annual report 2011-12 uif&yusbpsejobsz · melbourne health annual report 2011-12 / 3 the melbourne...

respectcaring

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Passion forCaring - Achievingthe ExtraordinaryAnnual Report 2011-12

Melbourne Health

OuR VisiOnPAssiOn fOR CARing AChieVing the extRAORdinARy

OuR MissiOntO PROVide wORld-ClAss heAlth CARe fOR OuR COMMunity. we will eMbRACe disCOVeRy And leARning, build COllAbORAtiVe RelAtiOnshiPs And engAge OuR PAtients in theiR CARe.

OuR VAluesundeRPinning OuR behAViOuR And PRACtiCe, infORMing All thAt we dO

Respect fOR the dignity beliefs And Abilities Of eVeRy indiViduAl

Caring And COMPAssiOn

Unity As A teAM And in eMbRACing OuR COMMunities

Discovery thROugh PAssiOn fOR innOVAtiOn

Integrity by being OPen, hOnest And fAiR

OuR gOAlssuPPORting us tO AChieVe, guiding OuR diReCtiOn

Develop OuR wORkfORCe

Improve the quAlity And sAfety Of OuR seRViCes

Develop And enCOuRAge stRAtegiC RelAtiOnshiPs

Foster A CultuRe Of ReseARCh And innOVAtiOn

Build A sustAinAble ORgAnisAtiOn

Front Cover: Volunteer Gwen Hynes (left), physiotherapist Uyen Phan, nurse Blair Scurr and intern Celestine Wong at The Royal Melbourne Hospital.

Photo: The Royal Melbourne Hospital Medical Illustration Department

Melbourne Health Annual Report 2011-12 / 1

02 CHairMan and CHief exeCutives report04 Melbourne HealtH at a glanCe

Our clinical services

Financial summary

Organisational structure

08 iMproving tHe quality and safety of our serviCes10 developing our workforCe12 developing and enCouraging strategiC relationsHips14 fostering a Culture of researCH and innovation16 building a sustainable organisation18 CoMMunity support20 board of direCtors22 appendiCes

Statement of Priorities

General information

Disclosure index

29 finanCial stateMents

Contents

2 / Melbourne Health Annual Report 2011-12

It has been a remarkable year at Melbourne Health, with extraordinary achievements against a backdrop of change and challenge; and one that demonstrated the strength of our culture and commitment of staff to our values and patients.

In a year influenced by enterprise bargaining agreement negotiations, major precinct projects, continuing demand for services, and the complexities surrounding the forthcoming National Health and Hospitals Reform program, we met our budget forecast and received an excellent Accreditation result.

AccreditationOur staff deserve to be proud of our organisation-wide Accreditation survey by the Australian Council Healthcare Standards last November. Melbourne Health was awarded 27 Excellent Achievement (EA) ratings against 47 criterion up from seven EAs in 2007, validating our staffs innovation, imagination and preparedness to question the norm in order to find better solutions for our patients.

Strategic prioritiesAs part of our Strategic Plan 2010-15 and our annual Business Plan, a number of action and strategic plans were endorsed during the year, including:

> Information Management and Technology Strategic Directions 2011-15, addressing collaborative research capability and improving clinical outcomes, sharing clinical information, patient flow and capability and efficiencies from all systems. This document also reflects the developing partnership we have with the Victorian Comprehensive Cancer Centre and our precinct partners

> Education Strategy 2011-15, articulating a new vision for education at Melbourne Health: to embed a learning culture that ignites discovery to make a difference every day

> Think Green Strategy, outlining our vision to be an industry leader in environmental sustainability. While we have been on this path for many years, this strategy and the accompanying action plan will help position us as a leader within the health care sector.

Parkville PrecinctMelbourne Health is a leading partner in a number of significant projects within the Parkville Precinct. Construction of the $1 billion Victorian Comprehensive Cancer Centre (VCCC) is well underway and our clinicians are actively engaging with their VCCC colleagues to work through the complexity of integrating services across different entities to ensure a better patient experience for all those who seek treatment at the centre.

We have continued to strengthen our relationships with universities and teaching institutions in regard to our education and training. We have worked to bring our medical and nursing education units closer to their relevant workforce units.

