based practice with an emphasis on

safety and quality.

Sub-Acute nurses Eileen Churchwood, Chantal Elford

and Pharmacy Nurse Gaynor Denboer

Dr Tim Baker has been appointed as the inaugural

Clinical Associate Professor of Emergency Medicine and

is expected to take up duties in early 2009.

Opening of new Residential Aged Care Wing

Harbourside Lodge was officially opened by Aged Care

Services Minister Lisa Neville on 30 November.

Work on this 30-bed unit was completed in September,

and residents of the hospital’s Seymour Cundy Wing

were transferred to Harbourside Lodge without incident

over two days to help them settle into their new

accommodation.

The total project budget was $9.035 million.

Day Procedure Unit

An eight-bed Day Procedure Unit was commissioned with

the first patient admitted on 17 July 2007.

The Dipalo family joined board members and staff to

celebrate the official opening of the DPU on 4 October

2007 by DHS Barwon South West Region Director Jan

Snell. The Dipalo family generously donated $318,786

towards the construction of this new unit in recognition

of the late Milan and Thelma Dipalo.

On behalf of all of our patients and the community,

Portland District Health sincerely thanks the Dipalo

family for their generous donation.

South Ward reopened

We re-opened south ward as a Sub-Acute Unit in October

to accommodate between 15 and 18 medical patients

and provide services for:

• Aged patients awaiting placement in residential care;

• Aged patients awaiting assessment by Aged Care

Assessment Services (ACAS);

• Rehabilitation patients;

• Palliative care (except terminal phase); and

• Chronic medical conditions.

Lisa Neville MP and residents

ANNUAL REPORT 07/08


Addressing a Dental Crisis

Recruiting nine dentists to work at Portland

District Health helped earn Karen Madden April’s

Employee of the Month recognition.

The Dental Program

Manager and Dental

Therapist joined Portland

District Health in October

2006, and loves being

able to recruit and help

maintain staff.

Karen had her work cut

out for her when she joined Portland District

Health because there was no staff clinician to

provide public dental services to the community.

“I was pleased to be able to offer a much-needed

service,” she said.

DENTAL HEALTH SERVICES

Our Dental Clinic enjoyed an overwhelmingly successful

year with the recruitment of additional dentists. Dental

staff numbers have grown and now comprise four

public dentists and two private dentists, a prosthesist

(all working in a part-time capacity), three dental

assistants, a receptionist and a manager, who is also a

dental therapist.

Average waiting times for general care and denture care

dropped considerably. By June, the average waiting

time for general care had been reduced to 1½ months

– down from 41 months in July 2007. The denture care

waiting time has also been reduced from 25 months to

18 months. Both waitlists are well below state targets

set at 24 and 26 months respectively.

The past year also saw the integration of the School

Dental Service with our Community Dental Program.

Combining both programs gives a wider range of patient

access to dental care at the one location.

She now treats patients aged up to 25 years old,

in addition to managing the day-to-day running of

the dental clinic.

By April, six dentists were visiting Portland

District Health part time to address Portland

District Health’s well-known long waiting list.

By June, the average waiting

time for general care had been

reduced to 1½ months – down

from 41 months in July 2007.

“She has shown outstanding commitment to

both her staff and the ongoing recruitment of

dentists,” her nomination for the recognition

said.

“Throughout all her endeavours she has shown

the upmost courtesy and respect to everyone she

comes across,” the nominee added.

Karen said she really does feel like she can make

a difference, helping the public to receive a high

level of oral care.

Her team also helps.

“I work with a fantastic group of people,” she said.

Dental Therapist Karen Madden and dental Assistant Erin Wilson

with Dental Assistant Amanda Richards acting as a patient


Portland District Health


A JUGGLING ACT

Juggling appointments

that can change at

short notice is Portland

District Health Specialist

Centre Practice Manager

Robyn McCabe’s field of

expertise.

CAPITAL WORKS AND EQUIPMENT

The Seymour Cundy Wing was refurbished during 2008.

This provided an opportunity to relocate the Specialist

Centre from rented residential accommodation to

modern and spacious consulting suites which will

increase our ability to attract further specialist services.

It also afforded the opportunity to rehouse District

Nursing; BreastScreen, volunteers, post-acute care

and discharge planning services. We also established

a multi-purpose staff training facility and new board

room. A capital grant of $350,000 from DHS enabled us

to complete this project in a timely manner.

Portland District Health gained funding for

environmental improvements ($144,510) as part of the

Council of Australian Governments’ Long Stay Older

Patients’ (LSOP) initiative, and we purchased new

equipment with this money.

DHS’s targeted equipment funding program allowed

Portland District Health to purchase:

• An endoscopy video camera system;

• An infant warmer;

• Five defibrillators; and

• Floor line electronic beds and specialised pressure

care mattress overlays.

She carries out the difficult task of satisfying

a range of doctors and their patients’

appointment needs efficiently, and is always

caring, according to her nomination for Employee

of the Month in March.

Robyn liaises with the large range of visiting

specialists and makes sure the clinic runs

smoothly.

“No task is too much trouble for her,” the

nomination read.

“I love all aspects of my work,” Robyn said,

adding that her ultimate goal is high quality

support for doctors as well as quality patient

care.

Robyn worked in General Practice for 20 years

before joining Portland District Health three

years ago for more of a challenge.

With the Portland District Health clinic having

recently expanded to service more patients

through additional visiting specialists, Robyn is

expected to thrive on the additional challenge!

ANNUAL REPORT 07/08


APPOINTMENT OF NEW BOARD MEMBERS

In November, the Board of Management welcomed

Alison McLeod and Andy Govanstone as new

appointments to the board, and saw the reappointment

of Greg Andrews and Vin Gannon until 30 June 2008.

The board also welcomed ministerial delegates,

Dr Heather Wellington and Michael Rhook.

Back left to right: Mike Noske, Jim Harpley, Brian Sparrow, Vin Gannon, Michael Rhook, Andy Govanstone

Front left to right: Bill Collett, Merle Menzel, Greg Andrews, Dr Heather Wellington and Bruce Du Vergier

Absent: Alison McLeod

Portland District Health has started

a journey towards becoming the

best small regional health service.


Portland District Health


VICTORIAN PUBLIC HEALTHCARE AWARDS

The Victorian Public Healthcare Awards 2007 recognised

the initiatives, expertise and dedication of health

services across Victoria. Health services both large and

small across the state nominated for the awards, with

many innovative service responses highlighted.

The theme of the 2007 awards was a demonstrated

commitment to collaboration, partnership, governance

and leadership.

MANY THANKS

During the year I was well supported by the President

and Chair of the Board of Management, Greg Andrews,

and by the other Board of Management members.

I acknowledge and thank them for their support and

contribution over the past year.

Many thanks to our volunteers who gave tirelessly of

their time and contributed to the smooth operation

of our local health service. Their continued dedication

to providing high quality service must be commended.

I also take this opportunity to thank our service

providers and the staff of Portland District Health who

work so hard to deliver a quality health service to our

community, and who have contributed to our success

of the past twelve months.

Category eight - Excellence in Health Promotion and

Prevention - saw Portland District Health’s entry

“Towards a Healthy Heart” win over the other finalists,

a drug education campaign submitted by the

Metropolitan Ambulance Service and sustainable farm

family’s entry from Western District Health Service.

I would particularly like to thank and acknowledge

Pat Turnbull, who has completed a huge task in

reconstructing Portland District Health’s financial

ledgers, and Vicki Taylor, who has provided extremely

professional administrative support to me and the

Board of Management.

THE YEAR AHEAD

Progressing aspects of our strategic direction, the

Clinical Services Plan and Model of Care, remains a

priority along with the recruitment of medical staff to

ensure a safe and sustainable health service. Another

key priority will be the development of a business

case in support of an integrated ambulatory care unit

in partnership with Deakin University and the Otway

Division of General Practice.

IN SUMMARY

In summary, 2007/08 has been a demanding year,

yet we can all be proud of Portland District Health’s

achievements. We look forward to the challenges and

opportunities that will come in the next twelve months.

In addition, rising wage pressure and inflationary costs

will see continued pressure on Portland District Health’s

financial viability.

JOHN C O’NEILL

Chief Executive

24 September 2008

ANNUAL REPORT 07/08


oard of management

Greg Andrews

PRESIDENT

Diploma Public Health

Greg served his second term

as a board member and was

elected President in 2006.

He represented the board

on the Remuneration and

Consultative Committees. He

is the Environmental Health

Officer at Glenelg Shire

Council. He finished his term

on the board at the end of this

financial year.

Mike Noske

SENIOR VICE PRESIDENT

B.Eng (Mech) Honours

Mike is serving his first term

as a board member. He

represented the board on

the Remuneration, Audit and

Finance and Clinical Quality and

Risk Management Committees.

He is a Keppel Prince Project

Manager and is the Director/

Manager of Emelen Pty. Ltd.

(Portland Print Services and

the Star Cinema).

Alison McLeod

TREASURER

B Business (Property),

Grad Dip Ag. Econ.

Alison is serving her first

term as a board member.

In addition to her Treasurer’s

role she chairs the Audit and

Finance Committee. Alison is a

Certified Practicing Valuer and

Director of Landlink Property

Group’s Portland office.

Jim Harpley

BOARD MEMBER

B. Metallurgy

Jim is serving his second

term as a board member.

He represented the board

on the Project Control Group.

He is a Senior Process Engineer

at Portland Aluminium.

Bill Collett

JUNIOR VICE PRESIDENT

PHC, MPS, FACPP

Bill was appointed to the

board in 2005. He has served

as Treasurer and Vice President

and represented the board

on the Audit and Finance and

Remuneration Committees

this year. Bill is a former

Mayor of Glenelg Shire, is

Secretary of the Maritime

Heritage Committee and is the

President of United Way.

Merle Menzel

BOARD MEMBER

Division 1 Nurse, Associate

Diploma Welfare Studies

Merle was a member of

the board since 2002. She

represented the board on

the Clinical Quality and Risk

Management Committee. She is

the Office Manager of R and M

Menzel Electrical Contractors

and a Bail Justice. She finished

her term on the board at the

end of this financial year.

10 Portland District Health


Vin Gannon

BOARD MEMBER

Vin served his third term as a

Portland District Health board

member. He is the Chief Executive

Officer of the Victorian Abalone

Divers Association, and Director of

the Prime Safe Board. He finished

his term on the board at the end

of this financial year.

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. and is the Chairperson

of the Southern Grampians

and Glenelg Primary Care

Partnership.

Andy Govanstone

BOARD MEMBER

Dip Appl. Sci. and B.A.(Hons)

Andy was appointed to the

board in November. He is a

Senior Biodiversity Officer with

the Department of Sustainability

and Environment, Secretary of

the Point Danger Coastal Reserve

Committee of Management, and

President of the Portland North

Primary School Council.

Brian Sparrow

BOARD MEMBER

Brian is serving his first

term as a board member.

He is a qualified chef and

has previously run his own

catering business. He has

served in the Australian

Defence Force for 12 years.

Dr Heather Wellington

MINISTERIAL DELEGATE

MB BS, BMedSci, BHA, LLB,

FRACMA, FAICD

Heather was appointed to

the board this year, and chairs

the Clinical Quality and

Risk Management Committee.

She is a medical practitioner

and lawyer with a background

in health management, policy,

governance and law. Previously

Director of Medical Services at

Geelong Hospital and Assistant Director, Services Planning

and Development in the Department of Human Services,

she works as a consultant to the health law practice of

national law firm DLA Phillips Fox. Heather was a member

of the Australian Council for Safety and Quality in Health

Care from 2000-2005 and between 2000 and 2008 was

Chairman of the Peter MacCallum Cancer Centre.

She is currently a director of GMHBA and was previously

an elected Councillor for the City of Greater Geelong

and a director of Barwon Water.

Michael Rhook

MINISTERIAL DELEGATE

MBA BBus CPA

Michael has experience

as Chief Financial Officer

and executive member of

metropolitan (Inner and

Eastern Health Network,

The Alfred Hospital, Royal

Children’s Hospital and

Women’s and Children’s

Health Network) and rural

hospitals (including Ballarat

and Goulburn Valley). He has undertaken financial

and performance reviews for health departments

in several states and for executives and boards of

management of small to large health services.

Michael has been a consultant since 2000 and works

in several states providing health, economic and

strategic planning services.

ANNUAL REPORT 07/08 11


organisational chart

BOARD OF MANAGEMENT

Chief Executive Officer

Quality Coordinator

Finance

Manager

Deputy

Cheif Executive

Officer

Director

Medical Services

(Vacant)

Director

of Nursing

Primary &

Community Care

- Chronic &

Complex Care

- Early Intervention

- Health Promotion

- Drug & Alcohol

- Dental

Career

Medical Officers

Visisting

Medical Officers

Accident &

Emergency

Services

Acute/Midwifery

HR Manager

Information

Technology

Pharmacy

Sub Acute/

Rehabilitation

Medical Imaging

Dialysis

Sub Regional

support by

Western District

Health Services

Building &

Engineering

Hotel Services

Health

Information

Supported

Residential

Services

Financial

Services

Operating

Services

Residential

Aged Care

12 Portland District Health


financial performance

THE 2007/08 YEAR PRODUCED AN OPERATING RESULT SIGNIFICANTLY BETTER THAN BUDGETED, AND

PORTLAND DISTRICT HEALTH WILL BUDGET FOR A SMALL OPERATING SURPLUS FOR THE COMING FINANCIAL YEAR.

The service has been under DHS financial close watch for

the past four years, and this will continue into the coming

financial year. The key reasons for DHS’s decision to place

Portland Distrct Health on financial close watch include:

• Liquidity ratio < 0.7 – (0.33 – 0.71)

• Sustained operating deficits over recent years:

2004-05 - $0.63 million 2006-07 - $0.985 million

The journey to rebuild the accuracy and completeness

of Portland District Health’s financial ledgers has

been demanding. I am especially indebted to Western

District Health Service Director of Corporate Services

Pat Turnbull and his team for their tireless and unerring

work over the past financial year. We can now report

with certainty.

In addition, at the beginning of 2007/08 we estimated

that our deficit for the year may be between $1.7 and

$2 million.

In August, Portland District Health and Western District

Health Service agreed to develop a sub-regional support

structure that would allow Portland District Health to

purchase financial services from WDHS. This decision was

made in light of the following:

- Being unable to verify the accuracy or completeness

of the general ledger;

- Cash requirements could not be determined with

certainty;

- We were unable to identify department or program

costs or their linkage to reporting systems; and

- We were unable to determine actual performance

and verify it accurately.

Over the past twelve months, the following actions have

been initiated:

• Development of a financial strategy;

• Preparation of internal and financial controls;

• Restructuring Portland District Health’s charter

and the terms of reference of the Audit and

Risk Committee;

• A call for independent audit committee members;

• Appointment of internal auditors, in partnership with

Western District Health Service;

• Model by-laws refreshed and modernised to reflect

contemporary health service practice; and

• Developing audit priorities for 2008 around internal

controls incorporating contract management,

payroll, VMO payments and so on.

OPERATING RESULT

The first measurement, net result from operations

before capital, provides the most realistic measurement

of Portland District Health’s financial performance in

terms of day-to-day operations of the service. It reflects

the financial success or otherwise of providing a range of

services within the constraints of the operational streams

of income available to it. In particular, it recognises

that health services are not funded for the cost of

depreciation. On this measure of profitability, Portland

District Health has delivered an improved result.

Examples of work undertaken to achieve this improved

result and address Portland District Health’s financial

situation have been:

• Installation of a robust system of internal controls

and financial controls, including authorised

delegations;

• Instigation of a Goods and Services Tax and Fringe

Benefit Tax compliance;

• Compilation and implementation of a Financial

Improvements Register totalling $629,000, with

$1.2 million expected during next financial year;

• A review of all major contracts, for example

radiology, physiotherapy, maternal and child health

services;

• Internal reviews of the catering, environmental

services and senior executive structure; and

• Tendering of food provisions.

The poor state of Portland District Health’s financial

ledgers that were handed to the incoming administration

left us not knowing the full extent of Portland District

Health’s operating deficit. I am therefore delighted to

report a small operating loss of $43,000.

ANNUAL REPORT 07/08 13


Harbourside Lodge staff Graduate Nurse Sarah Guo and

environmental services assistant Julie Lipscombe

AUTHORISED DELEGATIONS

Another element in building internal controls focussed

on the Instrument of Delegation, with the board

approving a revised Instrument of Delegation in line

with the board’s Operational Limitations Policy.

OCCUPATIONAL HEALTH REVIEW

Portland District Health’s WorkCover costs and injury

rates have previously been at an unacceptable level.

This year’s premium rose from $345,481 to $478,431.

2005/06 2006/07 2007/08

No of claims 8 16 4

Cost of claims $378,315 $761,332 $96,370

Days lost 251 1087 192

Portland District Health’s average premium is 2.54%

compared to an industry rate of 1.5%. The injury claims

are predominantly due to back, upper arm and stress

issues, with stress and upper arm injuries representing

the highest percentage of total claims.

