CAH Annual Report 2006 - South West Alliance of Rural Health

Colac Area HealthAnnual Report 2006Our visionColac Area Health aims to be a recognised leader in the developmentand provision of responsive, integrated health care.Our missionTo promote the health and wellbeing of the Colac andDistrict community through the provision ofquality acute, aged, residential and communityservices that are accessible, affordable, flexibleand integrated.

Colac Area Health Annual Report 2006Inside this reportPage2 Vision and Mission3 Highlights3 Calendar of Events4 Significant Facts5 Our Performance6 Who We Are, the Region7 Our Services8 Chairman’s and Chief ExecutiveOfficer’s report11 Strategic Direction - Key ReportingAreas15 Corporate Governance16 Board of Directors18 Organisational Chart19 Executive Management Team20 Quality Program21 Health Information Services22 Infection Control24 Information and CommunicationTechnology25 Compliance Index26 Nursing Division30 Director of Medical Services31 Visiting Medical Staff32 Primary Care Division36 Community Partnerships36 Bequests and donations36 Volunteers38 Our people39 Occupational Health and Safety42 Service Awards43 Complaints42 General Services42 Waste Management45 Financial Report46 Certification74 Auditor-General’s Report76 Statutory Compliance77 Research and Publications77 SponsorsVisionColac Area Health aims to be a recognisedleader in the development and provision ofresponsive, integrated health care.MissionTo promote the health and wellbeing of the Colacand district community through the provision ofquality acute, aged, residential and communityservices that are accessible, affordable, flexible andintegrated.Corporate ValuesPartnershipsInnovationLeadershipIntegrityQualityRespectColac Area Health — Our highlights for the year• Redevelopment of Community Hub.• Alfred Felton Bequest ($20,000) and RACV Foundation ($5,000) for Youth Health Promotion Caravan.• Premier of Victoria Launch of South West Alliance of Rural Health (SWARH) Virtual ServicesProject (July, 2005).• 2005 Victorian Public Health Awards for Excellence and Innovation awarded toBe Active, Eat Well (BAEW) Project.• Funding from Victorian Managed Insurance Authority (VMIA) for appointment of a full-timeRefugee Health Nurse position.• Completion of a $14M Residential Aged Care Facility Redevelopment Project,Corangamarah (July, 2006).• Gala Evening – “A Night Under the Stars” – successful fund-raising event for Colac Area Healthand local community.• Achieved three-year Accreditation.• Be Active, Eat Well Project attracts further 12 months funding.• Pilot Site for Bedside Entertainment System Technology (BEST).Calendar of Events• Official Opening of Corangamarah – August, 2006.• Australian Council on Healthcare Standards Accreditation – September, 2006.• Annual General Meeting – October, 2006.• Corangamarah Art Competition – Exhibition and winner announced October, 2006.2Colac Area Health Annual Report 20063

Colac Area Health Annual Report 2006Significant FactsOur PerformanceFinancial2005/2006 2004/2005 2003/2004 2002/2003 2001/2002 2000/2001Total Revenue 34,497,391 27,362,187 25,165,947 27,835,998 26,611,641 22,442,737Total Expenditure 27,876,313 27,266,900 25,676,618 24,270,073 22,675,209 22,821,591Revaluation Increment 5,602,270 - - 2,243,556 - -Fund Decrease Resulting fromChange in Accounting Policy - - - (35,215) - -Hospital Bed DaysYearDays2001/2002 15,3442002/2003 14,8092003/2004 13,6022004/2005 13,4952005/2006 13,417Surplus/(Deficit) inc. CapitalIncome and Unfunded Depreciation 12,223,348 95,287 (510,671) 5,774,266 3,936,432 (378,854)Total Assets 41,823,383 28,938,566 29,007,894 28,617,037 22,429,913 17,509,579Total Liabilities 6,796,864 6,484,135 6,808,388 5,909,754 5,497,941 4,477,922Total Equity 35,026,519 22,454,431 22,199,506 22,707,283 16,931,972 13,031,657StaffEquivalent Full Time 285.90 285.60 282.55 283.80 271.51 263.73Bed DaysHospital 13,417 13,495 13,602 14,809 15,344 16,147Average Length of Stay 2.67 2.78 3.05 3.32 3.54 3.63Aged Care 25,418 24,385 25,965 27,713 28,132 27,613Births 170 194 190 168 206 195Operations 2,280 2,190 1,999 2,108 1,903 2,093Inpatient StatisticsSame Day 2,722 2,524 2,231 2,281 1,890 1,919Multi Day 2,308 2,342 2,231 2,293 2,450 2,535TOTAL SEPARATIONS 5,030 4,866 4,462 4,574 4,340 4,454WIES 3,011 2,925 2,822 2,859 3,005 3,113Aged Care StatisticsResidents 127 140 155 112 115 123Emergency DepartmentOutpatient Attendances 7,029 6,941 8,091 8,091 7,081 7,057Community ServicesTotal Contacts 52,597 52,617 52,707 52,531 51,792 46,918Total Clients 13,302 13,289 13,315 15,405 13,301 13,692Surgical Services2004 2005 2006 % +/-Ophthalmology 112 165 176 6.7%Urology 85 162 194 19.8%Orthopaedic 105 162 219 35.2%Obstetrics/gynaecology 181 197 142 (38.7%)Weighted Inlier EquivalentSeparations (WIES)Year2001/2002 3,0052002/2003 2,8592003/2004 2,8222004/2005 2,9252005/2006 3,0115 Year Financial ComparisonYear Total Revenue Total Expenditure2001/2002 26,611,641 22,675,2092002/2003 27,835,998 24,270,0732003/2004 25,165,947 25,676,6182004/2005 27,362,187 27,266,9002005/2006 34,497,391 27,846,6374 Colac Area Health Annual Report 20065

Colac Area Health Annual Report 2006Who we are, the region we cover, our servicesObstetrics,Gynaecology andAged Care Servicesare among Colac AreaHealth’s diverse rangeof services. AgedCare services includeResidential and RespiteCare and the newlydevelopedResidentialAged Care Facility.Colac Area Health (CAH) provides servicesto Colac Otway, Corangamite and Surf Coastshires with a catchment population of about30,000.Colac Area Health is a unique, integratedHealth Service model which providesAcute, Aged Care, Primary Care and AlliedHealth services. CAH currently operates aPublic Health Service (50 beds), two AgedCare facilities (under one licence 78 beds),Birregurra Community Health Centre,Community Nursing incorporating Home andCommunity Care, Hospital in the Home, PostAcute Care, Palliative Care and an extensiverange of Primary Care services.Our HistoryColac Community Health Serviceswas established on July 1, 1995, by theamalgamation of Colac District Hospital,Colac Area Community Health CentreIncorporated and Colac Housing andFinancial Counselling Service. A furtheramalgamation took place with the Birregurraand District Community Hospital on January1, 1997. From July 1, 2002 the organisationofficially became known as Colac Area Health.To celebrate our history, CAHcommissioned the services of Dr Dawn Peelto document our comprehensive history. Herbook Quality Community Care — Colac DistrictHospital 1882 to Colac Area Health 2003 wasofficially launched in March, 2004.Colac Area Health commenced a majorredevelopment project in December, 2001.Stage 1A comprised the construction of atwo-storey building which provides temporaryaccommodation for the Primary Care staffand permanent accommodation for pharmacyand pathology services. This building alsoincludes the Helen Macpherson SmithTrust Conference Centre which provides anexcellent venue for staff education.Stage 1B, the Acute Medical Servicesbuilding, was completed in February, 2003.The main reception entrance is now locatedin Connor Street. This is the first majorredevelopment of acute patient services since1971. The quality of accommodation andservices provided is modern, comfortable andpeaceful and reflects our community’s needs.This building comprises 15 single rooms,nine twin-share rooms, two four-bed rooms,two birthing suites, seven day surgery beds,Emergency Department, Operating Suite andCentral Sterilising Supply Department.Colac Area Health currently has two agedcare facilities, Otway Pioneers and PolwarthHouse, which provide High Level Residentialand Respite Care. Both are accredited by theAged Care Standards and Accreditation Agencyand staffed by caring, specialist staff whounderstand the special needs of residents andtheir families.In early 2005, Colac Area Health commencedbuilding a new $14 million state-of-the-artResidential Aged Care facility which will replaceour two existing facilities.The new facility has been namedCorangamarah and comprises 75 beds,14 twin-share and 47 single rooms and includesa dementia-specific unit.Corangamarah will have numerous privatecourtyards as well as having landscapedgardens for residents and relatives to enjoy.While the facility incorporates large communalgathering areas, there will also be privateareas for residents to take time out forpersonal relaxation. Residents will move intoCorangamarah in August, 2006.About ColacThe Colac Otway Shire is one of the mostpicturesque municipalities in Victoria,covering a diverse area from volcanic lakes,craters and plains in the north, through tothe hinterland forests of the Otway Rangesto the Great Ocean Road coastline. Thearea provides diverse employment througha range of primary industries, tourism andcommercial and community services.Colac is the key industrial, commercialand service centre for the Colac Otway andsurrounding region with a population of12,000.Acute Care Services• Acute Care• Day Chemotherapy• Emergency Department• General Medicine• Haemodialysis• Obstetrics and Gynaecology• Paediatrics• Psychiatry• Rehabilitation• Surgery – Dental, General, Gynaecology,Ophthalmology, Orthopaedic, UrologyAged Care Services• Residential Aged Care facility• Residential and Respite CareCommunity Nursing• Colanda Nursing Service• Continence Resource• Diabetes Education• Community Nursing• Hospital in the Home• Lymphoedema Clinic• Maternity Outreach• Palliative Care Nursing/Volunteers• Wound Management ResourceBarwon Post Acute CareCastertonHamiltonWarrnamboolPortland Port FairyDiagnostic Services• Pathology• Radiology/Medical ImagingAllied Health and Support• Adult Day Activity Service• Be Active, Eat Well• Dental Clinic• Dietetics• Nutrition• Occupational Therapy• Pharmacy• Physiotherapy• Podiatry• Rehabilitation• Social Work• Speech PathologyCommunity Programs• Alcohol and Other Drugs• Birregurra Health Centre• Community Health• Family Violence Prevention andSupport (Regional Networker)Children’s Resource Program(Regional Networker)• Gambler’s Help• Neighbourhood HouseMortlakeCamperdownCobdenColacWinchelseaBirregurraApollo BayAngleseaLorneGeelong• Psychology• Supported AccommodationAssistance Program (RegionalNetworker)• Women’s Health• Youth DevelopmentFamily Services• Family Support• Financial Counselling• Housing Worker• Women’s Counsellor• Youth and Children’s WorkerVisiting Services• There are Visiting Servicessuch as Family Planning, DrinkDriver Education, Barwon YouthAccommodation Service, LegalAid and Geelong Centre AgainstSexual Assault.Co-Located Services•Barwon Youth AccommodationServices• DHS Child Protection• Diversitat• Neighbourhood Renewal6 Colac Area Health Annual Report 20067

Colac Area Health Annual Report 2006Chairman’s and Chief Executive Officer’s ReportMr Grant JohnstoneChairman, Board ofDirectors until June2006Ms Jan RossChief Executive OfficerMr Richard Riordan,Chairman, Board ofDirectorsColac Area Health (CAH) has reached asignificant milestone in its history with thecompletion of the 75-bed Residential AgedCare Project.The completion will coincide with theretirement of Chief Executive Officer JanRoss. During her seven-year tenure, she hasoverseen the completion of three major capitalworks projects, including the Primary Care/Pathology and Pharmacy building, the AcuteMedical Services building and Corangamarah,the Residential Aged Care (RAC) facility.Mr Geoff Iles has been appointed as thesuccessor to Ms Ross. Mr Iles has extensiveexperience in the health industry and waspreviously Manager, Health and Aged Careof the Barwon South-Western Region,Department of Human Services.Residential Aged CareThe 75-bed RAC project has been almostcompleted in the 2005/06 period.The generosity of the community, trusts andfoundations have resulted in a “Five-Star”home for 75 high care residents. The buildingincludes, for the first time in Colac, provisionof a 15-bed Dementia-Specific Unit.The colour schemes are light and bright.Internal courtyards provide safe andsupervised recreational areas for the residents.A room sponsored by The Colac Hosts hasbeen furnished as a private dining room forresidents to share special occasions with theirrelatives and friends.The Ian Rollo Currie Estate Foundationhas sponsored an Internet computer room toallow residents to send and receive emails, plusexplore the Internet. This trust also fundedthe large plasma screens in the living areas andindividual televisions for the residents’ rooms.The generosity of the estate of the late RobertSpeirs has been acknowledged in a large livingarea, but funds from this estate have also beenused throughout the building to purchase extrafurnishings that will enhance the ambience andcomfort for the residents.Community EngagementThe community has again responded todeveloping a closer relationship with theirhealth service.In April, the Service held a Gala Evening inColac, with 400 people attending includingthe Chief Commissioner of Victoria Police,Ms Christine Nixon, who was responsible forengaging the Police Showband.The talented young students of Trinity CollegeSophisticated Swing band were also featuredon the night. Local businesses provided theingredients for the four-course gourmet mealcooked by CAH staff and local chefs. TrinityCollege students were table attendants and theRotary Club of Colac managed the drinks.The event brought many people together toensure that the night was a success.Our thanks to the two committees – EventManagement and Catering Committee.The Relatives and Carers’ Groups have beenkept informed of the progress of the RACbuilding. Residents were invited to choosetheir rooms, thus promoting ownership of theproject.The CAH Auxiliary has again given greatsupport to the Service, as they have for manyyears. The efforts of this group of women, thesupport and the links they establish with thecommunity are appreciated.Partnerships and AlliancesThe partnerships with Barwon Healthsurgical services have again increasedthroughput at Colac.The feedback from Geelong residents hasbeen positive and the pre-anaesthetic checksand admission trips have not deterred manypatients from travelling to Colac, at the sametime reducing waiting lists at Barwon Health.The intent of the Memorandum ofUnderstanding with Lorne CommunityHospital has been partially achieved.Finance, payroll, information technology,supply, nursing support, allied health andhuman resources services have been provided.Colac Area Health (CAH) continues to be amember of the South West Alliance of RuralHealth (SWARH) Steering Committee andthe SWARH Executive. Staff are representedon a variety of sub-committees. Attendancehas been mainly by video-conferencing,saving time and eliminating the hazards oftravel.Major innovations in informationtechnology included participation in the pilotVirtual Interactive Services Program (VISP).This program will allow residents at LaversHill to attend the local high school and accessvideo-conferencing equipment that willallow them to contact the CAH EmergencyDepartment for advice. It is anticipated thatthis program will be extended into otherservice areas, particularly in the Primary Caredivision.Colac Area Health, along with PortlandDistrict Health, are piloting the BedsideEntertainment System Technology (BEST).This advanced technology includes touchscreen television, Internet and email accessand will eventually include access to menus,health information, on-line shopping andaccess to care plans.Executive ManagementTeam (EMT)The integrated service delivery of CAH iscomplemented by the EMT managementmodel. The input and decision-making bythis talented group promotes collaborativedecision-making which reflects thecomplexity of our organisation.Mrs Ann Hague resigned as Director ofNursing in January, 2006. Mr Simon Walter,Business Manager for Acute Services, wasappointed to the position.Ms Anne-Maree Neal was appointedManager, Human Resources in October,Newly-appointed Chief Executive Officer Geoff Iles brings extensive experience in thehealth industry to the role. Jan Ross has overseen the development of three majorcapital works projects, including the new Residential Aged Care (RAC) facility, duringseven years as Chief Executive Officer.2005 and has been most influential in a rangeof activities throughout the organisation,including risk management, complaintsand the planning for an organisationaldevelopment unit plus a wide range ofindustrial relations and human resourcesresponsibilities.The EMT increased to five memberswith the inclusion of the Manager, HumanResources to again reflect the high profile ofthis position.8 Colac Area Health Annual Report 20069

Colac Area Health Annual Report 2006Achievements duringthe past year includethe developmentof the ResidentialAged Care facilityand technologicalinnovations includingthe BedsideEntertainment SystemTechnology.Board of Directors (BOD)Mr Grant Johnstone, as Chairman BOD,provided leadership to a Board faced withthe challenges of providing a Health Serviceto a community within difficult budgetingrestraints.The more enjoyable task has beenparticipating in the Project Control Groupby Board members. This team managesthe progress of the Residential Aged Care(RAC) Project and was chaired by Mr WayneO’Brien, Treasurer of the BOD.Mr Johnstone resigned on June 26, 2006, totransfer to a position in Gippsland.Mr Richard Riordan, the Senior Vice-President, was appointed as the newChairman of the Board.The Board will focus on consolidatingcurrent services and actively pursuingfunding for Capital Works to provide suitableaccommodation for the large number ofPrimary Care staff and the services theyprovide.AcknowledgementsMany people are involved in making ourorganisation what it is.The Chairman of the BOD, Mr RichardRiordan and the Chief Executive Officer, Ms JanRoss, recognise the contribution and supportmade by:- Board of Directors members- Executive Management Team- Managers and staff- Volunteers and auxiliaries- Regional Director, Ms. J. Snell, and staff ofBarwon-South-Western Region, Departmentof Human Services- Local businesses- Local service groups- Trusts and foundations- Our communityMr Richard RiordanChairman, Board of DirectorsMs Jan RossChief Executive OfficerStrategic DirectionKey Reporting Areas 2005/200610 Colac Area Health Annual Report 200611KRA 1:ObjectivesIncreasedconsumerengagement andparticipation.To support and enhance the wellbeing of consumers by a culture that is sensitive andresponsive to their needs.StrategiesThe continuedpromotion anddevelopment ofthe Colac AreaHealth (CAH)integratedapproach tothe provisionof communityhealthcare.To developoptions inrelation toPrimary Careredevelopment.To identifyfundingopportunitiesand examineareas for thedevelopmentof systemsto supportCulturally andLinguisticallyDiverse (CALD)Program.Outcomes• Redevelopment of Community Hub completed.• Development of governance model including Memorandum of Understanding (MOU)with Department of Human Services (DHS), Neighbourhood Renewal, CAH andCommunity Steering Committee being developed.• Development of dedicated activities room/fitness centre at Birregurra Community HealthCentre (BCHC) completed.• Adult Day Activity Centre (ADAC) extensions to activity room completed.• Security lighting in car park completed.• Development of designated and sealed disabled car parks outside Primary Care buildingcompleted.• Designated patient car parks for rehabilitation and dialysis allocated.• Funding secured for Be Active, Eat Well (BAEW) Program for further 12 months.• 2005 Victorian Public Health Spotlight Award for Excellence and Innovation to CAHBAEW Program November 2005.• Residential Aged Care (RAC) redevelopment project nearing completion.• Position the service to manage anticipated growth in staffing levels in Family Services.• Facilitate co-location of schools’ dental services with CAH Community Dental.• Ongoing development of Community Garden Project.• Innovative case management model developed for special needs clients.• Currently reviewing masterplan and options for the future of Polwarth and Otway in respectof Primary Care redevelopment, consolidation of satellite workplaces under one campus anddevelopment of Family Services Centre.• Relocation of supply to converted boiler house and refurbishment of former supply department tooffice space completed.• Diversitat – strategic alliance which led to the co-location of Settlement Officer for 12 months.• Seek ongoing funding to extend the Refugee Health Nurse Program and further developCAH strategic response to CALD issues.• Successful funding submission Victorian Managed Insurance Authority (VMIA) forRefugee Health Nurse program – $50,000.• Secured additional one off funding from DHS for refugee health needs – $50,000.• Successful submission to Cancer Council to produce multicultural DVD on pap smears.Production of DVD completed.• Co-location of Colac ACE International Humanitarian Support Service (IHSS) Workerbased at Community Hub.• Successful submission to Victorian Office of Multicultural Affairs for provision of crosscultural training and development.• Initiated consolidation of the Colac Settlement Group now chaired by the Chief ExecutiveOfficer Colac Otway Shire.