We are extremely proud to have been chosen as the home of HealthWorkforce Australia, providing a new education precinct for a range of disciplines. Agreements with agencies have been finalised, and construction of the facility, funded by the Commonwealth Government, is expected to be completed later in 2012.

Construction works on the site earmarked for the Peter Doherty Institute began in August 2011 and will continue until late 2013. Melbourne Healths Victorian Infectious Diseases Service, and Victorian Infectious Diseases Reference Laboratory will join Melbourne University and the Victorian Life Sciences Computation Initiative in the new facility. This world class facility will be home to more than 700 scientists, researchers and staff and will provide teaching and training opportunities for future generations of students, clinicians and researchers.

Capital projects We would like to acknowledge respective State and Federal Ministers and government departments for their support during the year. These include the construction of a $10 million Allied Health facility; our fourth Prevention and Recovery Care unit for mental health clients; and the establishment of a Melbourne Brain Centre campus at The Royal Melbourne Hospital City Campus.

Chairman and Chief Executives Report


The Melbourne Brain Centre is one of the biggest brain research centres in the Southern Hemisphere and among the top neuroscience institutes in the world.

There has also been significant enabling works carried out at The Royal Melbourne Hospital City Campus as part of the VCCC construction.

Industrial relationsEnterprise agreements covering about 80 per cent of staff were renegotiated during the year. We are proud our staff, regardless of their role, held true to the organisations values and worked together respectfully to ensure patient care and safety remained everyones priority during this period. Melbourne Health lost 49.3 days (1,816 hours) due to industrial disputation, primarily involving protected and unprotected action taken by nursing staff in February and March. Settlements for general nursing and health professionals, health and allied services, management and administrative staff were reached and have been submitted for approval to Fair Work Australia and to employee vote respectively. Negotiations continue towards finalising EBAs for psychiatric services, medical scientists, pharmacists and psychologists.

AccessThe National Health and Hospitals Reform will continue to be a major priority in 2012/13 for all Victorian health services, as the funding implications for the sector evolve. There will be the opportunity to use health reform targets, in addition to our existing improvement programs, to drive clinical service redesign and remove patient flow obstacles, develop stronger links with primary and secondary care providers and better understand our population and their needs.

As always, our focus is on delivering the best service for our patients in the most cost effective and efficient manner. In this context, much work has begun to ensure our vision passion for caring achieving the extraordinary truly reflects a person-centred care approach across our organisation. Involving our patients in their healthcare and improving their experience is at the core of our decision-making.

Board and ExecutiveWe would like to covey our gratitude to Ms Kate Redwood, who retired from the Board of Directors on 30 June. She is only the second board member to have served the full nine year tenure and has served with distinction. A passionate advocate for consumers, Ms Redwood has been a member of the Board Community Advisory Committee since her appointment and chair since 2007. This committee has grown and prospered under her leadership, and has provided valuable insight into community concerns and needs.

An enormous thank you, also, to A/Prof Alex Cockram, who acted as Chief Executive following the resignation of Ms Linda Sorrell in August 2011. Alex ensured a smooth hand over of the leadership mantle with no loss of momentum or drive for Melbourne Health. She has retained our focus on the strategic goals and continued to act in accordance with the values during a very busy and challenging time for the organisation. On behalf of the organisation, the Board would like to pass on its appreciation to Alex.

Dr Gareth Goodier commenced in June 2012 as Melbourne Healths Chief Executive. Dr Goodier brings a wealth of experience in health sector senior leadership in both the UK and Australian health care systems.

Community support We would like to thank our wonderful 300-plus hospital volunteers for their continued dedication and support. They are amazing people who capture the life of the organisation, providing comfort and companionship to our patients, their carers and families across 19 different programs. They inspire us all to do better and try harder.

Finally, it is our pleasure to present the following Report of Operations in accordance with the Financial Management Act 1994.

Mr robert doyle dr gareth goodier Chairman Chief Executive

Mr Robert Doyle Dr Gareth Goodier


Melbourne Healthat a glance

Serving a population base of more than 1 million Melburnians, as well as regional, rural Victorians and interstate patients, our world-class reputation has its beginnings in The Royal Melbourne Hospital Victorias first public hospital established in 1848 to answer the need for public health services for a rapidly growing town.

