Annual

2012-2013 ReportBetter health in our community

MonashHealth + Hospitals MELBOURNE CBD Greater Dandenong Community Health Service Cardinia Casey Community Health Service

Monash Monash Medical Centre Medical Centre Clayton Moorabbin Our care at a glance

Springvale Kingston Cockatoo Centre Dandenong Hospital Dandenong Doveton

Berwick

Casey Hospital

Pakenham

Cranbourne

Cranbourne Integrated Care Centre

About Our us vision Monash Health is proud to provide Better health in our community integrated health care to one quarter of Melbourne’s population. We uniquely provide health care across Our the entire life-span – from newborns purpose and children, to adults, the elderly, their To plan and deliver quality, patient families and carers. centred health care and services, We improve the health of our community education and research that meets the through: needs of our community. • Prevention • Early intervention • Community based treatment and rehabilitation Our • Highly specialised surgical and medical values diagnosis, treatment and monitoring We remain firmly committed to our services iCare values of: • Hospital and community based mental Integrity health services Compassion • Comprehensive sub-acute and aged care iCare Accountability programs Respect • Palliative care Excellence • Research • Education

2 Monash Health Annual Report 2012-2013 2012-2013 Our care at a glance

2.44 million episodes 986,000 occasions Total episodes of care Outpatient services more than 2.44 million episodes of more than 986,000 occasions of service care provided across our services to the provided by our outpatient clinics. community. 193,000 people 9,000 babies Hospital admissions Births more than 193,000 people admitted to more than 9,000 babies delivered. our hospitals. 180,000 people 29,000 children Emergency presentations Paediatric admissions more than 180,000 people came to more than 29,000 admissions of children our three Emergency Departments for under age 19 to our children’s wards and treatment. neonatal units.

46,000 arrivals 235,000 contacts Ambulance arrivals Mental health more than 46,000 ambulance arrivals more than 235,000 client contacts. handled by our Emergency Departments. 39,000 operations 185,000 hours Surgical operations Community health services more than 39,000 operations performed. more than 185,000 hours of direct primary care and home and community care services provided in our community.

Monash Health Annual Report 2012-2013 3 Chair of the Board and Chief Executive Report of

Contents

2 About Monash Health Operations 3 2012-2013 at a glance

5 Report of the Chair of the Board and Chief Executive and achievements against Strategic Goals

16 Our sites, services and staff 23 Governance 24 Our Board of Directors 28 Organisational structure 30 Statutory compliance 31 Disclosure index 32 Attestations 34 Key financial and service performance reporting

39 Summary of financial results 41 Financial summary 42 Financial statements and explanatory notes

43 Declaration 44 Independent Auditor’s Report Report of the Chair of the Board and Chief Executive In accordance with the Financial Management Act 1994, we are pleased to present the Report of Operations for Monash Health for the year ending 30 June 2012.

The many achievements presented Our Means priority and the strong wide priority has continued to result in this report reflect the teamwork engagement and leadership of our in improvements in patient flow and and dedication of our wonderful staff. patient care. staff. In May 2013, we renamed our During the last year we have also 2012-2013 has been an exciting organisation Monash Health. invested considerable time in the year across the organisation This new name gives appropriate development of our new Strategic as together we have continued recognition of our role in the Plan for 2013-2018 including to deliver the highest quality delivery of high-quality health a comprehensive consultation healthcare for the people in services, research and clinical process with staff, patients and our Melbourne’s south-east and education. partners. beyond. The new name also builds on The result is four new key priorities We are delighted to report that several of our recognisable brands for Monash Health which will help Monash Health has exceeded including Monash Children’s, us provide exceptional care for our budget by $0.6million in 2012- MonashHeart, Monash Cancer patients; patients first, innovation, 2013 with an operating surplus of Centre, Monash Health Foundation partnerships and sustainability. $1.1million - the first time in seven and Monash Doctors. years. This is the final year of the 2010- During the past 12 months we 2013 Strategic Plan and we are This has allowed us to invest in have seen an increase in demand very proud to highlight some of our equipment, projects and capital for services in our Emergency many achievements against our works that will ensure we are a Departments and demand in other five Strategic Goals: sustainable organisation into the areas including outpatients and future. mental health has also increased. This significant achievement has We have also continued our focus been made possible through our on delivering outstanding patient organisation wide Living Within centred care. This organisation

“A heartfelt thank you to each and every individual who has played a part in providing care for our community in 2012-2013. ”

Monash Health Annual Report 2012-2013 5 Report of the Chair of the Board and Chief Executive

• The Patient Centred Care staff At Casey Hospital our clinical Strategic Goal 1: training module, commissioned leadership team has also Safe and effective patient by the Patient Centred Care conducted in-depth planning to centred care Steering Committee, has been improve models of care for our • The Intensive Care Unit (ICU) at designed in response to a request emergency patients. Monash Medical Centre Clayton to create a shared understanding is conducting a world-first trial across Monash Health of how to These changes in our models of of innovative software that runs put the patient and their family care will ensure our patients have within a patient monitor to turn at the centre of our thinking. In access to even better emergency raw patient data into a course of addition to designing this two- care and we anticipate significant care. This will allow the users hour program, a series of one- improvement in our NEAT targets to have access to therapeutic day Train the Trainer programs over the coming year. guidance rather than just raw has been delivered to nominated data which will lead to improved employees from across the • Patient journey boards have patient outcomes. The software organisation. been installed on a number is the result of pioneering work of wards at Monash Medical by Associate Professor Geoffrey • MonashHeart performed the Centre Clayton and Dandenong Parkin and his ICU colleagues. world first-in-man new ‘Lotus’ Hospital. The boards are a visual The decision support device is heart valve procedure, which tool used to assist with improved a standalone touchscreen that allows cardiologists to insert a communication on the wards communicates with the bedside replacement aortic heart valve and serve to enhance patient monitor. without the need for open heart outcomes and flow. surgery. This new technology • Our Central Production is for elderly patients suffering The boards are consistent across Kitchen won the 2012 Aged from severe life-threatening all wards and sites to assist non- Care Hospitality Award for aortic stenosis, or a narrowing ward based and rotating staff. Catering Innovation of the of their aortic heart valve, where Many units are also holding their Year. The Awards recognise a replacement ‘Lotus valve’ was multidisciplinary team meetings the contributions of hospitality inserted on the end of a wire at the board enabling team staff and outstanding catering through a small puncture in the communication and plans to be units in aged care facilities. Our groin. The first five cases were documented in a central location submission was for the provision performed by MonashHeart and and updated daily. of the multicultural/vegan/gluten all patients have experienced free meals that are provided exceptional outcomes to date. • A new patient menu has been at Monash Health sites as well introduced at Monash Children’s as a number of other external • Our commitment to safe and Hospital which comprises six providers. effective patient centred care dishes free from the nine major has seen the introduction of a food allergens. These dishes are • Our clinical stroke team has number of initiatives across our available at each of our Monash developed an innovative model three Emergency Departments Children’s sites and provides of care for transient ischaemic (Monash Medical Centre Clayton, parents of children with food attack (TIA) patients which is Dandenong Hospital and Casey allergies the confidence that we a first in Australia. Traditional Hospital), wards and access can provide appropriate meals for care has meant a median stay teams. their child. of four days following admission, conducting investigations and These initiatives are providing • Under the direction of Professor commencing treatment before better care for our emergency Tim Buckenham, Consultant discharge. However the new department patients as well Vascular and Interventional outpatient model of care and has as leading to favourable Radiologist, our new Endovenous a median stay of only two days. achievements toward the National laser therapy clinic offers The new model maintains patient Emergency Access Targets minimally invasive treatment for safety while providing more timely (NEAT). The initiatives have been the longest waiting patients on access to care. implemented through our Four the varicose vein waiting list. Hours Will Be Ours priority. • Casey Hospital has continued to This clinic, the first of its kind introduce a range of initiatives to At Dandenong Hospital, in a Victorian public hospital, is improve hospital care for patients strategies to improve patient flow for patients with severe venous with delirium and dementia. have included improved staff disease which often results in a These have included developing identification; increased use of significant reduction in quality of activity boxes, manuals, a the transit lounge; development life due to recurrent ulcers and sensory room and garden. The of a patient bookmark that oedema. Under this treatment support extended to appointing outlines key information; and protocol around 70% of patients a dementia support worker, weekly meetings with medical, with varicose veins are able and expanding the aged care nursing and allied health staff to access this method of care nurse consultant role to include reviewing performance. compared to traditional operating cognition management, and room based procedures. enhanced work with volunteers.

6 Monash Health Annual Report 2012-2013 Report of the Chair of the Board and Chief Executive

• To help combat the national • Information Technology built a reputation for providing problem of malnutrition of investment is continuing to excellent cardiac care and they patients in hospital, our dietetics drive improved patient care and have increased their program and nursing teams commenced productivity as our staff have from two elective cardiac surgical the rollout of the Malnutrition improved access to web based cases to approximately 500 Universal Screening Tool (MUST) services and electronic patient cases per year. across all bed-based services records. Internet speed is now excluding mental health, palliative 20 times faster across all sites; • A physiotherapist-led shoulder care, maternity and paediatrics. WiFi is now available in many clinic has been established to The implementation of nutrition priority clinical areas, and across manage patients who do not need screening has allowed a multi- significant parts of our service; to be seen by an orthopaedic disciplinary team approach while an audit of the PC fleet has surgeon. For those patients who to identification and early seen the replacement of 1,200 meet assessment criteria they are intervention for those patients outdated PCs and mobile devices seen by a physiotherapist which deemed to be at nutritional risk. within clinical areas. significantly reduces waiting times. • The South Eastern Centre • The ‘think before you cannulate’ Against Sexual Assault campaign was launched in June • A $1.1 million catheterisation (SECASA) has created an 2013 to reduce infection rates laboratory upgrade was unveiled application (app) for iPhones, associated with the insertion at Monash Medical Centre iPads and androids which allows of unnecessary peripheral Clayton in September 2012. The people to report sexual assault intravenous catheters (PIVC). laboratory will see more than and harassment anonymously. This quality and safety initiative 1,000 highly specialised and Reporting anonymously can be is being led by the Monash life-saving cardiac procedures a a useful healing strategy and the Emergency Department and year. The types of procedures will process of completing a report infection control team to provide include pacemaker implantation, via an app or website is less better care for our patients. The defibrillator implantation, left intimidating than going to a police campaign has included staff heart catheterisation, coronary station. SECASA will use the data education, equipment changes, angioplasty, and aortic heart to identify trends, unsafe areas Emergency Department screen valve replacement. and patterns of offending which savers, regular monitoring and is then passed onto police on a publishing of unused PIVCs rates, • Our Ambulatory and Community regular basis. doctor and nurse champions and Care services are now known guidelines. as Monash Health Community. • The Monash Health Human The previous title of the program Research Ethics Committees ‘Ambulatory and Community (HRECs) have been ranked as Strategic Goal 2: Care’ was poorly understood Responsive and the top two performing HRECs accessible services both internally and externally to in Victoria allowing patients more the organisation. As part of this timely access to approved trials. • We were absolutely delighted to change, a new ambulatory care HREC A, chaired by Professor receive the confirmed support precinct is being developed in Mel Korman, topped the list and commitment of funding from Dandenong which will consolidate with 89% of all research project the Victorian Government for the services that are currently applications reviewed and new Monash Children’s Hospital delivered from several locations approved within 30 days. HREC to be built onsite at Monash making it easier for patients to B, chaired by Dr Simon Bower, Medical Centre Clayton. access the care they need. came second with an 80% project application process. This dedicated children’s hospital, • We welcomed one of Victoria’s due to commence construction in first Nurse Endoscopist Deanne • Our commitment to food safety 2014, will allow us to build a new Bonney into our Gastroenterology was recognised with the awarding healing environment that meets Department. The program is of the City of Monash Golden the needs of our young patients evaluated locally by the Deakin Plate Award’s highest food safety and their families. We are – Monash Health Nursing assessment rank. The perfect committed to providing the best Research Centre, and will help to 20/20 scorecard was awarded facility possible and have begun address the growing demand for in March 2013 with an overall consulting widely and involving endoscopy services following the excellent grading across the eight young people and their families introduction of the National Bowel food safety categories; receiving, in many levels of decision Cancer Screening Program. storing, processing, displaying, making through planning and into packaging, transporting, health development phases. The new program will provide hygiene and food disposal. improved access to those on the Monash Health has continued to • Our Cardiothoracic Surgical Unit Gastroenterology wait lists by receive a 5-star ranking since the conducted its 10,000th cardiac performing approximately 450 Golden Plate program began in surgical procedure on 1 March colonoscopies over the next year. 2011. 2013 at Monash Medical Centre Clayton. Since the unit began in 1991, the dedicated team have

Monash Health Annual Report 2012-2013 7 Report of the Chair of the Board and Chief Executive

• Two Acute Assessment Units • The Narre Warren Adult support for adults who have opened during the year which are Prevention and Recovery Centre been sexually assaulted and co-located with the Emergency (PARC) and extended PARC have a cognitive impairment and/ Departments (ED) at Dandenong opened in March 2013. The or communication difficulties. Hospital and Monash Medical two 10 bed units provide a step Clients can receive access to Centre Clayton. down - step up service for people communication support, transport experiencing mental health and attendant care/support The units allow patients who issues in the Casey Cardinia workers counselling and meetings require no more than 24-36 population. The extended PARC with police, legal advocates or the hours of in-patient care to allows people who require a Office of Public Prosecutions. have early assessment and longer period of stabilisation treatment outside of the ED. This accommodation and supported Strategic Goal 3: significantly improves patient care. This facility functions in Collaboration and care and also enhances patient operation with Mind Australia engagement flow from the ED which in turn (Mind). improves our National Emergency • We are proud to be a part of the Access Target performance. • A seven-day primary contact newly formed Monash Partners physiotherapy service has been Academic Health Science Centre • Work has continued on Stage 2 established in the Emergency which combines public and of the Dandenong Mental Health Department at Casey Hospital. private health care providers with development which will open in Emergency physiotherapist some of the country’s leading August 2013. The addition of this practitioners assess and biomedical research institutions. state of the art, 120 bed building formulate management plans The Centre has been created will make our Dandenong mental for patients with specific to deliver improved outcomes health service the largest single musculoskeletal disorders. By to benefit people living in service in Victoria. managing a specific cohort of Melbourne’s south and south east patients, the service improves by improving translation research • A $1 million grant has allowed the doctors’ availability for patients findings into clinical practice. Perinatal Mother and Baby Unit of higher acuity and is improving Other member organisations to be upgraded into a modern patient flow through the include Monash University, family friendly facility which is due Emergency Department. Alfred Health, Baker IDI, Burnet to be completed in July 2013. Institute, Cabrini Health, Epworth • South Eastern Centre Against HealthCare and Prince Henry’s • Following patient surveys, the Sexual Assault (SECASA) has Institute. dietetics team, Central Production distributed information packs Kitchen and Monash Medical aimed to educate young people • In November 2012 Monash Centre Moorabbin team have about the dangers of sexting Health, Dandenong and District developed 10 pre-prepared (sending pictures to others of Aborigines Co-operative Limited frozen meals for patients themselves naked, in suggestive and the Department of Health undergoing treatment such as poses or having sex). The signed a Statement of Intent, chemotherapy or dialysis. The sexting information pack was which highlights the commitment meals are produced by the developed following feedback at of all organisations to Close the Central Production Kitchen and primary and secondary SECASA Gap for our Aboriginal community. are available for purchase from school programs and online To further this commitment a vending machine at Moorabbin forum feedback. A grant from Monash Health hosted the official Hospital. the Victoria Law Foundation has signing of the Memorandum of allowed the pack to be produced Understanding in June 2013. • The Dandenong Youth Prevention and distributed to over 2,200 and Recovery Centre (Y-PARC) Victorian schools. The parties have agreed to opened in April 2013. The service document their intent to work offers a youth-focussed response • A new procedure for creating together to evaluate and to the health and mental health written information for patients improve their response to needs of young people aged is ensuring that all patient the health service needs of under 25. The 10 bed Y-PARC information is appropriate for the Aboriginal people attending provides short term residential health literacy levels of our local both the Dandenong and District care for people who no longer community. The procedure details Aborigines Co-operative Limited need hospital treatment, while easy English writing principles, and Monash Health. also providing early intervention guidelines for consumer input and care and an alternative to hospital appropriate design templates. • Our oral health services team admission. The service is a are working closely with City of collaboration between Monash • The Making Rights Reality pilot Greater Dandenong to deliver Health’s Early in Life Mental project is being delivered by the a new initiative to 25 local Health Service (ELMHS), Mind South Eastern Centre Against kindergartens, childcare centres Australia (Mind) and Youth Sexual Assault (SECASA) and family day-care centres. Support and Advocacy Service and Springvale Monash Legal Participating organisations will be (YSAS). Service. The program aims to supported to improve children’s increase access to justice and oral health through a one-hour

8 Monash Health Annual Report 2012-2013 Report of the Chair of the Board and Chief Executive

family information session on Participants had access to meeting review, Patient Centred oral health and hygiene, an health checks and education Care, Quality and Safety, on-site oral screening program tools regarding a range of issues Aboriginal Health, Cultural for children aged three to four including finance, education, Responsiveness, Accreditation years old and the delivery of an employment, housing, family (National Standards) and Capital oral health learning curriculum, issues, and physical activities. Planning and Development. personal development training The day was funded by the and education sessions for staff Grosvenor Trust and the Victorian • We have continued to improve and educators. Women’s Trust. our teaching and training facilities by upgrading our lecture • Planning of the Monash Health • The services provided by our theatre equipment and extending Translation Precinct (MHTP) Asylum Seeker and Refugee our Wi-Fi coverage for staff and Translational Research Facility Health Clinic (AS&RHC) were students in partnership with the has continued for this landmark expanded in partnership with Red Monash University Business development – a partnership of Cross and South East Medicare School. Monash Health, Prince Henry’s Locals to address issues of Institute, Monash Institute of access and equity through • During the past year our Medical Research and Monash responsive person-centred care. Population and Primary Care University. Construction will Committee has had a particular begin in late 2013 and will be • We joined the healthy lifestyle involvement with the three completed by mid-late 2015. team from the Dandenong and Medicare Locals and the refugee District Aborigines Co-Operative and asylum seekers health • Monash Health and the to attend the Yalukit Wilum strategy across the south east of Dandenong and District Ngargee Festival which is the Melbourne. Aborigines Co-Operative held a Wominjeka (Boon Wurrung Back to School Day at Bulla Bulla language for welcome) festival in Cranbourne where 150 young opening the St Kilda Festival’s Strategic Goal 4: Aboriginal community members nine-day program. The Monash Financial accountability gathered for a day promoting Health stall provided healthy good health and educational lifestyle messages with a focus We are immensely proud of messages. on reducing or quitting smoking, achieving our operating surplus of a major issue for the Aboriginal $1.1million. • Following Monash BreastScreen’s community. (MBS) accreditation site visit in Through our Living Within Our October 2012 and months of • During 2012-2013 we continued Means priority we consulted widely preparation, MBS achieved its our relationship with Rotary with staff and actively reviewed four-year accreditation status. Oceania Medical Aid for Children areas of the organisation in which MBS has maintained four-year (ROMAC) to provide life saving we could streamline our operations accreditation status, the highest and dignity restoring surgery and improve efficiencies resulting level achievable, over the 20 for children from developing in increased funds to direct towards years it has operated. countries. patient care. • Monash Health has partnered • The State Minister for Health Some of our achievements include: with the City of Casey, Shire David Davis MP visited the of Cardinia and City of Greater Monash Cancer Centre to • The bed-based interpreter Dandenong to tackle the growing officially launch the ‘Joy of Life’ service has reduced the use problem of family violence and art project, to raise awareness of of contractors by employing to drive change through the breast cancer and assist patients additional staff to improve the Challenge Family Violence with their individual journeys. provision of interpreting services project. Involving more than 100 breast to patients while at the same cancer sufferers, the project time reducing overall costs. The project is funded through the was designed by Breast Screen Additional Mandarin/Cantonese, violence against women and their ambassador and artist Dr Julie Greek, Khmer and Vietnamese children grants program and is Gross McAdam. interpreters have been employed. supported by an intensive social marketing campaign across local • The Community Advisory • A streamlined approach to government. Committee (CAC) and its inventory management where members are involved in a data is uploaded directly to • An Aboriginal Women’s and number of strategic committees, the procurement system has Children’s Health Day was held nationally, State-wide and across now been implemented to all in October 2012. The day saw Monash Health. wards. As part of this initiative, several hundred Aboriginal Monash Health was able to women and children gather The CAC also has a watching reduce its inventory holding by together to join with Monash brief of strategic committees as approximately $4million. Health and a range of service part of regular reporting at each providers to ‘race towards good CAC meeting including: Monash health’. Health Board of Directors

Monash Health Annual Report 2012-2013 9 Report of the Chair of the Board and Chief Executive

• Our subscription to the social It supports changing scope media site LinkedIn is significantly Strategic Goal 5: of practice, health workforce Workforce innovation and improving our recruitment efforts knowledge innovation and reform and the with a targeted approach to implementation of safety and finding employees. The service • Monash Health has been awarded quality initiatives. The Department allows us to directly advertise to the Australian Sonographers of Health will be utilising this appropriately matched LinkedIn Association ‘Employer of the Year’ framework in a partnership professionals. This approach at the 2013 Annual Scientific project to develop a statewide allows us to present our career Meeting of the Australian “Governance Framework for opportunities, employer brand Sonographers Association. Professional Practice in Allied and organisational information Health Practice”. The framework to a broader range of candidates • We proudly opened Australia’s first is also being used as part we would otherwise have been 3D imaging laboratory at Monash of an Allied Health Assistant unable to reach while saving Medical Centre Clayton allowing Competencies Tool Kit and forms recruitment costs. doctors to view much clearer and part of a suite of resources for more detailed picture of organs, public health services across the • A number of major Information skeletal problems and tumors – state. Technology contracts for making it ideal for oncologists, software and hardware have cardiologists, heart specialists • Monash Health was successful been renegotiated resulting in and orthopaedic surgeons. This in obtaining funding for the improved services at significant faster and more accurate imaging implementation of the Aboriginal cost savings. also reduces the waiting times for Nursing and Midwifery Cadetship test results compared to traditional program. Four Aboriginal nursing Our environmental performance CT scan or ultrasound. cadets have been employed as nursing attendants and will act as • A new generator at Cranbourne • Seventy senior leaders came ‘family liaison’ personnel. They Integrated Care Centre ensures together for an all-day Patient will attend ward and allied health our services can continue First Transformation Boot Camp rounds, identify families in need, uninterrupted even during a where participants were presented and then act as an advocate or power failure. This removes the with the findings from a pro-bono liaison between the family and risk of disruption for patients and McKinsey & Company review the relevant nursing and allied staff if the surrounding power into patient flow and resulted health staff. fails, and means dialysis and in valuable contributions to the day surgery can continue without transformational activities currently Under their scope of practice interruption. underway across the organisation. the objective is to familiarise the cadet with the clinical • During 2012, we installed • A new forum called the Clinical environment and personnel, variable speed drives to the Practice Review was launched whilst enhancing and heating and cooling pumps, car by the Monash Innovation and consolidating advocacy and park extraction fan and kitchen Quality team to help clinical staff communication skills. air conditioning fan at Monash improve their practice through Medical Centre Clayton. The reflecting on past cases. Cases • Under the leadership of the Chief new drives have made a that have important organisation Executive a Monash Health significant impact on the running wide outcomes are selected for Young Leaders Council has been costs associated with this the forum, which is facilitated to established supporting emerging equipment which has decreased focus on improving future care. leaders in developing their growth our carbon footprint as well as and leadership capabilities. The creating savings of approximately • Allied Health staff across Monash program is also designed to $184,250 per annum. Health provided supervision provide a dialogue with Monash and support to a record number Health’s senior leadership and to • All capital projects are also of students, recording a 52% encourage innovative thinking. designed and built with a key increase in placement days focus on sustainable practice. over the last year. This was • MonashHeart performed two live Our designs encompass features made possible by the team of cases via satellite to the largest that ensure our developments allied health managers, student cardiology meeting in the Asia provide the best healing coordinators and clinicians who Pacific, CardioVascular TCTAP environments for our patients. have been working together to 2013. Both cases were performed provide support, leadership and simultaneously in two cardiac training to supervisors of all allied catheterisation laboratories to health students. a live audience of over 5,000 cardiologists from Asia Pacific • Allied Health has developed the who congregated in Seoul, Korea Monash Health Allied Health for the conference. The highlight Competency Framework to was Professor Ian Meredith and define and assess the workplace the team implanting a Lotus competence of the allied health Valve, the first time this new workforce. heart valve had been seen by

10 Monash Health Annual Report 2012-2013 Report of the Chair of the Board and Chief Executive

Asia Pacific cardiologists. It was the chance to have face-to- the first time a Lotus heart valve face communication and they Staff implantation had been performed welcomed the new and improved achievements as a live case in the world. system. We take great pride in recognising and celebrating the achievements • Monash Health’s Bariatric • Monash Health started the of our staff, volunteers and Patient Safety Project conducted Worker Health Checks program supporters. Congratulations to our at Kingston Centre has been called ‘WorkHealth’ in 2009 dedicated team members who were recognised by Worksafe and and in 2012 partnered with recognised for their outstanding will move to the next stage of Springboard Health and achievements during 2012-2013 the 2013 WorkSafe Awards. Performance to continue to including: The project was undertaken provide the checks. Since to address emerging issues 2009 nearly 3,800 checks have • Professor Euan Wallace was related to the care of the bariatric been completed. The aim of appointed the Head of the patients at the Kingston site and WorkHeatlh is to improve the Department of Obstetrics and the safety of those providing that health and wellbeing of workers Gynaecology at Southern Clinical care and rehabilitation. by providing them the opportunity School, Monash University to attend a free, voluntary check and was awarded an Order of • More than 4,000 nurses from in the workplace. WorkHealth Australia (OA) in June 2013 around the world attended the participants receive immediate, for his significant service to International Council of Nurses practical health and lifestyle medicine, particularly in the areas 25th Quadrennial Congress advice based on their results. of obstetrics and gynaecology. which offered delegates the opportunity to visit local health • From November 2012 to • A number of our staff and services. Monash Health proudly February 2013 a series of Inter- supporters were recognised with hosted visitors from around the professional Learning Centres Australia Day honours in January world at Monash Medical Centre were delivered to the Residential 2013. MonashHeart surgeon, Clayton, Dandenong Hospital and Aged Care Services (RACS) Associate Professor Andrew Chestnut Gardens. executive team and ward Cochrane, was awarded a leaders. The design incorporated Member of the Order of Australia • Monash Doctors is the new realistic simulations, such as (AM); Neurologist Professor name for our medical community planning meetings with team Robert Iansek and coordinator which endeavours to build an members and performance of the Family Language Program instantly recognisable brand discussions with direct reports, Maggie Lynch both received an identity and build stronger clinical and the completion of a series Order of Australia Medal (OAM); engagement for Monash Health of behavioural assessments. and our President of the Central medical staff. Participants were assessed Council of Auxiliaries Mrs Pat against capabilities from the Huggins, OAM, was Glen Eira’s • Simulation of wound and foot Monash Health Capability Citizen of the Year. care has been launched within Framework. our podiatry department. • Chief Executive Shelly Park Students use plastic models to Each participant was assigned a completed the Vincent Fairfax practice wound debridement, senior leader during the Learning Fellowship program at the instrument handling, wound Centre from within Monash Centre for Ethical Leadership dressing choices, padding to Health who acted as a coach to at Melbourne Business School offload areas of pressure and provided immediate feedback following the receipt of a total contact casting. Students after each of the assigned scholarship. Shelly is actively have reported these simulation activities. Confidential individual using the outcomes from this training workshops have prepared reports were provided and program to develop an enhanced them for the work they need to development plans put in place “Culture of Safety” across perform while on placement. as a result. Monash Health by building on programs such as the falls • We have reviewed our • The iBelong: Working With prevention program and Target Occupational Health and Safety Others program was launched Zero. (OHS) Management System and in October 2012. The 20-minute had excellent feedback from our online program was developed • We recently had two successful customers. We have reduced to educate and focus on the applicants receive scholarships the complexity of the system importance of creating an for the Doctor of Business by removing some elements inclusive work environment free Administration (DBA) program and layers. The system is from harassment, discrimination at the Australian Institute risk management focused and and bullying. The competency- of Business. Paul Jurman, resources are focused in high based program has been Director Information Technology risk areas. Audits are conducted designed for all Monash Health Services, will research home- by the OHS team. Managers employees to complete every based telehealth supported self- are reporting they have a three years. More than 8,500 management for chronic disease greater understanding of OHS employees have completed the conditions and Fiona McAlinden, requirements, they appreciate iBelong online program. Allied Health Director, will