Colac Area Health Annual Report 2006ObjectivesStrategiesOutcomesObjectivesStrategiesOutcomesReview andmaintainObstetricmodels andidentify fundingopportunitiesfor enhancementof Obstetricservices.Improvetraining,recruitmentand retention ofvolunteers.Improve accessto timelyinformationthrough thestrategic useof informationtechnology.• Review and analysis of current models to accommodate multicultural needs completed.• Translation of midwifery patient information into languages of major multicultural users.• Introduced regular monthly education (provided by ex-local doctor) for culturally diversecommunity in relation to sexual reproduction and contraception.• Funding submission completed for a review of current Obstetric service for development of asustainable model Colac Area Health (CAH) community – outcome pending.• Introduced midwifery scholarship program which has resulted in recruitment of threemidwives.• Creation of a specific position to manage and co-ordinate volunteers for CAH with linkagesto CAH Auxiliary.• Introduced training sessions for new volunteers – general and Palliative Care-specific.• Achieved significant volunteer engagement in redevelopment works at Community Hub.• Introduced structured induction program for volunteers including multicultural volunteers.• Continue to identify opportunities for recruitment and retention of volunteers in the community.• Electronic distribution/exchange of relevant information to Board of Directors (BOD)available.• Remote access into South West Alliance of Rural Health (SWARH) network for ExecutiveManagement Team (EMT) available.• Introduced Personal Digital Assistants (PDAs) for EMT.• Undertake a review of the potential expansion and use of PDAs throughout CAHmanagement structure.• Seek, in consultation with SWARH, opportunitiesto further implement and enhance management information systems.Continuedexpansionof surgicalservices.Ensure ongoingcommunicationwith communityand keystakeholders.Develop andmaintainsurgicalservices to meetcommunityexpectations andWeighted InlierEquivalentSeparations(WIES) targets.• Review underway of Nursing Management structure, rostering arrangements and managementprocesses to ensure continued compliance with nurse-patient ratios.• Needs analysis of staffing profiles completed and proposal currently under negotiation.• Ongoing production and development of key communication mechanisms:- Quality Report- Annual Report- Community News- Articles in media- Website.• Barwon Health alliance leading to an increase in general, orthopaedic, urology, gynaecologyand dental surgery.• Funding support to secure additional Colac-based General Surgeon.• Redevelopment of Day Surgery Unit to accommodate more clients and increase throughput.• Limited specialist anaesthetic services introduced.• Review of equipment for surgical services ongoing as funding options become available.• Funding secured for Anaesthetic Simulator course attended by four Registered Nurses andfour members of the Visiting Medical Staff (VMS).• Growth in Ophthalmology surgery.• Functional review of Theatre User Group completed.• Recruitment of regional General Practitioners (GP) for anaesthetic, obstetric and after hourson-call surgical services.• Funded education package for Registered Nurses Division Two for Central SterilizationSupply Department certificate.KRA 2:Implementationof CAHCore Valuesstatement/ongoingtraining/refreshers forstaff.To engagestaff and seekinput intodevelopment oforganisationalCore Values.• Introduction of Tablet Personal Computer (PC) for management of electronic nursingstaff rosters and monitoring of budgeted Equivalent Full-Time (EFT).• CAH selected as a pilot site for Bedside Entertainment System Technology (BEST).To be a sustainable people centred service provider.Develop arecruitmentand retentionstrategy andreview oforganisationalstructure– manageriallevels.• Implemented values education across the organisation.• External consultants engaged to facilitate Primary Care Planning Day and further developCore Values through input of all Primary Care staff.• Incorporated Core Values in Assistant Director of Nursing (ADON) Planning Day anddeveloped practical implementation framework in the Nursing Division.• Review Vision and Mission Statement/incorporate Core Values at Strategic Planning.• External consultant appointed to review organisational structure.• Consultant recommendations considered and actioned where appropriate:- Human Resource Manager (HRM) appointed- EMT restructure- Food Services restructure (Hostess and Banqueting) commenced and redevelopmentcommenced- Educational Services/Organisational Development Unit restructure commenced- Primary Care Management structure finalised- Services area (including general services, supply, maintenance, catering) restructurecompleted- Review ward clerk EFT ongoing.MidwiferyServiceDevelopmentFinancialsustainabilitySee KRA1Development inconjunction withDepartmentof HumanServices (DHS)of an ongoingfinancial“Innovations”Strategyto ensurecontinuingviability.• Developed and implemented an Innovations (Recovery) process and framework.• Anticipated entity surplus in 2005/06 inflated due to capital income for Residential AgedCare (RAC) Redevelopment works and asset revaluation.• Continue to pursue a flexible global funding base with Department of Human Services• Promotion of new RAC facility resulting in full occupancy for first time sinceDecember 2002.• Continuation of strategic alliance with Lorne Community Hospital.• Recurrent WIES Conversion being pursued.• Review of Resident Classification Scale (RCS) processes and outcomes leading toimprovement in RCS levels and audit compliance.• Participated in national trial RCS framework• Redesigned RAC Nurse Unit Manager to improve Business Management processes.• Obtained three-year Aged Care Standards Accreditation with compliance in fourstandards and 44 outcomes.12 Colac Area Health Annual Report 200613

Colac Area Health Annual Report 2006Colac Area Health Annual Report 2006KRA 3:ObjectivesTo minimise adverse outcomes by understanding and managing our risks.StrategiesOutcomesCorporate GovernanceContinueto refine/improve riskmanagement.KRA 4:The ongoingdevelopment ofan organisationalculture whichachieves theintegration ofsystematic riskmanagementprocesses intoall levels ofmanagementactivities bothstrategic andoperational.Improve accessto timelyinformationthrough thestrategic useof InformationTechnology.To enhanceoperationalrelationshipswithstakeholdersincludingexternalproviders,key agencies,community,Department ofHuman Services(DHS)and LocalGovernment.• Risk Management Framework including risk register, and annual survey of managersreviewed and updated in line with new module of Riskman system.• Adoption of Legislative Compliance framework and integration into risk management.• Risk Managers completed Root Cause Analysis (RCA) education.• Review structure Risk Management Team and Terms of Reference.• Complaints Reporting Framework linked to Risk Management System.• Purchased networked version of Riskman. Data translation completed. ImplementationPlan developed including staff education and staff rollout in 2006/2007.• Currently reviewing Information Technology (IT) staffing support requirements dueto service-wide expansion and operational reliance on IT.• Completed Self Assessment program against AS/NZ4360 – Risk Management – 97%compliant.• Continued participation in South West Alliance of Rural Health internal audit program.• Audits completed:- Fraud - Medical Workforce - Human Resources Review - Occupational Health and Safety.• Management Information Audit currently in process.• Participated in Victorian Managed Insurance Authority (VMIA) Fabric Survey forDental Clinic, Forbes Street flats and Birregurra Community Health Centre (BCHC).• Continued development and refinement of external contracts specifications and tender processes.• Currently exploring market for suitable communication system for internal emergencyresponse management.To maintain a viable and representative health service through the use ofcollaborative alliances.• Development of a solution focused Communication Framework that includes and engagesBoard of Directors (BOD), Visiting Medical Staff (VMS) representatives, ExecutiveDirector of Medical Services and key operational staff representation from key stakeholders:- Operational Meeting with Business Managers, Practice Managers, Chief Executive Officer(CEO) and ExDMS- BOD Ex meeting with representative of each Medical Practice and ExDMS- Regular meeting with designated VMS representative and Primary Care Managers- Monthly meeting with Chair of VMS, CEO, Director of Primary Care and Directorof Nursing• Inclusion of representatives from sub-regional health facilities in collaborative strategicplanning processes.• Feasibility study into General Practitioner (GP) in Community Health Strategyundertaken by Dr L. Gruner completed.• Engaged nominated representatives from both Clinics to participate in the development ofnew submission under the GP in Community Health Strategy funded by DHS.• Continue to market Colac Area Health (CAH) Primary Care and Corporate Services tolocal and sub-regional agencies as a revenue-raising opportunity.• Continued development of relationship with Barwon Health.- Dental/School Dental services - Barwon Post Accute Care - Palliative Care services- Surgical services - Education services• Funding obtained for Regional Director of Medical Services (DMS) operationally based atCAH.• Continue to support and seek participation with newly-established Deakin Medical School.• Current development of Key Reporting Areas (KRA) as part of new Contract negotiations, in linewith the Credentialling process for medical practitioners in Victorian Rural Health Services.Colac Area Health (CAH) is a Victorian publicsector organisation incorporated under theHealth Services Act 1988 and operates underthe provisions of this Act.The Minister responsible for theadministration of the Health Services Act is theMinister for Health, Hon. Bronwyn Pike MLA.CAH is accountable through the Board ofDirectors (BOD) to the Minister for Health.Colac Area Health is governed by aneight-person BOD appointed by the Minister.Board members are appointed for periods up tothree years and serve in a voluntary capacity.Governance refers to arrangements in placeto administer, manage and monitor servicesprovided. In past years the focus of the Board’sgovernance obligations was in management andfinancial areas.Today, public health service providers arerequired to be more transparent and accountableto the community in their governanceobligations, such as clinical governance and riskmanagement.The functions of the Board of Directors are:• To conduct the Service in a manner that isconsistent with the Mission Statement andthe Health Services Act 1988• To establish reporting mechanisms tomonitor the performance, reports and auditprocesses of the Service and to ensure thatthey comply with the FinancialManagement Act 1994• The general governance of the Service• To maintain proper accountability togovernment by close observation of alllegislative requirements, ensuring that theService meets or exceeds targets as agreed inthe Health Services Agreement and complieswith all standards governing the Service• To ensure compliance with legislativerequirements governing Health Servicesand promote a safe, effective, appropriateand consumer orientated service within thislegislative framework• To annually review the past twelve months’activities and set future direction• To reflect the needs of the community and tocommunicate policy and strategic directionby consultations, publications and promotingthe profile of the Service• To ensure that the Service provides a rangeof appropriate services, promotes excellenceand supports educated, competent staff• To promote good working relationships withGovernment Departments.Colac Area Health is addressing thegovernance issues associated with HealthService delivery to:• Meet community expectations by achievingquality health service delivery• Ensure there are corporate and clinicalstandards for accountability and leadershipwithin the Service• Address the management and identificationof risks and hazards by implementing acomprehensive clinical and non-clinicalrisk management system. The establishmentof a Risk Management framework hasseen delegation to the Safety ImprovementCommittee who reports on all aspects of riskthrough the established Boardsub-committee framework• Ensure staff and facilities are assessed,reviewed and credentialled.Board Orientation and EducationOrientation and Board Education has beenundertaken by attendance at sub-regionalforums conducted by the Department ofHuman Services (DHS).Colac Area Healthhas continued to be aleader in developingan integrated HealthService deliverymodel. Underpinningthe philosophy of thismodel is providingaccess to a range ofappropriate services forrural communities.Colac Area Health Annual Report 200614 15

Colac Area Health Annual Report 2006This education is directed at clarifying theroles and accountability of Board membersin providing effective governance of theiragencies.Colac Area Health (CAH) has continued tobe a leader in developing an integrated HealthService delivery model.Underpinning the philosophy of this modelis providing access to a range of appropriateservices for rural communities.Project Control GroupEffective Board Governance requiresmembers of the Board and the ExecutiveManagement Team (EMT) to participatein the Project Control Group (PCG)which oversees the Redevelopment Project.Representatives from Department of HumanServices (DHS) Regional Office, CapitalManagement Branch, Architects, ProjectManagers and the Quantity Surveyor receivereports on construction progress.Committee StructureThe Board has established a committeestructure which complies with the Act andfulfils the requirements of the Board and theMission Statement to ensure that policies setin place are community and patient-focused.The following are sub-committees of theBoard:Finance Audit and RiskThis Committee receives reports from theDirector of Corporate Services which reflectscompliance with accounting standards andmandatory reporting requirements. Monthlymonitoring of the financial performance ofthe Service is undertaken by the Committeeas are all aspects of both the internal andexternal programs.Safety and QualityThe Safety and Quality Committee overseesclinical, quality, Occupational Health andSafety (including Infection Control) andemergency planning across the Service.It particularly focuses on the delivery ofsafe care, meeting regulatory compliancerequirements and best practice standards.The Board of DirectorsGrant was a prominent community member and managed Radio Station3CS/MixxFM for five years. He served on numerous committees, including the BlueRibbon Foundation and Otway Business Inc.Grant was appointed Board Chairman on 28 November, 2005, and as a result ofobtaining employment in the Gippsland region, resigned on 26 June, 2006.Grant provided excellent leadership and his departure from the Board and the Colaccommunity will be sorely missed.Mr Grant Johnstone,Chairman to 26 June, 2006Term of appointment: 1 November, 2002 to 26 June, 2006Board and Committee attendance:Board 7 of 11Safety and Quality 5 of 10Finance Audit and Risk 3Mr Richard Riordan,Chairman from 26 June, 2006B.Bus. (Management)Term of appointment: 1 November, 2005 to 31 October, 2006Board and Committee attendance:Board 11 of 11Finance Audit and Risk 10 of 12Richard is a retail businessman and has completed a degree in BusinessManagement in Melbourne. He returned to take up the family hardware businessand is actively involved in the business community of Colac as past president ofthe Colac Business and Retailers Association. Richard also founded the volunteerorganisation Friends of Lake Colac. Richard was appointed Chairman after theresignation of Mr Grant Johnstone.Mr Anthony Graham, Junior Vice-PresidentAdv Dip. Disability Work, Dip. FMI, Dip. Tas, Adv. Cert. R.A.C.S,Cert. IV Workplace and TrainingTerm of appointment: 1 November, 2004 to 31 October, 2007Board and Committee attendance:Board 9 of 11Safety and Quality 2Finance Audit and Risk 4 of 5Tony has been a member of the CAH Board for several years, the past three yearsas Chairman. Tony has represented our service over the past five years as an electedCouncillor with the Rural and Regional Health Division of the Victoria HealthcareAssociation (VHA). In 2004 Tony was appointed as a Director of the Board ofManagement of VHA. Tony has a broad experience in community agencies andservices in the Colac/Otway region. Currently he works as a training and developmentconsultant with Royal Melbourne Institute of Technology (RMIT). His strongknowledge and commitment to the community is an asset in his role on the Board.Tony has been elected as Chairman, Regional and Rural Council VHA.Mr Wayne O’Brien, TreasurerB.Com, C.A., C.P.A.Term of appointment: 1 November, 2004to 31 October, 2007Board and Committee attendance:Board 10 of 11Finance Audit and Risk 11 of 12Wayne is a Chartered Accountant and has been a principal of a localaccounting firm for 15 years. Before returning to Colac, Wayne workedwith a large accounting firm in Melbourne with secondments interstateand overseas. Wayne is an active squash and tennis player and has awide involvement in community affairs.Wayne has served on the boardfor eight years which has included terms as Chairman and Treasurer.During this period Wayne has overseen all stages of the majorredevelopment projects which commenced in 2001.Mr Anthony BaldwinTerm of appointment: 1 November, 2003to 31 October, 2006Board and Committee attendance:Board 7 of 11Safety and Quality 7 of 10Tony is a self-employed businessman and dairy farmer. He has aninterest in quality assurance procedures, financial management andstrategic planning. Tony is actively involved in the community as amember of the Rotary Club of Colac West, and Elliminyt PrimarySchool and Trinity College Parent Committees.Mrs Alison McDonaldB.A. (Hons) Food and Accommodation Management,Cert. III Small Bus. ManagementTerm of appointment: 1 November, 2004to 31 October, 2007.Board and Committee attendance: Board 9 of 11.Safety and Quality 6 of 10Alison resides at Birregurra and is a partner in a family farming business.As a former member of the Birregurra Advisory Committee she contributedto the development of the Birregurra Community Health Centre. She isactively involved in the community as a member of the Birregurra HealthAuxiliary, together with past and ongoing participation at committee levelwith the local pre-school and primary school. She is currently undertakingfull-time study for a MTeach.Ms Kathryn McBrideDip. Fine Arts (ceramics), Grad Dip.Education, Dip. of ManagementTerm of appointment: 1 November, 2004to 31 October, 2006Board and Committee attendance:Board 10 of 11Finance Audit and Risk 8 of 12Kathryn is employed by St. Laurence as the Manager of CommunityPrograms. She is currently president of Arts Colac, and has previouslyheld positions on the Colac Community Development Association andExecutive Member Managers Association Victoria.Mr James RyanB.A., L.L.B.Term of appointment: 1 November, 2005to 31 October, 2008Board and Committee attendance:Board 6 of 7Safety and Quality 2 of 5Finance Audit and Risk 5 of 6Jim is a partner of a local law firm and a Life Member of the Law Instituteof Victoria. He was a Councillor of the City of Colac for nine years andColac Otway Shire for eight years, during which he held the position ofMayor for two terms. Jim is president of the Colac and District CricketAssociation and Colac Turf Club, a committee member of Colac Do CareInc., and is actively involved in community affairs.Mr Warren McKeanTerm of appointment: 1 November, 2003to 31 October, 2005Board and Committee attendance:Board 2 of 4Finance Audit and Risk 4 of 5Warren is a self-employed Director of a motor vehicle dealership based in Colacand Camperdown. He is actively involved in the community having served aterm on the Colac Development Committee and currently holds the position ofpresident of Otway Business Inc. in Colac.Mrs Dianne LoubeyDip. Applied Science (Dental Therapy)Term of appointment: 1 November, 2002to 31 October, 2005Board and Committee attendance:Board 3 of 4Dianne is a full-time Practice Manager of a medical clinic, a positionshe has held for ten years. Presently Dianne is actively involved inprimary and secondary school communities, coaches school netballteams and has umpired netball at a senior level for many years.Colac Area Health Annual Report 200616 17

