2011-2012 REPORT ANNUAL

Ballarat Health Services Annual REPORT 2011-2012 Centre Services Hospital .org.au Sturt Street Base bhs Elizabeth Fax: (03) 5320 4828 Fax: (03) 5320 3860 Fax: (03) 5320 4028 Psychiatric 102 Ascot Street South 102 Ascot Street Phone: (03) 5320 4000 Phone: (03) 5320 3700 Phone: (03) 5320 4100 Drummond Street North Drummond Street www. PO Box 577 Ballarat 3353 PO Box 199 Ballarat 3353 PO Box 577 Ballarat 3353 Queen SPECIALTIES & SERVICES

Allied Health Services Gastroenterology • Dietetics General Medicine • Exercise therapy General Surgery • Occupational therapy Geriatric Evaluation and Management • Physiotherapy Gynaecology • Podiatry ICU Liaison Nurse Service • Prosthetics and orthotics • Psychology Infection Control • Social work Intensive Care Unit and Medical Emergency Response Team • Speech therapy Acquired brain injury Lymphoedema Breast Care Maxillofacial Surgery BHS Catering Medical Oncology Cardiology Neonatal Central Sterile Supply Department (CSSD) Nephrology Cognitive Impairment and Dementia Management Neurology Community Nursing Maternity Services Community Programs Operating Suite • Carer Respite and Support Services Ophthalmology • Ambulatory Care Services Organ and Tissue Donation Service • Domiciliary Services Orthopaedic Surgery • Grampians Aged Care Assessment Service (ACAS) Otolaryngology • Grampians Regional Continence Service Outpatient Services • Diabetes and Continence Resource Centre Paediatric Medicine • Grampians Regional Palliative Care Team Perioperative Day Procedure Unit • Hospital Admission Risk Program (HARP) Pain Management • Linkages Central Highlands Co-ordinated Community Care Palliative Care • Planned Activity Groups Pharmacy • Post Acute Care Plastic Surgery • Rehabiliation in the Home Mental Health Services including: • Transition Care Program • Child and Adolescent Mental Health Service • Direct2Care • Acute Community and Inpatient Services Diagnostic and Radiology (X-ray) Services • Aged Community and Inpatient Services • Ultrasound • Adult Community • CT Scan Rehabilitation (in-patient and out-patient) • MRI Residential Aged Care • EEG Respite Care • ECG Safety Link • BreastScreen • Nuclear medicine Stroke Management Critical Care Unit Stomal Therapy Dental Services Statewide Aids and Equipment Program (SWEP) Diabetes Education Thoracic Medicine Dialysis Thoracic Surgery Ear, Nose and Throat Surgery Urology Emergency Medicine Vascular Surgery Endocrinology, including diabetes management Wound Management Eureka Linen Falls and Balance

2 Ballarat Health Services CONTENTS

Profi le of BHS 4 President and CEO’s report 5 Organisational chart 11 Board of Management 12 Our People 14 Statutory requirements 24 Financial statements and notes 29

www.bhs.org.au 3 BHS PROFILE

OUR VISION Excellence in health care OUR MISSION To deliver accessible, integrated and positive health experiences for our people, community and region. Ballarat Health Services is Victoria’s OUR VALUES second largest regional health service, Our services and staff embrace the following: providing a comprehensive range of Compassion general and specialist care across key Fair and caring to all those we come into contact with, even during diffi cult times. We treat others as we would expect to be medical and healthcare disciplines treated. including acute care, sub-acute Integrity care, residential aged care services, Behaving in accordance with our professional, ethical and legislative requirements. Using our resources responsibly and community care, psychiatric services, transparently, we are honest and trustworthy. dental services and rehabilitation Respect services. Upholding the dignity and rights of ourselves, patients, relatives, carers, colleagues and members of the community. We value the Our Base Hospital is the largest regional hospital in the people we work with and their work. Grampians region and is the principal referral hospital Excellence for this region, which extends from Bacchus Marsh to the South Australian border. The region, covering some Striving to attain the highest standards of service delivery and 48,600 square kilometres, is home to more than 230,000 clinical practice. We achieve this by acknowledging, recognising people. and promoting innovation, participating in continuous learning, development, training and research. We come to work to make a Ballarat Health Services was established under the Health difference. Services Act 1988. the incorporation came into effect when our organization offi cially formed on January 1, Teamwork 1997, following the voluntary amalgamation of the Involving staff and service providers in decision making. We work Ballarat Base Hospital, the Queen Elizabeth Centre and in partnership with our patients, their families, carers and other Grampians Psychiatric Services. health care providers. For the period July 1, 2011 to June 30, 2012, Ballarat Accountability Health Services was accountable, through its board of management, to the Hon. David Davis, MLC, Minister for Understanding our role in providing a safe environment for Health. staff, patients, visitors and members of the community. We take personal responsibility to maintain the necessary skills and competencies to perform our workforce roles and encourage others to do the same. If we make mistakes, we support each other to be open about them in order to learn. Collaboration Initiating engagement with our services and professionals both internally and externally, sharing our knowledge and experiences to build a better health system.

4 Ballarat Health Services REPORT OF OPERATIONS

CAPITAL WORKS

The 2012-2013 State Government Budget contained great news The total cost of works including the recent announcement totals for Ballarat Health Services with the allocation of $46.4M for the approximately $150 million. construction of: Another key feature of the master plan is the consideration of • a helipad; “future-proofi ng”. • multi-deck car park; Examples include building four linear accelerator bunkers in the • bed expansion; BRICC, of which two are for future expansion; building an extra • an Ambulatory Care Centre; and, shell for a second catheter laboratory in the Cardiovascular Suite; and construction of two additional fl oors for administrative • mother-baby mental health unit. functions in the BRICC, which in the future could be used for the expansion of cancer services. In addition the Masterplan identifi es The BHS Service Plan and Model of Care, prepared in 2006, future growth options for other services including the Emergency details the services to be provided now and into the future and Department, Intensive Care Unit, Radiology and Mental Health. considered factors including regional demographics, utilisation statistics, health care trends, Government Health Plans and It is proposed the new Ambulatory Care Centre, to be burden of disease fi gures. constructed once Yuille House is vacated and demolished, will abut the Bolte Wing of the Base Hospital. This will enable the The BHS master plan details the facilities and buildings required extension of the Operating Theatres, Day Procedure and Central to provide those services along with functional relationships Sterile Supply Department (CSSD) into the fi rst fl oor of the between departments. Ambulatory Care Centre. Our master plan has since been updated on several occasions as The ground fl oor of the Ambulatory Care Centre will include a buildings are completed or as circumstances change. The master new main entrance for the Base Hospital, along with reception, plan is now being revised following construction that has taken and will enable a re-alignment of internal corridors. Pharmacy will place over time and proposed building activity. also need to be relocated. Since the development of both documents, BHS has achieved All specialist clinics will be relocated from the West Wing to substantial funding allocations for capital works including: the Ambulatory Care Centre. This will enable ward areas to be • commissioning of an additional Operating Theatre; expanded into the vacated West Wing. • redevelopment of the Mental Health Service Adult Acute Unit; • construction of a new Neonatal Special Care Unit; • construction of a new Midwifery Clinic area; • redevelopment of the Emergency Department including provision of an expanded waiting room and reception, fast track bays, improved security and a Short Stay Unit; • construction of the Cardiovascular Service; • construction of the Deakin University Clinical School; • redevelopment of the Library; • relocation of the Dental Clinic and subsequent funding for a new stand-alone expanded Clinic; • construction of the Ballarat Regional Integrated Cancer Centre (BRICC); • relocation of administrative functions currently in Yuille House to an additional two fl oors being built on the BRICC; • upgrade of Power Supply and Emergency Generator Backup System housed in a new Energy Centre; and, • commissioning of an additional bed in the Intensive Care Unit.

www.bhs.org.au 5 APPOINTMENT OF DIRECTOR OF SURGERY

As well as increasing bed numbers the expansion will allow BHS has a history of attracting quality candidates to its ranks. existing problems to be addressed including: In February 2012 we welcomed Vascular and General Surgeon Matthew Hadfi eld as our new Director of Surgery. • inadequate sized staff stations; • access to computers; Mr Hadfi eld was previously a Consultant Vascular and General Surgeon, Pennine Acute Hospitals NHS Trust in England where • storage; he provided service to an estimated one million people in the • bathroom facilities; and North East sector of Greater Manchester. With one other vascular • facilities for bariatric patients. surgeons he introduced endovascular aneurysm repair to the trust and also led the setting up a day-unit Endovenous Laser Therapy The proposed car park will initially be two levels, ground and service for varicose veins. fi rst fl oor with the helipad at a fourth fl oor level. As demand increases, additional levels may be added to the car park. He is making a very signifi cant contribution to BHS. BHS is experiencing a substantial period of growth and development, and it is pleasing to receive support from the Department of Health along with State and Federal governments to further expand our facilities. The recently announced projects will present a number of logistical and planning challenges for BHS. To assist the process architectural, engineering and other building consultants have been appointed and user groups will be established to provide input. After the planning and design processes are completed, the projects will proceed to tender followed by construction. On completion these projects will alleviate four signifi cant problems on the Base Hospital site namely bed capacity, patient and staff amenities in the wards, car parking and the opportunity to expand the Operating Theatre Suite and CSSD.

EDUCATION

BHS places a high value on education and provides substantial incentives in the form of scholarships for staff who wish to build on their expertise. BHS operates a Centre for Nursing and Health Education that provides a range of courses for nurses who wish to upgrade their skills and keep abreast of developments in their profession. This fi nancial year we also saw the fi rst cohort of endorsed enrolled nurses, trained by BHS, each awarded a Diploma of Nursing. The course the 14 students completed is unique in Victoria. It combines academic study with paid on-the-job training in the many wards, clinics and aged care homes operated by BHS.

6 Ballarat Health Services MENTAL HEALTH SERVICES WOUND CARE PROJECT

Mental Health Services were signifi cantly restructured over the Pressure ulcers or “bed sores” were reduced to an all- course of the year. This has resulted in the employment of more time low at BHS this year as a result of a fresh approach mental health professionals and the establishment of mental to wound care. The number of acute care patients with health teams better able to meet the community’s mental health pressure wounds at the Ballarat Base Hospital dropped to needs. just three per cent by June 2012, down from 11 per cent in early 2010. The teams include: These fi gures represent one of the lowest international • The Infant and Child Mental Health Team which supports pressure ulcer rates and are believed to set a new children aged up to 14 years; benchmark for Australian hospitals As a consequence • The Youth Mental Health Team which supports those aged 15 the BHS Wound Care Improvement Program, introduced to 25 years; in 2010 with partner Smith and Nephew, is being • The Adult Mental Health Team for the 26 to 64 age group; introduced by a number of other Victorian health and, services. • The Seniors Mental Health Team for those aged over 65 years. BHS adopted new, evidence-based education modules on how to better care for patients who entered hospital The restructure, which saw a 28 per cent increase in the number with an existing pressure ulcer, or who were at risk of of young people accepted for mental health treatment, has been developing a pressure ulcer while in hospital. part of a demonstration project funded by the State Government and provides a template for mental health services elsewhere in The other signifi cant change involved a streamlining of the state. the range of wound dressings used within the health service from 130 different products to about 20. This has The demonstration project provides a greater emphasis on made the management of dressings much simpler and early intervention with the Infant and Child Team operating an more effective. expanded CAST (Cool at School Together) program in partnership with the Department of Education and Early Childhood The new program also generated savings in the cost of Development and Catholic Education Offi ce that is now offered wound care products. Part of these savings has been to kindergartens. invested in the employment of additional wound care consultants. Feedback from young people, carers and other primary care providers is that the service is now far more responsive and accessible.

RESIDENTIAL CARE

The process of consolidating our residential facilities in Sebastopol began with the merger of Jessie Gillett with the refurbished James Thomas Court Hostel. This was in response to an ongoing decline in demand for low-care residential accommodation. Jessie Gillett, which could potentially accommodate more than 40 residents, had been home to just 15 residents leading up to the merger. Most residents chose to move into the James Thomas Court Hostel, which is directly connected to the Jessie Gillett Hostel. Jessie Gillett staff were redeployed to other BHS residential services. Under the recently appointed Executive Director of Residential Services, Sue Gervasoni, many new and contemporary approaches to residential care are evident, including the introduction of the Respecting Patient Choices Program. Congratulations are also extended to all staff in Residential Services for the achievement of full accreditation status in the recent survey process.

www.bhs.org.au 7 BALLARAT REGIONAL INTEGRATED CANCER PARTNERSHIP AGREEMENT CENTRE (BRICC) WITH BADAC

The BRICC is on schedule to accept its fi rst patients early in 2013. The partnership agreement between BHS and the Ballarat and The construction site itself became something of a landmark with District Aboriginal Co-operative (BADAC), signed in 2006, the large crane towering over the streetscape. The building itself continues to bring about positive health outcomes for the is set to be a striking addition to Ballarat’s architecture along with Indigenous community. being a treatment and wellness facility that will help thousands of Ballarat and Grampians cancer patients and their families each Achievements include an increased participation in antenatal year. classes, aided by an Aboriginal Midwife Program along with increased attendance at outpatient and dental appointments. When it opens the BRICC will contain two linear accelerators and 12 chemotherapy chairs. It will also feature a Wellness Centre, The number of indigenous babies born at the BHS Base Hospital an area dedicated to the social, emotional and psychological has also risen in recent years and in 2011 there were 37 babies wellbeing of patients, their families and friends. born to indigenous parents who averaged 10 antenatal visits per pregnancy. The BRICC received funding of $42 million from the Federal Government and $13 million from the State Government. A A new family-centred dental program provided in a culturally community-based fundraising campaign to ensure the BRICC is appropriate setting has been established and there is now no the best facility it can be is on track to raise a further $2 million. waiting time for indigenous clients needing dental care. Before the establishment of this program many in the indigenous community were accessing a Melbourne-based service with a waiting time of about three years. BHS remains committed to working with BADAC to “close the CARDIOVASCULAR SUITE gap” and improve the health status of the Indigenous community.

The new $6 million Cardiovascular Suite at the Ballarat Base Hospital, opened in October 2011, contains a state-of-the-art RESEARCH cardiac catheter laboratory in which a range of procedures – including the insertion of pacemakers and stents – can be carried out. Research has more than doubled in the 2011-2012 year with 76 new projects under way compared to 35 in the previous year, and The BHS Cardiology Department sees about 900 patients a current total of 172 active studies annually. This fi gure is expected to grow with our region having a higher than average incidence of cardiovascular disease. New research was reviewed and processed by the BHS and St John of God Human Research Ethics Committee for the following Before the Cardiovascular Suite began operating, many cardiology health services in the past year: East Wimmera Health Service, patients had to travel to Melbourne for certain procedures. Now, Stawell Regional Health, Beaufort and Skipton Health Service, more people are able to have cardiology procedures carried out Ballarat Hospice Care, Wimmera Healthcare Group, Maryborough closer to home. District Health Service, Rural North West Health, Dunmunkle Health Services, Djerriwarrh Health Service, East Grampians Health Service, Ballarat Oncology and Haematology Service, Ballarat Day Procedure Centre, and Ballarat and District Division of General Practice. RETIRING BOARD The BHS Strategic Research Plan 2010-2015 led by the BHS Research Advisory Committee resulted in the development of the MEMBERS BHS Research Governance Policy and the hosting of the inaugural BHS Research Symposium held in September 2011. Feedback from Symposium participants was positive with overwhelming This year we farewelled a number of board members whose support for it to become an annual event. terms expired on June 30, 2012. The following outgoing board members provided outstanding service to BHS over a number of years: IMPROVED CARE Susanne McKenzie joined the Board in 2004, serving as vice- PLANNING president and chair of committees including the Quality Care Committee; Robyn Reeves joined the board in 2008 while Paul We have worked hard to ensure local hospitals are more involved Jans joined the board in 2008 and chaired the Finance and Audit in the patient journey. Representatives from our Emergency committees. Department and Operational Performance and Improvement Directorate have met with sub-regional hospitals to help facilitate Mr Jans, Ms McKenzie and Ms Reeves provided distinguished the timely transfer of patients back to referring hospitals service to BHS during a period of change and development. following treatment at BHS Over the course of their terms they were involved in overseeing an expansion of consumer engagement, service provision, the building of some wonderful new facilities and sound fi nancial performance, In early July 2012 we welcomed new board members Jock Selkirk and Mark Harris.

8 Ballarat Health Services Babies born in Ballarat Base Hospital

PATIENT THROUGHPUT 1400 BHS recorded a record number of births, 1349, in 2011-12, eclipsing the previous record of 1289 set last 1350 year fi nancial year. The busiest month in our Maternity 1300 Ward was November 2011, with 127 births. The births included 14 sets of twins. 1250 Our operating theatres were once again busy, with 8,574 surgeries performed. For the fi rst time in many 1200 years the number of people attending our Emergency Department was relatively stable. In 2011-2012, 1150 52,522 people attended the ED compared to 52,601 in 2010-2011. 1100

There were 44,860 attendances at outpatient clinics, 1050 a record number, while acute hospital bed days grew by 5.02 per cent to 83,560.Inpatient separations 1000 numbered 36,361 compared to 34,174 in 2010-11. 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 Our total waiting list for elective surgery as of June 30 was 1,228, an increase on last year’s fi gure of 1,095.

A HEALTHY AND SAFE Other safety initiatives include: • promotion of ergonomic issues in the offi ce environments; ENVIRONMENT • improved handling and storage of hazardous substances and dangerous goods; BHS is committed to providing a safe and healthy environment for staff, patients, residents, visitors, volunteers and contractors at all • revision of the general workplace hazard inspection checklist our facilities. This commitment includes achieving best practice in to improve its usability; health and safety, with a focus on continuous improvement. • upgraded and improved safety information on the intranet; BHS has implemented a range of initiatives that ensures the and, organisation builds on its robust safety-focused culture. Improving communication and consultation has resulted in more health and • a best practice sharps and clinical waste disposal system. safety representatives across the organisation and an increase in In 2011-12 BHS experienced its lowest levels of compensable reporting of incidents and hazards, leading to improved safety injuries for a number of years while the Workers Compensation outcomes. Performance Rate is currently better than the industry average. Manual handling activities, especially in relation to patient BHS will continue to monitor its health and safety performance handling, continue to be a risk for the healthcare sector. BHS and implement initiatives to ensure a culture of continuous has invested approximately $400,000 to reduce the risk of improvement in health and safety is maintained. musculoskeletal injuries. The funding has been used to purchase new patient handling equipment, motorised equipment to move patient beds and to provide staff training. This strategy has seen a reduction in the number of manual handling injuries.

www.bhs.org.au 9 DENTAL CLINIC

BHS took over management of the public dental clinic in Ballarat East Grampians Health Service, Stawell Regional Health, East in 2008. Since then, waiting times for standard appointments Wimmera Health Service, Beaufort and Skipton Health Service, have reduced signifi cantly. Djerriwarrh Health Service - Bacchus Marsh, Maryborough Health and Hepburn Health Services. A highlight for the year is the planning and scoping for a new dental facility which will comprise 20 dental chairs, including 10 The contract to provide linen services to Bendigo Health Care dedicated to teaching, following an agreement reached with La Group and a number of other health services in the Loddon Trobe University’s Dental School based in Bendigo. It is expected Mallee Region was announced by Eureka Linen in January 2012. this new facility will be completed towards the end of 2013. The extra work at Eureka Linen’s Lonsdale Street laundry – about 30 tonnes of linen each week - saw the creation of about 30 OUR BUSINESSES part-time jobs bringing to more than 80 the total number of Eureka Linen employees. BHS CATERING An investment of more than $500,000 in extra plant and equipment including a new washing unit, linen press and delivery BHS Catering, a business unit of Ballarat Health Services, not only truck was also made to meet the growth in the business. provides meals for public patients and residents in Ballarat Health Services. It also has a commercial catering arm providing Meals on Wheels for the City of Ballarat, fi ve metropolitan Melbourne municipalities, 14 childcare centres and correctional remand FINANCIAL RESULTS centres.

More than 120 staff work in the kitchen and make up a team BHS recorded a small fi nancial surplus of $214,000. This which has become recognized for quality services which have continues the trend of BHS recording operating surpluses over the received an internationally accredited food safety award. past decade and was a pleasing result given the building activity and ongoing expansion of services. SAFETY LINK Safety Link is a 24-hour Personal Alarm Call Response Service that links clients with family, friends or emergency services in times of need. RECOGNITION The service, which provides Australia-wide coverage, is designed for people who may be at risk due to age, ill-health or a disability and comprises a personal alarm connected through the existing The ongoing strong performance of BHS is a direct refl ection of telephone system to highly trained staff at the Safety Link the work of staff and volunteers, in both clinical and non-clinical Monitoring Centre. roles. In late 2011 Safey Link celebrated its 30th anniversary We wish to acknowledge the efforts of staff and volunteers in continuing to ensure that we provide the best possible care for patients and clients in Ballarat and the Grampians region who STATE-WIDE EQUIPMENT need our services. PROGRAM The SWEP, which began in December, 2010, replaced 26 aids and equipment issuing centres that had operated around the state RESPONSIBLE BODIES over the past 25 years. DECLARATION SWEP provides people with a permanent or long-term disability with subsidised aids and equipment to enhance independence In accordance with the Financial Management Act 1994, we are in their home, facilitate community participation and support pleased to present the Report of Operations for Ballarat Health families and carers in their roles. Services for the year ending 30 June 2012. Programs funded under the State-wide Equipment Program include: • Domiciliary Oxygen; • Continence Aids; Andrew Faull • Supported Accommodation Equipment Assistance Scheme; Board of Management President • Aids and Equipment; and • Repairs and Reissue.