Monash Health Annual Report 2012-2013 11 Report of the Chair of the Board and Chief Executive

examine constraints and identify • Each year our nurses and serve in this role for two years opportunities to improve the midwives are recognised at 2013-2015 and then serve as current referral practices to Allied the Monash Health Nursing President 2015-2017 of the Health services in the bed-based and Midwifery Awards and Endocrine Society of Australia. services. Scholarships Dinner. Ms Sue Professor Teede has been on Coles, Nurse Unit Manager Council for several years and • Dandenong Hospital Emergency at Casey Hospital Emergency will now be the first female Physician, Sheila Bryan, was Department was named Nurse of endocrinologist to serve as awarded the Teaching Excellence the Year. President. Award from the Australasian College for Emergency Medicine • Nephrology’s Access Nurse • Associate Professor Ken Lau, (ACEM). Coordinator, Mechelle from Diagnostic Imaging, won Seneviratne won the Operation the Wiley-Blackwell Best Exhibit • Dr Anna Rosamilia, Head of the Angel award from Kidney Award at the Asia-Oceanic Monash Health Pelvic Floor Unit Health Australia that recognises Congress of Radiology 2012. (PFU), was elected treasurer of outstanding people who have the International Urogynaecology made exceptional contributions to • Dr Simon Craig, Director of Association (IUGA). the community. Clinical Training Clayton, was awarded the Australasian • Professor Rob McLachlan, Head • Associate Professor Michelle College for Emergency Medicine of Prince Henry’s Institute’s Leech, Monash Medical Centre Research award. Clinical Andrology Laboratory and Rheumatologist and Director of Deputy Head of Monash Health’s Clinical Teaching Programs for • Dr Tanya Davison, Senior Endocrinology Department, the MBBS program at Monash Research Fellow, Aged Mental was named 2014 Hoffenberg University, received the Australian Health Research Unit, MONARC, International Medallist in Medical Students’ Association was awarded the Alastair recognition for his outstanding (AMSA) 2012 National Teaching Heron Prize by the Australian contribution to the field of Award and was also the recipient Psychological Society College of endocrinology as a member of of the 2013 Dean’s Award Clinical Psychologists. the scientific community outside for Excellence in Education of the United Kingdom. (Innovation in Teaching). • Dianne Cameron, Physiotherapist/Adjunct Research • Dr Sebastian Hobson, Ms • Dr Greg Tesch, Head of Monash Fellow, Clinical Research Centre Simone Gibson, Mrs Samantha Health Diabetes Research at the for Movement Disorders and Sevenhuysen and Dr John Nephrology Laboratory, has been Gait, MONARC, won an award Cheek were the recipients of awarded the T J Neale Award for an ‘Outstanding Presentation the 2013 Emerging Researcher for Outstanding Contribution to on Balance, Gait and Falls’ for Fellowships. Nephrological Science. her podium presentation at the Parkinson’s Australia National • Nephrologist Dr Jessica Ryan • Professor Linda Kristjanson was Conference. won the 2013 ISN World awarded the Bethlehem Griffiths Congress of Nephrology Research Foundation medal • Adjunct Professor Cheyne (APSN) Top Basic Science for her outstanding contribution Chalmers, Executive Director from a Developed Country to palliative care research and Nursing, Midwifery and Support young investigator prize while education over three decades. Services, was awarded the undertaking her PhD with the 2012 Deakin University Health Department of Nephrology and • Dr Bruce Campbell received the Super Nursing and Midwifery Monash University. 2012 Young Researcher of the Leadership Award for Exemplary Year award for his research on Leadership and Dedication to the • Dr Tom Manley, Gynaecology the use of advanced imaging to Profession. Endoscopy Unit Fellow for improve our understanding of the Monash Medical Centre Clayton treatment of stroke. • Dr Cate Lombard, a Monash and Monash Health, was University researcher working in awarded for an Outstanding • Dr Louis Huang, Associate partnership with Monash Health, Oral Presentation at the Annual Professor David Nikolic-Paterson, has been recognised with the Scientific Meeting of Australasian and Dr Greg Tesch from Monash BUPA Health Foundation National Gynaecological Endoscopy and Health Nephrology Laboratory Research Award for her work Surgery Society (AGES). were awarded for their work in in preventive health including renal science at the Australian important research undertaken • Professor Eric Morand, Director and New Zealand Society of at Monash Health to improve of Rheumatology was appointed Nephrology meeting in Auckland. healthy lifestyles in pregnancy. Head of the Southern Clinical School of the faculty of medicine, • Professor Helena Teede, Director • Dr Andrew Edwards of Monash nursing and health sciences at of Diabetes and Vascular Women’s presented at the Monash University. Medicine was voted in as World Congress on Ultrasound President elect of the Endocrine in Obstetrics and Gynecology in Society of Australia. Helena will Copenhagen and was awarded

12 Monash Health Annual Report 2012-2013 Report of the Chair of the Board and Chief Executive

the Best Research Prize. • DonateLife Week provided Subsequently, this work has been Celebrating an opportunity to talk about presented at the Australasian our services organ and tissue donation. Society for Ultrasound in Monash Health employs a Medicine Annual Scientific Throughout the year we celebrated team of donation specialists, Meeting in Sydney and, again, the diverse range of services we whose role is to recognise and was awarded the Best Research offer. The 2012-2013 events have facilitate donation, educate Prize. included: health professionals, as well as providing support and guidance • At the Annual Scientific Meeting • Dandenong Hospital celebrated for families and staff involved in of the Australasian Society of its 70th anniversary. The hospital the donation process. Ultrasound in Medicine, three has evolved from a community Monash Health sonographers hospital to a modern tertiary • World Kidney Day offered took home significant awards: service with over 520 beds. opportunities to learn more about kidney health, participate o Glenda McLean won Best More than 100 of our dedicated in quizzes and have free blood Sonographer Research for her past and current staff, members pressure checks. work comparing 2D and 3D of the Aboriginal community, imaging of the neonatal brain media and local supporters, • To mark National Palliative Care met in February 2013 when the Week, McCulloch House set up o Keith Van Haltren won history of Dandenong Hospital an interactive information display Best First Time Presenter and its links with the Aboriginal at Monash Medical Centre for his study of ventricular community was celebrated. Clayton where staff and visitors measurement in the second were able to place a message trimester fetus A plaque acknowledging the card on a “heart string” in memory Wurundjeri people, the traditional of a loved one passed. o Greg Curry was awarded custodians of the land on which Best Poster award for his Dandenong stands, was unveiled • Monash Children’s Hospital retrospective analysis of following a traditional welcome by celebrated National Children’s the arterial supply to renal Senior Elder Aunty Pat Ockwell, Week 2012 with a range of transplants. and a smoking ceremony to activities for patients and their cleanse those present. families. The festivities included • Each year, Monash Health enters parties, workshops, activities, projects, teams and individuals • The South East Centre Against events and special guest visits to the Victorian Public Healthcare Sexual Assault (SECASA) at Monash Children’s wards Awards. These Awards are an celebrated 35 years of service across all sites. Patients and opportunity to showcase our work with a birthday event held in families enjoyed visits by and staff. We had three finalists, September 2012. costumed characters, Cosentino Police and Community Triage, the Illusionist, baby animals Cleaning Innovations and the • Monash Medical Centre Clayton from Healesville Sanctuary and iPad iCare field-testing project, celebrated its 25th anniversary in a special guest visit from Radio all of which achieved a Highly November 2012. Lollipop. The week ended with Commended award. the first Monash Children’s • The Nutrition and Dietetics Hospital Community Day. • Interpreter, Ana Maria Cek was Depatment at Dandenong awarded a Victoria’s Multicultural Hospital held a hospital-wide • Occupational Therapy Week Award for Excellence 2012 for event to celebrate Australia’s 2012 celebrated a profession that outstanding achievements in Healthy Weight Week. The event is committed to helping people promoting the cultural diversity of aimed to raise awareness of improve their everyday skills in Victoria’s community. healthy morning tea ideas for order to perform activities of daily hospital staff. The Anthropometry living independently. Station assisted staff to calculate their Body Mass Index, focusing on healthy weight and waist Thank you circumference. We would like to extend our sincere • Medication Safety Week 2013 thanks to our staff, board, executive was hosted by the Medication management team, volunteers, Safety Committee with the aim auxiliaries and supporters for their of improving awareness of safe continued dedication to the delivery medication practices at Monash of excellent care for our community. Health and highlight issues such as high-risk medications and Our great team of staff are Monash documentation of medication Health’s most important asset. We allergies. truly value the diverse skills our team have across the organisation and it is through this team that we

Monash Health Annual Report 2012-2013 13 Report of the Chair of the Board and Chief Executive

are able to offer care across the Fundraising revenue for 2012-2013 • Over the past nine years, Patrick entire lifespan to the people of totalled in excess of $4 million Tessier and his Salesforce team Melbourne’s south east. which is our best ever fundraising have raised over $1.4 million for result. the Monash Children’s Cancer Our many partners in service Centre through the Baileys Day delivery, research and education; One of our major campaigns for golf and luncheon. In 2012, they and our donors, auxiliary members 2012-2013 - the Monash Health raised over $200,000. and volunteers also continue Foundation’s 2013 Love Your Heart to play a major role in our care Week campaign - raised more than • Judy Allatt and Silla Moller, provision and we are immensely $70,000 toward the $100,000 target founders of Belleveue grateful for their ongoing support. that has now been achieved for Philanthropy held an Oaks Day MonashHeart. luncheon in November 2012 During 2012-2013 we welcomed a and raised $29,000 to fund new Board member Professor Greg The aim was to raise funds to the position of a part time play Bamber to our dedicated team of purchase and implement Acute therapist in Monash Children’s Board members whose leadership Cardiac Care Smart Screens for Hospital Emergency Department. and support is invaluable to the Dandenong Hospital and Monash success of Monash Health. Medical Centre Clayton. The • Collier Charitable Fund awarded screens will be used to display Dandenong Hospital a grant of A heartfelt thank you to each and dynamic, interactive images of the $17,865 for the purchase of vital every individual who has played patient’s condition, the surgical equipment for coronary care a part in providing care for our procedure performed, and the patients; plus a grant of $17,800 community in 2012-2013. expected post-operative recovery to McCulloch House in Clayton process. for the continuation of their Community Support Human Rooms project. The highlight of the week was We are fortunate at Monash Health a special live broadcast, when • After holding a very successful to be supported by more than 3AW brought its studio to Monash ‘Pink Dinner’ Brighton Grammar 300 enthusiastic and committed Medical Centre Clayton. raised over $15,000 in support volunteers. of Monash Women’s. The funds Thank you to our many generous raised will help Monash Women’s These community-minded individual, community and upgrade areas of their post-natal individuals freely give their time philanthropic donors who have unit at Monash Medical Centre and talents to roles as diverse supported us throughout the year, Clayton. as guiding visitors around our including: hospitals, providing assistance • The R. E. Ross Trust awarded a to patients in our emergency • The Danks Trust generously $14,000 grant to produce a short departments, and supporting awarded Monash Health health promotion film regarding rehabilitation programs. $100,000 for the renovation female circumcision entitled and refurbishment of a flat in Empowering Change. We receive valuable feedback Wright Street Clayton which will and input from the contribution accommodate Aboriginal patients • Lions Club of Oakleigh of consumers and community and their families from rural generously donated $13,000 for members to advisory committees Victoria who are accessing health the purchase of a blood gases and consumer panels. care services at Monash Medical machine for Monash Children’s Centre Clayton. The upgraded Hospital. This piece of equipment Our five auxiliaries continued facilities will have an enormous will allow staff to measure oxygen their fundraising with a total of impact on supporting many levels in the patient’s blood and $54,863 raised to purchase medical Aboriginal families in the region determine their organ function equipment and support the work for many years to come. without having to take the test to of Monash Health. This year saw the lab for results. This means the closing of the Seasons Group • The Bayside Blue Healers faster diagnosis and treatment which had raised funds through raised $30,000 for the Monash and more staff on the ward. the sales of Christmas cards since Children’s Cancer Centre at 1996, and we pay tribute to the their annual golf day. These We also gratefully acknowledge the hard-working members, particularly funds will be utilised for an many anonymous donors who have its founder Mrs Elsie Ferguson. adolescent educational centre generously given to the Monash within the new Monash Children’s Health Foundation over the last Monash Health Foundation Cancer Centre expansion. The year. While we respect their Blue Healers have generously request for privacy we would like The Monash Health Foundation supported the centre for the past them to know that their gifts have oversees the development of eight years with funds raised made an amazing difference. the philanthropy across Monash enabled the purchase of a Health’s services and facilities. portable anaesthetic machine and It is through the support of our the renovation of the outdoor play generous donors and supporters area. who continue to help us achieve these stunning fundraising results

14 Monash Health Annual Report 2012-2013 Report of the Chair of the Board and Chief Executive

and allow us to continue to provide We are immensely proud of the patient centered care to our many organsiational achievements community. in 2012-2013, the last year of our current Strategic Plan. We also acknowledge the Barbara Yeoh ongoing support of the Victorian These achievements are a direct Chair, Board of Directors Government, Victorian Department reflection of the commitment shown of Health and Commonwealth by our team of staff, volunteers, Government. partners and supporters to providing the very best care to It is their ongoing funding which has our community. We look forward allowed us to continue to deliver to continuing to work together as high quality health care to the we approach the start of our new Shelly Park people of Melbourne’s south east. Strategic Plan 2013-2018. Chief Executive

Corporate supporters • Medicare Dandenong • 3AW • Museums Australia Victoria Thank you • A2 Dairy Products • Nursing Australia to our supporters • All Souls Opportunity Shop • Pacific Trends • Artist Photographer • Philips Major supporters • Avant • Prime Group • Bailey’s Day • Bank of Melbourne • Ricoh • Bellevue Philanthropy • BankVic (formerly Police Credit) • Ride on Entertainment • Chain Reaction • Berwick Opportunity Shop • Ritchies Community Benefit Program • Children’s Cancer Centre Foundation • Belmore Nurses Bureau • ROMAC • Kids with Cancer Foundation • Bounty Services • Rotary Club of Casey • The Bayside Blue Healers • Bunurong Land Council • Rotary Club of Clayton • The Danks Trust • Cardinia Shire Council • Rotary Club of Dandenong • Mates on a Mission • City Life Church • Rotary Club of Dandenong South East • Moose Enterprise • Commonwealth Bank – Clayton Branch • Rotary Club of Emerald • Woolworths • Covidien • Rotary Club of Huntingdale • Zouki Enterprise • Dandenong Crime Investigation Unit • Rotary Club of Monash • Zouki Monash • First State Super (Formerly Health Super) • Rotary Club of Mordialloc • Fitness First • RSL Clayton Partners • Friends of the Children Foundation • Sanofi Aventis • Clown Doctors • Good Guys Dandenong • Semaphore Consulting • Healesville Sanctuary • HESTA • Siemens • Radio Lollipop • Hilton Manufacturing • Sofa Concept • Ronald McDonald House Monash • HUGS • Toshiba – Medical Division • Starlight Children’s Foundation • Iveco Trucks Dandenong • Vawser and Associates • Kids with Cancer Project • Verathon Medical Australia Pty Ltd Philanthropic supporters • Leader Community Newspapers • ANZ Trustees • Lions Club Carnegie Auxiliaries • Collier Charitable Fund • Lions Club Dandenong • Clayton Auxiliary • Community Broadcasting Foundation • Lions Club Endeavour Hills • McCulloch House Auxiliary • Felice Rosemary Lloyd Trust • Lions Club Lyndhurst • Monash Kids Support Group • Louis and Lesley Nelken Trust • Lions Club Moorabbin • Moorabbin Hospital Ladies Auxiliary • Scleroderma Victoria • Lions Club Mulgrave and Sandown • Seasons Group • State Trustees • Lions Club Noble Park • Telstra Foundation • Lions Club Oakleigh • The Grosvenor Foundation • Lions Club Victoria • The R. E. Ross Trust • Lions Club Waverley MonashHealth • Victorian Lions Rheumatism and Arthritis • Lunico Hotel Foundation Medical Research Foundation • Maxxia • Victorian Women’s Trust • Medibank

Monash Health Annual Report 2012-2013 15 Our sites, services and staff Monash Health provides services to a quarter of metropolitan Melbourne’s population. We also play a significant role in providing regional and state-wide specialist services for Victoria. Our sites We provide quality public health care in our community from over 40 care locations across south eastern Melbourne, including major tertiary and secondary hospitals, aged residential care centres and an extensive network of rehabilitation, community health and mental health facilities. Monash Medical Centre Clayton Dandenong Hospital is a 573 bed Moorabbin Hospital is a 135 bed is a 640 bed teaching and research hospital providing a wide range of hospital incorporating Monash hospital of international standing health services to the people living Cancer Centre, one of Victoria’s providing a comprehensive range and working in Dandenong and leading cancer treatment centres of specialist surgical, medical, allied surrounding areas. The hospital operating in partnership with Peter health and mental health services provides a number of general Mac Cancer Centre. The hospital to our community. and specialist services. These also offers elective surgery, short- services include general medical stay care and dialysis. Home to This tertiary site is a designated and surgical, an intensive care Victoria’s first Patient Simulation national provider of renal and unit, MonashHeart cardiac care Centre, the hospital plays a major pancreatic transplants, and centre, rehabilitation and aged role in the education and training of statewide provider of thalassaemia services, pathology, radiology, undergraduate and postgraduate and children’s cancer services. It maternity services, special care medical students, nurses and allied is also the base for MonashHeart, nursery, Monash Children’s, health professionals. The hospital a centre of excellence in cardiac outpatient’s, day chemotherapy, hosts the Southern Melbourne assessment, treatment and home haemodialysis, mental health Integrated Cancer Services and is research, and Monash Children’s, services and allied health services. a centre for research, in particular a the third largest provider of Dandenong Hospital also provides major contributor to cancer related paediatric services in Australia. specialist services including research. Uniquely offering maternity and orthopaedic, plastics, vascular, newborn services integrated on the facio-maxillary, gynaecology, Cranbourne Integrated Care one site, Monash Medical Centre respiratory and infectious diseases. Centre provides a range of same- Clayton provides one of Victoria’s day acute and sub-acute services largest women’s health services Casey Hospital is a 243 bed including surgery, renal dialysis, through Monash Women’s. It is hospital serving one of the fastest specialist consulting services, also renowned for men’s health growing areas in Melbourne’s regional ophthalmology services services and ambulatory models of outer east. Services include and mental health services. It care. an emergency department, also provides the local community general medical, mental health, with access to community health McCulloch House, located on rehabilitation, surgical and services and a community site, is a 16 bed facility providing ambulatory care services, maternity rehabilitation centre. palliative care for people within and a special care nursery. The our catchment area with advanced hospital is a provider of paediatric progressive disease. services for Monash Children’s and gives access to the leading cardiac services of MonashHeart.

16 Monash Health Annual Report 2012-2013 Our sites, services and staff

Kingston Centre is a 136 bed Community services are provided Mental health services are transition care program and sub- through a number of services provided through hospital and acute facility specialising in high including Community Support community based facilities. Our quality rehabilitation, functional Options, Greater Dandenong comprehensive range of services restoration, transitional care, aged Community Health and Cardinia- for children, youth and adults care and aged mental health. Its Casey Community Health. experiencing mental health highly regarded rehabilitation issues include the South East program focuses on restoring Our services place the client at the Alcohol and Drug Service; a function after illness or injury centre of all interactions. We take telephone psychiatric triage with the full range of allied health into account the client’s personal service; community and inpatient services provided to adults of preferences, cultural beliefs and perinatal, child and youth services; all ages. The centre provides values, their family and lifestyle crisis assessment and treatment specialist services for older people situations. teams and enhanced crisis including aged care assessment, assessment and treatment teams cognitive dementia and memory Our client is an integral member (Monash Medical Centre Clayton, services. It also offers, a falls and of the care team who is involved Dandenong Hospital, Casey balance clinic, pain clinic, clinical in all decision making. We aim to Hospital); consultation liaison gait analysis and continence empower and prepare clients to psychiatry; primary mental health service. It is at the forefront of manage their health and health teams; community care teams; research into movement and gait care. A particular focus is placed on mobile support and treatment disorders, aged mental health and ensuring access for those with or services; acute inpatient care; geriatric medicine. at risk of poorest health status and secure extended care services; those most in need. perinatal infant service including Aged residential care is provided an inpatient unit; eating disorders for 165 residents requiring high Our staff are located across 11 services; prevention and recovery care at Allambee Nursing Home, sites (Cranbourne Integrated care services; community Cheltenham; Chestnut Gardens Care Centre, Mundaring Drive, residential and rehabilitation Aged Care, Doveton; and Cockatoo, Doveton, Kingston, services. Yarraman Nursing Home, Noble Berwick, Pakenham, Parkdale, Park. Mooraleigh Hostel, East Springvale, Thomas and David Bentleigh and AG Eastwood Hostel, Streets Dandenong). Cheltenham are home to 89 residents requiring low care. Services are provided at each site by multi-disciplinary teams of Community rehabilitation Allied Health workers including services are provided from physiotherapists, podiatrists, centres at Kingston, Clayton, occupational therapists, dietitians, Doveton, Springvale, Dandenong, counsellors, speech pathologists, Cranbourne and Pakenham nurses, health promotion and in clients’ homes through practitioners, and exercise the Rehabilitation In The Home physiologists. services. We also run a wide variety of groups to support social inclusion and better health. Self management is central to our care. We aim to empower and prepare clients to manage their health and health care across all levels of the care continuum.

Community Support Options is a community care service offering a range of services to assist people who are aged or have a disability. Respite services are also provided to support carers.

Monash Health Annual Report 2012-2013 17 Our sites, services and staff

Our services We uniquely provide our community integrated primary, secondary and tertiary health care in one organisation, offering over 250 different programs and services. Allied Health Ambulatory and • HACC - Aged and Disability Support Chief Operating Officer - Community Care • Health Information and Referral Monash Clayton Sector Chief Operating Officer - • Health Promotion and Education Mr Adam Horsburgh Monash Clayton Sector • Healthy Mothers Healthy Babies Mr Adam Horsburgh General Manager Program Ms Donna Markham General Manager • Hospital In The Home Ms Kate MacRae • Aboriginal Health • Hospital In-reach – Residential Care Facilities • Allied Health • Aboriginal Health • Hospital Admissions Risk • Allied Health Clinical Research • ACCESS Program Unit • Acquired Brain Injury: Slow to • Housing • Dietetic Services Recover Program • In-reach • Exercise Physiology • Aids to support people with a • Intake Services • Interpreter Services disability • LIAISE – support for people with • Music Therapy • Allied Health acquired brain injury • Occupational Therapy • Assisting Care and Housing for • Mobile Access Services Team • Orthotics the Aged • Medicare Local Liaison Unit • Physiotherapy • Birthing Support • Men’s Health • Podiatry • Children’s Early Intervention • Movement Disorders Clinic • Psychology • Chronic Disease Management • Movement Disorders Community • Social Work • Clinical Gait Analysis Service Support Program • South Eastern Centre Against • Cognitive Dementia and Memory • Needle Syringe Program Sexual Assault Service • Optometry • Speech Pathology • Community Access Service • Oral Health (Dental) • Community Aged Care Packages • Outpatient Services Specialist Linkages Clinics • Community Health Services • Pain Clinic Cardinia-Casey and Greater • Planned Activity Groups Dandenong • Post-Acute Care • Community Nursing • Post Sub-Acute Care • Community Rehabilitation – • Primary Care Home and Centre Based Care • Refugee Health • Continence Clinic • Respite Service • Counselling and Casework • South East Advocacy and • Diabetes Education and Support Management • Self Management Programs • Domestic Violence Support • Sexual and Reproductive Health • Falls and Balance Clinic Program • Family Planning • Young Adults Transition Service • Financial Counselling • General Practitioner Liaison • Youth Health

18 Monash Health Annual Report 2012-2013 Our sites, services and staff

Critical Care Program General Medicine Specialty Medicine Chief Operating Officer - Program Program Monash South East Sector Chief Operating Officer - Chief Operating Officer - Mr Siva Sivarajah Monash Clayton Sector Monash South East Sector Mr Adam Horsburgh Mr Siva Sivarajah Program Director Program Director Dr Bill Shearer (until 1/2/13) Program Director Associate Professor Richard King Dr John Monagle (from 1/2/13) Professor Don Campbell

Director of Nursing Director of Nursing Director of Nursing Ms Lynne Bickerstaff Ms Karlene Willcocks Ms Trish Dito • Aged Persons Mental Health • Anaesthesia • General Medicine • Aged Persons Residential Care • Intensive Care • Acute Assessment Unit • Clinical Genetics • Operating Theatres • Hospital In The Home • Clinical Haematology • Peri-operative services • Clinical Immunology • Pharmacy Services • Clinical Nutrition and Metabolism • Cognitive Dementia and Memory Service • Continence Clinic Specialty Program Emergency Medicine • Dermatology Chief Operating Officer - • Diabetes Program Monash Clayton Sector • Diabetes Education Chief Operating Officer - Mr Adam Horsburgh • Diagnostic Imaging Monash Clayton Sector • Endocrinology Mr Adam Horsburgh Program Director Professor Julian Smith • Falls and Balance Clinic Program Director • Gastroenterology Professor George Braitberg Director of Nursing • Geriatric Medicine Outpatient Ms Sharon Wood Clinic Director of Nursing • Breast Services • Haemodialysis Ms Jennine Harbrow • Cardiac CT • Infectious Diseases and Clinical • Monash Medical Centre Clayton • Cardiac Care Epidemiology Emergency Department • Cardiac Rhythm Management • Interventional Radiology • Dandenong Hospital • Cardiothoracic Surgery • Medical Assessment and Emergency Department • Echocardiography Planning Unit • Casey Hospital • Interventional Cardiology • Medical Oncology Emergency Department • MonashHeart • Monash Ageing Research Centre • Paediatric Emergency Medicine • Neurology • Movement Disorders Clinic • Neuropsychology • Nephrology • Neurosurgery • Oncology Day Care • Ophthalmology • Pathology • Paediatric Cardiology • Peritoneal Dialysis • Stroke • Radiology • Thoracic Surgery • Renal and Pancreatic Transplantation • Respiratory and Sleep Medicine (Adult) • Rheumatology • Sub-acute Inpatient Services • Supportive and Palliative Care • Thalassaemia • Young Adults Transition Service

Monash Health Annual Report 2012-2013 19 Our sites, services and staff

Surgery Program Women’s and Children’s Monash Children’s: Program • Adolescent Medicine Chief Operating Officer - • Children’s Cancer Centre Monash South East Sector • Cardiology Chief Operating Officer - Mr Siva Sivarajah • Child and Adolescent Psychiatry Monash Clayton Sector • Developmental Disabilities Mr Adam Horsburgh Medical Director • Dental Mr Al Saunder • Diabetes Medical Director • Eating Disorders Professor Nick Freezer Director of Nursing • Emergency Ms Shirlee Graham • Endocrinology Director of Nursing • Ear, Nose and Throat (ENT) • Audiology Ms Kym Forrest • Forensic Medicine Service • Colorectal Surgery and Stoma Monash Women’s: • Gastroenterology Therapy • Birth Centre Team • General Paediatrics • Endocrine Surgery • Genetic Services • Contraceptive Counselling • Ear, Nose and Throat Surgery • Growth and Development • Delivery Suite • General Surgery • Haematology • Endometriosis Service • Hearing Services • Oral and Maxillofacial Surgery/ • Fetal Diagnostic • Imaging Dental /Cleft Palette • General Obstetrics • Infectious Diseases • Orthopaedic Surgery • Gynaecology • Intensive Care • Plastic and Reconstructive • Melbourne Children’s Sleep • Gynaecology Endoscopy Surgery Centre • Gynaecology Oncology • Upper Gastrointestinal and • Monash Children’s at Home • Lactation Consultant (formerly Carelink) Hepatobilary • Maternal Fetal Medicine • Monash Newborn • Urology • Menopause Service • Neurology • Vascular and Transplant Surgery • Menstrual Management • Neurosurgery • Orthopaedics • Midwifery Care Unit • Plastics • Midwives in Partnership • Quality • Multiple Pregnancy Service • Rehabilitation • Obstetric Metabolic Service • Renal and Continence Renal • Pelvic Floor Disorders Transplantation • Perinatal Services • Respiratory Medicine • Rheumatology • Reproductive Medicine • Surgery • Victorian Fetal Therapy Unit • Urology