Today, we are a partner in the internationally renowned Parkville Precinct, with all our services having vibrant research programs turning medical research into clinical outcomes for the public.

Melbourne Health comprises The Royal Melbourne Hospital, NorthWestern Mental Health and the Victorian Infectious Diseases Reference Laboratory.

100,998episodes of Care provided to patients. tHis CoMpares witH 98,095 episodes last year

32,266eleCtive patients adMitted

7749eleCtive surgeries perforMed

456,456outpatient appointMents Made. of tHese, 283,648 were for Mental HealtH serviCes

988,000Meals prepared for our patients

71,075tHe total nuMber of adMitted and non adMitted eMergenCy departMent patients

3050tHe royal Melbourne Hospitals own postCode, different froM tHe parkville suburb postCode

Melbourne Health is one of Victorias leading public healthcare services, with a strong tradition in striving to provide the best possible care for our patients, excellent teaching and training for staff and future health professionals, and a commitment to medical research to improve outcomes for all.


Our Clinical Services

surgery and perioperative

Addiction Medicine Anaesthetics Ear, Nose & Throat Gastroenterology General Surgery Oral & Maxillofacial Orthopaedics Pain Management Perioperative Plastics Trauma

Cancer and infection Medicine

Bone Marrow Transplant Colorectal Medicine Haematology Medical Oncology Radiation Oncology Respiratory Medicine & Sleep Disorders Palliative Care Tumour streams Urology Victorian Infectious Diseases Service

Cardiovascular

Cardiology Cardiac Surgery Thoracic Surgery Vascular Surgery

shared services

Emergency Imaging Intensive Care

Medicine and Community Care

Aged Care Aged Care Assessment Service Assessment & Planning Unit Community Support Services General Medicine GP Liaison Hospital Admission Risk Program Hospital In The Home In Reach Medihotel Residential Care Sub Acute Ambutory Care Service Transition Care Program

neurosciences and Continuing Care

Dermatology Immunology Neurology Neurosurgery Ophthalmology Rehabilitation Rheumatology

northwestern Mental Health

Community Care Crisis Assessment & Treatment Eating Disorders Inpatient Treatment Neuropsychiatry Rehabilitation Residential Care Substance Use & Mental Health Treatment

renal and endocrinology

Bone & Mineral Service Diabetes & Endocrinology Diabetes Foot Service Dialysis Nephrology Renal Surgery Renal Transplant

allied Health

Audiology Music Therapy Nutrition Occupational Therapy Pastoral Care Physiotherapy Podiatry Prosthetics Psychology Social Work Speech Pathology Transcultural & Interpreting Service

university of Melbourne appointments

James Stewart Professor of Medicine Prof Terence OBrien

James Stewart Professor of Surgery Prof Andrew Kaye

Cato Professor of Psychiatry Prof Ian Everall

Professor of Nursing Translational Research Prof Nick Santamaria

Edgar Rouse Professor of Radiology Prof Trish Desmond

Chair of Epidemiology, Biostatistics and Health Services Research Prof Danny Liew

Chair Translational Neuroscience Prof Stephen Davis

Chair of Adult Clinical Genetics Prof Ingrid Winship


Financial summary

The key financial performance measure monitored by Melbourne Health management and the Department of Health is the Net Result Before Capital and Specific Items. In 2011-12 Melbourne Health achieved a surplus result of $614 thousand which compared favourably by $3.5 million with the budgeted target. The 2011-12 result was also an improvement by $3 million from 2010-11. This was especially pleasing given the result was achieved with continued growth in demand for patient services and treating record patient numbers across Melbourne Health. The result was largely attributable to efficiencies achieved through initiatives introduced in recent years.

Melbourne Health achieved a deficit Net Result of $22.32 million in 2011-12 compared with a deficit Net Result of $33.97 million in 2010-11.

The Department of Health provided Land valued at $3.1 million, free of charge during the year. The reason for the increased deficit from the Net Result Before Capital and Specific Items to the Net Result is due mainly to the additional depreciation expense incurred as a result of the asset revaluation undertaken in 2008-09.