EUREKA LINEN Originally built in 1979 Eureka Linen provides rental linen to healthcare facilities in an area that stretches from Birchip to Bacchus Marsh. Andrewd Rowe Ballarat Health Services, Bendigo Health Care Group and the Chief Executive Offi cer St John of God hospitals in Ballarat and Geelong are Eureka Linen’s largest commercial clients. Other major customers include July 31, 2012

10 Ballarat Health Services ORGANISATIONAL CHART

Effective 8th June, 2011

Director Foundation and Fundraising - Geoff Millar

Director Governance & Risk Management - Keren Day Chief Executive Offi cer Andrew Rowe Manager, Population Health & Strategic Planning - Tracey Wilson

Manager Media & Communications - Nicholas Higgins

ED Medical ED ED Acute ED Sub Acute ED Residential ED Mental ED Finance, ED Corporate ED Human Services++ Operational Nursing & & Services Health Services Information Services Resources Performance & Midwifery## Community** & Business Improvement Development Philip Rowena Leanne Wendy Sue Tamara Andrew Steven Trevor Reasbeck Clift Shea Hubbard Gervasoni Irish Kinnersly Jones Olsson

• Acute • Waiting List • Acute Nursing • Sub-Acute • Nursing • CAMHS • Finance • Asset & Facility • Human Medical Staff: Management Services Services Administration - Community • Health Management Resources - Surgery • Hospital in the • Nursing • Allied Health • Nursing Teams Information • Engineering • Chaplains - Medicine Home Administration • Allied Health Education - CAST Service • Supply • Corporate - Critical Care • Outpatient • Nursing Education • Nursing - Child & Youth • Information • Contracts Education & Services Education Research Technology Development - O & G • Community Redesign and Tender • Activity • Nursing Programs • Ballarat East Project • Imaging and Management • Payroll • Medical Planning Research • Dental Complex • Adult Mental Breastscreen • Food Services • OH&S Administration Eureka Village • After Hours • State-wide Health Services • Cardiovascular • Environmental • Industrial • Senior and Co-ordinators Geoffrey Suite Junior Medical Equipment Cutter Centre - Community • Security Employee Staff • Centralised Programs Teams - • Consulting Relations Workforce • QE Centre Ballarat SE, and Diagnostic • Safety Link Talbot Place • Equal • University Unit SW, NE, NW Suite • Laundry Bill Crawford Opportunity relationships Services • Redesign & Lodge - Acute • Data • Volunteers - medical Improvement Inpatient Management • Switchboard • Queen • Medical Services and Reporting • Emergency Elizabeth • Print Shop Planning and education - Secure • Information Village QE • Car Parking Preparedness • Research and Village Hostel Extended Care Technology Ethics PS Hobson - Community Alliance • Medico-Legal Nursing Care Unit Hailey House • Mortuary - Ararat • Sebastopol • Pharmacy - Horsham Complex • Pathology Jack Lonsdale • Aged Persons Mental Health • Infection Lodge Jessie Services Control Gillett Court James Thomas - Community • Library Court Team - Acute Inpatient Unit - Aged High Level Needs Nursing Home Chief Nursing Offi cer ## • Education Chief Medical Offi cer ++ Team Chief Allied Health Offi cer ** Psychiatry Denotes close and co-operative relationship in respect to the operation of Acute Services.

www.bhs.org.au 11 BOARD OF MANAGEMENT AS AT JUNE 30, 2012

PRESIDENT VICE-PRESIDENT VICE-PRESIDENT ANDREW FAULL SUSANNE MCKENZIE MARK PATTERSON PAUL JANS BEc, LLB (Hons) BA, DipEd, LLB MBA, Cert Public Relations, B Comm, CPA, Lawyer Lawyer Dip. Management Business Manager, Board member since 2011 Board member since 2004 Chief Executive Offi cer, Damascus College Term of appointment: Term of appointment: North Ballarat Football Club Board member since 2008 01.07.11 - 30.06.14 01.07.09 - 30.06.12 Board member since 2008 Term of appointment: Board meetings attended: Board meetings attended: Term of appointment: 01.07.09 to 30.06.12 11 10 01.07.10 to 30.06.13 Board meetings attended: Board committees: Board committees: Board meetings attended: 8 Audit, Executive and Board Executive and Human 11 Board committees: Human Resources, Resources, Community Board committees: Audit, Board Executive and Credentials Appeals Tribunal, Advisory, Human Research Board Executive and Human Human Resources, Finance. Medical Credentials and Ethics, Quality Care. Resources, Human Research Appointments Committee, Ethics, Primary Care and Primary Care and Population Population Health Advisory, Health Advisory, Futures, Quality Care. St John of God Joint Liaison.

ROBYN REEVES VIRGINIA FENELON CRAIG COLTMAN NOEL COXALL B SocWk, BA (Psych/Phil), M.Ed Ballarat, 2002 Board member since 2011 Advisor Grad Dip Mgmt Education and Training Board member since 2011 Associate Fellow, Australian Consultant Term of appointment: 01.07.11 - 30.06.14 Term of appointment: College of Health Service Board member since 2009 Executives Member, Board meetings attended: 01.07.11 to 30.06.14 Australian Institute of Term of appointment: 9 Board meetings attended: 01.07.12 to 30.06.15 Company Directors Board committees: 11 Board member since 2008 Board meetings attended: Community Advisory, Board committees: 10 Term of appointment: Finance, Primary Care and Community Advisory, 01.07.09 - 30.06.12 Board committees: Population Advisory, Quality Finance, St John of God Audit, Medical Credentials Care, Futures. Joint Liaison, Project Control Board meetings attended: and Appointments, Futures, Group, 10 Project Control Group. Board committees: Audit, Finance, Futures.

12 Ballarat Health Services EXECUTIVE TEAM

Chief Executive Offi cer ANDREW ROWE: BHA, MHA, AFCHSE, CHE Appointed June 2003 Andrew Philip Sue Tamara Rowena Rowe Reasbeck Gervasoni Irish Clift The Chief Executive Offi cer is responsible to the Board of Management for the effi cient and effective management of Ballarat Health Services. Major responsibilities include the development and implementation of service and strategic planning, the promotion of quality care, optimising fi nancial performance and implementation of human resource strategies. The Chief Executive Offi cer chairs the Executive Staff Council Andrew Trevor Steven Leanne Wendy which comprises the senior executive staff of Ballarat Health Kinnersly Olsson Jones Shea Hubbard Services. He provides leadership through collaborative management with staff and consultation with the community. Executive Director - Finance, Information and Business Executive Director - Medical Services Development PHILIP REASBECK: Grad Dip Law, MA, MBBChir, MBA, MD, ANDREW KINNERSLY: BBus, CPA, MBA MRCP, FRCS, FRACS Appointed September 2010 Appointed November 2010 The Executive Director has responsibility for Ballarat Health The Executive Director has overall responsibility for medical Services integrated fi nancial services, including accurate and services including direct service provision and ongoing medical timely budget reports for the Board of Management and education, pharmacy, medical records, the library, ethics and staff. Andrew also has operational responsibility for fi nance, research as well as professional medical issues. Philip ensures all information management, information technology, radiology medical staff have appropriate credentials and actively encourages services, BreastScreen, the Cardiovascular Suite, insurance and the placement of medical students at Ballarat Health Services. In taxation systems. conjunction with all the clinical executives, he has an active role developing clinical governance frameworks, embracing clinical Executive Director - Human Resources risk management and continuous quality improvement. TREVOR OLSSON: B Bus, AIMM, CAHRI, AFCHSE Appointed October 1999 Executive Director – Residential Services The Executive Director Human Resources responsibilities include SUE GERVASONI: RN, RPN, BN, CertCritCare, MBA all aspects of strategic human resource management including Appointed December 2010 recruitment, organisational change, payroll, industrial / employee The Executive Director has direct operational responsibility relations, equal employment opportunity, occupational health and for Residential Aged Care Services. This role supports the safety, chaplaincy services, corporate training and development, organization to achieve its strategic goals through the provision volunteer co-ordination and emergency management. of strategic leadership and support for safe and high quality residential aged care services. Key accountabilities include, the Executive Director - Corporate Services monitoring and management of resources, business performance, STEVEN JONES: Grad Cert Pub Sec Mgt, AFACHSE clinical governance and compliance with legislation and Aged Appointment May 2005 Care Standards. The Executive Director Corporate Services has responsibility for engineering and environmental services as well as the business Executive Director - Mental Health Services units, BHS Catering, Eureka Linen, and Safety Link. Steven also TAMARA IRISH: RN, RM, RPN has responsibility for service planning, capital building and Appointed June 2010 equipment, accommodation and facilities management and The Executive Director is responsible for the full range of development. psychiatric services provided by Ballarat Health Services within the Grampians Region. These services include child and adolescent, Executive Director – Acute Nursing and Midwifery adult, and aged persons mental health services both within the LEANNE SHEA: RN, Adv Dip Bus Mgt community and as inpatient services. Tamara has professional Appointed April 2011 responsibility for all psychiatric staff. She has a particular The Executive Director provides organisational and professional interest in the routine delivery of evidence-based ‘best practice’’ leadership to contribute to developing and achieving strategic treatments to clients and their carers, in the context of a family goals, policies, healthcare reforms, budget and quality inclusive, recovery orientated, model of integrated mental health management of acute nursing and midwifery services at Ballarat care. Health Services. Major management responsibilities include business, resource management, service planning and provision, Executive Director – Operational Performance and and quality improvement and compliance. Improvement ROWENA CLIFT: DipAppScNsg, Ba(Mid), GradCertHlthAdmin Executive Director – Sub-acute and Community Appointed May 2009 WENDY HUBBARD: BAppSC(PT), MAppSc(HM), MBA The Executive Director is responsible for leading the organization Appointed March 2000 on patient access, performance, improvement and service The Executive Director has responsibility for the sub-acute services redesign. The role works across the divisions and portfolios including rehabilitation, aged care evaluation and palliative care, in acute and sub-acute services to develop and implement an has responsibility for community-based services, dental services organization-wide improvement program to ensure BHS responds and the nine allied health disciplines. With a special interest and to current and future needs of the community. The role oversees expertise in quality systems she chairs the Clinical Review Panel, Outpatients, Medihotel, Transit Lounge, Access Team, Redesign has executive responsibility for the Consumer Advisory Committee and Hospital in the Home. and supports the Governance and Risk Management Unit in all aspects of their service.

www.bhs.org.au 13 OUR PEOPLE

JUNE JUNE Labour Category Current Month FTE* YTD FTE** 2011 2012 2011 2012 Nursing 971.00 1139.20 967.03 1042.72 Administration and Clerical 405.13 432.94 387.68 428.36 Medical Support 213.56 221.34 211.19 226.77 Hotel and Allied Services 308.46 321.84 347.90 328.97 Medical Offi cers 25.03 28.52 27.47 26.68 Hospital Medical Offi cers 117.93 105.28 114.69 122.97 Sessional Clinicians 32.62 34.69 31.61 32.18 Ancillary Staff (Allied Health) 196.98 219.83 195.55 216.48 Dental offi cers 4.79 5.83 5.76 5.34 Other dental Clinicans/Specialist 4.67 3.43 4.52 4.32

Number of employees occupying full, part time and casual position at 30/6/2012 is 3726. SENIOR STAFF

CHIEF EXECUTIVE OFFICER James Hurley MBBS, BMedSci, PhD, Christopher Powers BSc MD, FRACP Matthias Russ, als Arzt FRACS Andrew Rowe BHA, MHA, AFCHSE, CHE FRACP Mark Johannesen LLB, MBBS, FRACP Ear, Nose & Throat Surgeons Anthony Kemp MBBS, FRACP (Western Health) EXECUTIVE SERVICES Paul Donoghue MBBS, FRCS Brett Knight MBBS, FRACP Rehabilitation Medicine Mark Guirguis MBBS, FRACS Manager, Population Health and John Richmond MBBS, FRACP Richard Bignell MBBS, FAFRM Niall McConchie MBBS, FRACS Strategic Planning Wayne Spring MBBS, FRCP, FRACP Thomas Kraemer MBBS (Germany), Bridget Clancy MBBS, FRACS Tracey Wilson DipAppSci, MBA, MPHAA John Yamba MBBS, FRACP FRACP Ophthalmologists Director, Foundation & Fundraising Cardiologists Susan Hodson MBBS Dip RANZCO&G, David McKnight MBBS, FRACO, FRACS Geoff Millar BA, BEd, GradDipEdAdmin, Christopher Hengel MBBS, FRACP FRACGP Michael Toohey MBBS, FRACO DipTeach, GradCertMgt, MFIA John Stickland MBBS, FRACP, FRACRM Michael McDonough MBBS, Dip Clin John van den Broek MBBS, FRACP Tox, MAddSc, FAChAM (Western Health) Facio Maxilliary Director, Governance & Risk Romulo Ernesto Oqueli Flores, MD, Graeme Fowler MDSc, FDSRCPS Management Unit Palliative Care Medicine FRACP Keren Day RN,BN,GradDip AdvNsg/ David Brumley MBBS, FRACGP, MSC, Plastic Surgeon Rodney Reddy MBChB FRACP WmnHlth, MNursg, DipProjMan FAChPM Robert Sheen MBBS, FRCS, FRACS Gastroenterologists Greg Mewett MBBS, DRCOG, FRACGP, Risk Manager Women and Children’s Health Maree Pekin MBBS, FRACP Postgrad Dip Pall Med, FAChP Trudy Shortal RN, BNGrad Cert CCN, Services Mohammed Al-Ansari MBChB ,FRACP MMgt Surgical Services Clinical Director and Head of John Yamba MBBS, FRACP Manager, Media and Clinical Director Obstetrics & Gynaecology Neurology Communications Matthew Hadfi eld, MB ChB FRCS (Gen) Paul Davey MBBS, FRACOG Thomas Kraemer MBBS, FRACP Nick Higgins BA, GradDipEnvSt Gynaecological Oncologist Mandy Lau MBBS FRACP Clinical Supervisor Advanced Surgical Training Tom Jobling MBBS, FRCOG, FRANZCOG, MEDICAL SERVICES Oncologists Bruce Stewart, MBBS, FRACS CGO, MD Kate Hamilton MBBS, FRACP Executive Director Urogynaecologist Geoffrey Chong MBBS, FRACP Surgeons Philip Reasbeck MA, MBBChir, MBA, Dr Jeanette Lim MBBS, FRANZCOG MD, MRCP, FRCS, FRACS GradDipLaw Stephen Vaughan MBBS, FRACP General: Lee Na Teo MBChB, FRCP Ruth Bollard MBChB, FRCS(Gen) Obstetricians and Gynaecologists Deputy Director Yen Tran MBBS FRACP Peter Denton MBBS, FRACAS Torben Iversen MD, ACOG, RANZCOG Linda Danvers MBBS, FRACGP, Heather Francis MBBS, FRACP David Deutscher BSc, MBBS, FRACS Russell Dalton MBBS, FRANZCOG DipRACOG, MPH AFRACMA AdDipMgt Deepika Monga MBBS, FRANZCOG, Nephrology Stuart Eaton MBBS, FRACS MD(O&G),DNBE Manager Junior Medical Workforce John Richmond,MBBS, FRACP Tom Fisher MBBS, FRACS Patrick Moloney MBBS, FRANZCOG Unit Christoph Gatzka MBBS, MD FRACP Andrew Lowe MBBS, FRACS Helen Finneran BPhty MBA Bruce Stewart MBBS, FRACS Michael Bardsley MBBS, FRANZCOG Clinical Research Co-ordinator Stephen Tobin MBBS, FRACS, CIBGS Clinical Director and Head of Infection Control Coordinator Carmel Goss RN Sue Flockhart RN,BN,MNursing,Gra Daniel Wong MBBS FRACS Paediatrics dDipMgt&InfectCntrl, DipPrjctMgt, Sub-Acute Medicine Vascular Surgeons Maurice Easton MBBS, FRACP CertIVAss&Tng,RGNC Clinical Director of Sub-Acute Michael Condous MBBS, FRACS Paediatricians Clinical and Research Governance Medicine Robert Ventura MBBS, FRCS, FRACS David Tickell MBBS, FRACP Offi cer Joseph Ibrahim MBBS, PhD, FAFPHM, Matthew Hadfi eld, M MB ChB FRCS Louise du Plessis MBChB, FRACP Susan Shea BAppSc(Pod), PhD, FAAQHC FRACP (Gen) Mark Nethercote MBBS, FRACP Adam Scheinberg MBBS, MMed FRACP Medical Education Offi cer Geriatric Medicine Urologists FAFRM Terry Miller, M.Ed PGradCert.Tert.Teach Mark Yates MBBS, FRACP David Cook MBBS, FRACS Fiona Noble MBBS, FRACP PGradDipEd(Sec) BA DipBus CPA John Hurley MBBS, LRCP, MRCS, RCOG, Lachlan Dodds MBBS, FRACS MRCP, FAFRM Lydia Johns-Putra, MBBS, FRACS Philippa Bolton MBChB (Otago) FRACP Internal Medicine Service Kim Tew MBBS, FRACP Richard McMullin MBBS, FRACS Endocrinologist (Paediatric) Acting Clinical Director Internal Judith Adams MBBS, DGM, FRACP Robert Forsyth MBBS, FRACS Christine Rodder MBBS, FRACP Medicine Philip Street MBBS, FRACP Orthopaedic Surgeons Neurologist (Paediatric) James Hurley MBBS, FRACP Rosemarie Shea MBBS, FRACP David Mitchell MBBS, FRACS Michael Hayman MBBS, FRACP Jennifer Schwarz MBBS, Grad Dip Ed, Physicians Shaun English MBBS, FRACS Critical Care Services Grad Dip Pall Med, FRACP (Western John Nelson MBBS, FRACS General (Sub-Specialty) Health) Milos Kolarik FRACS PCS, FCS Chairman of Critical Care and Christoph Gatzka MBBS, MD, FRACP Richard Whiting MBBS, FRACP (Western John Dillon MBBS FRACS (Orth) Director of Emergency Department Health) George Bousonis MBBS Jaycen Cruickshank MBBS, FACEM

14 Ballarat Health Services Director of Anaesthesia Dan Arhanghelschi, MBBS, FRANZCR Senior Human Resources Consultant Clinical Manager Aged Persons Fred Rosewarne MBBS, FANZCA Peter Lange, FRCR, MRCP – Learning & Development (Non Inpatient Mental Health Services Deputy Director of Anaesthesia Kenny Wong, BSC, BMed, MSC, FRACP, Clinical) Jane Lockhart RPN, BN, RN, Grad Cert Elizabeth Bashford MBBS, FRANZCA ANZAPNM, DDU Megan Ali BMgt(HR/Marktng), Gerontology Jamie Tran (Radiology Registrar) MBChB CertIVTAA, MAHRI Supervisor of Training in Clinical Manager Community Care Unit Anaesthesia Dorevitch Pathology Senior Human Resources Consultant Brendan Thomas RPN, Grad Dip CBT Michael Shaw MBBS, FRCA, FANZCA Pathologists Leah Shillito BA, GradDipBus(HRM) Clincal Manager Adult Acute Anaesthetists Alan Jones MBBS, FRCPA Senior Human Resources Consultant Inpatient Unit Deas Brouwer MBBS FRANZCA Stephan Warwyk BSc, MBBS, PHD, Angela Turley BBus(HR/Marktng), Marice O’Brien RN, RPN Bruce Christie MBBS, FANZCA FRCPA CertIVTAA, DipProjMgt, MAHRI Manager Education, Training and Richard Connell MBChB, FANZCA Laboratory Manager Senior Human Resources Consultant Professional Development Graeme Clarke MBBS, FANZCA Michael Phyland BAppSc Maree Baker GradCertHRM, Julia Hailes MEd, PhD Erika Dutz MD FANZCA Forensic Medicine AdDipM(HRM) DipBusHR, CertIVOHS, Manager Quality and Safety Michael Farrell MBBS, DRCOG, FFARCS Anthony Roberts MBBS, FRCPA, CAHRI Wendy Borowiak MBA Rob Gazzard MBBS, FANZCA, FRC(Path), MIAC Manager: Emergency Management FFICANZCA Executive Director Acute Nursing & Charles Harpur Don Garlick ADOBM, GradDipCritCare, Midwifery Greg Henderson MBBS, FANZCA CritCareRN, CertIVTAA, CertIVFireTech Greg Hughes MBBS, FANZCA PHARMACY Leanne Shea RN, AdvDipBusMgt, Tony Keeble MBBS, FANZCA Pastoral Care Coordinator DipProjMan Director Craig Mitchell MBBS, FRANZCA Johanna Niedra TPTC, Aaron Fitzpatrick BPharm, GradCertMgt, Director of Nursing - Business & John Oswald MBBS FRANZCA GradCertGrie&LossC MSHP Service Development Ross Phillips MBBS, FANZCA Volunteer and Work Experience Kym Peter RN, RM, BBus(Eco), Robert Ray MBBS, FANZCA Deputy Director Coordinator GradCertHEcon, MHthSc, CCRN, Angus Richardson MBBS, FANZCA Daniel Guidone BPharm, MClinPharm, Sue Jakob DipTeach(Prim), PICNC, CertHlthMgt, Cert IVAss&Tng, Sanjay Sharma MBBS. MD MSHP (to January 2012) GradDipEd(Lit), CertIVTAA GradCertAdvNsg, MCN (From October Michael Shaw MBBS, FRCA, FANZCA Jaclyn Baker BPharm, MPublicHealth, 2012) Neil Shorney MBChB, FRCA GradCertMgt, MSHP, MPS (from MENTAL HEALTH SERVICES Director Clinical Education & Practice Mark Tuck MBBS, FANZCA February 2012) Executive Director Development Michael Whitehead MBBS, FANZCA Tamara Irish RN, RM, RPN Denielle Beardmore RN, MEd, Jeyanthi Kunadhasan MD, FANZCA LIBRARY GradDipEdT, GradDipAdvClinicalNsgOnc/ Jason Thomas MBBS, FANZCA Manager Director of Clinical Services PallCare, BN, DipHlthSci, CertIVAss&Tng, Gemma Siemensma, DipLIS, Abdul Khalid (A/Prof) MBBS, FRANZCP, Director of Intensive Care MD(Psych), CCST DipProjMan, MRCNA Tony Sutherland MBBS, FANZCA, CertIVAss&Tng, BA(LIS), MAppSc(LIM), Director of Nursing - Medical & FFICANZCA Member of Professional Association Consultant Psychiatrists AALIA Rajul Tandon MBBS, MD(Psych) Critical Care Services Deputy Director of Intensive Care Ram Singh MBBS, MD(Psych) M.Sc ( Angie Spencer RN, GradDipBus Rob Gazzard MBBS, FANZCA, OPERATIONAL PERFORMANCE IPAS) (e-Bus&Mkg) FFICANZCA AND IMPROVEMENT Manisha Mishra MBBS, MD(Psych) Nurse Unit Managers Anaesthetists/Intensivists Executive Director Vinit Mathur MBBS, DPM, MD(Psych) 4 South/Day Oncology: Bruce Christie MBBS, FANZCA Rowena Clift RN, DipAppSci(Nsg), Ramesh Chandra MBBS, MD(Psych) Louise Taylor RN, DipN, BN, Doug Paxton MBB, FANZCA BANsg(Mid) ,GradCertHlthAdmin, Sonia Ghai MBBS, DPM(Psych), CertCritCare, CertHlthSrvMgt, DipBus, Greg Henderson MBBS, FANZCA AFCHSE DNB(Psych) DipBus(HR) Robert Ray MBBS, FANZCA David Barton MBBS(UNSW), FRANZCP, Coordinator of Transit Lounge & Craig Mitchell MBBS, FANZCA MRACMA 4 North: Medi-Hotel Angus Richardson MBBS, FANZCA Richard Kefford MBBS, FRANZCP, Vicki Thomas RN, BN, CertHlthSrvMgt Sylvia Mitting RN,RM, DipFrontlineMgt CertAccTrng C&APsych, (RANZCP) Emergency Medicine Dialysis Unit Coordinator of Hospital in the Home Dr Rajnarayan Mahasuar MBBS, MD Catherine Thomas RN, BN, CertHlthSrb Director of Emergency Medicine Trish Twaits RN, RM, GradDipAdmin, (Psych) Mgt Jaycen Cruickshank MBBS, FACEM StomalTherapist, MRCNA, Dr Olorunyomi Olowosegun, MBBS, Emergency Department Deputy Directors of Emergency Redesign and Improvement Director Fellow in Psychiatry (Nigeria) Phil Catterson RN, BN, CCRN, MBA, Medicine Anton Freischmidt RN, BScBE(Biomed) Service Managers CertIVProjMan Heather Crook MBBS, FACEM Cardiac Clinical Facilitator Clinical Manager North Ballarat Pauline Chapman MBBS, FACEM Critical Care Unit Sally Kruger DipAppSci(Nsg), BaNsg, Adult Mental Health Services Andrew Thomas RN, BN, CertCritCare, Emergency Physicians GradCertCritlCare Ross Evans BA, M Psych CertIVAss&Tng Nigel Beck MBBS, FACEM Access Manager Clinical Manager South Ballarat David Bruce MBBS Endoscopy Unit Margraret O’Neill BN, GradDipMgt Adult Mental Health Services Andrew Crellin MBBS, FACEM Sandra Holt RN Services Development Offi cer Ian Edgar BAppSci(OT) Mark Hartnell MBBS, FACEM Cardiovascular Suite Lee-Anne Sargeant BA.DipAud Mark Harris MBBS Clinical Manager Wimmera and Fiona Greig RN, BN, CertCritCare (from Amanda Lishman MBBS, FACEM Specialist Clinics NUM Southern Mallee Mental Health October 2011) Vince Russell MBBS Narelle Basham RN, RM, BN, Services Radiology Spiro Tsipouras MBBS, FACEM GCertNurs(Periop), PDipMid, DipPM, Janice Chalmers RGN RMN Margaret Grundell RN, RM, Amanda Wilkin MBBS, FACEM CTAA Clinical Manager Ararat/Stawell CertEmgCare Michael Veal MBBS, FRACGP, FACRRM Mental Health Services Alastair Meyer MBBS, FACEM, FCEM, HUMAN RESOURCES Michael Fryar RPN, BAppSc(NsgAdmin), Donation Nurse Specialist FRCP Executive Director GradDip(PsychNsg), Joanna Forteath, RN, BN, PostGradDip AdvClnclNsg- EmgStrm Senior Medical Offi cers (Emergency Trevor Olsson BBus, AIMM, CAHRI, Clinical Manager (Acting) Infant & Medicine) AFACHSM Child Mental Health Services Director of Nursing - Women’s & Ahmed Alwan MBBS Deputy Executive Director / Dr Julie Rowse BOT (Hons), PhD Children’s Services Waad Elias MBBS Terri Antonio RN, MaMment, Dip C.Psy, Employee Relations Manager Clinical Manager Youth Mental Radiology Kevin Stewart BAppSc(PT), GradDipErg GradCertNsg, Cert IV ProjMment, Cert Health Services IV FL Mment, Cert IV TAE Director of Radiology Contracts and Remuneration Dr Julie Rowse BOT (Hons), PhD Nurse Unit Managers Richard Ussher MBChB, FRANZCR Manager Clinical Manager Aged Persons Rod Beaumont FIPA Radiologists / Nuclear Medicine Mental Health Services - Community Maternity Clinical Services Physicians Manager – Occupational Health and Kevin Harris RN, RPN. Kym Peter RN, RM, BBus(Eco), Paul Walker, MBChB, FRANZCR, DDU, Safety GradCertHEcon, MHthSc, CCRN, Clinical Manager Secure Extended PICNC, CertHlthMgt, Cert IVAss&Tng, CRCPC, FRCPC Tim Reinders GradDipOHM, CPMSIA Care Unit Ian Revfem, MBChB, FRANZCR GradCertAdvNsg, MRCNA, MCN (to Acting Payroll Services Manager Colleen Fryar RN, RPN October 2011) David (Arthur) McKenna, MBChB, BAO, Adam Pegg BPsych MBChB Carolyn Robertson RN, RM, Dip.App. Genevieve Flannery, MBBS, BDSc, MDSc, Sci. (Nursing), Ba Nsg, Post Grad.Dip. FRACP Midwifery (from November 2011)