20 Monash Health Annual Report 2012-2013 Our sites, services and staff

Mental Health Program • Secure Extended Care Unit • Southern Synergy; Monash • Psychiatric Assessment and Health Adult Psychiatry Executive Director Recovery Care Service – Research, Training and Ms Anne Doherty Springvale and Clayton Evaluation, Monash University Operational • Tele-psychiatry Early in Life Mental Health Early In Life Mental Health Service Mental Health Consumer and Service (ELMHS) Carer Relations Ms Lisa Lynch • Adolescent Recovery Centre - • Administration of the Carer Day Program Brokerage Fund Adult • Community Teams - Dandenong, Mr Umit Agis • Consumer Consultants Casey, Frankston • Director of Consumer Carer • Eating Disorder Service Community, Access and Relations • Early Psychosis - Recovery and Partnerships (CAPS) • Parent / Carer Consultants Mr George Osman Prevention of Psychosis Service (RAPPS) Community Access Partnerships Professional • Integrated Perinatal and Infant • Acquired Brain Injury Programs Medical Director Mental Health Team (Outpatient Associate Professor • Addiction Medicine Unit - Hospital David Barton Team) Liaison, Outpatients and Shared • Intensive Mobile Youth Outreach Care Director of Nursing Service • Adult Counselling Services Ms Jakqui Barnfield • Mother and Baby Unit • Adult Hospital Consultation • Monash Health Butterfly Eating Liaison - Monash and Dandenong Director Allied Health Disorder Day Program Ms Elizabeth Scutt • Community Development • Specialist Team - incorporating - Mental Health Promotion, Director Psychology Hospital Consultation Liaison, General Practice Liaison Dr Melissa Casey Crisis Clinicians (Monash, Clinicians, Mental Health Nurses Dandenong, Casey, Frankston) in General Practices Director Consumer and and Neuro Developmental • Culturally and Linguistically Carer Relations Assessment Clinic (Endeavour Ms Vrinda Edan Diverse Community Programs. Hills) • Drink Drive Programs • Stepping Stones Adolescent • Forensic Intervention Unit Adult Mental Health – Acute Inpatient Unit including • Gender Dysphoria Service • Adult Acute Inpatient Units Educational Service - Lyndale • Koori Alcohol and Drug Programs • Crisis Assessment and Treatment Secondary School • Needle Exchange Program Teams (CATT) • Stepping Stones Transition (Step • Pharmacotherapy Outpatient • Enhanced Crisis Assessment and up/Step down) Program Clinic Treatment Teams (ECATT) • Youth Inpatient Unit • Primary Mental Health Teams - • Inpatient Units Middle South, South East • Psychiatric Triage Service Mental Health Education, Training and Research • Regional Dual Diagnosis Program • South Eastern Alcohol and Other Adult Mental Health Services • Centre for Developmental Drugs Service • Clozapine Clinic Psychiatry and Psychology, • Withdrawal Programs - • Community Care Units (CCUs) - Monash University Residential Based and Doveton and East Bentleigh • Centre for Psychological and Outpatient/Home Based • Continuing Care Teams Behavioural Medicine, Monash • Youth Drug and Alcohol (CCT) - Middle South, Clayton, University Program, Including Supported Dandenong, Casey, Cranbourne • Precept - Nursing Training and Accommodation and Outreach • Mobile Support and Treatment Education Team Teams (MST) Middle South, Dandenong

Monash Health Annual Report 2012-2013 21 Our sites, services and staff

Our staff Our staff continue to provide quality healthcare to our community.

Staff numbers

Labour category June EFT Average EFT 2012-2013* 2011-2012 2012-2013* 2011-2012 Nursing 4,160 4,149 4,122 4,142 Administration and Clerical 1,385 1,389 1,386 1,368 Medical Support 1,036 1,044 1,036 1,035 Hotel and Allied Services 847 846 844 846 Medical Officers 170 180 174 181 Hospital Medical Officers 844 851 844 855 Sessional Clinicians 263 256 259 253 Ancillary Staff (Allied Health) 766 756 756 773 TOTAL 9,471 9,472 9,421 9,452

* Full time equivalent staff at Monash Health and Jessie McPherson Private Hospital as at 30 June 2013.

WorkCover claims

2012 - 2011 - 2010 - 2009 - 2008 - 2007- 2006 - 2005 - 2004 - 2013 2012 2011 2010 2009 2008 20077 2006 2005 Number of standard 166 166 151 152 165 174 171 184 164 claims

Claims per $ million or 0.22 0.23 0.22 0.24 0.303 0.333 0.344 0.396 0.396 remuneration

Occupational health and safety management system

We have reviewed our management system and had excellent feedback from our customers. We have reduced the complexity of the system by removing some elements and layers. The system is risk management focused and resources are focused in high risk areas. Audits are conducted by the Occupational Health and Safety (OHS) team. Managers are reporting they have a greater understanding of OHS requirements, they appreciate the chance to have face-to-face communication and they value the new and improved system.

22 Monash Health Annual Report 2012-2013 Governance Monash Health is a public health service; a body corporate established under Section 65P of the Health Services Act 1988 as amended in 2004, and listed in Schedule 5 of that Act.

The Minister for Health, The Honourable David Davis MP is the responsible Minister.

Clinical Governance Clinical governance refers to the The Monash Health clinical Patient centred care systems which guide activities and governance framework is based Patient centred care at Monash initiatives within Monash Health on a number of key elements Health is the partnership with to ensure the vision, purpose and including: patients, families, carers and other strategic goals of the organisation consumers to provide exceptional are achieved. This should occur in Leadership care and achieve outstanding a manner which is patient-centred, Leadership objectives and outcomes. transparent, and commands responsibilities are clearly defined accountability. in the position descriptions of This occurs at all levels of Monash each Manager, Service Director Health and includes informed Specifically, effective clinical and Executive at Monash Health. consent and shared decision governance ensures that Individually they are expected to making about care, consumer leadership roles are defined clearly lead innovative initiatives that aim partnership in service planning, and are consistent with strategic to achieve the strategic objectives consumer partnership in designing goals, and provides a framework of Monash Health. care and consumer partnership which encourages innovation, in service measurement and transparency and trust. Risk minimisation evaluation. There are practical, robust and At Monash Health, clinical effective systems in place to The Monash Health Community governance supports the iCare identify, analyse and minimise risks Participation Plan, Community values: Integrity, Compassion, at each operational level and site, Advisory Committee, Primary Care Accountability, Respect and and across the organisation. and Population Health Advisory Excellence. Committee and various consumer Performance improvement feedback networks ensure the The clinical governance Performance of individuals, interests of stakeholders are framework is implemented via operational teams and the incorporated into the organisational the organisational management organisation as a whole are strategic objectives. structure, individual job descriptions monitored by key performance and the terms of reference indicators. for various committees. This framework compliments other The performance improvement organisational governance strategy implemented at Monash frameworks such as the Patient Health incorporates these key First Transformation Framework, performance indicators, enabling a centralised initiative to transform identification of performance systems in our effort to deliver leaders and their innovative outstanding care. practices.

Monash Health Annual Report 2012-2013 23 Our Board of Directors The Board of Directors of Monash Health is appointed by the Governor in Council on the recommendation of the Minister for Health in accordance with the Health Services Act 1988.

In the Victorian Government Gazette dated 30 May 2013, it was noted: The Governor in Council, under section 8(4)(c) of the Health Services Act 1988, amends the name of Southern Health, as it appears in Schedule 5 of that Act, to Monash Health.

Functions of the Board of Directors The functions of the Board are: • To establish and maintain • To develop arrangements with effective systems to ensure that other agencies and health • To monitor the performance of the health services meet the service providers to enable Monash Health. needs of the community served effective and efficient service by Monash Health and that the delivery and continuity of care. • To appoint and determine the views of users and providers of employment terms (including health services are taken into • To establish the organisational remuneration) of a Chief account. structure, including the Executive. management structure, of • To ensure that Monash Health Monash Health. • To oversee the management operates within its budget and of Monash Health and monitor that its systems accurately reflect • To establish and ensure the the performance of the Chief its financial position and viability. effectiveness of a Finance Executive. Committee, an Audit Committee • To ensure effective and and a Quality Committee and • To develop statements of accountable systems are in other Committees considered priorities and strategic plans for place to monitor and improve appropriate. the operation of Monash Health and quality and effectiveness and monitor their compliance. of health services provided by • To facilitate health research Monash Health. and education and any other • To develop financial and functions conferred on the Board business plans, strategies and • To ensure that any problems by or under the Act. budgets to ensure accountable identified with the quality and and efficient provision of health effectiveness of health services services by Monash Health and are addressed in a timely its long term financial viability, manner and that Monash Health as well as to ensure they are strives to continuously improve adhered to. quality and foster innovation.

24 Monash Health Annual Report 2012-2013 Our Board of Directors

Board committees The following committees Audit Committee Finance Committee support the functions of the The role of the Audit Committee The role of the Finance Committee Board of Directors: is to advise the Board of Directors is to advise the Board of Directors on audit matters and matters on financial matters and to assist Quality Committee relating to the financial, accounting in the oversight of financial The purpose of the Quality and legislative compliance and performance. Committee is to support the Board’s the operational effectiveness and function of providing strategic efficiency of Monash Health. The Finance Committee reviews leadership in relation to the clinical and makes reccomendations to the governance of quality and safety The Committee also advises the Board regarding financial strategy, at Monash Health. It serves to Board on the level of business financial policies, annual operating ensure, on behalf of the Board, that risk or exposure to which Monash and capital budgets, cash flow and the following broad objectives are Health might be subject and business plans to ensure alignment fulfilled: oversight of internal and external with key strategic priorities and audit activities. performance objectives. • Effective and accountable systems are in place to monitor Remuneration Committee The Committee also has a key role and improve the quality and The principal role of the in assisting the Board to monitor effectiveness of health services Remuneration Committee is to financial performance and financial provided by Monash Health. advise the Board of Directors risk. • Any problems identified with the on matters relating to the quality or effectiveness of the organisation’s remuneration health services provided are policies and practices. addressed in a timely manner. In addition, the Remuneration • Monash Health continuously Committee provides oversight with strives to improve the quality of respect to succession planning the health services it provides for the Chief Executive and senior and to foster innovation. executive positions.

Board advisory committees Community Advisory Committee leadership in relation to the the health status of our community The Community Advisory integration of consumer, carer and in areas such as the hospital – Committee assists the Board to community views into all levels of primary care interface, mental appropriately integrate consumer health service operations, planning health wellbeing, health promotion, and community views at all levels and policy development and to health independence programs, of Monash Health’s operations. advocate to the Board of Directors research and education and the on behalf of the community, health of refugees, Aboriginal The Committee has the consumers and carers. and Torres Straight Islanders and responsibility to advise on culturally and linguistically diverse governance, policy and strategy in Primary Care and Population communities. relation to community participation Health Advisory Committee and its impact on health service The Primary Care and Population outcomes. Health Advisory Committee provides strategic advice to the The two key roles of the Board on matters specific to Community Advisory Committee primary care and population health are to provide direction and with a particular focus on improving

Monash Health Annual Report 2012-2013 25 Our Board of Directors

Members of the Board of Directors

Ms Barbara Yeoh Professor Greg Bamber BSc (Hons), FAICD BSc (Hons), PhD, AcSS, FASSA, FAIM, FBAM, FCMI, FCIPD, LFANZAM • Chair of the Monash Health Board • Chair, Remuneration Committee • Member, Remuneration Committee • Member, Finance Committee • Member, Primary Care & Population Health Advisory Committee • Term of appointment: July 2009 - current • Term of appointment: July 2012 - current

Ms Yeoh was a long standing member of the Dr Bamber is Professor and Discipline Leader: Board of Eastern Health until June 2009. She Human Resources and Employment Relations, is Director of the Melba Conservatorium of Management Department, Monash University. Music and Trustee of the Melba Opera Trust, He was formerly Director of Research. He Director of the Victoria State Emergency has served as a Director on boards in the Service, Chair of the Civil Aviation Safety fields of education and of sport. He advises Authority Audit Committee, Chair of the ACT governments, universities, private and public Treasury Investment Advisory Board, Member sector enterprises and other organisations of the Gambling and Lotteries Licence Review (e.g. International Labour Organisation). His Panel (Victoria) and Member of the Statutory research is international and includes: hospitals, Fishing Rights Allocation Review Panel airlines, manufacturing, the public sector (Commonwealth). Ms Yeoh is a Principal and telecommunications, as well as: high- Associate of PhillipsKPA. performance work systems, dispute prevention and settlement, process improvement, outsourcing and shared services.

Mr Charles Gillies Dr Errol Katz BSc/BA, MBA, SF Fin, GAICD MBBS (Hons), LLB (Hons), MPP, GAICD • Chair Finance Committee • Member, Kitaya Holdings Board Pty Ltd* • Chair, Board Quality Committee • Term of appointment: July 2011 - current • Member, Remuneration Committee • Member, Audit Committee Mr Gillies is co-founder of Jolimont Capital • Term of appointment: July 2010 - current which specialises in investing in technology companies. These companies are generally Dr Katz returns to Monash Health as a Board Australian based and compete in fast moving, member, having been a medical student at highly competitive technology markets. As an Monash Medical Centre. His professional active investor himself his approach has been experience has been in business and finance, to work closely with management to develop with roles at the Boston Consulting Group, Visy a plan to create economic value. He has Industries and in private equity. He is on been Director and Chairman of a number of the board of Primary Health Care, and was investments and has worked closely with CEOs previously a Board member of Dental Health and management teams, developing strategies, Services Victoria. setting objectives and performance targets.

[*Kitaya Holdings Pty Ltd operates Jessie McPherson Private Hospital.]

26 Monash Health Annual Report 2012-2013 Our Board of Directors

Mr Ross McClymont Ms Helen Owens BCom, LLB BEc (Hons), MEc

• Chair, Audit Committee • Chair, Primary Care and Population Health • Member, Board Quality Committee Advisory Committee • Term of appointment: July 2011 - current • Member, Board Quality Committee • Term of appointment: July 2006 - current Mr McClymont is a partner of global law firm, Ashurst, and leads the firm’s restructuring Ms Owens, a health economist and health and insolvency practice in Melbourne. He has policy consultant, is currently a member of the nearly 20 years’ experience in his chosen Victorian Cancer Agency. Previous positions field, and regularly advises boards of both held include full-time Commissioner on the listed and unlisted companies with respect to Productivity Commission, part-time member of issues including directors’ duties, corporate the Commonwealth Grants Commission, expert governance, continuous disclosure obligations strategic advisor to the Victorian Department and solvency matters. Mr McClymont is the of Premier and Cabinet on health reform and National Director of the Insolvency Practitioners casemix consultant to the Australian Healthcare Association of Australia and a member of the and Hospitals Association. Academic positions Insolvency and Reconstruction Law Committee at Monash and Melbourne universities have of the Law Council of Australia. included Associate Professor and Deputy Director of the National Centre for Health Program Evaluation.

Ms Linda Perry Ms Debbie Williams B.Acc, ACA MBA, ME, BCom, GAICD

• Member, Community Advisory Committee • Member of the Finance Committee • Member, Audit Committee • Member of the Primary Care and Population • Term of appointment: July 2011 - current Health Advisory Committee • Term of appointment: July 2009 - current Ms Perry has worked for more than 20 years in leadership roles within the professional Ms Williams is a health care strategy services industry in both audit and business consultant who brings extensive experience development and marketing. She is a in health care management, corporate Chartered Accountant and auditor with skills governance, business strategy management, in finance, audit and risk management and mental health management and financial corporate governance. Ms Perry is an Audit management. Ms Williams is a member of the Committee Member for Community Chef and Board of the Inner East Mental Health Services Regional Kitchen Pty Ltd and a member of Association and Chair of its Board’s Finance WNBL Melbourne Boomers Board. Ms Perry and Risk Management Committee. was a partner with BDO and William Buck and worked with Deloitte for 14 years.

Monash Health Annual Report 2012-2013 27 Organisational asstructure at 30 June 2013

Board of Directors

Chair, Barbara Yeoh Greg Bamber Charles Gillies Errol Katz Ross McClymont Helen Owens Linda Perry Debbie Williams

Chief Executive

Shelly Park

Chief Operating Chief Operating Executive Director Executive Director Officer - Monash Officer - Monash Medical Services Nursing & Midwifery South East Sector Clayton Sector Innovation & Quality & Support Services

Siva Sivarajah Adam Horsburgh Erwin Loh Cheyne Chalmers • Programs • Programs • Medical Workforce • Nursing & Midwifery • Critical Care • General Medicine • Medical Education Strategic Directorate • Surgery • Emergency • Quality & Centre for • Nursing & Midwifery • Specialty Medicine • Specialty Clinical effectiveness Education & Strategy • Women’s & Children’s • Change, Innovation & • Infection Control • Major facilities: • Ambulatory & Community Care Redesign • Support Services • Dandenong Hospital • Consumer Complaints • Emergency Management • Casey Hospital • Kingston Centre & Aged • Major facilities: • Research Directorate • Monash Health Bureau Residential Care • Monash Medical Centre • Simulation Centre • Cranbourne Integrated Clayton • Library Care Centre • Moorabbin Hospital

• Functions & Services: • Functions & Services: • Patient Flow & Access • Allied Health • Health Information • Strategy & Planning Services • Jessie McPherson Private • Capital & Infrastructure Hospital • Property • Engineering Services Organisational KPI: Organisational KPI: Professional Governance: Professional Governance: Elective Surgery Performance Emergency Performance Medical Workforce Nursing & Midwifery

28 Monash Health Annual Report 2012-2013 Organisational structure

Board Committees

Audit Chair, Ross McClymont Errol Katz Linda Perry John Thompson (independent member) Finance Quality Remuneration

Advisory Committees

Community Primary Care & Population Health

Office of the Chief Executive

Corporate Counsel John Snowdon

Executive Director Financial & Business Improvement & Procurement John Sutherland

General Manager Allied Health (Professional Governance) Donna Markham

Chief Information Officer Philip Nesci

Executive Director Executive Director Executive Director Executive Director Public Affairs & Human Resources Finance Mental Health Communication

Anne Doherty Fiona Prestedge Basil Ireland Andrew Williamson Mental Health Program: • Human Resources • Finance • Media Relations • Adult Consulting • Revenue • External Communication • Early in Life Mental • Occupational Health & • Reporting & Analysis • Internal Communication Health Service Safety • Community Relations • Community & • Organisational • Volunteers & Auxiliaries Rehabilitation Development & Learning • Art & Historical • Alcohol & Drugs • Recruitment & Retention Collections • Mental Heath • Industrial Relations • Monash Health Education, Training & • Payroll Foundation Research Centre

Professional Governance: Psychology

Monash Health Annual Report 2012-2013 29 Statutory compliance Compliance with the Building Act essential safety measures report for Initial decision makers 1993 all properties owned by Southern Vicky Hammond, Legal Counsel; Health. This is confirmation that John Snowdon, Corporate Counsel; Our facilities are managed through all essential safety measures are Brooke Whiteside, FOI Operations site inspections, risk assessments operational at the required level of Manager; Maija Dimits, FOI Advisor. and independent audits, with performance and the integrity of the comprehensive contracts in place fire safety of these facilities. Records Internal reviewers to maintain the Essential Safety and reports are retained on the Vicky Hammond, Legal Counsel; Measures and annual compliance premises for inspection by relevant John Snowdon, Corporate Counsel. reporting by independent auditors. authorities. Merit and equity Building standards and condition Risk assessment Merit and equity principles are assessments Victorian Managed Insurance encompassed in employment and The condition of our buildings are Authority (VMIA) conducts detailed diversity management activities assessed through site inspections Site Risk Assessments (SRS) at throughout Monash Health. and condition audits by architects Monash Medical Centre Clayton and consultant engineers, on an as and Moorabbin, Kingston Centre, National Competition Policy needs basis. Fire audits and risk Dandenong Hospital, Cranbourne Monash Health continued to comply assessments are undertaken by Integrated Care Centre and Chestnut with the Victorian Government’s consultant fire engineers to comply Gardens. Risk treatment options Competitive Neutrality Policy. In with the Department of Health Fire generated from the SRS are addition, the Victorian Government’s Risk Management Engineering monitored through risk action plans Neutrality Pricing Principles for all Guidelines Series 7. until they are completed. relevant business activities have been applied by Monash Health since Recommendations from fire audits 1 July 1988. are actioned through a series of Freedom of Information Act 1982 Summary of requests received under projects developed in conjunction Victorian Industry Participation the Act between 1 July 2012 to 30 with the Department of Health to Policy June 2013. maintain a high degree of fire safety. Monash Health complies with the All bed-based facilities are audited in Number of requests 1570 intent of the Victorian Industry five yearly cycles. Access in full 1139 Participation Policy Act 2003 which Access in part 90 requires, wherever possible, local Fire engineering consultants and Access denied in full 4 industry participation in supplies; Other (no documents found) 34 registered building surveyors were taking into consideration the principle Application fee not paid 117 appointed through a comprehensive of value for money and transparent tendering process to carry out Fire (Cancelled application) 120 Not yet finalised 183 tendering processes. Safety Audits of all overnight bed- based facilities in July 2012. There Exemptions cited – total 106 Additional Information are 12 facilities in this portfolio Section: In compliance with the requirements and the audits were completed in 25 A(1) 1 of the Standing Directions of the November 2012. 33(1) 83 Minister for Finance, details in 33(4) 1 respect of the items listed in Finance Essential safety measures 35(1)(b) 20 Regulation 22C have been retained maintenance 38 1 by Monash Health and are available Contracts are in place to maintain to the relevant Minister, members of Fees and charges all essential safety measures Parliament and the public on request Application fees collected - $30,622.00 elements at major sites and minor (subject to the freedom of information sites owned by Southern Health. Application fees waived - $8,785.00 requirements, if applicable). Audits were performed at these sites by registered building surveyors to Copy charges collected - $34,307.10 ensure compliance with essential safety measures maintenance Copy charges waived - $12,528.50 regulations. Action plans to rectify defects identified during the audits are currently in place. In accordance with regulatory requirements, service and maintenance records are kept to enable completion of an annual

30 Monash Health Annual Report 2012-2013 Disclosure Index The Annual Report of Monash Health is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identification of the Department’s compliance with statutory disclosure requirements.

Legislation Page Legislation Page Ministerial Directions FRD 22C Statement of National 30 Competition Policy Report of Operations 2-41 FRD 22C Subsequent events 124

Charter and purpose FRD 22C Summary of financial results for the 39 FRD 22C Manner of establishment 23 year and the relevant Minister FRD 22C Workforce Data Disclosures 22 FRD 22C Objectives, functions, 5 including a statement on the

powers and duties application of employment and FRD 22C Nature and range of conduct principles 16 services provided FRD 22C Environmental performance 10

Management and structure FRD 25 Victorian Industry Participation 30 FRD 22C Organisational structure 28 Policy disclosures

Financial and other information SD 4.2(j) Sign-off requirements 5 FRD 10 Disclosure index 31 SD 3.4.13 Attestation on Data Integrity 32

FRD 11 Disclosure of ex-gratia payments NA SD 4.5.5 Attestation on Compliance 33 with Australian/New Zealand FRD 15B Executive officer disclosures 123 Risk Management Standard

FRD 21A Responsible person and 122 executive officer disclosures Financial Statements

FRD 22C Application and operation of 30 Financial statements required under Part 7 of the Freedom of Information Act 1982 FMA

FRD 22C Compliance with building and 30 SD 4.2(a) Statement of changes in equity 48

maintenance provisions of SD 4.2(b) Operating statement 46 Building Act 1993 SD 4.2(b) Balance sheet FRD 22C Details of consultancies 39 47

over $10,000 SD 4.2(b) Cash flow statement 49

FRD 22C Details of consultancies 39 Other requirements under Standing Directions 4.2 under $10,000 SD 4.2(a) Compliance with Australian 50 FRD 22C Major changes or factors 41 accounting standards and other affecting performance authoritative pronouncements

FRD 22C Occupational health and safety 22 SD 4.2(c) Accountable officer’s declaration 43

FRD 22C Operational and budgetary 34 SD 4.2(c) Compliance with Ministerial Directions 50

objectives and performance against objectives Legislation

FRD 22C Significant changes in financial Victorian Industry Participation Policy Act 2003 30 41 position during the year Financial Management Act 1994 44 FRD 22C Statement of availability of 30 other information

Monash Health Annual Report 2012-2013 31 Attestations

32 Monash Health Annual Report 2012-2013 Attestations

Monash Health Annual Report 2012-2013 33 Key financial and service performance reporting Statement of Priorities: Part A Part A: Strategic priorities for 2012-2013

Priority Action Deliverable Outcome Developing a In partnership with • Complete the South East Growth Corridor project, which • Completed. system that is other local providers is a partnership between Local Government Areas, responsive to apply existing Medicare Locals, Department of Health and Southern people’s needs service capability Health to map and plan for ambulatory and community frameworks to care services. maximise the • Complete the Dandenong Ambulatory Precinct work, • Design well progressed and Tender for use of available including consideration of haemodialysis facilities and works is due for release in July 2013. Works resources across provision in Dandenong region. scheduled for completion in February 2014. the catchment. Change management and transition planning underway. • Redesign outpatient services across Monash Health • Department of Health Access Policy released and implement changes. in June 2013. Outpatient Services Steering Committee established to oversee service redesign for compliance with this policy. Improving every Use existing • Continue the implementation of Monash Health’s • Ongoing and on track. Victorian’s health service capability Service Improvement framework, to improve patient status and frameworks, patient experience, staff experience and reduce length of stay. experiences pathways and clinical guidelines to support better health outcomes. Expanding Identify • Clearly articulate workforce plan outlining opportunities • Completed. service, opportunities to for advanced practice roles and extended scope of workforce and address workforce practice. system capacity gaps by optimising • Educate clinical staff on how to access and use web • Ongoing and on track. workforce capability based quality and safety data set. and capacity, and exploring alternative • Progress the Monash Health Translation Precinct • Design well progressed and due for final workforce models. program of work. completion in August 2013. Tendering for Managing Contractor underway with EOI complete and under review. Demolition works will commence in July 2103 and main works in January 2014. • Develop a calendar / plan for workforce engagement • Completed. and / or opinion surveys. • Review the diversity practices to support a culturally • Completed. diverse workforce. • Improve our outcomes in injury management and • Completed. ongoing quality assurance. • Develop a volunteer recruitment strategy that targets • Completed. young people. • Build leadership capacity in managers who currently • On track. fall outside the qualifying criteria for existing leadership programs. • Continue to progress the establishment of the Monash • Completed. Partners Academic Health Science Centre.

34 Monash Health Annual Report 2012-2013 Key financial and service performance reporting

Priority Action Deliverable Outcome Increasing the Identify opportunities • Achieve against the Monash Health Living Within Our • Living Within Our Means Strategy target has system’s financial for efficiency and Means Strategy; and implement the Activity Based been achieved. sustainability and better value service Funding action plan to ensure readiness for the National • Readiness for Activity Based Funding is on productivity delivery. Activity Based Funding program. track. • Develop and support the Monash Health Foundation • Achieved. Advisory Board. • Ensure compliance and mitigation strategies to achieve • Achieved. budget. • Develop and implement an organisational strategy • Budget has been built with links between that links to budget control at the unit level – medical, activity and cost. Further refinement will be nursing and allied health. achieved.