A number of actions were initiated during the year to

raise the profile of Portland District Health’s WorkCover

performance:

• A more active injury management and return-to-work

program;

• A greater emphasis on a safe environment for staff

and patients;

• A review of Portland District Health’s occupational

health by Dr Cathy Woolner;

• JTA Corporation corporate consultants commissioned

to review our WorkCover claims history; and

• CGU Insurance undertook a claims review.

Returning To Work

When you’re injured, returning to work can be

a problem.

Danelle Pearce has helped many people from

Portland District Health do that through offering

them new challenges.

“This is really starting to pay off,” her nominee

for June’s Employee of the Month said.

The WorkCover Officer and Payroll Assistant

started working at

Portland District Health

four years ago.

Work cover can be a

very frustrating job, but

Danelle does not often let

this get the better of her.

“Danelle also has a

good rapport with our

WorkCover insurers, and

I feel they also respect her view and opinions,”

the nominee added.

Danelle decided to take on the role when she

wanted to try something new, and the gamble

turned out to be worthwhile.

She said she enjoys working in an organisation

the size of Portland District Health, where she

can “work with all levels of the organisation,”

and gets out of bed each day because she has

the opportunity to meet people from a wide

range of departments.

“Hopefully I can help get them back to work

following an injury,” she said.

These actions have delivered a reduced number of

claims, and significantly decreased their cost and the

number of working days lost.

14 Portland District Health


financial performance

OPERATING STATEMENT

For the Year ended 30 June 2008

Note Total Total

2008 2007

$’000 $’000

Revenue from Operating Activities 2 23,949 21,552

Revenue from Non-operating Activities 2 3,271 2,966

Employee Benefits 3 (19,066) (18,286)

Non Salary Labour Costs 3 (2,390) (2,265)

Supplies & Consumables 3 (1,772) (1,951)

Other Expenses From Continuing Operations 3 (4,035) (2,919)

Net Result Before Capital & Specific Items (43) (903)

Capital Purpose Income 2 951 1,972

Depreciation and Amortisation 4 (1,581) (1,369)

Finance Costs (87) (127)

Specific Expense (33) (82)

NET RESULT FOR THE PERIOD (793) (509)

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

COMPARATIVE FINANCIAL ANALYSIS

Description 2007/08 2006/07

$000’s $000’s

Total Expenses 28964 26999

Total Revenue 28171 26490

Operating Surplus/(Deficit) (793) (509)

Retained Surplus as at 1 July 2006 (6015) (3781)

Net Result for the Year (793) (509)

Transfer to Reserves (80) (1725)

Change in Accounting Policy (92)

Accumulated Surplus to 30 June 2007 (6980) (6015)

Total Assets 47375 46326

Total Liabilities 8419 9254

Net Asset 38956 37072

Asset Revaluation 8436 7867

Restricted Specific Purpose Reserve 1805 1725

Contributed Capital 27860 27860

Capital Contributed from the Victorian Government 783 635

Retained Earnings (6980) (6015)

Total Equity 38956 37072

ANNUAL REPORT 07/08 15


clinical services report

DURING 2007/08 THE DIRECTOR OF NURSING WAS

RESPONSIBLE FOR PROFESSIONAL LEADERSHIP

AND MANAGEMENT OF CLINICAL SERVICE DELIVERY

THROUGHOUT PORTLAND DISTRICT HEALTH.

The position was responsible for the following services:

Nursing administration

Nursing strategic

direction

Acute/midwifery

Sub-acute/rehabilitation

Accident and Emergency

Operating services

Dialysis

After Hours Nursing

Coordinators

Pharmacy

Information management

Harbourside Lodge

aged care

Sea View House

District Nursing

Discharge planning

Post-acute care

Allied health

• Diabetes Education

• Dietetics

• Podiatry

• Occupational Therapy

• Speech Therapy

• Physiotherapy

• Rehabilitation

Dental Health Services

Drug and Alcohol services

Counselling and Support Unit

Health Promotion Unit

Community Health

• Community Nursing

• Stomal Therapy

• Continence

• Respiratory

• Breast care

• Family planning

Maternal and Child Health

Nursing

Kathryn Eyre

Director of Nursing

RN Division 1, BN,

M Health Management,

Certificate of Finance,

AFCHSE, MRCNA

Kathryn has over 25 years experience in the

health industry, spanning various nursing

specialities, particularly in the rural and regional

sector. She was appointed to the Director

of Nursing role at Portland District Health in

February 2003; prior to this she held senior

nursing executive roles at both Kyabram and

Numurkah health services. Kathryn completed

her Masters in Health Management in 2001.

Kathryn’s main interest is seeing the development

and implementation of nursing service provision

to align with the needs of the community within

the specific rural location.

With the assistance of Assistant Director of Nursing

Maureen Patterson (who resigned from that role in

December 2007), and Acting Primary Care Manager

Annette Hinchcliffe, this role was also responsible for

patient advocacy issues, data management, chaplaincy

services and human resources.

The role has undergone significant changes during the

past 12 months as Portland District Health continues to

restructure to ensure effective and efficient management

across the organisation.

CLINICAL SERVICES OVERVIEW

Portland District Health provides acute care as part of an

integrated service delivery model. The service currently

provides 29 acute, 23 sub-acute and eight day surgery beds.

The nurse’s forum

Throughout the year our service delivery model has

been reviewed to ensure that care has been provided

both efficiently and effectively and within best-practice

guidelines.

16 Portland District Health


John O’Neill, Greg Andrews and Minister for Health

Daniel Andrews MP

During his visit to Portland on 18 January 2008, Minister

for Health Daniel Andrews announced Portland District

Health’s successful application for funding for specialist

medical equipment.

The funding, made available through the Department of

Human Services’ Targeted Medical Equipment Funding,

enabled the purchase of three defibrillators and state of

the art laparoscopic systems for use within our theatre

department.

This equipment will assist Portland District Health to

provide safer, optimal medical care to patients and

provide specialist medical equipment for our physicians,

surgeons and visiting specialists.

Day Proceedure Patient, Naomi Corcoran with Health Mininster

Danial Andrews MP

NURSES FORUM

International Nurses Day was celebrated at Portland

District Health this year through a nurse’s forum and

dinner. The theme ‘Making a Difference’ saw more

than 75% of Portland District Health nursing staff

come together and learn from guest speaker Gail

Jaensch from the Portland branch of the Make a Wish

Foundation.

Gail showed us how a small gesture is able to make

a difference in the lives of those with serious illness.

The evening provided lively discussion in identifying

strengths and weaknesses within the nursing domain

and looked at strategies that will provide confidence,

enthusiasm and support for our nursing staff personally

and professionally.

ACCIDENT AND EMERGENCY DEPARTMENT

The department has come a long way in the past 12

months and has been constantly striving to improve and

develop more effective and efficient ways of managing

issues and presentations while continuing to gain vital

experience through ongoing professional development.

The department is currently investigating ways to

introduce an advanced practice role for nursing staff.

Advanced practice roles enable experienced nursing

staff to manage the majority of minor injuries, whilst

severely ill patients will be managed more efficiently

with regards to pain relief and fluid management on

arrival. With Nurse Unit Manager Linzi Donlan having

successfully completed her Masters in Advanced Nursing

Practice, we now look forward to investigating options

to allow the introduction of this model of care.

The evening was a huge success, with special guest and

Make a Wish recipient Sienna Harper being presented

with tickets to The Wiggles Melbourne concert. We hope

to develop the forum into an annual event.

Associate Nurse Unit Manger Jacinta Watson and Division 1

nurse Nicola Taylor try out their plastering technique on

nursing student Caroline Ball

ANNUAL REPORT 07/08 17


Preparing for emergencies

Electrician and Safety Training Officer Bruce

Caslake is helping make Portland District Health

respond well to any serious emergency.

He earned May’s Employee

of the Month recognition

after thoroughly preparing

the hospital – and in the

future its staff – with the

new Victorian-standard

Incident Control System

(ICS).

“Bruce has completed

thorough research on the

topic to ensure the program is sound, appropriate

and beneficial to Portland District Health,

staff, clients and visitors,” his nominee for the

recognition said.

“He has been the main driver of ICS

implementation and has consistently and

relentlessly pursued the implementation of ICS

despite being the only “Sparkie” electrician for

Portland District Health for some time.”

Bruce truly loves his job.

He started working at Portland Hospital 20 years

ago and became involved in ensuring the facility

could be as safe as possible in the event of a fire

about 15 years ago.

He remains the facility’s electrician and Safety

Training Officer today.

“I’m passionate about Portland District Health,”

he said, adding that he feels his role helps the

community, too.

Associate Nurse Unit Manger Jacinta Watson demonstrates

how to use the Slit Lamp

All emergency nursing staff have rotated through the

Alfred Hospital Trauma Unit in 2008. This has provided

vital trauma experience and provided staff with an

insight into trauma care nursing.

At the end of August 2008, every member of staff within

the Accident and Emergency Department will hold an

Advanced Life Support Provider Certificate, ensuring

there is a member of staff with an Advanced Life

Support Certificate on duty at all times.

Two staff attended the Royal Victorian Eye and Ear

Hospital, gaining experience working alongside

emergency department staff. Royal Children’s Hospital

staff will return to Portland District Health for a second

time to deliver education on managing sick children.

The coming year is eagerly anticipated as we plan for

the development of an after hours clinic. Portland

District Health currently sees about 50 patients a week

for minor procedures or routine investigations, so the

proposed clinic will streamline these patients away

from emergency presentations, allowing staff to remain

focused on the more complex patients.

The Accident and Emergency Department will

continue to offer a highly efficient, quality service

to the community from a committed team of health

professionals.

With over 9,000 patients triaged for the reporting

period, 91% of all Emergency Department attendances

were seen within the required time.

18 Portland District Health


Sub-Acute nurses Julienne Stone and Geraldine Harley with

patient Laurie Willcox

Haemodialysis Matriarch

Margaret Humphries began haemodialysis to

manage her kidney failure as a result of chronic

illness in June 1997.

She is the Portland District Health Haemodialysis

Unit’s longest-serving client, and is considered the

matriarch of the unit.

All new patients and staff have gained valuable

insight from her experience and support, including

that her motto is, “don’t even think about dialysis

until the next time!”

Margaret has adapted well to the three day-aweek

regime with the support of her husband and

family.

She has a wonderful sense of humour, is an avid

football follower and loves the tennis.

The new dialysis chairs have her tick of approval

for comfort and versatility for both herself and

the staff.

DIALYSIS

The small team of dialysis-trained staff provide

haemodialysis three days a week to the people of

Portland and surrounding area. Currently we provide

care for eight patients. This is the maximum number

of patients that we are able to support.

In the past year we said farewell to Edward Zimbudzi,

an extremely valued staff member, who left us at the

end of February to further his career. He has been a

great loss to the team and the nursing staff in general.

The remaining team of Anne Mewha, Kylie Mirtschin,

Lesa Rees and Sharon Olsen are currently seeking the

services of another member to join the team.

The Portland District Health Dialysis Unit continues to

receive support from Ray Steenveld and Lisa Colquhoun

at Royal Melbourne Hospital/North West Dialysis Service,

through the training of new staff and competency

assessments. We also receive support from Barwon

Health and St Vincent’s Health.

All staff have attended workshops/seminars to maintain

and further their knowledge and skill levels. The

Certificate in Renal Dialysis is a basic requirement of all

dialysis staff and is completed through distance learning.

SUB-ACUTE CARE

The Sub-Acute Unit (South Ward) opened in October as

part of the DHS Longer Stay for Older Patient initiative.

This program, under the direction of Natalie Herbertson

and Angela Lane (Nurse Managers), allows older patients

more time to recuperate prior to discharge. The unit

cares for rehabilitation patients as well as those with

chronic diseases, and provides chronic pain management

and palliative care. It also looks after clients awaiting

assessment by the Aged Care Assessment Team (ACAT)

and those waiting for high-level or low-level supported

accommodation.

ANNUAL REPORT 07/08 19


Sub-Acute nurses have a break in the recently-opened unit

New ward boosts specialised care

Local identity David “Coops” Cooper received

62 days of extra special attention when he was

admitted into Portland District Health following a

severe stroke early in 2008.

The friendly shop keeper could have had his life

devastated after the incident, which left him

unable to walk, talk or move. He was warned that

his recovery was not guaranteed; he may never

have the complete use of his mind, speech, mobility

or independence again.

Sub-Acute Unit Manager Natalie Herbertson and Director of

Nursing Kathryn Eyre with Mr Bill Ough (now deceased)

Since opening we have had

approximately 85% capacity.

Since opening we have had approximately 85% capacity.

Our average age between 1 April and 30 June was 76

years and our average length of stay for the same period

was 11.56 days. With people over 65 making up about

16% of the population, this group accounts for 34% of

all hospital admissions. With the knowledge that our

population is ageing - people over the age of 85 will

have doubled by the year 2025 according to the DHS

- Portland District Health has made a concerted effort to

address the needs of our ageing community in a positive

way by becoming pro-active with this project.

Through involvement in this project the Sub-Acute

Unit has received $144,500 from DHS to improve the

environment within the unit. This funding has allowed

the purchase of new beds and pressure relieving

mattresses, lifting machines, electric recliners, tables

and chairs, anti-glare curtains and blinds, wheelchairs

and security-coded doors.

However, his

admission to the

Sub-Acute Unit

meant all of his

care was dedicated

to restoring,

maintaining and

optimising his

abilities in spite

of his debilitating

condition.

With the involvement of a speech pathologist,

physiotherapist, occupational therapist, diabetic

educator and dedicated nursing staff, the unit

embraced the values and aims of the Longer Stay

for Older Patients and rehabilitation programs, and

strove for the best possible outcomes for David.

Every day of David’s stay saw improvement through

therapy or practice, and he soon relearned speech,

movement and independence.

He was discharged from hospital in April expressing

thanks for the good care, and gave a big smile. His

only aid was a walking stick. Positive therapy and

determination had secured him his return home.

David remains living in his home and continues

to attend community rehabilitation provided by

Portland District Health. He continues to improve

and now walks independently without an aid.

20 Portland District Health


Hotel services staff members Jacqui Woodford and

Jackie Butcher

Surgical cases saw a decline over the past year;

however with the future plans of increasing surgical

lists through the engagement of a general surgeon and

a team of orthopaedic surgeons, we should see the

number of surgical cases increase over the 2008-09

period. In anticipation of these new surgeons arriving at

Portland District Health, there have been a number of

nursing staff involved in the preparation of the needs,

equipment and skills required to support the surgical

services. The staff have been able to work with and gain

valuable knowledge by visiting these surgeons and their

nursing teams to ensure that we provide the best care

to the patients here at Portland District Health.

ACUTE CARE

The Acute Unit has undergone a number of changes in

the past 12 months. The most recognised change has

been since the opening of the Sub-Acute Unit.

The Acute Ward under the direction of Acting Nurse

Manager Simone Taylor now attends to patients who

need medical and surgical care such as post-operative

and cardiac care, as well as those who are suffering

acute illness. This unit continues to look after them

until the person needs rehabilitation or is ready to be

discharged home.

Nursing staff have been in the process of assisting with

the upgrade of our High Dependency Unit to further

improve the quality of care. We are doing this by

upgrading equipment and reorganising the unit to enable

nurses to provide the best care to patients requiring this

specialised type of support.

The Acute Unit also continues to provide maternity care,

with 116 births during the year. Maternity care is also

provided to those mothers and babies born at other

facilities who wish to return to Portland District Health

to be closer to their families. Maternity care includes

postnatal care and domiciliary care/home visits. Care is

provided by midwives on the ward and modified caseload

midwives, who work flexible hours to provide a roundthe-clock

service where possible. With the assistance of

government funding, we have been able to purchase an

infant warmer to ensure newborn baby care is managed

with the most up-to-date equipment.

In the coming year we aim to secure additional medical

officers to contribute to our maternity service and to

investigate the implementation of clinical practice

guidelines for midwives. These initiatives will enhance

birthing services at Portland District Health.

Palliative Care remains an important service which

our nurses take great pride in. With the support of the

palliative care co-ordinator and the District Nursing staff

we are able to provide care and meet the needs of the

patients and loved ones at this very special time. Our

nursing team find this care extremely rewarding.

Palliative Care remains

an important service

which our nurses take

great pride in.

ANNUAL REPORT 07/08 21


The Day Procedure Unit

enhanced our patient flow

and made the peri-operative

experience a journey of

increased holistic support.

Central Sterilisation Service Department staff members

Pat Leyonhjelm and Susan Bailey Div 2 Nurse

OPERATING SERVICES

This year we consolidated new practices and procedures

and upskilled our operating services staff.

We retained three graduate nurses for peri-operative

nursing, employed an experienced peri operative nurse

educator and enrolled two staff into the postgraduate

Peri-operative Diploma course.

Thanks to generous government funding, our endoscopy

equipment was upgraded to a state of the art system

that complements our new endoscopy procedure room.

The new eight-bed Day Procedure Unit was opened

in October. This is a well-equipped facility with modern

equipment to ensure safe, high quality patient care.

This unit enhanced our patient flow and made the

peri-operative experience a journey of increased

holistic support.