www.bhs.org.au 15 Maternity Outpatient Services Director of Nursing - Ballarat East Security Manager Clinical Manager Prosthetics/ Sue McRae RN, RM, Grad.Dip.Comm. (and Ballarat Central until January Robert Dekleva GradDipSocSci(SecMgt), Orthotics Hlth, MBA, Cert. Neonatal Intensive 2012) CertIII(Sec) Michelle Oliver BAppSc(P&O), Care Judith Bloomfi eld RN, CertHlthMan, DipBusMgt SUB-ACUTE AND COMMUNITY Special Care Nursery DipBusMgt (to January 2012) Clinical Manager Psychology Nicole Stevens RN, BN, PostGradDipNsg Raylene Fresle RN, Grad DipHlthSci, Executive Director Kylie McKenzie BA(Hons), (Gerontology), CertWndMan, AdvDipBusMgt (from February 2012) Wendy Hubbard BAppSc(PT), MPsych(Clinical), MCCP, MAPS MAppSc(HM), MBA, AFCHSE, CPE PostGradDipNsg (Midwifery), Level 2 Facility Managers Clinical Manager Social Work Neonatal Nursing Course, Cert Neonatal Ricky Relouw RN, BN, GradDipIT, Director of Nursing Sub-acute Catherine Ludbrook BA, BSW Intensive Care Services AdvDipBusMgt, CertIVAss&Tng (to Clinical Manager Speech Pathology Paediatric & Adolescent Unit March 2012) Meredith Theobald RN, RPN, BN, GradCertNsg(MentHlth), CertRehabNsg, Acushla Thompson BAppSc(SP), Clinton Griffi ths BN, PostBasicPaedNsg, Eileen Booth RN, RPNPsych, FamTh, GradCert(Mgt), MSPAA, CPSP DipBusFrontMan CertDev Psych (from May 2012) MRCNA Nurse Unit Managers Coordinator, Allied Health Quality Clinical Nurse Consultants Bill Crawford Lodge and Safety Wound Management/Stomal Beverley Adams RN, BN, RM, CertGeron, Inpatient Complex Care (Jim Gay Cathy Caruso BAppSci(OT), Therapy/Breast Cancer Support AdvDipBus Unit-GEM) GradDipHlthSci(HEd), MAAOT Mary Cranage DipAppSc(Nsg), Marianne Crowe RN, BN (PostReg), Geoffrey Cutter Community DipAppSciNsg, CertStomalTherapy Wendy Burgener RN, GradCertTertEd, BAppScNsg, GrdCertMgt, GrdCertGerontology Manager, Community Programs Wound Care Team DipMgt, DipProjMgt, MHlthSci(Ed), CertIVAss&Tng (to April 2012) Gandarra Palliative Care Unit Michelle Veal RN, BA(Nsg), Matt Squire RN GradCert(BusAdmin) DipPrjMgt Donna Nair RN Eureka Village Hostel Maree Kewish RNDiv1, BAppSc(Nsg), Lee Prentice RNDiv2End MPrimHlthCare(Pall Care) Manager, Aged Care Assessment Pain Management Services Louise Humble RN, Director of Nursing - Queen Inpatient Rehabilitation Olivia Johnstone RN, CertRehabNsg Gary Humphrey BA(HonsSW) GradDipAcuteCareNsg, ICU/CCUCert, Elizabeth Village & Hailey House AdvDipBusMgt, ACRACS MRCNA, GradDipSciMed(PainMgt) Pat Erwin RN, RGNC, BN, GradCertMgt, Sub-Acute Medicine (AdvCertResi&CommServ) MRCNA Cognition Clinical Director of Sub-Acute Manager, Carer’s Programs Michelle Morvell RN, RPN, BN, PS Hobson Medicine Cheryl Hines DipWelf, AdvDipBusMgt CertIVAss&Tng Shirley Madden, RN, PBGNC Joseph Ibrahim MBBS, PhD, MRACMA, Manager, Hospital Admission Risk Diabetes Education Heather George, RN, BN, BBGNC, FAFPHM, FRACP GradDipMid, CertIVAss&Tng Program Barbara White RM, CDE, CertMid, Cert Consultant Physicians Linda Govan RN, GradDip(NsgMgt), CritCare, BchHlthSci(Nsg), GradDip WB Messer Mark Yates MBBS, FRACP MHA, MPH Adult Ed & Training, Cert IV WAT, Grad Sue Hall RNDiv2End, GradCertMgt (to Judith Adams MBBS, DGM, FRACP Cert Diabetes Ed. March 2012) Rosie Shea MBBS, FRACP Manager, Linkages Ben Mudford RN, CDE GradCert Diab Danielle Fisher RN, BN, Philip Street, MBBS, FRACP Nick Grakini BHlthSci(OT) Ed, CertIVAss&Tng. GradCertNsgPaeds, GradCertNsgMtlHlth Mark Yates MBBS, FRACP Manager, Planned Activity Groups Anne Harvey RN, CDE, GradCert Diab (Acting) Thomas Kraemer MBBS, FRACP Jan Stewart BAppSci(PE), Ed, AccNrseImmunisor. Hailey House Rehabilitation Specialists GradDip(HlthSci) Ann Morris, RN, CDE, CPT, Cert Clinical Linda Newby RN, GradDipMidwifery, Richard Bignell MBBS(Hons) FAFRM Manager, Rehabilitation in the Home Teaching, GradCert Diab Ed. GradDipRehabNsg, CertIVOH&S, Susan Hodson MBBS FRACGP and Transition Care Program Judy Hatcher RN, CDE, Grad Cert CertIVAss&Tng Roslyn McIntyre RN, BNPostReg Diabetes Edu, Cert IV WAT Palliative Care Specialists Director of Nursing - Sebastopol David Brumley MBBS, FRACGP, MSC, DipPrjMgt McGrath Breast Care Nurse Complex (and Ballarat Central from FAChPM Advanced Continence Nurse Fiona Reeves RN February 2012) Greg Mewett MBBS, FRACGP, FAChPM Specialist, Grampians Regional Sue Bartlett RN, Grad Cert in Cancer Mick Kirby RN, BAppScNsg, Grad. Continence Service & Palliative Care, Cert IV in Workplace Dental Services DipBusMgt, CCRN, DipProjMan, MRCNA Shirley Whitaker RN, BN, CertContProm, Training & Assessment, Cert in ICU/HDU. Manager Dental Services Jack Lonsdale Lodge Grad.CertHealth, Director of Nursing - Surgical Tracey Wilson DipAppSc(DenThrpy), Jenny Relouw RN, PostGradGer Manager, Grampians Regional Services MBA, MPHAA Jacqui King RN, BN AdvDipBusMgt Palliative Care Team Joy Taylor RN, CertPeriopNsg, Dentists James Thomas Court and Jessie Jade Odgers RN, GradDip(PallCare), GradDipMgt, MRCNA Dr Iven Affl eck BDS Gillett Court GradDip(Psych), GradDipMgt, Dr Pallavi Mishra BDS, ADC, MDSC Nurse Unit Managers Raylene Fresle RN, Grad DipHlthSci, CertIVWrkPlAss&Tng, DipPrjMgt, Dr Petrus Niehaus BDS, ADC (resigned Operating Suite: AdvDipBusMgt (to January 2012) GradDipFrontMan June 2012) Bernice Anderson – RN, CertPeriopNsg Geoffrey James RN, RPN, BN (from Dr Preeti Grover BDS Manager, Post Acute Care and (to October 2011) March 2012) Dr Nidhi Tandon BDS, ADC Central Intake Bernadette Luka – RN GradDipPeriop, Dr Ritu Garg BDS, ADC Helen Jarvis RN, RM, BN, GradCertMgt, GradDipHealthAdmin, CORPORATE SERVICES Dr Giselle Henning BChD, DipOdont MRCNA GradCertEducation, Executive Director Dr Hoang Nguyen BDS (resigned March Allied Health Ambulatory Care ProfCertHealthSystemsMan (from Steven Jones GradCertPubSecMgt, 2012) Coordinator November 2011) AFCHSE Dr Kevin Tan BDS (commenced March Catherine Chibnall B(OT), MHlthSci Perioperative and Day Procedure Director, Major Projects & 2012) Domiciliary Services Coordinator Unit: Infrastructure Dr Ronald Chan BDS (commenced April Margaret Dawson BAppSc(Pod), Loraine Hoiles RN, BN(PostReg) Christopher Lockett OH&SAppSci, 2012) GradDip(Pod), MBA CSSD: GradDipBus Allied Health Quality Coordinator Denise Jackson RN, BN(PostReg), Manager, Facilities Kate Wise BA(HonsPsyc), DipPrjMgt GradCertInfctnCntrl, MRCNA Bob Pickard BEng(Mech)Hons Clinical Manager Dietetics Meredith Atkinson BAppSc(Nut), FINANCE, INFORMATION AND 3 North: Manager, BHS Catering GradDipDiet, MPH BUSINESS DEVELOPMENT Annette McFarlane RN, GradDipBusMgt, Russell Hardy GradCertMgt, Grad Dip HM CertIV(FoodTech), PTC, MIHHC Clinical Manager Exercise Therapy Executive Director Kerry Walsh BEd(PE) Andrew Kinnersly BBus, MBA, ACHSE, 3 South: General Manager, Safety Link AHSFMA, CPA Nicole Snibson RN GCertDiabEd Steven Bruechert AdvDipCS, Clinical Manager Occupational Therapy Deputy Director 2 North: DipMgt/Bus, CertIVTAA, Michele Pearson BAppSc(OT), Mick Smith BCom, AHSFMA, CPA Danelle Klein RN, BN, GradCertOrthoNsg CertIVWT&A,CertIVGovt, MRN, SEN GradDip(HSM) Manager, Eureka Linen Director Radiography and Diagnostic RESIDENTIAL SERVICES Bob Maslin, TRLAV Clinical Manager Physiotherapy Services Executive Director Residential Georgie Kemp BAppSc(Physio), MPhysio Richard van Dreven MISRRT, MIR, Manager, Environmental Services DipAppSc(MedRadtn), GradDipAdmin Services Don Colbert GradCertMgt Clinical Manager Podiatry Sue Gervasoni RN, RPN, BN, Margaret Dawson BAppSc(Pod), Director Information Management CertCritCare, MBA Manager, Supply GradDip(Pod), MBA Kate Nolan MBA, BHlthInfoMgt Russell King MAHSPO, MCIPSA

16 Ballarat Health Services ORGANISATION PERFORMANCE

STATEMENT OF PRIORITIES

Part A: Strategic priorities for 2011-2012

STRATEGIC PRIORITY DELIVERABLES OUTCOME Ensure health care is 1. Services provided by Ballarat 1. All Community Program referrals and 22 Allied Health programs provided in the most Health Services and other health are currently processed by the single point of access clinically effective services demonstrate enhanced and cost-effective integration and referral patterns to 2. Length of Stay was reduced following a review. Implementation of environments. improve the client journey. changes resulted in 100% of Priority 1 referrals assessed within 48 hours. By 2012 community-based programs will have a single point of entry. Development of regular complex case meetings across BHS sites. 2. Pre and post-admission non-bed Our Hospital Admissions Risk Program (HARP) provides care co- based care has reduced the length of ordination for patients with chronic disease and/or complex stay (LOS). psychosocial issues who are at risk of frequent inpatient admission or Emergency Department presentation. The program supports people living in the community, improves self-management and coping mechanisms and provides access to support services. Reduce and prevent A framework exists to identify The Primary Care and Population Health Advisory Committee has unnecessary hospital opportunities for BHS staff and agreed to act as the governance group in relation to the health admissions by facilities to model health promotion promotion plan for BHS and for the partnership work advocating with promoting the provision and illness prevention. This external agencies. of care in community includes further enhancement settings where and collaboration with other The health promotion plan provides a framework for internal appropriate. organizations across the Grampians initiatives in health promotion and also outlines the advocacy work of regional to promote initiatives BHS with its partners. designed to reduce illness and The Committee is now exploring funding options to implement hospital admissions. initiatives to halt and reduce the burden of overweight and obese people in the Grampians community. Improve care planning Local hospitals are included in the The Emergency Department and the Operational Performance and and coordination of patient journey enabling patients Improvement Directorate have met with sub-regional hospitals to care for patients with to return to their admitting hospital discuss inter-hospital transfers, BHS Hospital Demand Management chronic and complex during the episode of care. response and the desire to ensure timely transfer of patients back to conditions. referring hospitals. The introduction of an inter-hospital transfer form The patient journey includes also creating opportunity to improve performance. integration of services. Continuation of Rural patient Initiative program for elective surgery with increased service provision through Maryborough District Health Service. Review of Health Reform targets including National Emergency Access Targets (NEAT) and National Elective Surgery Targets. Development of a service plan for Residential Aged Care. Participation in Health Round Table and membership in Advisory Board International. Development of Ortho-geriatrics proposal to enhance service delivery to fractured neck or femur patients. Implementation of a clinical pathway for hip and knee replacement and day case tonsillectomy.

www.bhs.org.au 17 STRATEGIC PRIORITY DELIVERABLES OUTCOME Enhance the ability of Illness prevention is incorporated into BHS agreed to take part in a University of Ballarat student evaluation individuals and families all patient interactions across BHS to determine the health literacy of patients. This is the fi rst step in to make decisions that to improve patient information and understanding the tools and resources required to assist patients in improve their health education in managing their own managing their own health and wellbeing. status and reduce health and wellbeing. the risk of ill-health by improving health literacy. Work with Dental Work towards general dental care The new funding formula and 2011/12 budget have been Health Services Victoria being provided within the State implemented. Appointment scheduling changes have enabled the to improve the model average timelines to maintain and clinic to accommodate additional ‘emergency’ appointments and of care and increase support improved oral health for the achieve a positive fi nancial result. A one off allocation of additional productivity. eligible community. funds has allowed longer waiting denture patients to receive Victorian Dental Service vouchers. Collaborate with private Regular dialogue and meetings occur Work across the region within the Oral Health Network is continuing dental providers to with private dental providers. with greater collaboration including the private dental sector and assist BHS to meet the universities. demand for public dental services. Planning for a new 20-chair public dental clinic in Ballarat is continuing. Embed the provision Community-based mental health Mental Health Services (MHS) structures have been reconfi gured to of community-based services are enhanced and provide place an emphasis on early detection and treatment services. mental health services. patient-centred care and service Enhance and develop delivery as evidenced by attainment Competency based management program continues to be embedded Mental Health Services of the required targets and throughout MHS. integration across BHS satisfaction of clients and their Psychosocial research opportunities have been enhanced. to ensure patient- families. centred care. Improved relationships with Alliance members including Wimmera Uniting Care, Centacare, Grampians and Ballarat Community Health Further develop links Centres have assisted engagement in the PDRSS sector. with external mental health service providers. Improve responsiveness Satisfaction surveys completed The rollout of the Ballarat and District Aboriginal Cooperative to the mental health by members of the indigenous (BADAC) protocols to enhance Indigenous access are continuing. needs of the indigenous community indicate access to mental community. health services enhanced. Monthly carer meetings have been established in the region specifi cally targeting Indigenous families. Ensure all redesign Redesign initiatives are implemented Completion of ED to ICU in four hours project has resulted in a 25% initiatives result in to improve service delivery and reduction in the LOS for Cat 1 patients transferring to ICU. immediate, actionable improve access and effi ciency across service improvements. BHS to address demand within Completion of orthopaedic redesign project has reduced the LOS for funding allocation requirements. unilateral orthopaedic elective hip / knee replacement cases by one day. The range of brands and types of prosthesis utilised have also been refi ned. A unilateral hip and knee replacement pathway is now in development. Completion of Cardiovascular Service Project including the commissioning of the service with a staged approach to minimise service disruption. Develop and implement BHS continues to balance budget Cost saving and revenue generating initiatives continue to be appropriate fi nancial allocations to meet current demand implemented across the organisation. The most signifi cant benefi ts strategies, revenue and consider future growth while have been realised from: options and cost also achieving SoP targets. containment initiatives • Reconfi guration of Sebastopol Aged Care Services. aimed at ensuring • Reduced rostered overtime. ongoing fi nancial • Reduced levels of casual staff usage. sustainability as well as • Re-tendering Pathology Services. meeting the growing Revised business management model, resulting in increased budget demand for clinical awareness, understanding and accountability. services.

18 Ballarat Health Services STRATEGIC PRIORITY DELIVERABLES OUTCOME Enable the clinical Patient care is considered and Creation of a new business management model has signifi cantly leadership group to delivered with a thorough strengthened the link between key clinical stakeholders, general maximie understanding understanding of the fi nancial impact management and the BHS Finance function. From this, we have seen and involvement in and performed by clinical data. far greater understanding of the cost versus benefi t of key clinical fi nancial management decisions and business cases to achieve effi ciency in patient care informed BHS has increased its level of resource allocation in Clinical Costing by clinical data. and KPI reporting, and has invested in memberships in both the Health Round Table and the Health Advisory Board. Review best practice Developing innovative practice is An Executive Staff Council Improvement Committee has been in innovative company a key responsibility for managers established which meets monthly, and has focused on fostering the cultures and foster across BHS creating a culture which following innovative changes over the past six months: innovation advocates. is supportive of new ideas and processes to improve patient care. • A review of the Diabetes Management framework • A review of the Observation Response chart • A six-Pack Falls Project • A Surgical Services review The implementation of a new Cardiovascular Suite. Engage BHS Futures BHS Futures Committee is sustained The Futures Committee has focussed on the issue of environmental Committee/Innovation and encourages innovative thinking sustainability and its impact on the delivery of health services. A Council and review across BHS. sustainability forum planned in partnership with the University of recruitment strategies Ballarat was held in July 2012. to refl ect the above. In addition, the committee is exploring the impact of a signifi cant housing development in Ballarat West and its impact on the location and positioning of health services into the future. Develop leadership Leadership programs support and Two major Leadership programs have recently been completed: programs to emphasise emphasise innovation across BHS. innovative practice. • Residential Manager Training • An Advanced Diploma of Management in conjunction with the University of Ballarat (26 BHS staff completed this qualifi cation). BHS has supported at least one staff member to undertake the Leadership Ballarat and Western Region (LBWR) program each year. Incorporate risk An education program exists and Risk Management management strategies, is evaluated, to ensure that risk • External Review of the Risk Management Framework conducted quality improvement management, quality improvement by VMIA in October 2011. Final report and recommendations and redesign processes and redesign processes are included received February, 2012 and are to being considered by in all areas of service in planning across BHS. appropriate Board Committees. delivery, strategic and • Nurse Managers Risk Management Survey completed and business planning, with evaluated. education provided as • Risk Management training for NUMs and ANUMs required. • Risk Management training provided to new clinical and corporate managers and for all new medical staff. • Patient Safety Walk rounds commenced in February 2012. Clinical incident Management education/ Victorian Health Incident Management System (VHIMS) training is conducted: • Monthly VHIMS training sessions available and Nursing orientation to VHIMS bi-monthly Quality Improvement • Development and delivery of a three part clinical audit workshop with post workshop evaluation. • Introduction of RISKMAN Q anticipated by March 2012. • Development of a new Governance Documentation System 2012 Plan • Governance and Risk Management Unit (GARMU) has a quarterly education session on the Professional Development calendar • GARMU to provide sessions in 2012 at Medical Grand round • Evaluation of VHIMs KPI’s will be conducted in 2012. GARMU is currently developing an education calenda.

www.bhs.org.au 19 STRATEGIC PRIORITY DELIVERABLES OUTCOME Implement open Open disclosure teaching Governance Documents including protocol and policy ratifi ed and disclosure and and training continues to be included in the system. These documents form part of orientation transparency systems implemented across BHS as needed package for all new doctors and interns. and processes across to ensure patients are informed of BHS. their care outcomes including when Online Open Disclosure training became available to all BHS staff in adverse events occur. March 2012, with an evaluation of the usage to be conducted prior to the Periodic Review scheduled for October 2012.

Part B: Performance priorities FINANCIAL PERFORMANCE OPERATING RESULT TARGET 2011-12 ACTUALS Annual Operating result ($m) Break even $214,000

CASH MANAGEMENT/LIQUIDITY TARGET 2011-12 ACTUALS Creditors 60 days 40 Debtors 60 days 43

20 Ballarat Health Services SERVICE PERFORMANCE WIES ACTIVITY PERFORMANCE TARGET 2011-12 ACTUALS WlES (public and private) performance to target (%) ± 2% 2.89%

ELECTIVE SURGERY TARGET 2011-12 ACTUALS Elective surgery admissions – quarter 1 1,200 1,263 Elective surgery admissions – quarter 2 1,230 1,211 Elective surgery admissions – quarter 3 1,120 1,137 Elective surgery admissions – quarter 4 1,190 1,078

CRITICAL CARE TARGET 2011-12 ACTUALS No. of days below lCU minimum operating capacity 0 2

QUALITY AND SAFETY TARGET 2011-12 ACTUALS Health service accreditation Full Full Residential aged care accreditation Full Full Cleaning standards Achieved Achieved Submission of data to VICNISS (%) Full Full VICNISS Infection Clinical Indicators No outliers No outliers Hand Hygiene Program compliance (%) 65% 76.7% SAB rate (OBDs) 2.0 Achieved Victorian Patient Satisfaction Monitor (VPSM) 73 77.4

MATERNITY TARGET 2011-12 ACTUALS Postnatal home care 100% 99.5%

MENTAL HEALTH TARGET 2011-12 ACTUALS 28 day readmission rate (%) 14 8.7 Post-discharge follow-up rate (%) 75% 66.9 Seclusion rate (OBDs) (per 1,000 BD) 20 14.2

Continued on page 22.

www.bhs.org.au 21 Continued from page 21.