Examine and • By June 2013, undertake a workforce review and • Monash Health has participated in the Ernst reduce variation utilise benchmarking information to identify potential & Young sector review into opportunities for in administrative administrative and operational efficiencies. administrative efficiency savings. overheads • In addition, we commenced efforts to reduce administrative and support eft expense achieving an eft reduction (June 2012 compared against June 2013) of 12.95 eft. Implementing • Develop and • Continue the implementation of Monash Health’s • Ongoing and on track. continuous implement Service Improvement Framework, focused on improvements improvement emergency flow, elective access and outpatient and innovation strategies that services. Priority to be given to achievement of the better support NEAT and continued improvement against the NEST. patient flow and • Continue to coordinate and further enhance patient • Ongoing and on track. the quality and safety walk around process. safety of hospital services. • Implement strategy to measure real time patient • Completed. • Develop and experience and confidence. implement strategies that support service innovation and redesign.

Increasing Increase • Implement the new National Standards reporting • Ongoing and on track. accountability transparency and requirements across all of Monash Health’s clinical and transparency accountability in areas; and continue the development of SHARE, reporting of accurate to provide real-time data on performance against and relevant operational targets. information about • Prepare the organisation for accreditation against the • Ongoing and on track. the organisation’s national healthcare standards. performance.

Improving Maximise the • Deliver against the Monash Health IT Strategic Plan • Ongoing and on track. utilisation of use of health ICT 2012-2015. e-health and infrastructure. communications technology • Collaboration with Department of Health and • Completed. Human Services to develop a guidance note for use by hospitals, aged care facilities and emergency services in planning for and conducting a relocation or evacuation. • Continue to explore opportunities for Telehealth • Established infrastructure to support across Monash Health and with our partner agencies. Telehealth at Monash Medical Centre Implementation of electronic clinical handover, audit, Clayton. Consultations underway in Mental and discharge summary system. Health Cranbourne. • Clinical handover and Audit System implemented. • Disseminate the Talking with your Doctor guide and • Victorian Quality Council (VQC) evaluated DVD to the appropriate patient groups. this DVD in 2012. In light of this evaluation the Patient Centred Care (PCC) Committee recommended that this intervention is not proceeded with. As an alternative efforts have focussed on: 1. PCC education for staff 2. Development of patient information standards 3. Development and implementation of a welcome pack for patients.

• Implement HARP changes / chronic disease self- • Completed. management tool.

Monash Health Annual Report 2012-2013 35 Key financial and service performance reporting

Statement of Priorities: Part B Part B: Performance priorities

Financial performance Operating result Target 2012-2013 actuals Annual Operating result ($m) 0.5 1.1

WIES activity performance Target 2012-2013 actuals Percentage of WIES (public and private) performance to target (%) 100 100.7

Cash management Target 2012-2013 actuals Creditors (days) < 60 days 28 Debtors (days) < 60 days 57

Access performance Emergency care Target 2012-2013 actuals Casey Hospital Percentage of ambulance transfers within 40 minutes (%) 90 74 NEAT - Percentage of emergency presentations to physically leave the emergency department for 70 66 admissions to hospital, be referred to another hospital for treatment, or be discharged within four hours (July - December 2012) NEAT - Percentage of emergency presentations to physically leave the emergency department for 75 72 admissions to hospital, be referred to another hospital for treatment, or be discharged within four hours (January - June 2013) Number of patients with length of stay in the emergency department greater than 24 hours 0 2 Percentage of Triage Category 1 emergency patients seen immediately (%) 100 100 Percentage of Triage Category 1 to 5 emergency patients seen within clinically recommended times (%) 80 72.2 Dandenong Hospital Percentage of operating time on hospital bypass (%) 3 0.9 Percentage of ambulance transfers within 40 minutes (%) 90 64 NEAT - Percentage of emergency presentations to physically leave the emergency department for 70 53 admissions to hospital, be referred to another hospital for treatment, or be discharged within four hours (July - December 2012) NEAT - Percentage of emergency presentations to physically leave the emergency department for 75 58 admissions to hospital, be referred to another hospital for treatment, or be discharged within four hours (January - June 2013) Number of patients with length of stay in the emergency department greater than 24 hours 0 2 Percentage of Triage Category 1 emergency patients seen immediately (%) 100 100 Percentage of Triage Category 1 to 5 emergency patients seen within clinically recommended times (%) 80 78 Monash Medical Centre Clayton Percentage of operating time on hospital bypass (%) 3 1.5 Percentage of ambulance transfers within 40 minutes (%) 90 58.4 NEAT - Percentage of emergency presentations to physically leave the emergency department for 70 61 admissions to hospital, be referred to another hospital for treatment, or be discharged within four hours (July - December 2012) NEAT - Percentage of emergency presentations to physically leave the emergency department for 75 65 admissions to hospital, be referred to another hospital for treatment, or be discharged within four hours (January - June 2013) Number of patients with length of stay in the emergency department greater than 24 hours 0 2 Percentage of Triage Category 1 emergency patients seen immediately (%) 100 100 Percentage of Triage Category 1 to 5 emergency patients seen within clinically recommended times (%) 80 72.2

36 Monash Health Annual Report 2012-2013 Key financial and service performance reporting

Part B: Performance priorities (Continued)

Elective surgery Target 2012-2013 actuals Percentage of Urgency Category 1 elective patients treated within 30 days (%) 100 100 NEST - Percentage of Urgency Category 2 elective surgery patients treated within 90 days (July-Decem- 75 44 ber 2012) (%) NEST - Percentage of Urgency Category 2 elective surgery patients treated within 90 days (January - 80 44 June 2013) (%) NEST - Percentage of Urgency Category 3 elective surgery patients treated within 365 days (July- 93 85 December 2012) (%) NEST - Percentage of Urgency Category 3 elective surgery patients treated within 365 days (January - 94.5 84 June 2013) (%) Number of patients on the elective surgery waiting list 9,850 9,524 Number of Hospital Initiated Postponements per 100 scheduled admissions 8.0 5

Service performance Elective surgery Target 2012-2013 actuals Number of patients admitted from the elective surgery waiting list – quarter 1 5,084 5,265 Number of patients admitted from the elective surgery waiting list – quarter 2 5,536 5,619 Number of patients admitted from the elective surgery waiting list – quarter 3 5,100 5,030 Number of patients admitted from the elective surgery waiting list – quarter 4 6,130 6,072

Critical care Target 2012-2013 actuals Number of days operating below agreed Monash Medical Centre ICU minimum operating capacity 0 26

Number of days operating below agreed Dandenong Hospital ICU minimum operating capacity 0 1 Number of days operating below agreed Neonatal ICU minimum operating capacity 0 61

Quality and safety Target 2012-2013 actuals Health service accreditation Achieved Achieved Residential aged care accreditation Achieved Achieved Cleaning standards Achieved Achieved Hospital acquired infection surveillance No outliers No Outliers Hand Hygiene (rate) (%) 70 73 SAB rate per occupied bed days 2/10,000 1/10,000 Victorian Patient Satisfaction Monitor (OCI) 73 75.9 Consumer Participation Indicator 75 78.5 People Matter Survey Achieved Achieved

Maternity Target 2012-2013 actuals Percentage of woman with prearranged Postnatal home care (%) 100 98.2

Mental health 2012-2013 2012-2013 target actuals 28 day readmission rate (%) 14 14.5 Post-discharge follow-up rate (%) 75 86.3 Seclusion rate per occupied bed days <20/1,000 10/1,000

Monash Health Annual Report 2012-2013 37 Key financial and service performance reporting

Statement of Priorities: Part C Part C: Activity and funding

Funding type 2012-2013 activity achievement Acute admitted WIES Public 123,688 WIES Private 12,784 Total PPWIES (Public and Private) 136,472 WIES Renal 3,736 WIES DVA 851 WIES TAC 673 WIES TOTAL 141,732 Subacute admitted CRAFT Public 829 CRAFT Private 350 Rehab L1 Public 585 Rehab L2 Public 5,824 Rehab L2 Private 748 Rehab L2 DVA 497 GEM Public 32,273 GEM Private 5,553 GEM DVA 1,577 Palliative Care Public 5,678 Palliative Care Private 212 Palliative Care DVA 125 Subacute non-admitted Transition Care - Bed days 17,203 Transition care - Home days 10,174 Aged Care Aged Care Assessment Service 2,879 Residential Aged Care 53,510 Mental Health and Drug Services Mental Health Inpatient 63,070 Primary Health Community Health / Primary Care Programs (hours) 185,686

* Data presented in the Report of Operations is not final and is yet to be consolidated with the ictorianV Admitted Episode Dataset (VAED) and Elective Surgery Information System (ESIS).

38 Monash Health Annual Report 2012-2013 Summary of financial results

Financial 2012-2013 2011-2012 2010-2011 2009-2010 2008-2009 indicators $’000 $’000 $’000 $’000 $’000 Total Revenue 1,341,700 1,344,046 1,268,565 1,144,842 1,052,668 Total Expenses 1,344,438 1,318,318 1,267,748 1,173,541 1,056,921 Net Result for the (2,738) 25,728 817 (28,698) (4,253) year (incl. capital and specific items) Retained Surplus / (72,469) (68,470) (94,362) (94,743) (67,698) (Accumulated Deficit) Total Assets 1,050,623 1,048,724 989,975 971,186 972,779 Total Liabilities 397,416 392,779 359,758 341,786 314,514 Net Assets 653,207 655,945 630,217 629,400 658,265 Total Equity 653,207 655,945 630,217 629,400 658,265

Average collection 2012-2013 2011-2012 2010-2011 2009-2010 2008-2009 days Private 57 58 63 59 60 Transport Accident 111 98 166 74 104 Commission (TAC) Victorian Workcover 134 142 102 140 150 Authority (VWA) Nursing Home 29 31 29 26 30

Inpatient debtors < 30 Days 31 - 60 61 - 90 > 90 Days 2012-2013 2011-2012 2010-2011 ageing $’000 Days Days $’000 $’000 $’000 $’000 $’000 $’000 TAC - - - 74 74 - 260 Private 4,235 486 111 583 5,415 4,172 10,040 VWA 115 90 37 212 455 242 497 Nursing Home 347 62 26 232 667 400 660 Total 4,698 638 173 1,102 6,611 4,814 11,457

Consultants 2012-2013 2011-2012 2010-2011 2009-2010 $’000 $’000 $’000 $’000 Consultants’ cost 1,201,833 1,619,002 1,867,162 1,835,840 Total Number of 78 121 132 133 Consultants

Monash Health Annual Report 2012-2013 39 Summary of financial results

Consultants paid over Purpose of Start End date Total Expenditure Future $10,000 consultancy date approved $’000 expenditure project $’000 fee $’000 Ernst & Young Internal Audit and 1/07/12 30/06/13 630 630 0 projects Philip Chun Pty Ltd ESM audit 1/07/12 30/06/13 69 69 0 Procept Pty Ltd Clinical 1/06/13 30/06/13 60 60 0 LB & RB Family Trust Clinical 1/03/13 30/04/13 39 39 0 Deliberatepractive Pty Ltd Executive coaching 1/01/13 30/06/13 33 33 0 Kronos Payroll system 1/07/12 30/06/13 29 29 0 Care Training Australia Training/coaching 1/11/12 30/11/12 29 29 0 Pty Ltd Resolutions Australia Pty Employee assistance 1/07/12 30/06/12 25 25 0 Ltd program Jodie Lucas consulting Training/coaching 1/09/12 30/06/13 20 20 0 Batman Discretionary Funding reviews 1/07/12 30/06/13 18 18 0 Trust Quality Directions Australia Training/coaching 1/10/12 31/03/13 17 17 0 Pty Ltd Service Industry Advisory Human resources 1/07/12 30/05/13 17 17 0 Group Murdoch Children's Clinical 1/07/12 31/07/12 16 16 0 Research Institute Deloitte Tax FBT advice and 1/07/12 31/07/12 12 12 0 lodgement

40 Monash Health Annual Report 2012-2013 Financial summary

The 2012-2013 financial year saw continued growth in demand for services across Monash Health.

The key financial performance measure monitored by Monash Health management and the Department of Health is the ‘Net Result Before Capital and Specific Items’ and in 2012-2013 Monash Health achieved a surplus result of $1.072 million compared with a deficit result of $2.883 million in 2011-2012.

We are pleased to report that we exceeded our Statement of Priorities budget target by $572,000.

Monash Health’s ‘Comprehensive Result’, which includes capital and specific items, was a deficit of $2.738 million in 2012–2013 compared to a surplus of $25.728 million in 2011-2012. Included in the 2011-2012 ‘Comprehensive Result’ was a capital grant of $51.0 million from the Commonwealth Government for the Monash Health Translation Precinct project.

Total revenue from operations for the 2012-2013 financial year was $1,267 million which is an increase of $34.159 million or 2.8 per cent compared with the previous year. In the same period, operating expenditure was $1,266 million which is an increase of $30,207 million or 2.4 per cent.

Monash Health’s cash as at 30 June 2013 was $0.640 million compared with $49.498 million as at 30 June 2012. The reason for the decline in cash holding was primarily attributable to the $47.8 million investment of cash in term deposits.

The $62.9 million net cash inflow from operating activities was offset by the capital expenditure program undertaken to meet the needs of Monash Health.

Basil Ireland Executive Director Finance

Melbourne 30 August 2013

Monash Health Annual Report 2012-2013 41

explanatory notes

and Financial statements

42 Southern Health Annual Report 2011-2012 Declaration

Southern Health Annual Report 2011-2012 43 Auditor-General’s Report

44 Monash Health Annual Report 2012-2013 Auditor-General’s Report

Monash Health Annual Report 2012-2013 45 Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

Monash Health (formerly Southern Health) Comprehensive Operating Statement For the Year Ended 30 June 2013

Note Parent Parent Consolidated Consolidated Entity Entity 2013 2012 2013 2012 $'000 $'000 $'000 $'000

Revenue from Operating Activities 2 1,226,799 1,194,330 1,267,084 1,232,925 Employee Expenses 3 (925,872) (909,556) (944,145) (927,101) Non Salary Labour Costs 3 (14,226) (14,801) (15,252) (15,038) Supplies and Consumables 3 (180,242) (177,019) (182,023) (179,046) Other Expenses From Continuing Operations 3 (106,755) (96,663) (124,644) (114,624) Share of Net Result of Associates & Joint Ventures Accounted for using the Equity Method 11 52 - 52 -

Net Result Before Capital & Specific (244) (3,709) 1,072 (2,883) Items

Capital Purpose Income 2 68,758 111,120 68,758 111,120 Specific Income 2e 5,806 - 5,806 - Depreciation and Amortisation 4 (62,546) (66,995) (62,627) (67,084) Specific Expenses 3c (2,201) (811) (2,201) (811) Finance Costs 5 (5,449) (5,619) (5,449) (5,619) Expenditure using Capital Purpose Income 3 (8,097) (8,995) (8,097) (8,995)

NET RESULT FOR THE YEAR (3,973) 24,992 (2,738) 25,728

COMPREHENSIVE RESULT FOR THE YEAR (3,973) 24,992 (2,738) 25,728

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

46 Monash Health Annual Report 2012-2013 Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

Monash Health Annual Report 2012/2013

Monash Health (formerly Southern Health) Balance Sheet As at 30 June 2013

Parent Parent Note Entity Entity Consolidated Consolidated 2013 2012 2013 2012 $'000 $'000 $'000 $'000 Current Assets Cash and Cash Equivalents 6 5,161 54,932 5,161 54,933 Receivables 7 34,684 31,379 39,988 37,068 Inventories 8 17,391 22,586 17,391 22,586 Investments 9 47,800 - 47,800 - Other Assets 10 2,989 2,340 2,989 2,343 Total Current Assets 108,026 111,237 113,330 116,930

Non-Current Assets Receivables 7 39,685 34,733 39,685 34,734 Investments Accounted for using the Equity Method 11 3,335 3,283 3,335 3,283 Property, Plant and Equipment 12 884,774 884,503 885,764 885,563 Intangible Assets 13 8,509 8,121 8,509 8,121 Other Assets 10 - 93 - 93 Total Non-Current Assets 936,303 930,733 937,293 931,794 TOTAL ASSETS 1,044,329 1,041,970 1,050,623 1,048,724

Current Liabilities Payables 14 67,943 68,121 58,628 63,815 Borrowings 16 4,195 4,047 4,195 4,047 Provisions 17 203,516 194,268 206,450 194,453 Other Liabilities 18 5,254 5,434 5,254 5,434 Total Current Liabilities 280,907 271,870 274,527 267,749

Non-Current Liabilities Interest bearing liabilities 16 82,112 85,090 82,112 85,090 Provisions 17 40,213 39,940 40,777 39,940 Total Non-Current Liabilities 122,324 125,030 122,889 125,030 TOTAL LIABILITIES 403,232 396,900 397,416 392,779 NET ASSETS 641,097 645,070 653,207 655,945

EQUITY Property, Plant and Equipment Revaluation Surplus 19a 319,318 319,318 319,487 319,487 Restricted Specific Purpose Surplus 19a 4,294 3,033 4,294 3,033 Contributed Capital 19b 401,893 401,893 401,895 401,895 Accumulated Deficits 19c (84,408) (79,174) (72,469) (68,470) TOTAL EQUITY 641,097 645,070 653,207 655,945

Commitments 22 Contingent Assets and Contingent Liabilities 23

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

Monash Health Annual Report 2012-2013 47 Monash Health Annual Report2012-2013-FinancialStatementsandExplanatoryNotes 48 Monash Health Annual Report 2012/2013 Monash Health (formerly Southern Health) Monash Health Statement of Changes in Equity For the Year Ended 30 June 2013

Consolidated Property, Plant Restricted Contributed Accumulated Total Annual Report 2012-2013 and Equipment Specific Capital Deficits Revaluation Purpose Surplus Surplus

Note $'000 $'000 $'000 $'000 $'000 Balance at 1 July 2011 319,487 3,197 401,895 (94,362) 630,217 Net result for the year - - - 25,728 25,728 Transfers 19a,c - (164) - 164 - Balance at 30 June 2012 319,487 3,033 401,895 (68,470) 655,945 Net result for the year - - - (2,738) (2,738) Transfers 19a,c - 1,261 - (1,261) - Balance at 30 June 2013 319,487 4,294 401,895 (72,469) 653,207

Parent Property, Plant Restricted Contributed Accumulated Total and Equipment Specific Capital Deficits Revaluation Purpose Surplus Surplus

Note $'000 $'000 $'000 $'000 $'000 Balance at 1 July 2011 319,318 3,197 401,893 (104,329) 620,079 Net result for the year - - - 24,991 24,991 Transfers 19a,c - (164) - 164 - Balance at 30 June 2012 319,318 3,033 401,893 (79,174) 645,070 Net result for the year - - - (3,973) (3,973) Transfers - 1,261 - (1,261) - Balance at 30 June 2013 319,318 4,294 401,893 (84,408) 641,097

This Statement should be read in conjunction with the accompanying notes Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

Monash Health Annual Report 2012/2013

Monash Health (formerly Southern Health) Cash Flow Statement For the Year Ended 30 June 2013

Note Parent Parent Consolidated Consolidated Entity Entity 2013 2012 2013 2012 $'000 $'000 $'000 $'000 CASH FLOWS FROM OPERATING ACTIVITIES Operating Grants from Government 1,059,002 1,050,715 1,059,002 1,050,455 Patient and Resident Fees Received 37,263 21,252 37,263 21,252 Private Practice Fees Received 81,438 62,195 121,720 100,887 Donations and Bequests Received 2,312 2,390 2,312 2,390 GST Received from ATO 27,147 28,240 27,147 28,240 Recoupment from private practice for use of hospital facilities 11,028 23,315 11,028 23,315 Interest Received 4,442 2,350 4,442 2,350 Interest Paid - Car Park Loan (1,216) (1,246) (1,216) (1,246) Other Receipts 21,393 56,512 21,782 55,795 Employee Expenses Paid (920,968) (901,760) (941,963) (919,641) Payments for Supplies and Consumables (204,883) (206,310) (223,872) (225,849) Other Payments (107,712) (126,219) (108,388) (126,497) Cash Generated from Operations 9,246 11,434 9,257 11,451 Capital Grants from Government 53,673 88,661 53,673 88,661 NET CASH INFLOW FROM OPERATING 20 ACTIVITIES 62,919 100,095 62,930 100,112 CASH FLOWS FROM INVESTING ACTIVITIES Payments for investments (47,800) - (47,800) - Purchase of Property, Plant and Equipment (63,641) (52,533) (63,652) (52,550) Proceeds from Sale of Property, Plant and Equipment 135 307 135 307 NET CASH OUTFLOW FROM INVESTING ACTIVITIES (111,306) (52,226) (111,317) (52,243)

CASH FLOWS FROM FINANCING ACTIVITIES Repayment of Car Park Loan (i) (471) (442) (471) (442) NET CASH OUTFLOW FROM FINANCING ACTIVITIES (471) (442) (471) (442) NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS HELD (48,858) 47,427 (48,858) 47,427 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 49,498 2,071 49,498 2,071 CASH AND CASH EQUIVALENTS AT END OF YEAR 6 640 49,498 640 49,498

(i) In 2012 an adjustment of $1,246,000 was made to seperately disclose interest paid relating to Car Parking Loan to ensure consistency with current year disclosure.

This Statement should be read in conjunction with the accompanying notes

Monash Health Annual Report 2012-2013 49 Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

Note 1: Summary of Significant Accounting Policies

These annual financial statements represent the audited general purpose financial statements for Monash Health for the period ending 30 June 2013. The purpose of the report is to provide users with information about the stewardship of resources entrusted to Monash Health.

(a) Statement of compliance

These financial statements are a general purpose financial report which have been prepared in accordance with the Financial Management Act 1994 and applicable Australian Accounting Standards (AASs) which include interpretations issued by the Australian Accounting Standards Board (AASB). They are presented in a manner consistent with the requirements of AASB 101 Presentation of Financial Statements.

The financial statements also comply with relevant Financial Reporting Directions (FRDs) issued by the Department of Treasury and Finance, and relevant Standing Directions (SDs) authorised by the Minister for Finance.

Monash Health is a not-for profit entity and therefore applies the additional Aus paragraphs applicable to “not-for-profit” Health Services under the AASs.

The annual financial statements were authorised for issue by the Board of Monash Health on 30 August 2013.

(b) Basis of accounting preparation and measurement

Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported.

The accounting policies set out below have been applied in preparing the financial statements for the year ended 30 June 2013, and the comparative information presented in these financial statements for the year ended 30 June 2012.

The going concern basis was used to prepare the financial statements.

These financial statements are presented in Australian dollars, the functional and presentation currency of Monash Health.

The financial statements, except for cash flow information, have been prepared using the accrual basis of accounting. Under the accrual basis, items are recognised as assets, liabilities, equity, income or expenses when they satisfy the definitions and recognition criteria for those items, that is they are recognised in the reporting period to which they relate, regardless of when cash is received or paid.

The financial statements are prepared in accordance with the historical cost convention, except for:

50 Monash Health Annual Report 2012-2013 Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

• Non-current physical assets, which subsequent to acquisition, are measured at a revalued amount being their fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent losses. Revaluations are made and are re-assessed with sufficient regularity to ensure that the carrying amounts do not materially differ from their fair values;

• The fair value of assets other than land is generally based on their depreciated replacement value

Historical cost is based on the fair values of the consideration given in exchange for assets.

In the application of AASs, management is required to make judgments, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on professional judgments derived from historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision, and future periods if the revision affects both current and future periods. Judgements and assumptions made by management in the application of AASs that have significant effects on the financial statements and estimates, with a risk of material adjustments in the subsequent reporting period, relate to: • The fair value of land, buildings, infrastructure, plant and equipment (refer to Note 1(k)); • Superannuation expense (refer to note 1(g)); and

• Actuarial assumptions for the employee benefit provisions based on the likely tenure of existing staff, patterns of leave claims, future salary movements and future discount rates (refer Note 1(l)).

(c) Reporting Entity

The financial statements include all the controlled activities of Monash Health (formerly Southern Health).

Its principal address is:

246 Clayton Road Clayton Victoria 3168

A description of the nature of Monash Health’s operations and its principal activities is included in the report of operations, which does not form part of these financial statements.

Monash Health Annual Report 2012-2013 51 Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

(d) Principles of Consolidation

In accordance with AASB 127 Consolidated and Separate Financial Statements, the consolidated financial statements of Monash Health incorporates the assets and liabilities of all entities controlled by Monash Health as at 30 June 2013, and their income and expenses for that part of the reporting period in which control existed. Control exists when Monash Health has the power to govern the financial and operating policies of an entity so as to obtain benefit from its activities. In assessing control, potential voting rights that presently are exercisable are taken into account. The consolidated financial statements include the audited financial statements of Kitaya Holdings Pty Ltd. Consistent accounting policies have been adopted by all entities. In the process of preparing consolidated financial statements for Monash Health all material transactions and balances between consolidated entities are eliminated. Intersegment Transactions

Transactions between segments within Monash Health have been eliminated to reflect the extent of Monash Health’s operations as a group. Associates Investments in associates are accounted for in accordance with the policy outlined in Note 1(j) Financial Assets.

(e) Scope and presentation of financial statements Fund Accounting

Monash Health operates on a fund accounting basis and maintains three funds: Operating, Specific Purpose and Capital Funds. Monash Health’s Capital and Specific Purpose Funds include unspent capital donations and receipts from fund-raising activities conducted solely in respect of these funds. Services Supported By Health Services Agreement and Services Supported By Hospital and Community Initiatives

Activities classified as Services Supported by Health Services Agreement (HSA) are substantially funded by the Department of Health and includes Residential Aged Care Services (RACS) and are also funded from other sources such as the Commonwealth, patients and residents, while Services Supported by Hospital and Community Initiatives (H&CI) are funded by Monash Health's own activities or local initiatives and/or the Commonwealth. Comprehensive operating statement

The Comprehensive Operating Statement includes the subtotal entitled ‘Net Result Before Capital and Specific Items’ to enhance the understanding of the financial performance of Monash Health. This subtotal reports the result excluding items such as capital grants; assets received or provided free of charge, depreciation, expenditure using capital purpose income and items of an unusual nature and amount such as specific income and expenses. The exclusion of these items is made to enhance matching of income and expenses so as to facilitate the comparability and consistency of results between years and Victorian Public Health Services. The ‘Net Result Before Capital and Specific Items’ is used by the management of Monash Health, the

52 Monash Health Annual Report 2012-2013 Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

Department of Health and the Victorian Government to measure the ongoing performance of Health Services.

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

• Capital purpose income, which comprises all tied grants, donations and bequests received for the purpose of acquiring non-current assets, such as capital works, plant and equipment or intangible assets. It also includes donations of plant and equipment (refer Note 1 (f)). Consequently the recognition of revenue as capital purpose income is based on the intention of the provider of the revenue at the time the revenue is provided.

• Specific income/expense, comprises the following items, where material: o Redundancy payments o Specified State Grants

• Impairment of financial and non-financial assets, includes all impairment losses (and reversal of previous impairment losses), which have been recognised in accordance with Note 1 (j)

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

• Assets provided or received free of charge (refer to Note 1 (f))

• Expenditure using capital purpose income, comprises expenditure which either falls below the asset capitalisation threshold or doesn’t meet asset recognition criteria and therefore does not result in the recognition of an asset in the balance sheet, where funding for that expenditure is from capital purpose income. Balance sheet

Assets and liabilities are categorised either as current or non-current (non-current being those assets or liabilities expected to be recovered/settled more than 12 months after reporting period), are disclosed in the notes where relevant.

Statement of changes in equity

The statement of changes in equity presents reconciliations of each non-owner and owner equity opening balance at the beginning of the reporting period to the closing balance at the end of the reporting period. It also shows separately changes due to amounts recognised in the comprehensive result and amounts recognised in other comprehensive income.

Cash flow statement

Cash flows are classified according to whether or not they arise from operating activities, investing activities, or financing activities. This classification is consistent with requirements under AASB 107 Statement of Cash Flows.

For the cash flow statement presentation purposes, cash and cash equivalents includes bank overdrafts, which are included as current borrowings in the balance sheet.