Organisational ChartThe CommunityBoard ofDirectorsChief Executive OfficerOperational SupportPersonal Assistant, CEOQuality DevelopmentDirector of Corporate Services/DeputyChief Executive OfficerCorporate ServicesAdministrationEngineering ServicesFinancial ServicesGeneral ServicesHealth InformationInformation & Communications TechnologySupplyDirector of NursingAcute and Aged Care ServicesAssistant Directors of Nursing (ADON)Clinical Nurse EducatorsClinical Support NurseEducation ServicesEmergency DepartmentInfection ControlOperating Suite/Day Surgery Unit/CSSD/HaemodialysisPharmacy ServicesPre-Admission Discharge PlanningPersonal Assistant, DONRisk ManagersDirector of Primary CareAdministration UnitAllied HealthCommunity NursingCommunity ProgramsFamily ServicesHealth PromotionManager, Human ResourcesHuman ResourcesComplaints Liaison TeamPayroll/Salary PackagingExternal ProvidersPathology/Radiology (Privatised)Executive Director of Medical ServicesChairman Visiting Medical StaffVisiting Medical StaffCo-Located ServicesBarwon Youth Accommodation ServicesDHS Child ProtectionDiversitatNeighbourhood RenewalColac Area Health Annual Report 2006Executive Management TeamThe Board of Directors has delegated the operational activities of Colac Area Health to the Chief Executive Officer (CEO),the Executive Management Team (EMT) and staff in accordance with the Instrument of Delegation and the Health ServicesAct 1988 (Division 4 Section 33).The EMT members are:Jan Ross,Chief ExecutiveOfficer (CEO)Senior staff listCorporate DivisionRoslyn Edsall, Health Information ManagerJennifer Evans, AccountantRandall Hose, Information and Communications Technology ManagerPamela Matheson, Quality Development ManagerGillian Neale, Administration ManagerTrevor Nelson, Services ManagerTim O’Sullivan, Supply ManagerJulie Rippon, Operational SupportNursing DivisionArie de Leeuw, Education Services ManagerDonna Field, Clinical Support NurseAnn Gray, Clinical Nurse Consultant Infection ControlJenny Lang, Julie Trigg and Karen Gaylard,Pre-admission Discharge Planning CoordinatorsDavid Walters, Pharmacy Services ManagerAssistant Directors of NursingRuth BambryPaula DeavinPauline KerrJohn Scarrott,Director of CorporateServices/Deputy ChiefExecutive Officer(DCS/DCEO)John Townsend,Director of PrimaryCare (DPC)Simon Walter,Director of Nursing(DON) appointedMarch 2006The Directors are supported by senior managers in Corporate, Nursing and Primary Care divisions.Carmel O’BrienGail MooreDavid PlueckahnElizabeth ScarrottMuriel SpenceAnne-Maree Neal,Manager, HumanResources, (MHR)appointed the fifthmember of the EMTin June 2006Nurse Unit ManagersLynda Inglis, Residential Aged Care - Business and RiskDelia Melville, Emergency DepartmentCarol Robinson, Residential Aged Care - Clinical(Resigned 30 April, 2006)Amanda Tout, Operating SuiteMargaret Trigg, Acute Care UnitPrimary Care DivisionShelley Bateup, Administration Unit ManagerSue Mulder and Pamela Matheson, CommunityNursing Team ManagersMark Brennan, Health Promotion ManagerPauline Maunsell, Allied Health Team ManagerSuzanne Miller, Community Programs ManagerMarg White, Family Services Manager19

Colac Area Health Annual Report 2006Quality of CareColac Area Health’scommitment tocontinuously improvingthe quality of serviceswas recognisedfollowing four-yearaccreditation by theAustralian Council onHealthcare Standards.Quality ProgramThe Australian Council on HealthcareStandards (ACHS), the principal providerof accreditation across Australia, reviewedColac Area Health (CAH) in 2005 for ourcommitment to continuously improve thequality of our services and safeguard highstandards of care by creating an environmentin which excellence in clinical care canflourish. CAH maintained its four-yearaccreditation.Polwarth House Nursing Home,incorporating Polwarth House and OtwayPioneers, was reviewed by The Aged CareStandards and Accreditation Agency withthe auditor noting evidence of continuousimprovement across each expected standardand three-year accreditation status wasawarded. The Quality Performance Systemused to measure clinical compliance withpredetermined indicators supported theAgency Assessment that there is evidence ofimproving performance. Quality activities arewell entrenched and continuous throughoutCAH. The Safety and Quality Committee2006 Quality of Care Report is available as asupplement to the Annual Report. The reportillustrates some of the broad range of servicesfrom aged, acute and primary care servicesand their outcomes. In line with nationalhealth strategies, key areas addressed withinthe report include the management of issuesrelating to infection control, medicationmanagement, pressure areas and fallsprevention. There has been a significant focuson working with Culturally and LinguisticallyDiverse (CALD) populations within thecommunity.Colac Area Health continues to encourageall staff to actively pursue continuousimprovement activities.Future directionsRisk Management will continue to drive thereview of systems seeking opportunities toimprove the safety of healthcare.The introduction of the National MedicationPrescription Chart is a key element inimproving medication management.Client satisfaction remains an integralcomponent of measuring effectiveness andall service providers will be encouragedto seek consumer feedback. Residents atCorangamarah will be given every opportunityto highlight their level of satisfaction.As an integrated health service provider,CAH will continue to focus on healthpromotion and illness prevention and onreaching disadvantaged groups.Pamela MathesonQuality Development ManagerHealth InformationServicesHealth Information Services providesmedical record storage and maintenance foracute, residential and community nursingpatients/residents. A number of other HealthInformation activities are performed in thisdepartment which include forms designand allocation, Unit Record (UR) numbermaintenance, Freedom of Information (FOI)processing and fulfilling other state andnational reporting requirements. Part-timersstaff the department, which includes a HealthInformation Manager, two clerical supportstaff and a clinical coder/audiotypist.This year the department handled 42FOI applications. Of these applications, 35applicants were granted full access to theirrequest, three were granted part access andfour applications were refused. No internalreviews were requested.A decision was made to store the deceasedmedical records off-site in order to enablea cull to take place of the existing primarystorage area. One hundred and seventyboxes of medical records were packed andindividually tracked. If the need arises for anyrecord to be retrieved, the exact box locationand number of volumes stored off-site isknown.The department has a greater ability now toproduce meaningful reports from the PatientAdministration system (Vital) to supportbusiness practices. A number of specificreports have been requested and written bythe new South West Alliance of Rural Health(SWARH) Business Analyst. The departmentis now producing monthly activity reports,which includes inpatient statistics, EmergencyDepartment attendances, and Weighted InlierEquivalent Separations (WIES) targets.The coding function of the departmenthas been improved by both coders beingable to access the 3M Codefinder software.Previously only one coder could accessthis software; hence data quality is moreconsistent. Coders have also participated intwo education sessions run by the NationalCoding Centre for Health Australia to ensurethe knowledge base is kept current.Future DirectionsThe major activity for the next year willbe a cull of the primary storage area of thedepartment to improve record handlingpractices. The records culled will be movedto the secondary storage area and dividers willbe installed into all shelving.Roslyn EdsallHealth Information ManagerThe Health InformationServices departmentnow has a greater abilityto produce meaningfulreports from the PatientAdministration system tohelp guide CAH businesspractices.20 Colac Area Health Annual Report 200621

Colac Area Health Annual Report 2006Infection ControlInfection control has been one of the key areas inCAH’s quality of care program. CAH Clinical NurseConsultant Infection Control, Ann Gray, says qualityof care aims to provide care that has been tested toprove its effectiveness.Colac Area Health (CAH) currently has adesignated Infection Control Consultant whois also an accredited Nurse Immuniser.The Regional/Rural Infection ControlConsultant is also based at CAH, and isshared by two Division 1 Registered Nurses.They have an involvement with other localhealth services and have assisted in developingaudit tools that can be utilised Victoria-wide.These consultants continue their ownpersonal professional development whilefulfilling their role.Recently, one consultant completed theAdvanced Diploma of Business Managementwhile the other continues to study for aMasters degree.Colac Area Health has an Infection ControlLiaison Nurse who works night duty andis further developing liaison roles in otherdepartments. Throughout the organisation,all staff members are encouraged to haveinfection prevention and control as a majorfocus.Ongoing education is seen as an importanttool in maintaining this focus. This is achievedthrough all staff attending education sessionsand various activities throughout the yearthat highlight infection control. During2006, staff members in the Operating Suiteand Sterilisation Department are attendingeducation updates on various topics such asValidation of Sterilisation and Processingof Endoscopes. When new equipment isintroduced to these areas, education on thecorrect use and processing is undertaken andappropriate policies developed. This ensurescompliance with the Australian standard –AS/NZS 4187: 2003.At CAH, staff follow the guidelines of theVictorian Government’s Infection ControlStrategy, which ensures that prevention,monitoring and control of infection is amajor part of the focus of any health service.Infection control programs run in conjunctionwith Quality and Safety and Clinical RiskManagement programs. CAH is involved insurveillance and collection of data on hospitalacquired infections and particularly thoseinvolving resistant organisms.As a Public Health Service, CAH submitsthis data to the Victorian Hospital AcquiredInfection Surveillance System, which is aGovernment-funded agency and we thenreceive quarterly surveillance reports.Colac Area Health will be involved in thesecond stage of the Victorian Quality Council(VQC) Hand Hygiene Project from July 2006.This will look at ways of improving the handhygiene compliance rate among health careworkers and improving quality outcomes.CAH has been utilising chlorhexidine andalcohol-based hand rubs in our facility forthe past two years and in the community andthese products are already well accepted byour staff.Our public Dental Clinic continuesto maintain its valuable service to thecommunity in conjunction with DentalHealth Services Victoria.Further developments are in the planningstages. The refurbishment of the sterilisationroom continues to ensure compliance withrelevant standards. This year the DentalClinic staff are supervising the clinicalpractice of a trainee dental nurse, providingfurther employment opportunities within thecommunity, and infection control principlesare a major part of this program.An extensive immunisation program isavailable to staff for vaccine preventablediseases. Encouragement is given to allstaff to participate in the annual influenzavaccination program. Influenza vaccine is alsoavailable to some in-patients in the Acute areaand to all of the residents in the Aged Carefacility.With the development of the new Aged Carefacility there will be a marked improvementin the amenities and facilities available to ourresidents and staff. The availability of manysingle rooms with ensuite facilities will makethe prevention of infection and control easierto manage. Utensil washers in our utilityrooms will make the job of maintaining thehygiene standard of patient use equipmenteasier to achieve. We look forward to theenvironmental improvements that thisdevelopment will bring.Ann GrayClinical Nurse ConsultantInfection ControlOngoing education isan important tool forColac Area Health inmaintaining the focuson infection controland prevention. Allstaff attend educationsessions whichhighlight infectioncontrol.22 Colac Area Health Annual Report 200623

Colac Area Health Annual Report 2006Information and CommunicationCompliance IndexColac Area Health isleading the way withthe development ofseveral InformationTechnology initiativeswhich help staff providehigh quality patientcare. CAH is the firsthealth service inAustralia to trial a new“entertainment” systemwhich provides patientswith means to assistwith their recovery.Information Technology (IT) plays a majorrole in the ability to assist staff to providequality care to patients, residents and clientsof Colac Area Health (CAH). The 2005/06year has seen some exciting IT innovationsdeveloped and deployed at CAH.The trial introduction of new BedsideEntertainment System Technology (BEST) inthe Acute Care Unit consists of a touchscreenLiquid Crystal Display (LCD) computer,mounted on a mechanical “arm” whichcan be manipulated to provide extensiveplacement options for the screen. The systemis designed to provide display television,movies on demand, music clips, electronicbooks, Internet, radio, telephony and otherentertainment functions. The trial of thissystem is proceeding and CAH is investigatinginstallation of another 48 devices for all roomsin the Acute Care Unit, which will providepatients with means to assist with theirrecovery.Colac Area Health is the first health servicein Australia to trial this new system, which isbeing promoted by the South West Alliance ofRural Health (SWARH), of which CAH is afounding member.A new security system is now installed inthe Primary Care building. This system isbased on fingerprint recognition technology,and uses a scanning algorithm to accuratelyverify the identity of a staff member. This newtechnology now allows the service to securevarious areas without the need to issue keysto every staff member. This system will alsobe installed in the new Residential Aged Carefacility, Corangamarah.Colac Area Health medical monitoringnetwork now has wireless capability. Thisallows the vital functions of a patient tobe monitored wirelessly, even when beingtransferred from one location to another.The service has about 180 PersonalComputers (PCs) deployed. These PCs arerefreshed at three-year intervals, and aremanaged by three servers. Approximately 340staff have access to email.Most staff now enjoy access to these PCsusing a technique called “roaming profiles”.Ordinarily, functions such as email andsoftware such as word processing are onlyavailable from the PC, which the staff memberwas originally set up on. Roaming profilesallow staff to use any computer locatedthroughout the service as though it was their“home” PC. This enhances productivity andreduces time wastage.To further assist the Nursing Division withmanagement of resources, a new rosteringsystem has been developed by the ICTDepartment in conjunction with key nursingmanagement staff. This will help reduce theworkload involved with maintaining rosters.Additional functions embedded into thesystem provide easily accessible informationsuch as staff loading.Technology benefiting mankind – CAHis currently actively donating its unusedcomputer processing resources to the gridcomputing project World Community Grid(http://www.worldcommunitygrid.org). Thepurpose of grid computing is to harness theunused processing power of thousands, andeven millions of idle computers throughoutthe world, and put this “wasted” processingpower to use solving large problems,which normally would require the use ofSupercomputers.World Community Grid has developed aproject called “Fight Aids @ Home”, whichattempts to model better drugs for use incombating HIV to particular drug moleculesunder certain conditions. This software waswritten by Professor Arthur Olsen of theScripps Research Institute, California, UnitedStates (USA).Most of CAH’s 180 computers contributeto this effort with their unused ComputerProcessing Unit (CPU) time.With these exciting new innovations, we canforecast a bright outlook for IT and its role inassisting staff in providing high quality care atCAH.Randall HoseInformation and CommunicationsTechnology ManagerThis Annual Report of the entity is prepared in accordance with the Financial Management Act 1994 and the Directions of theMinister for Finance. This index has been prepared to facilitate identification of compliance with statutory disclosure requirements.Report of OperationsDisclosure Page, ClauseCharter and PurposePage 15 9.1.3 (i) (a) Manner of establishment and relevant MinisterPage 15 9.1.3 (i) (b) Objectives, functions, powers and dutiesPage 7 9.1.3 (i) (c) Services provided and persons or sections of community servedManagement and StructurePage 16 9.1.3 (i) (d) (i) Names of governing board members and Audit CommitteePage 8 9.1.3 (i) (d) (i) Name of Chief ExecutivePage 19 9.1.3 (i) (d) (ii) Names of senior office holders and brief description of each officePage 18 9.1.3 (i) (d) (iii) Chart setting out organisational structureFinancial and Other InformationPage 38 9.1.3 (i) (e) Workforce data and application of merit and equity principlesPage 21 9.1.3 (i) (f) Application and operation of Freedom of Information (FOI) Act 1982Page 4 9.1.3 (ii) (a) Summary of financial results with previous year comparativesPage 44 9.1.3 (ii) (b) Summary of significant changes in financial positionPage 11 9.1.3 (ii) (c) Operational objectives for the year and performance against those objectivesPage 11 9.1.3 (ii) (d) Major changes or factors affecting achievement of objectivesPage 76 9.1.3 (ii) (g) Number and total cost of consulting engagements, each costing < $100,000Page 76 9.1.3 (ii) (h) Extent of compliance with Building Act 1993Page 76 9.1.3 (ii) (k) Statement on implementation and compliance with National Competition PolicyFinancial StatementsOperating StatementPage 56 9.2.3 (ii) (a) Operating revenue by classPage 56 9.2.3 (ii) (c) Other material revenue by class including sale of non-goods assets and contributions of assetsPage 58 9.2.3 (ii) (e) Depreciation, amortisation or diminution in valuesPage 59 9.2.3 (ii) (f) Bad and doubtful debtPage 48 9.2.3 (ii) (h) Net increment or decrement on the revaluation of each category of assetPage 58 9.2.3 (ii) (i) Audit expenseBalance SheetPage 48 9.2.3 (iii) (a) (i) Cash at bank or in handPage 48 9.2.3 (ii) (a) (ii) Inventories by classPage 48 9.2.3 (iii) (a) (iii) Receivables, including trade debtors, loans and other debtorsPage 48 9.2.3 (iii) (a) (iv) Other assets, including prepaymentsPage 48 9.2.3 (iii) (a) (v) Investments by classPage 48 9.2.3 (iii) (a) (vi) Property, plant and equipmentPage 48 9.2.3 (iii) (b) (iii) Trade and other creditorsPage 48 9.2.3 (iii) (b) (v) Provision, including employee benefitsPage 48 9.2.3 (iii) (c) (i) Authorised capitalPage 48 9.2.3 (iii) (d) Reserves, and transfers to and from reserves, shownCash Flow StatementPage 49 9.2.2 (i) (c) A statement of cash flows during the yearStatement of Recognised Income and ExpensePage 50 9.2.3 (iv) A statement of recognised incomeNotes to the Financial StatementsPage 65 9.2.3 (iv) (b) Contingent liabilities/assetsPage 70 9.2.3 (iv) (c) Commitments for expenditurePage 56 9.2.3 (iv) (d) Government grants received or receivablePage 66 9.2.3 (iv) (e) Employee Superannuation fundsPage 66 9.4Transactions with responsible persons and their related parties24 Colac Area Health Annual Report 200625