The Pre-Admission Clinic, now located within the

Day Procedure Unit, is amongst a number of initiatives

implemented to ensure a smooth, uneventful process

of risk analysis, pre operative tests and post operative

support for our patients.

The Central Sterilisation Services Department (CSSD)

was equipped with a new modern instrument washer.

Workload within the department has increased by

30% due to increased activity from the Dental

Department as well as external sterilisation demand.

Validation for CSSD according to Standards ASNZ 4187

was successfully obtained in June 2008.

MEDICAL IMAGING SERVICES

Two significant changes were made during the year.

The Board of Management gave approval for a $500,000

equipment upgrade of the medical imaging department

with the purchase a new 16 slice Philips CT machine and

a colour Doppler ultrasound machine. The new 16 slice

Philips CT machine will deliver a very fast 20 frames per

second reconstruction time. The ultrasound machine

comes equipped with a high resolution colour monitor,

and fine detail probes which are capable of detecting

small splinters and foreign bodies, as well as small tears

in tendons. Colour Doppler ultrasound will image blood

vessels, and Portland District Health now offers a full

range of vascular services including leg arteries and

veins, and neck and arm vessels as well as all routine

ultrasound examinations.

We are especially indebted to the estate of the late

Mrs Glenys Simmons which made this radiology upgrade

possible

The Bendigo Radiology Service, replacing Western

District Radiology Services was awarded a five year

contract for the provision of radiology services to

Portland Distrct Health. The Bendigo Radiology Service

has provided both public and private medical imagining

services throughout central, northern and south

west Victoria for over 25 years. The new service will

incorporate a teleradiology service 24/7.

In the coming 12 months we will continue to explore and

develop more services for the community of Portland,

resulting in increased activity within our department.

22 Portland District Health


Divison 2 Nurse Lorrene Bartle, Division 2 nursing student

Annette Kerr and work experience student Lucinda Loft

Making fun with

co-workers

Noelene Mabbitt and her

friends helped build staff

morale at a time when

it was low by organising

Portland District Health’s

2007 Staff Revue.

The acute and Accident and Emergency

Department nurse said the out-of-hours

entertainment came after a turbulent 2006/07,

and increased the interaction of team-mates.

“To enjoy each other’s company and see each

other outside work makes our professional time

more productive,” she said.

But Noelene’s agenda wasn’t just to make life at

work easier.

“It was just for the fun as well!” she added.

On-the-job, Noelene educates and assesses

staff in Basic Life Support Education, and lists

challenging other staff to always be their best as

one of the most rewarding parts of her job.

She trained at Portland Hospital in the 1980s,

which stood her in good stead for employment

at the Royal Melbourne Hospital.

In 2000 she returned to Portland District Health,

and is happy to contribute to keeping a high

standard of healthcare in Portland.

She said she also has local knowledge of

healthcare expectations.

Noelene was recognised for her strong

contribution to Portland District Health when she

was named Employee of the Month in November.

EDUCATION AND TRAINING

Implementing the new Australian Resuscitation Council

guidelines has been the focus for the education team

this year. Led by Thea Brown, four staff members have

educated a large portion of Portland District Health

staff about new changes in guidelines to ensure the best

outcomes for the patient.

Across Portland District Health 16 staff have achieved

Basic Life Support competency. In addition, 25 clinical

nurses have obtained advanced skills in life support.

Thanks to generous government funding we have been

able to purchase a selection of cardiac defibrillators

for use across the organisation in support of emergency

resuscitation.

The education and training team continue to organise,

conduct and manage the education calendar and staff

support programs and provide or resource a wide range

of internal and external educational programs. The

Portland District Health commitment to developing

staff and maintaining competency is manifested by the

participation of staff in ongoing education.

Five new graduate nurses started working at Portland

District Health in 2008 to replace the five nurses

who completed the program in 2007. All of the 2007

graduates have continued their employment within

various departments of Portland District Health.

Regular in-service programs have been available to

ensure staff receive the latest information on equipment

and nursing techniques.

Training and education has now moved into a new era,

with programs being offered with simulators or online,

via video and through teleconferencing.

Portland District Health also continues to provide

practical experience for Bachelor of Nursing students

from Deakin University and RMIT, as well as students in

other fields from a range of education institutions.

ANNUAL REPORT 07/08 23


When it’s more than just a job

With James Xing

Seven years ago my partner Lucy and I came to

Australia to study as international students, facing

one of the most difficult times of our lives because

we came from a non-english speaking background and

had to adapt to everything new around us. After our

VCE we decided to make a future here in Australia.

Graduate nurses Natalie Herbertson, Lucy Zhuang,

Nicole Evans, James Xing and Carmen Skewes

In 2004 we both successfully gained entry into Deakin

University (Warrnambool campus) studying nursing.

During this time we made a lot of Australian friends

and learned a lot about Australian communities

and culture. We developed a love for living in the

countryside, and Deakin provided us with opportunities

to complete clinical placements across western

Victoria. We were able to experience working within

a variety of regional hospitals.

Leah Tonkin

Graduate Nurse,

January 2008

Wendy Chen

Graduate Nurse,

January 2008

Brooke Tainsh

Graduate Nurse,

January 2008

Portland District Health quickly offered us one-year

Graduate Nurse positions during 2007 after we applied

in-person for the jobs, and that encouraged us to

obtain permanent Australian residency.

At the end of the year Lucy and I both made the

decision to remain in Portland, and the hospital has

supported us with ongoing employment within the

Operating Services Department - myself within Theatre

and Lucy within the purpose-built Day Procedure Unit.

We are both extremely pleased, as we have positions

within our areas of interest.

Sarah Guo

Graduate Nurse,

January 2008

Karla Ingram

Graduate Nurse,

January 2008

Currently, I am doing post-graduate studies allowing

me to specialise within theatre nursing. Lucy is on

maternity leave after our son Caiden was born in June

2008. Our new home is nearing completion, and we

are really becoming part of the Portland community.

We hope to stay in Portland in the years to come as

we raise our family, and look forward to remaining

at Portland District Health in the nursing team.

24 Portland District Health


Harbourside Lodge is a

state-of-the-art facility,

purpose-built for aged

care services.

Harbourside Lodge resident Mrs Vi Mason and daughter

Leonie Campbell

RESIDENTIAL CARE

Harbourside Lodge

The past 12 months has been a busy and exciting time

for both residents and staff, with the completion of

and move to the new residential aged care facility,

Harbourside Lodge.

Harbourside Lodge is a state-of-the-art facility, purposebuilt

for aged care services. The new building provides

large living areas, ensuite facilities and bright communal

rooms for residents to enjoy the company of others.

The staff have worked tirelessly to settle the residents

into this new, homely environment.

Each room provides a dedicated area for residents

to keep mementoes from home, and residents are

encouraged to give their rooms a homely touch.

Residents have the benefit of a dedicated activities

room where the highly committed activities staff carry

out programs daily, including on weekends.

Harbourside Lodge residents, family and staff come together

to celebrate the opening of the facility

The team at Harbourside Lodge strive to provide the

highest quality of care to the residents, and their

dedication is seen in the daily provision of a service

which excels in all areas of aged care. Eager to identify

ways to enhance care for residents, staff also continue

to embrace educational opportunities to further their

knowledge and improve care.

Harbourside Lodge nurses Sarah Guo, Sue Maher and

Leanne Stuchbery plan the day’s activities

ANNUAL REPORT 07/08 25


Seaview House residents Mrs Annie Sharrock (left) and

Mrs Alexina Aitchison enjoy breakfast and chat with with staff

member Kareen Beasley

Sea View House

Respite bookings have been in demand and we have had

an occupancy rate of 85% over the past year. Our dedicated

staff continue to provide quality care to our residents.

The Residents’ Committee is very popular and goes

from strength to strength, with all residents having a

voice in all aspects of life at Sea View House. The

residents are currently fundraising toward the purchase

of a garden shed.

Throughout the year Sea View House has held an Open

Day to the public and received many community visitors.

Staff have participated in education and training to

ensure residents receive well-supported, high quality

care in a caring, homely environment.

As the newly appointed manager, Sonia Brown is very

proud to be a part of the team and is looking forward

to offering guidance and support to all of her staff and

ensuring the ongoing quality of care for residents. “We

can only continue to improve and make Sea View House

a home that any member of the public would be happy

to come into and say this is my home,” Ms Brown says.

DISTRICT NURSING SERVICE AND PALLIATIVE CARE

In June 2008, the District Nursing team were relocated to

the recently refurbished Seymour Cundy Wing. This move

has enabled them to enjoy larger, more accessible office

space in conjunction with the Discharge Planning team and

members of the Community Nursing team.

Life at Sea View House with Maurie Streeter

After a late return from a long and lonely journey

I am greeted by a Sea View House staff member.

I’m offered coffee and sandwiches, and when I am

shown into my immaculately presented room I really

feel back at home.

With a large-screen TV, comfortable furniture, a bar

and small upstairs lounge, the surroundings of Sea

View House are warm, tasteful and pleasing.

Views from the east balconies and most dining and

recreation areas are second-to-none, and whilst

some residents go away for holidays, there is really

no need to go anywhere else, except maybe to see

friends and loved ones.

There are a large range of activities for people with

the breadth of mental and physical abilities, so they

cater for the majority of residents.

Management and staff are happy, helpful and

supportive, and a helping hand is always available

well beyond any listed duties. This support has been

extended to me on numerous occasions.

The residents of Sea View House are like one big,

happy family, and I can only offer my praise to

the management and staff for providing such a

wonderful facility.

A large number of palliative care volunteers have been

inducted this year. They have been seen around Portland

District Health generously supporting the staff and

patients. A memorial service was held by the palliative

care team. This was a beautiful, moving ceremony to

remember loved ones who had left us during the year.

KATHRYN EYRE

Director of Nursing

26 Portland District Health


Beth Alexander and Noelene Flower, valuable volunteers

SERVICE ACTIVITY

Admitted Patient Acute Sub-Acute Mental Health Other Total

Separations

Same Day 63 63

Multi Day

Total Separation

Emergency

General 4,319 4,319

Other 4 4

Total Separations 4,496 4,496

Total WIES 2,426

Total Bed Days 3,989 3,989

Non Admitted Patients Acute Sub Acute Mental Health Other Total

Emergency Department

Presentations 7,455 7,4

Outpatients Services –

occasions of service

(VACS and Non VACS clinics)

Other Services –

occasions of service 34,549 34,549

Total Occasions of Service 7,455 34,549 34,549

Victorian Ambulatory

Classification System –

Number of Encounters

Average Collection Days

2008 2007

Private 62 47

TAC

VWA 66 60

Other

Compensable

Psychiatric

Residential

Aged Care 34 31

Debtors Outstanding as at 30 June 2008

Under 31-60 61-90 Over 90 Total Total

30 days days days days 30/6/08 30/6/07

Private 258,053 41,835 1,179 12,172 313,239 226,655

TAC 64 64

VWA 842 66 908

Other

Compensable

Psychiatric

Residential

Aged Care 40,260 9,362 1,499 ,121 39,002

ANNUAL REPORT 07/08 27


PRIMARY AND COMMUNITY CARE

With the aim of Primary and Community Care programs

being to improve health and wellbeing outcomes for

individuals and to build a healthy community, there has

been a shift beyond the traditional treatment of illness

and injury. There is now a strong emphasis on selfmanagement

and health promotion.

Primary and Community Care staff work closely with

service providers in the health and non-health sectors

of the community such as schools and local government

to improve the social, physical, economic and political

factors that impact on our health. Activities include the

promotion of physical activity, healthy living and good

nutrition.

Services are delivered from four locations throughout

Portland, making the following programs and services

easily accessible:

Health promotion

Community nursing

Volunteer coordination

Planned activity groups

Social work/counselling

Youth health

Maternal and child health

Diabetes education

Dietetics

Occupational therapy

Speech therapy

Podiatry

Community rehabilitation

Dental

Drug and alcohol withdrawal and support

Services are also provided in Hamilton, with outreach

services to Heywood, Casterton and Coleraine.

With a number of achievements throughout the year,

we are extremely proud of our award-winning Towards

a Healthy Heart program which won the Victorian Public

Healthcare Award for Innovation and Excellence in

Health Promotion and Prevention in September.

Diabetes educator Judy Fenton

The Glenelg and Southern Grampians Drug Treatment

Service was also recognised as one of three finalists

in the 2008 National Drug Awards for Excellence in

Treatment.

Our dental public waiting list has reduced from the

well publicised 41 months to 1.5 months as a result of

developing a fully supported service. Significant waiting

list reductions have also been seen within the dietetics

department as we continue to review services and

implement strategies to ease wait times.

Self-management principles empower the client to be

responsible for their health. Staff participated in selfmanagement

training to ensure that client goals were

both practical and achievable.

Our staff continue to attend training and education

to enhance their knowledge and expertise to improve

client outcomes. We are grateful for the support that

has been received from Portland District Health as

well as the following organisations: Victorian Health

Association, Southern Grampians and Glenelg Primary

Care Partnership, Portland Aluminium, Dental Health

Services Victoria, DHS and the Alcohol Education and

Rehabilitation Foundation. These organisations have

helped facilitate ongoing training and education

opportunities.

As we look to the future, Primary and Community Care

is keen to implement a central point of entry for people

accessing programs and services.

Portland District Health is seeking opportunities to

establish a funded community rehabilitation program

and chronic pain clinic at the same time as we pursue

an increase in funding for chronic disease management

within primary and community care programs including

28 Portland District Health


A step that’s paid off

Donna Shepherd has made

lifelong friends with some

of her co-workers during

her 16 years at Portland

District Health and its

predecessor.

the Hospital Admission Risk program.

NURSING ADMINISTRATION

The After Hours Nursing Coordinators have over the

past year upskilled in advanced life support and trauma

to enable them to support the Accident and Emergency

Department staff.

Training in the Incident Control System to ensure that

we function appropriately in the event of an external

disaster has also been undertaken by all After Hours

Nursing Coordinators and senior staff.

The nursing administration team continues to manage

daily staffing issues, patient care management, complaints

and project development. The implementation of the

Prompt Policy and Procedure Management System has

enabled a more current approach to document control.

The nursing division is ably supported by an expert team

of clerical staff in their documentation development,

record and data base management. Brigietta Herbertson

and Rachel Stoneman have excelled in their support

to nursing administration and have enabled a more

productive method of service delivery.

The coming year will see nursing administration focus

purely on the nursing division.

Following the most recent restructure of the executive

team a Deputy Chief Executive Officer position has been

created. Under this new structure, the daily challenge

will be the ongoing development, progression and

quality outcomes from within the nursing teams as we

move forward through 2008/09. The introduction of new

programs within the organisation will see nursing teams

advance to better systems of healthcare.

The foot expert found out what a “terrific team”

worked at the Portland and District Community

Health Centre when she was a volunteer there in

1992, and jumped at the opportunity to apply for

a job as a podiatrist when the position came up.

Fortunately for Portland District Health and the

people of the region, Donna continued in that

role for many years, and is the service’s sole

practitioner (no pun intended).

“I have worked as a podiatrist in both the private

and public fields, and prefer the public due to the

team environment and support to ensure we assist

the clients to the best of our ability,” she said.

“The opportunity to provide education and

disease prevention is of great interest to me.”

Despite being busy, Donna loves her interaction

with clients and colleagues.

“I have had some of the best times of my life

with those people,” she said.

In December Donna was named as Employee of

the Month for her work with Noelene Mabbitt on

the Portland District Health Staff Revue.

She said being the impetus behind the event

was worthwhile, creating a great night out.

The implementation of the Prompt Policy and Procedure Management

System has enabled a more current approach to document control.

ANNUAL REPORT 07/08 29


Variety the spice of

Helen’s life

Helen Anderson has worked

as a nurse at Portland

District Health for 29

“wonderful” years, and still

loves the challenge each

day brings.

She currently works in Primary and Community Care

in roles as diverse as sexual and reproductive health,

continence, asthma and Quit facilitation, helping

people kick their cigarette habit.

She also does night shifts across the Bentinck St

campus as an After Hours Nursing Coordinator.

“I love the variety. What I enjoy the most is working

with people, being able to help them and most

gratifying is being able to ‘make a difference to their

quality of life,” she said, after winning Employee of

the Month in October.

“I meet with so many wonderful people and their

families. I work and liaise with fantastic other staff,

doctors, specialist and a variety of services and

have strong networks with other organisations.”

Helen says working in primary care allows her to

encourage people to take a more active role in

their health before they become sick.

Each field that she works in has been initiated in

response to community need, and follows on from

time working as a midwife in Portland.

She has also worked at a number of South Australian

hospitals before settling in Portland.

Helen also loves the chance to be involved in

hospital fundraising activities, and thrives on

annual events such as the annual Murray to Moyne

Cycle Relay.