Monash Health Annual Report 2012-2013 53 Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

Rounding

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

Minor discrepancies in tables between totals and sum of components are due to rounding. Comparative Information Where necessary the previous year’s figures have been reclassified to facilitate comparisons.

(f) Income from transactions Income is recognised in accordance with AASB 118 Revenue and is recognised as to the extent that it is probable that the economic benefits will flow to Monash Health and the income can be reliably measured. Unearned income at reporting date is reported as income received in advance. Amounts disclosed as revenue are where applicable, net of returns, allowances and duties and taxes. Government Grants and other transfers of income (other than contributions by owners)

In accordance with AASB 1004 Contributions, government grants and other transfers of income (other than contributions by owners) are recognised as income when Monash Health gains control of the underlying assets irrespective of whether conditions are imposed on Monash Health’s use of the contributions.

Contributions are deferred as income in advance when Monash Health has a present obligation to repay them and the present obligation can be reliably measured. Indirect Contributions from the Department of Health

• Insurance is recognised as revenue following advice from the Department of Health. • Long Service Leave (LSL) – Revenue is recognised upon finalisation of movements in LSL liability in line with the arrangements set out in the Metropolitan Health and Aged Care Services Division Hospital Circular 05/2013. Patient and Resident Fees

Patient fees represents revenue earned from the provision of patient services by Monash Health. Patient fees are recognised as revenue at the time invoices are raised. Private Practice Fees

Private practice fees are recognised as revenue at the time invoices are raised. Revenue from commercial activities

Revenue from commercial activities such as commercial laboratory medicine is recognised at the time invoices are raised. Donations and Other Bequests

Donations and bequests are recognised as revenue when received. If donations are for a special purpose, they may be appropriated to a surplus, such as the specific restricted purpose surplus.

54 Monash Health Annual Report 2012-2013 Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

Dividend Revenue

Dividend revenue is recognised when the right to receive payment is established. Interest Revenue

Interest revenue is recognised on a time proportionate basis that takes in account the effective yield of the financial asset. Sale of investments

The gain/loss on the sale of investments is recognised when the investment is realised. Fair value of assets and services received free of charge or for nominal consideration

Resources received free of charge or for nominal consideration are recognised at their fair value when the transferee obtains control over them, irrespective of whether restrictions or conditions are imposed over the use of the contributions, unless received from another Health Service or agency as a consequence of a restructuring of administrative arrangements. In the latter case, such transfer will be recognised at carrying value. Contributions in the form of services are only recognised when a fair value can be reliably determined and the service would have been purchased if not received as a donation. Other income Other income includes non-property rental, dividends, forgiveness of liabilities, and bad debt reversals.

(g) Expense Recognition Expenses are recognised as they are incurred and reported in the financial year to which they relate.

Cost of Goods Sold Costs of goods sold are recognised when the sale of an item occurs by transferring the cost or value of the item/s from inventories. Employee expenses

Employee expenses include:

• Wages and salaries;

• Accrued days off;

• Annual leave;

• Sick leave;

• Long service leave; and

• Superannuation expenses which are reported differently depending upon whether employees are members of defined benefit or defined contribution plans.

Defined contribution plans In relation to defined contribution (i.e. accumulation) superannuation plans, the associated expense is simply the employer contributions that are paid or payable in

Monash Health Annual Report 2012-2013 55 Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

respect of employees who are members of these plans during the reporting period. Contributions to defined contribution superannuation plans are expensed when incurred.

Defined benefit superannuation plans

The amount charged to the comprehensive operating statement in respect of defined benefit superannuation plans represents the contributions made by Monash Health to the superannuation plans in respect of the services of current Monash Health staff during the reporting period. Superannuation contributions are made to the plans based on the relevant rules of each plan, and is based upon actuarial advice.

Employees of Monash Health are entitled to receive superannuation benefits and Monash Health contributes to both the defined benefit and defined contribution plans. The defined benefit plans provide benefits based on years of service and final average salary.

Depreciation

All infrastructure assets, buildings, plant and equipment and other non-financial physical assets that have finite useful lives are depreciated. Depreciation begins when the asset is available for use, which is when it is in the location and condition necessary for it to be capable of operating in a manner intended by management. Depreciation is generally calculated on a straight line basis, at a rate that allocates the asset value, less any estimated residual value over its estimated useful life. Estimates of the remaining useful lives and depreciation method for all assets are reviewed at least annually, and adjustments made where appropriate. This depreciation charge is not funded by the Department of Health. Assets with a cost in excess of $1,000 are capitalised and depreciation has been provided on depreciable assets so as to allocate their cost or valuation over their estimated useful lives. The following table indicates the expected useful lives of non-current assets on which the depreciation charges are based.

2013 2012 Buildings - Structure Shell Building Fabric 40 to 70 years 40 to 70 years - Site Engineering Services and Central Plant 22 to 30 years 22 to 30 years Central Plant - Fit Out 22 to 30 years 22 to 30 years - Trunk Reticulated Building Systems 22 to 30 years 22 to 30 years Plant and Equipment 3 to 10 years 3 to 10 years Medical Equipment 3 to 10 years 3 to 10 years Computers and Communication 3 years 3 years Furniture and Fitting Up to 10 years Up to 10 years Motor Vehicles 4 years 4 years Intangible Assets (with finite useful lives) 5 years 5 years Leased Buildings 45 years 45 years Leased Medical Equipment 3 to 10 years 3 to 10 years

Please note: the estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting period, and adjustments made where appropriate.

56 Monash Health Annual Report 2012-2013 Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

As part of the buildings valuation, building values were separated into components and each component assessed for its useful life which is represented above.

Amortisation

Amortisation is allocated to intangible assets with finite useful lives on a systematic (typically straight-line) basis over the asset’s useful life. Amortisation begins when the asset is available for use, that is, when it is in the location and condition necessary for it to be capable of operating in the manner intended by management. The consumption of intangible assets with finite useful lives is classified as amortisation. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each annual reporting period. In addition, an assessment is made at each reporting date to determine whether there are indicators that the intangible asset concerned is impaired. If so, the assets concerned are tested as to whether their carrying value exceeds their recoverable amount. Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually or whenever there is an indication that the asset may be impaired. The useful lives of intangible assets that are not being amortised are reviewed each period to determine whether events and circumstances continue to support an indefinite useful life assessment for that asset. In addition, Monash Health tests all intangible assets with indefinite useful lives for impairment by comparing the recoverable amount for each asset with its carrying amount: • annually; and • whenever there is an indication that the intangible asset may be impaired. Any excess of the carrying amount over the recoverable amount is recognised as an impairment loss. Finance Costs

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

Finance costs include: • interest on bank overdrafts and short-term and long-term borrowings (interest expense is recognised in the period in which it is incurred); • amortisation of discounts or premiums relating to borrowings; • amortisation of ancillary costs incurred in connection with the arrangement of borrowings; and • finance charges in respect of finance leases recognised in accordance with AASB 117 Leases. Grants and other transfers Grants and other transfers to third parties (other than contribution to owners) are recognised as an expense in the reporting period in which they are paid or payable. They include transactions such as: grants, subsidies and personal benefit payments made in cash to individuals.

Other operating expenses

Monash Health Annual Report 2012-2013 57 Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

Other operating expenses generally represent the day-to-day running costs incurred in normal operations and include:

Supplies and consumables Supplies and services costs which are recognised as an expense in the reporting period in which they are incurred. The carrying amounts of any inventories held for distribution are expensed when distributed.

Bad and doubtful debts Refer to Note 1 (j) Impairment of financial assets.

(h) Other comprehensive income Other comprehensive income measures the change in volume or value of assets or liabilities that do not result from transactions.

Net gain/(loss) on non-financial assets Net gain/(loss) on non-financial assets and liabilities includes realised and unrealised gains and losses as follows:

Revaluation gains/(losses) of non-financial physical assets Refer to Note 1(k) Revaluations of non-financial physical assets.

Disposal of non-financial assets Any gain or loss on the disposal of non-financial assets is recognised at the date of disposal and is determined after deducting from the proceeds the carrying value of the asset at that time.

Net gain/(loss) on financial instruments Net gain/(loss) on financial instruments includes: o realised and unrealised gains and losses from revaluations of financial instruments at fair value; o impairment and reversal of impairment for financial instruments at amortised cost (refer to Note 1 (j)); and o disposals of financial assets and derecognition of financial liabilities

Revaluations of financial instrument at fair value Refer to Note 1 (i) Financial instruments.

Share of net profits/(losses) of associates and joint entities, excluding dividends. Refer to Note 1 (d) Basis of consolidation.

Other gains/(losses) from other comprehensive income Other gains/(losses) include: o the revaluation of the present value of the long service leave liability due to changes in the bond interest rates; and

58 Monash Health Annual Report 2012-2013 Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

o transfer of amounts from the reserves to accumulated surplus or net result due to disposal or derecognition or reclassification.

(i) Financial instruments Financial instruments arise out of contractual arrangements that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Due to the nature of Monash Health’s activities, certain financial assets and financial liabilities arise under stature rather than contract. Such financial assets and financial liabilities do not meet the definition of financial instruments in AASB 132 Financial Instruments: Presentation. For example, statutory receivables arising from taxes, fines and penalties do not meet the definition of financial instruments as they do not arise under contract. Where relevant, for note disclosure purposes, a distinction has been made between those financial assets and liabilities that meet the definition of financial instruments in accordance with AASB 132 and those that do not. The following refers to financial instruments unless otherwise stated: Categories of non-derivative financial instruments Financial assets and liabilities at fair value through profit or loss

Financial assets are categorised at fair value through profit or loss at trade date if they are classified as held for trading or designated as such upon initial recognition. Financial instrument assets are designated at fair value through profit or loss on the basis that the financial assets form part of a group of financial assets that are managed by the entity concerned based on their fair values, and have their performance evaluated in accordance with documented risk management and investment strategies. Financial instruments at fair value through profit or loss are initially measured at fair value and attributable transaction costs are expensed as incurred. Subsequently, any changes in fair value are recognised in the net result as other comprehensive income. Loans and receivables

Loans and receivables are financial instrument assets with fixed and determinable payments that are not quoted in an active market. These assets are initially recognised at fair value plus any directly attributable transaction costs. Subsequent to initial measurement any loans and receivables are measured at amortised cost using the effective interest rate method, less any impairment. Loans and receivables category includes cash and deposits (refer Note 1(j)), term deposits with greater maturity than three months, trade receivables, loans and other receivables but not statutory receivables. The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial assets, or where appropriate, a shorter period. Financial liabilities at amortised cost

Financial instrument liabilities are initially recognised on the date they are originated. They are initially measured at fair value plus any directly attributable transaction costs.

Monash Health Annual Report 2012-2013 59 Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

Subsequent to initial recognition, these financial instruments are measured at amortised cost with any difference between the initial recognised amount and the redemption value being recognised in profit and loss over the period of the interest-bearing liability, using the effective interest rate method. Financial instrument liabilities measured at amortised cost include all of Monash Health’s contractual payables, deposits held and advances received, and interest-bearing arrangements other than those designated at fair value through profit or loss.

(j) Financial assets Cash and Cash Equivalents

Cash and cash equivalents comprise cash on hand and cash at bank, deposits at call and highly liquid investments with an original maturity of three months or less, which are held for the purpose of meeting short term cash commitments rather than for investment purposes, which are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value. Receivables

Receivables consist of:

• Statutory receivables, which includes predominantly amounts owing from the Victorian Government and Goods and Services Tax (“GST”) input tax credits recoverable; and

• Contractual receivables, which includes mainly debtors in relation to goods and services, loans to third parties, accrued investment income, and finance lease receivables.

Trade debtors are carried at nominal amounts due and are due for settlement within 30 days from the date of recognition. Collectability of debts is reviewed on an ongoing basis, and debts which are known to be uncollectible are written off. A provision for doubtful debts is recognised when there is objective evidence that the debts may not be collected and bad debts are written off when identified.

Receivables that are contractual are classified as financial instruments and classified as loans and receivables. Statutory receivables are recognised and measured similarly to contractual receivables (except for impairment), but are not classified as financial instruments because they do not arise from a contract.

Receivables are recognised initially at fair value and subsequently measured at amortised cost, using the effective interest method, less any accumulated impairment. Investments and Other Financial Assets

Investments are recognised and derecognised on trade date where purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, net of transaction costs. Investments are classified in the following categories:

• Financial assets at fair value through profit or loss;

60 Monash Health Annual Report 2012-2013 Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

• Loans and receivables; and Monash Health classifies its other financial assets between current and non-current assets based on the purpose for which the assets were acquired. Management determines the classification of its other financial assets at initial recognition. Monash Health assesses at each balance sheet date whether a financial asset or group of financial assets is impaired. All financial assets, except those measured at fair value through profit or loss are subject to annual review for impairment. Investments accounted for using the equity method

Associates are those entities over which Monash Health exercises significant influence, but not control.

Investments in associates are accounted for using the equity method of accounting. Under the equity method for accounting, Monash Health’s share of the post-acquisition profits or losses of associates is recognised in the net result and its share of post- acquisition changes in revaluation surpluses and any other reserves, are recognised in both the comprehensive operating statement and the statement of changes in equity. The cumulative post acquisition movements are adjusted against the cost of the investment.

Joint ventures are contractual arrangements between Monash Health and one or more other parties to undertake an economic activity that is subject to joint control. Joint control only exists when the strategic financial and operating decisions relating to the activity require the unanimous consent of the parties sharing control (the venturers).

Interests in jointly controlled entities are accounted for in the financial statements using the equity method, as applied to investments in associates.

Details of these investments are set out in note 11. Derecognition of financial assets

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when: • the rights to receive cash flows from the asset have expired; or • Monash Health retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full without material delay to a third party under a ‘pass through’ arrangement; or • Monash Health has transferred its rights to receive cash flows from the asset and either: (a) has transferred substantially all the risks and rewards of the asset; or (b) has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

Where Monash Health has neither transferred nor retained substantially all the risks and rewards or transferred control, the asset is recognised to the extent of Monash Health’s continuing involvement in the asset.

Impairment of Financial Assets

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At the end of each reporting period Monash Health assesses whether there is objective evidence that a financial asset or group of financial assets is impaired. All financial instrument assets, except those measured at fair value through profit or loss, are subject to annual reviews for impairment.

Receivables are assessed for bad and doubtful debts on a regular basis. Bad debts considered as written off and allowances for doubtful receivables are expensed and classified as “impairment of financial assets” in the net result.

The amount of the allowance is the difference between the financial asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate.

Where the fair value of an investment in an equity instrument at balance date has reduced by 20 percent or more than its cost price or where its fair value has been less than its cost price for a period of 12 or more months, the financial asset is treated as impaired.

In assessing impairment of statutory (non-contractual) financial assets, which are not financial instruments, professional judgement is applied in assessing materiality using estimates, averages and other computational methods in accordance with AASB 136 Impairment of Assets. Net Gain/(Loss) on Financial Instruments

Net gain/(loss) on financial instruments includes: • realised and unrealised gains and losses from revaluations of financial instruments that are designated at fair value through profit or loss; • impairment and reversal of impairment for financial instruments at amortised cost; and • disposals of financial assets and derecognition of financial liabilities.

Revaluations of Financial Instruments at Fair Value

The revaluation gain/(loss) on financial instruments at fair value excludes dividends or interest earned on financial assets.

(k) Non-Financial Assets Inventories

Inventories include goods and other property held either for sale, consumption or for distribution at no or nominal cost in the ordinary course of business operations. It includes land held for sale and excludes depreciable assets. Inventories held for distribution are measured at cost, adjusted for any loss of service potential. All other inventories are measured at the lower of cost and net realisable value. The bases used in assessing loss of service potential for inventories held for distribution include current replacement cost and technical or functional obsolescence. Technical obsolescence occurs when an item still functions for some or all of the tasks it was originally acquired to do, but no longer matches existing technologies. Functional

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obsolescence occurs when an item no longer functions the way it did when it was first acquired. Cost for all other inventory is measured on the basis of weighted average cost. Inventories acquired at no cost or for nominal consideration are measured at current replacement cost at the date of acquisition. Property, Plant and Equipment

All non-current physical assets are measured initially at cost and subsequently revalued at fair value less accumulated depreciation and impairment. When an asset is acquired for no or nominal cost, the cost is its fair value at the date of acquisition.

The initial costs for non-physical assets under finance lease (refer Note 1(m)) is measured at amounts equal to the fair value of the leased asset or, if lower, the present value of minimum lease payments, each determined at the inception of the lease.

Crown Land is measured at fair value with regard to the property’s highest and best use after due consideration is made for any legal or constructive restrictions imposed on the asset, public announcements or commitments made in relation to the intended use of the asset. Theoretical opportunities that may be available in relation to the asset(s) are not taken into account until it is virtually certain that any restrictions will no longer apply.

Land and Buildings are recognised initially at cost and subsequently measured at fair value less accumulated depreciation and impairment.

Plant, Equipment and Vehicles are recognised initially at cost and subsequently measured at fair value less accumulated depreciation and impairment. Depreciated historical cost is generally a reasonable proxy for fair value because of the short lives of the assets concerned.

Cultural, Collections, Heritage Assets and Other Non-Current Physical Assets that the State intends to preserve because of their unique historical, cultural or environmental attributes are measured at the cost of replacing the asset less, where applicable, accumulated depreciation calculated on the basis of such cost to reflect the already consumed or expired future economic benefits of the asset.

Restrictive nature of cultural and heritage assets, Crown land and infrastructure assets During the reporting period, Monash Health may hold cultural assets, heritage assets, Crown land and infrastructure assets. Such assets are deemed worthy of preservation because of the social rather than financial benefits they provide to the community. The nature of these assets means that there are certain limitations and restrictions imposed on their use and/or disposal.

Leasehold improvements The cost of a leasehold improvement is capitalised as an asset and depreciated over the shorter of the remaining term of the lease or the estimated useful life of the improvements.

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Revaluations of Non-current Physical Assets

Non-current physical assets are measured at fair value and are revalued in accordance with FRD 103D Non-current physical assets. This revaluation process normally occurs at least every five years, based upon the asset’s Government Purpose Classification, but may occur more frequently if fair value assessments indicate material changes in values. Independent valuers are used to conduct these scheduled revaluations and any interim revaluations are determined in accordance with the requirements of the FRDs. Revaluation increments or decrements arise from differences between an asset’s carrying value and fair value.

Revaluation increments are recognised in ‘other comprehensive income’ and are credited directly to the asset revaluation surplus, except that, to the extent that an increment reverses a revaluation decrement in respect of that same class of asset previously recognised as an expense in net result, the increment is recognised as income in the net result.

Revaluation decrements are recognised in ‘other comprehensive income’ as expenses in the net result, except that, to the extent that a credit balance exists in the asset revaluation surplus in respect of the same class of assets, they are debited directly to the asset revaluation surplus.

Revaluation increases and revaluation decreases relating to individual assets within an asset class are offset against one another within that class but are not offset in respect of assets in different classes.

Revaluation surplus is not transferred to accumulated funds on derecognition of the relevant asset.

In accordance with FRD 103D, Monash Health’s non-current physical assets were assessed at balance sheet date to determine whether revaluation of the non-current physical assets was required. Intangible Assets

Intangible assets represent identifiable non-monetary assets without physical substance such as computer software. Intangible assets are initially recognised at cost. Subsequently, intangible assets with finite useful lives are carried at cost less accumulated amortisation and accumulated impairment losses. Costs incurred subsequent to initial acquisition are capitalised when it is expected that additional future economic benefits will flow to Monash Health. Expenditure on research activities is recognised as an expense in the period on which it is incurred. An internally-generated intangible asset arising from development (or from the development phase of an internal project) is recognised if, and only if, all of the following are demonstrated: a. the technical feasibility of completing the intangible asset so that it will be available for use or sale; b. an intention to complete the intangible asset and use or sell it; c. the ability to use or sell the intangible asset;

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d. the intangible asset will generate probable future economic benefits; e. the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and f. the ability to measure reliably the expenditure attributable to the intangible asset during its development.

Other non-financial assets

Prepayments Other non-financial assets include prepayments which represent payments in advance of receipt of goods or services or that part of expenditure made in one accounting period covering a term extending beyond that period. Disposal of Non-Financial Assets

Any gain or loss on the sale of non-financial assets is recognised in the comprehensive operating statement at the date of disposal (refer Note 1(h)). Impairment of Non-Financial Assets

Apart from intangible assets with indefinite useful lives, all other non-financial assets are tested annually for impairment (as described below) and whenever there is an indication of impairment, except for: • inventories; and • assets arising from construction contracts. If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their possible recoverable amount. Where an asset’s carrying value exceeds its recoverable amount, the difference is written-off as an expense except to the extent that the write-down can be debited to an asset revaluation surplus amount applicable to that same class of asset.

If there is an indication that there has been a change in the estimate of an asset’s recoverable amount since the last impairment loss was recognised, the carrying amount shall be increased to its recoverable amount. This reversal of the impairment loss occurs only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised in prior years.

It is deemed that, in the event of the loss or destruction of an asset, the future economic benefits arising from the use of the asset will be replaced unless a specific decision to the contrary has been made. The recoverable amount for most assets is measured at the higher of depreciated replacement cost and fair value less costs to sell. Recoverable amount for assets held primarily to generate net cash inflows is measured at the higher of the present value of future cash flows expected to be obtained from the asset and fair value less costs to sell.

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(l) Liabilities Payables

These amounts consist predominantly of liabilities for goods and services.

Payables are initially recognised at fair value, and then subsequently carried at amortised cost and represent liabilities for goods and services provided to Monash Health prior to the end of the financial year that are unpaid, and arise when Monash Health becomes obliged to make future payments in respect of the purchase of these goods and services.

The normal credit terms are usually Nett 30 - 35 days.

Statutory payables represent liabilities for such items as GST and Fringe Benefits Tax payable. Statutory payables are recognised and measured similarly to contractual payables but are not classified as financial instruments and not included in the category of financial liabilities at amortised cost because they do not arise from a contract. Borrowings

All borrowings are initially recognised at fair value of the consideration received, less directly attributable transaction costs (refer also to note 1(m) leases) the measurement basis subsequent to initial recognition depends on, whether Monash Health has categorised its borrowings as either, financial liabilities designated at fair value through profit or loss, or financial liabilities at amortised cost. Any difference between the initial recognised amount and the redemption value is recognised in net result over the period of the borrowing using the effective interest method. Provisions

Provisions are recognised when Monash 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 reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows, using a discount rate that reflects the time value of money and risks specific to the provision.

When some or all of the economic benefits required to settle a provision are expected to be received from a third party, the receivable is recognised as an asset if it is virtually certain that recovery will be received and the amount of the receivable can be measured reliably. Employee Benefits

These provisions arise for benefits accruing to employees in respect of wages and salaries, annual leave and long services leave rendered to the reporting date.

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

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

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12 months of the reporting date are recognised in the provision for employee benefits in respect of employee’s services up to the reporting date, and are classified as current liabilities and measured at their nominal values.

Those liabilities that are not expected to be settled within 12 months are also recognised in the provision for employee benefits as current liabilities, but are measured at present value of the amounts expected to be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement.

Long Service Leave The liability for long service leave (LSL) is recognised in the provision for employee benefits.

Current Liability – unconditional LSL (representing 10 or more years of continuous service) is disclosed in the notes to the financial statements as a current liability even where Monash Health does not expect to settle the liability within 12 months because it will not have the unconditional right to defer the settlement of the entitlement should an employee take leave within 12 months.

The components of this current LSL liability are measured at:

• present value – component that Monash Health does not expect to settle within 12 months; and

• nominal value – component that Monash Health expects to settle within 12 months.

Non-Current Liability – conditional LSL (representing less than 10 years of continuous service) is disclosed as a non-current liability. There is an unconditional right to defer the settlement of the entitlement until the employee has completed the requisite years of service. Conditional LSL is required to be measured at present value.

Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using interest rates of Commonwealth Government guaranteed securities in Australia. On-Costs Employee benefit on-costs, such as payroll tax, workers compensation and superannuation are recognised together with provisions for employee benefits. Superannuation liabilities

Monash Health does not recognise any unfunded defined benefit liability in respect of the superannuation plans because Monash Health has no legal or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as they fall due. The Department of Treasury and Finance administers and discloses the State’s defined benefit liabilities in its financial statements. Termination Benefits

Termination benefits are payable when employment is terminated before the normal retirement date or when an employee accepts voluntary redundancy in exchange for these benefits.

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Liabilities for termination benefits are recognised when a detailed plan for the termination has been developed and a valid expectation has been raised with those employees affected that the terminations will be carried out. The liabilities for termination benefits are recognised in other creditors unless the amount or timing of the payments is uncertain, in which case they are recognised as a provision. Derecognition of financial liabilities

A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires.

When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised as an expense in the estimated consolidated comprehensive operating statement.

(m) Leases A lease is a right to use an asset for an agreed period of time in exchange for payment. Leases are classified at their inception as either operating or finance leases based on the economic substance of the agreement so as to reflect the risks and rewards incidental to ownership. Leases of property, plant and equipment are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. Finance Leases

Finance leases are recognised as assets and liabilities at amounts equal to the fair value of the lease property or, if lower, the present value of the minimum lease payment, each determined at the inception of the lease. The lease asset is depreciated over the shorter of the estimated useful life of the asset or the term of the lease. Minimum lease payments are apportioned between reduction of the outstanding lease liability, and the periodic finance expense which is calculated using the interest rate implicit in the lease, and charged directly to the comprehensive operating statement. Contingent rentals associated with finance leases are recognised as an expense in the period in which they are incurred. Operating Leases

When the entity is a lessor, rental income from operating lease is recognised on a straight-line basis over the term of the relevant lease. When the entity is a lessee, operating lease payments, including any contingent rentals, are recognised as an expense in the comprehensive operating statement on a straight line basis over the lease term, except where another systematic basis is more representative of the time pattern of the benefits derived from the use of the leased asset. The leased asset is not recognised in the Balance Sheet.

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Lease Incentives

All incentives for the agreement of a new or renewed operating lease are recognised as an integral part of the net consideration agreed for the use of the leased asset, irrespective of the incentive’s nature of form or the timing of the payments. In the event that lease incentives are received by the lessee to enter into operating leases, such incentives are recognised as a liability. The aggregate benefits of incentives are recognised as a reduction of rental expense on a straight line basis, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset is diminished. Leasehold Improvements

The cost of leasehold improvements are capitalised as an asset and depreciated over the remaining term of the lease or the estimated useful life of the improvements, whichever is the shorter.

(n) Equity Contributed Capital

Consistent with Australian Accounting Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities and FRD 119 Contributions by Owners, appropriations for additions to the net asset base have been designated as contributed capital. Other transfers that are in the nature of contributions or distributions that have been designated as contributed capital are also treated as contributed capital. Property, Plant & Equipment Revaluation Surplus

The asset revaluation surplus is used to record increments and decrements on the revaluation of non-current physical assets. Specific Restricted Purpose Surplus

A specific restricted purpose surplus is established where Monash Health has possession or title to the funds but has no discretion to amend or vary the restriction and/or condition underlying the funds received.

(o) Commitments Commitments for future expenditure include operating and capital commitments arising from contracts. These commitments are disclosed by way of a note (refer to note 21) at their nominal value and are inclusive of the goods and services tax (“GST”) payable. In addition, where it is considered appropriate and provides additional relevant information to users, the net present values of significant individual projects are stated. These future expenditures cease to be disclosed as commitments once the related liabilities are recognised on the balance sheet.

(p) Contingent assets and contingent liabilities Contingent assets and contingent liabilities are not recognised in the balance sheet, but are disclosed by way of note and, if quantifiable, are measured at nominal value.

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Contingent assets and contingent liabilities are presented inclusive of GST receivable or payable respectively.

(q) Service concession arrangements

Monash Health sometimes enters into certain arrangements with private sector participants to design and construct or upgrade assets used to provide public services. These arrangements are typically complex and usually include the provision of operational and maintenance services for a specified period of time. These arrangements are often referred to as either public private partnerships or service concession arrangements (SCAs).