Colac Area Health Annual Report 2006Nursing DivisionIt has been a yearof anticipation andopportunity as ColacArea Health successfullycompleted Aged CareAccreditation andthe completion ofthe CorangamarahResidential Aged Carefacility moved closer tofruition. Simon Walter(above) commenced inthe role of Director ofNursing in early 2006.The past twelve months within the NursingDivision have seen many changes with newstaff joining Colac Area Health (CAH) andother staff moving on to different challenges.Colac Area Health successfully completedAged Care Accreditation, and Accreditationwith the Australian Council on HealthcareStandards is due in September 2006.Accreditation provides the organisation withan opportunity to identify strengths andweaknesses in various aspects of all operationsand mission to provide quality care to thecommunity. As such, we view these times asopportunities.Farewell Ann HagueColac Area Health farewelled Ann Haguein January 2006. During the past two yearsAnn contributed a great deal to the nursingdivision both personally and professionallywith her insights and leadership. Colac AreaHealth applauds her contribution to theNursing Division and the Colac community.Residential Aged CareUnder the leadership of the Nurse UnitManagers, CAH achieved Aged CareAccreditation in all four standards and 44outcomes. Aged Care Accreditation is astatutory requirement with strict guidelinesto ensure optimum resident care. Specialmention was given to our ActivitiesCoordinators and Infection Control. It ispleasing to note that the survey report washighly complimentary of the care providedto residents. All Residential Aged Care(RAC) staff and non-nursing staff should becommended for their valuable contribution tothis process and to the lives of the residentsfor whom CAH is home.It has also been a year of anticipation as thecompletion of the Corangamarah ResidentialAged Care facility comes to fruition. Staffhave had the opportunity to visit the sitethroughout its development, including inputinto aspects of design and functionality aswell as specialist equipment. An enormousamount of work has gone into planningthe move of residents, staff and equipmentinto Corangamarah. Staff and residents arelooking forward to moving to this state-of-theartfacility.Corangamarah will cater for residentsrequiring dementia-specific care and, as such,a large proportion of staff have undertakeneducation specific to these residents’ needs.Operating SuiteThe Operating Suite has continued to expandservices and provides a large range of surgicalservices to the local community as well as toclients from around the region extending asfar as Melbourne. Staff continue to provideexpert, compassionate care for patientsvarious surgical specialities as well as managethe day-to-day complexities of a busy clinicalenvironment. The Visiting Medical Staff(VMS) provide anaesthetic services and theorganisation has also engaged a specialistanaesthetist and specialist surgeons, offeringsurgery in many diverse areas, includingophthalmology, gynaecology, urology andorthopaedics. This is a wonderful asset forthe community. Operating services continueto expand, particularly in the area of daysurgery. Renovations were carried out in thisarea to create a step-down unit to increasepatient throughput as well as provide a morecomfortable post-operative environment.Members of the Nursing and VMS attendedan intensive two-day workshop conducted atthe Monash Anaesthetic Simulator Centre.This centre provides a virtual theatreenvironment with a state-of-the-art humanmannequin that breaths, talks, has heartand lung sounds, pupils that react to light,pulses and also reacts physiologically to drugsadministered. Four Nursing staff and fourVMS attended the program which is designedto ensure a team focus and cooperation indealing with theatre emergencies.The Haemodialysis staff also continue theirvital work and contribute to the lives of theirclients through the provision of a service thatclients would otherwise have had to travelconsiderable distance to receive up to threetimes per week. Another staff member hasundertaken additional education throughBarwon Health to join this specialist service.Replacement of vital equipment, including anew operating table and microscope, fundedby the State Government as part of a targetedequipment grant, has commenced.Acute Care UnitThe Acute Care Unit continues to providecare to post-operative, medical, palliativecare and midwifery patients. The Unitalso provides some day services, such aschemotherapy and specialist infusions.The Nurse Unit Manager and staff havebeen involved in further refining models formidwifery provision and examining innovativeways to cater for patients with varyingconditions and varying care needs all in theone Unit.Thirty staff have completed AdvancedCardiac Life Support (ACLS) education withmany of the midwives also participating in theAdvanced Life Support in Obstetrics course.These courses were funded as part of theorganisation’s investment in the professionaland personal development of staff which hasnatural flow-on to improved patient care.New information management systemshave been introduced into midwiferywith an electronic client record aboutto be introduced. This record improvesdocumentation, increases midwife/patientcontact time and can be transferred to otherinstitutions when required. Review of theSleep Settling Program was undertaken withthis service now being available in the patient’shome. This has seen an increased uptake dueto improved service.The Clinical Pathway Working Party(CPWP) headed by the PreadmissionDischarge Planning Coordinators (PADPC)and Health Information Manager (HIM) havecompleted the introduction of day surgerypathways and continue to develop pathwaysin the areas of orthopaedics, respiratoryand cardiology. There has been an increasein urology services and therefore we havereviewed the documentation and workprocesses associated with this service.Following distribution of Victorian QualityCouncil Clinical Handover (VQCCH)guidelines, CAH has audited the effectivenessof handover and the findings will be integralin improving this vital nursing function.The Aged CareAccreditation washighly complimentaryof the care provided toresidents by ResidentialAged Care staff andnon-nursing staff.Accreditation providesopportunities toidentify strengths andweaknesses in variousaspects of all operations.26 Colac Area Health Annual Report 200627

Colac Area Health Annual Report 2006Thirty staff completedAdvanced Cardiac LifeSupport educationcourses funded aspart of Colac AreaHealth’s investment inthe professional andpersonal development ofstaff which has a naturalflow-on to improvedpatient care.A formalised observation policy was alsodeveloped in association with the VisitingMedical Staff in line with best practice.Other initiatives include a review of theprocess for follow-up phones calls followingpatient discharge and a review of patientbedside information.The graduate nurse program continueswith Colac Area Health (CAH) andLorne Community Hospital providing theopportunity for graduates to gain experienceat both sites.Emergency DepartmentThe Emergency Department provides avital service to Colac and the surroundingregion through the provision of facilities foremergency and after hours care.The Emergency Department, in conjunctionwith the University of Melbourne, isparticipating in a pilot Virtual InteractiveServices Program (VISP). This programwill allow residents at Lavers Hill to attendthe local high school and access videoconferencing equipment that will let themcontact CAH’s Emergency Department foradvice. It is anticipated this program will beextended into other service areas, particularlyin the Primary Care division.Through the generosity of the Victoria PoliceBlue Ribbon Foundation – Colac Branch,the Emergency Department received a newpatient transport ventilator. This ventilatorallows for the improved stabilisation andtreatment of critically ill patients priorto transfer to a tertiary centre and is arequirement in treating patients with severehead injuries. Staff education for use of thisequipment was also completed.The Emergency Department also continuesto be the focus for the implementationof the Trak Health System (THS). Thissystem forms part of an electronic record foremergency patients with staff being able toplace details directly into a lap top computeras well as recall previous visits. This year,pathology results access was added to theTHS as part of the organisation’s alliance withPathcare/St. John of God Pathology.Infection ControlThe Infection Control Nurses provideexpert advice, education and monitoringacross CAH as well as playing an importantrole in the local community and regionallyas far as the Bellarine Peninsula. Influenzavaccinations have been a key issue this yearfor staff, patients and the community. To thisend, CAH has provided vaccination serviceswith other service providers, including localgovernment and the Department of HumanServices.Colac Area Health’s Infection Controlteam is also a participant in stage one of theVictorian Quality Council’s (VQC) HandHygiene Project. This program is beingconducted statewide after a pilot program wascompleted in 2004. The focus of this projectis the reduction of Healthcare AcquiredInfections (HCAI). It has been estimatedthat in Australia there may be as many as150,000 HCAI, contributing to 7,000 deathseach year, many of which could be preventedthrough implementing appropriate infectioncontrol practices.As well as the impact on patients, family andcarers, these infections increase patient lengthof stay and from a financial perspective, ithas been estimated that the average cost fortreating a patient with an Methicillin ResistantStaphylococcus Aureus (MRSA) bacteraemiais $22,400 and that it may cost up to$173,000 to respond to a single outbreak ofVancomycin Resistant Enterococci (VRE)in a hospital. The project will involve theuse of an alcohol-based hand rub and willmonitor its usage as well as benchmark ratesof nosocomial infection and hand hygienecompliance.Preadmission DischargePlanning Coordinators(PADPC)An additional staff member joinedthe Preadmission Discharge PlanningCoordinators (PADPC) team as the rolehas expanded to assist in coordinating theadmission of Residential Aged Care (RAC)residents in conjunction with the RAC NurseUnit Managers and Social Worker. ThePADPC also provide a point of first contactfor many patients, particularly surgical,and their role is important in preparingpatients for their impending care as well asfollowing up post procedure. The PADPCalso undertake extensive auditing andbenchmarking to improve the timeliness andquality of this service.Pharmacy DepartmentThe Pharmacy Department continues topromote Quality Use of Medicine strategiesthroughout the acute care sector. With thecooperation of medical and nursing staff,inpatients’ medications are reviewed to ensurethe therapeutic need and rationale for allprescribed medicines. Services continue topharmacotherapy, well women and cardiacrehabilitation clients.Pharmacy staff are committed to ongoingprofessional development activities, ensuringthe community that relevant knowledge isavailable for all clients. Pharmacy buying iscompliant with Health Purchasing Victoriapolicy.The Pharmacist continues to attendLegislative Compliance updates heldquarterly by the Health Service’s legaladvisors HealthLegal and briefs the ExecutiveManagement Team (EMT) on matters raisedin these updates.Risk ManagementColac Area Health continues to refine its RiskManagement System (RMS) and practices.As part of the South West Alliance of RuralHealth (SWARH), CAH committed to thepurchase and implementation of a new riskmanagement database and computerisedinput system. This system will allow thereporting of risk to become paper-less andoffer more timely access to and managementof perceived risks. Due to the new systembeing adopted regionally, we can alsobenchmark our statistics against similarorganisations.Nursing AdministrationA planning day was held in February 2006with the Director of Nursing and the AssistantDirectors of Nursing. This was an opportunityto discuss issues relating to business andclinical practices, human resource andfinancial management. The group alsodeveloped values and a vision for what theywanted to achieve. Portfolios were decidedupon and allocated and succession planningwas discussed.I would like to take this opportunity to thankall of the nursing staff for their support andfor their dedication and passion in continuingto provide quality care to the Colaccommunity.Simon WalterDirector of NursingColac Area Healthachieved Aged CareAccreditation in allfour standards and44 outcomes. Specialmention was given tothe ActivitiesCoordinators andInfection Controlmeasures.28 Colac Area Health Annual Report 200629

Colac Area Health Annual Report 2006Director of Medical ServicesVisiting Medical StaffDr. Max AlexanderExecutive DirectorMedical ServicesDr. Danny JonesChairman VisitingMedical StaffThe medical staff providing services for ColacArea Health (CAH) are largely from the twopractices in Colac, being Corangamite andOtway Clinics. Most of the local doctors areinvolved in the full range of procedural generalpractice, including emergencies, obstetricsand anaesthetics. The district is fortunateto have maintained the current number ofGeneral Practitioners (GP) with their widerange of skills. In recent times Mr ChrisSutherland has been the sole full time generalsurgeon in Colac. Mr Dominique Robert,who is a very welcome addition to the depthof Colac-centred services, has just joined him.In addition there are a number of visitingspecialist surgeons, mainly from Geelong.The close relationship between CAHand Barwon Health in clinical servicedevelopments has continued. There isexpected to be increasing clinical interchangeover time, notwithstanding the primary focusof CAH in providing local services for localpeople.The two practices continue to train GPRegistrars. This is very important to orientateyoung doctors to procedural rural generalpractice. In the long run it is how Colac willattract younger doctors to stay.The redevelopment of the hospital blockhas continued in 2005/06, with the newResidential Aged Care facility nearingcompletion. This is a significant capitaldevelopment that will greatly enhance the careof elderly residents.Many of the doctors participate incommittees that work to develop and improvethe quality of care provided by CAH.This includes a monthly meeting of all themedical staff. This participation is gratefullyacknowledged by the service; it is also anessential element in developing the teamworkthat is necessary in our healthcare system.During the year we tackled many issuesthat are central to the service includingclinical audits, operational improvement andcredentialing and scope of practice. There havebeen significant gains in these areas.The last Medical Services Report waswritten by Dr Rod Fawcett as VisitingConsultant Director of Medical Services toCAH.Rod stepped down in late 2005; it isappropriate to acknowledge his contributionto the service over the five years.During the year Dr Peter Nice steppeddown as chair of the Visiting Medical Staff(VMS) Group and Dr Danny Jones took overchairmanship. Both have provided steady,strong and consistent leadership to the VMSgroup for which they are sincerely thanked.Office Bearers:ChairmanDr. P. Nice to 10/11/2005Dr. D. Jones from 11/11/2006Deputy ChairmanDr. T. Lowe to 10/11/2005Dr. M. Connor from 11/11/2006Discipline Representatives:Anaesthetics - Dr. I. MackaySurgery - Mr. C. SutherlandObstetrics - Dr. G. GrayColac Area Health CommitteeRepresentatives:Divisions of General Practice -Dr. R. GriffithsFalls Committee - Dr. T. LoweInfection Control - Mr. C. SutherlandMedical Imaging - Dr. J. MaddenPathology Services - Dr. I. MackayPrimary Care – Dr. P. NiceSafety and Quality - Dr. T. LoweSWARH - Dr. J. MaddenDr Max AlexanderExecutive Director Medical ServicesNote: Full list of Visiting Medical/Dental Staffon Page 31Dr. M.P. Alexander, M.B., B.S., F.R.A.C.G.P., M.B.A.Dr. A.F. Appelbe, M.B., B.S., F.R.A.C.P.Dr. D. Borsos, M.B., B.S.Dr. A. Brown, M.B, B.S., F.R.A.C.G.P., D.R.A.C.O.G., F.A.C.R.R.M.,Dip. Sports Medicine (Appointed December 2005)Dr. M. Brownstein, M.B., B.S., F.R.A.C.G.P., D.R.A.N.Z.C.O.G.(Appointed December 2005)Dr. D.M. Buckley, M.B., B.S., D.A., D.R.C.O.G.Mr. K. Chao, M.B., B.S., Dip. R.A.C.O.G., F.R.A.C.S.Dr. M.T. Connor, M.B., B.S., F.R.A.C.G.P., Dip. R.A.C.O.G.,A.C.C.A.M.Dr. C.P. Cooper, M.B., B.S., F.R.A.C.P.Dr. G.L. Gray, M.B., Ch.B., D.R.C.O.G.Dr. K.R. Griffiths, M.B., B.S., D.A., D.R.C.O.G., D.C.H.Mr. R. Grills, M.B., B.S., F.R.A.C.S.Dr. P. Hanson, M.B., B.S., F.F.A.R.A.C.S, F.A.N.Z.C.A. (AppointedDecember 2005)Dr. S. Haynes., B.S., F.R.A.C.G.P., F.A.Ch.P.M.Dr. P.H. Hewson, M.D., F.R.A.C.P., M.B., B.S.Dr. D.M. Jones, M.B., B.S., D.A., D.R.C.O.G.Dr. T.W. Jones, M.B., B.S., U.C.H.M.S.Mr. A.C. Lawler, M.B., B.S., F.R.C.S. (Edin), F.R.A.C.S.Dr. V. Lee, M.B., B.S., M.Med, F.R.A.C.S., F.R.A.N.Z.C.O.Dr. T.J. Lowe, M.B., B.S., D.R.A.N.Z.C.O.G.C., F.A.C.R.A.M., B.A.Mr. P.C. Lugg, M.B., B.S., F.R.A.C.S.Dr. I. Mackay, M.B., B.S., D.A., Dip. R.A.C.O.G., F.R.A.C.G.P.Dr. P.J. Madden, M.B., B.S., D.A., D.R.C.O.G.Dr. A. Mander, M.B., B.S., F.R.A.C.P.Mr. T.W. Mason, M.B., B.S., F.R.C.O.G., F.R.A.C.O.G.Dr. S.J. Menzies, M.B., B.S., M.Med, D.R.C.O.G., F.R.A.C.G.P.Dr. L.G. Munro, M.B. B.S., M.A.C.P. Pt 1Mr. D.L. Murphy, M.B., B.S., F.R.A.C.S.Dr. R. McLennan, M.B., B.S., F.R.C.P., F.R.A.C.P.Dr. P.J. Nice, M.B., B.S., D.A., D.R.C.O.G.Dr. W. Rouse, M.B., B.S., F.R.A.C.G.P., D.R.A.N.Z.C.O.G., Grad. Dip.Rural G.P. (Appointed December 2005)Dr. E.W. Ryan, M.B., B.S., F.R.A.C.P.Dr. R.R. Sarkis, M.B., B.S. (Melb)Mr. J.W. Skelley, M.B., Ch B., F.R.A.C.S., F.A. Orth. A.Mr. C.S. Sutherland, M.B., B.S., F.R.C.S. (Edin), F.R.A.C.S.Mr. R.H. White, M.B., B.S., F.R.A.C.S.Dr. A. Wong, M.B., B.S., F.R.A.C.G.P., D.R.A.C.O.G., F.A.C.R.R.M.,Grad. Dip. R.M. (Appointed December 2005)Mr. R.J. Wood, M.B., B.S. F.R.A.C.S.Symbion HealthVisiting Radiologists:Dr. C.M. Blecher, M.B., B.S., F.R.A.N.Z.C.R., D.D.UDr. J.N. Chamberlain, M.B., B.S., M.R.A.C.R., F.R.A.N.Z.C.R.,D.R.A.C.O.G.Dr. A.D. Felber, M.B., B.S., D.D.R., F.R.A.N.Z.C.R.Dr. P.E. James, M.B., B.S., M.Med, F.R.A.N.Z.C.R.Dr. W.J. Rogers, M.B., B.S., F.R.A.C.G.P., F.R.A.N.Z.C.RDr. C.S. Woodward, M.B., B.S., F.R.A.C.R.St John of God PathologyVisiting Pathologists:Dr. H.J.M. Armstrong, M.B., B.S., F.R.C.P.A.Dr. G.P. Davey, M.B., B.S., F.R.C.P.A.Dr. D.W. De Leacy, M.B., B.S., B.Sc., F.R.C.A.P.A.Dr. D.C. Gee, M.B., B.S., F.R.C.P.A., M.I.A.C.Dr. O.C. Harris, M.B., B.S., F.R.C.P.A.Dr. A.M. Jones, M.B., B.S., F.R.C.P.A.Dr. C.M. Pilbeam, M.B., B.S., B.Med.Sc., Ph.D., F.R.C.P.A., M.I.A.C.Dr. M.E. Robson, M.B., B.S., F.R.C.P.A.Dr. R.L. Spokes, M.B., B.S., F.R.C.P.A.Dr. G.W. Swinton, M.B., B.S., F.R.C.P.A.Dr. D.R. Trethewie, M.B., B.S., F.R.C.P.A.Dr. S.L. Wallace, M.B., B.S., F.R.C.P.A.Visiting Dental StaffDr. L. Burke, B.D.Sc.Dr. P. Hou, B.D.Sc.Dr. V. Lissett, B.D.Sc. (Resigned November 2005)Dr. J. McEwan, B.D.Sc.Dr. M. Trotter, B.D.Sc.Dr. N.J. Trotter, B.D.Sc.Dr. A.H. Wigell, B.D.Sc.Royal Australian College of GeneralPractitioners Registrar ProgramDr. A. Isaac, M.B., Ch.B – (February 2004 – February 2007)Dr. G. Ku, M.B., B.S. – (February 2005 – January 2006)Dr. K. Chi Le, M.B., B.S. – (February 2006 – February 2007)Dr. A. Michael, M.B., Ch.B, D.R.A.N.Z.C.O.G. – (February 2004 –February 2005, August 2005 – February 2007)Dr. K. Okedara, M.B., B.S., - (February 2006 – February 2007)Dr. R.G. Organas, M.B., B.S. - (February 2005 – January 2006)Dr. A. Pathirina, M.B., B.S. - (February 2005 – January 2006)Dr. E. Wong, M.B., B.S. – (February 2006 – August 2006)30 Colac Area Health Annual Report 200631