STAFF BY GENDER AND EMPLOYMENT

Category of Staff Male Numbers Female Numbers Male Numbers Female Numbers

2006/07 2006/07 2007/08 2007/08

Full-time 22 69 7 66

Part-time 3 233 6 233

Casual 4 9 4 48

TOTALS 39 361 37 347

STAFF NUMBERS IN EQUIVALENT FULL TIME*

Category of Staff 2004/05 2005/06 2006/07 2007/08

Nursing 32.50 129.8 23.9 127.26

Administration and Clerical 20.74 20.28 20.66 38.44

Medical and Allied Health 40.57 45.20 0.10 29.42

Other Support Services .51 40.95 48.9 3.89

Supported Residential Services 3.67 3.67 4.08 6.05

TOTAL 262.99 249.95 257.69 265.06

*Due to some changes to reporting systems a number of job roles

have been reclassified and now fall under different categories.

30 Portland District Health


services provided by

Portland District Health

MEDICAL:

Accident and Emergency

Anaesthetics

Chemotherapy

Dermatology

Diagnostic Imaging

- CT Scanning

- Doppler Ultrasound

Endocrinology

Endoscopy

ENT Surgery

General Surgery

General Medicine

Geriatric Medicine

High Dependency Unit

Obstetrics and 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 and Alcohol Withdrawal

Education Centre

Hospital in the Home

Immunisation Service

Infection Control

Lactation Counselling

Living with Cancer

Lymphoedema Service

Maternity Enhancement Service

Nursing Home

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 and Payroll

Hospital Library

Safety and Security

Supply

Personal Laundry Service for

in patients/residents

Prescribed Waste Removal

Primary Care Partnerships

Primary and 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

- Health Information Management

Western District Health Service

- Linen

- Finance

- Human Resources

SERVICES TO OTHER AGENCIES:

Immunisation Service

Infection Control Advice

Occupational Therapy and

Speech Pathology

- Special Development School

- Dartmoor Bush Nursing Service

- Kindergartens and schools

Payroll

- Lewis Court Hostel

Supply

- Various

Sterile Supply

- Various

Counselling

- Heywood Rural Health

Health Information Management

- 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

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

ANNUAL REPORT 07/08 31


service activity

Activity / Indicator

2003/04

2004/05

2005/06

2006/07

2007/08

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

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

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

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

27831

6095

2952

883

15

14

3550

945

545

1312

849

990

1334

541

385

3936

1724

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

0.0

4.1%

1489

212

4149

50072

6400

2740

1033

83

46

3621

825

214

1508

1000

804

1571

541

385

3936

1724

4496

40

13898

10953

37.9

29.8

3.1

273.82

53

30

7455

116

1766

9795

5

909

17798

186051

1401

N/A

2484

1051

11922

14339

347

265.06

6.3

0.0

3.6

1517

262

4690

71750

5920

2140

1289

87

46

2718

797

285

1746

797

890

1262

239

718

2820

3000

32 Portland District Health


quality activities

Senior dietitian Fiona Storer with dietitian Michelle Dalwood

The number of patient complaints has increased over

the reporting year; so has the number of compliments.

The rise in the number of patient complaints was

anticipated as Portland District Health called upon the

community to bring forward their patient care concerns.

Moreover, there is an increased expectation for quality

health care; a greater awareness of consumer complaint

processes and a more open and accountable approach by

Portland District Health to capture complaints.

The net result has seen an increase in the number of

meetings to resolve patient concerns. More importantly,

there have been a number of improvements instigated as

a result of investigations, including:

• The reopening of South Ward, promoting a more

positive approach to the care of the elderly through

sub-acute care;

• A twelve month retrospective surgical audit, which

is benchmarked against industry standards;

• Changes in clinical procedures, policies and

procedures; and

• Additional in-service training for staff; including:

- Slit lamp training for visiting medical officers

(VMOs) and accident and emergency nurses;

- Advanced life support training for VMOs and

accident and emergency nurses.

Quality activities continue at the forefront of all our

endeavours and a number of new initiatives were

embarked on over the year. Quality improvement

activities from Portland District Health departments

during 2007/08 included:

• Improvements in Dietetics waiting lists; and

• Review of triage times in the Accident and

Emergency Department.

QUALITY AND CLINICAL RISK MANAGEMENT COMMITTEE

This committee meets monthly to monitor and review

all aspects of patient care. The committee’s aim is to

develop our quality systems and use data, audit and

clinical outcomes to inform our work.

Chaired by Dr Heather Wellington, this committee’s

principal activities embrace patient complaints,

incident/accident reports, clinical indicators and quality

improvement activities. The committee also consider

policies and protocols relating to patient care and other

topical matters.

HOSPITAL BY-LAWS, CREDENTIALING AND SCOPE

OF PRACTICE

Quality, safety and clinical governance remain at the

forefront of the board’s agenda. Consistent with those

themes, we saw the board gain approval from DHS to

introduce new by-laws replacing by-laws introduced in

2003. The new by-laws better reflect the needs of

a contemporary health service.

Concurrently, the board approved a policy and

established a procedure to verify the qualifications,

experience and professional attributes of senior medical

staff as a key requirement of clinical governance. This

action is in line with the introduction of the national

standard on senior medical staff credentialing set out

by the Australian Council for Safety and Quality.

There have been a

number of improvements

instigated as a result of

investigations.

ANNUAL REPORT 07/08 33


APPOINTMENT OF A QUALITY COORDINATOR

The urgent requirement to place a higher emphasis on

quality improvement activities saw the appointment of

Ros Jones as Quality Coordinator.

This full-time appointment is the cornerstone of

Portland District Health’s mandate of assuring quality

patient-centred care and service delivery that meets

the needs and expectations of our patients and other

customers.

ACHS ACCREDITATION

Integral to Portland District Health’s productive and

successful future is accreditation with the Australian

Council on Healthcare Standards (ACHS). Accreditation

is a pivotal step in assurance to our community that

standards of excellence exist at Portland District Health

while providing a firm foundation for the delivery of

health services into the future.

Multi-skilling Ros

Ros Jones is truly

multi-skilled, as her

employment record

shows.

The Employee of the

Month for September

demonstrated outstanding leadership as Hotel

Services Supervisor and an exemplary performance

as Portland District Health’s Infection Control

Nurse before her promotion in February.

Ros is now the service’s Quality Coordinator,

which allows her to devise strategy and ensure

Portland District Health meets the highest quality

standards.

“This is a real opportunity for me to help others

see the benefits of quality and to develop their

appreciation of quality improvement,” she said.

“It’s also an opportunity to work with experienced

senior managers and learn from them.”

Ros hopes that her role at Portland District Health

will always make a difference to the quality of

health care delivered to the community.

In August 2006, 12 recommendations were received

arising from the ACHS Survey Report. Eleven

recommendations have been addressed in preparation

for the upcoming periodic review in August, and one

recommendation has been addressed using an

alternative solution.

The periodic review is an important milestone towards

Portland District Health’s reaccreditation survey in 2010.

CLINICAL INDICATORS

The ACHS has developed a clinical indicator program to

assist in monitoring various events in hospitals across

Australia and New Zealand. This program allows the

measurement of important aspects of a health service.

The ACHS program is the only national clinical indicator

program which examines data across a full range of

medical disciplines. It has become widely acknowledged

that a health service cannot improve what it cannot

measure.

Clinical indicators are a powerful tool by which the

quality and effectiveness of health care is monitored,

assessed and improved. The indicators also provide a

useful tool for all stakeholders for both internal quality

improvement and external accountability.

Portland District Health regularly monitors 14 ACHS

clinical indicators which are reported to the Clinical

Quality and Patient Care Committee.

34 Portland District Health


employee recognition

Portland District Health has introduced Employee of the

Month and Employee of the Year recognition awards.

Nominations for the monthly awards are made by staff,

and judging is performed by the senior management

team based on the following criteria:

• Sustained high level of productivity and consistent

quality of work;

• Demonstrated high degree of initiative in the

performance of responsibilities; and

• Displayed exceptional dependability, such as an

outstanding attendance record, a responsible

attitude towards job duties and a special rapport

with other employees and/or patients/clients.

PHIL HYNES – SERVICE RECOGNITION

Phil Hynes was invited as a special guest to Portland

District Health’s 2006/07 Annual General Meeting

in recognition of his 25 years of service to Portland

District Health.

Portland District Health would like to acknowledge

Clock by the Bay, who generously support Portland

District Health’s Employee of the Month awards.

During the year the following staff received

special recognition:

• Ros Jones

• Helen Anderson

• Noelene Mabbit

• Donna Shepherd

• Brigietta Herbertson

• Laurel Morrissey

• Robyn McCabe

• Karen Madden

• Bruce Caslake

• Danelle Pearce

The Employee of the Year will be announced in

December 2008.

Portland District Health has

introduced Employee of the

Month and Employee of the

Year recognition awards.

A fresh challenge

in store(s)

Each day provides a fresh

challenge for Portland

District Health store

person Laurel Morrissey.

The February Employee

of the Month orders stock and receives and

distributes it for all of Portland District Health,

and demonstrates excellent customer service as

well as diligence, according to her nominee.

She says she thrives on the variety and busy nature

of the role, which she has been in for two years.

The job also gives her more responsibility than she

has had in the past, which is rewarding, and allows

her to work during the day rather than the evening

shifts that she used to do.

After more than five years at Portland District

Health, though, Laurel said she has enjoyed all of

her jobs there.

Portland District Health is lucky to have Laurel.

ANNUAL REPORT 07/08 35


WESTVIC WORKFORCE

APPRENTICE OF THE YEAR

2007 AWARD

Catering staff member Emma

Schultz won the WestVic

Workforce Apprentice of

the Year 2007 in an award

presentation ceremony in

Warrnambool held in October.

She won the award from a

short-list of four apprentices

across a variety of fields.

KEY RETIREMENTS AND RESIGNATIONS

Portland District Health farewelled a number of staff

over the past year. We would like to thank all staff who

have served at the service, including the below former

key employees.

Jill Behncke and Ros Lovell, Environmental services staff

– The pair had been with Portland District Health for

over 10 years. They both left to relocate to other parts

of the state.

Stuart Clayton, Carpenter - Retired after 15 years of

dedicated service.

Phil Hynes, senior manager - Resigned from Portland

District Health after 25 years at the service and has now

relocated to a major metropolitan hospital.

Wayne Pettingill, Stores Manager – Retired after 38 years

of dedicated service.

Carole Pietschmann, Division 1 Nurse – Retired following

30 years of dedicated service in numerous roles at

Portland District Health.

Gwenda Smith, Environmental services assistant -

resigned after 20 years of service to manage her own

business in the retail industry.

Jenny Smith, Division 1 Nurse - resigned after 20 years of

dedicated service to take a position in a private clinic.

LENGTH OF SERVICE AWARDS

The Length of Service Awards are presented

annually and are designed to acknowledge

the time and dedication of our employees to

Portland District Health.

These awards acknowledge staff members who

have achieved from 10 to 35 years of service.

The following staff were presented with Length of

Service awards at Portland District Health’s Annual

General Meetings:

2006/07

10 Years Jill Behncke Nilda Escalante

Pamela Thomas Toni Young

15 Years Erica Clarke Stuart Clayton

Majella King Debra Tozer

20 Years Debbie Adams Vicki Barbary

Dianne Johnson Julie Marsh

Helen Richardson Monica Treloar

Beth Rundell

25 Years Maureen Patterson Carolyn Speed

30 Years Diane Duckmanton Carol Pietschman

35 Years Bev McIlroy

2007/08

10 Years Donna Bourke Donna Eichler

Kerry Hancock Lynda Kohlman

Gerard Leonard Susan Maher

Brenda McCulloch Lynette McNaughton

Bronwyn Mibus Janne Morrison

Joanna Spurge

15 years Rosemary Cole Jennifer Craig

Yvonne Lowther Sheralee Radley

Donna Shepherd Lynette Thomas

Jennifer Trenordan Shirley Trinnick

Jeanette Walsh

20 Years Erin Barker Jennifer Batten

Megan Bunge Peter Bunge

Bruce Caslake Tanya Doran

Jillian Jennings Susan Jensen

Daphne Pascoe Raelene Skinner

25 Years Anne Baker Althea Brown

Janet Westlake

30 Years Ruth Carr Brenda Eldridge

Julie Lipscombe

36 Portland District Health


volunteer recognition

There were 87 volunteers who achieved

5, 10, 15 and 20 years of accumulated

service as at 30 June 2007.

They were recognised for their

dedication and service to Portland

District Health at the 2006-07 Annual

General Meeting:

2006/07

5 years Margaret Logan Pat Barker

Carol Darby

Pat Smale

Ian Campbell

Jeff Klar

Nancy Kinnia

Cathy Meredith

Ida Trevelein

Anne Parry

Judy Dolhegy

D Rundell

T Romein

Evelyn Bush

Jeannne Kelly

Linda Kena

St John’s Lutheran School Lyn Goebel

Margaret Fox

Mr and Mrs J Sealey

Mr and Mrs R Voglino

Raylene Barnes

5 + years N Flower (6 yrs) D Cleary (8 yrs)

Derrick Spencer (8 yrs)

Isobel McKay (8 yrs)

Portland Bay Rotary Club (8 yrs) Joan Kelly (9 yrs)

Portland Primary School (9 yrs)

Volunteer Hazel Short and Board member

Merle Menzel

10 years Elsie Rose Faith Sutterby

Jo Simpson

Karen Tober

L Moyle

Lodge of Memories

Shirley Earl

Rita Baker

Yvonne Crooks

Shirley Thomas

Heather Buckley

Pauline Gowltwatz

Nellie Devries

Mary Holland

Ian Rankin

Janet Wilson

11+ years Aileen White Apex Club

Carol Walder

Claire Oakley

CWA Burswood

D Davis

L Newby

H Stevenson

Jill Caldow

Keith Wilson

Kyeema Centre Inc

Lions Club

Lions Ladies

Lynne Smith

Marilyn Baulch

Mick Twomey

Mr and Mrs D Holland

Mr and Mrs Phillips

Mr and Mrs J Matuschka

Mr and Mrs J Taylor

Mr and Mrs S Williams

Mr and Mrs Stuchbery

Pat Punch

Portland Rotary Club

Ros Brooks

St Stephens Mothers Union

Syd Cuffe

Trish Watt

Eunice Brunt

15 years Betty Hollis Lorraine Aitken

Una Gladwin

Neridah Osborne

Merle Menzel and volunteer Ellie Lane

20 years Ellie Lane Hazel Short

Lyn Buchanan

ANNUAL REPORT 07/08 37


The following people and groups have since achieved

further significant volunteering milestones:

2007/08

5 years Mr and Mrs Finck P Platt

Helen Eichler

Iris Yap

Bob Gower

Ev Balwin

Margaret Dawson

Pauline Gottwalz

Shirley Dunn

10 years Pauline McDonald Janet Meade

Joan Kelly

Gail Baulch

Portland Primary School

Portland Special Development School

15 years Carol Boyadjian

Merle Menzel and volunteer Ian Rankin

A long-term volunteer

Margie Oates has been a volunteer for Portland District Health

and its predecessor Portland and District Community Health for

18 years. She has volunteered in a variety of areas to try and

help improve the lives of others:

Telecare – a telephone service providing reassurance and social

support to H.A.C.C. clients who live at home.

Telelink – a regular conference call linked up with a volunteer

and clients living at home to provide an opportunity for social

interaction without the client leaving home.

Community transport – Margie has recently started driving for

the Community Rehabilitation program.

Margie has an outstanding reputation for being extremely

reliable. She is enthusiastic in everything she does and is willing

to do anything extra that is asked of her.

Each year at the Christmas afternoon tea for the clients and

volunteers of Portland District Health’s Social Monitoring and

Support Services she is an enthusiastic participant, encouraging

everyone to have a great time with a large smile, a huge laugh

and glitter in her hair!