These SCAs usually take one of two main forms. In the more common form, Monash Health pays the operator over the period of the arrangement, subject to specified performance criteria being met. At the date of commitment to the principal provisions of the arrangement, these estimated periodic payments are allocated between a component related to the design and construction or upgrading of the asset and components related to the ongoing operation and maintenance of the asset. The former component is accounted for as a lease payment in accordance with the lease policy (see Note 1(m)). The remaining components are accounted for as commitments (see Note 1(o)) for operating costs which are expensed in the comprehensive operating statement as they are incurred.

(r) Goods and Services Tax (GST) Income, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the balance sheet.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the taxation authority, are presented as an operating cash flow.

Commitments for expenditure and contingent assets and liabilities are presented on a gross basis.

(s) Events after the reporting period Assets, liabilities, income or expenses arise from past transactions or other past events. Where the transactions result from an agreement between Monash Health and other parties, the transactions are only recognised when the agreement is irrevocable at or before the end of the reporting period. Adjustments are made to amounts recognised in the financial statements for events which occur after the reporting period and before the date the financial statements are authorised for issue, where those events provide information about conditions which existed in the reporting period. Note disclosure is made about events between the end of the reporting period and the date the financial

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statements are authorised for issue where the events relate to conditions which arose after the end of the reporting period and which may have a material impact on the results of subsequent reporting periods.

(t) Foreign currency All foreign currency transactions during the financial year are brought to account using the exchange rate in effect at the date of the transaction.

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(u) New Accounting Standards and Interpretations Certain new Australian accounting standards and interpretations have been published that are not mandatory for the 30 June 2013 reporting period. DTF assess the impact of all the new standards and interpretations and advises Monash Health of their applicability and early adoption where applicable.

As at 30 June 2013, the following standards and interpretations had been issued but were not mandatory for the reporting period ending 30 June 2013. Monash Health has not and does not intend to adopt these standards early.

Standard/Interpretation Summary Applicable Impact on public sector entity for annual financial statements reporting periods beginning on AASB 9 Financial This standard simplifies 1 Jan 2015 Subject to AASB’s further instruments requirements for the classification modifications to AASB 9, together and measurement of financial with the anticipated changes assets resulting from Phase 1 of the resulting from the staged projects IASB’s project to replace IAS 39 on impairments and hedge Financial Instruments: Recognition accounting, details of impacts will and Measurement (AASB 139 be assessed. Financial Instruments: Recognition and Measurement). AASB 10 Consolidated This Standard forms the basis for 1 Jan 2014 Not-­‐for-­‐profit entities are not Financial Statements determining which entities should permitted to apply this Standard be consolidated into an entity’s prior to the mandatory financial statements. AASB 10 application date. defines ‘control’ as requiring exposure or rights to variable Subject to AASB’s final returns and the ability to affect deliberations on ED 238 and any those returns through power over modifications made to AASB 10 an investee, which may broaden for not-­‐for-­‐profit entities, the the concept of control for public entity will need to re-­‐assess the sector entities. nature of its relationships with The AASB has issued an exposure other entities, including those draft ED 238 Consolidated that are currently not Financial Statements – Australian consolidated. Implementation Guidance for -­‐ Not for-­‐Profit Entities that explains and illustrates how the principles in the Standard apply from the perspective of -­‐ not for-­‐profit entities in the private and public sectors. AASB 11 Joint This Standard deals with the 1 Jan 2014 Not-­‐for-­‐profit entities are not Arrangements concept of joint control, d an sets permitted to apply this Standard out a new principles-­‐based prior to the mandatory approach for application date. determining the type of joint arrangement that exists and the Subject to AASB’s final corresponding accounting deliberations and any

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Standard/Interpretation Summary Applicable Impact on public sector entity for annual financial statements reporting periods beginning on treatment. The new categories of modifications made to AASB 11 joint arrangements under AASB 11 for not-­‐for-­‐profit entities, the are more aligned to the actual entity will need to assess the rights and obligations of the parties nature of arrangements with to the arrangement. other entities in determining whether a joint arrangement exists in light of AASB 11.

AASB 12 Disclosure of This Standard requires disclosure of 1 Jan 2014 Not-­‐for-­‐profit entities are not Interests in Other information that enables users of permitted to apply this Standard Entities financial statements to evaluate prior to the mandatory the nature of, and risks associated application date. with, interests in other entities and the effects of those interests on Impacts on level the and nature the financial statements. This of the disclosures will be assessed Standard replaces the disclosure based on the eventual requirements in AASB 127 Separate implications arising from AASB 10, Financial Statements and AASB 131 AASB 11 and AASB 128 Interests in Joint . Ventures Investments in Associates and The exposure draft ED 238 Joint Ventures. proposes to add some implementation guidance to AASB 12, explaining and illustrating the definition of a ‘strucutured entity’ from a not-­‐for-­‐profit perspective. AASB 13 Fair Value This Standard outlines the 1 Jan 2013 Disclosure for fair value Measurement requirements for measuring the measurements using fair value of assets and liabilities unobservable inputs are relatively and replaces the existing fair value detailed compared to disclosure definition and guidance in other for fair value measurements using Australian accounting standards. observable inputs. Consequently, AASB 13 includes a ‘fair value the Standard may increase the hierarchy’ which ranks the disclosures required assets valuation technique inputs into measured using depreciated three levels using unadjusted replacement cost. quoted prices in active markets for identical assets or liabilities; other observable inputs; and unobservable inputs. AASB 119 Employee In this revised Standard for defined 1 Jan 2013 Not-­‐for-­‐profit entities are not Benefits benefit superannuation plans, permitted to apply this Standard there is a change to the prior to the mandatory methodology in the calculation of application date. superannuation expenses, in While the total superannuation particular there is now a change in expense is unchanged, the the split between superannuation revised methodology is expected interest expense (classified as to have a negative impact on the transactions) and actuarial gains net result from transactions a few

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Standard/Interpretation Summary Applicable Impact on public sector entity for annual financial statements reporting periods beginning on and losses (classified as ‘Other Victorian public sector entities economic flows – other that report superannuation movements in equity’) reported on defined benefit plans. the comprehensive operating statement.

AASB 127 Separate This revised Standard prescribes 1 Jan 2014 Not-­‐for-­‐profit entities are not Financial Statements the accounting and disclosure permitted to apply this Standard requirements for investments in prior to the mandatory subsidiaries, joint ventures and application date. The AASB is associates when an entity prepares assessing the applicability of separate financial statements. principles in AASB 127 -­‐ in a not for-­‐profit context. As such, the impact will be assessed after the AASB’s deliberation. AASB 128 Investments in This revised Standard sets out the 1 Jan 2014 Not-­‐for-­‐profit entities are not Associates and Joint requirements for the application of permitted to apply this Standard Ventures the equity method when prior to the mandatory accounting for investments in application date. The AASB is associates and joint ventures. assessing the applicability of principles in AASB 128 -­‐ in a not for-­‐profit context. As such, the impact will be assessed after the AASB’s deliberation. AASB 1053 Application This Standard establishes a 1 July 2013 The Victorian Government is of Tiers of Australian differential financial reporting currently considering the impacts Accounting Standards framework consisting of two of Reduced Disclosure tiers of reporting requirements Requirements (RDRs) for certain for preparing general purpose public sector entities, and has not decided if RDRs will be financial statements. implemented in ictorian the V public sector.

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(v) Category Groups Monash Health has used the following category groups for reporting purposes for the current and previous financial years.

Admitted Patient Services (Admitted Patients) comprises all recurrent health revenue/expenditure on admitted patient services, where services are delivered in public hospitals, or free standing day hospital facilities, or alcohol and drug treatment units or hospitals specialising in dental services, hearing and ophthalmic aids.

Mental Health Services (Mental Health) comprises all recurrent health revenue/expenditure on specialised mental health services (child and adolescent, general and adult, community and forensic) managed or funded by the state or territory health administrations, and includes: Admitted patient services (including forensic mental health), outpatient services, emergency department services (where it is possible to separate emergency department mental health services), community- based services, residential and ambulatory services.

Outpatient Services (Outpatients) comprises all recurrent health revenue/expenditure on public hospital type outpatient services, where services are delivered in public hospital outpatient clinics, or free standing day hospital facilities, or rehabilitation facilities, or alcohol and drug treatment units, or outpatient clinics specialising in ophthalmic aids or palliative care.

Emergency Department Services (EDS) comprises all recurrent health revenue/expenditure on emergency department services that are available free of charge to public patients.

Aged Care comprises revenue/expenditure from Home and Community Care (HACC) programs, Allied Health, Aged Care Assessment and support services.

Primary Health comprises revenue/expenditure for Community Health Services including health promotion and counselling, physiotherapy, speech therapy, podiatry and occupational therapy.

Off Campus, Ambulatory Services (Ambulatory) comprises all recurrent health revenue/expenditure on public hospital type services including palliative care facilities and rehabilitation facilities, as well as services provided under the following agreements: Services that are provided or received by hospitals (or area health services) but are delivered/received outside a hospital campus, services which have moved from a hospital to a community setting since June 1998, services which fall within the agreed scope of inclusions under the new system, which have been delivered within hospitals i.e. in rural/remote areas.

Residential Aged Care including Mental Health (RAC incl. Mental Health) referred to in the past as psychogeriatric residential services, comprises those Commonwealth-licensed residential aged care services in receipt of supplementary

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funding from the Department of Health under the mental health program. It excludes all other residential services funded under the mental health program, such as mental health funded community care units (CCUs) and secure extended care units (SECs).

Other Services excluded from Australian Health Care Agreement (AHCA) (Other) comprises revenue/expenditure for services not separately classified above, including: Public health services including Laboratory testing, Blood Borne Viruses / Sexually Transmitted Infections clinical services, Kooris liaison officers, immunisation and screening services, Drugs services including drug withdrawal, counselling and the needle and syringe program, Dental Health services including general and specialist dental care, school dental services and clinical education, Disability services including aids and equipment and flexible support packages to people with a disability, Community Care programs including sexual assault support, early parenting services, parenting assessment and skills development, and various support services. Health and Community Initiatives also falls in this category group.

76 Monash Health Annual Report 2012-2013 Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes - - (312) 1,096 2,595 2,350 3,175 3,174 7,254 2,330 1,495 4,184 9,600 5,025 11,021 11,394 10,561 38,596 21,744 11,815 51,000 13,171 56,745 11,760 18,017 11,302 36,565 28,663 74,448 33,688 12,888 969,727 111,120 Total 2012 $'000 1,344,046 1,232,925 1,036,056 30 June30 2013 Monash Health Monash - - 52 (301) 5,572 4,952 2,312 2,285 3,541 3,091 7,395 2,414 1,583 4,272 5,806 4,557 6,535 11,849 11,028 40,282 21,136 13,638 16,221 12,908 63,906 15,636 19,986 12,665 50,579 32,706 68,758 84,678 37,263 487,864 483,761 Total 2013 $'000 1,341,699 1,267,084 1,061,561 ------(312) 1,096 2,595 2,350 3,175 3,174 9,600 4,184 11,021 38,596 11,815 51,000 13,171 11,760 18,017 11,302 36,565 74,447 2012 H&CI $'000 111,120 229,108 117,988 ------52 (301) 5,572 2,312 2,285 3,541 3,091 4,272 5,806 11,849 40,282 13,638 12,908 15,636 19,986 12,665 50,579 68,758 84,679 204,175 129,559 Consolidated 2013 H&CI $'000 Notes To and Forming Part of the Financial Statements Financial the Statements of Part and Forming To Notes ------7,254 2,330 1,495 5,025 11,394 10,561 21,744 56,745 28,663 12,889 33,688 969,727 HSA 2012 $'000 1,114,938 1,114,938 1,036,056 ------4,952 7,395 2,414 1,583 4,557 6,536 11,028 21,136 16,221 63,906 32,706 37,263 487,864 483,761 HSA 2013 1,137,523 1,137,523 1,061,560 $'000 - - - (312) 1,096 2,595 2,350 3,175 3,174 7,254 2,330 1,495 4,184 9,600 5,025 11,021 11,394 10,561 21,744 11,815 51,000 13,171 11,760 18,017 11,302 36,565 56,745 28,663 74,448 12,889 33,688 969,727 111,120 Total 2012 $'000 1,305,450 1,194,330 1,036,056 - - - - 52 (301) 5,572 4,952 2,312 2,285 3,541 3,091 7,395 2,414 1,583 4,272 5,806 4,557 6,536 11,849 11,028 21,136 13,638 12,908 16,221 15,636 19,986 12,665 50,579 63,906 32,706 68,758 84,679 37,263 487,864 483,761 Total 2013 $'000 1,301,415 1,226,799 1,061,560 ------(312) 1,096 2,595 2,350 3,175 3,174 4,184 9,600 11,021 11,815 51,000 13,171 11,760 18,017 11,302 36,565 74,447 79,392 2012 H&CI $'000 111,120 190,512 ------52 Parent (301) 5,572 2,312 2,285 3,541 3,091 4,272 5,806 11,849 13,638 12,908 15,636 19,986 12,665 50,579 68,758 84,679 89,276 2013 H&CI $'000 163,892 ------1,495 7,254 2,330 5,025 11,394 10,561 21,744 56,745 28,663 12,889 33,688 969,727 1,114,938 1,114,938 1,036,056 HSA 2012 $'000 ------4,952 1,583 7,395 2,414 4,557 6,537 11,028 21,136 16,221 63,906 32,706 37,263 487,864 483,761 HSA 2013 $'000 1,137,523 1,137,523 1,061,560 Department of Health makes certain payments on behalf of Monash Health. These amounts have been brought to account in determining the operating result for the year by recording them as revenue and expenses. and as revenue them recording by year the for result operating the determining in account to brought been have amounts These Health. of Monash behalf on payments certain makes of Health Department Total Business Units & Specific Purpose Funds Purpose & Specific Units Business Total Recoupment from Private Practice for Use of Hospital of Facilities Use Private Practice for from Recoupment Donations & Bequests & Donations Private Hospital Fees (refer note 2b) note Private Hospital (refer Fees Dividends & Interest Activities Operating from Revenue Other Note 2: Revenue Total Revenue from Capital Purpose Income Other Capital Income Other Purpose 2a) note to (refer Revenue Total Total Revenue from Operating Activities Operating from Revenue Total - Other - Research Research - Capital Government Commonwealth Grants - State Pool Fund Administrator Fund Pool State - - Commonwealth Government Total Government Grants Health Contributions byIndirect of Department - Insurance Service Leave Long - - Laboratory Medicine - Property Income Casey Hospital for Funding - Revenue from Operating Activities Operating from Revenue Government Grants Department - Health of Services Victoria Human of Department - Dental Health Services - Victoria Residential - Subsidy Care Aged - Other (Recurring Grants) Total Indirect Contributions by Department of Health Fees & Resident Patient Total Funds Specific Units& Purpose Business Patient Activities Other Private - Practice and Fees Diagnostic - Imaging Services Pharmacy - Car - Park Capital Purpose Income Capital Grants Government State Targeted - Capital Equipment Works and 2d) note (refer Charge Received Assets of Free note (refer Disposal Assets Non-Financial on of Gain/(Loss) Net 2c) 2e) note (refer SpecificIncome for Accounted Ventures Joint & Associates ResultNet of of Share 11) note Equity Model the using (refer Patient and Resident Fees Patientand 2b) note Resident (refer Fees Patient and - 2b) note Residential - (refer Care Aged Indirect contributions DepartmentIndirect by of Health:

Monash Health Annual Report 2012-2013 77 Monash Health Annual Report2012-2013-FinancialStatementsandExplanatoryNotes 78 Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013 Monash Health Note 2a: Analysis of Revenue by Source (based on the consolidated view of note 2) Admitted Mental RAC incl. Mental Patients Outpatients EDS Ambulatory Health Health Aged Care Primary Health Other Total 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Revenue from Services Supported by Annual Report 2012-2013 Health Services Agreement Government Grants 682,416 67,253 48,956 78,670 125,805 24,421 10,416 21,940 1,685 1,061,561 Indirect contributions by Department of Health 4,476 153 304 420 751 215 82 134 - 6,535 Patient & Resident Fees (refer note 2b) 25,750 1,463 - - 2,168 4,557 - - 3,327 37,263 Recoupment from Private Practice for Use of Hospital Facilities - - - - - 2,414 - - 8,614 11,028 Business Units & Specific Purpose Funds ------Other Revenue from Operating Activities ------21,136 21,136 Interest & Dividends ------Capital Purpose Income (refer note 2) ------Specific Income (refer note 2e) ------Share of Net Result of Associates & Joint Ventures Accounted for using the Equity Model ------(refer note 11) Sub-Total Revenue from Services Supported by Health Services Agreement 712,641 68,869 49,259 79,090 128,722 31,606 10,498 22,074 34,763 1,137,523

Revenue from Services Supported by Hospital and Community Initiatives Donations & Bequests (non capital) ------2,312 2,312 Business Units & Specific Purpose Funds ------84,679 84,679 Private Hospital Fees ------40,282 40,282 Interest & Dividends ------2,285 2,285 Other ------52 52 Capital Purpose Income (refer note 2) ------68,758 68,758 Specific Income (refer note 2e) ------5,806 5,806 Sub-Total Revenue from Services Supported by Hospital and Community Initiatives ------204,175 204,175

Total Revenue 712,641 68,869 49,259 79,090 128,722 31,606 10,498 22,074 238,937 1,341,699

Indirect contributions by Department of Health: Department of Health makes certain payments on behalf of Monash Health. These amounts have been brought to account in determining the operating result for the year by recording them as revenue and expenses. Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes 2,595 2,350 21,744 10,561 33,687 74,854 38,596 12,889 111,120 229,515 2012 Total $'000 1,036,057 1,114,938 1,344,046 30 June 2013

Monash Health Monash - 671 8,231 6,973 2,595 2,350 21,744 74,854 38,596 37,619 111,120 229,515 267,134 2012 $'000 Other

------240 18,889 19,129 19,129 2012 $'000

Primary Health Primary

------144 9,045 9,189 9,189 Notes Statements Part To Forming and of the Financial 2012 $'000 Aged Care

------373 5,025 2,330 20,252 27,980 27,980 2012 $'000 Health

RAC incl. Mental ------2,124 1,343 110,401 113,868 113,868 2012 $'000 Health Mental

------882 79,068 79,950 79,950 2012 $'000 Ambulatory

------273 47,814 48,087 48,087 EDS 2012 $'000

------216 1,220 68,984 70,420 70,420 2012 $'000

Outpatients ------9,418 18,346 680,932 708,696 708,696 2012 $'000 Patients Admitted Admitted

Note 2a: Analysis of Revenue by Source Sub-Total Revenue from Services Supported by by Supported Services from Revenue Sub-Total Agreement Services Health Revenue from Services Supported by Hospital Hospital by Supported Services from Revenue and Community Initiatives Revenue from Services Supported by Health Health by Supported Services from Revenue Agreement Services by Supported Services from Revenue Sub-Total Hospital and Community Initiatives Total Revenue Revenue Total Other Revenue from Operating Activities GovernmentGrants Indirect contributions by Department of Health Patient and Resident Fees (refer note 2b) Recoupmentfrom Private Practice for Use of Hospital Facilities Donations and Bequests (non capital) Business Units and Specific Purpose Funds Private Hospital Fees Interest and Dividends Capital Purpose Income (refer note 2) (based on the consolidated view of note 2) of view on the consolidated (based Services: Human of Department by contributions Indirect by recording year for been the broughtand expenses. amountsresult These operating as revenue have them the account to determining of HumanMonash Health. Servicesin paymentsDepartment on makesbehalf certain

Monash Health Annual Report 2012-2013 79 Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013

Note 2b: Patient and Resident Fees

Parent Parent Entity Entity Consolidated Consolidated 2013 2012 2013 2012 $'000 $'000 $'000 $'000 Patient and Resident Fees Recurrent: Acute – Inpatients 25,750 22,360 25,750 22,360 – Outpatients 1,463 1,220 1,463 1,220 – Other 2,119 1,851 2,119 1,851 Residential Aged Care – Generic 309 316 309 316 – Mental Health 4,249 4,708 4,249 4,708 Mental Health 2,168 2,124 2,168 2,124 Other 1,208 1,108 1,208 1,108 Total Recurrent 37,263 33,688 37,263 33,688

Non-HSA Patient Fees Kitaya Holdings Pty Ltd - - 40,282 38,596 Total Non-HSA Patient Fees - - 40,282 38,596

80 Monash Health Annual Report 2012-2013 Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013

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

Parent Entity Parent Entity Consolidated Consolidated 2013 2012 2013 2012 $'000 $'000 $'000 $'000 Proceeds from Disposals of Non-Current Assets Plant and Equipment - 3 - 3 Medical Equipment 24 1 24 1 Computers and Communication - 1 - 1 Motor Vehicles 111 302 111 302 Total Proceeds from Disposal of Non- Current Assets 135 307 135 307

Less: Written Down Value of Non- Current Assets Sold Plant and Equipment 22 158 22 158 Medical Equipment 252 37 252 37 Computers and Communication 1 - 1 - Motor Vehicles 161 424 161 424 Total Written Down Value of Non-Current Assets Disposed 436 619 436 619

Net gain/(loss) on Disposal of Non- Financial Assets (301) (312) (301) (312)

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Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013

Note 2d: Assets Received Free of Charge or For Nominal Consideration

Parent Parent Entity Entity Consolidated Consolidated 2013 2012 2013 2012 $'000 $'000 $'000 $'000 During the reporting period, the fair value of assets received free of charge, was as follows:

Land and buildings - 9,600 - 9,600 TOTAL - 9,600 - 9,600

82 Monash Health Annual Report 2012-2013 Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013

Note 2e: Specific Income

Parent Parent Entity Entity Consolidated Consolidated 2013 2012 2013 2012 $'000 $'000 $'000 $'000

Specific Income

Grant for departure payments 1,565 - 1,565 - Specified State Grant 4,241 - 4,241 - TOTAL 5,806 - 5,806 -

Monash Health Annual Report 2012-2013 83 Monash Health Annual Report2012-2013-FinancialStatementsandExplanatoryNotes 84 Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013

Monash Health Note 3: Expenses Parent Entity Consolidated HSA HSA H&CI H&CI Total Total HSA HSA H&CI H&CI Total Total 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Employee Expenses Salaries & Wages 752,571 732,731 65,603 66,543 818,174 799,274 752,571 732,731 82,151 82,484 834,722 815,216

Annual Report 2012-2013 WorkCover Premium 10,112 10,012 880 889 10,992 10,901 10,112 10,012 1,048 1,053 11,160 11,066 Departure Packages ------Long Service Leave 21,547 26,393 2,270 2,274 23,817 28,667 21,547 26,393 2,637 2,609 24,184 29,003 Superannuation 67,114 64,916 5,775 5,799 72,888 70,715 67,114 64,916 6,965 6,900 74,079 71,816

Total Employee Benefits 851,344 834,052 74,528 75,504 925,872 909,556 851,344 834,052 92,801 93,045 944,145 927,101

Non Salary Labour Costs Fees for Visiting Medical Officers 1,875 1,840 1 1 1,876 1,841 1,875 1,840 1 1 1,876 1,841 Agency Costs - Nursing 4,994 5,316 - 1 4,994 5,317 4,994 5,316 379 220 5,373 5,536 Agency Costs - Other 6,875 7,443 481 200 7,355 7,643 6,875 7,443 1,128 218 8,003 7,661

Total Non Salary Labour Costs 13,743 14,600 482 201 14,226 14,801 13,742 14,599 1,508 439 15,252 15,038

Supplies & Consumables Drug Supplies 37,549 38,614 350.86 192 37,899 38,806 37,549 38,614 1,010 918 38,559 39,532 S100 Drugs 23,719 24,392 - - 23,719 24,392 23,719 24,392 - - 23,719 24,392 Medical, Surgical Supplies and Prosthesis 83,255 80,814 15,015 13,233 98,271 94,047 83,255 80,814 15,655 13,882 98,910 94,696 Pathology Supplies 12,735 12,266 102 153 12,838 12,419 12,735 12,266 540 760 13,275 13,026 Food Supplies 7,001 6,998 514 357 7,515 7,355 7,001 6,998 559 401 7,560 7,400 Total Supplies & Consumables 164,259 163,085 15,983 13,934 180,242 177,019 164,259 163,084 17,764 15,960 182,023 179,046

Other Expenses from Continuing Operations Domestic Services & Supplies 11,903 11,140 75 87 11,978 11,227 11,903 11,140 433 420 12,336 11,561 Fuel, Light, Power and Water 10,833 8,397 (10) 16 10,823 8,412 10,833 8,397 (10) 16 10,823 8,412 Insurance costs funded by Department of Health 20,038 16,152 9 - 20,047 16,152 20,038 16,152 9 - 20,047 16,152 Motor Vehicle Expenses 1,583 1,832 14 16 1,597 1,848 1,583 1,832 14 16 1,597 1,848 Repairs & Maintenance 13,855 13,635 567 439 14,422 14,074 13,855 13,635 692 483 14,547 14,118 Patient Transport 5,133 5,124 27 10 5,160 5,134 5,133 5,124 40 13 5,173 5,137 Bad & Doubtful Debts 3,157 1,480 296 113 3,453 1,593 3,157 1,480 294 116 3,451 1,596 Lease Expenses 3,964 3,930 93 118 4,058 4,049 3,964 3,930 93 118 4,057 4,049 Other Administrative Expenses 25,294 24,616 9,288 8,912 34,582 33,528 42,347 41,837 9,597 9,239 51,944 51,076 Audit Fees - VAGO - Audit of Financial Statements 281 270 (1) 281 270 281 274 34 26 315 301 - Other 354 374 - - 354 374 354 374 - - 354 374 Total Other Expenses from Continuing Operations 96,396 86,952 10,359 9,712 106,755 96,663 113,448 104,175 11,196 10,447 124,644 114,624 Monash Health Annual Report2012-2013-FinancialStatementsandExplanatoryNotes Monash Health

Note 3: Expenses (Continued) PARENT ENTITY CONSOLIDATED HSA HSA H&CI H&CI Total Total HSA HSA H&CI H&CI Total Total 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 Annual Report 2012-2013 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Expenditure using Capital Purpose Income Other Expenses - Other - - 8,097 8,995 8,097 8,995 - - 8,097 8,995 8,097 8,995 Total Other Expenses - - 8,097 8,995 8,097 8,995 - - 8,097 8,995 8,097 8,995 Total Expenditure using Capital Purpose Income - - 8,097 8,995 8,097 8,995 - - 8,097 8,995 8,097 8,995

Depreciation & Amortisation - - 62,546 67,084 62,546 67,084 - - 62,627 67,084 62,627 67,084 Specific Expense - 2,201 811 2,201 811 - 2,201 811 2,201 811 Finance Costs - - 5,449 5,619 5,449 5,619 - - 5,449 5,619 5,449 5,619 Total - - 70,196 73,514 70,196 73,514 - - 70,277 73,515 70,277 73,514

85 Total Expenses 1,125,743 1,098,689 179,643 181,859 1,305,387 1,280,549 1,142,793 1,115,910 201,643 202,401 1,344,438 1,318,317 Monash Health Annual Report2012-2013-FinancialStatementsandExplanatoryNotes 86 Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013 Monash Health Note 3a: Analysis of Expenses by Source (based on the consolidated view)

RAC incl. Admitted Mental Mental Primary Patients Outpatients EDS Ambulatory Health Health Aged Care Health Other Total Annual Report 2012-2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Services Supported by Health Services Agreement Employee Expenses 526,065 30,183 62,537 64,653 88,472 25,152 10,572 17,273 26,438 851,344 Non Salary Labour Costs 8,306 1,615 1,290 468 1,160 296 35 21 552 13,742 Supplies & Consumables 113,621 9,521 6,641 10,952 9,920 2,092 3,364 1,784 6,363 164,259 Other Expenses from Continuing Operations 65,041 7,698 6,586 7,158 13,749 3,061 2,202 1,125 6,828 113,448 Total Expenses from Services Supported by Health Services Agreement 713,033 49,017 77,054 83,231 113,300 30,601 16,174 20,204 40,182 1,142,793

Services Supported by Hospital and Community Initiatives Employee Benefits ------92,804 92,804 Non Salary Labour Costs ------1,508 1,508 Supplies & Consumables ------17,764 17,764 Other Expenses from Continuing Operations ------11,196 11,196 Depreciation & Amortisation (refer note 4) 19,254 1,324 2,081 2,247 3,523 28,808 287 604 4,498 62,627 Specific Expenses (refer note 3c) ------2,201 2,201 Finance Costs (refer note 5) ------5,449 5,449 Total Expense from Services Supported by Hospital and Community Initiatives 19,254 1,324 2,081 2,247 3,523 28,808 287 604 135,419 193,549