Colac Area Health Annual Report 2006Primary Care“We continue to forgeahead and consolidateour position as aleader in the field ofrural health serviceprovision.”— John Townsend,Director of PrimaryCare.Primary Care DivisionThe past twelve months have seen furtherexpansion in Primary Care program provisionat Colac Area Health (CAH), and wecontinue to forge ahead and consolidate ourposition as a leader in the field of rural healthservice provision. Primary Care programsare delivered by 112 staff working from thefollowing locations:• The Primary Care building and maincampus, CAH• Adult Day Activity Centre, Miller Street• Colac Community Hub, Miller andConnor Streets• Birregurra Community Health Centre• Colac Community Dental Clinic,Hart Street• Culturally and Linguistically Diverse(CALD)/Refugee Health Nurse Program,Forbes Street.Services are grouped across four keyoperational areas — Allied Health, CommunityPrograms, Family Services and CommunityNursing. I am pleased to present some of theexciting highlights and major achievementsfrom the year 2005/2006, and in so doing toacknowledge the excellent and creative workundertaken by CAH staff in the Primary CareDivision.Be Active, Eat WellColac Area Health has now almost completedthe Be Active, Eat Well (BAEW) project, afour-year whole-of-community demonstrationproject in Colac that aims to promote healthyeating and physical activity in children agedfour to twelve years, and their families.The project ends later this year and theintervention survey results of this majorcollaboration with Deakin University willbe presented to the Colac community at acommunity forum in August, 2006. To date,interested professionals and academics haveIn a ground-breaking initiative, CAH has developed newways of servicing vulnerable families. The Family Servicesteam includes, from left, Rhonda Mahoney, MiffyShelton, Daphne Finn and Family Services ManagerMarg White.visited the project from locations as far afieldas Beijing and Broken Hill.The BAEW project implements a uniquemulti-setting, multi-strategy approach.It successfully combines evidence-basedpractices with community needs. The projecthas worked with children, their parents andschools, local retailers, community groups,sporting clubs, health services and ColacOtway Shire to address healthy eating andphysical activity in all children’s settings.In November 2005, CAH’s ‘Be Active-EatWell’ Project won the Victorian Public HealthSpotlight Award for Excellence, presented inMelbourne by the Minister for Health.Expansion of the FamilySupport Service andCo-location of Departmentof Human Services ChildProtection TeamThe establishment of the co-located ChildProtection team at Colac Area Health (CAH)has provided a unique opportunity to developa new way of working and providing servicesto vulnerable families. This is the onlysuch model in Victoria at this point and is aground-breaking initiative by CAH.The primary goals of the co-located team areto strengthen the relationships between ChildProtection and the broader service systemand to enhance the delivery of client services,while strengthening the capacity of the sectorto respond to families with high needs.The co-location of the team has providedan opportunity for regular joint work andongoing consultations. This has the benefitof increasing awareness in relation to theprotective notification process, specifying whatconstitutes a notification, and assessment ofrisk versus need. The key functions are:• Provision of consultation and advice toagency staff where the assessment indicatesthere may be a requirement for statutoryChild Protection involvement.• Supporting effective referral and engagement(including joint home visits) between ChildProtection and Family Support workers.• Undertaking a range of existing ChildProtection functions, including initialinvestigations, protection interventionsand case management of clients subject tostatutory orders.The Family Support Service now extends itsoperational boundaries to cover Colac/Otwayand Corangamite shires.Men’s DepressionProject WorkerMen’s health and wellbeing, particularlyissues related to depression, have beenidentified as major health issues that havebeen largely neglected due to lack ofspecifically funded programs and projects toaddress the issues. The availability of specificfunding streams to fund any specific men’sprograms has been difficult to source.The Men’s Project Worker is a fixedterm position for six months fundedby the Department of Human Services(DHS). It is envisaged that the project willproduce a comprehensive report with clearrecommendations and directions to addressmen’s health and wellbeing issues into thefuture, and identify possible funding sourcesto support future projects/programs.32 Colac Area Health Annual Report 200633

Colac Area Health Annual Report 2006Colac Area Healthseeks to providedynamic initiativesand programs whichpromote behaviourand environmentsthat support healthand wellbeing forall members of thecommunity. This alsomeans increasingthe capacity toconsult and engagewith the communityto help develop anunderstanding andknowledge of personaland community health.Community NursingIn collaboration with the Western DistrictHealth Service, Colac Area Health (CAH)has participated as a partner agency in thedevelopment and implementation of theSustainable Farm Families Project, utilisingthe skills and talents of the Home andCommunity Nursing Team. The project ispredicated upon the view that the good healthof the farmer and farming family is the singlemost important investment of a dairy business.Colac Area Health is working with 200dairy farmers across Victoria, includingColac and district, over a three-year period.Participants are provided with practicalinformation regarding the importance of goodhealth and its link to the productivity of thefarming business. Sessions include a broadrange of health-related topics including stressmanagement, prevention of ill health, farmsafety and nutrition. All participants undergophysical health checks and ongoing monitoringto assess blood sugar levels, cholesterol, bodymass index and blood pressure.Birregurra Community Health Centre has anew building extension achieved as aresult of a bequest left to the Birregurracommunity to develop an activities roomfor use by the community. Along with thecompletion of the Colac Community Hub,these developments represent excellentcollaboration, participation and engagementwith the local community, and testimony tothe quality of agency partnerships and thewonderful work of our volunteers.The employment of two Refugee HealthNurses followed a successful fundingsubmission process. The new roles haveproved invaluable in bringing together theSudanese community and providing healtheducation and access to health services,including the development of a paediatricclinic organised in conjunction with localdoctors and a visiting paediatrician.World Refugee Day was celebrated witha Soccer Carnival held at Trinity College,Colac in June. The day was well attended andsupported by Colac Police, Diversitat, CAHand local community involvement. The CAHCulturally and Linguistically Diverse (CALD)program has continued to attract vital fundingto support our work with culturally diversemembers of the community.Men’s Behaviour ChangeNew developments in regard to the FamilyViolence Program funding have providedCAH with the opportunity to work with menwho use violence against family members.This is a challenging and highly specialisedapproach that requires CAH to haveaccredited staff in Men’s Behaviour ChangeProgram Facilitation.Two staff (one male and one female), fundedby the Department of Human Services(DHS), are completing the requisite GraduateCertificate in Social Science at SwinburneUniversity to be completed by the end of2006. It will be a challenging and excitingopportunity for a community of this size tohave the capacity to work holistically in thefield of family violence.The Social YouthConnective in Colac(SYCIC)The Social Youth Connective in Colac(SYCIC) is a vibrant group of young peoplewho are working closely with a variety ofstaff to ensure that we are aware of, andaddressing, pertinent issues for young peoplein the Colac region. This group initiallyparticipated in a two-day Peer Skills andAdventure Activity Program with Colac AreaHealth (CAH) staff and meet on a regularbasis as a group and with their mentor. Thegroup has organised an alcohol and drugfree“Open Mic(rophone)” event, convenedand supported same sex attraction initiatives,completed alcohol and other drug peereducation and much more.Smoking CessationService (SCS)The Smoking Cessation Service (SCS) wasestablished at CAH in July 2005. The firstgroup of clients commenced in August.The service covers both community-basedoutpatients and acute inpatients, includingthose in the Pre-admission Clinic.The evidence base for this service was set outin Smoking Cessation Guidelines establishedby the Woolcock Institute of Medical Researchin Sydney and supported by the Lung HealthPromotion Centre of the Alfred Hospital inMelbourne. Formal training was undertakenby three CAH staff to deliver this service. Theteam has forged strong ongoing relationshipswith other health organisations seeking toestablish a similar service.The demand for appointments exceedsavailability, with the greatest source of referralscoming from General Practitioners and theBarwon Mental Health Team. An increasingnumber of clients are self-referred.The raw data for evaluation of the SmokingCessation Clinic is currently being collectedand collated. Early figures indicate that thesuccess rate of 64% established in the firstsix months should be maintained. This highlevel is in keeping with the expected outcomesestablished by The Royal Prince AlfredHospital in Sydney. A total of 114 registeredclients have been seen between the months ofAugust 2005 and June 2006.These examples encapsulate the range anddiversity of our work and strongly complementthe standard ‘core business’ functions ofthe Primary Care Division. Colac AreaHealth seeks to provide dynamic initiativesand high quality programs, promotingbehaviour and environments that supporthealth and wellbeing for all members of thecommunity. In practical terms, this alsomeans increasing the capacity to consult andengage with the community to help developjoint understanding and shared knowledge ofpersonal and community health.Our emphasis upon health promotion anda social model of health is built upon strongand meaningful consumer participation,which provides valuable momentum towardsthe achievement of good health outcomesacross all sections of our increasingly diversecommunity.John TownsendDirector of Primary CareYoung people involvedin the Social YouthConnective in Colacwork closely with ColacArea Health staff toraise awareness ofissues affecting youngpeople in the region.34Colac Area Health Annual Report 200635

Colac Area Health Annual Report 2006Our CommunityBequests and DonationsAs a result of our fundraising campaign, localcommunity members, auxiliaries, volunteers,service clubs and groups, bequests, localbusinesses and CAH staff have raised inexcess of $330,795.Colac Area Health has been successfulin receiving funds from the followingphilanthropic trusts:• RACV $5,000• Alfred Felton Trust $20,000• Pierce Armstrong $2,000• Annie Danks Trust $8,000• Ian Potter Foundation $20,000Community PartnershipsSpecial guests included Chief Commissionerof Victoria Police, Ms Christine Nixon, andlong distance Olympic runner Mr Lee Troop.This is probably the first event of this typethat has been held in Colac and there weremany people who contributed to making thenight a success. We would like to thank thebusiness sector and service clubs of Colacwho gave great support and acknowledgewithout the assistance of Colac Area Health(CAH) staff, the occasion would not havehappened.We have received many compliments fromguests about the night and it was an excellentopportunity to promote the products,businesses and community spirit.The success has been recognised with thisevent being nominated in the Colac OtwayShire Business Awards.Proceeds from the evening have assistedwith the purchase of furniture, fixtures andfittings for Corangamarah, the new 75-bedResidential Aged Care facility.VolunteersColac Area Health currently has 250registered volunteers, excluding palliative carevolunteers.These volunteers continue to be recognisedas a vital part of CAH and provide assistancein the following areas:- Residential Aged Care- Adult Day Activity Program- Neighbourhood House- Community programs- Childminding- Flower ladies- Colac Area Health Auxiliary- Clerical roles- Pastoral visitingColac Area Health’sinaugural Black TieGala Evening wasa celebration ofcommunity spirit — amajor fundraising eventfor CAH which led to itsnomination in the ColacOtway Shire BusinessAwards.Proceeds fromvarious communityfundraising campaignshave helped with thepurchase of furniture,fixtures and fitting forCorangamarah, the newResidential Aged Carefacility.AuxiliariesColac Area Health (CAH) recognises thevaluable contribution of our Auxiliarymembers over many years. The members haveraised thousands of dollars which has enabledCAH to purchase equipment, furnishings andfittings to benefit the community when usingthe Health Service.The Birregurra Community HealthCentre Auxiliary continues to support theCommunity Health Centre at Birregurra andprovides ongoing fundraising which assistswith the purchase of equipment for theHealth Centre.Certificates of Service are awarded tovolunteers on completion of ten years service.Mrs Nea Hampshire was presented with aCertificate at the Annual General Meetingheld in October, 2005.Blue Ribbon FoundationA novel idea to host a rodeo in Colac hasbecome part of the New Year calendar formany. This event is now in its fourth year andcontinues to attract enthusiastic crowds. It isorganised by a small but dedicated committeeand continues to raise awareness of thisimportant foundation while raising funds topurchase vital equipment for the EmergencyDepartment at CAH.Gala Evening– “A Night Under the Stars”The inaugural Black Tie Gala Evening, heldon Saturday, April 8, was a stunning success.A marquee was erected on the Colac CricketGround overlooking Lake Colac with 400guests being entertained throughout theevening by talented students from TrinityCollege band Sophisticated Swing.Colac Area Health’s excellent relationshipand association with Colac Police and theBlue Ribbon Foundation – Colac Branchhelped secure the feature event of the evening– The Victoria Police Showband.The evening was a chance to showcase localproduce and wine, all of which was donated.Local chefs combined to cater for the evening.36 Colac Area Health Annual Report 200637

Colac Area Health Annual Report 2006Our PeopleCommencing asColac Area Health’sManager, HumanResources last year,Anne-Maree Neal seesher role as supportingmanagers to maximisethe potential of theirstaff by identifyingand delivering qualityhuman resourcesand organisationaldevelopment programs.The Human Resources Department coordinates Human Resources, payrolland salary packaging, health and safety, and complaint liaison programsand services for all staff at CAH.The Human Resources (HR) Departmentcoordinates Human Resources, payroll andsalary packaging, health and safety, andcomplaint liaison programs and services.The Department provides advice to staffand management on industrial and employeerelations, oversees Industrial Relations(IR) legislative compliance and monitorsemployment practice trends.The department assists divisional managerswith recruitment and selection, the delivery oforganisational development, health and safetyprograms, and works to ensure harmoniousworkplace relations through the developmentof positive HR policies.Current Equivalent Full-Time (EFT): 3.64Payroll & Salary PackagingPayroll staff have the responsibility fordelivering a fortnightly payroll service toapproximately 600 employees at Colac AreaHealth (CAH) and two other local agenciesand also manages salary packaging for about400 employees. In 2005/06, salary packagingservices were expanded to offer this facility toanother local agency.Salary packaging increases CAH’s capacityto reward and attract staff beyond the mainbase salary offered and enables CAH toprovide a number of benefits to staff.The staff take-up rate for standardsalary packaging benefits for 2005/06 was62%. Other packaging benefits utilised bystaff include: meals and entertainment,superannuation, staff loans and laptops.In 2005/06 a Payroll/Salary PackagingIntranet Page was implemented providingon-line information to staff on Health SectorAwards/Agreements; Forms for Payrolland Salary Packaging; News, Guides andFrequently Asked Questions.Occupational Healthand SafetyThrough the Occupational Health and Safety(OHS) Committee, the Human ResourcesDepartment’s Safety Officer facilitatesprograms designed to reduce risk andcontinually improve workplace health andsafety.The OHS Committee meets monthly tolook at issues of concern and to identify safemanagement practices. Colac Area Health’s(CAH) Safety Officer coordinates theannual workplace audit program, reports tomanagement on OHS workplace matters andassists managers and staff to regularly reviewwork practices and procedures with a viewto enhancing safety levels and meeting OHSstandards.In 2005/06, health and safety designatedworkgroups were expanded from eight to 17,with 88% of these groups now representedby a Health and Safety Representative (HSR)and 44% have deputy HSRs. During the yeara number of HSRs participated in refreshertraining and Victorian WorkCover Authority(VWA) OHS training on committees.In 2005/06, in line with the introductionof the new OHS Act 2004, discussionscommenced with our Safety Improvementand OHS committees in regards to theamalgamation of these committees with theaim of increasing the emphasis on workplacestaff and management consultation on healthand safety matters.CAH has increased itsnumber of employee healthand safety representativesand reviewed OccupationalHealth and Safety (OHS)committee structuresto ensure greater staffparticipation, consultationand access to informationabout workplace health andsafety.38 Colac Area Health Annual Report 200639

Colac Area Health Annual Report 2006General ServicesPatient/residenttransportationthroughout the serviceis provided by GeneralServices Porters.The General Services Department providescatering, cleaning, porter/orderly, mail,linen, personal linen and waste services tousers of Colac Area Health (CAH). A totalEquivalent Full-Time (EFT) of 53.2 includessupervisors, trade cooks, porters and generalservice assistants.The food service is a cook fresh system andprovides in excess of 200,000 meals per year.External food service is provided to ColacOtway Shire (Meals on Wheels), VictoriaPolice Force, Australian Red Cross and otherorganisations.Cleaning is provided from very high riskfunctional areas to minimal risk functionalareas. All cleaning is in accordance withCleaning Standards in Victorian PublicHospitals. External service providers, StJohn of God Pathology and Symbion Healthlocated on-site, also use CAH cleaningservices.Patient/resident transportation throughoutthe service is provided by General ServicesPorters.Relocation of workstations and storage ofequipment is also overseen by the GeneralServices Department.In February, 2006 a restructure of theGeneral Services Manager’s position saw thisrole changed to Services Manager.The new position retained management forthe provision of Food Service, Cleaning,Environmental, Waste Management,Linen Service and now includesEngineering, Supply, vehicle fleetmanagement.Waste ManagementAccreditation as a Waste Wise business inthe Community Program is due for audit inNovember 2006. This recognises that CAH isan industry leader in waste management.A waste management action plan wasdeveloped and is based on the Reduce, Reuseand Recycle principles of Waste Management.Annual waste audits are conducted forgeneral and clinical and related waste streams.Residential Aged CareRedevelopmentMany hours have been spent on the selectionand purchase of furniture and fittings for thenew Residential Aged Care (RAC) facility,Corangamarah. This redevelopment will havea significant impact on the General ServicesDepartment.Food ServiceThe Food Service delivery to Corangamarahhas been reviewed taking into accountquality, resident acceptance and food safety.Staff levels, equipment and procedures willall be reviewed, ensuring that standards aremaintained. A recommendation was put tothe Board of Directors and approval receivedin May, 2006 for the introduction of the“Hostess” and “Banqueting” food service. Thiswill take some months to fully implement.Environmental ServiceCleaning protocols will be reviewed inconsultation with the Infection Control Nurseand staff. With the increase in ensuites andchange in layout, cleaning resources will needto be reviewed. Staff levels, equipment andprocedures will all be reviewed, ensuring thatstandards are maintained.A central vacuum system has beeninstalled. This, along with other initiatives,Occupational Health and Safety (OHS) forenvironmental staff, will improve.Personal LinenThe laundry will move into the new facilityand current machines will be relocated.Staff levels and procedures will be reviewed,ensuring that standards are maintained.EngineeringColac Area Health (CAH) employed, on apart-time basis, a Consultant Engineer, Mr.Leo Ryan, to provide professional input intoissues arising from the Residential Aged CareRedevelopment Project. This position hasliaised with the Project Engineer, StructuralEngineer and architects.Due to retirement and extended sick leave of some Engineering staff, consideration is currentlybeing given to outsourcing some services such as painting and electrical works.Colac Area Health appreciates the support given by the Engineering/Maintenance staff inproviding a service with reduced numbers.AchievementsAudit of Cleaning ServicesIn accordance with requirements an audit was conducted on 28 March, 2006 by an ExternalAuditor.AreaGroup A - Very High RiskOperating Suite, ICUGroup B - High andModerate RiskCSSD, Sterile supply areas,Emergency Dept., Pharmacyclear area, Wards etcGroup C - Low RiskLaboratories, Mortuary, MedicalImaging, Waiting Rooms,AdministrationAudit of Food Safety ProgramLegislation also requires that an external audit of the Food Safety Program be conducted.Catering and Hospitality Management Services P/L conducted the audit on January 18, 2006.Future Directions:AreasAudited2004Score%AreasAuditedAll areas meet the Cleaning Standards Acceptable Quality Level (AQL)3.2.2 - Food safety practices and GeneralRequirements3.2.3 - Food Premises and Equipment2005 2006Score%AreasAuditedScore%4 97 4 100 8 9618 94 20 97 17 971 96 1 9622 94.5 25 97.8 26 96.4• Assisting with the move into Corangamarah• Implementation of the “Hostess” and “Banqueting” food system• Implementation of revised cleaning protocols and systems, considering culture, practice, infectioncontrol, and frequency and general perceptions.Trevor NelsonServices Manager2003%2004%2005%94.57 96.74 93.482006%94.90100 100 100 100There were five non-notifiable areas requiring corrective action, This action was attended to and certificates were issued onFebruary 10, 2006. • Food Safety Plan, reviewed and accepted • Food Safety Plan developed for Birregurra CommunityHealth CentreFood Servicedelivery to thenew residentialaged care facilityhas been reviewedtaking into accountquality, residentacceptance andfood safety.Colac Area Health Annual Report 200642 43