ACCESS PERFORMANCE TARGET 2011-12 ACTUALS Percentage of operating time on hospital bypass 3% Not applicable Percentage of emergency patients admitted to an 80% 73.2% inpatient bed within 8 hours Percentage of non-admitted emergency patients with 80% 85.3% length of stay of less than 4 hours Number of patients with length of stay in the 01 emergency department greater than 24 hours Percentage of Triage Category 1 emergency patients 100% 100% seen immediately Percentage of Triage Category 2 emergency patients 80% 79% seen within 10 minutes Percentage of Triage Category 3 emergency patients 75% 81% seen within 30 minutes

*Emergency KPI’s are to be reported at hospital level, NOT Health Service level.

ELECTIVE SURGERY TARGET 2011-12 ACTUALS Percentage of Category 1 elective patients admitted 100% 100% with in 30 days Percentage of Category 2 elective surgery patients 80% 59.1% waiting less than 90 days Percentage of Category 3 elective surgery patients 90% 73.7% waiting less than 365 days Number of patients on the elective surgery waiting list 1,500 1,228 Number of Hospital Initiated Postponements (HiPs) per 8 7.5 100 scheduled admissions

22 Ballarat Health Services Part C: Activity and Funding

ACTIVITY 2011-12 ACTIVITY ACHIEVEMENT Weighted Inlier Equivalent Separations (WIES) WIES Public 19,526 WIES Private 4,352 Total WIES (Public and Private) 23,878 WIES Rural Patient Initiative 135 WIES Renal 330 WIES DVA 238 WIES TAC 248 WIES TOTAL 24,828 SUB ACUTE INPATIENT CRAFT 248 Rehab L1 (non DVA) 1,581 Rehab L2 (non DVA) 1,281 Rehab - Paediatric 432 GEM (non DVA) 14,364 Palliative Care - Inpatient 2,130 Transition Care (non DVA) – bed day 9,969 Restorative Care N/A Rehab 2 - DVA 157 GEM -DVA 508 Palliative Care – DVA 133 AMBULATORY VACS – Allied Health 12,996 VACS - Variable 45,499 Transition Care (non DVA) - Homeday 5,600 SACS – Non DVA 23,309 SACS - Paediatric 454 Post Acute Care 1162 VACS – Allied Health - DVA 3 VACS - Variable - DVA 35 SACS - DVA 452 Post Acute Care – DVA 7 AGED CARE Aged Care Assessment Service 3,419 Residential Aged Care 164,807 MENTAL HEALTH MH – Inpatient 622 MH – Ambulatory 69,838 COMMUNITY HEALTH/PRIMARY CARE Community Health - Direct Care 8,775

www.bhs.org.au 23 REPORTING REQUIREMENTS AND GENERAL INFORMATION

APPLICATION OF BUILDING ACT 1993 MERIT AND EQUITY Ballarat Health Services complies with building standards and regulations. All buildings constructed after July 1994, have been We are an equal opportunity employer and ensure open designed to conform to the Building Act 1993 and its regulations, competition in recruitment, selection, transfer and promotion. as well as meet other statutory regulations that relate to health and safety matters. Employment decisions are based on merit and without consideration gender, marital status, age, pregnancy, disability, All buildings have been issued with occupancy permits and race, religious or political beliefs or activities, or on the grounds of all building practitioners engaged by Ballarat Health Services being a parent, childless or in a de facto relationship. are required to produce evidence of current registration on commencing a project, as well as evidence that their registered Our people are treated fairly and reasonably and provided with status will be maintained throughout the year. redress against any unfair or unreasonable treatment.

EX-GRATIA PAYMENTS CONSULTANCIES

Ballarat Health Services engaged the following consultancies in We did not receive any ex-gratia payments during 2011-2012. 2011-2012 at an individual cost in excess of $10,000. They were Health-E Workforce Solutions, $17,100; Visasys, $12,320; and Drewery Lane Consulting, $12,000. In 2011-12 two consultancies were engaged, where the fees FREEDOM OF INFORMATION payable to the consultants totaled $2,255 REQUESTS

Ballarat Health Services complies with the Victorian Freedom of NATIONAL COMPETITION Information Act 1982 (FOI). Since 2008 we have received to the POLICY following number of requests:

YEAR NUMBER OF REQUESTS Ballarat Health Services complied with all government policies regarding competitive neutrality with respect to all tender 2008 215 applications. 2009 375 2010 392 2011 408 2012 464

24 Ballarat Health Services WHISTLEBLOWERS’ CONTRACTS PROTECTION

We abide by the Victorian Industry Participation Policy Act 2003. We are subject to the provisions of the Victorian Government’s In 2011/12 there was one contract continued by Ballarat Health Whistleblowers’ Protection Act 2001, and are committed to its Services under this act. aims and objectives. The contract was: We do not tolerate improper conduct by our people, nor the taking of reprisals against those who disclose such conduct. • The Ballarat Regional Integrated Cancer Centre development project, to the value of $55 million. This project proposes We comply with the Act by applying our policies and procedures, the use of more than 65% local content and created for which contain details of the Act and contact details for our 2011/2012 10.5 additional EFT and for 2012/2013 and the protected disclosure co-ordinator, protective disclosure offi cer and remainder of the contract a forecast additional 70 EFT. welfare manager. In 2011/12 there were three projects completed by Ballarat Health Ballarat Health Services received no disclosures during 2011-2012. Services under this act. The contracts were: • The Maternity Outpatients relocation to the undercroft of the Bolte Wing and the relocation of Special Care Nursery to Level 5 West Wing • The construction of a coronary catheterisation laboratory (Cardiovascular Suite) • • The development and refurbishment of the Special Care Baby Unit, the unit was relocated to the West Wing of Henry Bolte Building and expanded to 14 beds. The old SCN area vacated was converted into family unit accommodation and triage area. These three projects, valued at a combined $18 million, used more than 95% local content & employment. They created additional employment for approximately 100 local trades people both on and off the Ballarat Base Hospital site.

FINANCIAL PERFORMANCE

Ballarat Health Services recorded an operating surplus of $214,000 for the year ended June 30, 2012. This positive result compares favourably with the expectation in the Statement of Priorities of a breakeven result. BHS is a signifi cant employer in the Grampians region with more than 2,400 full-time equivalent staff. In 2011-2012 employee payments exceeded $225 million BHS spent more than $99 million on goods and services; investment in property plant and equipment at BHS sites was $35.9 million.

2012 2011 2010 2009 2008

$000 $000 $000 $000 $000 Revenue 329,341 287,312 258,096 241,918 219,650 Total expenses 329,127 287,147 258,059 241,537 219,382 Net result for the year (before capital, specifi c items) 214 165 47 381 269 Retained surplus/ (accumulated defi cit) 16,511 (8,155) (6,511) (9,729) (430) Total assets 331,990 285,326 278,757 283,738 235,331 Total liabilities 98,011 87,544 75,077 73,547 70,304 Net assets 233,979 197,782 203,680 210,191 165,027 Total equity 233,979 197,782 203,680 210,191 165,027

www.bhs.org.au 25 STATUTORY REQUIREMENTS

ATTESTATION ON DATA INTEGRITY I, Andrew Rowe certify that Ballarat Health Services has put in place appropriate internal controls and processes to ensure that reported data reasonably refl ects actual performance. Ballarat Health Services has critically reviewed these controls and processes during the year.

Andrewndrew RoRowewe Chief Executive Offi cer Ballarat July 31, 2012

ATTESTATION FOR COMPLIANCE WITH THE AUSTRALIAN/NEW ZEALAND RISK MANAGEMENT STANDARD I, Andrew Faull, certify that Ballarat Health Services has risk management processes in place, consistent with the Australian/ New Zealand Risk Management Standard and an internal control system is in place that enables the executive to understand, manage and satisfactorily control risk exposures. The Board verifi es this assurance and that the risk profi le of Ballarat Health Services has been critically reviewed within the last 12 months.

Andrew Faull President Board of Management Ballarat July 31, 2012

26 Ballarat Health Services DISCLOSURE INDEX

The annual report of Ballarat Health Services is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identifi cation of the Department’s compliance with statutory disclosure requirements.

LEGISLATION REQUIREMENT PAGE REFERENCE

MINISTERIAL DIRECTIONS Report of Operations

Charter and purpose FRD 22C Manner of establishment and the relevant Ministers 4 FRD 22C Objectives, functions, powers and duties 1, 4 FRD 22C Nature and range of services provided 1

Management and structure FRD 22C Organisational structure 11

Financial and other information FRD 10 Disclosure index 27 FRD 11 Disclosure of ex gratia payments 24 FRD 15B Executive offi cer disclosures 70 FRD 21B Responsible person and executive offi cer disclosures 70, 71 FRD 22C Application and operation of Freedom of Information Act 1982 24 FRD 22C Application and operation of Whistleblowers Protection Act 2001 25 FRD 22C Compliance with building and maintenance provisions of Building Act 1993 24 FRD 22C Details of consultancies over $10,000 24 FRD 22C Details of consultancies under $10,000 24 FRD 22C Major changes or factors affecting performance 25 FRD 22C Occupational health and safety 9 FRD 22C Operational and budgetary objectives and performance against objectives 25 FRD 22C Signifi cant changes in fi nancial position during the year 25 FRD 22C Statement of availability of other information 28 FRD 22C Statement on National Competition Policy 24 FRD 22C Subsequent events 71 FRD 22C Summary of the fi nancial results for the year 25 FRD 22C Workforce Data Disclosures including a statement on the application of employment and conduct principles 14, 24 FRD 25 Victorian Industry Participation Policy disclosures 25 SD 4.2(j) Sign-off requirements 29 SD 3.4.13 Attestation on Data Integrity 26 SD 4.5.5 Attestation on Compliance with Australian/New Zealand Risk Management Standard 26

FINANCIAL STATEMENTS Financial statements required under Part 7 of the FMA SD 4.2(a) Statement of changes in equity 34 SD 4.2(b) Operating statement 32 SD 4.2(b) Balance sheet 33 SD 4.2(b) Cash fl ow statement 34

Other requirements under Standing Directions 4.2 SD 4.2(a) Compliance with Australian accounting standards and other authoritative pronouncements 35 SD 4.2(c) Accountable offi cer’s declaration 29 SD 4.2(c) Compliance with Ministerial Directions 35 SD 4.2(d) Rounding of amounts 35

Legislation Freedom of Information Act 1982 24 Whistleblowers Protection Act 2001 25 Victorian Industry Participation Policy Act 2003 25 Building Act 1993 24 Financial Management Act 1994 35

www.bhs.org.au 27 ADDITIONAL INFORMATION AVAILABLE ON REQUEST

Subject to the provisions of the FOI Act, information that must be retained by the Accountable Offi cer should include: • a statement that declarations of pecuniary interests have been duly completed by all relevant offi cers; • details of shares held by a senior offi cer as nominee or held benefi cially in a statutory authority or subsidiary; • details of publications produced by the entity about itself, and how these can be obtained; • details of changes in prices, fees, charges, rates and levies charged by the entity; • details of any major external reviews carried out on the entity; • details of major research and development activities undertaken by the entity; • details of overseas visits undertaken including a summary of the objectives and outcomes of each visit; • details of major promotional, public relations and marketing activities undertaken by the entity to develop community awareness of the entity and its services; • details of assessments and measures undertaken to improve the occupational health and safety of employees; • a general statement on industrial relations within the entity and details of time lost through industrial accidents and disputes; • a list of major committees sponsored by the entity, the purposes of each committee and the extent to which the purposes have been achieved; and • details of all consultancies and contractors including: - consultants/contractors engaged; - services provided; and expenditure committed to for each engagement.

28 Ballarat Health Services FINANCIAL STATEMENTS AND NOTES

BALLARAT HEALTH SERVICES

BOARD MEMBER’S, ACCOUNTABLE OFFICER’S AND CHIEF FINANCE AND ACCOUNTING OFFICER’S DECLARATION We certify that the attached fi nancial statements for Ballarat Health Services have been prepared in accordance with Standing Direction 4.2 of the Financial Management Act 1994, applicable Financial Reporting Directions, Australian Accounting Standards, Australian Accounting Interpretations and other mandatory professional reporting requirements. We further state that, in our opinion, the information set out in the comprehensive operating statement, balance sheet, statement of changes in equity, cash fl ow statement and notes to and forming part of the fi nancial statements, presents fairly the fi nancial transactions during the year ended 30 June 2012 and the fi nancial position of Ballarat Health Services at 30 June 2012. At the time of signing, we are not aware of any circumstance which would render any particulars included in the fi nancial statements to be misleading or inaccurate. We authorise the attached fi nancial statements for issue on this day.

Andrew Faull AndAndrewrew RoRowewe Andrew Kinnersly President Chief Executive Offi cer Chief Financial Offi cer Board of Management Ballarat Ballarat Ballarat September 5, 2012 September 5, 2012 September 5, 2012

www.bhs.org.au 29 30 Ballarat Health Services www.bhs.org.au 31 BALLARAT HEALTH SERVICES COMPREHENSIVE OPERATING STATEMENT FOR THE YEAR ENDED 30 JUNE 2012

2012 2011 Note $000 $000

Revenue from Operating Activities 2,2(a) 328,332 286,913 Revenue from Non-Operating Activities 2,2(a) 1,048 587 Share of Net Operating Result of Joint Ventures 20 (39) (188) Employee Benefi ts 2(b),(c) (229,675) (207,539) Supplies and Consumables 2(b),(c) (55,444) (33,819) Other Expenses 2(b),(c) (44,008) (45,789) NET RESULT BEFORE CAPITAL & SPECIFIC ITEMS 214 165

Capital Purpose Income 2,2(a) 42,986 17,403 Capital Purpose Expense 2(b),(c) (781) (1,499) Impairment of Financial Assets 2(b),(c) 42 1,991 Depreciation 2(b),3 (25,950) (26,214) NET RESULT FOR THE YEAR 15 16,511 (8,155)

OTHER COMPREHENSIVE INCOME Net fair value revaluation on Non Financial Assets 19,686 2,257

COMPREHENSIVE RESULT FOR THE YEAR 36,197 (5,898)

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

32 Ballarat Health Services BALLARAT HEALTH SERVICES BALANCE SHEET AS AT 30 JUNE 2012

2012 2011 Note $000 $000

ASSETS Current Assets Cash and Cash Equivalents 4,16 16,083 16,245 Prepayments 8 841 801 Inventory 7 1,271 1,188 Receivables 5 9,739 7,506 Other Financial Assets 6 35,262 20,096 Total Current Assets 63,196 45,836

Non Current Assets Receivables 5 4,783 3,875 Other Financial Assets 6 706 2,350 Intangible Assets 9(b) 116 171 Property, Plant and Equipment 9(a) 263,189 233,094 Total Non Current Assets 268,794 239,490

TOTAL ASSETS 331,990 285,326

LIABILITIES Current Liabilities Employee Benefi ts 11 49,725 41,339 Monies Held in Trust 12 18,922 20,186 Payables 10,16 22,264 20,012 Other Liabilities 13 168 205 Total Current Liabilities 91,079 81,742

Non Current Liabilities Employee Benefi ts 11 6,932 5,802 Total Non Current Liabilities 6,932 5,802

TOTAL LIABILITIES 98,011 87,544

NET ASSETS 233,979 197,782

EQUITY Specifi c Purpose Reserve 14(a) 562 650 Contributed Capital 14(b) 149,952 149,952 Asset Revaluation Reserve 14(a) 95,325 75,639 Retained Earnings 14(c) (11,860) (28,459)

TOTAL EQUITY 14 233,979 197,782

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

www.bhs.org.au 33 BALLARAT HEALTH SERVICES STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2012

Property, Plant Unrestricted Contributions Accumulated Total & Equipment Specifi c By Owners Surpluses/ Revaluation Purpose (Defi cits) Surplus Surplus Note $000 $000 $000 $000 $000

BALANCE AS AT 1ST JULY 2010 73,382 15,537 149,952 (35,191) 203,680 Net Result for the year - - - (8,155) (8,155) Other Comprehensive Income for the year 14(a) 2,257 - - - 2,257 Transfer to accumulated surplus 14(a),(c) - (14,887) - 14,887 -

BALANCE AS AT 30 JUNE 2011 75,639 650 149,952 (28,459) 197,782

Net Result for the year - - - 16,511 16,511 Other Comprehensive Income for the year 14(a) 19,686 - - - 19,686 Transfer to accumulated surplus 14(a),(c) - (88) - 88 -

BALANCE AS AT 30 JUNE 2012 95,325 562 149,952 (11,860) 233,979

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

BALLARAT HEALTH SERVICES CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2012

2012 2011 $000 $000 Infl ows Infl ows Note (Outfl ows) (Outfl ows)

CASH FLOWS FROM OPERATING ACTIVITIES Receipts Operating Grants from Government 268,437 235,526 Proceeds from Donations 1,914 300 Patient Fees 16,745 16,433 Interest Received 2,144 1,835 Other 41,550 37,218 Goods and Services Tax Received 6,551 4,232

Payments Employee Benefi ts (220,159) (203,754) Other (108,102) (78,536)

CASH GENERATED FROM OPERATIONS 9,080 13,254

Capital Development Funds 1,866 1,980 Capital Grants 38,552 13,689 Proceeds from Donations and Bequests 88 377 Repayment of Monies Held in Trust (3,667) (5,355) Proceeds from Monies Held in Trust 2,366 4,006

NET CASH INFLOWS/(OUTFLOWS) FROM OPERATING ACTIVITIES 15 48,285 27,951

CASH FLOWS FROM INVESTING ACTIVITIES Purchase of Property, Plant and Equipment (35,944) (20,490) Purchase of Investments (48,487) (36,000) Sale of Investments 34,813 34,616 Proceeds from Sale of Property, Plant and Equipment 2(e) 1,170 1,863

NET CASH INFLOWS/(OUTFLOWS) FROM INVESTING ACTIVITIES (48,448) (20,011)

NET INCREASE/(DECREASE) IN CASH HELD (162) 7,940 Cash and Cash Equivalents at Beginning of Period 16,245 8,305

CASH AND CASH EQUIVALENTS AT END OF PERIOD 4 16,083 16,245

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

34 Ballarat Health Services Notes to and forming part of the fi nancial statements for the year ended 30 June 2012.

Note 1: Summary of Signifi cant Accounting Policies

(a) Statement of Compliance (c) Going Concern

These fi nancial statements are general purpose fi nancial reports which have been The going concern basis was used to prepare the fi nancial statements. prepared in accordance with the Financial Management Act 1994, and applicable Australian Accounting Standards (AAS) and Australian Accounting Interpretations After due consideration of the results of the operations of Ballarat Health and other mandatory requirements. AAS includes Australian equivalents to Services for the year ended 30 June 2012 and the forecast cash fl ows of Ballarat International Financial Reporting Standards. Health Services for the next 12 months. The Board of Ballarat Health Services have sought a letter of comfort from the Department of Health for support in The fi nancial statements also comply with relevant Financial Reporting Directions determining that the going concern basis is appropriate for the preparation of (FRDs) issued by the Department of Treasury and Finance, and relevant Standing these statements. Directions (SDs) authorised by the Minister of Finance. Ballarat Health Services is dependent upon the State of Victoria, via the Ballarat Health Services is a not-for-profi t entity and therefore applies the Department of Health, for the funding of a signifi cant proportion of its additional AUS paragraphs applicable to “not-for-profi t” Health Services under operations. the AAS’s.

The annual fi nancial statements were authorised for issue by the Board of Ballarat Health Services on 5/9/2012 (d) Reporting Entity

The fi nancial statements include all the controlled activities of Ballarat Health Services. (b) Basis of Preparation Its principle address is: Accounting policies are selected and applied in a manner which ensures that the Drummond St North resulting fi nancial information satisfi es the concepts of relevance and reliability, Ballarat thereby ensuring that the substance of the underlying transactions or other Victoria, 3350 events is reported. A description of the nature of Ballarat Health Services operations and its principal The accounting policies set out below have been applied in preparing the activities is included in the report of operations, which does not form part of fi nancial statements for the year ended 30 June 2012, and the comparative these fi nancial statements. information presented in these fi nancial statements for the year ended 30 June 2011.

These fi nancial statements are presented in Australian dollars, the functional and (e) Rounding Off presentation currency of the Health Service. All amounts shown in the fi nancial statements are expressed to the nearest The fi nancial statements, except for cash fl ow information, have been prepared thousand dollars unless otherwise stated. using the accrual basis of accounting. Under the accrual basis, items are recognised as assets, liabilities, equity, income or expenses when they satisfy the defi nition and recognition criteria for those items. They are recognised in the reporting period to which they relate, regardless of when cash is received or paid. (f) Principles of Consolidation

The fi nancial statements are prepared in accordance with the historical cost Inter-segment Transactions convention, except for the revaluation of certain non-fi nancial assets and Transactions between segments within Ballarat Health Services have been fi nancial instruments, as noted. Particularly, exceptions to the historical cost eliminated to refl ect the extent of Ballarat Health Service’s operations as a group. convention include: Joint Ventures • Non-current physical assets, which subsequent to acquisition, are measured Investments in a joint venture partnership are accounted for using the equity at valuation and are re-assessed with suffi cient regularity to ensure that the method of accounting. Under the equity method for accounting, Ballarat carrying amounts do not materially differ from their fair values; Health Services share of the post-acquisition profi ts or losses of the joint venture • Available-for-sale investments which are measured at fair value with partnerships are recognised in the net result and its share of post-acquisition movements refl ected in equity until the asset is derecognised. changes in revaluation surpluses and any other reserves are recognised in both • The fair value of assets other than land is generally based on their the comprehensive operating statement and the statement of changes in equity. depreciated replacement value. Details of the joint ventures are set out in note 20.

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

In the application of AAS’s, management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in 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 made by management in the application AASs that have signifi cant effects on the fi nancial statements and estimates, with a risk of material adjustments in the subsequent reporting period, relate to:

• The fair value of land and buildings 1(k).

www.bhs.org.au 35 Notes to and forming part of the fi nancial statements for the year ended 30 June 2012.

Note 1: Summary of Signifi cant Accounting Policies (continued)

(g) Scope and presentation of fi nancial statements Balance sheet Assets and liabilities are categorised either as current or non-current. Fund Accounting Ballarat Health Services operates on a fund accounting basis and maintains three Statement of changes in equity funds: Operating, Specifi c Purpose and Capital Funds. Ballarat Health Services The statement of changes in equity presents a reconciliation of each non-owner Capital and Specifi c Purpose Funds include unspent capital donations and and owner equity opening balance at the beginning of the reporting period to receipts from fundraising activities conducted solely in respect of these funds. 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 Services Supported By Health Services Agreement and Services recognised in other comprehensive income related to other non owner changes Supported by Hospital and Community Initiatives in equity. The activities classifi ed as Services Supported by Health Services Agreement (HSA) are substantially funded by the Department of Health and includes Residential Cash fl ow statement Aged Care Services (RACS) and are also funded from other sources such as the Cash fl ows are classifi ed according to whether or not they arise from operating Commonwealth, patients and residents, while Services Supported by Hospital activities, investing activities, or fi nancing activities. This classifi cation is consistent and Community Initiatives (H&CI) are funded by Ballarat Health Services own with requirements under AASB 107 Statement of Cash Flows. activities or local initiatives and/or the Commonwealth.