Expenditure using Capital Purpose Income Other Expenses ------8,097 8,097

Total Expenditure usine Capital Purpose Income ------8,097 8,097

Total Expenses 732,286 50,341 79,135 85,479 116,824 59,409 16,462 20,808 183,698 1,344,438 Monash Health

Notes To and Forming Part of the Financial Statements Monash Health Annual Report2012-2013-FinancialStatementsandExplanatoryNotes 30 June 2013 Note 3a: Analysis of Expenses by Source (based on the consolidated view)

RAC incl. Admitted Mental Mental Primary Patients Outpatients EDS Ambulatory Health Health Aged Care Health Other Total 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Services Supported by Health Services Agreement Employee Expenses 536,466 29,569 60,964 65,540 90,333 22,951 10,221 17,531 485 834,056 Non Salary Labour Costs 7,516 1,632 1,603 425 802 242 19 23 2,337 14,599 Supplies and Consumables 110,284 9,971 6,643 11,147 10,378 2,164 3,219 1,781 7,498 163,086 Other Expenses from Continuing Operations 58,842 8,945 6,176 6,708 12,511 2,490 1,192 1,772 5,538 104,176 Total Expenses from Services Supported by Health Services Agreement 713,108 50,117 75,386 83,820 114,024 27,847 14,651 21,107 15,858 1,115,916

Services Supported by Hospital and Community Monash Health Initiatives Employee Benefits ------93,045 93,045 Non Salary Labour Costs ------439 439 Supplies and Consumables ------15,960 15,960 Other Expenses from Continuing Operations ------10,447 10,447 Annual Report 2012-2013 Depreciation and Amortisation (refer note 4) 21,118 1,484 2,233 2,482 3,429 30,859 277 576 4,627 67,084 Specific Expenses (refer note 3c) ------811 811 Finance Costs (refer note 5) ------5,619 5,619 Total Expense from Services Supported by Hospital and Community Initiatives 21,118 1,484 2,233 2,482 3,429 30,859 277 576 130,949 193,407

Services Supported by Capital Purpose Income Other Expenses ------8,995 8,995 Total Expenses from Services Supported by Capital Purpose Income ------8,995 8,995

87 Total Expenses 734,226 51,601 77,619 86,302 117,453 58,706 14,928 21,683 155,802 1,318,317 Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013

Note 3b: Analysis of Expenses by Internal and Restricted Specific Purpose Funds for Services Supported by Hospital and Community Initiatives

Parent Entity Parent Entity Consolidated Consolidated 2013 2012 2013 2012 $'000 $'000 $'000 $'000 Private Practice and Other Patient Activities 11,632 10,538 11,632 10,538 Laboratory Medicine 2,988 2,744 2,988 2,744 Diagnostic Imaging 10,584 9,525 10,584 9,525 Property Expenses (5) (9) (5) (9)

Other - Bequests & Donations 83 99 83 99 - Breastscreen service 3,488 3,458 3,488 3,458 - Cardiology 5,592 4,525 5,592 4,525 - DHS Special Projects (4) (13) (4) (13) - Mobility Impaired Services 1 8 1 8 - Special Purpose Medical 10,246 9,497 10,246 9,497

Other Activities Fundraising and Community Support 2,777 1,527 2,777 1,527 Research and Scholarship 2,794 3,181 2,794 3,181 Other 7,129 7,167 7,129 7,167 TOTAL 57,306 52,247 57,306 52,247

88 Monash Health Annual Report 2012-2013 Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013

Note 3c: Specific Expenses

Parent Parent Entity Entity Consolidated Consolidated 2013 2012 2013 2012 $'000 $'000 $'000 $'000

Specific Expenses Departure payments 2,201 811 2,201 811 Total Specific Expenses 2,201 811 2,201 811

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Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013

Note 4: Depreciation and Amortisation

Parent Entity Parent Entity Consolidated Consolidated 2013 2012 2013 2012 $'000 $'000 $'000 $'000 Depreciation Buildings 38,424 41,851 38,426 41,851 Plant and Equipment 1,890 2,038 1,896 2,044 Medical Equipment 10,077 9,779 10,122 9,830 Computers and Communication 2,480 3,137 2,480 3,137 Furniture and Fittings 138 137 137 139 Motor Vehicles 349 579 349 579 Leased Building 4,959 4,973 4,989 5,003 Leased Plant and Equipment 26 26 26 26 Leased Medical Equipment 1,096 1,135 1,096 1,135 Leased Furniture and Fittings 1 1 1 1 Total Depreciation 59,441 63,656 59,522 63,745

Amortisation Software 3,105 3,339 3,105 3,339 Total Amortisation 3,105 3,339 3,105 3,339

Total Depreciation and Amortisation 62,546 66,995 62,627 67,084

90 Monash Health Annual Report 2012-2013 Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013

Note 5: Finance Costs

Parent Parent Entity Entity Consolidated Consolidated 2013 2012 2013 2012 $'000 $'000 $'000 $'000

Finance Charges on Finance Leases 4,233 4,373 4,233 4,373 Interest on Treasury Corporation of Victoria Car Park Loan 1,216 1,246 1,216 1,246 Total Finance Costs 5,449 5,619 5,449 5,619

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Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013

Note 6: Cash and Cash Equivalents

For the purposes of the cash flow statement, cash assets includes cash on hand and in banks, and short-term deposits which are readily convertible to cash on hand, and are subject to an insignificant risk of change in value, net of outstanding bank overdrafts.

Parent Parent Entity Entity Consolidated Consolidated 2013 2012 2013 2012 $'000 $'000 $'000 $'000 Cash on Hand 75 76 76 76 Cash at Bank 5,086 54,856 5,086 54,857 Total Cash and Cash Equivalents 5,161 54,932 5,161 54,933

Represented by: Cash for Health Service Operations (as per Cash Flow Statement) 640 49,498 640 49,498

Cash for Monies Held in Trust (refer to Note 18) - Cash at Bank 4,521 5,434 4,521 5,434 Total Cash and Cash Equivalents 5,161 54,932 5,161 54,933

92 Monash Health Annual Report 2012-2013 Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013 Note 7: Receivables

Parent Parent Entity Entity Consolidated Consolidated 2013 2012 2013 2012 $'000 $'000 $'000 $'000 CURRENT Contractual Inter Hospital Debtors 690 895 690 895 Trade Debtors 4,210 5,197 4,210 5,197 Patient Fees 17,873 15,288 22,719 20,497 Accrued Revenue - Other 11,222 8,642 11,689 9,139 Less Allowance for Doubtful Debts Trade Debtors (105) (173) (105) (173) Patient Fees (2,131) (1,197) (2,143) (1,211) 31,759 28,652 37,060 34,344 Statutory GST Receivable 2,925 2,727 2,928 2,724 2,925 2,727 2,928 2,724 TOTAL CURRENT RECEIVABLES 34,684 31,379 39,988 37,068 NON CURRENT Statutory Long Service Leave - Department of Health 39,685 34,733 39,685 34,734 TOTAL NON-CURRENT RECEIVABLES 39,685 34,733 39,685 34,734 TOTAL RECEIVABLES 74,369 66,112 79,673 71,802

(a) Movement in the Allowance for doubtful debts Balance at beginning of year 1,370 897 1,384 910 Amounts written off during the year (2,519) (1,228) (2,519) (1,228) Increase/(decrease) in allowance recognised in net result (1,087) 1,701 (1,113) 1,702 Balance at end of year (2,236) 1,370 (2,248) 1,384

(b) Ageing analysis of receivables Please refer to note 21(b) for the ageing analysis of contractual receivables (c) Nature and extent of risk arising from receivables Please refer to note 21(b) for the nature and extent of credit risk arising from contractual receivables

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Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013

Note 8: Inventories

Parent Parent Entity Entity Consolidated Consolidated 2013 2012 2013 2012 $'000 $'000 $'000 $'000 Pharmaceuticals At cost 6,172 6,304 6,172 6,304 Medical and Surgical At cost 9,745 14,561 9,745 14,561 General Stores At Cost 493 616 493 616 Pathology At Cost 972 1,096 972 1,096 Gift Shop At Cost 9 9 9 9 TOTAL INVENTORIES 17,391 22,586 17,391 22,586

94 Monash Health Annual Report 2012-2013 Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013 Monash Health Annual Report2012-2013-FinancialStatementsandExplanatoryNotes Note 9: Investments and other Financial Assets

Capital Fund Parent Entity Consolidated 2013 2012 2013 2012 2013 2012 $'000 $'000 $'000 $'000 $'000 $'000 CURRENT Term Deposit Aust. Dollar Term Deposits > 3 months 47,800 - 47,800 - 47,800 - Total Current 47,800 - 47,800 - 47,800 - TOTAL INVESTMENTS AND OTHER FINANCIAL ASSETS 47,800 - 47,800 - 47,800 - Monash Health Represented by: Health Service Investments* 47,800 - 47,800 - 47,800 - TOTAL INVESTMENTS AND OTHER FINANCIAL ASSETS 47,800 - 47,800 - 47,800 - Annual Report 2012-2013

* Balance relates to funding from the Commonwealth Department of Health and Ageing for the Monash Health Translation Precinct development.

(a) Ageing analysis of investments and other financial assets Please refer to note 21(b) for the ageing analysis of investments and other financial assets

(b) Nature and extent of risk arising from investments and other financial assets Please refer to note 21(b) for the nature and extent of credit risk arising from investments and other financial assets 95 Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013

Note 10: Other Assets

Parent Parent Entity Entity Consolidated Consolidated 2013 2012 2013 2012 CURRENT $'000 $'000 $'000 $'000 Prepayments 2,989 2,340 2,989 2,343 TOTAL CURRENT OTHER ASSETS 2,989 2,340 2,989 2,343

NON-CURRENT Investment in Evivar Medical Pty Ltd - 93 - 93 TOTAL NON-CURRENT OTHER ASSETS - 93 - 93 TOTAL OTHER ASSETS 2,989 2,433 2,989 2,436

96 Monash Health Annual Report 2012-2013 Monash Health Annual Report2012-2013-FinancialStatementsandExplanatoryNotes

Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013

Note 11: Investments Accounted for Using the Equity Method

Parent Parent Monash Health Entity Entity Consolidated Consolidated 2013 2012 2013 2012 $'000 $'000 $'000 $'000 Investment in Associates 3,335 3,283 3,335 3,283

Annual Report 2012-2013 TOTAL INVESTMENT ACCOUNTED FOR USING THE EQUITY METHOD 3,335 3,283 3,335 3,283

Ownership Interest Published Fair Value Country of 2013 2012 2013 2012 Name of Entity Incorporation % % $'000 $'000 Monash Health Research Precinct Pty Ltd Australia 20.33 20.33 3,335 3,283

The principal activity of the entity is property investment. 97 Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013

Note 11: Investments Accounted for Using the Equity Method (Continued) 2013 2012 $'000 $'000 Summarised Share of Financial Information of Associates:

Current Assets 834 781 Non-Current Assets 3,478 3,546 Total Assets 4,311 4,327 Current Liabilities 84 94 Non-Current Liabilities 930 950 Total Liabilities 1,013 1,044 Net Assets 3,298 3,283

Total Income 316 437 Net Result 52 - Share of Associates’ Result After Income Tax 52 -

Dividends received from Associates - -

Dividends Received from Associates During the year, Monash Health received dividends of $0 (2012: $0) from its associates.

Contingent Liabilities and Capital Commitments There are no contingent liabilities or capital commitments arising from associates.

98 Monash Health Annual Report 2012-2013 Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013

Note 12: Property, Plant and Equipment

Parent Entity Parent Entity Consolidated Consolidated 2013 2012 2013 2012 $'000 $'000 $'000 $'000 Land Land at Valuation 128,228 130,187 128,440 130,398 Total Land 128,228 130,187 128,440 130,398

Work in Progress Buildings Under Construction 103,575 62,154 103,575 62,154 Software 4,994 3,862 4,994 3,862 Total Work in Progress 108,569 66,016 108,569 66,016

Buildings Building at Cost 176,359 173,397 176,359 173,397 Less Accumulated Depreciation (12,498) (8,037) (12,501) (8,037) Buildings at Fair Value 488,172 484,481 488,172 484,481 Less Accumulated Depreciation (168,054) (134,093) (168,054) (134,093) Total Buildings 483,979 515,748 483,976 515,748

Plant and Equipment Plant and Equipment at Fair Value 28,106 26,625 28,209 26,729 Less Accumulated Depreciation (17,084) (15,609) (17,153) (15,674) Total Plant and Equipment 11,022 11,016 11,056 11,055

Medical Equipment Medical Equipment at Fair Value 133,352 126,623 134,151 127,411 Less Accumulated Depreciation (76,506) (69,199) (77,082) (69,731) Total Medical Equipment 56,846 57,424 57,069 57,680

Computers and Communication Computers and Communication at Fair Value 27,011 27,260 27,076 27,325 Less Accumulated Depreciation (24,524) (23,454) (24,588) (23,520) Total Computers and Communication 2,487 3,806 2,488 3,805

Furniture and Fittings Furniture and Fittings at Fair Value 2,207 2,058 2,239 2,091 Less Accumulated Depreciation (1,484) (1,354) (1,513) (1,382) Total Furniture and Fittings 723 704 726 709

Motor Vehicles Motor Vehicles at Fair Value 8,219 8,573 8,219 8,573 Less Accumulated Depreciation (7,941) (7,935) (7,941) (7,935) Total Motor Vehicles 278 638 278 638

Cultural Assets Cultural Assets at Fair Value 2,793 2,797 2,793 2,797 Total Cultural Assets 2,793 2,797 2,793 2,797

Leased Assets Building Leased at Fair Value 116,342 108,663 116,342 108,663 Less Accumulated Amortisation (27,690) (14,892) (27,690) (14,892) 88,652 93,771 88,652 93,771

Building Leasehold Improvements - - 893 893 Less Accumulated Amortisation - - (373) (343) - - 520 550

Plant and Equipment at Fair Value 298 310 298 310 Less Accumulated Amortisation (271) (257) (271) (257) 27 53 27 53

Medical Equipment at Fair Value 10,927 11,309 10,927 11,309 Less Accumulated Amortisation (9,759) (8,969) (9,759) (8,969) 1,168 2,340 1,168 2,340

Computers and Communications at Fair Value 736 841 736 841 Less Accumulated Amortisation (736) (841) (736) (841) - - - -

Furniture and Fittings at Fair Value 14 14 14 14 Less Accumulated Amortisation (12) (11) (12) (11) 2 3 2 3 Total Leased Assets 89,849 96,167 90,369 96,717

TOTAL PROPERTY, PLANT and EQUIPMENT 884,774 884,503 885,764 885,563

During the year 30 June 2005, Casey Hospital commenced operation. Construction and fit out of Casey Hospital was funded as a Public Private Partnership under a Project Agreement between the State of Victoria and Progress Health Pty Ltd. Southern Health is responsible for operating Casey Hospital and has recognised the leased asset and associated interest bearing liabilities (Note 16). The State of Victoria is obligated to fund quarterly service payments due to the Project Agreement for the life of that agreement, a period of up to 25 years.

Monash Health Annual Report 2012-2013 99 Monash Health Annual Report2012-2013-FinancialStatementsandExplanatoryNotes 100 Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013 Monash Health Note 12: Property, plant and equipment (continued)

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

Land Buildings Plant and Medical Computers and Furniture and Motor Vehicles Cultural Leased Work in Total

Annual Report 2012-2013 Equipment Equipment Communication Fittings Assets Assets Progress $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Balance at 1 July 2011 120,798 509,750 8,238 58,541 3,450 666 1,181 2,567 103,212 79,382 887,786 Additions 9,600 - 5,006 8,984 3,492 189 157 230 - 34,482 62,140 Disposals - - (145) (15) - (7) (121) - (330) - (618) Depreciation and Amortisation (note 4) - (41,851) (2,044) (9,830) (3,137) (139) (579) - (6,165) - (63,745) Capitalisation of Work In Progress - 47,848 ------(47,848) 0 Balance at 1 July 2012 130,398 515,748 11,055 57,680 3,805 709 638 2,797 96,717 66,016 885,563 Additions - 2,426 1,914 9,663 1,165 159 38 - - 44,823 60,188 Disposals - (17) (152) (1) (5) (50) (4) (236) - (465) Net transfers between classes (1,958) 1,958 Depreciation and Amortisation (note 4) - (38,426) (1,896) (10,122) (2,480) (137) (349) - (6,112) - (59,522) Capitalisation of Work In Progress - 2,270 ------(2,270) - Balance at 30 June 2013 128,440 483,976 11,056 57,069 2,488 726 278 2,793 90,369 108,569 885,764

Land and buildings carried at valuation In accordance to FRD103D, the Victorian Valuer-General engaged Charter Keck Cramer to perform fair value evaluations on Southern Health's land and buildings acquired 12 months prior to 30 June 2009.

A managerial valuation of Monash Health's land and buildings was performed as at 30 June 2013. The valuation has been performed in accordance with FRD103D Non-Current Physical Assets. Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013

Note 13: Intangible Assets

Parent Parent Entity Entity Consolidated Consolidated 2013 2012 2013 2012 $'000 $'000 $'000 $'000 Software 22,826 19,333 22,826 19,333 Less Accumulated Amortisation (14,317) (11,212) (14,317) (11,212) Total Intangible Assets 8,509 8,121 8,509 8,121

Reconciliation of the carrying amounts of intangible assets at the beginning and end of the previous and current financial year:

Parent Entity Consolidated $'000 $'000

Balance at 1 July 2011 11,450 11,450 Additions 10 10 Amortisation (note 4) (3,339) (3,339) Balance at 1 July 2012 8,121 8,121 Additions 3,493 3,493 Amortisation (note 4) (3,105) (3,105) Balance at 30 June 2013 8,509 8,509

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Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013

Note 14: Payables

Parent Entity Parent Entity Consolidated Consolidated 2013 2012 2013 2012 $'000 $'000 $'000 $'000 CURRENT Contractual Trade Creditors (i) 22,012 28,767 22,015 28,784 Accrued Expenses 14,204 14,832 13,339 14,744 Payment Doctors 74 63 74 63 Superannuation accrual 14,431 5,758 14,538 5,758 Inter-entity Loan to Kitaya Holdings Pty Ltd 9,671 4,250 - - Prepaid Revenue - Department of Health 2,071 12,019 2,071 12,019 Other 5,480 2,432 6,591 2,447 TOTAL PAYABLES 67,943 68,121 58,628 63,815

(i) The average credit period is 30 - 35 days. No interest is charged on trade payables for the first 30 days from the date of the invoice.

(a) Maturity analysis of payables Please refer to Note 21(c) for the ageing analysis of contractual payables (b) Nature and extent of risk arising from payables Please refer to note 21(c) for the nature and extent of risks arising from contractual payables

102 Monash Health Annual Report 2012-2013 Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013 Note 15: Superannuation

Employees of Monash Health are entitled to receive superannuation benefits and Monash Health contributes to both defined benefit and defined contribution plans. Monash Health Annual Report2012-2013-FinancialStatementsandExplanatoryNotes The defined benefit plans provides benefits based on years of service and final average salary.

Monash Health does not recognise any defined benefit liability in respect of the plans because the entity has no legal or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as they fall due. The Department of Treasury and Finance discloses the State’s defined benefits liabilities in its disclosure for administered items.

However superannuation contributions paid or payable for the reporting period are included as part of employee benefits in the comprehensive operating statement of Monash Health.

The name, details and amounts expense in relation to the major employee superannuation funds and contributions made by Monash Health are as follows:

Paid Contribution for the Year Contribution Outstanding at Year End Parent Parent Parent Parent Monash Health Entity Consolidated Entity Consolidated Entity Consolidated Entity Consolidated 2013 2013 2012 2012 2013 2013 2012 2012 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Defined benefit plans: (i) State Superannuation Fund 447 447 525 525 33 33 86 86

Annual Report 2012-2013 Health Super 1,938 1,970 2,295 2,295 153 155 168 168 Unisuper 29 29 29 29 2 2 2 2

Defined contribution plans: Health Super 35,202 37,172 44,576 44,576 8,438 8,483 3,611 3,611 Hesta 19,400 19,781 23,928 23,928 5,779 5,839 1,875 1,875 VicSuper and Other 66 66 35 35 26 26 16 16

Total 57,082 59,465 71,388 71,388 14,431 14,538 5,758 5,758

(i) The bases for determining the level of contributions is determined by the various actuaries of the

103 defined benefit superannuation plans. Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013 Note 16: Borrowings

Parent Entity Parent Entity Consolidated Consolidated 2013 2012 2013 2012 $'000 $'000 $'000 $'000

CURRENT Australian Dollar Borrowings – Finance Lease Liability (i) 2,507 2,359 2,507 2,359 – Treasury Corporation of Victoria Car Park Loan (ii) 1,688 1,688 1,688 1,688 Total Australian Dollars Borrowings 4,195 4,047 4,195 4,047

Total Current 4,195 4,047 4,195 4,047

NON-CURRENT Australian Dollar Borrowings – Finance Lease Liability (i) 65,527 68,034 65,527 68,034 – Treasury Corporation of Victoria Car Park Loan (ii) 16,585 17,056 16,585 17,056 Total Australian Dollars Borrowings 82,112 85,090 82,112 85,090

Total Non-Current 82,112 85,090 82,112 85,090

Total Borrowings 86,307 89,137 86,307 89,137

(i) During the year ended 30 June 2005, Casey Hospital commenced operation. Construction and fit out of Casey Hospital was funded as Public Private Partnership under a Project Agreement between the State of Victoria and Progress Health Pty Ltd. Monash Health is responsible for operating Casey Hospital and has recognised the leased asset (Note 16) and associated interest bearing liabilities. The State of Victoria is obligated to fund quarterly service payments due under the Project Agreement for the life of that agreement, a period of up to 25 years.

(ii) During the year ended 30 June 2010, Monash Health entered into a loan agreement with the Treasury Corporation of Victoria to fund $19.6m improvements required to the car park at the Clayton site. The loan is repayable over 22 years with repayments being made quarterly.

(a) Maturity analysis of borrowings Please refer to note 21(c) for the ageing analysis of borrowings.

(b) Nature and extent of risk arising from borrowings Please refer to note 21(c) and (d) for the nature and extent of risks arising from borrowings.

(c) Defaults and breaches During the current and prior year, there were no defaults and breaches of any of the borrowings.

104 Monash Health Annual Report 2012-2013 Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013

Note 16: Borrowings (continued)

(a) Finance lease liabilities Casey Hospital Public Private Partnership lease

Present value of Minimum future minimum future lease payments (i) lease payments 2013 2012 2013 2012 $'000 $'000 $'000 $'000 Commissioned PPP related finance lease liabilities payable (ii) Not longer than one year 2,507 2,359 2,483 2,332 Longer than one year but not longer than five years 11,704 11,012 10,756 10,443 Longer than five years 53,823 57,022 34,245 37,041 Present value of minimum lease payments 68,034 70,393 47,484 49,816

Included in the financial statements as: Current borrowings lease liabilities (Note 16) 2,507 2,359 Non-current borrowing lease liablities (Note 16) 65,527 68,034 68,034 70,393

(i) Minimum future lease payments include the aggregate of all base payments and any guaranteed residual (ii) Other finance lease liabilities include obligations that are recognised on the balance sheet; the future payments related to operating and lease commitments are disclosed in Note 22

The weighted average interest rate implicit in leases is 6.11% (2012 - 6.11%)

Monash Health Annual Report 2012-2013 105 Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013

Note 17: Provisions

Parent Entity Parent Entity Consolidated Consolidated 2013 2012 2013 2012 $'000 $'000 $'000 $'000

Current Provisions Employee Benefits (i) - Unconditional and expected to be settled within 12 months (ii) 93,902 92,781 95,422 92,965 - Unconditional and expected to be settled after 12 months (iii) 84,930 77,867 86,343 77,867 178,832 170,648 181,765 170,832 Provisions relating to Employee Benefit On-Costs - Unconditional and expected to be settled within 12 months (ii) 9,483 9,666 9,484 9,667 - Unconditional and expected to be settled after 12 months (iii) 15,201 13,954 15,201 13,954 24,684 23,620 24,685 23,621 Total Current Provisions 203,516 194,268 206,450 194,453 - Non-Current Provisions Employee Benefits (i) 34,060 33,829 34,625 33,829 Provisions related to Employee Benefit On-Costs 6,153 6,111 6,153 6,111 Total Non-Current Provisions 40,213 39,940 40,777 39,940 Total Provisions 243,729 234,208 247,227 234,393

(a) Employee Benefits and Related On-Costs

Current Employee Benefits and related on-costs Unconditional Long Service Leave Entitlement 106,758 97,744 108,256 97,744 Annual Leave Entitlements 67,126 65,938 68,201 65,938 Accrued Wages and Salaries 26,319 27,263 26,680 27,447 Accrued Days Off 3,313 3,323 3,313 3,323 Non-Current Employee Benefits and related on-costs

Conditional Long Service Leave Entitlements (iii) 40,213 39,940 40,777 39,941 Total Employee Benefits and Related On-Costs 243,729 234,208 247,227 234,393

Notes: (i) Provisions for employee benefits consist of amounts for annual leave and long service leave accrued by employees, not including on-costs.

(ii) The amounts disclosed are nominal amounts (iii) The amounts disclosed are discounted to present values

(b) Movements in provisions Movement in Long Service Leave: Balance at start of year 137,684 120,239 137,684 120,239 Provision made during the year 22,121 28,994 24,184 28,994 Settlement made during the year (12,835) (11,549) (12,835) (11,549) Balance at end of year 146,970 137,684 149,033 137,684

106 Monash Health Annual Report 2012-2013 Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013 Note 18: Other Liabilities

Parent Entity Parent Entity Consolidated Consolidated 2013 2012 2013 2012 $'000 $'000 $'000 $'000 CURRENT Monies Held in Trust* - Patient Monies Held in Trust* 280 336 280 336 - Accommodation Bonds (Refundable Entrance Fees)* 4,974 5,098 4,974 5,098 Total Other Liabilities 5,254 5,434 5,254 5,434

* Total Monies Held in Trust Represented by the following assets: Cash Assets (refer to Note 6) 4,521 5,434 4,521 5,434 Property, Plant and Equipment 733 - 733 - TOTAL 5,254 5,434 5,254 5,434

Monash Health Annual Report 2012-2013 107 Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013 Note 19: Equity

Parent Entity Parent Entity Consolidated Consolidated 2013 2012 2013 2012 $'000 $'000 $'000 $'000 (a) Surpluses

Property, Plant and Equipment Revaluation Surplus 1 Balance at the beginning of the reporting period 319,318 319,318 319,487 319,487 Balance at the end of the reporting period* 319,318 319,318 319,487 319,487

* Represented by: - Land 66,462 66,462 66,631 66,632 - Buildings 252,092 252,092 252,092 252,092 - Cultural Assets 447 447 447 447 - Motor Vehicles 317 317 316 316 319,318 319,318 319,487 319,487

(1) The property, plant and equipment revaluation surplus arises on the revaluation of property, plant and equipment.