38 Portland District Health


medical officers

PDH Specialist Centre practice manager Robyn McCabe and

Visiting consultant Physician, Dr Mark Page

MEDICAL STAFF:

Dr A Jolayemi, MB ChB, Sc (Med),

FCA (SA), FMCA (Nig)

Dr C Joubert, MB ChB

Dr A Hattingh, MB ChB

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

(retired)

Mr J Das, MB, BS, FRCS, FICS (resigned)

Dr M Martin, MBBS (retired)

Dr W Smolilo, MB ChB, FRACGP

Dr J Risk, MBBS (on leave)

Dr R Stewart, LRCP, MRCS, RACGP

Dr S Rana, MBBS

Dr P Mazani, MBBS

Dr M Idris, MBBS

Dr F Irshad, MBBS

Dr I Ho (resigned)

ANAESTHETISTS:

Dr P Goodman, MBBS, DA, RCOG,

FRACGP

Dr M Martin, MBBS, FACRRM (retired)

Dr Wladek Smolilo, MB ChB, FRACGP

Dr J Stapleton, MB, FANZA

Dr A Fielke, MBBS, DA

Dr Jojy Thomas, MBBS

SPECIALIST ANAESTHETIST:

Dr J Muir, MB ChB, DA, FRCA

SPECIALIST SURGEON:

Mr J Das, MBBS, FRCS, FICS (resigned)

VISITING SURGEONS:

Mr S Clifforth, MBBS, FRACS

Mr D Bird, MBBS, FRACS

Mr P Tung, MBBS, FRACS

SPECIALIST PHYSICIANS:

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

Dr Bradbear, MBBS, FRACP

VISITING OBSTETRICIANS AND

GYNAECOLOGISTS:

Dr C Beaton, MB ChB, FRANZCOG,

MRCGP, FRCOG

Dr K Braniff, MBBS, FRANZCOG

(resigned)

Dr E Uren, MBBS, FRANZCOG

Dr F Ng, MBBS

Dr A Woodward, MBBS, BMedSc,

FRANZCOG

Dr V Woodward, MBBS, FRANZCOG

VISITING E.N.T. SPECIALISTS:

Ms. M Cass, MBBS, FRACS

Mr L Ryan, FRACS, DLO

VISITING OPHTHALMOLOGIST:

Dr V Lee, FRACO, FRACS

VISITING PAEDIATRICIANS:

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 A Sundarum MBBS, MCH,

(ORTH) FRCS (EDIN & LONDON),

FRCS (ORTH), LRCP, MRCS,

FRACS (ORTHO), FA ORTHO A

VISITING UROLOGIST:

Mr P Kearns, MBBS, FRACS

VISITING PSYCHIATRIST:

Dr M Duke, MBBS, MRC Psych,

FRANZCP

VISITING PSYCHOLOGIST:

Mr J Clark

VISITING ORAL SURGEON:

Mr B Robinson, BDSc (Adel),

BSc Dent (Hons), MDS (resigned)

VISITING ALCOHOL & DRUG PHYSICIAN:

Dr D Richards, MBBS, APSAD (resigned)

VISITING ORTHODONTIST:

Mr C Stanley, MDs, BSc (Hons)

(resigned)

VISITING DERMATOLOGIST:

Dr S Chandra, MBBS (Melb),

FACD (Melb)

VISITING DENTAL OFFICERS:

Dr M Stubbs (resigned)

Dr K Stock, BDSc,

Dr M Thow, BDSc

Dr S McGuire, BDSc, LDS

Dr Nishant Hurria, BDSc

Dr Mark Farag BD

Dr Rachel Charles BDSc (Hons)

Dr Nancy Heinen

Dr Paul Nakla BDSc

VISITING PROSTHETIST:

Andrew Bolwell

VISITING PAEDIATRIC

ENDOCRINOLOGIST:

Assoc Prof Fergus Cameron

– Royal Children’s Hospital

(BMed Sci, DipRACOG, FRACP, MD)

ANNUAL REPORT 07/08 39


donations

We are grateful to the following people who generously

supported Portland District Health throughout the

year. In particular, we would like to acknowledge

Geoff Handbury AO for his donation of $45,000 for the

purchase of a colonoscope.

Midwives Linda Bowman and Marisa Di Serio.

Others donors who graciously assisted Portland

District Health were:

Norma Ruge $50

E. and I. Peucker $50

Murray to Moyne team $11,688

Portland Neighbourhood House $187

In memory of Netta Francis $115

Allied Health $10

Portland/Heywood Lutheran Ladies Guild $300

Alison McLeod $60

William Angliss Charitable Fund $1,000

Jill Dunbar $500

Alcoa of Australia $287

Jean and Bob Stuchbery $100

In memory of the late Sylvia Smith $100

In memory of the late Leon Radley $255

Department of Justice $1,000

United Way Glenelg $2,000

M. and S. Wiese $200

Masonic Community Project $300

Portland Women’s Service Club $100

Murray to Moyne Portland District Health representative

Helen Anderson, John O’Neill and Lions Club president

Craig Simmonds

BEQUESTS

Portland District Health received generous support

from the community through bequests. These generous

legacies are essential to Portland District Health in

continuing to deliver high standards of patient care to

our community.

In particular, we acknowledge and thank:

The Dipalo family donated $318,786

towards the new day procedure unit.

Estate of the late Glenys Simmons $1,725,051

Estate of the late Patricia Taggart $4,000

Estate of the late Edwin Lyon Carthew $92,545

40 Portland District Health


governance

Portland District Health is a public health service

established under the Health Services Act 1988.

The responsible ministers during the reporting period

were Bronwyn Pike and Daniel Andrews.

The Board of Management’s function is to oversee

the governance of Portland District Health and ensure

that all services comply with the requirements of the

Health Services Act 1988 and Portland District Health’s

objectives.

The board consists of up to12 Members appointed by

the Governor-in-Council on the advice of the Minister

of Health following nominations received by Portland

District Health. Each member is appointed for a three

year term and is eligible for re-nomination when that

term ends.

The board introduced a number of major reforms and

key changes during 2007/08. The five year Clinical

Services Plan and Model of Care was adopted by the

board in May after an extensive consultation period with

community members and stakeholders. New by-laws

were introduced and the board’s committee structure

was reviewed and membership and terms of reference

were revised to reflect contemporary health practice

and strategic direction.

The board introduced a

number of major reforms and

key changes during 2007/08.

In November, Alison McLeod and Andy Govanstone were

welcomed as new appointments to the board. The

board also welcomed ministerial delegates, Dr Heather

Wellington and Michael Rhook.

On 30 June 2008, the board farewelled three

longstanding board members. Greg Andrews retired

after serving six years as a board member with the

last 20 months as president. Vin Gannon retired after

having served as president and past president as well

as on the Portland and District Community Health Centre

(PDCH) board, and Merle Menzel retired after six years on

the Portland District Health board and more than

10 years on the PDCH board. The board sincerely thanks

Greg, Vin and Merle for their contribution, advice and

support to the board over many years.

GOVERNANCE COMMITTEES

To assist the board in the discharge of its

responsibilities, it has established a number of

board committees. The board’s two principal

advisory committees meet monthly, and are:

Audit and Finance

Chair: Alison McLeod

Members: Bill Collett and Mike Noske

Clinical Quality and Risk Management

Chair: Dr Heather Wellington

Members: Mike Noske, Jim Harpley and Brian Sparrow

Other Board Advisory Committees are:

Consultative Committee;

Project Control Group; and

Remuneration Committee.

Board of Management attendance 2007/08

Greg Andrews 9 of 12

Bill Collett of 12

Bruce Du Vergier 6 of 12

Vin Gannon 3 of 12

Andy Govanstone 8 of 8

Jim Harpley of 12

Alison McLeod 5 of 8

Merle Menzel 12 of 12

Mike Noske 7 of 12

Brian Sparrow 10 of 12

ANNUAL REPORT 07/08 41


ETHICAL STANDARDS

The Board of Management promotes the continued

maintenance of corporate governance practice and

ethical conduct by the board members and employees of

Portland District Health. The board has endorsed a code

of conduct which applies to board members, officers and

all employees.

PECUNIARY INTERESTS

Members of the Board of Management of Portland

District Health 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 Portland

District Health policy and the board’s code

of conduct.

TAX DEDUCTIBLE GIFTS

Portland District Health is endorsed by the Australian

Taxation Office as a Deductible Gift Recipient. Gifts to

Portland District Health as a public health service qualify

for a tax deduction under item 1.1.1 of section 3-BA of

the Income Tax Assessment Act 1997.

STATEMENT OF COMPETITIVE NEUTRALITY

The Victorian Government’s Competitive Neutrality

policy commits public health services to apply this policy

to all dealings. This includes the adoption of pricing

principles to take account of the full cost attribution for

net competitive advantage conferred

by government ownership.

The policy gives direction that where the government’s

business activities involve it in competition with private

sector business activities, the net advantage that accrue

to government business are offset.

WHISTLEBLOWERS PROTECTION ACT 2001

Portland District Health has a number of policies

and procedures for employees seeking to raise

complaints within or about Portland District Health.

These are outlined within Portland District Health’s

Code of Conduct. There were not any reports under

the Whistleblowers Protection Act 2001 during the

year under review.

Since the introduction of the Act in 2001 there has

been no disclosure or notification of disclosures to

the Ombudsman or any other external agency.

Disclosure will be received by Portland District Health’s

designated complaints officer or the Ombudsman

Victoria, Level 9, 459 Collins Street (North Tower)

Melbourne Victoria 3000

Ros Jones

Quality Co-ordinator

Portland District Health

Bentinck Street, Portland, 3305

FEES AND CHARGES

Portland District Health charges fees in accordance

with DHS directives.

CONSULTANCIES

During the year there were 10 consultancies costing

in total $252,194, inclusive of Aspex Consulting’s

engagement to undertake the five year Clinical Services

Plan and Model of Care at a cost of $111,363. All these

consultancies related to service development and

organisational redesign initiatives, and the DHS met

the cost of Aspex Consulting’s work.

ATTESTATION ON COMPLIANCE WITH AUSTRALIAN/

NEW ZEALAND RISK MANAGEMENT STANDARD

I, John C O’Neill certify that the Portland District Health

has risk management processes in place consistent with

the Australian/New Zealand Risk Management Standard

and an internal control system is in place that enables

the executives to understand, manage and satisfactorily

control risk exposures. The audit committee verifies

this assurance and that the risk profile of the Portland

District Health Service has been critically reviewed

within the last 12 months.

JOHN C O’NEILL

Accountable Officer

24 September 2008

42 Portland District Health


BUILDING ACT 1993

The Minister for Finance has issued instructions in

accordance with the building Act 193-No.126/1993

such that all public entities are required to ensure

that all buildings under their control are safe and fit

for occupation, comply with statutory requirements,

buildings are maintained to a standard in which they

remain safe and fit for occupancy and to report

annually on measures to ensure compliance with

the Building Act 1993.

PROTECTING YOUR PRIVACY

Portland District Health complies with the provisions of

the Health Services Act 1988 (no.49/1988), the Health

Records Act 2001 (no2/2001) and the Information Privacy

Act 2000 (no.98/2000) relating to confidentiality and

privacy by ensuring that all employees do not disclose

any information or records concerning Portland District

Health’s patients, clients, staff and customers acquired

in the course of their employment, other than for any

authorised or lawful purpose.

It is Portland District Health’s practice to obtain

building permits for new projects and Certificates of

Occupancy or Certificates of Final Inspection for all

completed projects.

In order to maintain buildings in a safe and serviceable

condition, routine inspections were regularly

undertaken. Where required, Portland District Health

proceeded to implement the highest recommendations

arising out of those inspections through planned

rectification and maintenance works.

Portland District Health has the necessary Form 10

certification in connection to the Essential Services

Legislation.

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:

Health Information Manager

Portland District Health

Bentinck St

Portland, 3305

Portland District Health acknowledges and thanks the

following staff that maintained Portland District Health’s

buildings to the highest of standards for public hospitals:

Steve Jones

Ivor Graney

Graham McCabe

Bruce Caslake

Stuart Clayton

Graeme Kirkwood

Alex Trahar

Greg Emmerson

Freedom of Information Applications 2007/08

Total Requests 64

Fully Granted 61

Granted in Part 0

Documents not in Existence 3

COMMERCIAL APPOINTMENTS

External Auditors: Coffey Hunt & Co

Internal Auditors: Deloitte

Bankers: Australian and New Zealand Banking Group Ltd

ANNUAL REPORT 07/08 43


life governors

LIFE MEMBERS OF THE FORMER PORTLAND

AND DISTRICT COMMUNITY HEALTH CENTRE INC.

Association for the Blind Shirley Elliott

Portland Neighbourhood House Jeff Baulch

Jack Finck

Marilyn Baulch

Jeff Knuckey

David Harris

Bill Collett

Anne Lanyon

President Greg Andrews, Portland Aluminium’s Manufacturing

Manager Paul Thornton, Portland Aluminium Operations

Manager John Osborne and Alcoa’s Victorian Operations

Manager Arnaud Soirat with the new Slit Lamp purchased with

the assistance of Portland Aluminium

LIFE GOVERNORS OF THE FORMER PORTLAND

AND DISTRICT HOSPITAL

M.E.Aitken

S. Panozzo

Apex Club of Portland

P. Pettit

Percy Baxter (Trust)

M. Plantinga

E.J. Brownlaw

Portland Aluminium

B. Chipperfield Portland Professional

Brenda Edwards

Women’s Service Club

P. Elford S. Poon

S.M. Farrands

S.I. Pritchard

S. Fyfe Rotary Club of

P. Godfrey-Smith Portland

M.L. Jennings

E.A. Saunders

J. Kermond M.M. Sharrock

E. Lightbody Helen Macpherson

Lions Club of Portland

Smith (Trust)

B. McDiven R. Smith

W.G.C. Maling

J. Stewart

P. Mitchell J. C. Wigan

A.K.Ough

P. Wilmot

DISTINGUISHED SERVICE AWARD OF THE FORMER

PORTLAND AND DISTRICT HOSPITAL

1994 Jesse Das

44 Portland District Health


PROVIDING SAFE & COST EFFECTIVE PRIMARY, ACUTE & AGED

CARE SERVICES TO RESIDENTS OF THE PORTLAND DISTRICT

providing safe

and cost effective

primary, acute and

aged care services

to residents of the

portland district

This report is released to the

public at the Annual General Meeting

and is also available as follows:-

Website: www.pdh.net.au

Distribution mailing list

Consumer Advisory Network

Portland District Health Administration


Bentinck Street

Portland VIC Australia 3305

Tel: 03 5521 0333

Fax: 03 5521 0358

Email: pdh@swarh.vic.gov.au

Website: www.pdh.net.au

dezigned by adz@work


FINANCIAL STATEMENTS

for the year ended 30 june 2008

operating statement 2

balance sheet 3

statement changes in equity 4

cash flow statement 5

notes to the financial statements 6

certification 50

independent audit report 51

2007/08

1


Operating Statement

For the Year Ended 30 June 2008

Note Total Total

2008 2007

$'000

$'000

Revenue from Operating Activities 2 23,949 21,214

Revenue from Non-operating Activities 2 3,271 3,178

Employee Benefits 3 (19,066) (18,286)

Non Salary Labour Costs 3 (2,390) (2,265)

Supplies & Consumables 3 (1,772) (1,951)

Other Expenses From Continuing Operations 3 (4,035) (2,919)

Net Result Before Capital & Specific Items

(43) (1,029)

Capital Purpose Income 2 951 2,098

Depreciation and Amortisation 4 (1,581) (1,369)

Finance Costs 5 (87) (127)

Share of Net Result of Joint Ventures Accounted 10 (33) (82)

for using the Equity Method

NET RESULT FOR THE PERIOD (793) (509)

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

2


Balance Sheet

As at 30 June 2008

Note Total Total

2008 2007

$'000

$'000

ASSETS

Current Assets

Cash and Cash Equivalents 6 3,096 2,597

Receivables 7 1,011 682

Inventories 9 224 236

Other Current Assets 8 87 203

Total Current Assets 4,418 3,718

Non-Current Assets

Receivables 7 64 269

Investments Accounted for using the Equity Method 10 52 142

Property, Plant & Equipment 11 42,841 42,197

Total Non-Current Assets 42,957 42,608

TOTAL ASSETS 47,375 46,326

LIABILITIES

Current Liabilities

Payables 12 2,279 2,964

Interest Bearing Liabilities 13 209 171

Provisions 14 3,645 3,606

Other Liabilities 15 200 138

Total Current Liabilities 6,333 6,879

Non-Current Liabilities

Interest Bearing Liabilities 13 1,197 1,436

Provisions 14 889 939

Total Non-Current Liabilities 2,086 2,375

TOTAL LIABILITIES 8,419 9,254

NET ASSETS 38,956 37,072

EQUITY

Asset Revaluation Reserve 16a 8,436 7,867

Restricted Specific Purpose Reserve 16a 1,805 1,725

Contributed Capital 16b 35,695 33,495

Accumulated Surpluses/(Deficits) 16c (6,980) (6,015)

TOTAL EQUITY 38,956 37,072

Commitments for Expenditure 19

Contingent Assets and Contingent Liabilities 20

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

3


Statement of Changes in Equity

For the Year Ended 30 June 2008

Note Total Total

2008 2007

$'000 $'000

Total equity at beginning of financial year 37,072 24,079

Effects of changes in accounting policy

Accumulated Surpluses/(Deficits) 16c (92) -

Gain/(loss) on Asset Revaluation 16a 569 7,867

Net result for the Year (793) (509)

NET INCOME RECOGNISED DIRECTLY IN EQUITY (316) 7,358

Transactions with the State in its Capacity as Owner

Capital Contribution 16b 2,200 5,635

TOTAL RECOGNISED INCOME AND EXPENSE FOR THE YEAR 1,884 12,993

Closing Balance 38,956 37,072

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

4


Cash Flow Statement

For the Year Ended 30 June 2008

CASH FLOWS FROM OPERATING ACTIVITIES

Note Total Total

2008 2007

$'000

$'000

Operating Grants from Government 20,716 19,564

Patient and Resident Fees Received 1,962 1,677

Other Receipts 4,534 4,044

Employee Benefits Paid (19,077) (18,009)

Fee for Service Medical Officers (2,390) (1,685)

Payments for Supplies & Consumables (6,539) (4,580)

Cash Generated from Operations (794) 1,011

Capital Grants from Government 655 42

Capital Donations and Bequests Received 84 1,805

Other Capital Receipts 169 13

NET CASH INFLOW/(OUTFLOW) FROM OPERATING

ACTIVITIES

17

114 2,871

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of Property, Plant & Equipment (1,663) (6,687)