Residential Aged Care Service The Residential Aged Care Service operations are an integral part of Ballarat (h) Income Recognition Health Services and share its resources. An apportionment of land and buildings has been made based on fl oor space. The results of the two operations have Government Grants been segregated based on actual revenue earned and expenditure incurred by Grants are recognized as income when Ballarat Health Services gains control each operation in Note 2(a) and 2(c) to the fi nancial statements. of the underlying assets in accordance with AASB 1004 Contributions. For reciprocal grants, Ballarat Health Services is deemed to have assumed control Comprehensive Operating Statement when the performance has occurred under the grant. For non-reciprocal grants, The Comprehensive Operating Statement includes the subtotal entitled “Net Ballarat Health Services is deemed to have assumed control when the grant is result Before Capital & Specifi c Items” to enhance the understanding of the received or receivable. Conditional grants may be reciprocal or non-reciprocal fi nancial performance of Ballarat Health Service. The subtotal entitled “Net result depending on the terms of the grant. Before Capital & Specifi c Items” is included in the Comprehensive Operating Statement to enhance the understanding of the fi nancial performance of Ballarat Indirect Contributions from the Department of Health Health Services. This subtotal reports the result excluding items such as capital - Insurance is recognised as revenue following advice from the grants, assets received or provided free of charge, depreciation, and items of Department of Health. an unusual nature and amount such as specifi c revenues and expenses. The - Long Service Leave (LSL) – Revenue is recognised upon fi nalisation exclusion of these items are made to enhance matching of income and expense of movements in LSL liability in line with the arrangements set out in the so as to facilitate the comparability and consistency of results between years and Metropolitan Health and Aged Care Services Division Hospital Circular Victorian Public Health Services. The Net result Before Capital & Specifi c Items is 14/2009. used by the management of Ballarat Health Services, the Department of Health and the Victorian Government to measure the ongoing performance of Health Patient and Resident Fees Services in operating hospital services. Patient and Resident fees are recognised as revenue at the time invoices are raised. Capital and specifi c items, which are excluded from this sub-total, comprise of: Private Practice Fees • Capital purpose income, which comprises all tied grants, donations and Private practice fees are recognised as revenue at the time invoices are raised. bequests received for the purpose of acquiring non-current assets, such as capital works, plant and equipment or intangible assets. It also includes Donations and Bequests donations of plant and equipment (refer note 1(h). Consequently the Donations and bequests are recognised as revenue when received. If donations recognition of revenue as capital purpose income is based on the intention are for a special purpose, they may be appropriated to a reserve, such as the of the provider of the revenue at the time the revenue is provided. specifi c purpose reserve.

• Impairment of fi nancial and non-fi nancial assets, includes all impairment Dividend Revenue losses (and reversal of previous impairment losses) Dividend revenue is recognized when the right to receive payment is established.

• Depreciation and amortisation, as described in note 1(i). Interest Revenue Interest revenue is recognised on a time proportionate basis that takes in account • Assets provided or received free of charge, as described in Note 1(h). the effective yield of the fi nancial asset.

• Expenditure using capital purpose income, which comprises of expenditure Sale of Investments which either falls below the asset capitalisation threshold or doesn’t meet The gain/loss on the sale of investments is recognised when the investment is asset recognition criteria and therefore does not result in the recognition of realised. an asset in the balance sheet, where funding for that expenditure is from capital purpose income. The asset capitalisation threshold is set at $2,000 Resources Provided and Received Free of Charge or for Nominal (2011: $2,000). Consideration Resources provided or received free of charge or for nominal consideration are recognised at their fair value when the transferee obtains control over them, irrespective of whether restrictions or conditions are imposed over the use of the contributions, unless received from another 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 services would have been purchased if not donated.

36 Ballarat Health Services Notes to and forming part of the fi nancial statements for the year ended 30 June 2012.

Note 1: Summary of Signifi cant Accounting Policies (continued)

(i) Expense Recognition Depreciation Assets with a cost in excess of $2,000 (2010-11 and 2011-12) are capitalised and Expenses are recognised as they are incurred and reported in the fi nancial year to depreciation has been provided on depreciable assets so as to allocate their cost which they relate. or valuation over their estimated useful lives. Depreciation is generally calculated on a straight line basis, at a rate that allocates the asset value, less any estimated Employee expenses residual value over its estimated useful life. Estimates of the remaining useful Employee expenses include: lives and depreciation method for all assets are reviewed at least annually, and • Wages and salaries; adjustments made where appropriate. This depreciation charge is not funded by • Annual leave; the Department of Health. • Sick leave; • Long service leave; and Depreciation is provided on property, plant and equipment, including freehold buildings, but excluding land. Depreciation begins when the asset is available Superannuation expenses which are reported differently depending upon for use, which is when it is in the location and condition necessary for it to whether employees are members of defi ned benefi t or defi ned contribution be capable of operating in a manner intended by management. Linen used plans. in the Linen Service is considered a fi xed asset of Ballarat Health Services and depreciated accordingly. Defi ned contribution plans In relation to defi ned contribution (i.e. accumulation) superannuation plans, the The following table indicates the expected useful lives of non current assets on associated expense is simply the employer contributions that are paid or payable which depreciation charges are based. in respect of employees who are members of these plans during the reporting period. Contributions to defi ned contribution superannuation plans are expensed when incurred. 2012 2011

Defi ned benefi t plans Buildings 1 to 52 years 1 to 51 years The amount charged to the Comprehensive Operating Statement in respect of defi ned benefi t superannuation plans represents the contributions made by Kitchen & Catering Equipment 10 years 10 years Ballarat Health Services to the superannuation plan in respect to the current Plant & Equipment 10 years 10 years services of current Ballarat Health Services staff during the reporting period. Superannuation contributions are made to the plans based on the relevant rules Medical Equipment 5 years 5 years of each plan, and are based upon actuarial advice. Computers & Communications 3 years 3 years Employees of Ballarat Health Services are entitled to receive superannuation Furniture & Fittings 5 years 5 years benefi ts and the Health Service contributes to both the defi ned benefi t and defi ned contribution plans. The defi ned benefi t plan(s) provide benefi ts based on Linen 5 years 5 years years of service and fi nal average salary. Motor Vehicles 3 to 7 years 3 to 7 years The name and details of the major employee superannuation funds and Personal Alert Call Systems 5 years 5 years contributions made by Ballarat Health Services are as follows:

Contributions Paid or Payable Building works currently in progress are not depreciated until the completion of for the year the building project. Fund 2012 2011 $000 $000 As part of the Buildings valuation, building values were componentised and each component assessed for its useful life which is represented above.

Defi ned benefi t plans: Amortisation Health Super 1,741 1,793 Amortisation is allocated to intangible assets with fi nite 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 Defi ned contribution plans: condition necessary for it to be capable of operating in the manner intended by management. The amortisation period and the amortisation method for an Health Super 12,218 11,313 intangible asset with a fi nite useful life are reviewed at least at the end of each annual reporting period. In addition, an assessment is made at each reporting HESTA 2,219 1,856 date to determine whether there are indicators that the intangible asset Emergency Services Scheme 540 589 concerned is impaired. If so, the assets concerned are tested as to whether their carrying value exceeds their recoverable amount. Other 389 410 Intangible assets with indefi nite useful lives are not amortised, but are tested for Total 17,107 15,961 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 indefi nite useful life assessment for that asset. In addition, Ballarat Health Services does not recognise any unfunded defi ned benefi t liability the Health Service tests all intangible assets with indefi nite useful lives for in respect of the superannuation plan because Ballarat Health Services has no impairment by comparing the recoverable amount for each asset with its carrying legal or constructive obligation to pay future benefi ts relating to its employees; amount: its only obligation is to pay superannuation contributions as they fall due. The • Annually; and Department of Treasury and Finance administers and discloses the State’s defi ned • When ever there is an indication that the intangible asset may be impaired. benefi t liabilities in its fi nancial statements. Any excess of the carrying amount over the recoverable amount is recognised as an impairment loss. Intangible assets with fi nite useful lives are amortised over a 3-5 year period (2011 3-5 years).

www.bhs.org.au 37 Notes to and forming part of the fi nancial statements for the year ended 30 June 2012.

Note 1: Summary of Signifi cant Accounting Policies (continued)

(j) Financial Assets Net Gain/(Loss) on Financial Instruments Net gain/(loss) on fi nancial instruments includes: Cash and cash equivalents • Realised and unrealised gains and losses from revaluations of fi nancial Cash and cash equivalents comprise of cash on hand and cash at bank, deposits instruments that are designated at fair value through the profi t and loss or at call and highly liquid investments with an original maturity of 3 months or less, held-for-trading which are held for the purpose of meeting short term cash commitments rather • Impairment and reversal of impairment for fi nancial instruments at than for investment purposes, which are readily convertible to known amounts amortised cost, and of cash and are subject to insignifi cant risk of changes in value. • Disposals of fi nancial assets.

Receivables Revaluation of Financial Instruments at Fair Value Trade debtors are carried at nominal amounts due and are due for settlement The revaluation gain/(loss) on fi nancial instruments at fair value excludes within 30 days from the date of recognition. Collectability of debts is reviewed dividends or interest earned on fi nancial assets. on an ongoing basis, and debts which are known to be uncollectible are written off. A provision for doubtful debts is raised where doubt as to collection exists. Bad debts are written off when identifi ed. (k) Non-Financial Assets Investments and Other Financial Assets Investments are recognised and derecognised on trade date where purchase or Inventories sale of an investment is under a contract whose terms require delivery of the Inventories include goods and other property held either for sale, consumption investment within the timeframe established by the market concerned, and are or for distribution at no or nominal cost in the ordinary course of business initially measured at fair value, net of transaction costs. operations.

Ballarat Health Services classifi es its other fi nancial assets between current Inventories held for distribution are measured at cost, adjusted for any loss of and non-current assets based on the purpose for which the assets were service potential. All other inventories are measured at the lower of cost and net acquired. Management determines the classifi cation of its other assets at initial realisable value. recognition. The basis used in assessing loss of service potential for inventories held for Ballarat Health Services assesses at each balance sheet date whether a fi nancial distribution include current replacement cost and technical or functional asset or group of fi nancial assets is impaired. 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 All fi nancial assets, except those measured at fair value through profi t and loss current technologies. Functional obsolescence occurs when an item no longer are subject to annual review for impairment. functions the way it did when it was fi rst acquired.

Loans and receivables Cost for all other inventory is measured on the basis of weighted average cost. Trade receivables, loans and other receivables are recorded at amortised cost, using the effective interest method, less impairment. Term deposits with Inventories acquired for no cost or nominal considerations are measured at maturity greater than three months are also measured at amortised cost, using current replacement cost at the date of acquisition. the effective interest method, less impairment.

The effective interest method is a method of calculating the amortised cost of Property Plant and Equipment a fi nancial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash Crown Land is measured at fair value with regard to the property’s highest and receipts through the expected life of the fi nancial asset, or, where appropriate, a best use after due consideration is made for any legal or constructive restrictions shorter period. imposed on the asset, public announcements or commitments made in relation to the intended use of the asset. Theoretical opportunities that may be available Available-for-sale Financial Assets in relation to the asset(s) are not taken into account until it is virtually certain that Other fi nancial assets held by the Health Service are classifi ed as being available- any restrictions will no longer apply. for-sale and are measured at fair value. Gains and losses arising from changes in fair value are recognised directly in equity until the investment is disposed of or is Land and Buildings are recognised initially at cost and subsequently measured determined to be impaired, at which time the cumulative gain or loss previously at fair value less accumulated depreciation and impairment. recognised in equity is included in the net result for the period. Fair value is determined in the manner described in Note 16. Plant, Equipment and Vehicles are recognised initially at cost and subsequently measured at fair value less accumulated depreciation and impairment. Impairment of Financial Assets At the end of each reporting period Ballarat Health Services assesses whether there is objective evidence that a fi nancial asset or group of fi nancial assets are impaired. Objective evidence includes fi nancial diffi culties of the debtor, default payments, debts which are more than 60 days overdue, and changes in debtor credit ratings. All fi nancial instrument assets, except those measured at fair value through the profi t or loss, are subject to annual review for impairment.

Bad and doubtful debts for fi nancial assets are assessed on a regular basis. Those bad debts considered as written off and allowances for doubtful receivables are recognised as expenses in the net result.

The amount of the allowance is the difference between the fi nancial asset’s carrying amount and the present value of estimated future cash fl ows, 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 fi nancial asset is treated as impaired.

In order to determine an appropriate fair value as at 30 June 2012 for its portfolio of fi nancial assets, Ballarat Health Services obtained a valuation based on the best available advice through a reputable fi nancial institution.

38 Ballarat Health Services Notes to and forming part of the fi nancial statements for the year ended 30 June 2012.

Note 1: Summary of Signifi cant Accounting Policies (continued)

Revaluations of Non-Current Physical Assets Provisions Non-current physical assets are measured at fair value and are revalued in Provisions are recognised when Ballarat Health Services has a present obligation, accordance with FRD 103D Non-current physical assets. This revaluation process the future sacrifi ce of economic benefi ts is probable, and the amount of the normally occurs at least every fi ve years, based upon the asset’s Government provision can be measured reliably. Purpose Classifi cation, but may occur more frequently if fair value assessments indicate material changes in values. Independent valuers are used to conduct The amount recognised as a liability is the best estimate of the consideration these scheduled revaluations and any interim revaluations are determined required to settle the present obligation at reporting date, taking into account in accordance with the requirements of the FRDs. Revaluation increments or the risks and uncertainties surrounding the obligation. Where a provision is decrements arise from differences between an asset’s carrying value and fair measured using the cash fl ows estimated to settle the present obligation, its value. carrying amount is the present value of those cash fl ows.

Revaluation increments are credited directly to the asset revaluation reserve, Patient Trust Account except that, to the extent that an increment reverses a revaluation decrement Ballarat Health Services holds deposits in trust on behalf of residents. As Ballarat in respect of that same class of asset previously recognised at an expense in net Health Services has no claim on these funds they have been shown in the result, the increment is recognised as revenue in the net result. balance sheet as a liability.

Revaluation decrements are recognised immediately as expenses in the net result, Employee Benefi ts except that, to the extent that a credit balance exists in the asset revaluation reserve in respect of the same class of assets, they are debited directly to the Wages and Salaries, Annual Leave and Accrued Days Off asset revaluation reserve. Liabilities for wages and salaries, including annual leave and accrued days off which are expected to be settled within 12 months of the reporting date are Revaluation increases and revaluation decreases relating to individual assets recognised in the provision for employee benefi ts in respect of employee’s within a class are offset against one another within that class but are not offset services up to the reporting date, and are classifi ed as current liabilities and in respect of assets in different classes. measured at their nominal values.

Revaluation reserves are normally not transferred to accumulated funds on Long Service Leave derecognition of the relevant asset. The liability for long service leave (LSL) is recognised in the provision for employee benefi ts. A review based on FRD103D and Valuer-General Victoria Indices was conducted and that indicated a change of greater than 10% to overall valuations. In Current Liability – unconditional LSL (representing 10 or more years of accordance with FRD103D, Ballarat Health Services non-current physical assets continuous service) is disclosed in the notes of the fi nancial statements as a were assessed to determine whether revaluation of the non-current physical current liability even where Ballarat Health Services does not expect to settle assets was required. 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 Intangible Assets months. Intangible assets represent identifi able non-monetary assets without physical substance such as patents, trademarks, and computer software and development The components of this current LSL liability are measured at: costs. Present value – component that Ballarat Health Services does not expect to Intangible assets are initially recognised at cost. Subsequently, intangible assets settle within 12 months; and with fi nite useful lives are carried at cost less accumulated amortisation and Nominal value – component that Ballarat Health Services expects to settle accumulated impairment losses. Costs incurred subsequent to initial acquisition within 12 months are capitalised when it is expected that additional future economic benefi ts will fl ow to the Health Service. Non-Current Liability – conditional LSL (representing less than 10 years of continuous service) is disclosed as a non-current liability. There is an Other Non-Financial Assets 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 Prepayments measured at present value. Other non-fi nancial assets include prepayments which represent payments in advance of receipt of goods or services or that part of expenditure made in one Consideration is given for expected future wage and salary levels, experience accounting period covering a term extending beyond that period. of employee departures and periods of service. Expected future payments are discounted using interest rates of Commonwealth Government guaranteed Disposal of Non-Financial Assets securities in Australia. Any gain or loss on the sale of non-fi nancial assets is recognised at the date that control of the asset is passed to the buyer and is determined after deducting Termination Benefi ts from the proceeds the carrying value of the asset at the time. Termination benefi ts are payable when employment is terminated before the normal retirement date or when an employee accepts voluntary redundancy in exchange for these benefi ts.

(l) Liabilities Liabilities for termination benefi ts are recognised when a detailed plan for the termination has been developed and a valid expectation has been raised with Payables those employees affected that the terminations will be carried out. The liabilities Contractual payables which consist predominantly of accounts payable for termination benefi ts are recognised in other creditors unless the amount representing liabilities for goods and services provided to Ballarat Health Services or timing of the payments is uncertain, in which case they are recognised as a prior to the end of the fi nancial year that are unpaid, and arise when the health provision. service becomes obliged to make future payments in respect of the purchase of those goods and services. On-Costs Employee benefi t on-costs such as workers compensation, superannuation, Contractual payables are initially recognised at fair value, and then subsequently annual leave and LSL accrued while on LSL taken in service are recognised carried at amortised cost. Statutory payables are recognised and measured separately from provision for employee benefi ts. similarly to contractual payables, but are not classifi ed as fi nancial instruments and not included in the category of fi nancial liabilities at amortised cost, because they do not arise from a contract.

The normal credit terms are usually 30 Days from the end of the month in which the invoice was raised.

www.bhs.org.au 39 Notes to and forming part of the fi nancial statements for the year ended 30 June 2012.

Note 1: Summary of Signifi cant Accounting Policies (continued)

(m) Leases (r) Category Groups

Leases are classifi ed at their inception as either operating or fi nance leases Ballarat Health Services has used the following category groups for reporting based on the economic substance of the agreement so as to refl ect the risks and purposes for the current and previous fi nancial years. rewards incidental to ownership. Admitted Patient Services (Admitted Patients) comprises of all recurrent Leases of property, plant and equipment are classifi ed as fi nance leases health revenue/expenditure on admitted patient services, where services are whenever the terms of the lease transfer substantially all the risks and rewards of delivered in public hospitals, or free standing day hospital facilities, or alcohol ownership to the lessee. All other leases are classifi ed as operating leases. and drug treatment units or hospitals specialising in dental services, hearing and ophthalmic aids. Finance Leases Mental Health Services (Mental Health) comprises of all recurrent health Entity as lessor revenue/expenditure on specialised mental health services (child and adolescent, Ballarat Health Services does not hold any fi nance lease arrangements with other general and adult, community and forensic) managed or funded by the state parties. or territory health administrations, and includes: Admitted patient services (including forensic mental health), outpatient services, emergency department Operating Leases services (where it is possible to separate emergency departmental mental health Rental income from operating lease is recognised on a straight-line basis over the services), community-based services, residential and ambulatory services. term of the relevant lease. Outpatient Services (Outpatients) comprises of all recurrent health revenue/ Operating lease payments, including any contingent rentals are recognised as an expenditure on public hospital type outpatient services, where services are expense in the comprehensive operating statement on a straight line basis over delivered in public hospital outpatient clinics, or free standing day hospital the lease term, except where another systematic basis is more representative of facilities, or rehabilitation facilities, or alcohol and drug treatment units, or the time pattern of the benefi ts derived from the use of the leased asset. outpatient clinics specialising in ophthalmic aids or palliative care.

Leasehold Improvements Emergency Department Services (EDS) comprises of all recurrent health The cost of leasehold improvements are capitalised as an asset and depreciated revenue/expenditure on emergency department services that are available free of over the remaining term of the lease or the estimated useful life of the charge to public patients. improvements, whichever is shorter. Aged Care comprises revenue/expenditure from Home and Community Care (HACC) programs, Allied Health, Aged Care Assessment and support services.

(n) Equity Primary Health comprises revenue/expenditure for Community Health Services including health promotion and counselling, physiotherapy, speech therapy, Contributed Capital podiatry and occupational therapy. Consistent with Australian Accounting Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities and FRD 119 Off Campus, Ambulatory Services (Ambulatory) comprises of all recurrent Contributions by Owners, appropriations for additions to the net asset base have health revenue/expenditure on public hospital type services including palliative been designated as contributed capital. Other transfers that are in the nature of care facilities and rehabilitation facilities, as well as services provided under the contributions or distributions that have been designated as contributed capital following agreements: Services that are provided or received by hospitals (or area are also treated as contributed capital. 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. (o) Commitments Residential Aged Care including Mental Health (RAC incl. Mental Commitments for future expenditure include operating and capital commitments Health) referred to in the past as psychogeriatric residential services, comprises arising from contracts. Major project commitments are fully funded by the those Commonwealth-licensed residential aged care services in receipt of Department of Health. These commitments are disclosed by way of a note (refer supplementary funding from Department of Health under the mental health to note 18) at their nominal value and are inclusive of the goods and services tax program. It excludes all other residential services funded under the mental (“GST”) payable. health program, such as mental health-funded community care units (CCUs) and secure extended care units (SECs).

Other Services excluded from the National Health Care Agreement (p) Contingent assets and contingent liabilities (NHCA) (Other) comprises of revenue/expenditure for services not separately classifi ed above, including: Public health services including Laboratory testing, Contingent assets and contingent liabilities are not recognised in the balance Blood Borne Viruses/ Sexually Transmitted Infections clinical services, Koori liaison sheet, but are disclosed by way of note and, if quantifi able, are measured offi cers, immunisation and screening services, Drugs services including drug at nominal value. Contingent assets and contingent liabilities are presented withdrawal, counselling and the needle and syringe program, Dental Health inclusive of GST receivable or payable respectively. services including general and specialist dental care, school dental services and clinical education, Disability services including aids and equipment and fl exible support packages to people with a disability, Community Care programs including sexual assault support, early parenting services, parenting assessment (q) Goods and Services Tax and skills development, and various support services. Health and Community Initiatives also fall into this category group. 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 the taxation authority is included with other receivables in the balance sheet.

Cash fl ows are presented on a gross basis. The GST components of cash fl ows arising from investing or fi nancing activities which are recoverable from or payable to the taxation authority are presented as an operating cash fl ow.

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

40 Ballarat Health Services Notes to and forming part of the fi nancial statements for the year ended 30 June 2012.

Note 1: Summary of Signifi cant Accounting Policies (continued)

(s) AASs issued that are not yet effective

Certain new Australian Accounting Standards and interpretations have been published that are not mandatory for 30 June 2012 reporting period.

As at 30 June 2012, the following standards and interpretations had been issued by the AASB but were not yet effective. They become effective for the fi rst fi nancial statements for reporting periods commencing after the stated operative dates as detailed in the table below. Ballarat Health Services has not and does not intend to adopt these standards early.

