2012 Annual Report - Ballarat Health Services

Note 20: Jointly Controlled Operations and Assets
Notes to and forming part of the fi nancial statements for the year ended 30 June 2012.
Ballarat Health Services has an interest in two jointly controlled Operations and Assets. The fi rst jointly controlled Operation being Ballarat - Austin Radiotherapy
Oncology Centre and the second jointly controlled Asset being Grampians Rural Health Alliance. Details of both operations are listed as follows.
Ballarat - Austin Radiotherapy Oncology Centre
The investment was used for the construction of the Radiation Oncology Centre, for which Ballarat Health Service has an entitlement to receive a share of property
rental under a 20 year co-operation agreement to recoup its investment.
No further amounts are receivable other than lease payments in respect of the investment. Ballarat Health Service is required to meet its share of the costs of
maintaining the building over the term of the agreement. Lease payments received are allocated between the repayment of capital and rental income. The allocation of
capital repaid is made so as to amortise the cost of the investment over the 20 year lease term. The carrying amount of the investment is as follows;
Opening Balance 757 805
Repayments (100) (100)
Interest 49 52
Capital Repaid (51) (48)
Closing Balance 706 757
Ownership Interest 47.67% 47.67%
Ballarat Health Services share of entitlement to lease receivables under the terms of the co-operation agreement are as follows;
Less than 1 year 100 100
Greater than 1 and less than 5 years 400 400
Greater than 5 years 206 257
Grampians Rural Health Alliance
2012
$000
2012
$000
2011
$000
2011
$000
706 757
In June 2008, the Department of Health issued circular number 17/2008, which outlines government requirements for the operation of rural health information and
communication technology (ICT) alliances. The policy outlines the accepted governance model for the operation of the ICT alliances.
The policy requires public hospitals, public health services and multipurpose services which are declared or established under the Health Services Act 1988, to enter into
the alliance for the region in which they operate, in accordance with a Joint Venture Agreement (JVA). Consistent with this policy, the Grampians Rural Health Alliance
came into effect on 9th of December 2008.
Revenue 969 803
Expenses (1,033) (1,024)
Net Result (64) (221)
Assets 585 686
Liabilities 168 205
Net Assets 417 481
Equity 417 481
Ownership Interest 22.24% 23.85%
2012
$000
2011
$000
www.bhs.org.au 69