Total revenue from all services for the 2011-12 financial year totalled $907 million which is an increase of $52 million or 6.1 per cent compared with the previous year. Total expenditure was $933 million which is an increase of $45 million or 5 per cent. Melbourne Healths cash reserves as at 30 June 2012 were $46.1 million compared with $34.7 million as at 30 June 2011.

2012$000

2011$000

2010$000

2009$000

2008$000

Total Revenue 907,160 854,967 799,908 791,920 723,016

Total Expenses 933,749 889,138 835,874 769,641 704,537

Loss Attributable to Minority Interest 2,813 112 197 75 422

Net Fair Value Gains/(Losses) on Available for Sale Financial Investments (620) 549 578 - -

Changes in Property, Plant & Equipment Asset Revaluation Surplus 18,182 (214) (424) - -

Comprehensive Result (11,840) (33,948) (36,009) 22,204 18,057

Retained Surplus / (Deficit) (134,214) (99,475) (61,338) (23,405) (42,531)

Total Assets 639,827 615,775 635,280 662,204 618,926

Total Liabilities 245,077 214,042 199,592 190,500 164,760

Net Assets 394,750 401,733 435,688 471,704 454,166

Total Equity 394,750 401,733 435,688 471,704 454,166


Organisational structure at 30 June 2012

executive director Clinical governance & Medical services

dr peter bradford

ClinicalEpidemiology, Biostatistics & Health Services Research

HealthInformation&PerformanceMedicalGovernance

Pathology Quality,PatientSafety & Consumer Liaison

Strategy&Planning VICNISS VIDRL

executive director Communications & Community relations

Ms sharon Mcgowan

Archives CommunityEngagement

PublicAffairs&Media VolunteerService

TheRoyalMelbourne Hospital Foundation

executive director Corporate and information services

Mrs sally Campbell

BusinessDevelopment CapitalWorks CommercialOperations* ContractManagement

FacilitiesManagement HealthSciencesLibrary InformationTechnology

InfrastructureServices LegalCounsel Retail

executive director finance & logistics

Mr Colin Holland

BusinessServices CommercialOperations*

FinanceServices RemunerationServices

RevenueServices Supply&Logistics

executive director Human resources & workplace development

Ms Christine fitzherbert

EmployeeRelations EmployeeServices& Remuneration OccupationalHealth&Wellbeing

OrganisationalDevelopment StaffSupportServices

WorkforcePlanning & Recruitment

executive director northwestern Mental Health

a/prof alex Cockram#

InnerWestAMHS^ MidWestAMHS

NorthernAMHS NorthWestAMHS

AgedPersonsMHP ORYGENYouthHealth

executive director nursing services & allied Health

a/prof denise Heinjus

AlliedHealth ClinicalPolicies&Procedures EmergencyManagement Planning

NurseBank NurseEducation NursingWorkforceUnit

ProfessorofNursing Translational Research ProfessionalNursing

executive director research

prof ingrid winship

ResearchAdvisoryCouncil Research&EthicsCommittees

ResearchFunding ResearchGovernance

ResearchGrants ResearchStaff

executive director the royal Melbourne Hospital

Ms diane gill

Access BreastScreen Cancer&InfectionMedicine Cardiovascular EmergencyServices

Imaging IntensiveCare Medicine&CommunityCare Neurosciences&ContinuingCare

Outpatients Pharmacy Renal&Endocrinology Surgery&Perioperative

#A/Prof Alex Cockram was Acting Chief Executive from August 2011 to 16 June 2012. Dr Peter Burnett was Acting Executive Director NorthWestern Mental Health for the same period* Shared resource ^ Area Mental Health Service

Melbourne Health Board

Internal Auditors

Chief Executive Dr Gareth Goodier

Director Business Improvement Julia Harper


Highlights> Productive Ward program boosts direct patient care times

> Greater role of consumers in patient safety and service design

Improving the quality and safety of our services

InpreparationforthenewNationalSafetyandQualityHealth Service Standards, we have restructured our Patient Safety Committee to better reflect the new standards. This committee will have oversight of the nine clinical related standards, while the new Partnering with Consumers and Governance standards will be overseenbytheBoardQualityandSafetyCommittee.