Standard / Interpretation Summary Applicable for annual reporting Impact on Health Service’s Financial periods beginning or ending on Statements AASB 9 Financial instruments This standard simplifi es requirements 1 Jan 2013 Detail of impact is still being assessed. for the classifi cation and measurement of fi nancial assets resulting from Phase 1 of the IASB’s project to replace IAS 39 Financial Instruments: Recognition and Measurement (AASB 139 Financial Instruments: Recognition and Measurement). AASB 10 Consolidated Financial This Standard establishes principles 1 Jan 2013 Not-for-profi t entities are not permitted Statements for the presentation and preparation to apply this Standard prior to the of consolidated fi nancial statements mandatory application date. The when an entity controls one or AASB is assessing the applicability of more other entities and supersedes principles in AASB 10 in a not-for- those requirements in AASB 127 profi t context. As such, impact will be Consolidated and Separate Financial assessed after the AASB’s deliberation. Statements and Interpretation 112 Consolidation – Special Purpose Entities. AASB 11 Joint Arrangements This Standard requires entities that 1 Jan 2013 Not-for-profi t entities are not permitted have an interest in arrangements that to apply this Standard prior to the are controlled jointly to assess whether mandatory application date. The the arrangement is a joint operation AASB is assessing the applicability of or joint venture. AASB 11 shall be principles in AASB 11 in a not-for- applied for an arrangement that is a profi t context. As such, impact will be joint operation. It also replaces parts of assessed after the AASB’s deliberation. requirements in AASB 131 Interests in Joint Ventures. AASB 12 Disclosure of Interests in This Standard requires disclosure 1 Jan 2013 Not-for-profi t entities are not permitted Other Entities of information that enables users to apply this Standard prior to the of fi nancial statements to evaluate mandatory application date. The the nature of, and risks associated AASB is assessing the applicability of with, interests in other entities and principles in AASB 12 in a not-for- the effects of those interests on the profi t context. As such, impact will be fi nancial statements. This Standard assessed after the AASB’s deliberation. replaces the disclosure requirements in AASB 127 and AASB 131. AASB 13 Fair Value Measurement This Standard outlines the requirements 1 Jan 2013 Disclosure for fair value measurements for measuring the fair value of assets using unobservable inputs are relatively and liabilities and replaces the existing onerous compared to disclosure fair value defi nition and guidance for fair value measurements using in other AASs. AASB 13 includes a observable inputs. Consequently, the ‘fair value hierarchy’ which ranks the Standard may increase the disclosures valuation technique inputs into three for public sector entities that have levels using unadjusted quoted prices assets measured using depreciated in active markets for identical assets or replacement cost. liabilities; other observable inputs; and unobservable inputs. AASB 119 Employee Benefi ts In this revised Standard for defi ned 1 Jan 2013 Not-for-profi t entities are not permitted benefi t superannuation plans, there to apply this Standard prior to the is a change to the methodology in mandatory application date. the calculation of superannuation While the total superannuation expense expenses, in particular there is is unchanged, the revised methodology now a change in the split between is expected to have a negative impact superannuation interest expense on the net result from transactions of (classifi ed as transactions) and actuarial the general government sector and gains and losses (classifi ed as ‘Other for those few Victorian public sector economic fl ows – other movements in entities that report superannuation equity’) reported on the comprehensive defi ned benefi t plans. operating statement.

www.bhs.org.au 41 Notes to and forming part of the fi nancial statements for the year ended 30 June 2012.

Standard / Interpretation Summary Applicable for annual reporting Impact on Health Service’s Financial periods beginning or ending on Statements AASB 127 Separate Financial This revised Standard prescribes the 1 Jan 2013 Not-for-profi t entities are not permitted Statements accounting and disclosure requirements to apply this Standard prior to the for investments in subsidiaries, joint mandatory application date. The ventures and associates when an entity AASB is assessing the applicability of prepares separate fi nancial statements. principles in AASB 127 in a not-for- profi t context. As such, impact will be assessed after the AASB’s deliberation. AASB 128 Investments in Associates This revised Standard sets out the 1 Jan 2013 Not-for-profi t entities are not permitted and Joint Ventures requirements for the application of to apply this Standard prior to the the equity method when accounting mandatory application date. The for investments in associates and joint AASB is assessing the applicability of ventures. principles in AASB 128 in a not-for- profi t context. As such, impact will be assessed after the AASB’s deliberation. AASB 1053 Application of Tiers of This Standard establishes a differential 1 July 2013 The Victorian Government is currently Australian Accounting Standards fi nancial reporting framework considering the impacts of Reduced consisting of two tiers of reporting Disclosure Requirements (RDRs) for requirements for preparing general certain public sector entities and purpose fi nancial statements. has not decided if RDRs will be implemented in the Victorian public sector. AASB 2009-11 Amendments to This Standard gives effect to 1 Jan 2013 No signifi cant impact is expected from Australian Accounting Standards arising consequential changes arising from the these consequential amendments on from AASB 9 [AASB 1, 3, 4, 5, 7, 101, issuance of AASB 9. entity reporting. 102, 108, 112, 118, 121, 127, 128, 131, 132, 136, 139, 1023 and 1038 and Interpretations 10 and 12] AASB 2010-2 Amendments to This Standard makes amendments to 1 July 2013 The Victorian Government is currently Australian Accounting Standards arising many Australian Accounting Standards, considering the impacts of Reduced from Reduced Disclosure Requirements including Interpretations, to introduce Disclosure Requirements (RDRs) for reduced disclosure requirements to the certain public sector entities and pronouncements for application by has not decided if RDRs will be certain types of entities. implemented in the Victorian public sector. AASB 2010-7 Amendments to These consequential amendments 1 Jan 2013 No signifi cant impact is expected from Australian Accounting Standards are in relation to the introduction of these consequential amendments on arising from AASB 9 (December 2010) AASB 9. entity reporting. [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 & 1038 and Interpretations 2, 5, 10, 12, 19 & 127] AASB 2010-8 Amendments to This amendment provides a practical Beginning 1 Jan 2012 This amendment provides additional Australian Accounting Standards – approach for measuring deferred tax clarifi cation through practical guidance. Deferred Tax: Recovery of Underlying assets and deferred tax liabilities when Assets [AASB 112] measuring investment property by using the fair value model in AASB 140 Investment Property. AASB 2010-10 Further Amendments The amendments ultimately affect 1 Jan 2013 No signifi cant impact is expected on to Australian Accounting Standards – AASB 1 First-time Adoption of entity reporting. Removal of Fixed Dates for First-time Australian Accounting Standards and Adopters [AASB 2009-11 & AASB provide relief for fi rst-time adopters of 2010-7] Australian Accounting Standards from having to reconstruct transactions that occurred before their date of transition to Australian Accounting Standards. AASB 2011-2 Amendments to The objective of this amendment is to 1 July 2013 The Victorian Government is currently Australian Accounting Standards arising include some additional disclosure from considering the impacts of Reduced from the Trans-Tasman Convergence the Trans-Tasman Convergence Project Disclosure Requirements (RDRs) Project – Reduced Disclosure and to reduce disclosure requirements and has not decided if RDRs will be Requirements for entities preparing general purpose implemented in the Victorian public [AASB 101 & AASB 1054] fi nancial statements under Australian sector. Accounting Standards – Reduced Disclosure Requirements. AASB 2011-3 Amendments to This amends AASB 1049 to clarify the 1 July 2012 This amendment provides clarifi cation Australian Accounting Standards defi nition of the ABS GFS Manual, and to users preparing the whole of – Orderly Adoption of Changes to to facilitate the adoption of changes government and general govovernment the ABS GFS Manual and Related to the ABS GFS Manual and related sector fi nancial reports on the version Amendments [AASB 1049] disclosures. of the GFS Manual to be used and what to disclose if the latest GFS Manual is not used. No impact on departmental or entity reporting.

42 Ballarat Health Services Notes to and forming part of the fi nancial statements for the year ended 30 June 2012.

Standard / Interpretation Summary Applicable for annual reporting Impact on Health Service’s Financial periods beginning or ending on Statements AASB 2011-4 This Standard amends AASB 124 1 July 2013 No signifi cant impact is expected from Amendments to Australian Accounting Related Party Disclosures by removing these consequential amendments on Standards to Remove Individual Key the disclosure requirements in AASB entity reporting. Management Personnel Disclosure 124 in relation to individual key Requirements. [AASB 124] management personnel (KMP). AASB 2011-6 The objective of this Standard is to 1 July 2013 The Victorian Government is currently Amendments to Australian Accounting make amendments to AASB 127 considering the impacts of Reduced Standards – Extending Relief from Consolidated and Separate Financial Disclosure Requirements (RDRs) Consolidation, the Equity Method and Statements, AASB 128 Investments and has not decided if RDRs will be Proportionate Consolidation – Reduced in Associates and AASB 131 Interests implemented in the Victorian public Disclosure Requirements in Joint Ventures to extend the sector. [AASB 127, AASB 128 & AASB 131] circumstances in which an entity can obtain relief from consolidation, the equity method or proportionate consolidation. AASB 2011-7 Amendments to This Standard outlines consequential 1 Jan 2013 No signifi cant impact is expected from Australian Accounting Standards arising changes arising from the issuance these consequential amendments on from the Consolidation and Joint of the fi ve ‘new Standards’ to other entity reporting. Arrangements Standards Standards. For example, references to [AASB 1, 2, 3, 5, 7, 9, 2009-11, 101, AASB 127 Consolidated and Separate 107, 112, 118, 121, 124, 132, 133, Financial Statements are amended 136, 138, 139, 1023 & 1038 and to AASB 10 Consolidated Financial Interpretations 5, 9, 16 & 17] Statements or AASB 127 Separate Financial Statements, and references to AASB 131 Interests in Joint Ventures are deleted as that Standard has been superseded by AASB 11 and AASB 128 (August 2011). AASB 2011-8 This amending Standard makes 1 Jan 2013 Disclosures for fair value measurements Amendments to Australian Accounting consequentical changes to a range using unobservable inputs is potentially Standards arising from AASB 13 of Standards and Interpretations onerous, and may increase disclosures [AASB 1, 2, 3, 4, 5, 7, 9, 2009-11, arising from the issuance of AASB 13. for assets measured using depreciated 2010-7, 101, 102, 108, 110, 116, 117, In particular, this Standard replaces replacement cost. 118, 119, 120, 121, 128, 131, 132, the existing defi nition and guidance 133, 134, 136, 138, 139, 140, 141, of fair value measurements in other 1004, 1023 & 1038 and Interpretations Australian Accounting Standards and 2, 4, 12, 13, 14, 17, 19, 131 & 132] Interpretations. AASB 2011-9 The main change resulting from 1 July 2012 This amending Standard could change Amendments to Australian Accounting this Standard is a requirement for the current presentation of ‘Other Standards – Presentation of Items of entities to group items presented in economic fl ows- other movements Other Comprehensive Income other comprehensive income (OCI) in equity’ that will be grouped [AASB 1, 5, 7, 101, 112, 120, 121, on the basis of whether they are on the basis of whether they are 132, 133, 134, 1039 & 1049] potentially reclassifi able to profi t or potentially reclassifi able to profi t or loss subsequently (reclassifi cation loss subsequently. No other signifi cant adjustments). These amendments impact will be expected. do not remove the option to present profi t or loss and other comprehensive income in two statements, nor change the option to present items of OCI either before tax or net of tax. AASB 2011-10 This Standard makes consequential 1 Jan 2013 No signifi cant impact is expected from Amendments to Australian Accounting changes to a range of other Australian these consequential amendments on Standards arising from AASB 119 Accounting Standards and Interpretaion entity reporting. (September 2011) arising from the issuance of AASB 119 [AASB 1, AASB 8, AASB 101, AASB Employee Benefi ts. 124, AASB 134, AASB 1049 & AASB 2011-8 and Interpretation 14] AASB 2011-11 This Standard makes amendments 1 July 2013 The Victorian Government is currently Amendments to AASB 119 (September to AASB 119 Employee Benefi ts considering the impacts of Reduced 2011) arising from Reduced Disclosure (September 2011), to incorporate Disclosure Requirements (RDRs) Requirements reduced disclosure requirements into and has not decided if RDRs will be the Standard for entities applying Tier implemented in the Victorian public 2 requirements in preparing general sector. purpose fi nancial statements. AASB 2011-12 Amendments to This Standard makes amendments 1 Jan 2013 There may be an impact for new Australian Accounting Standards arising to AASB 1 First-time Adoption of agencies that adopt Australian from Interpretation 20 Australian Accounting Standards, as a Accounting Standards for the fi rst time. [AASB 1] consequence of the issuance of IFRIC No implication is expected for existing Interpretation 20 Stripping Costs in the entities in the Victorian public sector. Production Phase of a Surface Mine. This Standard allows the fi rst-time adopters to apply the transitional provisions contained in Interpretation 20.

www.bhs.org.au 43 Notes to and forming part of the fi nancial statements for the year ended 30 June 2012.

Standard / Interpretation Summary Applicable for annual reporting Impact on Health Service’s Financial periods beginning or ending on Statements 2011-13 Amendments to Australian This Standard aims to improve the 1 July 2012 No signifi cant impact is expected from Accounting Standard – Improvements AASB 1049 Whole of Government and these consequential amendments on to AASB 1049 General Government Sector Financial entity reporting. Reporting at the operational level. The main amendments clarify a number of requirements in AASB 1049, including the amendment to allow disclosure of other measures of key fi scal aggregates as long as they are clearly distinguished from the key fi scal aggregates and do not detract from the the information required by AASB 1049. Furthermore, this Standard provides additional guidance and examples on the classifi cation between ‘transactions’ and ‘other economic fl ows’ for GAAP items without GFS equivalents. 2012-1 Amendments to Australian This amending Standard prescribes 1 July 2013 As the Victorian whole of government Accounting Standards - Fair Value the reduced disclosure requirements and the general government (GG) Measurement - Reduced Disclosure in a number of Australian Accounting sector are subject to Tier 1 reporting Requirements Standards as a consequence of the requirements (refer to AASB 1053 [AASB 3, AASB 7, AASB 13, AASB 140 issuance of AASB 13 Fair Value Application of Tiers of Australian & AASB 141] Measurement. Accounting Standards), the reduced disclosure requirements included in AASB 2012-1 will not affect the fi nancial reporting for Victorian whole of government and GG sector. AASB Interpretation 20 Stripping Costs This Interpretation clarifi es when 1 Jan 2013 No signifi cant impact is expected on in the Production Phase of a Surface production stripping costs should lead entity reporting. Mine to the recognition of an asset and how that asset should be initially and subsequently measured.

44 Ballarat Health Services Notes to and forming part of the fi nancial statements for the year ended 30 June 2012.

Note 2: Revenue

HSA HSA H&CI H&CI Total Total 2012 2011 2012 2011 2012 2011 Note $000 $000 $000 $000 $000 $000

Revenue from Operating Activities Government Grants - Department of Health 201,684 190,258 - - 201,684 190,258 - Department of Human Services 37,207 14,414 - - 37,207 14,414 - Commonwealth Government - Aged Care Funding Instrument (ACFI) 18,201 17,909 - - 18,201 17,909 - PBS Contributions 4,541 3,344 - - 4,541 3,344 - Home & Community Care (HACC) 328 322 - - 328 322 - Transition Care 2,710 1,721 - - 2,710 1,721 - Disability 1,879 1,804 - - 1,879 1,804 - Other 3,347 3,304 - - 3,347 3,304 Total Government Grants 269,897 233,076 - - 269,897 233,076

Indirect contributions by Department of Health Indirect contributions by Department of Health - Insurance 278 2,915 - - 278 2,915 Total Indirect Contributions by Department of Health 278 2,915 - - 278 2,915

Patient, Resident & Private Practice Fees Patient and Resident Fees 2(d) 15,461 15,214 - - 15,461 15,214 Private Practice Fees - - 1,380 1,090 1,380 1,090 Total Patient, Resident & Private Practice Fees 15,461 15,214 1,380 1,090 16,841 16,304

Business Unit and Specifi c Purpose Funds Safety Link - - 6,056 6,063 6,056 6,063 Radiology - - 8,115 7,060 8,115 7,060 Catering - - 4,906 4,863 4,906 4,863 Eureka Linen - - 3,348 3,649 3,348 3,649 Grampians Integrated Cancer Services (GICS) - - 1,362 1,646 1,362 1,646 Breastscreen - - 1,392 1,426 1,392 1,426 Salary Packaging - - 1,497 1,402 1,497 1,402 Education - - 486 939 486 939 Accommodation - - 834 780 834 780 Car Parking - - 356 290 356 290 Print Shop - - 324 280 324 280 Recoupment from Private Practice for Use of Hospital Facilities - - 601 475 601 475 Donations & Bequests - - 1,914 300 1,914 300 Grampians Regional Health Alliance - - 921 793 921 793 Client Fees 2,300 2,103 - - 2,300 2,103 Other Services 4,956 1,682 2,869 1,660 7,825 3,342 Total Business Units and Specifi c Purpose Funds 7,256 3,785 34,981 31,626 42,237 35,411

Total Revenue from Operating Activities 292,892 254,990 36,361 32,716 329,253 287,706

Revenue from Non-Operating Activities Interest & Dividends - - 1,048 587 1,048 587 Total Revenue from Non-Operating Activities - - 1,048 587 1,048 587

Revenue from Non-Operating Activities Government Grants - Department of Health - - 39,585 13,689 39,585 13,689 - Commonwealth Government - - 762 944 762 944 Residential Accommodation Payments 2(d) - - 1,104 1,036 1,104 1,036 Net Gain/(Loss) on Disposal of Financial Assets - - - (505) - (505) Grampians Regional Health Alliance - - 48 10 48 10 Capital Interest - - 1,398 1,252 1,398 1,252 Assets Received Free of Charge - - - 600 - 600 Donations and Bequests - - 88 377 88 377 Total Capital Purpose Income - - 42,986 17,403 42,986 17,403

Total Revenue 2(a) 292,892 254,990 80,395 50,706 373,287 305,696

Indirect Contributions by the Department of Health - The Department of Health makes insurance payments on behalf of Ballarat Health Service. These amounts have been brought to account in determining the operating result for the year by recording them as revenue and expense.

www.bhs.org.au 45 Notes to and forming part of the fi nancial statements for the year ended 30 June 2012.

Note 2(a): Analysis of Revenue by Source

Admitted Outpatients EDS Ambulatory Mental RAC Aged Other Total Patients Health Care 2012 2012 2012 2012 2012 2012 2012 2012 2012 Note $000 $000 $000 $000 $000 $000 $000 $000 $000

Revenue from Services Supported by Health Service Agreement Government Grants 119,010 11,404 9,935 25,492 29,256 25,742 7,742 41,316 269,897 Indirect contributions by Department of Health 170 11 8 17 27 28 7 9 278 Patient and Resident Fees 2(d) 5,137 234 - 2,786 215 6,947 142 - 15,461 Client Fees 456 132 - 709 80 61 179 683 2,300 Other 2,455 692 219 634 531 300 37 88 4,956 Total Revenue from Services Supported by Health Services Agreement 127,228 12,473 10,162 29,638 30,109 33,078 8,107 42,096 292,892

Revenue from Services Supported by Hospital and Community Initiatives Business Units & Special Purpose Funds ------34,577 34,577 Capital Purpose Income ------42,349 42,349 Grampians Regional Health Alliance ------969 969 Other ------2,500 2,500 Total Revenue from Services Supported by Hospital and Community Initiatives ------80,395 80,395

Total Revenue All Sources 127,228 12,473 10,162 29,638 30,109 33,078 8,107 122,491 373,287

Indirect Contributions by the Department of Health - The Department of Health makes insurance payments on behalf of Ballarat Health Service. These amounts have been brought to account in determining the operating result for the year by recording them as revenue and expense.

Note 2(a): Analysis of Revenue by Source (Continued)

Admitted Outpatients EDS Ambulatory Mental RAC Aged Other Total Patients Health Care 2011 2011 2011 2011 2011 2011 2011 2011 2011 Note $000 $000 $000 $000 $000 $000 $000 $000 $000

Revenue from Services Supported by Health Service Agreement Government Grants 111,543 10,704 9,135 22,451 28,310 25,958 6,985 17,990 233,076 Indirect contributions by Department of Health 1,784 116 81 181 288 293 75 96 2,915 Patient and Resident Fees 2(d) 4,927 197 - 2,925 202 6,839 124 - 15,214 Client Fees 460 134 - 698 81 62 197 471 2,103 Other 1,041 166 1 251 94 74 9 46 1,682 Total Revenue from Services Supported by Health Services Agreement 119,755 11,317 9,217 26,506 28,975 33,226 7,390 18,603 254,990

Revenue from Services Supported by Hospital and Community Initiatives Business Units & Special Purpose Funds ------33,202 33,202 Capital Purpose Income ------15,405 15,405 Grampians Regional Health Alliance ------803 803 Other ------1,296 1,296 Total Revenue from Services Supported by Hospital and Community Initiatives ------50,706 50,706

Total Revenue All Sources 119,755 11,317 9,217 26,506 28,975 33,226 7,390 69,309 305,696

Indirect Contributions by the Department of Health - The Department of Health makes insurance payments on behalf of Ballarat Health Service. These amounts have been brought to account in determining the operating result for the year by recording them as revenue and expense.

46 Ballarat Health Services Notes to and forming part of the fi nancial statements for the year ended 30 June 2012.

Note 2(b): Expenses

HSA HSA H&CI H&CI Total Total 2012 2011 2012 2011 2012 2011 Note $000 $000 $000 $000 $000 $000

Employee Entitlements Salaries and Wages 187,842 169,526 14,908 12,428 202,750 181,954 Superannuation 15,966 14,745 1,404 1,197 17,370 15,942 Long Service Leave 5,100 4,568 426 342 5,526 4,910 Workcover 2,914 2,713 330 355 3,244 3,068 Departure Packages - 87 - 74 - 161 Total Employee Benefi ts 211,822 191,639 17,068 14,396 228,890 206,035

Contract Labour Costs Contract Labour Medical 330 444 - - 330 444 Contract Labour Other 304 983 151 77 455 1,060 Total Contract Labour Costs 634 1,427 151 77 785 1,504

Supplies and Consumables Medical and Surgical Supplies 39,676 19,349 1,549 1,118 41,225 20,467 Drug Supplies 6,894 6,279 - - 6,894 6,279 Food Supplies 2,764 2,812 1,887 1,748 4,651 4,560 S100 Drugs 2,674 2,513 - - 2,674 2,513 Total Supplies and Consumables 52,008 30,953 3,436 2,866 55,444 33,819

Other Expenses Purchased Services 8,074 6,840 2,841 3,478 10,915 10,318 Repairs and Maintenance 5,777 5,247 1,375 1,895 7,152 7,142 Administrative Expenses 2,986 3,750 2,957 2,784 5,943 6,534 Freight 119 11 - - 119 11 Staff Training 648 177 - - 648 177 Uniforms 59 5 - - 59 5 Advertising 114 149 - - 114 149 Licence and Registration 157 38 - - 157 38 Security 22 10 - - 22 10 Rental 383 370 - - 383 370 Work Related 606 276 - - 606 276 Diagnostic Services 2,366 5,176 - - 2,366 5,176 Energy Costs 2,802 2,954 259 205 3,061 3,159 Domestic Services 1,670 1,626 231 267 1,901 1,893 Insurance Costs 278 - - - 278 - Insurance Costs funded by DH 3,033 2,915 - - 3,033 2,915 Vehicle Modifi cations Scheme 1,258 1,110 - - 1,258 1,110 Computing Services 959 1,134 56 38 1,015 1,172 Communications 1,072 990 444 433 1,516 1,423 Dental Services 135 977 - - 135 977 Safety Link Units - - 1,000 1,049 1,000 1,049 Grampians Regional Health Alliance - - 960 981 960 981 Patient Transport 1,543 1,173 - - 1,543 1,173 Vehicle Fleet Expenses 455 412 85 89 540 501 Audit Fees - Auditor General - - 84 87 84 87 - Other - - 160 124 160 124 Total Other Expenses 34,516 35,340 10,452 11,430 44,968 46,770

Impairment of Financial Assets Available for Sale Financial Assets - - (42) (1,991) (42) (1,991) Total Impairment of Non-Financial Assets - - (42) (1,991) (42) (1,991)

Depreciation 3 - - 25,950 26,214 25,950 26,214 Net (Gain)/Loss from Disposal of Non Current Asset - - (367) 19 (367) 19 Other - - 1,148 1,480 1,148 1,480

Total Expenses 298,980 259,359 57,796 54,491 356,776 313,850

www.bhs.org.au 47 Notes to and forming part of the fi nancial statements for the year ended 30 June 2012.