Proceeds from Sale of Property, Plant & Equipment 48 23

NET CASH INFLOW/(OUTFLOW) FROM INVESTING

ACTIVITIES (1,615) (6,664)

CASH FLOWS FROM FINANCING ACTIVITIES

Repayment of Borrowings (200) (178)

Contributed Capital from Government 2,200 5,635

NET CASH INFLOW/(OUTFLOW) FROM OPERATING

ACTIVITIES 2,000 5,457

NET INCREASE / (DECREASE) IN CASH HELD 499 1,664

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 2,597 933

CASH AND CASH EQUIVALENTS AT END OF PERIOD 5 3,096 2,597

This Statement should be read in conjunction with the accompanying notes

5


Notes to and forming part of the

FINANCIAL STATEMENTS

for the year ended 30 june 2008

Note

1

2

2a

2b

2c

3

3a

3b

4

5

6

7

8

9

10

11

12

13

14

14a

15

16

17

18

19

20

21

22

23

24

25

26

Statement of Significant Accounting Policies 7

Revenue 19

Analysis of Revenue by Source 20

Patient and Resident Fees 22

Net Gain / (Loss) on Disposal of Non Current Assets 22

Expenses 23

Analysis of Expenses by Source 24

Analysis of Expenses by Internal and Restricted

Specific Purpose Funds for Services Supported by

Hospital and Community Initiatives 26

Depreciation and Amortisation 26

Finance Costs 27

Cash and Cash Equivalents 27

Receivables 28

Other Financial Assets 29

Inventories 29

Investments accounted for Using the Equity Method 30

Property, Plant and Equipment 31

Payables 33

Interest Bearing Liabilities 33

Provisions 34

Employee Benefits 35

Other Liabilities 35

Equity 36

Reconciliation of Net Result for the Year to Net Cash

Inflow/(Outflow) from Operating Activities 37

Financial Instruments 38

Commitments for Expenditure 43

Contingent Assets & Contingent Liabilities 43

Remuneration of Auditors 43

Segment Reporting 44

Responsible Persons and Executive Officer Disclosures 47

Events Occuring after the Balance Sheet Date 49

Economic Dependency 49

Change in Accounting policy 49

2007/08

6


Notes To and Forming Part of the Financial Statements for the Year Ended 30 June 2008

994

Note 1: Statement of Significant Accounting Policies

(a) Statement of Compliance

The financial report is a general purpose financial report which has been prepared on an accrual

basis in accordance with the Financial Management Act 1994, applicable Australian Accounting

Standards (AAS), which includes the Australian accounting standards issued by the Australian

Accounting Standards Board (AASB), Interpretations and other mandatory professional

requirements.

(b) 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 AAS’s management is required to make judgments, 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 judgments. 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 2008, and the comparative information presented in these financial

statements for the ended 30 June 2007.

(c) 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 AAS’s.

(d) Rounding Of Amounts

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

7


Notes To and Forming Part of the Financial Statements for the Year Ended 30 June 2008

(e) Cash and Cash Equivalents

Cash and cash equivalents comprise cash on hand and cash at bank, deposits at call and highly

liquid investments with an original maturity of 3 months or less, which are readily convertible to

known amounts of cash and are subject to insignificant risk of changes in value.

For cash flow statement presentation purposes, cash and cash equivalents include bank

overdrafts, which are included as current borrowings in the balance sheet.

(f) 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 collection exists. Bad debts are written off when identified.

Receivables are recognised initially at fair value and subsequently measured at amortised cost,

using the effective interest rate method, less any accumulated impairment.

(g) 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.

Inventories held for distribution are measured at cost, adjusted for any loss of service potential.

All other inventories, including land held for sale, are measured at the lower of cost and net

realisable value.

Bases used in assessing loss of service potential for inventories held for distribution include

current replacement cost and technical or functional obsolescence. Technical obsolescence occurs

when an item still functions for some or all of the tasks it was originally acquired to do, but no

longer matches existing technologies. Functional obsolescence occurs when an item no longer

functions the way it did when it was first acquired.

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

Inventories acquired for no cost or nominal considerations are measured at current replacement

cost at the date of acquisition.

(h) Other Financial Assets

Other financial assets are recognised and derecognised on trade date where purchase or sale of

an investment is under a contract whose terms require delivery of the investment within the

timeframe established by the market concerned, and are initially measured at fair value, net of

transaction costs.

The Health Service classifies its other financial assets between current and non-current assets

based on the purpose for which the assets were acquired. Management determines the

classification of its other financial assets at initial recognition.

The Health Service assesses at each balance sheet date whether a financial asset or group of

financial assets is impaired.

8


Notes To and Forming Part of the Financial Statements for the Year Ended 30 June 2008

(i) Property, Plant and Equipment

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 asset(s) are not taken into account until it is

virtually certain that any restrictions will no longer apply.

Land and Buildings are recognised initially at cost and subsequently measured at fair value less

accumulated depreciation.

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

impairment.

(j) Revaluations of Property, Plant and Equipment

Non-current physical assets measured at fair value are revalued in accordance with FRD 103C.

This revaluation process normally occurs every five years as dictated by timelines in FRD103C

which sets the next revaluation for the Health, Welfare and Community Purpose Group to occur

on 30 June 2009, or earlier should there be an indication that fair values are materially different

from the carrying value. Revaluation increments or decrements arise from differences between an

asset’s 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 at 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 not transferred to accumulated funds on derecognition of the

relevant asset.

(k) Non Current Assets Held for Sale

Non-current assets (and disposal groups) classified as held for sale are measured at the lower of

carrying amount and fair value less costs to sell, and are not subject to depreciation.

Non-current assets and disposal groups are classified as held for sale if their carrying amount will

be recovered through a sale transaction rather than through continuing use. This condition is

regarded as met only when the sale is highly probable and the asset (or disposal group) is

expected to be completed within one year from the date of classification.

(l) Depreciation

Assets with a cost in excess of $1,000 ($500 in 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 and

depreciation method for all assets are reviewed at least annually. This depreciation charge is not

funded by the Department of Human Services.

9


Notes To and Forming Part of the Financial Statements for the Year Ended 30 June 2008

The following table indicates the expected useful lives of non current assets on which the

depreciation charges are based.

2007-2008 2006 - 2007

Buildings 30 to 40 Years 30 to 40 Years

Building Components 8 to 10 Years 8 to 10 Years

Plant & Equipment 8 to 10 Years 8 to 10 Years

Medical Equipment 4 to 5 Years 4 to 5 Years

Computers & Communications 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

(m) Impairment of Assets

Intangible assets with indefinite useful lives (and intangible assets not yet available for use) are

tested annually for impairment (i.e. as to whether their carrying value exceeds their recoverable

amount and so require write-downs). All other assets are assessed annually for indications of

impairment.

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.

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.

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 flows is measured at the higher of the present value of the future cash flows expected to

be obtained from the asset and fair value less costs to sell.

(n) Payables

These amounts represent liabilities for goods and services. Payables are initially recognised at fair

value, then subsequently carried at amortised cost and represent liabilities for goods and services

provided to the Health Service prior to the end of the financial year that are unpaid, and arise

when the health service becomes obliged to make future payments in respect of the purchase of

these goods and services. The normal credit terms are usually Nett 30 days.

(o) Provisions

Provisions are recognised when the 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.

10


Notes To and Forming Part of the Financial Statements for the Year Ended 30 June 2008

(p) Resources Provided and Received Free of Charge or for Nominal

Consideration

Resources provided or received free of charge or for nominal consideration are recognised at their

fair value when the transferee obtains control over them, irrespective of whether restrictions or

conditions are imposed over the use of the contributions, unless received from another entity or

agency as a consequence of a restructuring of administrative arrangements. In the latter case,

such transfer will be recognised at carrying 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.

(q) Interest Bearing Liabilities

Interest bearing liabilities in the Balance Sheet are recognised at fair value upon initial

recognition. Subsequent to initial recognition, interest bearing liabilities are measured at

amortised cost with any difference between the initial recognised amount and the redemption

value being recognised in profit and loss over the period of the interest bearing liability using the

effective interest rate method. Fair value is determined in the manner described in Note 18.

(r) Functional and Presentation Currency

The presentation currency of the Health Service is the Australian dollar, which has also been

identified as the functional currency of the Health Service.

(s) 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 recognized as part

of the cost of acquisition of the asset or 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.

Cashflows are presented on a gross basis. The GST component of cashflows arising from

investing or financing activities which are recoverable from, or payable to the taxation authority,

are presented as operating cashflow.

Financial Management Act 1994

(t) 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 12 months of the reporting date are

recognized in the provision for employee benefits in respect of employee’s service up to the

reporting date, classified as current liabilities and measured at nominal value.

Those liabilities that the health service does not expect to settle within 12 months are recognized

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.

11


Notes To and Forming Part of the Financial Statements for the Year Ended 30 June 2008

Long Service Leave

Current Liability – unconditional LSL (representing 10 or more years of continuous service) is

disclosed as a current liability regardless of whether the Health Service 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 this current LSL liability are measured at:

Present value – component that the Health Service does not expect to settle within 12 months;

and

Nominal value – components that the Health Service expects to settle within 12 months.

Non Current Liability – conditional LSL (represents 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 Commonwealth 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 plan

superannuation represents the contributions made by the Health Service to the superannuation

plan in respect to the current services of current Health Service staff. Superannuation

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

Employees of the Health Service are entitled to receive superannuation benefits and the Health

Service contributes to both the defined benefit and defined contribution plans. The defined

benefits plan(s) provide benefits based on years of service and final average salary.

The name and details of the major employee superannuation funds and contributions made by

the Health Service are as follows:

Fund

Contributions Paid or Payable for the Year

2008 2007

$’000 $’000

Defined Contribution plans:

Health Super 1,267 1,279

HESTA 128 97

Other 23 3

Defined Benefits plans

Health Super 123 143

TOTAL 1,541 1,522

12


Notes To and Forming Part of the Financial Statements for the Year Ended 30 June 2008

The Health Service does not recognise any defined benefit liability in respect of the

superannuation plans because the Health Service 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 State’s 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 is 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.

(u) 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;

and

- Finance charges in respect of finance leases recognised in accordance with AASB 117 Leases

(v) Residential Aged Care Service

The following Residential Aged Care Services operations are an integral part of the Health Service

and share its resources.

- Harbour Side Lodge

These Residential Aged Care Services are substantially funded by Commonwealth bed day

subsidies. Where services are co-located with other health service operations an apportionment

of land and buildings has been made based on floorspace. The results of all operations have been

segregated based on actual revenue earned and expenditure incurred by each operation.

(w) Joint Ventures

Interests in jointly controlled operations and jointly controlled assets are accounted for by

recognising in the Health Service’s financial statements, its share of assets, liabilities and any

revenue and expenses of such joint ventures. Details of the joint venture are set out in Note 10.

(x) Intersegment Transactions

Transactions between segments within the Health Service have been eliminated to reflect the

extent of the Health Service's operations as a group.

(y) 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.

13


Notes To and Forming Part of the Financial Statements for the Year Ended 30 June 2008

Entity as lessee

Finance leases are recognised as assets and liabilities at amounts equal to the fair value of the

lease property or, if lower, the present value of the minimum lease payment, each determined at

the inception of the lease. The lease asset is depreciated over the shorter of the estimated useful

life of the asset or the term of the lease. Minimum lease payments are allocated between the

principal component of the lease liability, and the interest expense calculated using the interest

rate implicit in the lease, and charged directly to the operating statement.

Contingent rentals 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 assets.

(z) Income Recognition

Income is recognised in accordance with AASB 118 Revenue and is recognised as 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 the Health Service gains control of the underlying assets

in accordance with AASB 1004 Contributions. For reciprocal grants the Health Service is deemed

to have assumed control when the performance has occurred under the grant. For non-reciprocal

grants the Health Service is deemed to have assumed control when the grant is received or

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

grant.

Indirect Contributions

– Insurance is recognised as revenue following advice from the Department of Human

Services.

– Long Service Leave (LSL) – Revenue is recognised upon finalisation of movements in LSL

liability in line with the arrangements set out in the Acute Health Division Hospital

Circular 13/2008.

Patient Fees

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

Private Practice Fees

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

Donations and Other Bequests

Donations and bequests are recognised as revenue when received. If donations are for a special

purpose, they may be appropriated to a reserve, such as specific restricted purpose reserve.

Dividend Revenue

Dividend revenue is recognised on a receivable basis

Interest Revenue

Interest revenue is recognised on a time proportionate basis that takes into account the effective

yield of the financial asset.

14


Notes To and Forming Part of the Financial Statements for the Year Ended 30 June 2008

(aa) Fund Accounting

The Health Service operates on a fund accounting basis and maintains three funds:

Operating, Specific Purpose and Capital Funds. The Health Service's Capital and Specific Purpose

Funds include unspent capital donations and receipts from fund-raising activities conducted solely

in respect of these funds.

(ab) Services Supported By Health Services Agreement and Services Supported

By Hospital and Community Initiatives

Activities classified as Services Supported by Health Services Agreement (HSA) are substantially

funded by the Department of Human Services and includes Residential Aged Care Services

(RACS) and are also funded from other sources such as the Commonwealth, patients and

residents while Services Supported by Hospital and Community Initiatives (Non HSA) are funded

by the Health Service's own activities or local initiatives and/or the Commonwealth.

(ac) Comparative Information

Where necessary the previous year’s figures have been reclassified to facilitate comparisons.

Operating Statement – Share of net Result of Associates & Joint Ventures Accounted for using the

Equity Model Expense 2006/2007 ($82,000) is now recognised below net result before capital and

specific items as a Share of net result of Associates & Joint Ventures Accounted for using the

Equity Model in the Operating Statement for 2007/2008 comparatives.

Note 2 & 2a – 2006/2007 comparatives changes in accordance with 2007-2008 Annual Reporting

Guidelines.

Note 3 & 3a – 2006/2007 comparatives changes in accordance with 2007-2008 Annual Reporting

Guidelines.

(ad) Asset Revaluation Reserve

The asset revaluation reserve is used to record increments and decrements on the revaluation of

non-current assets.

(ae) Specific Restricted Purpose Reserve

A specific restricted purpose reserve is established where the Health Service has possession or

title to the funds but has no discretion to amend or vary the restriction and/or condition

underlying the funds received.

(af) Contributed Capital

Consistent with UIG Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public

Sector Entities and FRD 2 Contributed Capital, appropriations for additions to the net asset base

have been designated as contributed capital. Other transfers that are in the nature of

contributions or distributions that have been designated as contributed capital are also treated as

contributed capital.

15


Notes To and Forming Part of the Financial Statements for the Year Ended 30 June 2008

(ag) Net Result Before Capital & Specific Items

The subtotal entitled “Net Result before Capital & Specific Items” is included in the Operating

Statement to enhance the understanding of the financial performance of the Health Service. The

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 & Specific Items is used by the

management of the Health Service, 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 to Operating

Statement). 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:

– Non-current asset revaluation increments/decrements

– Diminution in investments

• Impairment of non current assets, includes all impairment losses (and reversal of previous

impairment losses), related to non current assets only which have been recognised in accordance

with Note 1 (m).

• Depreciation and amortisation, as described in Note 1 (l).

• Assets provided free of charge, as described in Note 1 (p).

• Expenditure using capital purpose income, which comprises expenditure which either falls below

the asset capitalization threshold (Note 1 (l)), 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.

(ah) Category Groups

Portland District Health has used the following category groups for reporting purposes for the

current and previous financial years.

Acute Health (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 hospitals specialising in dental services, hearing and ophthalmic aids.

Primary Health comprises revenue/expenditure for Community Health Services including

health promotion and counselling, physiotherapy, speech therapy, podiatry and occupational

therapy.

16


Notes To and Forming Part of the Financial Statements for the Year Ended 30 June 2008

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 fall in this category group.

(ai)

New Accounting Standards and Interpretations

Certain new accounting standards and interpretations have been published that are not

mandatory for 30 June 2008 reporting period. As at 30 June 2008, the following standards and

interpretations had been issued but were not mandatory for financial years ending 30 June 2008.

The Health Service has not and does not intend to adopt these standards early.

Standard /

Interpretation

AASB 2007-2

Amendments to Australian

Accounting Standards

arising from AASB

Interpretation12

Summary

Amendments arise from the

release in February 2007 of

Interpretation 12 Service

Concession Arrangements

Applicable for

reporting

periods

beginning on

or ending on

Beginning 1 July 2008

Impact on

Health Service’s

Annual

Statements

The impact of any

changes that may be

required cannot be

reliably estimated and is

not disclosed in the

financial report.

AASB 8 Operating

Segments.

Supersedes AASB 114.

Segment Reporting

Beginning 1 January

2009

Not applicable.

AASB 2007-3

Amendments to Australian

Accounting Standards

arising from AASB 8 [

AASB 5, AASB 6, AASB

102, AASB 107, AASB

119, AASB 127, AASB

134, AASB 136, AASB

1023 and AASB 1038]

An accompanying amending

standard, also introduced

consequential amendments

into other Standards.