Person centred careThe emerging role of consumers in our services will continue to be a focus as we, along with all Australian health services, adopt new national quality standards. The standards emphasise consumer participation, either in provision of information or in decision making processes. Our Consumer Register is being expanded in response to increasing requests for consumer involvement in quality and safety activities. In addition, resources for staff, including consumer participation guidelines, a checklist for recruiting consumers on committees and a Staff and Consumer Engagement Framework have been implemented to support consumer participation.

A key factor to achieving compliance with the National Standards is to ensure that person centred practice is an embedded philosophy within the organisation. Given the alignment of the Standards with the Melbourne Health strategic goal to Develop a culture of person centred care, a committee has been established to progress a cultural change program and related activities that will ensure person centred practice is successfully developed across the organisation.

The cultural change program will include a Board to Bedside conversation about person-centred care which is designed to inspire a shared vision and understanding of the philosophy. In addition, the working group will develop a set of performance measures for person centred care and contribute to a staff education strategy.

TheQualityandSafetyCommitteenowincludes filmed consumer stories in its monthly meetings, providing a direct perspective of the consumer experience and enhancing our understanding of where and how improvements can be made.

Productive ward and experience co-design projectsAs part of its 2010-15 strategic services directions, NorthWestern Mental Health (NWMH) completed the implementation of experience based co-design (EBCD) framework and toolkit for its sites and services. EBCD is based on a model developed and used in the United Kingdoms National Health Service (NHS) that enables consumers, carers and staff or other service users to work collaboratively to improve services or care pathways. The toolkit includes a step-by-step guide for NWMH staff to improving consumer experience of health care. It includes downloadable resources such as template forms, letters, presentations and other materials to help plan and carry out an EBCD event.

The Productive Ward project is another NHS initiative aimed at improving the patient experience, with Melbourne Health being one of the first major Victorian metropolitan health services to adopt it on a large scale. The program was trialled in NWMH before being progressively rolled out at The Royal Melbourne Hospital. Through improvements to the ward environment and processes, staff are finding 10 to 20 per cent more time to directly care for patients, thereby improving safety, quality and efficiency.

For example, our Renal Ward has increased its direct patient care time by 44 minutes per shift and reduced the time staff spent walking and looking for items by 65 minutes over a shift through reorganising equipment locations and introducing tracking systems for common equipment; Neurology staff have reduced the time it takes to complete clinical handover by 20 minutes, by streamlining the process and developing guidelines to ensure all staff receive consistent information; and the Bone Marrow Transplant Ward improved processes for calculating fluid balances, and developed tools to improve accuracy and problem solving for staff.


Hospital Medical Officer redesign programThe Hospital Medical Officer (HMO) redesign program is unique to Melbourne Health and has attracted interest from other health services due to the range of initiatives and outcomes it has delivered for better patient care. Improvements have been made to our processes including centralising the storage of electronic discharge summaries, standardising paging processes and our clinical handovers.

Discharge summaries are now stored in a single location and are accessible for viewing by all clinicians. This improves communication, access to patient information for admissions and outpatient appointments, and coding.

An electronic handover tool and handover guidelines developed as part of the HMO redesign program are being implemented across Melbourne Health, increasingourcompliancewiththeVictorianQualityCouncil guidelines.

The resources were developed after medical staff highlighted the absence of training for handover processes and protected time for handover for junior medical staff, who are often managing competing commitments. The electronic handover tool provides a template for the content of handover, including clinical information, jobs to be completed by covering doctors, and the ability to highlight if a patient is critical, deteriorating or has a limitation of medical treatment. Importantly, it provides a record of, and therefore accountability for, information handed between junior doctors.

Improving access for the hearing impairedImplementation of our Respecting Our Community Action Plan has continued, with initiatives to support the hearing impaired being one of the plans focus this year. Simple, but important, steps to improve service access to the hearing impaired have included booking Auslan interpreters for major events, the installation of Auslan signage across the Royal Melbourne, improved positioning of Auslan and interpreter symbols visibly placed on Melbourne Health websites and the offering of Auslan workshops for staff.

No consent, no transfusionProcedures around documenting consent for elective blood component transfusions were strengthened this year following auditing of our No Consent No Transfusion processes. The new procedure includes nursing staff checking consent as part of the pre-transfusion checking process and if consent is not clearly documented, the transfusion will not commence.

