2001-02 Annual Report - Sydney Local Health District - NSW ...

South Western Sydney Area Health Service Annual Report 2001/2002Financial OverviewEXECUTIVE SUMMARYThe South Western Sydney Area Health Service received its Budget Allocation for the 2001/02financial year on 31 August 2001. The allocation letter also provided advice on budgets (includinggrowth funding) up to 2002/03, such forward notice enabling the Service to better plan itsservice delivery.The agreed 2001/02 Net Cost of Services budget for the Health Service was $641.037millionagainst which the audited actuals of $636.58 million represented a favourable variation of$4.457 million or 0.7%.The reported variation can be attributed to:· Growth in revenue generated by patients’ fees and research grants.· Underexpenditure on new services occasioned by recruitment delays for clinical staff due tonational shortage in some specialities.In achieving the above result, the Health Service is satisfied that it has operated within theadvised level of Government Cash Payments and restricted operating costs to the budgetavailable. Further, it has ensured that no general creditors over 45 days exist at the end of anymonth and has effected all loan repayments within the time frames agreed.SIGNIFICANTBUDGETINCREASES2002001/02Some of the major increases in budget allocations that occurred during 2001/02 are as follows:Use of General Growth enhancements for services such as:· ambulatory care (paediatric and adult), diabetes, family care,· emergency, rehabilitation and extended care· acute inpatient including medical oncology, cardiology, renal, respiratory, gastroenterology andneurology· mental health and drug and alcohol.· During the year award increases of 3% occurred, thereby increasing salary costs by $ 11.6million.Program Reporting:The accounts record revenue and expenses by Health Program. With the exception of AboriginalHealth, programs show evidence of increased investment in health services. The Aboriginal HealthProgram 1.2 now records the specific inputs to Aboriginal Health initiatives.DIRECTIONSIN FINANCINGAs part of the initiatives detailed in the Health Council Report, Episodic Funding has beenintroduced as a means of distributing funds to hospitals for some acute services, EmergencyDepartments and Intensive Care Units. These services will be increasingly funded in accordancewith planned activities as opposed to the traditional method of providing budgets based on prior27