Beginning 1 January

2009

Impact not expected to

be significant.

17


Notes To and Forming Part of the Financial Statements for the Year Ended 30 June 2008

AASB 2007-6

Amendments to Australian

Accounting Standards

arising from AASB 123

[AASB 1, AASB 101, AASB

107, AASB 111, AASB 116

& AASB 138 and

Interpretations 1 & 12]

Option to expense

borrowing cost related to a

qualifying asset had been

removed. Entities are now

required to capitalise

borrowing costs relevant to

qualifying assets.

Beginning 1 January

2009

All Australian Government

jurisdictions are currently

still actively pursing an

exemption for

government for

capitalising borrowing

costs.

AASB 2007-8

Amendments to Australian

Accounting Standards

arising from AASB 101.

Editorial amendments to

Australian Accounting

Standards to align with IFRS

technology.

Beginning 1 January

2009

Impact not expected to

be significant.

Interpretation 12 Service

Concession Agreements

Amendments arising from

the release of AASB 2007-6

Beginning 1 January

2009

Impact not expected to

be significant.

AASB 1004 (Revised)

Contributions

Relocation of requirements

on contributions from AAS’s

27,29 and 31, into AASB

1004

Beginning 1 July 2008

Impact not expected to

be significant

AASB 1050 Administered

Items

Relocation of the

requirements for the

disclosure of administered

items from AAS 29 into a

new topic-based Standard

Beginning 1 July 2008

Impact not expected to

be significant.

18


Notes To and Forming Part of the Financial Statements for the Year Ended 30 June 2008

Note 2: Revenue

Revenue from Operating Activities

HSA HSA Non HSA Non HSA Total Total

2008 2007 2008 2007 2008 2007

$'000 $'000 $'000 $'000 $'000 $'000

Government Grants

- Department of Human Services 19,010 17,335 - - 19,010 17,335

- Dental Health Services Victoria 723 465 - - 723 465

- State Government - Other 292 298 - - 292 298

Total Government Grants 20,025 18,098 - - 20,025 18,098

Indirect Contributions by Department of Human Services

- Insurance 489 525 - 20 489 545

- Long Service Leave (3) 51 - - (3) 51

Total Indirect Contributions by Department of Human

Services 486 576 - 20 486 596

Patient and Resident Fees (refer note 2b) 2,291 2,344 - 35 2,291 2,379

Total Patient & Resident Fees 2,291 2,344 - 35 2,291 2,379

Other Revenue from Operating Activities - - 1,147 141 1,147 141

Sub-Total Revenue from Operating Activities 22,802 21,018 1,147 196 23,949 21,214

Revenue from Non-Operating Activities

Interest - - 184 - 184 -

Property Income - - 111 212 111 212

Diagnostic Imaging - - 1,166 1,129 1,166 1,129

Supported Residential Service - - 1,638 1,725 1,638 1,725

Meals on Wheels - - 172 112 172 112

Sub-Total Revenue from Non-Operating Activities - - 3,271 3,178 3,271 3,178

Revenue from Capital Purpose Income

State Government Capital Grants

- Targeted Capital Works and Equipment 655 42 - - 655 42

Residential Accommodation Payments (refer note 2b) 169 103 - - 169 103

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

- - 43 23 43 23

Donations and Bequests - - 84 1,917 84 1,917

Capital Interest - - - 13 - 13

Sub-Total Revenue from Capital Purpose Income 824 145 127 1,953 951 2,098

Total Revenue (refer to note 2a) 23,626 21,163 4,545 5,327 28,171 26,490

Indirect contributions by Department of Human Services

Department of Human Services makes certain payments on behalf of the Health Service. These amounts have been brought to account in determining the operating result for the year by

recording them as revenue and expenses.

19


Notes To and Forming Part of the Financial Statements for the Year Ended 30 June 2008

Note 2a: Analysis of Revenue by Source

Revenue from Services Supported by Health Services

Agreement

Acute RAC Primary Other Total

Health

Health

2008 2008 2008 2008 2008

$'000 $'000 $'000 $'000 $'000

Government Grants 14,751 749 4,522 - 20,022

Indirect contributions by Department of Human Services 411 44 20 14 489

Capital Purpose Income (refer Note 2) 655 - - - 655

Patient and Resident Fees (refer note 2b) 378 1,725 188 - 2,291

Residential Accommodation Payments (refer note 2b) - 169 - - 169

Sub-Total Revenue from Services Supported by Health

Services Agreement 16,195 2,687 4,730 14 23,626

Revenue from Services Supported by Hospital and

Community Initiatives

Business Units - - - 3,087 3,087

Other Activities

Other Revenue from Operating Activities - - - 1,147 1,147

Interest & Dividends - - - 184 184

Capital Purpose Income (refer Note 2) - - - 127 127

Sub-Total Revenue from Services Supported by Hospital

and Community Initiatives - - - 4,545 4,545

Total Revenue from Operations 16,195 2,687 4,730 4,559 28,171

Indirect contributions by Department of Human Services:

Department of Human Services makes certain payments on behalf of the Health Service. These amounts have been brought to account in determining the operating result for the year by

recording them as revenue and expenses.

20


Notes To and Forming Part of the Financial Statements for the Year Ended 30 June 2008

Note 2a: Analysis of Revenue by Source continued

Revenue from Services Supported by Health Services

Agreement

Acute RAC Primary Other Total

Health

Health

2007 2007 2007 2007 2007

$'000 $'000 $'000 $'000 $'000

Government Grants 15,198 558 1,625 717 18,098

Indirect contributions by Department of Human Services 472 62 25 17 576

Patient and Resident Fees (refer note 2b) 285 1,901 158 - 2,344

Capital Purpose Income (refer Note 2) 42.00 - - - 42

Residential Accommodation Payments (refer note 2b) - 103 - - 103

Sub-Total Revenue from Services Supported by Health

Services Agreement 15,997 2,624 1,808 734 21,163

Revenue from Services Supported by Hospital and

Community Initiatives

Business Units - - - 3,178 3,178

Other Activities

Other Revenue from Operating Activities - - - 196 196

Capital Purpose Income (refer Note 2) - - - 1,953 1,953

Sub-Total Revenue from Services Supported by Hospital

and Community Initiatives - - - 5,327 5,327

Total Revenue 15,997 2,624 1,808 6,061 26,490

Indirect contributions by Department of Human Services:

Department of Human Services makes certain payments on behalf of the Health Service. These amounts have been brought to account in determining the operating result for the year by

recording them as revenue and expenses.

21


Notes To and Forming Part of the Financial Statements for the Year Ended 30 June 2008

Note 2b: Patient and Resident Fees

Total

Total

2008 2007

$'000 $'000

Patient and Resident Fees Raised

Recurrent:

Acute

– Inpatients 378 285

– Outpatients 188 158

Residential Aged Care

– Residential Accommodation Payments 1,725 1,901

- Other - 35

Total Recurrent 2,291 2,379

Capital Purpose:

Residential Accommodation Payments(*) 169 103

Total Capital 169 103

(*) This includes accommodation charges, interest earned on accommodation bonds and retention amount.

Note 2c: Net Gain/(Loss) on Disposal of Non-Current Assets

Total

Total

2008 2007

$'000 $'000

Proceeds from Disposals of Non-Current Assets

Motor Vehicles 48 33

Less: Written Down Value of Non-Current Assets Sold

Motor Vehicles 5 10

Net gains/(losses) on Disposal of Non-Current Assets 43 23

22


Notes To and Forming Part of the Financial Statements for the Year Ended 30 June 2008

Note 3a: Analysis of Expenses by Source

Services Supported by Health Services Agreement

Acute RAC Primary Other Total

Health

Health

2008 2008 2008 2008 2008

$'000 $'000 $'000 $'000 $'000

Employee Benefits 10,354 2,297 3,586 1,442 17,679

Non Salary Labour Costs 1,395 - - - 1,395

Supplies & Consumables 1,314 110 82 - 1,506

Other Expenses From Continuing Operations 2,234 251 986 341 3,812

Depreciation and Amortisation (refer note 4) 1,042 212 97 - 1,351

Share of Net Result of Joint Ventures Accounted - - - 33 33

for using the Equity Method (refer note 10)

Sub-Total Expenses from Services Supported by Health Services

Agreement 16,339 2,870 4,751 1,816 25,776

Services Supported by Hospital and Community Initiatives

Employee Benefits - - - 1,387 1,387

Non Salary Labour Costs - - - 995 995

Supplies & Consumables - - - 266 266

Other Expenses From Continuing Operations - - - 310 310

Depreciation and Amortisation (refer note 4) - - - 230 230

Sub-Total Expense from Services Supported by Hospital and Community

Initiatives - - - 3,188 3,188

Total Expenses 16,339 2,870 4,751 5,004 28,964

24


Notes To and Forming Part of the Financial Statements for the Year Ended 30 June 2008

Note 3a: Analysis of Expenses by Source (Continued)

Services Supported by Health Services Agreement

Acute RAC Primary Other Total

Health

Health

2007 2007 2007 2007 2007

$'000 $'000 $'000 $'000 $'000

Employee Benefits 11,751 2,180 1,567 1,410 16,908

Non Salary Labour Costs 1,241 - - - 1,241

Supplies & Consumables 1,334 101 33 267 1,735

Other Expenses From Continuing Operations 2,048 255 139 279 2,721

Depreciation and Amortisation (refer note 4) 835 218 92 - 1,145

Finance Costs 18 - - - 18

Share of Net Result of Joint Ventures Accounted - - - 82 82

for using the Equity Method (refer note 10)

Sub-Total Expenses from Services Supported by Health

Services Agreement 17,227 2,754 1,831 2,038 23,850

Services Supported by Hospital and Community

Initiatives

Employee Benefits - - - 1,378 1,378

Non Salary Labour Costs - - - 1,024 1,024

Supplies & Consumables - - - 216 216

Other Expenses From Continuing Operations - - - 307 307

Depreciation and Amortisation (refer note 4) - - - 224 224

Sub-Total Expense from Services Supported by Hospital

and Community Initiatives - - - 3,149 3,149

Total Expenses 17,227 2,754 1,831 5,187 26,999

25


Notes To and Forming Part of the Financial Statements for the Year Ended 30 June 2008

Note 3b: Analysis of Expenses by Internal and

Restricted Specific Purpose Funds for Services

Supported by Hospital and Community

Initiatives

Total

Total

2008 2007

$'000

$'000

Diagnostic Imaging 1,725 1,624

Sea View House 1,236 1,199

Meals on Wheels 115 74

Specialist Clinic 108 81

Medical Centre 4 171

TOTAL 3,188 3,149

Note 4: Depreciation and Amortisation

Total

Total

2008 2007

$'000

$'000

Depreciation

Buildings 683 575

Plant & Equipment 436 419

Medical Equipment 238 171

Computer Equipment 32 49

Motor Vehicles 78 93

Other Equipment 114 62

Total Depreciation 1,581 1,369

26


Notes To and Forming Part of the Financial Statements for the Year Ended 30 June 2008

Note 5: Finance Costs

Total

Total

2008 2007

$'000

$'000

Interest on Borrowings - Short Term 87 127

TOTAL FINANCE COSTS 87 127

Note 6: 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.

Total

Total

2008 2007

$'000

$'000

Cash at Bank 1,291 121

Bank Overdraft - (230)

Short Term Money Market 1,805 2,706

TOTAL 3,096 2,597

Represented by:

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

Cash at Bank 1,291 121

Bank Overdraft - (230)

Short Term Money Market 1,805 2,706

TOTAL 3,096 2,597

27


Notes To and Forming Part of the Financial Statements for the Year Ended 30 June 2008

Note 7: Receivables

Total Total

2008 2007

$'000 $'000

CURRENT

Trade Debtors 317 228

Patient Fees 365 265

Accrued Revenue - DHS 144 -

Accrued Investment Income 5 -

Accrued Revenue - Other 115 -

GST Receivable 85 198

TOTAL 1,031 691

LESS Provision for Doubtful Debts

Trade Debtors (13) -

Patient Fees (7) (9)

TOTAL CURRENT RECEIVABLES 1,011 682

NON CURRENT

DHS – Long Service Leave 64 269

TOTAL NON-CURRENT RECEIVABLES 64 269

TOTAL RECEIVABLES 1,075 951

(a) Movement in the Allowance for doubtful debts

Total Total

2008 2007

$'000 $'000

Balance at beginning of year 9 12

Amounts written off during the year (11) (3)

Amounts recovered during the year - -

Increase/(decrease) in allowance recognised in profit or loss 22 -

Balance at end of year 20 9

(b) Ageing analysis of receivables

Refer to Note 18(c) for the ageing analysis of receivables

(c) Nature and extent of risk arising from receivables

Refer to Note 18(c) for the nature and extent of credit risk arising from receivables.

28


Notes To and Forming Part of the Financial Statements for the Year Ended 30 June 2008

Note 8: Other Financial Assets

Total Total

2008 2007

$'000 $'000

Money Held in Trust 46 31

Refundable Entrance fees 41 62

SRS Ingoing Debtors - 110

TOTAL OTHER ASSETS 87 203

Note 9: Inventories

Total Total

2008 2007

$'000 $'000

CURRENT

Pharmaceuticals - at cost 77 63

Catering Supplies - at cost 11 14

Housekeeping Supplies - at cost 15 15

Medical and Surgical Lines - at cost 86 107

Administration Stores - at cost 35 37

TOTAL INVENTORIES 224 236

29


Notes To and Forming Part of the Financial Statements for the Year Ended 30 June 2008

Note 10: Investments Accounted for Using the Equity Method

Name of Entity

Principal Activity

Ownership Interest

2008 2007

%

%

South West Alliance of Rural Health Information Technology 8.28% 10.65%

of

of

Operating Operating

Result Result

Portland District Health has a joint venture interest 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 hospital.

Portland District Health's interest in the above jointly controlled operations and assets

is detailed below.

2008 2007

$'000

$'000

Current Assets 68 84

Non Current Assets 59 280

Share of Total Assets 127 364

Current Liabilities 74 222

Non Current Liabilities 1 -

Share of Total Liabilities 75 222

Net Share of Joint Venture 52 142

Share of Current Year Profit / (Loss) (33) (82)

Capital Commitment - 19

Operating Lease Commitment 5 15

Operating Contract Commitments 170 253

30


Notes To and Forming Part of the Financial Statements for the Year Ended 30 June 2008

Note 11: Property, Plant & Equipment

Total

Total

2008 2007

$'000

$'000

Land

- Land at Valuation 5,099 4,530

Less Impairment - -

Total Land 5,099 4,530

Buildings

- Buildings Under Construction 259 7,145

- Buildings at Cost 7,972 -

Less Accumulated Depreciation and Impairment - -

7,972 -

- Buildings at Valuation 27,321 27,321

Less Accumulated Depreciation and Impairment (683)

26,638 27,321

Total Buildings 34,869 34,466

Plant and Equipment at Cost

- Plant and Equipment 6,718 6,681

Less Accumulated Depreciation and Impairment (5,309) (4,873)

Total Plant and Equipment 1,409 1,808

Medical Equipment at Cost

- Medical Equipment 3,263 2,960

Less Accumulated Depreciation and Impairment (2,313) (2,075)

Total Medical Equipment 950 885

Computers and Communication at Cost

- Computers and Communication 1,699 1,659

Less Accumulated Depreciation and Impairment (1,614) (1,581)

Total Computers and Communications 85 78

Furniture and Fittings at Cost

- Furniture and Fittings 854 713

Less Accumulated Depreciation and Impairment (591) (477)

Total Furniture and Fittings 263 236

Motor Vehicles at Cost

- Motor Vehicles 464 552

Less Accumulated Depreciation and Impairment (298) (358)

Total Motor Vehicles 166 194

TOTAL 42,841 42,197

31


Notes To and Forming Part of the Financial Statements for the Year Ended 30 June 2008

Note 11: Property, Plant & Equipment (Continued)

Reconciliations of the carrying amounts of each class of asset at the beginning and end of the previous and current financial year is set out below.

Crown Buildings Plant & Medical Computers & Other Motor Total

Land Equipment Equipment Commnctns Equipment Vehicles

$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

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

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

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

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

Depreciation and Amortisation (Note 4) - (575) (419) (170) (49) (63) (93) (1,369)

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

Additions - 1,086 111 307 39 155 55 1,753

Disposals - - - - - - (5) (5)

Revaluation 569 - - - - - - 569

Depreciation and Amortisation (Note 4) - (683) (436) (238) (32) (114) (78) (1,581)

Change in Accounting Policy - - (74) (4) - (14) - (92)

Balance at 30 June 2008 5,099 34,869 1,409 950 85 263 166 42,841

Land and buildings carried at valuation

Portland and District Health contracted the services of Alison McLeod AAPI from Land Link Property Group in June 2007 to revalue the Land and Buildings owned by the

Service. Valuations completed on 30 June 2007 totalled $4,530,000 for Land (previously $2,900,000 - 2003) and $27,321,000 for Buildings

(previously $22,900,000 - 2003)

Under the Financial Reporting Direction (FRD) 103C the Health Service applied the Valuer-General Victoria land indexation factors to Land and Buildings which

resulted in an increment of $568,800 to the Land value as at 30 June 08.