More information about our quality and safety initiatives can be found in our annual Quality of Care Report at www.mh.org.au/publications

Melbourne Health gives consumers many

opportunities to be involved in the work of the hospital,

and to be able to follow through with the things

we see and do to improve patient care. We are valued,

visible and respectful of each other.

Janney Wales,Consumer Advisory Committee member


Developing our workforce

Highlights> 982 new employees begin their careers at Melbourne Health

> 1400 staff utilise free Work Health checks

Workforce planningThe 20102011 Melbourne Health Workforce Action Plan was developed and implemented over the past 12 months. Initiatives included building internal workforce capability, having a high performance workforce, promoting and sustaining a vibrant and positive workforce culture, creating and sustaining effective work design and structures, and acquiring the desired workforce.

Melbourne Health offers a comprehensive range of training and development activities, with more than 1350 staff completing a training program during the year. The Chameleon Program, a leadership program delivered with Mt Eliza Business School, has had 113 managers participate since its inception, offering participants individual growth within the context of performance at Melbourne Health.

More than 400 staff undertook Communication and Service Excellence training, a new program introduced to further support our person centred care model. Developed in consultation with our Community Advisory Committee, managers and staff, the program explores strategies for developing positive relationships and techniques for handling difficult situations.

Other training and development opportunities include a mentoring program to build networks and share experiences, understanding how culture influences the workplace, understanding our values and performance management.

A human resources strategy for Melbourne Health- Victorian Comprehensive Cancer Centre (VCCC) was developed with the aim of maximising opportunities and to support our staff in achieving the VCCC vision for our community and patients. Further details of the strategys aims and objectives will be detailed in next years Annual Report.

We have also begun surveying new employees to better understand the needs of staff and to help us better shape recruitment and retention strategies. Information collected will tell us what attracted them to Melbourne Health, how well we manage and support new staff, and their intention to stay at Melbourne Health. This will be vital to shaping recruitment and retention strategies over the coming years.

RecruitmentThis year, 982 new employees joined Melbourne Health, with 736 attending our corporate orientation program. In addition to the corporate orientation, 47 new managers attended the Managers Corporate Induction program.

Overseas recruitment of health professionals is used to complement our workforce supply and capacity, although this year we saw a slight reduction in demand. Despite this, Melbourne Health remains an attractive employer with 77 new international recruits holding a 457 visa; raising our total 457 contingent to 67 Medical Officers, 39 Psychiatrists and 78 Nurses.

Melbourne Healths latest Code of Conduct was endorsed by the Board in April 2011, and all staff abide by these principles, along with the Victorian Public Service Values and Code of Conduct. In addition, 500 staff undertook Values and Behaviours training during the year.

Accrued leave projectAn integrated staff leave management project began in August 2010 to address excess annual leave, excess accrued days off and absenteeism. Through promoting a no leave no life message encouraging staff to organise leave plans with their managers, incorporating leave plans in the annual performance appraisal template, and identifying opportunities to plan leave around public holidays, 89 per cent of staff have taken their accrued annual leave for the past year. Melbourne Health presented its leave project and results at the 8th Australasian Redesigning Healthcare Summit in Brisbane in May.


Length of serviceIn 2011, 527 employees across Melbourne Health, The Royal Melbourne Hospital and NorthWestern Mental Health were recognised for 10, 20, 25, 30, 35, 40 and 45 years of continuous service in presentation ceremonies held across the organisation.

Occupational Health and Wellbeing An Occupational Health and Wellbeing Strategic Plan has been developed and implemented across Melbourne Health. Staff safety remained a focus, with a number of training and awareness initiatives conducted, including:

> e-learning modules for OHS for Managers and Bullying and Harassment

> Project to reduce workers compensation premium

> Research collaboration with La Trobe University to reduce the incidence of musculoskeletal disorders

> Revision of Management of Clinical Aggression Program to incorporate OHS obligations

> Participation in WorkSafe Victorias free WorkHealth Check program, with more than 1400 staff utilising the service to date

> An increase in the number of Peers available to support staff through our Peer Support Program.