Colac Area Health Annual Report 2006FinanceSelected Performance RatiosFinancial ReportCurrent RatioMeasure of the ability of the institution to pay currentliabilities from current assets.2004/20052003/20042005/20062002/20032001/20022001/2002 2002/2003 2003/2004 2004/2005 2005/20061.6 0.71 0.78 0.34 0.52Quick RatioMeasure of the ability of the institution to pay its currentliabilities immediately.2004/20052003/20042005/20062002/20032001/20022001/2002 2002/2003 2003/2004 2004/2005 2005/20061.56 0.68 0.75 0.32 0.48PrivateTACVWADaysDebt to Equity (Gearing)Ratio is used to demonstrate the primary source of fundsused by the Service to determine the level of reliance oninternal or external funds.2004/20052005/20062003/2004Revenue IndicatorsAverage Collection Days7060504030201002001/20022002/20032001/2002 2002/2003 2003/2004 2004/2005 2005/20060.24 0.26 0.24 0.29 0.21PrivateTACVWA2002 2003 2004 2005 2006Patients Fees Outstanding – Outstanding Debtors as at 30 June 2006Under 30Days30–60Days61-90DaysOver 90DaysTotal30/06/06Total30/06/05Total30/06/04Total30/06/0371,888 17,212 12,151 - 101,251 140,263 80,848 160,560- - - - -- - 5776,006 - - - 6,006 7,350 8,684 23,415The continuing theme of past financialreports seems to be clearly linked to the tightfinancial environment in which Colac AreaHealth (CAH) operates and when reviewingresults for the current year, it is no exception.Although an extremely large entity surplus isreported this occurrence is solely due to themajor capital funding inflows which have beenreceived to construct our new ResidentialAged Care (RAC) facility.The surplus tends to mask a range ofoperational difficulties which have beenexperienced in past years and have again beenfelt in the 2005/06 financial year.A range of initiatives has continued in anattempt to increase variable throughputlevels in the Acute hospital. An innovativearrangement with Barwon Health has seenwaiting list patients at Barwon Health treatedusing viable funding from CAH.The scheme, although limited in itsapplication, has had a two-fold effect – themaintenance of funding levels for CAH andalso a decrease albeit small in Barwon Healthwaiting list levels. Coupled with the resultsof this initiative a further positive result is theattraction of a general surgeon to the area latein the financial year. It is anticipated that thelevel of surgical work undertaken in 2006/07will be more closely aligned with budgetedrequirements and reduce the flow of fundsback to the Department of Human Services(DHS) due to actual versus target shortfalls.Residential Aged Care occupancy levelscontinued to remain low for the firstthree-quarters of the financial year but withour new 75-bed facility nearing completionan influx of residents in the final quarter hasseen occupancy increase to benchmark levels,a situation which is hoped will continue intothe future.The twin pressures of below target variablethroughput in the Acute Hospital and lowresident levels in RAC has had a marked effectin not only the levels of available cash held bythe Service, but also the operational result ofthe Service as opposed to the entity result.As a consequence of these pressures, whilstCAH reported an entity surplus for the yearof $6,621,078 plus due to the addition ofthe revaluation increment, stripping at awayCapital Income, Unfunded Depreciationand Gains made on Assets sales an operatingdeficit of $644,226 resulted.Early indicators are that with the advent of asecond general surgeon, and the maintenanceof benchmark levels in RAC an improvementin both the operating result and the cashposition of the Service can be expected in2006/07. Coupled with these circumstancesa range of initiatives to both increase revenuesand decease expenditure are currently beingexamined by both the Board of Directors(BOD) and the Executive Management Team(EMT) to ensure the financial position ofCAH returns to surplus as soon as possible.Throughout the year the commitment of staffat all levels, and the support received fromthe Department of Human Services, Geelongmust be acknowledged. It is because of suchongoing commitment and support that CAHwill continue to improve and expand levels ofcare given through the various division of ourintegrated service model.John ScarrottDirector of Corporate Services/DeputyChief Executive Officer“A range of initiativesto both increaserevenues anddecrease expenditureare currently beingexamined by both theBoard of Directorsand the ExecutiveManagement Team toensure the financialposition of ColacArea Health returnsto surplus as soon aspossible.”— John ScarrottColac Area Health Annual Report 200644 45

FinanceCertificationAccountable Officer’s,Chief Finance and Accounting Officer’sand Member of Responsible Body’s DeclarationWe certify that the attached financial statements for Colac Area Health have been prepared inaccordance with Part 4.2 of the Standing Directions of the Minister for Finance under the FinancialManagement Act 1994, applicable Financial Reporting Directions, Australian Accounting Standardsand other mandatory professional reporting requirements.We further state that, in our opinion, the information set out in the Operating Statement, Balance Sheet,Cash Flow Statement and Statement of Recognised Income and Expense and notes to and forming partof the financial statements, presents fairly the financial transactions during the year ended 30 June 2006and financial position of the Service as at 30 June 2006.We are not aware of any circumstance which would render any particulars included in the financialstatements to be misleading or inaccurate.FinanceOperating Statement for the year ended 30 June 2006REVENUE FROM OPERATING ACTIVITIES 2 25,581 25,041REVENUE FROM NON-OPERATING ACTIVITIES 2 416 513Employee Benefits 2b (18,454) (17,994)Non Salary Labour Costs 2b (1,817) (1,628)Supplies and Consumables 2b (2,924) (2,397)Other Expenses from Continuing Operations 2b (3,410) (3,473)Share of Net Result of Associates & Joint Ventures 18 (38) (35)accounted for using the Equity ModelNET RESULT FROM CONTINUING OPERATIONS BEFORE (646) 27CAPITAL AND SPECIFIC ITEMSCapital Purpose Income 8,501 1,322Depreciation 3 (1,235) (1,254)NET RESULT FROM CONTINUING OPERATIONS 6,620 95NET RESULT FOR THE YEAR 6,620 95NotesTotal2006$’000Total2005$’000This statement should be read in conjunction with the accompanying notesRichard Riordan Geoff Iles Jennifer EvansChairman Chief Executive Officer Acting Director ofCorporate ServicesColac Colac Colac21 September, 2006 21 September, 2006 21 September, 2006Colac Area Health Annual Report 200646 47

FinanceBalance Sheet as at 30 June 2006ASSETSCurrent AssetsCash and Cash Equivalents 4,19 1,485 552Receivables 5,19 799 776Other Financial Assets 6,19 162 136Inventory 8 167 137Total Current Assets 2,613 1,601Non-Current AssetsInvestment in Joint Venture using Equity Method 18 245 283Receivables 5,19 677 1,482Property, Plant and Equipment 12 38,288 25,572Total Non-Current Assets 39,210 27,337TOTAL ASSETS 41,823 28,938LIABILITIESCurrent LiabilitiesPayables 9,19 1,360 1,287Provisions 10 3,490 3,291Other Liabilities 6,7 162 136Total Current Liabilities 5,012 4,714Non-Current LiabilitiesProvisions 10 1,785 1,770Total Non-Current Liabilities 1,785 1,770TOTAL LIABILITIES 6,797 6,484NET ASSETS 35,026 22,454EQUITYAsset Revaluation Reserve 13a 7,845 2,243General Reserve 13a - 54Contributed Capital 13b 13,288 12,938Accumulated Surplus/(Deficit) 13c 13,893 7,219TOTAL EQUITY 13d 35,026 22,454This statement should be read in conjunction with the accompanying notesNotesTotal2006$’000Total2005$’000FinanceCash Flow Statement for the year ended 30 June 2006CASH FLOWS FROM OPERATING ACTIVITIESOperating Grants from Government 22,968 20,522Patient and Resident Fees Received 4,528 4,242GST Recovered from ATO 1,536 859Donations and Bequests Received 331 420Interest Received 45 -Other Receipts 932 1,243Employee Benefits Paid (18,574) (17,614)Fee for Service Medical Officers (1,998) (1,790)GST Paid to ATO (2,897) (2,012)Payments for Supplies and Consumables (6,998) (6,724)CASH GENERATED FROM OPERATIONS (127) (854)Capital Grants from Government 9,337 1,454NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES 14 9,210 600CASH FLOWS FROM INVESTING ACTIVITIESPurchase of Property, Plant & Equipment (8,776) (2,869)Proceeds from Sale of Property, Plant & Equipment 71 486Proceeds from Sale of Investments 78 -NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES (8,627) (2,383)CASH FLOWS FROM FINANCING ACTIVITIESContributed Capital from Government 350 -NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES 350 -NET INCREASE/(DECREASE) IN CASH HELD 933 (1,783)CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 552 2,335CASH AND CASH EQUIVALENTS AT END OF PERIOD 4 1,485 552This statement should be read in conjunction with the accompanying notesNotesTotal2006$’000Inflows/(Outflows)Total2005$’000Inflows/(Outflows)Colac Area Health Annual Report 200648 49

FinanceFinanceNotes to and forming part of the Financial Statements for the year ended 30 June 2006Statement of Recognised Income and Expense forthe year ended 30 June 2006Gain on Asset Revaluation 13a 5,602 -NET INCOME RECOGNISED DIRECTLY IN EQUITY 5,602 -Net result for the Year 6,620 95TOTAL RECOGNISED INCOME AND EXPENSE FOR THE YEAR 12,222 95This statement should be read in conjunction with the accompanying notesNotesTotal2006$’000Total2005$’000Note 1: Statement of Significant Accounting PoliciesThe general purpose financial report has been prepared on an accrual basis in accordance with the Financial Management Act 1994,Accounting Standards issued by the Australian Accounting Standards Board, and Urgent Issues Group Interpretations. Accountingstandards include Australian equivalents to International Financial Reporting Standards (A-IFRS). The financial statements wereauthorised for issue by Geoff Iles, Chief Executive Officer on 21 September, 2006.Basis of preparationThe financial report is prepared in accordance with the historical cost convention, except for certain assets and liabilities which, asnoted are at valuation. Cost is based on the fair values of the consideration given in exchange for assets.In the application of A-IFRS management is required to make judgements, estimates and assumptions about carrying values of assetsand liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historicalexperience and various other factors that are believed to be reasonable under the circumstance, the results of which form the basis ofmaking the judgements. Actual results may differ from these estimates.The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in theperiod in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if therevision affects both current and future periods.Judgements made by management in the application of A-IFRS that have significant effects on the financial statements and estimateswith a significant risk of material adjustments in the next year are disclosed throughout the notes in the financial statements.Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the conceptsof relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported.The Health Service changed its accounting policies on 1 July 2004 to comply with A-IFRS. The transition to A-IFRS is accountedfor in accordance with Accounting Standard AASB 1 First-time Adoption of Australian Equivalents to International FinancialReporting Standards, with 1 July 2004 as the date of transition. An explanation of how the transition from superseded policies to A-IFRS has affected the Health Service’s financial position, financial performance and cash flows is discussed in Note 23.The Health Service has elected to apply Accounting Standard AASB 2005-04 Amendments to Accounting Standards (June 2005),even though the Standard is not required to be adopted until annual reporting periods beginning on or after 1 January 2006.The accounting policies set out below have been applied in preparing the financial statements for the year ended 30 June 2006,the comparative information presented in these financial statements for the year ended 30 June 2005, and in the preparation of theopening A-IFRS balance sheet at 1 July 2004, the Health Service’s date of transition, except for the accounting policies in respectof financial instruments. The Health Service has not restated comparative information for financial instruments, including derivatives,as permitted under the first-time adoption transitional provisions. The accounting policies for financial instruments applicable to thecomparative information and the impact of the changes in these accounting policies is discussed further in note 1(y).(a) Reporting EntityThe financial statements include all the controlled activities of the Colac Area Health. Colac Area Health is a not-for profit entity andtherefore applies the additional Aus paragraphs applicable to “not-for-profit” entities under the Australian equivalents to IFRS.(b) Rounding OffAll amounts shown in the financial statements are expressed to the nearest $1,000.(c) Cash and Cash EquivalentsCash and cash equivalents comprise cash on hand and in banks and investments in money market instruments, net of outstandingbank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the Balance Sheet.(d) ReceivablesTrade 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 fordoubtful debts is raised where doubt as to the collection exists.50 Colac Area Health Annual Report 200651

FinanceFinanceNotes to and forming part of the Financial Statements for the year ended 30 June 2006 Notes to and forming part of the Financial Statements for the year ended 30 June 2006(e) InventoriesInventories include goods held either for sale or for distribution at no or nominal cost in the ordinary course of business operations.It excludes depreciable assets.Inventories held for distribution are measured at the lower of cost and current replacement cost. All other inventories are measured atthe lower of cost and net realisable value.(f) Other Financial AssetsOther Financial Assets are recognised and derecognised on trade date where purchase or sale of an investment is under a contract whoseterms require delivery of the investment within the time frame established by the market concerned, and are initially measured at fairvalue, net of transaction costs. Other financial assets are classified between current and non-current assets based on the Colac AreaHealth Board of Management’s intention at balance date with respect to the timing of disposal of each asset.The Health Service classifies its other investments in the following categories: financial assets at fair value through profit or loss, loansand receivables, held-to-maturity investments, and available-for-sale financial assets. The classification depends on the purpose forwhich the investments where acquired. Management determines the classification of its investments at initial recognition.Investments held for trading purposes are classified as current assets and are stated at fair value, with any resultant gain or lossrecognised in profit or loss. Where Colac Area Health has the positive intent and ability to hold investments to maturity, they are statedat amortised cost less impairment loss.Other investments held by the Colac Area Health are classified as being available for sale and are stated at fair value. Gains and lossesarising from changes in fair value are recognised directly in equity, until the investment is disposed of or is determined to be impaired,at which time to the extent appropriate, the cumulative gain or loss previously recognised in equity is included in profit or loss for theperiod.Dividend revenue is recognised on a receivable basis. Interest revenue is recognised on a time proportionate basis that takes intoaccount the effective yield on the financial asset.(g) Non Current Physical AssetsLand and buildings are measured at the amounts for which assets could be exchanged between knowledgeable willing parties in anarm’s length transaction. Plant, equipment and vehicles are measured at cost.(h) Revaluations of Non-Current AssetsAssets other than those that are carried at cost are revalued with sufficient regularity to ensure that the carrying amount of each assetdoes not differ materially from its fair value. The revaluation process normally occurs every three to four years for assets with usefullives of less than 30 years or six to eight years for assets with useful lives of 30 or greater years. Revaluation increments or decrementsarise from differences between an asset’s depreciated cost or deemed cost and fair value.Revaluation increments are credited directly to the asset revaluation reserve, except that, to the extent that an increment reverses arevaluation decrement in respect of that class of asset previously recognised as an expense in net result, the increment is recognisedimmediately as revenue in the net result.Revaluation decrements are recognised immediately as expense in the net result, except that, to the extent, that a credit balance existsin 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 a class of property, plant and equipment are offsetagainst one another within that class but are not offset in respect of assets in different classes. Revaluation reserves are not transferredto accumulated funds on derecognition of the relevant asset.(i) DepreciationAssets with a cost in excess of $1,000 are capitalised and depreciation has been provided on depreciable assets so as to allocate theircost (or valuation) over their estimated useful lives using the straight-line method. Estimates of the remaining useful lives for all assetsare reviewed at least annually. This depreciation charge is not funded by the Department of Human Services.The following table indicates the expected useful lives of non current assets on which the depreciation charges are based.2006 2005Buildings Up to 50 years Up to 50 yearsPlant and Equipment Up to 20 years Up to 20 years(j) Impairment of AssetsIntangible assets with indefinite useful lives are tested annually as to whether their carrying value exceeds their recoverable amount.All other assets are assessed annually for indications of impairment, except for:- inventories;- assets arising from construction contracts;- assets arising from employee benefits;- financial instrument assets;- non current assets held for sale.If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their recoverableamount. Where an asset’s carrying value exceeds its recoverable amount, the difference is written off by a charge to the operatingstatement except to the extent that the write down can be debited to an asset revaluation reserve amount applicable to that class ofasset.The recoverable amount for most assets is measured at the higher of depreciated replacement cost and fair value less costs to sell.Recoverable amount for assets held primarily to generate net cash inflows is measured at the higher of the present value of futureexpected cash flows expected to be obtained from the asset and fair value less costs to sell. It is deemed that, in the event of the lossof an asset, the future economic benefits arising from the use of the asset will be replaced unless a specific decision to the contrary hasbeen made.(k) PayablesThese amounts represent liabilities for goods and services provided prior to the end of the financial year and which are unpaid.The normal credit terms are usually Nett 30 days.(l) ProvisionsProvisions are recognised when the Colac Area Health 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 reportingdate, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cashflowsestimated to settle the present obligation, its carrying amount is the present value of those cashflows.(m) Functional and Presentation CurrencyThe presentation currency of the Colac Area Health is the Australian dollar, which has also been identified as the functional currencyof the Health Service.(n) Goods and Services TaxRevenues, expenses and assets are recognised net of GST, except for receivables and payables which are stated with the amount ofGST included and except, where the amount of GST incurred is not recoverable, in which case GST is recognised as part of the costof acquisition of an asset or part of an item of expense or revenue. GST receivable from and payable to the Australian Taxation Office(ATO) is included in the Balance Sheet. The GST component of a receipt or payment is recognised on a gross basis in the Cash FlowStatement in accordance with AASB 107 Cash Flow statements.(o) Employee BenefitsProvision is made for benefits accruing to employees in respect of wages and salaries, annual leave, long service leave, and sick leavewhen it is probable that settlement will be required and they are capable of being measured reliably.Measurement of short-term and long-term employee benefitsShort-term employee benefits are those benefits that are expected to be settled within 12 months, and are measured at their nominalvalues using the remuneration rate expected to apply at the time of settlement. They include wages and salaries, sick leave, annualleave, longservice leave and accrued days off that are expected to be settled within 12 months.Long-term employee benefits are those benefits that are not expected to be settled within 12 months, and are measured at the presentvalue of the estimated future cash outflows to be made by Colac Area Health in respect of services provided by employees up toreporting date. They include long service leave and annual leave not expected to be settled within 12 months.The present value of long-term employee benefits is calculated in accordance with AASB119 Employee Benefits. Long-termemployee benefits are measured as the present value of expected future payments to be made in respect of services provided byemployees up to the reporting date. Consideration is given to expected future wage and salary levels, experience of employeedepartures and periods of service. Expected future payments are discounted using interest rates on national Government guaranteedsecurities with terms to maturity that match, as closely as possible, the estimated future cash outflows.Classification of employee benefits as current and non-current liabilitiesEmployer benefit provisions are reported as current liabilities where Colac Area Health does not have an unconditional right to defersettlement for at least 12 months. Consequently, the current portion of the employee benefit provision can include both short-termbenefits, that are measured at nominal values, and long-term benefits, that are measured at present values.52Colac Area Health Annual Report 200653