32


Notes To and Forming Part of the Financial Statements for the Year Ended 30 June 2008

Note 12: Payables

Total

Total

2008 2007

$'000

$'000

CURRENT

Trade Creditors 825 928

Accrued Expenses 122 1,723

DHS 1,293 -

GST Payable 39 313

TOTAL 2,279 2,964

Note 13: Interest Bearing Liabilities

Total

Total

2008 2007

$'000

$'000

CURRENT

Australian Dollar Borrowings

-Loan Treasury Corporation Victoria 209 171

TOTAL AUSTRALIAN DOLLAR BORROWINGS

209 171

NON CURRENT

Australian Dollar Borrowings

-Loan Treasury Corporation Victoria 1,197 1,436

TOTAL AUSTRALIAN DOLLAR BORROWINGS

1,197 1,436

TOTAL INTEREST BEARING LIABILITIES

1,406 1,607

Current

-Secured Long Term Fixed Interest Loan with Treasury 209 171

Corporation Victoria.

Non Current

-Secured Long Term Fixed Interest Loan with Treasury

Corporation Victoria. 1,197 1,436

The approved Bank Overdraft Limit is $800,000.

Finance Costs incurred by the Health Service during the

year are accounted as follows;

Amount of finance costs recognised as expense. 87 127

33


Notes To and Forming Part of the Financial Statements for the Year Ended 30 June 2008

Note 14: Provisions

Total

Total

2008 2007

$'000

$'000

CURRENT

Employee Benefits (refer Note 14a) 3,645 3,606

TOTAL 3,645 3,606

NON-CURRENT

Employee Benefits (refer Note 14a) 889 939

TOTAL 889 939

34


Notes To and Forming Part of the Financial Statements for the Year Ended 30 June 2008

Note 14a: Employee Benefits

CURRENT

Total

Total

2008 2007

$'000

$'000

Unconditional Long Service Leave 1,246 1,316

Annual Leave 1,607 1,567

Accrued Salaries and Wages 742 678

Accrued Days Off 50 45

TOTAL * 3,645 3,606

* Current Employee benefits that:

Expected to be utilised within 12 months (nominal value)

Expected to be utilised after 12 months (present value)

1,459 1,486

2,186 2,120

3,645 3,606

NON-CURRENT

Conditional Long Service Leave 889 939

TOTAL NON CURRENT EMPLOYEE BENEFITS 889 939

Movement in Long Service Leave:

Balance 1 July 2,255 2,269

Provision made during the year 308 213

Settlement made during the year 428 227

Balance 30 June 2,135 2,255

Note 15: Other Liabilities

Total

Total

2008 2007

$'000

$'000

Provision for Fee Sharing 113 45

Monies Held in Trust

- Refundable Entrance fees 41 62

- Patient monies held in trust 46 31

TOTAL 200 138

35


Notes To and Forming Part of the Financial Statements for the Year Ended 30 June 2008

Note 16: Equity

(a) Reserves

Land and Buildings Asset Revaluation Reserve

Total

Total

2008 2007

$'000

$'000

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

Revaluation Increment/(Decrements)

- Land 569 1,630

- Buildings - 6,237

Balance at the end of the reporting period * 8,436 7,867

* Represented by:

- Land 2,199 1,630

- Buildings 6,237 6,237

8,436 7,867

Restricted Specific Purpose Reserve

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

Transfer to Restricted Specific Purpose Reserve 80 1,725

Balance at the end of the reporting period 1,805 1,725

Total Reserves 10,241 9,592

(b) Contributed Capital

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

Capital contributed from the Victorian Government 2,200 5,635

Balance at the end of the reporting period 35,695 33,495

(c) Accumulated Surpluses/(Deficits)

Balance at the beginning of the reporting period (6,015) (3,781)

Net Result for the Year (793) (509)

Transfer to Restricted Specific Purpose Reserve (80) (1,725)

Adjustments Resulting from Change in Accounting Policy (92) -

Balance at the end of the reporting period (6,980) (6,015)

Total Equity at the reporting date 38,956 37,072

(1) The land and buildings assets revaluation reserve arises on the revaluation of land and buildings.

36


Notes To and Forming Part of the Financial Statements for the Year Ended 30 June 2008

Note 17: Reconciliation of Net Result for the Year

to Net Cash Inflow/(Outflow) from Operating

Activities

Total Total

2008 2007

$'000 $'000

Net Result for the Year

(793) (509)

Depreciation & Amortisation 1,581 1,369

Net (Gain)/Loss from Sale of Plant and Equipment (43) (23)

Change in Operating Assets & Liabilities,

Increase/(Decrease) in Payables (685) 1,601

Increase/(Decrease) in Employee Benefits (11) 275

Increase/(Decrease) in Other Current Liabilities 62 (263)

(Increase)/Decrease in Other Current Assets 115 179

(Increase)/Decrease in Inventory 12 (17)

(Increase)/Decrease in Receivables (124) 259

NET CASH INFLOW / (OUTFLOW) FROM OPERATING ACTIVITIES

114 2,871

37


Notes To and Forming Part of the Financial Statements for the Year Ended 30 June 2008

Note 18: Financial Instruments

(a) Significant Accounting Policies

Details of the significant accounting policies and method adopted, including the criteria for recognition, the basis of measurement and the basis on

which income and expenses are recognised, with respect to each class of financial asset, financial liability and equity instrument are disclosed in Note 1

to the financial statements.

(b) Categorisation of Financial Instruments

Details of each of the categories in accordance with AASB 139, shall be disclosed either on the face of the Balance Sheet or in the notes.

Financial Assets

Carrying Carrying

Amount Amount

2008 2007

Note Category $,000 $,000

Cash and cash equivalents 6 N/A 3,096 2,597

Receivables 7 Receivables 990 753

Other financial assets 8 Available for sale financial assets (at fair value) 41 172

Financial Liabilities

Payables 12 Financial liabilities measured at amortised cost 2,240 2,651

Interest Bearing Liabilities 13 Financial liabilities measured at amortised cost 1,406 1,607

Refundable Entrance Fees 15 Financial liabilities measured at amortised cost 200 138

38


Notes To and Forming Part of the Financial Statements for the Year Ended 30 June 2008

Note 18: Financial Instruments (Continued)

(c) Credit Risk

The Health Service's exposure to credit risk and effective weighted average interest rate by ageing period is set out in the

following table. For interest rates applicable to each class of asset refer to individual notes to the financial statements

Interest rate exposure and ageing analysis of financial assets at 30 June 2008.

Weighted Interest Rate Exposure Past Due But Not Impaired

Average Consol'd Fixed Variable Non Not Past Less than 1-3 3 Months 1-5 Over 5 Impaired

Effective Carrying Interest Interest Interest Due and Not 1 Month Months 1 Year Years Years Financial

Interest Amount Rate Rate Bearing Impaired Assets

2008 Rates (%) $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Financial Assets

Cash and Cash Equivalents 5.5 3,096 - 3,096 - 3,096 - - - - - -

Receivables - 990 - - 990 - 466 160 300 64 - -

Other Financial Assets 5.5 41 - - 41 - - 41 - - - -

Total Financial Assets 4,127 - 3,096 1,031 3,096 466 201 300 64 - -

2007

Financial Assets

Cash and Cash Equivalents 2.5 2,597 - 2,597 - 2,597 - - - - - -

Receivables - 753 - - 753 - 242 54 188 269 - -

Other Financial Assets 2.4 172 - - 172 - - 172 - - - -

Total Financial Assets 3,522 - 2,597 925 2,597 242 226 188 269 - -

39


Note 18: Financial Instruments (Continued)

(d) Liquidity Risk

The following table discloses the contractual maturity analysis for the Health Service's financial liabilities. For

interest rates applicable to each class of liability refer to individual notes to financial statements.

Interest rate exposure and maturity analysis of financial liabilities at 30 June 2008.

Interest Rate Exposure Weighted Maturity Dates

Fixed Variable Non Average Contractual Less than 1-3 3 Months 1-5 Over 5

Carrying Interest Interest Interest Effective Cash 1 Month Months 1 Year Years Years

Amount Rate Rate Bearing Interest Flows

2008 $'000 $'000 $'000 $'000 Rates (%) $'000 $'000 $'000 $'000 $'000 $'000

Payables

Trade Creditors and Accruals 2,240 - - 2,240 - 2,240 852 95 1,293 - -

Interest Bearing Liabilities 1,406 - 1,406 - 5.75 1,406 - - 209 1,197 -

Other Liabilities 200 - 200 - 5.5 200 - - 200 - -

Total Financial Liabilities 3,846 - 1,606 2,240 - 3,846 852 95 1,702 1,197 -

2007

Payables

Trade Creditors and Accruals 2,651 - - 2,651 - 2,651 2,651 - - - -

Interest Bearing Liabilities 1,607 - 1,607 - - 1,607 - - 171 684 752

Other Liabilities 138 - - 138 - 138 138 - - - -

Total Financial Liabilities 4,396 - 1,607 2,789 - 4,396 2,789 - 171 684 752

40


Note 18: Financial Instruments (Continued)

(e) Market Risk

Currency Risk

The Health Service is exposed to insignificant foreign currency risk through its payables relating to purchases of

supplies and consumables from overseas. This is because of the limited amount of purchases denominated in

foreign currencies and a short timeframe between commitment and settlement

Interest Rate Risk

Exposure to interest rate risk might arise primarily through the Health Service's interest bearing liabilities.

Minimisation of risk is achieved by mainly undertaking fixed rate or non-interest bearing financial instruments.

For financial liabilities, the Health Service mainly undertake financial liabilities with relatively even maturity profiles.

Sensitivity Disclosure Analysis

Taking into account past performance, future expectations, economic forecasts, and management's knowledge

and experience, the Health Service believe the following movements are "reasonably possible" over the next 12

months (Base rates are sourced from the Reserve Bank of Australia).

- A parallel shift of +1% and -1% in market interest rates (AUD) from year-end rates of 6%;

- A parallel shift of +1% and -1% in inflation rate from year-end rates of 2%

The following table discloses the impact on net operating result and equity for each category of financial instrument

held by the Health Service at year end as presented to key management personnel, if changes in the relevant risk

occur.

41


Carrying Interest Rate Risk Other Price Risk

Amount -1% 1% -1% 1%

Profit Equity Profit Equity Profit Equity Profit Equity

2008 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Financial Assets

Cash and Cash Equivalents 3,096 (31) (31) 31 31 - - - -

Receivables 990 - - - - - - - -

Other Financial Assets 41 - - - - - - - -

Financial Liabilities

Trade Creditors and Accruals 2,240 - - - - - - - -

Interest Bearing Liabilities 1,406 - - - - - - - -

Other Financial Liabilities 200 - - - - - - - -

2007

Financial Assets

Cash and Cash Equivalents 2,597 (26) (26) 26 26 - - - -

Receivables 753 - - - - - - - -

Other Financial Assets 172 - - - - - - - -

Financial Liabilities

Trade Creditors and Accruals 2,651 - - - - - - - -

Interest Bearing Liabilities 1,607 - - - - - - - -

Other Financial Liabilities 138 - - - - - - - -

42


Notes To and Forming Part of the Financial Statements for the Year Ended 30 June 2008

Note 22: Segment Reporting

REVENUE

Hospital RACS Primary Care Other Total

2008 2008 2008 2008 2008

$'000 $'000 $'000 $'000 $'000

External Segment Revenue 16,195 2,687 4,730 4,559 28,171

Total Revenue 16,195 2,687 4,730 4,559 28,171

EXPENSES

External Segment Expenses 16,339 2,870 4,751 4,884 28,844

Total Expenses 16,339 2,870 4,751 4,884 28,844

Net Result from ordinary activities (144) (183) (21) (325) (673)

Interest Expense - - - (87) (87)

Interest Income - - - - -

Share of Net Result of Associates & Joint

Ventures using Equity Model - - - (33) (33)

Net Result for Year

(144) (183) (21) (445) (793)

OTHER INFORMATION

Segment Assets 39,928 1,579 180 5,688 47,375

Total Assets 39,928 1,579 180 5,688 47,375

Segment Liabilities 6,072 705 63 1,579 8,419

Total Liabilities 6,072 705 63 1,579 8,419

Investments in associates and joint venture

partnership 52 - - - 52

Non cash expenses other than depreciation 411 44 20 14 489

Depreciation & amortisation expense 1,042 212 97 230 1,581

44


Notes To and Forming Part of the Financial Statements for the Year Ended 30 June 2008

Note 22: Segment Reporting

REVENUE

Hospital RACS Primary Care Other Total

2007 2007 2007 2007 2007

$'000 $'000 $'000 $'000 $'000

External Segment Revenue 15,997 2,624 1,808 6,061 26,490

Total Revenue 15,997 2,624 1,808 6,061 26,490

EXPENSES

External Segment Expenses 17,588 2,754 1,421 5,070 26,833

Total Expenses 17,588 2,754 1,421 5,070 26,833

Net Result from ordinary activities (1,591) (130) 387 991 (343)

Interest Expense (30) - - (97) (127)

Interest Income 3 - - 40 43

Share of Net Result of Associates & Joint

Ventures using Equity Model (31) (15) (19) (17) (82)

Net Result for Year (1,649) (145) 368 917 (509)

OTHER INFORMATION

Segment Assets 45,027 612 175 512 46,326

Total Assets 45,027 612 175 512 46,326

Segment Liabilities 8,826 208 75 145 9,254

Total Liabilities 8,826 208 75 145 9,254

Investments in associates and joint venture

partnership 142 - - - 142

Non cash expenses other than depreciation

549 62 25 17 653

Depreciation & amortisation expense 804 236 101 228 1,369

45


Notes To and Forming Part of the Financial Statements for the Year Ended 30 June 2008

Note 22: Segment Reporting (continued)

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

Business Segments

Hospital

Nursing Home

Primary Health

Other

Services

Acute bed based services, accident & emergency, diagnostic, outpatient services

Aged Residential Care Services

Primary Care and Community based services

Supported Residential Accommodation

Medical Clinic

PDH Medical Centre

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.

46


Notes To and Forming Part of the Financial Statements for the Year Ended 30 June 2008

Note 23: Responsible Persons and Executive Officer Disclosures

(a)

Responsible Persons

Responsible Ministers

The Honourable Bronwyn Pike, MLA, Minister for Health

Period

01/07/2007 - 03/08/2007

The Honourable Daniel Andrews, MP, Minister for Health

Governing Boards

Mr G Andrews

Mr W Collett

Mr B du Vergier

Mr V Gannon

Mr A Govanstone

Mr J Harpley

Ms A McLeod

Mrs M Menzel

Mr M Noske

Mr B Sparrow

03/08/2007 - 30/06/2008

01/07/2007 - 30/06/2008

01/07/2007 - 30/06/2008

01/07/2007 - 30/06/2008

01/07/2007 - 30/06/2008

09/10/2007 - 30/06/2008

01/07/2007 - 30/06/2008

09/10/2007 - 30/06/2008

01/07/2007 - 30/06/2008

01/07/2007 - 30/06/2008

01/07/2007 - 30/06/2008

Ministerial Delegates

Mr M Rhook

Ms H Wellington

Accountable Officers

Mr J O'Neill

01/07/2007 - 30/06/2008

01/07/2007 - 30/06/2008

04/07/2007 - 30/06/2008

(b)

Remuneration of Responsible Persons

The number of Responsible Persons are shown in their relevant income bands;

Income Band

2008

No.

2007

No.

$0 - $9,999 10 10

$30,000 – $39,999 2 -

$170,000 – $179,999 - 1

$230,000 – $239,999 1 -

13 11

Total remuneration received or due and

received by Responsible Persons from the

reporting entity amounted to:

290,558 174,999

(c)

Retirement Benefits of Responsible Persons

No responsible person received retirement benefits from the Health Service in connection with their retirement

as a responsible person.

(d)

Other Transactions of Responsible Persons and their Related Parties.

There were no other transactions with responsible persons and their related entities.

47


Notes To and Forming Part of the Financial Statements for the Year Ended 30 June 2008

Note 24: Events Occuring after the Balance Sheet Date

There were no events occuring after reporting date, which require additional information to be

disclosed.

Note 25: Economic Dependency

The Health Service receives a significant portion of its operating revenue from the Department of

Human Services. In a letter dated 29 July 2008 the Department undertook to provide the Health

Service with adequate cash flow support to enable it to meet its current and future obligations as

and when they fall due for a period up to September 2009 should such support be required.

This support is conditional upon the Health Service's Board committing to achieving the

agreed budget targets, and all requirements of the Health Service Agreement in 2008-2009.

Note 26: Change in Accounting Policy

Commencing 1st July 2007, the Health Service changed its accounting policy of capitalising

assets from $500 to $1,000 commencing 1st July 2007. The impact of this change for

2007-08 was a reduction in asset values of (refer note 11) ;

$

Plant & Equipment 73,631

Medical Equipment 4,459

Furniture & Fittings 13,763

Total 91,853

49

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