I found this (training)session very relevant to the average day-to-day

working environment. It is very important to know that

there is support whenever we need it. It makes working

at Melbourne Health much more satisfactory.

Evie Boukouvalas,Melbourne Health Interpreter

250

200

150

100

50

0

0.35

0.3

0.25

0.2

0.15

0.1

0.05

0

2011/2012 2010/2011 2009/2010 2008/2009 2007/2008 2006/2007

Workcover Performance

Workcover Performance0.35

0.3

0.25

0.2

0.15

0.1

0.05

0

250

200

150

100

50

0

2006/2007 2007/2008 2008/2009 2009/2010 2010/2011 2011/2012

Number of minor claims

Number of standard claims

Claims per $million of remuneration

Claim cost per $million remuneration

Number of minor claims

Number of standard claims

Claims per$million of remuneration

Claim cost per $million remuneration

Melbourne Health Employees 2012

Labour category 2012 June

Current Month EFT

2012 June YTDEFT (average)

2011 June Current Month

EFT

2011 June YTD EFT (average)

Nursing 2353.05 2316.91 2274.52 2247.39

Administration and Clerical 1052.01 1014.21 1013.46 1006.89

Medical Support 721.39 758.08 814.13 814.05

Hotel and Allied Services 426.62 434.67 443.87 441.63

Medical 122.98 121.23 123.98 129.66

HMOs 593.16 608.62 600.49 589.67

Sessional Clinical 170.31 171.79 176.58 164.17

Allied Health (Ancillary staff) 557.99 547.21 538.95 534.45

Total 5997.50 5972.71 5986.00 5927.91


Highlights> Education precinct increases clinical placement

training opportunities

> Community partnerships enhance mental health services

Developing and encouraging strategic relationships

Parkville PrecinctPlenary Health was announced as the successful consortium to build the $1 billion new victorian Comprehensive Cancer Centre (vCCC), a joint venture between seven partners and Melbourne Health.

The VCCC is based on the principle that the more minds dedicated to working together, the faster we will find ways to reduce the impact of cancer in our community. The facility will house hundreds of researchers, from the partner organisations, as well as providing integrated treatment services for patients.

Melbourne Health, through The Royal Melbourne Hospital, is one of the largest providers of cancer services in Victoria, with around 40 per cent of hospital services related to cancer treatment. The hospital brings to the VCCC high quality cancer treatment programs, strong translational research and extensive surgical and medical expertise.

The VCCC will be physically linked to the Royal Melbourne via three link bridges. In addition, a new 42-bed intensive care unit serving the Royal Melbourne, Royal Womens and Peter MacCallum hospitals will be built within The Royal Melbourne Hospital, along with two new operating theatres, an iMRI facility and new haematology and medical oncology units.

In December, Melbourne Health and The University of Melbourne signed the Joint Venture agreement to establish the peter doherty institute. The Institute, to be located diagonally opposite the Royal Melbourne in Grattan Street, is to create a world-class centre combining research into infectious diseases and immunity with teaching excellence, reference laboratory diagnostic services and epidemiology and clinical services. Construction has commenced and will house our Victorian Infectious Diseases Reference Laboratory and Victorian Infectious Diseases Service teams.

HealthWorkforce Australia agreement Melbourne Health has signed an agreement with HealthWorkforce Australia (HWA) to build a new education precinct to be located at The Royal Melbourne Hospital. Set up by the Council of Australian Governments (COAG), HWA provides a national, co-ordinated approach to workforce planning, education and training. The primary purpose of this agreement is to build capacity for clinical placement training to meet the growing demand and to enhance the training experience.

As well as funding the construction of the precinct, HWA granted Melbourne Health and our partners funding for allocation of resources to ensure sustainable growth in the quality and quantity of clinical placements being provided.

The HWA funding initiative targets nursing and midwifery, and the following allied health disciplines: clinical nutrition, clinical psychology, neuropsychology, occupational therapy, physiotherapy, podiatry, social work and speech pathology. Joining us in this initiative are the Royal Womens Hospital, Merri Community Health, Doutta Galla Community Health, Inner North West Melbourne Medicare Local and Melbourne, La Trobe and Australian Catholic universities.