Note 2(c): Analysis of Expenses by Source

Admitted Outpatients EDS Ambulatory Mental RAC Aged Other Total Patients Health Care 2012 2012 2012 2012 2012 2012 2012 2012 2012 Note $000 $000 $000 $000 $000 $000 $000 $000 $000

Services Supported by the Health Services Agreement Employee Entitlements Salaries and Wages 83,241 10,200 12,818 18,264 24,037 29,647 3,872 5,763 187,842 Superannuation 7,229 582 1,240 1,424 2,011 2,644 352 484 15,966 Long Service Leave 2,273 274 354 498 640 806 104 151 5,100 Workcover 899 (103) 215 185 394 1,156 96 72 2,914 Contract Labour Costs Contract Labour Costs Medical 330 ------330 Contract Labour Costs Other - - - 56 41 - 147 60 304 Supplies and Consumables Drug Supplies 6,875 - - - 1 18 - - 6,894 S100 Drugs 2,674 ------2,674 Medical and Surgical Supplies 7,673 336 667 755 185 498 29 29,533 39,676 Food Supplies 851 402 7 429 310 667 42 56 2,764 Other Expenses Purchased Services 129 18 - 3,750 34 13 2,482 1,648 8,074 Diagnostic Services 2,366 ------2,366 Dental Services 135 ------135 Energy Costs 1,965 92 - 78 89 523 35 20 2,802 Domestic Services 685 182 49 199 148 362 22 23 1,670 Repairs and Maintenance/Minor Equipment 2,095 878 17 855 648 478 79 727 5,777 Patient Transport 1,102 4 11 247 63 9 93 14 1,543 Administrative Expenses 1,088 334 62 351 508 215 93 335 2,986 Freight 57 20 - 17 12 9 1 3 119 Staff Training 94 49 - 70 342 32 26 35 648 Uniforms 24 10 - 9 6 6 3 1 59 Advertising 46 6 4 6 25 13 7 7 114 Licence and Registration 55 23 - 19 15 41 1 3 157 Security 4 1 - 3 4 4 6 - 22 Rental - - - - 134 - 82 167 383 Work Related 327 53 38 69 77 24 6 12 606 Vehicle Modifi cations Scheme ------1,258 1,258 Vehicle Fleet Expenses 166 85 - 71 56 39 28 10 455 Computing Services 362 182 - 154 113 121 6 21 959 Communications 325 116 31 124 174 132 44 126 1,072 Insurance Costs 123 15 19 27 36 44 6 9 278 Insurance Costs funded by DH 1,344 165 207 295 388 479 63 93 3,033 Total Expenses from Services Supported by the Health Services Agreement 124,537 13,924 15,739 27,955 30,491 37,980 7,724 40,631 298,980

48 Ballarat Health Services Notes to and forming part of the fi nancial statements for the year ended 30 June 2012.

Note 2(c): Analysis of Expenses by Source (continued)

Admitted Outpatients EDS Ambulatory Mental RAC Aged Other Total Patients Health Care 2012 2012 2012 2012 2012 2012 2012 2012 2012 Note $000 $000 $000 $000 $000 $000 $000 $000 $000

Services Supported by Hospital and Community Initiatives Employee Entitlements Salaries and Wages ------14,908 14,908 Superannuation ------330 330 Long Service Leave ------1,404 1,404 Workcover ------426 426 Contract Labour Costs Contract Labour Costs Other ------151 151 Supplies and Consumables Medical and Surgical Supplies ------1,549 1,549 Food Supplies ------1,887 1,887 Other Expenses Purchased Services ------2,841 2,841 Energy Costs ------259 259 Domestic Services ------231 231 Repairs and Maintenance/Minor Equipment ------1,375 1,375 Safety Link Units ------1,000 1,000 Administrative Expenses ------2,957 2,957 Vehicle Fleet Expenses ------85 85 Computing Services ------56 56 Communication ------444 444 Depreciation 3 8,320 2,559 510 336 1,114 4,243 2,590 6,279 25,950 Audit Fees - Auditor General 35 4 4 8 8 11 2 11 84 - Other 67 7 9 15 16 20 4 22 160 Impairment of Financial Assets - Available for Sale ------(42) (42) Grampians Regional Health Alliance ------960 960 Net Loss from Disposal of Non Current Asset 2(e) ------(367) (367) Other ------1,148 1,148 Total Services Supported by Hospital and Community Initiatives 8,423 2,570 523 358 1,139 4,274 2,596 37,914 57,796

Total Expenses 132,959 16,494 16,261 28,313 31,629 42,253 10,320 78,544 356,776

www.bhs.org.au 49 Notes to and forming part of the fi nancial statements for the year ended 30 June 2012.

Note 2(c): Analysis of Expenses by Source

Admitted Outpatients EDS Ambulatory Mental RAC Aged Other Total Patients Health Care 2011 2011 2011 2011 2011 2011 2011 2011 2011 Note $000 $000 $000 $000 $000 $000 $000 $000 $000

Services Supported by the Health Services Agreement Employee Entitlements Salaries and Wages 75,173 8,816 11,150 16,760 21,779 28,426 3,087 4,335 169,526 Superannuation 6,619 502 1,074 1,346 1,915 2,638 293 358 14,745 Long Service Leave 2,028 216 307 445 590 786 86 110 4,568 Workcover 910 69 205 280 375 702 123 49 2,713 Departure Packages 22 - - 27 19 15 - 4 87 Contract Labour Costs Contract Labour Costs Medical 416 - 28 - - - - - 444 Contract Labour Costs Other 162 77 - 99 262 36 168 179 983 Supplies and Consumables Drug Supplies 6,250 - - - 1 28 - - 6,279 S100 Drugs 2,513 ------2,513 Medical and Surgical Supplies 8,290 157 593 587 107 411 20 9,184 19,349 Food Supplies 828 377 9 430 299 768 48 53 2,812 Other Expenses Purchased Services 130 13 - 2,929 41 18 2,014 1,695 6,840 Diagnostic Services 5,176 ------5,176 Dental Services 977 ------977 Energy Costs 2,059 105 - 89 127 512 37 25 2,954 Domestic Services 640 177 42 195 153 379 19 21 1,626 Repairs and Maintenance/Minor Equipment 1,922 795 34 779 586 528 125 478 5,247 Patient Transport 833 5 16 206 24 11 64 14 1,173 Administrative Expenses 1,317 491 80 455 685 288 71 363 3,750 Freight 11 ------11 Staff Training 20 - 5 14 88 13 13 24 177 Uniforms 4 - - - 1 - - - 5 Advertising 76 - 4 3 21 9 6 30 149 Licence and Registration 5 - - 1 - 31 1 - 38 Security 2 - - 2 3 2 1 - 10 Rental - - - - 175 - 106 89 370 Work Related 194 - 26 16 32 2 1 5 276 Vehicle Modifi cations Scheme ------1,110 1,110 Vehicle Fleet Expenses 152 77 - 66 51 37 18 11 412 Computing Services 436 220 - 185 134 125 8 26 1,134 Communications 313 114 30 117 180 104 42 90 990 Insurance Costs funded by DH 1,293 152 192 288 374 489 53 75 2,915 Total Expenses from Services Supported by the Health Services Agreement 118,771 12,363 13,795 25,319 28,023 36,358 6,404 18,328 259,359

50 Ballarat Health Services Notes to and forming part of the fi nancial statements for the year ended 30 June 2012.

Note 2(c): Analysis of Expenses by Source (continued)

Admitted Outpatients EDS Ambulatory Mental RAC Aged Other Total Patients Health Care 2011 2011 2011 2011 2011 2011 2011 2011 2011 Note $000 $000 $000 $000 $000 $000 $000 $000 $000

Services Supported by Hospital and Community Initiatives Employee Entitlements Salaries and Wages ------12,428 12,428 Workcover ------355 355 Superannuation ------1,197 1,197 Long Service Leave ------342 342 Departure Packages ------74 74 Contract Labour Costs Contract Labour Costs Other ------77 77 Supplies and Consumables Medical and Surgical Supplies ------1,118 1,118 Food Supplies ------1,748 1,748 Other Expenses Purchased Services ------3,478 3,478 Energy Costs ------205 205 Domestic Services ------267 267 Repairs and Maintenance/Minor Equipment ------1,895 1,895 Safety Link Units ------1,049 1,049 Administrative Expenses ------2,784 2,784 Vehicle Fleet Expenses ------89 89 Computing Services ------38 38 Communication ------433 433 Depreciation 3 8,405 2,585 515 339 1,125 4,286 2,616 6,343 26,214 Audit Fees - Auditor General 44 4 4 8 9 11 2 6 87 - Other 53 6 7 13 14 18 3 9 124 Impairment of Financial Assets - Available for Sale ------(1,991) (1,991) Grampians Regional Health Alliance ------981 981 Net Loss from Disposal of Non Current Asset 2(e) ------19 19 Other ------1,480 1,480 Total Services Supported by Hospital and Community Initiatives 8,502 2,595 526 360 1,148 4,316 2,621 34,423 54,491

Total Expenses 127,273 14,958 14,321 25,679 29,171 40,673 9,025 52,751 313,850

Note 2(d): Patient and Resident Fees

2012 2011 $000 $000

Acute - Inpatients 7,923 7,852 - Outpatients 234 197 Residential Aged Care - Geriatric 6,658 6,567 - Inpatients 289 272 Aged Care 142 124 Mental Health 215 202 Total Proceeds from Disposal of Non-Financial Assets 15,461 15,214

Capital Purpose Income Residential Accommodation Payments 1,104 1,036

Total Capital Purpose Income 1,104 1,036

Ballarat Health Services charge fees in accordance with the Department of Health and Department of Health and Ageing directives.

www.bhs.org.au 51 Notes to and forming part of the fi nancial statements for the year ended 30 June 2012.

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

2012 2011 $000 $000

Proceeds from Disposal of Non-Financial Assets Plant and Equipment 11 4 Medical Equipment - 500 Motor Vehicles 1,159 1,359 Total Proceeds from Disposal of Non-Financial Assets 1,170 1,863

Less: Written Down Value of Non-Financial Assets Sold Plant and Equipment (4) (7) Medical Equipment - (721) Buildings - (155) Motor Vehicles (799) (999) Total Written Down Value of Non-Financial Assets Sold (803) (1,882)

Net Gain/(Loss) on Disposal of Non-Financial Assets 367 (19)

Note 2(f): Analysis of Expenses for Services Supported by Hospital and Community Initiatives

2012 2011 $000 $000

Business Units Safety Link 5,027 5,339 Catering 3,837 3,957 Eureka Linen 3,352 3,271 12,216 12,567

Other Services Depreciation 23,885 23,775 Radiology 7,496 6,615 Breastscreen 1,136 1,426 Child and Youth Redesign 672 216 Grampians Regional Health Alliance 960 981 Private Practice 1,608 1,426 Accommodation 636 608 IMS Research 351 166 Education Services 1,483 807 Diabetic Shop 272 366 Direct 2 Care 336 328 Print Shop 481 459 Hospital Redesign 254 208 Salary Packaging 239 223 Grampians Intergrated Cancer Service 1,299 1,484 Midwifery 228 239 Other 4,244 2,597 45,580 41,924

Total 57,796 54,491

The Depreciation fi gure above excludes the depreciation associated with the Business units. The total depreciation attributable to the Business units is $2,064,862.

52 Ballarat Health Services Notes to and forming part of the fi nancial statements for the year ended 30 June 2012.

Note 3: Depreciation and Amortisation

2012 2011 $000 $000

Buildings 18,362 18,602 Medical Equipment 2,752 2,492 Plant & Equipment 1,519 1,517 Motor Vehicles 1,163 1,266 Personal Alert Call Systems 583 865 Linen Stock 474 493 Information Technology 363 236 Furniture & Fittings 536 434 Kitchen & Catering 134 189 Intangibles 65 121

Total 25,950 26,214

Note 4: Cash and Cash Equivalents

2012 2011 $000 $000

Cash and cash at bank (1) 16,083 16,245

Total 16,083 16,245

Represented By Cash for Health Services Operations (as per Cash fl ow Statement) 16,083 16,245

Total 16,083 16,245

(1) Cash on hand includes cash at bank and petty cash advances.

www.bhs.org.au 53 Notes to and forming part of the fi nancial statements for the year ended 30 June 2012.

Note 5: Receivables

Current Non Current 2012 2011 $000 $000 $000 $000

Contractual

Trade Debtors - Acute and Sub-Acute Inpatients 2,019 - 2,019 1,950 - RAC 147 - 147 120 - Eureka Linen 591 - 591 378 - Radiology 441 - 441 560 - Safety Link 457 - 457 85 - Sundry 3,371 - 3,371 3,048 - Other 42 - 42 14 Accrued Investment Income 358 - 358 56 7,426 - 7,426 6,211

Statutory GST Receivable 587 - 587 740 Department of Health 1,939 4,783 6,722 4,634 2,526 4,783 7,309 5,374

Total 9,952 4,783 14,735 11,585

Less: Allowance for Doubtful Debts Trade Debtors 131 - 131 109 Patient Fees 82 - 82 95

Net Debtors and Accrued Revenue 9,739 4,783 14,522 11,381

Note 5(a): Movement in the Allowance for doubtful debts

2012 2011 $000 $000

Balance at beginning of year 204 196 Amounts written off during the year (14) (29) Amounts recovered during the year (86) (71) Increase/(decrease) in allowance recognised in the net result 109 108

Balance at end of year 213 204

Note 5(b): Ageing analysis of receivables Please refer to note 16 for the ageing analysis of receivables.

Note 5(c): Nature and extent of risk arising from receivables Please refer to note 16 for the nature and extent of credit risk arising from receivables.

54 Ballarat Health Services Notes to and forming part of the fi nancial statements for the year ended 30 June 2012.

Note 6: Other Financial Assets

Operating Operating Specifi c Specifi c Trust Trust Capital Capital Total Total Fund Fund Purpose Purpose Fund Fund Fund Fund Fund Fund 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

Current Shares 382 - - 9 - - - - 382 9 Bank Bill - - - 809 - 188 - - - 997 Term Deposits 4,899 - 562 - 17,427 15,000 9,912 - 32,800 15,000 Floating Rate Notes - - - - 500 1,549 - - 500 1,549 Managed Synthetic Notes - - - - 995 1,855 - - 995 1,855 Grampians Regional Health Alliance - - 585 686 - - - - 585 686 5,281 - 1,147 1,504 18,922 18,592 9,912 - 35,262 20,096

Non Current Floating Rate Notes - - - - - 1,594 - - - 1,594 Radiotherapy Joint Venture ------706 756 706 756 - - - - - 1,594 706 756 706 2,350

Total 5,281 - 1,147 1,504 18,922 20,186 10,618 756 35,968 22,446

Represented by: Health Service Investments 5,281 - 394 613 - - 10,618 756 16,293 1,369 Monies held in Trust - Accommodation Bonds - - - - 17,171 18,980 - - 17,171 18,980 - Patient Monies - - - - 1,085 1,107 - - 1,085 1,107 - Commuted Allowance - - - - 490 - - - 490 - - SWEP - - - - 31 - - - 31 - - GICS - - - - 145 99 - - 145 99 Grampians Regional Health Alliance - - 753 891 - - - - 753 891

5,281 - 1,147 1,504 18,922 20,186 10,618 756 35,968 22,446

Note 6(a): Ageing analysis of other fi nancial assets Please refer to note 16 for the ageing analysis of other fi nancial assets.

Note 6(b): Nature and extent of risk arising from other fi nancial assets Please refer to note 16 for the nature and extent of credit risk arising from other fi nancial assets.

Note 7: Inventory

2012 2011 $000 $000

General 654 614 Pharmaceuticals 617 574

Total 1,271 1,188

www.bhs.org.au 55 Notes to and forming part of the fi nancial statements for the year ended 30 June 2012.

Note 8: Prepayments

2012 2011 $000 $000

Prepayments 841 801

Total 841 801

Note 9(a): Property, Plant & Equipment

Gross Cost/ Accumul. Written Down Written Down Valuation Dep’n Value Value 2012 2012 2012 2011 $000 $000 $000 $000

Land 19,966 - 19,966 19,966 Under Construction 27,875 - 27,875 8,724 Buildings 186,391 34 186,357 176,597 Plant and Equipment 20,510 11,520 8,990 10,264 Medical Equipment 29,385 18,746 10,639 9,399 Computers & Communications 8,212 5,881 2,331 470 Furniture & Fittings 3,463 1,566 1,897 1,928 Kitchen & Catering 2,648 2,152 496 630 Personal Alert Call Systems 10,730 9,818 912 998 Linen Stock 4,279 2,969 1,310 1,274 Motor Vehicles 4,635 2,219 2,416 2,844

Total Fixed Assets 318,094 54,905 263,189 233,095

A review based on FRD103D and Valuer-General Victoria Indicies was conducted on all assets and indicated a change of greater than 10% and less than 40% to building values. A managerial revaluation was conducted on buildings using the Valuer -General’s compounded indicies.

Reconciliations of the carrying amounts of each class of assets for the entity at the beginning and end of the previous and current fi nancial year is set out below.

Land Under Buildings Plant & Medical Computers Furniture Kitchen Personal Linen Motor Total Con- Equipment Equipment & Commu- & & Alert Call Stock Vehicles struction nications Fittings Catering Systems $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

2012 Carrying amount at start of year 19,966 8,724 176,598 10,264 9,399 470 1,928 630 998 1,274 2,844 233,095 Additions - 19,151 8,435 244 3,992 2,228 505 - 497 510 1,533 37,095 Revaluations - - 19,686 ------19,686 Disposals - - - - - (4) - - - - (799) (803) Depreciation expense - - (18,362) (1,519) (2,752) (363) (536) (134) (583) (474) (1,163) (25,884)

Carrying amount at end of year 19,966 27,875 186,357 8,990 10,639 2,331 1,897 496 912 1,310 2,416 263,189

2011 Carrying amount at start of year 17,709 8,256 183,624 11,495 7,930 357 1,518 816 1,704 1,409 3,046 237,865 Additions - 468 11,729 290 4,684 349 844 4 159 358 2,064 20,949 Revaluations 2,257 ------2,257 Disposals - - (155) (4) (723) - - - - - (1,000) (1,882) Depreciation expense - - (18,600) (1,517) (2,492) (236) (434) (190) (865) (493) (1,266) (26,093)

Carrying amount at end of year 19,966 8,724 176,598 10,264 9,399 470 1,928 630 998 1,274 2,844 233,095

56 Ballarat Health Services Notes to and forming part of the fi nancial statements for the year ended 30 June 2012.

Note 9(b): Intangible Assets

2012 2011 $000 $000

Computer Software 1,585 1,575 Less: Accumulated Amortisation (1,469) (1,404)

Total 116 171

Computer Software $000

2012 Carrying amount at start of year 171 Additions 23 Disposals (13) Amortisation (65)

Carrying amount at end of year 116

2011 Carrying amount at start of year 149 Additions 143 Amortisation (121)

Carrying amount at end of year 171

Note 10: Payables

2012 2011 $000 $000

Trade Creditors & Accrued Expenses 20,199 17,808 Salary Packaging Held in Trust 871 771 Department of Health 1,194 1,433

Total 22,264 20,012

Note 10(a): Maturity analysis of payables Please refer to note 16 for the ageing analysis of payables.

Note 10(b): Nature and extent of risk arising from payables Please refer to note 16 for the nature and extent of credit risk arising from payables.

www.bhs.org.au 57 Notes to and forming part of the fi nancial statements for the year ended 30 June 2012.

Note 11: Employee Benefi ts

2012 2011 $000 $000

Current Provisions Employee Benefi ts - Unconditional and expected to be settled within 12 months 31,077 25,236 - Unconditional and expected to be settled after 12 months 18,648 16,103 Total 49,725 41,339

Non-Current Provisions Employee Benefi ts 6,932 5,802 Total 6,932 5,802

Total Provisions 56,657 47,141

(a) Employee Benefi ts and Related On-Costs Current Unconditional Long Service Leave 21,817 19,754 Accrued Leave 16,406 15,535 Accrued Wages and Salaries 10,922 5,486 Accrued Days Off 580 564 Total 49,725 41,339

Non-Current Conditional Long Service Leave 6,932 5,802 Total 6,932 5,802

Total Employee Benefi ts 56,657 47,141

(b) Movement in Provisions Movement in Long Service Leave: Balance July 1 25,556 24,130 Provision made during the year 6,362 5,077 Settlement made during the year (3,169) (3,651)

Balance June 30 28,749 25,556

Provision for Long Service Leave in accordance with AASB 101: Presentation of Financial Statements, Provision for Long Service Leave is considered a current liability in respect to employees who have met the required qualifi cation period, and therefore Ballarat Health Service does not have an unconditional right to defer settlement of the liability for at least twelve months after the balance date. Refer Note 1(l) for details.

Note 12: Monies Held in Trust

2012 2011 $000 $000

Current Monies Held in Trust - Refundable Accommodation Bonds 17,171 18,980 - Resident 1,085 1,107 - Commuted Allowance 490 - - Grampians Integrated Cancer Service 145 99 - State Wide Equipment Program 31 -

Total 18,922 20,186

Monies Held in Trust Represented by: Other Financial Assets and Cash at Bank 18,922 20,186

Total 18,922 20,186

58 Ballarat Health Services Notes to and forming part of the fi nancial statements for the year ended 30 June 2012.

Note 13: Other Liabilities

2012 2011 $000 $000

Current Grampians Regional Health Alliance 168 205

Total 168 205

Note 14: Equity

2012 2011 $000 $000

(a) Reserves Asset Revaluation Reserve (1) Balance at the beginning of the reporting period 75,639 73,382 Revaluation Increments/(Decrements) - Land - 2,257 - Buildings 19,686 - Balance at the end of the reporting period 95,325 75,639

Represented by: Land 12,503 12,503 Buildings 82,822 63,136 95,325 75,639

Specifi c Purpose Reserve Balance at the beginning of the reporting period 650 15,537 Transfer to accumulated surplus (88) (14,887) Balance at the end of the reporting period 562 650

Total Reserves 95,887 76,289

(b) Contributed Capital Balance at the beginning of the reporting period 149,952 149,952 Capital contribution received from Victorian Government - - Balance at the end of the reporting period 149,952 149,952

(c) Retained Earnings Balance at the beginning of the reporting period (28,459) (35,191) Net Result for the Year 16,575 (7,934) Grampians Regional Health Alliance (64) (221) Transfer from Reserve 88 14,887 Balance at the end of the reporting period (11,860) (28,459)

(d) Total Equity at the end of the Financial Year Total Equity at the beginning of the reporting period 197,782 203,680 Total Changes in Equity Recognised in the Statement of Financial Performance 36,197 (5,898)

Total Equity at the end of the reporting period 233,979 197,782

(1) The land, building and investment assets revaluation reserve arises on the revaluation of land, buildings and investments

The above Reserves are internally managed Special Purpose Funds, which are used to quarantine Capital income such as Donations, Capital Grants and Interest Revenue. Once quarantined, this income is used to fund Capital Projects, Refurbishments, Equipment and Education.

www.bhs.org.au 59 Notes to and forming part of the fi nancial statements for the year ended 30 June 2012.