Finance Notes to and forming part of the Financial Statements for the year ended 30 June 2006FinanceNotes to and forming part of the Financial Statements for the year ended 30 June 2006Employee benefit provisions that are reported as non-current liabilities also include long-term benefits such as non vested long serviceleave (ie where the employee does not have a present entitlement to the benefit) that do not qualify for recognition as a current liability,and are measured at present values.SuperannuationDefined contribution plansContributions to defined contribution superannuation plans are expensed when incurred.Defined benefit plansThe amount charged to the Operating Statement in respect of defined benefit plan superannuation represents the contributions madeby Colac Area Health to the superannuation plan in respect to the current services of current Colac Area Health staff. Superannuationcontributions are made to the plans based on the relevant rules of each plan.Colac Area Health does not recognise any defined benefit liability in respect of the superannuation plan because Colac Area Healthhas no legal or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuationcontributions as they fall due. The Department of Treasury and Finance has assumed responsibility for the defined benefit liability ofColac Area Health and administers and discloses the State’s defined benefit liabilities in its financial report.Termination BenefitsLiabilities for termination benefits are recognised when a detailed plan for the termination has been developed and a valid expectationhas been raised with those employees affected that the terminations will be carried out. The liabilities for termination benefits arerecognised in other creditors unless the amount or timing of the payments is uncertain, in which case they are recognised as a provision.On-CostsEmployee benefit on-costs are recognised and included in employee benefit liabilities and costs when the employee benefits to whichthey relate are recognised as liabilities.(p) Finance CostsFinance costs are recognised as expenses in the period in which they are incurred.Finance costs include:- interest on bank overdrafts and short term and long term borrowings:- amortisation of discounts or premiums relating to borrowings:- amortisation of ancillary costs incurred in connection with the arrangement of borrowings:- finance charges in respect to finance leases recognised in accordance with AASB 117 Leases.The capitalisation rate used to determine the amount of borrowing costs to be capitalised is the weighted average interest rateapplicable to Colac Area Health’s outstanding borrowing during the year.(q) Residential Aged Care ServicePolwarth House and Otway Pioneer Residential Aged Care facilities operations are an integral part of Colac Area Health and share itsresources. An apportionment of land and buildings has been made based on floor space. The results of the two operations have beensegregated based on actual revenue earned and expenditure incurred by each operation.(r) Intersegment TransactionsTransactions between segments with Colac Area Health have been eliminated to reflect the extent of the Health Service’s operations asa group.(s) Leased Property and EquipmentA distinction is made between finance leases which effectively transfer from the lessor to the lessee substantially all the risks andbenefits incidental to ownership of leased non-current assets, and operating leases under which the lessor effectively retains all risksand benefits. Assets held under a finance lease are recognised as non current assets at their fair value or, if lower, at the present valueof the minimum lease payments, each determined at the inception of the lease. The minimum lease payments are discounted at theinterest rate implicit in the lease.A corresponding liability is established and each lease payment is allocated between the principal component and the interest expense.Finance leased assets are amortised on a straight line basis over the estimated useful life of the asset.Operating lease payments are representative of the pattern of benefits derived from the leased assets and accordingly are expensed inthe periods in which they are incurred.(t) Revenue RecognitionRevenue is recognised in accordance with AASB 118 Revenue. Income is recognised as revenue to the extent it is earned. Unearnedincome at reporting date is reported as income received in advance.54Colac Area Health Annual Report 2006Amounts disclosed as revenue are, where applicable, net of returns, allowances and duties and taxes.Government GrantsGrants are recognised as revenue when the Hospital gains control of the underlying asset. Where grants are reciprocal, revenue is recognised asperformance occurs under the grant. Non-reciprocal grants are recognised as revenue when the grant is received or receivable. Conditional grants maybe 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 AcuteHealth Division Hospital Circular 16/2004.Patient FeesPatient fees are recognised as revenue at balance date.Donations and Other BequestsDonations and bequests are recognised as revenue when the cash is received. If donations are for a special purpose they may be appropriated to areserve, such as specific restricted purpose reserve.(u) Fund AccountingThe Hospital operates on a fund accounting basis and maintains two funds: Operating and Capital funds. The Hospital’s Capital Fund includesunspent capital donations and receipts from fundraising activities conducted solely in respect of this fund.(v) Services Supported by Health Services Agreement and Services Supported by Hospital and Community InitiativesThe activities classified as Services Supported by Health Services Agreement (HSA) are substantially funded by the Department of Human Servicesand includes RACS, while Services Supported by Hospital and Community Initiatives (Non HSA) are funded by Colac Area Health’s own activities orlocal initiatives.(w) Comparative InformationWhere necessary the previous year’s figures have been reclassified to facilitate comparisons.(x) Contributed CapitalConsistent with UIG Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities and FRD 2 Contributed Capital,apportions for additions to the net asset base have been designated as contributed capital. Other transfers that are in the nature of contributions ordistributions, have also been designated as contributed capital.(y) Financial Instruments - Adoption of AASB 132 and AASB 139Colac Area Health has elected not to restate comparative information for financial instruments within the scope of AASB 132 Financial Instruments:Presentation and Disclosure and AASB 139 Financial Instruments: Recognition and Measurement, as permitted on the first - time adoption ofA - IFRS.The accounting policies applied to accounting for financial instruments in the current financial year are detailed in notes (c), (f) and (k).(z) Net result From Continuing Operations Before Capital & Specific ItemsA-IFRS allows the inclusion of additional subtotals on the face of the operating statement when such presentation is relevant to an entity’s financialperformance. This financial report includes an additional subtotal entitled “Net result From Continuing Operations Before Capital & Specific Items”.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 ascapital works, plant and equipment. Consequently the recognition of revenue as capital purpose income is based on the intention of the provider ofthe revenue at the time the revenue is provided.Specific income/expense, comprises the following items, where material:Voluntary departure packagesWrite-down of inventoriesNon-current asset revaluation increments/decrementsDiminution in investmentsRestructuring of operations (disaggregation/aggregation of health services)Litigation settlementsNon-current assets lost or foundForgiveness of loansReversals of provisionsVoluntary changes in accounting policies (which are not required by an accounting standard or other authoritative pronouncement of the AustralianAccounting Standards Board)Impairment of non-current assets, includes all impairment losses (and reversal of previous impairment losses), related to non current assets only whichhave been recognised in accordance with note 1(j)Depreciation and amortisation, as described in note 1(i) and (s)Expenditure using capital purpose income, which comprises expenditure using capital purpose income which falls below the asset capitalisationthreshold and therefore does not result in the recognition of an asset in the balance sheet. The asset capitalisation threshold is set at $1000(2005:$1000).55

FinanceFinanceNotes to and forming part of the Financial Statements for the year ended 30 June 2006 Notes to and forming part of the Financial Statements for the year ended 30 June 2006Note 2: RevenueRevenue from Operating ActivitiesRecurrentGovernment Contributions• Department of Human Services 19,119 18,422 - - 19,119 18,422• Dental Health Services Victoria 469 475 - - 469 475Indirect Contributions by Human Services• Long Service Leave 28 364 - - 28 364• Insurance 532 455 - - 532 455Patient and Resident Fees (refer Note 2c) 4,505 4,290 - - 4,505 4,290Other Revenue 926 1,035 - - 926 1,035Net Gain/Loss on Disposal of Non-Current Assets (refer Note 2d) - - 2 - 2 -Sub-Total Revenue from Operating Activities 25,579 25,041 2 - 25,581 25,041Revenue from Non-Operating ActivitiesDonations and Bequests - - 331 420 331 420Property Income - - 85 93 85 93Sub-Total Revenue from Non-Operating Activities - - 416 513 416 513Revenue from Capital Purpose IncomeState Government Capital Grants 8,501 1,322 - - 8,501 1,322Sub-Total Revenue from Capital Purpose Income 8,501 1,322 - - 8,501 1,322Total Revenue from Continuing Operations 34,080 26,363 418 513 34,498 26,876Indirect contributions by Human ServicesH.S.A.2006$’000H.S.A.2005$’000NonH.S.A.2006$’000NonH.S.A.2005$’000Department of Human Services makes certain payments on behalf of the Service. These amounts have been brought to account indetermining the operating result for the year by recording them as revenue and expenses.Total2006$’000Total2005$’000Colac Area Health Annual Report 200656 57Note 2a: Analysis of Revenue by SourceTotalTotalOtherOtherPrimaryHealth2005$’000PrimaryHealth2006$’000AgedCare2005$’000AgedCare2006$’000RACRAC2005$’0002006$’0002005$’0002006$’0002005$’0002006$’000AcuteHealth2005$’000AcuteHealth2006$’000Revenue from Services Supported by HealthServices AgreementGovernment Grants• Department of Human Services 13,742 13,132 1,661 1,671 664 630 3,052 2,989 - - 19,119 18,422• Dental Health Services Victoria - - - - - - 469 475 - - 469 475Indirect Contributions by Dept. of Human Services• Long Service Leave 20 218 8 108 - 2 - 36 - - 28 364• Insurance 378 310 46 90 23 6 85 49 - - 532 455Patient and Resident Fees (refer Note 2d) 762 847 3,637 3,362 - - 106 81 - - 4,505 4,290Capital Purpose Income - - 8,501 1,322 - - - - - - 8,501 1,322Interest 32 40 4 5 - - 9 12 - - 45 57Other Revenue 668 769 - - - - 213 209 - - 881 978Net Gain/(Loss) on Disposal of Non-Current Assets - - - - - - - - 2 - 2 -(refer Note 2d)Sub-Total Revenue from Services Supported by 15,602 15,316 13,857 6,558 687 638 3,934 3,851 2 - 34,082 26,363Health Services AgreementRevenue from Services Supported by Hospitaland Community InitiativesDonations and Bequests - - - - - - - - 331 420 331 420Property Income - - - - - - - - 85 93 85 93Sub-Total Revenue from Services Supported by - - - - - - - - 416 513 416 513Hospital and Community InitiativesTotal Revenue from Operations 15,602 15,316 13,857 6,558 687 638 3,934 3,851 418 513 34,498 26,876

FinanceFinanceNotes to and forming part of the Financial Statements for the year ended 30 June 2006 Notes to and forming part of the Financial Statements for the year ended 30 June 2006Note 2b: Analysis of Expenses by SourceTotalTotalOtherOtherRACRAC2005$’0002006$’0002005$’0002006$’000PrimaryHealth2005$’000PrimaryHealth2006$’000AgedCare2005$’000AgedCare2006$’0002005$’0002006$’000AcuteHealth2005$’000AcuteHealth2006$’000Services Supported byHealth Services AgreementEmployee Benefits- Salaries and Wages 9,044 8,878 3,784 3,643 527 418 2,677 2,335 - - 16,032 15,274- WorkCover 216 200 92 87 13 17 64 50 - - 385 354- Long Service Leave 256 173 82 90 18 19 30 51 - - 386 333- Superannuation (refer Note 16) 974 1,046 351 368 70 67 227 188 - - 1,622 1,669Non Salary Labour Costs- Fee for Service Medical Officers 1,817 1,628 - - - - - - - - 1,817 1,628Supplies and Consumables- Pharmaceutical Supplies 406 418 15 10 16 13 10 6 - - 447 447- Medical and Surgical Supplies 1,416 875 114 107 26 24 183 211 - - 1,739 1,217- Pathology Supplies 143 166 - - - - - - - - 143 166- Food Supplies 246 234 323 318 1 1 25 14 - - 595 567Other Expenses- Domestic Services 313 311 106 102 1 1 20 20 - - 440 434- Administrative Expenses 415 604 259 223 7 33 665 628 - - 1,346 1,488- Motor Vehicle Expenses 48 45 - - 15 13 42 36 - - 105 94- Repairs and Maintenance 256 269 90 76 - 3 38 38 - - 384 386- Patient Transport 99 53 - - - - - - - - 99 53- Insurance costs funded by DHS 282 228 128 115 5 2 117 110 - - 532 455- Corporate Costs - Leave Liabilities 20 182 8 102 - - - 80 - - 28 364- Fuel, Light, Power and Water 213 210 83 83 7 7 15 10 - - 318 310Sub-Total Expenses from Services Supported by Health 16,164 15,520 5,435 5,324 706 618 4,113 3,777 - - 26,418 25,239Services AgreementServices Supported by Hospital and CommunityInitiativesRepairs and Maintenance - - - - - - - - 213 255 213 255Sub-Total Expenses from Services Supported by - - - - - - - - 213 255 213 255Hospital and Community InitiativesDepreciation (refer Note 3) 677 775 270 293 27 - 261 186 - - 1,235 1,254Audit Fees 7 6 3 3 - - 2 2 - - 12 11Net Loss on Sale of Assets Sold (refer Note 2d) - - - - - - - - - 22 - 22Total Expenses from Continuing Operations 16,848 16,301 5,708 5,620 733 618 4,376 3,965 213 277 27,878 26,781Note 2c: Patient and Resident FeesPatient and Resident Fees RaisedRecurrent:Acute• Inpatients 630 723• Outpatients 132 120Residential Aged Care• Nursing Homes 3,486 3,246Primary Health Care• Community Rehabilitation Centre 8 4• Primary Care 62 42• Dental 36 39Total Recurrent 4,354 4,174Capital PurposeResidential Accommodation Payments 151 116Total Capital 151 116Total Patient Fees 4,505 4,290Note 2d: Net Gain/(Loss) on Disposal ofNon-Current AssetsProceeds from Disposal-Motor Vehicles 65 184Proceeds from Disposal-Land and Buildings - 300Proceeds from Disposal-Plant and Equipment - 2Total Proceeds from the Sale of Non-Current Assets 65 486Less Written Down Value of Assets Sold-Motor Vehicles (63) (167)Total Written Down Value of Non-Current Assets Sold (63) (508)Net Gains/(Losses) on Disposal of Non-Current Assets 2 (22)Note 3: DepreciationTotal2006$’000Total2006$’000Total2006$’000Total2005$’000Total2005$’000Total2005$’000Buildings 659 629Plant and Equipment 576 625Total 1,235 1,25458 Colac Area Health Annual Report 200659

FinanceFinanceNotes to and forming part of the Financial Statements for the year ended 30 June 2006 Notes to and forming part of the Financial Statements for the year ended 30 June 2006Note 4: Cash and Cash EquivalentsFor the purpose of the Cash Flow Statement, the Service considers cash to include cashon hand and in banks, and short-term deposits which are readily convertible to cash onhand, and are subject to an insignificant risk of change of value, net of outstanding bank overdrafts.CASH ASSETSCash on Hand 1 1Cash at Bank 1,484 473Deposits at Call - 78Total 1,485 552Represented by:Cash for Health Service Operations (as per Cash Flow Statement) 1,485 552Note 5: ReceivablesCurrentPatient Fees 232 260Trade Debtors 584 537Total 816 797Less Provision for Doubtful DebtsPatient Fees 17 21Total Current Receivables 799 776Non-CurrentDepartment of Human Services - Long Service Leave 677 1,482Total Non-Current Receivables 677 1,482Total 1,476 2,258Total2006$’000Total2006$’000Total2005$’000Total2005$’000Note 6: Other Financial AssetsOperatingFund$’000Total2006$’000CurrentMonies Held in Trust (refer Note 7) 162 162 136Note 7: Monies Held in TrustNote 8: InventoryTotal2005$’000Represented by:Total2006Total2005CurrentTerm Deposits and Cash at Bank$’000162$’000136Total 162 136Total Total2006 2005CurrentPolwarth House Trust Account$’00098$’00077Salary Packaging Account 64 59Total 162 136Represented byCash Assets 162 136Total 162 136Total Total2006 2005CurrentPharmaceuticals$’00052$’00046Catering Supplies 11 8Housekeeping Supplies 12 14Medical and Surgical Lines 83 60Engineering Stores 1 1Administration Stores 8 8Total 167 137Note 9: PayablesTotal Total2006 2005CurrentTrade Creditors$’000865$’000891GST Payable 495 396Total 1,360 1,28760Colac Area Health Annual Report 200661

FinanceFinanceNotes to and forming part of the Financial Statements for the year ended 30 June 2006 Notes to and forming part of the Financial Statements for the year ended 30 June 2006Note 10: ProvisionsCurrentEmployee Benefits (refer Note 10a) 3,366 3,291Provision for Re-instatement 124 -Total 3,490 3,291Non-CurrentEmployee Benefits (refer Note 10a) 1,785 1,770Total 1,785 1,770Note 10a: Employee BenefitsCurrent (Refer Note 10)Long Service Leave– Short term benefits at nominal value 1,007 998– Long term benefits at present value 365 360Total 1,372 1,358Annual Leave at nominal value 1,459 1,422Accrued Wages and Salaries 506 481Accrued Days Off 29 30Total 3,366 3,291Non-CurrentLong Service Leave 1,785 1,770Total 1,785 1,770Movement in Long Service LeaveBalance 1 July 2005 3,128 2,764Provision made during the year 415 691Settlement made during the year (386) (327)Balance at 30 June 2006 3,157 3,128Note 11: Lease LiabilitiesTotal2006$’000Total2006$’000Total2005$’000Total2005$’000Total TotalAggregate Lease Expenditure contracted for at Balance DateOperating LeaseNot later than One Year2006$’000242005$’000139Later than One but not later than Five Years 120 87Total 144 226Note 12: Property, Plant and EquipmentAt CostBuildings - 110Buildings under Construction 8,832 1,7678,832 1,877Motor Vehicles 729 725Less Accumulated Depreciation 239 132490 593Plant and Equipment 5,840 5,209Less Accumulated Depreciation 3,034 2,4442,806 2,765Total 12,128 5,235At ValuationCrown Land 2,210 1,654Freehold Land 955 910Buildings 28,288 22,409Less Accumulated Depreciation 5,293 4,63622,995 17,773Total 26,160 20,337Total Property, Plant and Equipment 38,288 25,572A formal valuation of Land and Buildings was completed at 30 June 2006 by Landlink Property Group. The basis of the valuation for Buildings is depreciatedreplacement cost whilst the basis of valuation for Land is Surrounding Property Values. Reconciliation of the carrying amounts of each class of land, buildings,plant and equipment and motor vehicles at the beginning and end of the current and previous financial year are set out as follows:2006CrownLand$’000FreeholdLand$’000BuildingsPlant andEquipment$’000Total2006$’000MotorVehicles$’000Total2005$’000Balance at 1 July 2005 1,654 910 19,650 2,765 593 25,572Additions - - 7,834 471 109 8,414Disposals - - - - 65 65Depreciation expense (Note 3) - - 658 430 147 1,235Revaluation increment 556 45 5,001 - - 5,602Balance at 30 June 2006 2,210 955 31,827 2,806 490 38,288$’000Total$’000Leasing of computer equipment commenced in 2003. Lease period is for three years with lease payments paid quarterly in advance.At the end of the leases, there is an option to purchase the equipment at an agreed residual value. There are no financial restrictions or contingent rentalpayments incorporated into the lease agreements by the lessor. The interest rates were fixed at the commencement of the leases at the current market rates.Colac Area Health Annual Report 200662 63