108 Monash Health Annual Report 2012-2013 Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013 Note 19: Equity (continued)

Parent Entity Parent Entity Consolidated Consolidated 2013 2012 2013 2012 $'000 $'000 $'000 $'000

Restricted Specific Purpose Surplus Balance at the beginning of the reporting period 3,033 3,197 3,033 3,197 Transfer to/(from) accumulated funds 1,261 (164) 1,261 (164) Balance at the end of the reporting period 4,294 3,033 4,294 3,033 Total Surpluses 323,612 322,351 323,781 322,520

(b) Contributed Capital Balance at the beginning of the reporting period 401,893 401,893 401,895 401,895 Balance at the end of the reporting period 401,893 401,893 401,895 401,895

(c) Accumulated Surpluses/(Deficits) Balance at the beginning of the reporting period (79,174) (104,329) (68,470) (94,362) Net Result for the Year (3,973) 24,991 (2,738) 25,728 Transfer (to)/from Restricted Specific Purpose Reserve (1,261) 164 (1,261) 164 Balance at the end of the reporting period (84,408) (79,174) (72,469) (68,470)

Total Equity at end of financial year 641,097 645,070 653,207 655,945

Monash Health Annual Report 2012-2013 109 Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013

Note 20: Reconciliation of Net Result for the Year to Net Cash Inflow/(Outflow) from Operating Activities

Parent Entity Parent Entity Consolidated Consolidated 2013 2012 2013 2012 $'000 $'000 $'000 $'000 Net Result for the Year (3,973) 24,991 (2,738) 25,728

Depreciation and Amortisation 62,546 66,995 62,627 67,084 Provision for Doubtful Debts 866 473 866 473 Net Loss from Sale of Plant and Equipment 301 312 301 312 Net Movement in Finance Leases (2,211) (2,220) (2,211) (2,220) Assets received free of charge - (9,600) - (9,600) Change in Operating Assets and Liabilities (Increase) in Receivables (8,257) (14,164) (7,871) (14,496) (Increase) in Prepayments (649) (701) (646) (701) Increase in Payables and Other Liabilities (3,557) 4,242 (5,427) 3,580 Increase in Provisions 12,658 31,914 12,834 32,099 (Increase) in Inventories 5,195 (2,147) 5,195 (2,147) NET CASH INFLOW FROM OPERATING ACTIVITIES 62,919 100,095 62,930 100,112

110 Monash Health Annual Report 2012-2013 Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013 Note 21: Financial Instruments

(a) Financial risk management objectives and policies Monash Health's principal financial instruments comprise of: - Cash Assets - Receivables (excluding statutory receivables) - Payables (excluding statutory payables) - Finance Lease payables - Accommodation Bonds

Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, with respect to each class of financial asset, financial liability and equity instrument are disclosed in note 1 to the financial statements.

Monash Health's main financial risks include credit risk, liquidity risk and interest rate risk. Monash Health manages these risks in accordance with its financial management policy.

The main purpose in holding financial instruments is to prudentially manage Monash Health's financial risks within the government policy parameters.

Categorisation of financial instruments Carrying Amount Carrying Amount

Consolidated Consolidated 2013 2012 $'000 $'000 Financial Assets Cash and cash equivalents 5,161 54,933 Investments - Term Deposit (refer to Note 9) 47,800 - Loans and Receivables 37,060 34,344 Total Financial Assets (i) 90,021 89,277

Financial Liabilities Payables 58,628 63,815 Borrowings 86,306 89,137 Accommodation Bonds 4,974 5,098 Other Liabilities 280 336 Total Financial Liabilities 150,188 158,386

(i) The total amount of financial assets disclosed here excludes statutory receivables (i.e. GST input tax credit recoverable) Net holding gain/(loss) on financial instruments by category

Net holding Net holding gain/(loss) gain/(loss) 2013 2012 $'000 $'000 Financial Assets Cash and Cash Equivalents (i) 2,285 2,350 Investments - Term Deposit (i) 2,478 - Loans and Receivables (i) (2,434) (1,069) Total Financial Assets 2,329 1,281

Financial Liabilities Payables (ii) (129) 251 Interest Bearing Liabilities (ii) (4,233) (4,373) Accommodation Bonds (ii) 76 77 Total Financial Liabilities (4,286) (4,045)

(i) For cash and cash equivalents, loans or receivables, the net gain or loss is calculated by taking the movement in the fair value of the asset, interest revenue, plus or minus foreign exchange gains or losses arising from revaluation of the financial assets, and minus any impairment recognised in the net result.

(ii) For financial liabilities measured at amortised cost, the net gain or loss is calculated by taking the interest expense, plus or minus foreign exchange gains or losses arising from the revaluation of financial liabilities measured at amortised cost.

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Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013

Note 21: Financial Instruments (continued)

(b) Credit risk

Credit risk arises from the contractual financial assets of Monash Health, which comprise cash and deposits and non-statutory receivables. Monash Health’s exposure to credit risk arises from the potential default of a counter party on their contractual obligations resulting in financial loss to Monash Health. Credit risk is measured at fair value and is monitored on a regular basis. Credit risk associated with the Monash Health’s contractual financial assets is minimal because the main debtor is the Victorian Government. For debtors other than the Government, it is Monash Health’s policy to only deal with entities with a satisfactory credit rating and to obtain sufficient collateral or credit enhancements, where appropriate. In addition, Monash Health does not engage in hedging for its contractual financial assets and mainly obtains contractual financial assets that are on fixed interest, except for cash assets, which are mainly cash at bank. As with the policy for debtors, Monash Health’s policy is to only deal with banks with high credit ratings. Provision of impairment for contractual financial assets is recognised when there is objective evidence that Monash Health will not be able to collect a receivable. Objective evidence includes financial difficulties of the debtor, default payments, debts which are more than 60 days overdue, and changes in debtor credit ratings. Except as otherwise detailed in the following table, the carrying amount of contractual financial assets recorded in the financial statements, net of any allowances for losses, represents Monash Health’s maximum exposure to credit risk without taking account of the value of any collateral obtained.

Credit quality of contractual financial assets that are neither past due nor impaired

Financial Government Other Total institutions agencies (AA- credit (AAA credit rating) rating) Consolidated Consolidated Consolidated Consolidated 2013 $'000 $'000 $'000 $'000 Financial Assets Cash and Cash Equivalents 5,086 76 - 5,161 Investments - Term Deposit 47,800 - - 47,800 Receivables (i) - 606 36,454 37,060

Total Financial Assets 52,886 682 36,454 90,021

2012 Financial Assets Cash and Cash Equivalents 54,857 76 - 54,933 Investments - Term Deposit - - - - Receivables (i) - 594 33,750 34,344

Total Financial Assets 54,857 670 33,750 89,277

(i) The total amounts disclosed here exclude statutory amounts (e.g. amounts owing from Victorian Government and GST input tax credit recoverable).

Ageing analysis of Financial Assets as at 30 June

Carrying Not Past Due Past Due But Not Impaired Impaired Amount and Not Less than 1 1-3 Months 3 months - 1-5 Years Financial Impaired Month 1 Year Assets

Consolidated 2013 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Financial Assets Cash and Cash Equivalents 5,161 5,161 - - - - - Investments - Term Deposit 47,800 47,800 - - - - - Receivables (i) 37,060 26,909 4,974 1,600 2,682 895 -

Total Financial Assets 90,021 79,870 4,974 1,600 2,682 895 -

2012 Financial Assets Cash and Cash Equivalents 54,933 54,933 - - - - - Investments - Term Deposit ------Receivables (i) 34,344 28,203 1,321 1,127 3,230 463 -

Total Financial Assets 89,277 83,136 1,321 1,127 3,230 463 -

(i) Ageing analysis of financial assets must exclude the types of statutory financial assets (i.e GST input tax credit)

There are no material financial assets which are individually determined to be impaired. Currently Monash Health does not hold any collateral as security nor credit enhancements relating to any of its financial assets.

There are no financial assets that have had their terms renegotiated so as to prevent them from being past due or impaired, and they are stated at the carrying amounts as indicated. The ageing analysis table above discloses the ageing only of contractual financial assets that are past due but not impaired.

112 Monash Health Annual Report 2012-2013 Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013

Note 21: Financial Instruments (continued)

(c) Liquidity risk

Liquidity risk is the risk that Monash Health would be unable to meet its financial obligations as and when they fall due. Monash Health’s maximum exposure to liquidity risk is the carrying amounts of financial liabilities as disclosed in the face of the balance sheet. Monash Health manages its liquidity risk by preparing daily cash flow forecasts and the active management of working capital needs.

The following table discloses the contractual maturity analysis for Monash Health's financial liabilities. For interest rates applicable to each class of liability refer to Note 21(d).

Maturity analysis of Financial Liabilities as at 30 June Maturity Dates Carrying Contractual Less than 1-3 3 months - 1-5 Years Over 5 Amount Cash Flows 1 Month Months 1 Year Years

Consolidated Consolidated 2013 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Financial Liabilities Payables 58,628 58,628 47,327 10,446 855 - - Borrowings 86,307 86,307 612 1,044 2,539 23,543 58,569 Other Financial Liabilities (i) - Accommodation Bonds 4,974 4,974 - 52 162 2,162 2,596 - Other 280 280 280 - - - -

Total Financial Liabilities 150,189 150,189 48,219 11,542 3,556 25,705 61,165

2012 Financial Liabilities Payables 63,815 63,815 47,030 16,677 108 - - Borrowings 89,137 89,137 576 1,007 2,463 22,651 62,440 Other Financial Liabilities (i) - Accommodation Bonds 5,098 5,098 - 53 166 2,215 2,661 - Other 336 336 336 - - - -

Total Financial Liabilities 158,386 158,386 47,942 17,737 2,737 24,866 65,101

(i) Ageing analysis of financial liabilities excludes the types of statutory financial liabilities (i.e GST payable)

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Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013

Note 21: Financial Instruments (continued)

(d) Market risk Monash Health's exposures to market risk are primarily through interest rate risk with only insignificant exposure to foreign currency and other price risks. Objectives, policies and processes used to manage each of these risks are disclosed in the paragraph below. Currency risk Monash Health is exposed to insignificant foreign currency risk through its payables relating to purchases of supplies and consumables from overseas. This is because of a limited amount of purchases denominated in foreign currencies and a short timeframe between commitment and settlement. Interest rate risk Exposure to interest rate risk might arise primarily through Monash Health's interest bearing liabilities. Minimisation of risk is achieved by mainly undertaking fixed rate or non-interest bearing financial instruments. For financial liabilities, Monash Health mainly undertake financial liabilities with relatively even maturity profiles.

Other price risk Monash Health is not subject to any other price risks. Interest rate exposure of financial assets and liabilities as at 30 June Weighted Carrying Interest Rate Exposure Average Amount Fixed Variable Non- Effective Interest Interest Interest Interest Consolidated Rate Rate Bearing 2013 Rate (%) $'000 $'000 $'000 $'000 Financial Assets Cash and Cash Equivalents 3.10 5,161 - 5,161 - Investments - Term Deposit 4.94 47,800 47,800 - - (i) Receivables 37,060 - - 37,060 90,021 47,800 5,161 37,060 Financial Liabilities (i) Payables 58,628 - - 58,628 Borrowings 6.21 86,307 86,307 - - Other Financial Liabilities - Accommodation Bonds 4,974 - - 4,974 - Other 280 - - 280 150,189 86,307 - 63,882 2012 Financial Assets Cash and Cash Equivalents 4.23 54,933 - 54,933 - Investments - Term Deposit - - - - (i) Receivables 34,344 - - 34,344 89,277 - 54,933 34,344 Financial Liabilities (i) Payables 63,815 - - 63,815 Borrowings 6.21 89,137 89,137 - - Other Financial Liabilities - Accommodation Bonds 5,098 - - 5,098 - Other 336 - - 336 158,386 89,137 - 69,249 (i) The carrying amount must exclude types of statutory financial assets and liabilities (i.e. GST input tax credit and GST payable)

114 Monash Health Annual Report 2012-2013 Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013 Note 21: Financial Instruments (continued)

(d) Market risk (continued) Sensitivity disclosure analysis

Taking into account past performance, future expectations, economic forecasts, and management's knowledge and experience of the financial markets, Monash Health believes the following movements are 'reasonably possible' over the next 12 months (Base rates are sourced from the Reserve Bank of Australia)

- A shift of +1.25% and -1.25% in market interest rates (AUD) from year-end rates of 2.75%

The following table discloses the impact on net operating result and equity for each category of financial instrument held by Monash Health at year end as presented to key management personnel, if changes in the relevant risk occur.

No other category of financial instrument would be affected by shift in market interest rates.

Carrying Interest Rate Risk Amount -1.25% +1.25% Profit Equity Profit Equity 2013 Consolidated $'000 $'000 $'000 $'000 Financial Assets Cash and Cash Equivalents 5,161 (65) (65) 65 65 Investments - Term Deposit 47,800 (598) (598) 598 598 (662) (662) 662 662 2012 -1.25% +1.25% Financial Assets Cash and Cash Equivalents 54,933 (687) (687) 687 687 Investments - Term Deposit - - - - - (687) (687) 687 687

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Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013

Note 21: Financial Instruments (continued)

(e) Fair value

The fair values and net fair values of financial instrument assets and liabilities are determined as follows: • Level 1 - the fair value of financial instrument with standard terms and conditions and traded in active liquid markets are determined with reference to quoted market prices; • Level 2 - the fair value is determined using inputs other than quoted prices that are observable for the financial asset or liability, either directly or indirectly; and • Level 3 - the fair value is determined in accordance with generally accepted pricing models based on discounted cash flow analysis using unobservable market inputs.

Monash Health considers that the carrying amount of financial instrument assets and liabilities recorded in the financial statements to be a fair approximation of their fair values, because of the short-term nature of the financial instruments and the expectation that they will be paid in full.

The following table shows that the fair values of most of the contractual financial assets and liabilities are the same as the carrying amounts.

Comparison between carrying amount and fair value

Carrying Fair value Carrying Fair value Amount Amount

Consolidated Consolidated Consolidated Consolidated 2013 2013 2012 2012 $'000 $'000 $'000 $'000 Financial Assets Cash and Cash Equivalents 5,161 5,161 54,933 54,933 Investments - Term Deposit 47,800 47,800 - - Receivables(i) 37,060 37,060 34,344 34,344 Total Financial Assets 90,021 90,021 89,277 89,277

Financial Liabilities Payables 58,628 58,628 63,815 63,815 Borrowings 86,307 86,307 89,137 89,137 Other Financial Liabilities(i) - Accommodation Bonds 4,974 4,974 5,098 5,098 - Other 280 280 336 336 Total Financial Liabilities 150,189 150,189 158,386 158,386

(i) The carrying amount must exclude types of statutory financial assets and liabilities (i.e. GST input tax credit and GST payable).

116 Monash Health Annual Report 2012-2013 Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013 Note 22: Commitments a) Commitments Parent Entity Parent Entity Consolidated Consolidated 2013 2012 2013 2012 $'000 $'000 $'000 $'000 Capital expenditure commitments Payable: Land and buildings 322 530 322 530 Plant and equipment 1,415 4,302 1,415 4,302 Total capital expenditure commitments 1,737 4,832 1,737 4,832

Other expenditure commitments Payable: Contracted services 100,600 99,227 100,600 99,227 Total other expenditure commitments 100,600 99,227 100,600 99,227

Lease commitments Commitments in relation to leases contracted for at the reporting date: Operating leases 8,789 8,172 8,789 8,172 Finance leases 68,034 70,393 68,034 70,393 Total lease commitments 76,823 78,565 76,823 78,565

Operating leases (Include a general description of operating lease arrangements) payable as follows: Cancellable 8,789 8,172 8,789 8,172 Sub Total 8,789 8,172 8,789 8,172 Non-cancellable - - - - Total operating lease commitments 8,789 8,172 8,789 8,172

Finance Leases Commitments in relation to finance leases are payable as follows: Current 2,507 2,359 2,507 2,359 Non-current 65,527 68,034 65,527 68,034 Minimum Lease Payments 68,034 70,393 68,034 70,393 Less Future Finance Charges - - - - Total finance lease commitments 68,034 70,393 68,034 70,393

Total lease commitments 76,823 78,565 76,823 78,565

Total Commitments (inclusive of GST) 179,159 182,625 179,159 182,625 * Provide for each type of commitment All amounts shown in the commitments note are nominal amounts inclusive of GST.

Monash Health Annual Report 2012-2013 117 Monash Health Annual Report2012-2013-FinancialStatementsandExplanatoryNotes 118 Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013 Monash Health Note 22: Commitments (continued)

(b) Public private partnerships (treated as Finance Leases)(i) Annual Report 2012-2013 2013 2012 $'000 $'000 Commissioned public private partnerships - other commitments (ii)(iii) Other Commitments Other Commitments Present Value Nominal Value Present Value Nominal Value

Casey Hospital Public Private Partnership lease 47,484 68,034 49,816 70,393 Total commitments for public private partnerships

(i) The present values of the minimum lease payments for commissioned public private partnerships (PPPs) are recognised on the balance sheet and are not disclosed as commitments. (ii) The year on year reduction in the nominal amounts of the other commitments reflects the payments made. (iii) The year on year reduction in the present values of the other commitments mainly reflects the payments made, offset by the impact of the discounting period being one year shorter. Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013 (c ) Commitments payable

2013 2012 $'000 $'000 Capital expenditure commitments payable Less than 1 year 1,737 4,832 Longer than 1 year but not longer than 5 years - - 5 years or more - - Total capital expenditure commitments 1,737 4,832 Other expenditure commitments payable Less than 1 year 41,509 36,021 Longer than 1 year but not longer than 5 years 38,339 58,398 5 years or more 20,752 4,807 Total other expenditure commitments 100,600 99,227 Lease commitments payable Less than 1 year 2,876 2,650 Longer than 1 year but not longer than 5 years 5,913 5,414 5 years or more - 108 Total lease commitments 8,789 8,172 Public private partnership commitments (commissioned) Less than 1 year 2,507 2,359 Longer than 1 year but not longer than 5 years 11,704 11,012 5 years or more 53,823 57,022 Total public private partnership commitments 68,034 70,393 Total commitments (inclusive of GST) 179,160 182,624 Less GST recoverable from the Australian Tax Office (16,287) (16,602) Total commitments (exclusive of GST) 162,873 166,022

Monash Health Annual Report 2012-2013 119 Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013

Note 23: Contingent Assets and Contingent Liabilities As at 30 June 2013, there are no contingent assets (2012: $0).

As at 30 June 2013, there is a contingent liability in respect of grants received from Department of Health they may be subject to recall of $3,445,000. (2012: $0).

120 Monash Health Annual Report 2012-2013 Monash Health Annual Report2012-2013-FinancialStatementsandExplanatoryNotes

Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013

Note 24: Segment Reporting RAC Acute Health Mental Health Primary Health Aged care Other Consolidated 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 REVENUE External Segment Revenue 31,606 27,980 909,858 907,154 128,722 113,868 22,074 19,129 10,498 9,189 164,325 155,606 1,267,084 1,232,925 Intersegment Revenue ------Unallocated Revenues ------Total Revenue 31,606 27,980 909,858 907,154 128,722 113,868 22,074 19,129 10,498 9,189 164,325 155,606 1,267,084 1,232,925 EXPENSES External Segment Expenses (30,601) (27,847) (922,335) (922,475) (113,300) (114,029) (20,204) (21,108) (16,174) (14,652) (163,448) (134,102) (1,266,063) (1,234,213) Intersegment Expenses ------Unallocated Expense ------Total Expenses (30,601) (27,847) (922,335) (922,475) (113,300) (114,029) (20,204) (21,108) (16,174) (14,652) (163,448) (134,102) (1,266,063) (1,234,213) Net Result from ordinary

Monash Health activities 1,005 133 (12,477) (15,322) 15,421 (162) 1,870 (1,979) (5,676) (5,462) 877 21,504 1,020 (1,287) Interest Income ------Capital Grants ------68,758 111,120 68,758 111,120 Share of Net Result of Associates & Joint Ventures using Equity Method ------52 52 - Specific Income (refer note 2e) 5,806 5,806

Annual Report 2012-2013 Capital Purpose Expense ------(8,097) (8,995) (8,097) (8,995) Finance Costs ------(5,449) (5,619) (5,449) (5,619) Specific expense (refer note 3c) (2,201) (811) (2,201) (811) Depreciation & amortisation expense (28,808) (30,859) (24,905) (27,273) (3,523) (3,423) (604) (575) (287) (276) (4,498) (4,678) (62,627) (67,084) Non cash expenses other than depreciation ------(1,596) (1,596) Net Result for Year (27,803) (30,726) (37,382) (42,594) 11,898 (3,585) 1,266 (2,554) (5,964) (5,739) 55,248 110,924 (2,738) 25,728 OTHER INFORMATION Segment Assets 407,451 407,359 352,250 360,020 49,834 45,190 8,546 7,592 4,064 3,647 63,618 61,755 885,764 885,563 Unallocated Assets ------164,859 163,161 164,859 163,161 Total Assets 407,451 407,359 352,250 360,020 49,834 45,190 8,546 7,592 4,064 3,647 228,477 224,916 1,050,623 1,048,724 Segment Liabilities (7,118) (6,214) (95,047) (90,094) (13,276) (12,735) (3,439) (3,307) (2,321) (2,085) (85,249) (80,018) (206,450) (194,453) Unallocated Liabilities - - - - (190,965) (198,326) (190,965) (198,326) 121 Total Liabilities (7,118) (6,214) (95,047) (90,094) (13,276) (12,735) (3,439) (3,307) (2,321) (2,085) (276,215) (278,344) (397,416) (392,779) Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013

Note 25a: Responsible Persons Disclosures

In accordance with the Ministerial Directions issued by the Minister for Finance under the Financial Management Act 1994 , the following disclosures are made regarding responsible persons for the reporting period. Period Responsible Ministers: The Honourable David Davis, MLC, Minister for Health and Ageing 1/7/2012 - 30/6/2013 The Honourable Mary Wooldridge, MLA, Minister for Mental Health 1/7/2012 - 30/6/2013

Governing Boards Ms Barbara Yeoh 1/7/2012 - 30/6/2013 Ms Debbie Williams 1/7/2012 - 30/6/2013 Ms Helen Owens 1/7/2012 - 30/6/2013 Mr Charles Gillies 1/7/2012 - 30/6/2013 Mr Errol Katz 1/7/2012 - 30/6/2013 Mr Ross McClymont 1/7/2012 - 30/6/2013 Ms Linda Perry 1/7/2012 - 30/6/2013 Mr Gregory Bamber 28/8/2012 - 30/6/2013 Accountable Officers Ms Shelly Park 1/7/2012 - 30/6/2013

Remuneration of Responsible Persons The number of Responsible Persons are shown in their relevant income bands; Parent Consolidated 2013 2012 2013 2012 Income Band No. No. No. No. $20,000 - $29,999 1 - 1 - $30,000 - $39,999 6 8 6 8 $60,000 - $69,999 1 1 1 1 $430,000 - $439,999 1 1 1 1 Total Numbers 9 10 9 10 Total remuneration received or due and receivable by Responsible Persons from the reporting entity amounted to ($'000): $731 $753 $731 $753 Amounts relating to Responsible Ministers are reported in the financial statements of the Department of Premier and Cabinet $'000 $'000 $'000 $'000 Other Transactions of Responsible Persons and their Related Parties. - - - -

Transactions with Controlled entity

Kitaya Holdings Pty Ltd operates Jessie McPherson Private Hospital. Monash Health is reimbursed by its controlled entity, Kitaya Holdings Pty Ltd, for the provision of goods and services required to run the private hospital. The fee includes charges for labour, power, food, cleaning and other services. All transactions are conducted on normal commercial terms and conditions.

The aggregate amounts brought to account in respect of the following types of transactions were: 2013 2012 Rental income received from its controlled entity 1,034,382 1,034,279 Contracted Goods & Services provided to its controlled entity 29,815,077 36,630,781

Amounts owing at Balance Date Amount owing to controlled entity 9,671,025 4,251,256

122 Monash Health Annual Report 2012-2013 Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013 Monash Health Annual Report2012-2013-FinancialStatementsandExplanatoryNotes Note 25b: Executive Officer Disclosures

Executive Officers' Remuneration The numbers of executive officers, other than Ministers and Accountable Officers, and their total remuneration during the reporting period are shown in the first two columns in the table below in their relevant income bands. The base remuneration of executive officers is shown in the third and fourth columns. Base remuneration is exclusive of bonus payments, long-service leave payments, redundancy payments and retirement benefits. Several factors affected total remuneration payable to executives over the year. A number of executives received bonus payments during the year. These bonus payments depend on the terms of individual employment contracts.

PARENT CONSOLIDATED Total Remuneration Base Remuneration Total Remuneration Base Remuneration 2013 2012 2013 2012 2013 2012 2013 2012

Monash Health No. No. No. No. No. No. No. No. $180,000 – $189,999 - - - 1 - - - 1 $190,000 - $199,999 - - 1 - - - 1 - $200,000 – $209,999 - - 1 2 - - 1 2 $210,000 – $219,999 1 1 1 1 1 1 1 1

Annual Report 2012-2013 $220,000 – $229,999 - 1 - 1 - 1 - 1 $230,000 – $239,999 1 1 2 1 1 1 2 1 $240,000 – $249,999 1 1 1 - 1 1 1 - $250,000 – $259,999 - - 1 - - - 1 - $260,000 – $269,999 2 1 - - 2 1 - - $270,000 – $279,999 1 1 1 - 1 1 1 - $280,000 - $289,999 1 - - 2 1 - - 2 $300,000 – $309,999 1 2 - - 1 2 - - Total 8 8 8 8 8 8 8 8 Total annualised employee equivalents (AEE) 8 8 8 8 8 8 8 8 123 Total Remuneration ($'000) $ 2,094 $ 2,072 $ 1,849 $ 1,836 $ 2,094 $ 2,072 $ 1,849 $ 1,836 Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013

Note 26: Events Occurring after the Balance Sheet Date

There have been no significant events after reporting date.

124 Monash Health Annual Report 2012-2013 Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013 Note 27: Controlled Entities

Name of entity Country of Equity incorporation Holding Kitaya Holdings Pty Ltd (trading as Jessie McPherson Private Hospital) Australia 100%

Monash Health Annual Report 2012-2013 125 Monash Health Annual Report 2012-2013 - Financial Statements and Explanatory Notes

Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013 Note 28: Economic Dependency

Monash Health is wholly dependent on the continued financial support of the State Government and in particular, the Department of Health. The Department of Health has provided confirmation that it will continue to provide Monash Health adequate cash flow support to meet its current and future obligations as and when they fall due for a period up to September 2014.

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Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013

Note 29. Remuneration of auditors

2013 2012 $'000 $'000 Victorian Auditor-General's Office Audit or review of financial statement 315 301 315 301

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Monash Health Notes To and Forming Part of the Financial Statements 30 June 2013

Note 30. Ex Gratia Payments

There have been no ex gratia payments made during the financial year (2012: $0).

128 Monash Health Annual Report 2012-2013 Monash Health Corporate Office

246 Clayton Road Clayton t: 03 9594 6666 e: [email protected] www.monashhealth.org

Casey Hospital Greater Dandenong Community Cardinia Casey Community 62-70 Kangan Drive Health Service Health Service Berwick t: 03 8768 1200 Springvale Berwick 55 Buckingham Avenue 28 Parkhill Drive Springvale 3171 Berwick 3806 Cranbourne Integrated Care t: 03 8558 9000 t: 03 8768 5100 Centre 140-154 Sladen Street Dandenong Cockatoo Cranbourne 229 Thomas Street 7-17 McBride Street t: 03 5990 6789 Dandenong 3175 Cockatoo 3781 t: 03 8792 2200 t: 03 5968 7000

Dandenong Hospital Dandenong Cranbourne 135 David Street 135 David Street 140-154 Sladen Street Dandenong Dandenong 3175 Cranbourne 3977 t: 03 9554 1000 t: 03 9554 8270 t: 03 5990 6789

Parkdale Cranbourne Kingston Centre Home Based Allied Health (HBAH) Planned Activity Group Cnr Kingston and Warrigal Roads 335 Nepean Highway 7 Mundaring Dve, Cranbourne Cheltenham Parkdale 3195 T: 03 59965339 t: 03 9265 1000 t: 85870192 Doveton Cheltenham 67 Power Road Monash Medical Centre Clayton Kingston Adult Day Activity Service Doveton 3177 246 Clayton Road (KADAS) t: 03 9212 5700 Clayton Southern Community Church of t: 03 9594 6666 Christ Pakenham 1-8 Chesterville Road Cnr Deveney Street and Princes Cheltenham 3192 Highway Moorabbin Hospital t: 95836471 Pakenham 3781 823-865 Centre Road t: 03 5941 0500 East Bentleigh Specialist Clinics t: 03 9928 8111 Cnr Kingston and Warrigal Roads Cheltenham 3192 t: 03 9265 1401

Monash Health Annual Report 2012-2013 129 Monash Health Corporate Office

246 Clayton Road Clayton t: 03 9594 6666 e: [email protected] www.monashhealth.org MonashHealth