Note 15: Reconciliation of Net Result for the Year to Net Cash Infl ow/(Outfl ow) from Operating Activities

2012 2011 Note $000 $000

Net Result for the Year 16,511 (8,155)

Non Operating Cash Movements Net (Gain)/Loss on Sale of Fixed Assets 2(e) (367) 19 Write off of Investments - 505

Non Cash Movements Depreciation and Amortisation 25,950 26,214 Grampians Regional Health Alliance 64 221 Assets Received Free of Charge (1,034) (600) Impairment of Investments (42) (1,991) Increase/(Decrease) in Payables 2,252 10,031 Increase/(Decrease) in Employee Entitlements 9,516 3,785 Increase/(Decrease) in Other Liabilities (1,301) (1,349) (Increase)/Decrease in Inventory (83) (74) (Increase)/Decrease in Prepayments (40) 49 (Increase)/Decrease in Receivables (3,141) (704)

Net Cash Infl ows from Operating Activities 48,285 27,951

60 Ballarat Health Services Notes to and forming part of the fi nancial statements for the year ended 30 June 2012.

Note 16: Financial Instruments

(a) Financial Risk Management Objectives and Policies Ballarat Health Service’s principal fi nancial instruments comprise of: - Cash Assets - Term Deposits - Receivables (excluding statutory receivables) - Available for sale Financial Assets - Payables (excluding statutory payables) - Accommodation Bonds

Details of the signifi cant 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 fi nancial asset, fi nancial liability and equity instrument are disclosed in Note 1 to the fi nancial statements.

The main purpose in holding fi nancial instruments is to prudentially manage Ballarat Health Services fi nancial risks within the government policy parameters.

Categorisation of Financial Instruments

Carrying Amount Carrying Amount 2012 2011 $000 $000

Financial Assets Cash and cash equivalents 16,083 16,245 Receivables 6,855 5,951 Available for Sale 35,968 22,446

Total Financial Assets (i) 58,906 44,642

Financial Liabilities Payables 21,070 18,579 Accommodation Bonds 17,171 18,980 Monies Held in Trust 1,751 1,206 Other Liabilities 168 205

Total Financial Liabilities (ii) 40,160 38,970

(i) The total amount of fi nancial assets disclosed here excludes statutory receivables (i.e. GST input tax credit recoverable). (ii) The total amount of fi nancial liabilities disclosed here excludes statutory payables (i.e. Taxes payables).

Net holding gain/(loss) on fi nancial instruments by category

Carrying Amount Carrying Amount 2012 2011 $000 $000

Financial Assets Cash and cash equivalents (i) 1,048 587 Designated at fair value through profi t or loss (ii) - (505) Receivables (9) (8) Available for Sale (i) 1,440 3,243

Total Financial Assets 2,479 3,317

Financial Liabilities Accommodation Bonds 72 69

Total Financial Liabilities 72 69

(i) For cash and cash equivalents, loans and receivables and available-for-sale fi nancial assets, the net gain or loss is calculated by taking the interest revenue, plus or minus foreign exchange gains or losses arising from revaluation of the fi nancial assets, and minus any impairment recognised in the net result. (ii) For fi nancial assets and liabilities that are held-for-trading or designated at fair value through profi t or loss, the net gain or loss is calculated by taking the movement In the fair value of the fi nancial asset or liability.

www.bhs.org.au 61 Notes to and forming part of the fi nancial statements for the year ended 30 June 2012.

(b) Credit Risk Credit risk arises from the contractual fi nancial assets of Ballarat Health Service, which comprise cash and deposits, non statutory receivables and available for sale contractual fi nancial assets. Ballarat Health Services exposure to credit risk arises from the potential default of a counter party on their contractual obligations resulting in the fi nancial lose to Ballart Health Services. Credit risk is measured at fair value and is monitored on a regular basis.

In addition, Ballarat Health Services does not engage in hedging for its contractual fi nancial assets and mainly obtains contractual fi nancial assets that are on fi xed interest, except for cash assets, which are mainly cash at bank. Ballarat Health Services is to only deal with banks with high credit ratings.

Provision for impairment for contractual fi nancial assets is recognised when there is objective evidence that Ballarat Health Services will not be able to collect a receivable. Objective evidence includes fi nancial diffi culties of the debtor, default payments, debt’s 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 fi nancial assets recorded in the fi nancial statements, net of any allowances for losses, represents Ballarat Health Services maximum exposure to credit risk without taking account the value of any collateral obtained.

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

Financial Government Other Total Institutions (AAA Agencies (AAA Credit Rating) Credit Rating) $000 $000 $000 $000

2012 Financial Assets Cash and Cash Equivalents 16,083 - - 16,083 Receivables - Trade Debtors - - 6,855 6,855 - Other Receivables (i) 358 - - 358 Other Financial Assets - Term Deposit 32,800 - - 32,800 - Other Financial Assets - - 1,495 1,495 - Shares in Other Entities 373 - 1,300 1,673

Total Financial Assets 49,614 - 9,650 59,264

2011 Financial Assets Cash and Cash Equivalents 16,245 - - 16,245 Receivables - Trade Debtors - - 5,951 5,951 - Other Receivables (i) 14 - 42 56 Other Financial Assets - Term Deposit 15,000 - - 15,000 - Other Financial Assets - - 5,995 5,995 - Shares in Other Entities 9 - 1,442 1,451

Total Financial Assets 31,268 - 13,430 44,698

(i) The total amounts disclose here excludes statutory amounts (eg; amounts owing from Victorian Government and GST input tax credit recoverable).

62 Ballarat Health Services Notes to and forming part of the fi nancial statements for the year ended 30 June 2012.

Ageing analysis of fi nancial assets as at 30 June

Consolidated Not Past Past Due But Not Impaired Imparied Carrying Due and Not Less than 1 1 - 3 Months 3 Months - 1 1 - 5 Years Financial Amount Imparied Month Year Assets $000 $000 $000 $000 $000 $000 $000

2012 Financial Assets Cash and Cash Equivalents 16,083 16,083 - - - - - Receivables 6,855 5,592 806 401 56 - - Other Financial Assets 35,968 35,466 - - - - 502 58,906 57,142 806 401 56 - 502

2011 Financial Assets Cash and Cash Equivalents 16,245 16,245 - - - - - Receivables 5,951 4,208 1,154 190 399 - - Other Financial Assets 22,446 21,903 - - - - 543 44,642 42,356 1,154 190 399 - 543

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

(c) Liquidity Risk Liquidity risk is the risk that Ballarat Health Services would be unable to meet its fi nancial obligations as and when they fall due. Ballarat Health Services maximum exposure to liquidity risk is the carrying amounts of fi nancial liabilities as disclosed in the face of the balance sheet. Ballarat Health Services manages its fi nancial instruments so as to minimise liquidity risk. This is achieved through a combination of daily cash fl ow forecasting and appropriate budget setting and monitoring.

Maturity analysis of fi nancial liabilities as at 30 June

Maturity Dates Carrying Contractual Amount Cash Flows Less than 1 1 - 3 Months 3 Months - 1 1 - 5 Years Month Year $000 $000 $000 $000 $000 $000

2012 Financial Liabilities Creditors 21,070 21,070 21,070 - - - Accommodation Bonds 17,171 17,171 389 993 3,540 12,250 Monies Held in Trust 1,751 1,751 521 666 564 - Other Liabilities 168 168 - - 168 -

40,160 40,160 21,980 1,659 4,272 12,250

2011 Financial Liabilities Creditors 18,579 18,579 18,579 - - - Accommodation Bonds 18,980 18,980 389 994 3,544 14,053 Monies Held in Trust 1,206 1,206 - 99 1,107 - Other Liabilities 205 205 - - 205 -

38,970 38,970 18,968 1,093 4,856 14,053

www.bhs.org.au 63 Notes to and forming part of the fi nancial statements for the year ended 30 June 2012.

(d) Market Risk Ballarat Health Services exposures to market risk are primarily through interest rate risk with only insignifi cant 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 Ballarat Health Services is exposed to insignifi cant 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.

Other Price Risk Ballarat Health Services is not subject to price risk.

Interest Rate Exposure of Financial Assets and Liabilities as at 30 June

Weight Average Interest Rate Exposure Carrying Effective Interest Amount Fixed Interest Variable Interest Non Interest Rate (%) Rate Rate Bearing $000 $000 $000 $000

2012 Financial Assets Cash and Cash Equivalents 3.1% 16,083 - 16,083 - Receivables (i) 0% 6,855 - - 6,855 Other Financial Assets 4.8% 35,968 32,800 2,462 706

- 58,906 32,800 18,545 7,561

2012 Financial Liabilities Creditors (i) 0% 21,070 - - 21,070 Accommodation Bonds 5.0% 17,171 17,171 - - Monies Held in Trust 0% 1,751 1,751 - - Other Liabilities 0% 168 168 - -

- 40,160 19,090 - 21,070

2011 Financial Assets Cash and Cash Equivalents 4.7% 16,245 - 16,245 - Receivables (i) 0% 5,951 - - 5,951 Other Financial Assets 5.3% 22,446 15,000 6,004 1,442

- 44,642 15,000 22,249 7,393

2011 Financial Liabilities Creditors (i) 0% 18,579 - - 18,579 Accommodation Bonds 5.0% 18,980 18,980 - - Monies Held in Trust 0% 1,206 1,206 - - Other Liabilities 0% 205 205 - -

- 38,970 20,391 - 18,579

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

64 Ballarat Health Services Notes to and forming part of the fi nancial statements for the year ended 30 June 2012.

(d) Market Risk (continued) Sensitivity Disclosure Analysis Taking into account past performance, future expectations, economic forecasts, and management’s knowledge and experience of the fi nancial markets, Ballarat Health Services believe the following movements are ‘reasonably possible’ over the next 12 months (Base rates are sourced from the Reserve Bank of Australia) -- A parallel shift of +1.25% and -1.25% in infl ation rate from year-end rates of 2%. The following table discloses the impact on net operating result and equity for each category of fi nancial instrument held by Ballarat Health Services at year end as presented to key management personnel, if changes in the relevant risk occur.

Interest Rate Exposure of Financial Assets and Liabilities as at 30 June

Interest Rate Risk Carrying - 1.25% + 1.25% Amount Profi t Equity Profi t Equity $000 $000 $000 $000 $000

2012 Financial Assets Cash and Cash Equivalents 16,083 (201) (201) 201 201 Other Financial Assets 35,968 (450) (450) 450 450

Financial Liabilities Accommodation Bonds 17,171 (215) (215) 215 215 Monies Held In Trust 1,751 (22) (22) 22 22 Other Liabilities 168 (2) (2) 2 2

Interest Rate Risk Carrying - .5% + 1% Amount Profi t Equity Profi t Equity $000 $000 $000 $000 $000

2012 Financial Assets Cash and Cash Equivalents 16,245 (81) (81) 162 162 Other Financial Assets 22,446 (112) (112) 224 224

Financial Liabilities Accommodation Bonds 18,980 (95) (95) 190 190 Monies Held In Trust 1,206 (6) (6) 12 12 Other Liabilities 205 (1) (1) 2 2

www.bhs.org.au 65 Notes to and forming part of the fi nancial statements for the year ended 30 June 2012.

(e) Fair Value The fair values and net fair values of fi nancial instrument assets and liabilities are determined as follows: Level One - the fair value of fi nancial instrument assets and liabilities with standard terms and conditions and traded in active liquid markets are determined with reference to quoted market prices; and Level Two - the fair value is determined using inputs other than quoted prices that are observable for the fi nancial asset or liability, either directly or indirectly; and Level Three - the fair value of other fi nancial instrument assets and liabilities is determined in accordance with generally accepted pricing models based on discounted cash fl ow analysis using unobservable market inputs.

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

The following tables show that the fair values of most of the contractual fi nancial assets and liabilities are the same as the carrying amounts.

Comparison between carrying amount and fair value

Carrying Fair Value Carrying Fair Value Amount 2012 Amount 2011 2012 2011 $000 $000 $000 $000

Financial Assets Cash and cash equivalents 16,083 16,083 16,245 16,245 Receivables (i) 6,855 6,855 5,951 5,951 Available for Sale 35,968 35,968 22,446 22,446

Total Financial Assets 58,906 58,906 44,642 44,642

Financial Liabilities Payables 21,070 21,070 18,579 18,579 Accommodation Bonds 17,171 17,171 18,980 18,980 Monies Held in Trust 1,751 1,751 1,206 1,206 Other Liabilities 168 168 205 205

Total Financial Liabilities 40,160 40,160 38,970 38,970

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

Financial assets measured at fair value Fair value measurement at end of Carrying Amount reporting period using: as at June 30 Level 1 Level 2 Level 3 $000 $000 $000 $000

2012 Financial Assets at fair value through Profi t & Loss Available for sale fi nancial assets 35,968 34,973 995 -

Total Financial Assets 35,968 34,973 995 -

2011 Financial Assets at fair value through Profi t & Loss Available for sale fi nancial assets 22,446 20,591 1,855 -

Total Financial Assets 22,446 20,591 1,855 -

66 Ballarat Health Services Notes to and forming part of the fi nancial statements for the year ended 30 June 2012.

Note 17: Contingent Liabilities

2012 2011 $000 $000

Contingent Liabilities Quantifi able Legal Proceedings and Disputes - 114

Total Quantifi able Liabilities - 114

Note 18: Commitments

2012 2011 $000 $000

Capital Expenditure Commitments Land and Buildings 41,240 80,957 Medical Equipment 7,968 1,951 Computer 1,643 258 Plant and Equipment 296 403

Total 50,968 83,569

Not later than 1 year 50,968 63,747 Later than 1 year and not later than 5 years - 19,822 50,968 83,569

Operating Expenditure Commitments Plant and Equipment 28 39 Computer 70 484 Medical Equipment 335 6 Other 1,681 1,742

Total 2,113 2,271

Not later than 1 year 2,099 2,247 Later than 1 year and not later than 5 years 15 24 2,113 2,271

Operating Expenditure Commitments Property 1,298 1,549 Medical Equipment 54 270 IT Equipment 238 -

Total 1,590 1,819

Non Cancellable Not later than 1 year 391 472 Later than 1 year and not later than 5 years 922 901 Later than 5 years 277 446

Total 1,590 1,819

Total Commitments for expenditure (inclusive of GST) 54,671 87,659 Less GST recoverable from the Australian Tax Offi ce 5,069 8,571

Total Commitments for expenditure (exclusive of GST) 49,602 79,088

All amounts shown in the commitments note are nominal amounts inclusive of GST. Capital commitments of $40,151,600 are fully funded by DH.

www.bhs.org.au 67 Notes to and forming part of the fi nancial statements for the year ended 30 June 2012.

Note 19: Segment Reporting

Acute Acute Business Business RAC RAC Aged Aged Mental Mental Total Total Care Care Units Units Care Care Health Health 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

Revenue External Segment Revenue 179,509 166,866 120,047 49,404 33,080 33,255 8,108 26,008 30,111 28,998 370,856 304,531 Total Revenue 179,509 166,866 120,047 49,404 33,080 33,255 8,108 26,008 30,111 28,998 370,856 304,531

Expenses External Segment Expenses 194,028 182,230 37,914 34,423 42,181 40,604 50,951 27,353 31,629 29,171 356,704 313,781 Total Expenses 194,028 182,230 37,914 34,423 42,181 40,604 50,951 27,353 31,629 29,171 356,704 313,781

Net Result from Ordinary Activities (14,519) (15,364) 82,133 14,981 (9,102) (7,349) (42,843) (1,345) (1,518) (173) (14,152) (9,250)

Write Off on Investments - (505) ------(505) Interest Expense - - - - (72) (69) - - - - (72) (69) Interest Income - 724 1,612 301 834 656 - 32 - 126 2,446 1,839 Share of Net Result of Associates & Joint Ventures using Equity Model (8) (70) (2) (32) (2) (29) (1) (15) (2) (23) (15) (169)

Net Result for Year (14,527) (15,216) 83,744 15,250 (8,342) (6,790) (42,844) (1,328) (1,520) (70) 16,511 (8,155)

Other Information Segment Assets 96,515 139,959 139,698 36,577 47,903 54,716 32,741 31,051 15,132 23,023 331,989 285,326

Total Assets 96,515 139,959 139,698 36,577 47,903 54,716 32,741 31,051 15,132 23,023 331,989 285,326

Segment Liabilities 22,908 29,312 30,145 11,215 28,471 30,736 9,399 8,473 7,091 7,808 98,014 87,544

Total Liabilities 22,908 29,312 30,145 11,215 28,471 30,736 9,399 8,473 7,091 7,808 98,014 87,544

Investments in associates and joint venture partnership 938 1,024 60 69 54 63 28 32 43 50 1,123 1,238

Acquisition of property, plant and equipment 15,448 9,686 6,260 2,258 7,706 4,572 5,267 2,876 2,434 1,556 37,115 20,949

Depreciation and amortisation expense 10,436 11,710 5,106 3,152 5,206 5,776 3,558 3,707 1,644 1,869 25,950 26,214

68 Ballarat Health Services Notes to and forming part of the fi nancial statements for the year ended 30 June 2012.

Note 20: Jointly Controlled Operations and Assets

Ballarat Health Services has an interest in two jointly controlled Operations and Assets. The fi rst jointly controlled Operation being Ballarat - Austin Radiotherapy Oncology Centre and the second jointly controlled Asset being Grampians Rural Health Alliance. Details of both operations are listed as follows.

Ballarat - Austin Radiotherapy Oncology Centre

The investment was used for the construction of the Radiation Oncology Centre, for which Ballarat Health Service has an entitlement to receive a share of property rental under a 20 year co-operation agreement to recoup its investment.

No further amounts are receivable other than lease payments in respect of the investment. Ballarat Health Service is required to meet its share of the costs of maintaining the building over the term of the agreement. Lease payments received are allocated between the repayment of capital and rental income. The allocation of capital repaid is made so as to amortise the cost of the investment over the 20 year lease term. The carrying amount of the investment is as follows;

2012 2011 $000 $000

Opening Balance 757 805 Repayments (100) (100) Interest 49 52

Capital Repaid (51) (48)

Closing Balance 706 757

Ownership Interest 47.67% 47.67%

Ballarat Health Services share of entitlement to lease receivables under the terms of the co-operation agreement are as follows;

2012 2011 $000 $000

Less than 1 year 100 100 Greater than 1 and less than 5 years 400 400 Greater than 5 years 206 257

706 757

Grampians Rural Health Alliance

In June 2008, the Department of Health issued circular number 17/2008, which outlines government requirements for the operation of rural health information and communication technology (ICT) alliances. The policy outlines the accepted governance model for the operation of the ICT alliances.

The policy requires public hospitals, public health services and multipurpose services which are declared or established under the Health Services Act 1988, to enter into the alliance for the region in which they operate, in accordance with a Joint Venture Agreement (JVA). Consistent with this policy, the Grampians Rural Health Alliance came into effect on 9th of December 2008.

2012 2011 $000 $000

Revenue 969 803 Expenses (1,033) (1,024)

Net Result (64) (221)

Assets 585 686 Liabilities 168 205

Net Assets 417 481

Equity 417 481

Ownership Interest 22.24% 23.85%

www.bhs.org.au 69 Notes to and forming part of the fi nancial statements for the year ended 30 June 2012.

Note 21: Responsible Person Related 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 Minister: The Honourable David Davis, MLC, Minister for Health and Ageing 1/07/2011 - 30/06/2012 The Honourable Mary Woodridge, MLA, Minister for Mental Health 1/07/2011 - 30/06/2012

Governing Board: Mr A Faull 1/07/2011 - 30/06/2012 Mr C Coltman 1/07/2011 - 30/06/2012 Mr N Coxall 1/07/2011 - 30/06/2012 Ms V Fenelon 1/07/2011 - 30/06/2012 Mr P Jans 1/07/2011 - 30/06/2012 Mrs S McKenzie 1/07/2011 - 30/06/2012 Mr M Patterson 1/07/2011 - 30/06/2012 Ms R Reeves 1/07/2011 - 30/06/2012

The following Board members have commenced from July 1 2012: Mr M Harris 1/07/2012 Mr J Selkirk 1/07/2012

Accountable Offi cer Mr A R Rowe - Chief Executive Offi cer 1/07/2011 - 30/06/2012

Remuneration of Responsible Persons

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

2012 2011 No. No.

Income Band $10,000 - $19,999 7 8 $30,000 - $39,999 1 1 $380,000 - $389,999 1 - $390,000 - $399,999 - 1

Total Numbers 9 10

Total remuneration received or due and receivable by Responsible Persons from the reporting 554,575 576,074 entity amounted to:

Amounts relating to the Responsible Ministers are reported in the fi nancial statements of the Department of Premier and Cabinet.

2012 2011 $000 $000

Other Transactions of Responsible Persons and their Related Parties Mr M Patterson has an association with North Ballarat Sports Club who provided services on commercial terms and conditions. The total value of transactions with this entity was; 4 4 Ms R Reeves has an association with Ballarat Community Health Centre, who provided services on commercial terms and conditions. The total value of transactions with this entity was; - 1

70 Ballarat Health Services Notes to and forming part of the fi nancial statements for the year ended 30 June 2012.

Note 21: Responsible Person Related Disclosures (continued)

Executive Offi cers’ Remuneration

The numbers of executive offi cers, other than Ministers and Accountable Offi cers, and their total remuneration during the reporting period are shown in the fi rst two columns in the table below in their relevant income bands. The base remuneration of executive offi cers is shown in the third and fourth columns, Base remuneration is exclusive of bonus payments, long-service leave payments, redundancy payments and retirement benefi ts.

Total Remuneration Base Remuneration 2012 2011 2012 2011

$0 - $99,999 - 6 - 6 $140,000 - $149,999 - - - 1 $150,000 - $159,999 - - 5 - $160,000 - $169,999 1 2 1 1 $170,000 - $179,999 1 - - 2 $180,000 - $189,999 1 3 1 - $190,000 - $199,999 2 2 - 2 $200,000 - $209,999 2 - - 1 $250,000 - $259,999 - - 1 - $280,000 - $289,999 1 - - - $310,000 - $319,999 - - 1 - $340,000 - $349,999 1 - - -

Total 9 13 9 13

Total Annualised Employee Equivalent (AEE) 9 9.1 9 9.1 Total Remuneration 1,961,456 1,572,479 1,694,530 1,366,570

All payments made to Executives are governed by the Government Sector Executive Remuneration Panel. The changes from the previous year refl ect GSERP approved pay increases, as well as the payment of accumulated long service leave for a number of Executives.

Note 22: Events Occurring after the Balance Sheet Date

There were no events occuring after reporting date which required additional information to be disclosed.

www.bhs.org.au 71 2011-2012 REPORT ANNUAL

Ballarat Health Services Annual REPORT 2011-2012 Centre Services Hospital .org.au Sturt Street Base bhs Elizabeth Fax: (03) 5320 4828 Fax: (03) 5320 3860 Fax: (03) 5320 4028 Psychiatric 102 Ascot Street South 102 Ascot Street Phone: (03) 5320 4000 Phone: (03) 5320 3700 Phone: (03) 5320 4100 Drummond Street North Drummond Street www. PO Box 577 Ballarat 3353 PO Box 199 Ballarat 3353 PO Box 577 Ballarat 3353 Queen