FinanceFinanceNotes to and forming part of the Financial Statements for the year ended 30 June 2006 Notes to and forming part of the Financial Statements for the year ended 30 June 2006Crown Freehold Buildings Plant and Motor TotalLand LandEquipment Vehicles$’000 $’000 $’000 $’000 $’000 $’0002005Balance at 1 July 2004 1,654 910 18,961 2,536 500 24,561Additions - - 1,833 597 393 2,823Disposals - - 341 - 167 508Depreciation expense (Note 3) - - 629 492 133 1,254Joint Venture Consolidations - - (174) 124 - (50)Balance at 30 June 2005 1,654 910 19,650 2,765 593 25,572Note 13: Equity and Reserves(a) ReservesTotal Total2006 2005Asset Revaluation Reserve$’000 $’000LandBalance at the beginning of the reporting period 1,109 1,109Revaluation Increment 601 -Balance at the end of reporting period 1,710 1,109BuildingsBalance at the beginning of the reporting period 1,134 1,134Revaluation Increment 5,001 -Balance at the end of the reporting period 6,135 1,134Total Asset Revaluation Reserve 7,845 2,243General Purpose ReserveBalance at the beginning of the reporting period 54 50Transfers to and from General Reserve (54) 4Balance at the end of the reporting period - 54Total Reserves 7,845 2,297(b) Contributed CapitalBalance at the beginning of the reporting period 12,938 12,938Capital Contribution received from Victorian Government 350 -Balance at the end of the reporting period 13,288 12,938(c) Accumulated SurplusesBalance at the beginning of the reporting period 7,219 6,968Net Result for the Year 6,620 95Transfers to and from General Reserve 54 (4)Adjustments resulting from investment in Joint Venture using equity Method - 160Balance at the end of the reporting period 13,893 7,219(d) EquityTotal Equity at the beginning of the reporting period 22,454 22,199Total Changes in Equity Recognised in the Statement of Revenue and Expense 12,222 255Transactions with State Government 350 -Total Equity at reporting date 35,026 22,454Note 14: Reconciliation of Net Result for the year to Net CashFlows from/(used in) Operating ActivitiesTotal2006$’000Total2005$’000Net Result for the Year 6,621 95Non-Cash MovementDepreciation 1,235 1,254Contribution Joint Venture (SWARH) 283 -Contribution of Non-Current Asset 124 -Net Gain/(Loss) from Sale of Plant and Equipment 2 (22)Provision for Doubtful Debts (4) -Change in Operating Assets and LiabilitiesIncrease/(Decrease) in Payables 108 (629)Increase/(Decrease) in Employee Benefits 89 381Decrease/(Increase) in Inventory (30) (4)Decrease/(Increase) in Receivables 782 (502)Decrease/(Increase) in Prepayments - 27Net Cash Inflow/(Outflow) from Operating Activities 9,210 600Note 15: Contingent Liabilities/AssetsA contingent liability exists in relation to payments for Visiting Medical Officer superannuation contributions. Should the Court determine this to be a financialliability the estimated cost to the Service is $1,079,900. A contingent asset exists in respect to a Bequest from an Estate in which Colac Area Health has beennamed as a residual beneficiary. Colac Area Health is receiving income from the Estate and fifty percent of the capital of the Estate is receivable on the death oflife tenants.Colac Area Health Annual Report 200664 65

FinanceFinanceNotes to and forming part of the Financial Statements for the year ended 30 June 2006 Notes to and forming part of the Financial Statements for the year ended 30 June 2006Note 16: SuperannuationSuperannuation contributions for the reporting period are included as part of salaries and associated costs in the Operating Statement of the Service.The names and details of the major employee superannuation funds and contributions made by the Service are as follows:Contribution for the YearTotal Total2006 2005FundHealth Super Fund$’0001,554$’0001,657Guildsuper - 5Hesta Super Fund 68 7Total 1,622 1,669Contribution Outstanding at Year EndTotal Total2006 2005FundHealth Super Fund$’00076$’00083Hesta Super Fund 2 1Total 78 84The basis for contributions are determined by the various schemes. The unfunded superannuation liability in respect to members of State SuperannuationSchemes and Health Super Scheme is not recognised in the Balance Sheet. Colac Area Health’s total unfunded superannuation liability in relation to thesefunds has been assumed by and is reflected in the financial statements of the Department of Treasury and Finance.The above amounts were measured as at 30 June of each year, or in the case of employer contributions they relate to the years ended 30 June.All employees of the Agency are entitled to benefits on retirement, disability or death from the Government Employees Super Fund. This Fund providesdefined lump sum benefits based on years of service and annual average salary.Note 17: Responsible Persons Related Disclosures(b) Remuneration of Responsible PersonsThe number of Responsible Persons are shown in their relevant bands:Income Band2006 2005$0-$9,999 11 11$140,000-$149,999 - 1$150,000-$159,999 1 -Total Numbers 12 12Total Remuneration received or due and receivable by ResponsiblePersons from the reporting entity amounted to: $156,500 $146,250(c) Retirement Benefits of Responsible PersonsNo retirement benefits were paid or payable to Responsible Persons.(d) Other Transactions of Responsible Persons and their Related PartiesOther Responsible Persons transactions requiring disclosure under the Directions of the Minister for Finance have beenexamined and are as follows:Ms. D. Loubey was an Executive Officer of a Group Practice which provided medical services to the Service to thevalue of $446,505. These services were provided within a normal supplier relationship and are at arms length.Mr. W.G. O’Brien was a Director of a Company which provided accounting services to the Service to the value of $341.These services were provided within a normal supplier relationship and are at arms length.(e) Executive Officers RemunerationThe number of Executive Officers, other than the Ministers and Accountable Officers, and their total remuneration duringthe reporting period are shown as follows in their relevant income bands.Income BandTotal RemunerationBase Remuneration2006 2005 2006 2005No. No. No. No.$100,000-$109,999 - - - -$110,000-$119,999 1 - 1 -a) Responsible Persons1 - 1 -Minister for HealthHon. Bronwyn Pike MLAMinister for HealthDirectorsMr. A.F. Baldwin Mr. A.E. Graham Mr. G.A. JohnstoneMrs. D.E. Loubey (to 31/10/2005) Ms. K. McBride Mrs. A. McDonaldMr. W.D. McKean (to 31/10/2005) Mr. W.G. O’Brien Mr. R.V. RiordanMr. W.J. Ryan (from 01/11/2005)Accountable OfficerMs. J. Ross - Chief ExecutiveColac Area Health Annual Report 200666 67

FinanceFinanceNotes to and forming part of the Financial Statements for the year ended 30 June 2006 Notes to and forming part of the Financial Statements for the year ended 30 June 2006Note 18: SWARH Joint VentureColac Area Health has a joint venture interest in the South West Alliance of Rural Health (SWARH) whose principal activity is theimplementing and processing of an information technology system and an associated telecommunications service suitable for use by eachmember of SWARH.Colac Area Health share of assets, liabilities and operating result is:Total2006Total2005$’000 $’000Current Assets 74 135Non-Current Assets 258 211Share of Total Assets 332 346Interest rate exposure as at 30 June 2005Fixed Interest Rate Maturing in:FloatingInterestRate$’0001 Yearor LessNon-InterestBearing$’000Financial AssetsCash Assets 474 78 - 552Receivables - - 2,258 2,258Other Financial Assets - - 136 136Total Financial Assets 474 78 2,394 2,946$’000Total2005$’000Current Liabilities 87 63Share of Total Liabilities 87 63Net Share of Joint Venture Assets 245 283Share of Current Year Profit/(Loss) (38) (35)Capital Commitments 61 -Note 19: Financial Instruments(a) Interest Rate RiskThe Service’s exposure to interest rate risk and the effective weighted average interest rate by maturity periods is set out belowin the following timetable. For interest rates applicable to each class of asset or liability refer to individual notes to the FinancialStatements. Exposure arises predominately from assets and liabilities bearing variable interest rates.Interest rate exposure as at 30 June 2006Financial AssetsFixed Interest Rate Maturing in:Cash Assets 1,485 - - 1,485Receivables - - 1,476 1,476Other Financial Assets - - 162 162Total Financial Assets 1,485 - 1,638 3,123Financial LiabilitiesFloatingInterestRate$’0001 Yearor LessNon-InterestBearing$’000Payables - - 1,360 1,360Monies Held in Trust - - 162 162Total Financial Liabilities - - 1,522 1,522Net Financial Assets 1,485 - 116 1,601$’000Total2006$’000Financial LiabilitiesPayables - - 1,287 1,287Monies Held in Trust - - 136 136Total Financial Liabilities - - 1,423 1,423Net Financial Assets 474 78 971 1,523Weighted Average Intereste Rate-Financial Assets 5.00% 5.20%(b) Credit Risk ExposuresCredit risk represents the loss that would be recognised if counterparts fail to meet their obligations under the respectivecontracts at maturity. The credit risk on financial assets of the Service have been recognised in the Statement of FinancialPosition as the carrying amount, net of any provision for doubtful debts. The Service minimises concentrations of credit risk byundertaking transactions with unrelated debtors. The Service is not materially exposed to any individual debtor.(c) Net Fair Value of Financial Assets and LiabilitiesThe carrying amount of financial assets and liabilities contained within these financial statements is representative of the net fairvalue of each financial asset or liability.Net Fair ValueBookValue2006$’000Net FairValue2006$’000BookValue2005$’000Net FairValue2005$’000Financial AssetsCash Assets 1,485 1,485 552 552Receivables 1,476 1,476 2,258 2,258Other Financial Assets 162 162 136 136Total Financial Assets 3,123 3,123 2,946 2,946Financial LiabilitiesPayables 1,360 1,360 1,287 1,287Monies Held in Trust 162 162 136 136Total Financial Liabilities 1,522 1,522 1,423 1,423Weighted Average Interest Rate-Financial Assets 5.00%68 Colac Area Health Annual Report 200669

FinanceFinanceNotes to and forming part of the Financial Statements for the year ended 30 June 2006 Notes to and forming part of the Financial Statements for the year ended 30 June 2006Note 20: Remuneration of AuditorsAudit Fees paid or payable to the Victorian Auditor-General’s Office foraudit of the Service’s Financial ReportPaid as at 30 June 4 2Payable as at 30 June 8 11Note 21: Capital CommitmentThe Board of Directors of the Service have agreed to a $14,000,000 redevelopment of the aged care facilities.The redevelopment commenced in April 2005 and is expected to be completed in July 2006.As at 30 June 2006 the balance due on the contract was $2,403,407.Total2006$’000Total2005$’000Note 22: Segment ReportingHospital2006$’000Hospital2005$’000RACS2006$’000REVENUEExternal Segment Revenue 15,602 15,316 5,356 5,236 3,934 3,851 9,606 2,473 34,498 26,876Total Revenue 15,602 15,316 5,356 5,236 3,934 3,851 9.606 2,473 34,498 26,876RESULTSegment Result (1,240) (990) (356) (389) (451) (126) 8,660 1,578 6,613 73Net Result from Ordinary (1,240) (990) (356) (389) (451) (126) 8,660 1,578 6,613 73ActivitiesRACS2005$’000PrimaryCare2006$’000PrimaryCare2005$’000Other2006$’000Other2005$’000Total2006$’000Total2005$’000Interest Income 32 40 4 5 9 12 - - 45 57Share of Net Result of JointVenture using the Equity Model (38) (35) - - - - - - (38) (35)Net Result for Year (1,246) (985) (352) (384) (442) (114) 8,660 1,578 6,620 95OTHER INFORMATIONSegment Assets 20,645 19,614 15,215 3,999 5,876 5,210 87 115 41,823 28,938Total Assets 20,645 19,614 15,215 3,999 5,876 5,210 87 115 41,823 28,938Segment Liabilities 4,462 4,281 1,306 1,292 860 774 169 137 6,797 6,484Total Liabilities 4,462 4,281 1,306 1,292 860 774 169 137 6,797 6,484Investments in associates and jointventure partnership 245 283 - - - - - - 245 283Acquisition of Property, Plant andEquipment 529 1,026 7,496 1,462 389 289 - 46 8,414 2,823Depreciation Expense 677 775 270 293 261 186 27 - 1,235 1,254Non Cash Expense other than 50 227 9 94 6 60 1 11 66 392DepreciationThe major products/services from which the above segments derive revenue are:Business SegmentsHospitalResidential Aged Care Services (RACS)Primary CareOtherServicesAcute HealthAged CarePrimary and Community Care ProgramsHome Nursing and Capital FundraisingGeographical SegmentColac Area Health operates predominantly in the Colac Otway Region of Victoria.More than 90% of revenue, net surplus from ordinary activities and segment assets relate to operations in Colac, Victoria.Colac Area Health Annual Report 200670 71

Finance Notes to and forming part of the Financial Statements for the year ended 30 June 2006 Finance Notes to and forming part of the Financial Statements for the year ended 30 June 2006Note: 23 Impacts of the Adoption of Australian Equivalents to InternationalFinancial Reporting StandardsFollowing the adoption of the Australian equivalents to International Financial Reporting Standards (A-IFRS), Colac AreaHealth has reported for the first time in compliance with A-IFRS for the financial year ended 30 June 2006.Under A-IFRS, there are requirements that apply specifically to not-for-profit entities that are not consistent with IFRSrequirements. Colac Area Health is established to achieve the objectives of Government in providing services free of chargeor at prices significantly below their cost of consumption by the community, which is incompatible with generating profit as aprincipal objective. Consequently, where appropriate, Colac Area Health applies those paragraphs in Accounting Standardsapplicable to not-for-profit entities.Colac Area Health changed its accounting policies, other than its accounting policies for financial instruments on 1 July2004 to comply with A-IFRS. Colac Area Health changed its accounting policy on 1 July 2005 (refer Note 1).The transition to A-IFRS is accounted for in accordance with Accounting Standard AASB 1 First-time adoption ofAustralian Equivalents to International Financial Reporting Standards with 1 July 2004 as the date of transition. Anexplanation of how the transition from superceded policies to A-IFRS has effected Colac Area Health’s financial position,financial performance and cash flows is set out in the following tables and notes that accompany the tables.EFFECT OF A-IFRS ON THE BALANCE SHEET AS AT 30 JUNE 2005ASSETSPREVIOUSAGAAPEffect ofTransitionto A-IFRS$’000A-IFRSCurrent AssetsCash and Cash Equivalents 642 (90) 552Receivables 815 (39) 776Other Financial Assets 136 - 136Inventory 137 - 137Prepayments 6 (6) -Total Current Assets 1,736 (135) 1,601Non-Current AssetsInvestment in Joint Venture using Equity Method - 283 283Receivables 1,482 - 1,482Property, Plant and Equipment 25,622 (50) 25,572Total Non-Current Assets 27,104 233 27,337TOTAL ASSETS 28,840 98 28,938$’000$’000LIABILITIESCurrent LiabilitiesPayables 1,330 (43) 1,287Provisions 2,202 1,089 3,291Other Liabilities 136 - 136Total Current Liabilities 3,668 1,046 4,714Non-Current LiabilitiesProvisions 2,878 (1,108) 1,770Total Non-Current Liabilities 2,878 (1,108) 1,770TOTAL LIABILITIES 6,546 (62) 6,484NET ASSETS 22,294 160 22,454EQUITYAsset Revaluation Reserve 2,243 - 2,243General Reserve 54 - 54Contributed Capital 12,938 - 12,938Accumulated Surplus/(Deficit) 7,059 160 7,219TOTAL EQUITY 22,294 160 22,454Colac Area Health Annual Report 200672 73

Auditor-General’s Report74Colac Area Health Annual Report 2006

Colac Area Health Annual Report 2006Statutory ComplianceLegislative ChangesConsultanciesBased on legislative information received, Colac Area Healthhas complied with all Acts and Regulations. Legal adviceprovided on behalf of Victorian Healthcare Associationindicates that there is no longer a requirement for publichospitals to include a full list of Acts and Regulations in theAnnual Report.National Competition PolicyColac Area Health complied with all government policiesregarding competitive neutrality.There was one consultancies totalling $10,092 undertakenat Colac Area Health during the 2005/06 financial year.Fees and ChargesColac Area Health charges fees in accordance withrelevant Department of Human Services directives.Financial Management ComplianceFramework (FMCF)Compliance With Building ActColac Area Health complies with the Building Act 1994under guidelines for publicly owned buildings issued bythe Minister for Finance 1994 in all redevelopment andmaintenance issues.• Building Inspections Standards Assessment Colac AreaHealth facilities have been the subject of a fire auditby a Fires Services Engineer. The scope of that auditconsiderably exceeds the scope of an inspection by aBuilding Surveyor in line with the Minister for Finance’sGuidelines.• Arrangements Regarding Registered Building Practitioners.The Board of Directors requires all building professionalsengaged on building projects to be registered with theBuilding Practitioners Board or be Registered Architects.• New BuildingsIt is required that a building permit be issued at thecompletion of each building project. That action ensuresthat new buildings and work in existing buildings conformto building standards and that the ten year liability cap isinvoked.During the year, the following works were undertaken toensure comformity with the relevant standards.Building WorksNumberOccupancy Permits Issued -Works in construction and thesubject of mandatory inspection 1MaintenanceNumberNotices issued for rectificationof substituted buildings requiringurgent attention -The Financial Management Compliance Framework(FMCF) was introduced from July 1 2003 and appliesto all Victorian Public Sector (VPS) entities. TheFramework has been established to ensure that all VPSentities have implemented appropriate systems to ensurethat public resources are used in an efficient, effective andresponsible manner.Colac Area Health was largely compliant with theframework when it was released and this opinion wasendorsed via the Internal Audit Program. Work iscontinuing to ensure that full compliance is achievedwithin the specified time frame. Colac Area Healthwill continue to review its performance, policies andprocedures to ensure that the Service is operating in aneffective and responsible manner.Pecuniary InterestMembers of the Board of Directors are required to notifythe President of the Board of any pecuniary interestwhich may give rise to a conflict of interest as definedin accordance with the Directions of the Minister forFinance. All declarations of pecuniary interest have beencompleted and are available on request to the relevantMinister, Member of Parliament and the public.Services Contracted OutThe range of Services contracted out has remainedunchanged during the 2005/06 financial year.SponsorsColac Area Health wishes to acknowledge the support ofthe following organisations for their sponsorship of thisproduction of this Annual Report.The National Bank is the provider offinancial and banking services to ColacArea HealthMr. Rob CornelissenManagerNational Australia BankMurray StreetColac Vic 3250Telephone: (03) 5231 5679BDH Constructions - Building contractor for theResidential Aged Care Redevelopment ProjectMr. Henry BongersDirector110 Main StreetElliminyt Vic 3249Telephone: (03) 5231 5496Silver Thomas Hanley - ProvidingArchitectural services to Colac AreaHealth during the Residential AgedCare Redevelopment ProjectMs. Ajia ThomasDirector3 Glenarm RoadGlen Iris Vic 3146Telephone: (03) 9885 2333Research and PublicationsDr Kerry Peart, University of Ballarat; Ms Wendy James,Wimmera Health Care Group, Horsham; Ms Janice Deocampo,Colac Area Health. Use of Sterile Water Injections to relieve backpain in labour. Birth Issues, Vol 15 No 2, 2006; 15 (1): 18-22.PublicationsAnnual Report 2005Quality of Care Report 2005Community NewsAcknowledgementsEditor:Julie RipponAssisted by: John Scarrott, Gillian NealePhotography: Colac Area Health,South Western Studios, The StandardDeisgn & Production: The StandardThis Annual Report is a public document. It aims to presentthe performance, services and developments of ColacArea Health during the last financial year in an open anduser friendly manner to government and the community.This Report is produced in accordance with LegislativeRequirements set by the Minister for Finance and the criteriaset by the Australasian Reporting Awards (ARA).In addition to the Colac Area Health Annual Report, theQuality of Care Report has been produced as a separatedocument. Copies of both documents can be obtained fromColac Area Health or an electronic copy is available on ourwebsite www.colacareahealth.com.au.76Colac Area Health Annual Report 200677

Colac Area Health2–28 Connor Street, Colac Vic 3250Telephone: 03 5232 5100Facsimile: 03 5232 5199Email: cah@swarh.vic.gov.auWebsite: www.colacareahealth.com.au