We have met our 2011 clinical placement growth targets, with 1742 students receiving clinical placements, resulting in an overall increase of 10,916 clinical placement days. The partnership is now working to meet 2012 and 2013 clinical placement targets and explore innovative models of clinical education to aid delivery of the significant 2013 growth targets. Construction of the precinct will be completed later in 2012.


Community Participation PlanThe Melbourne Health Community Participation Plan outlines Melbourne Healths approach to consumer, carer and community involvement across the organisation. The plan, which is reported quarterly to the Community Advisory Committee and annually to the Department of Health, focuses on increasing organisational capacity for consumers, carers and the community to become active partners in decision making at all levels of Melbourne Health including the individual care level, program/department level and organisational level.

Central Clinical Placement NetworkMelbourne Health has a key role in the Central Clinical Placement Network, one of six metropolitan and five rural Clinical Practice Networks (CPN), working closely with Doutta Galla Community Health, aged care services, general practitioners and other health providers in the education of health professionals. During the year, we received more than $120,000 funding for training programs in mental health and $1.4 million for the establishment of the central clinical simulation program and upgrade of our prosthetics and orthoptics student laboratory. We are also working closely with residential care providers to expand clinical placement opportunities.

CNP initiatives are overseen by the Victorian Clinical Practice Council, which comprises the chair of each CPN committee, representatives from the Council of Victorian Health Deans, the Senior Council of VET Providers, HealthWorkforce Australia and the Department of Health.

Psychiatric Disability Rehabilitation and Support ServicesPartnerships between mental health providers in the government sector and non-government organisation sector are increasingly important for meeting the needs of mental health consumers.

NorthWestern Mental Health (NWMH) has been working to develop our partnerships, particularly with the Psychiatric Disability Rehabilitation and Support Services (PDRSS) sector. In 2011, we formed the North and West Task Force to develop a shared clinical governance framework, and to share knowledge and learnings.

Each of our four adult mental health services has its own local alliance with PDRSS partners, and work together to improve pathways.

Community Mental Health planNorthWestern Mental Health has joined with 25 agencies and nine resident representatives to develop a community mental health promotion and prevention plan to improve the quality and extent good mental health can be experienced for people living in the Hume and Moreland local government areas.

The plans objective is to create more socially inclusive and connected communities. There are specific areas of focus for different strategies, and successful universal health approaches are combined with selected health promotion strategies to achieve positive community benefits.

The strength of the partnerships that have emerged has contributed towards many other initiatives. The challenge we continue to counteract is the fact that our society hears mental health and thinks mental illness. Our strategy is to provide examples of what people do when they are mentally healthy and educate all with the community, rather than to them.

Our location in the Parkville Precinct the epicentre of

Australian medical research - and our relationship with precinct partners delivers

enormous opportunities and outcomes for patient care

and treatments. Prof Ingrid Winship,

Executive Director Research


Highlights> More than 1000 clinical research projects running

at any given time

> 150-200 new research projects approved each year

> Research champion program established to support staff needing expert opinion

ACRF Centre for Translational ResearchOur capacity to improve the outcomes for people with leukaemia and other blood cancers was enhanced with the opening of a translational research facility at The Royal Melbourne Hospital in March. Supported by a $1 million Australian Cancer Research Foundation grant, the centre will speed cutting edge gene discoveries into better ways of detecting, treating and preventing these diseases.

Cancers of the blood are the third greatest cause of cancer death in Australia, and the Royal Melbourne sees more than 120 new leukaemia cases, and performs 80 bone marrow transplants each year. The Translational Research Centre will provide a seamless link between our clinical services and neighbouring research facilities, including the Walter and Eliza Hall Institute of Medical Research and the University of Melbourne.

Melbourne Brain CentreMelbourne Health and The Royal Melbourne Hospital strengthened its research ties with the Melbourne Brain Centre with the opening of the centres third campus at the hospital in August 2011.

The Melbourne Brain Centre is a partnership between the Florey Neurosciences Institute, University of Melbourne and the Mental Health Research Institute with The Royal Melbourne Hospital and Austin Health as clinical partners. It is the biggest brain centre in the Southern Hemisphere, and among the top neuroscience institutes in the world.

Twelve neuroscience research laboratories accommodate up to 60 clinicians and researchers working to advance treatments for major health conditions such as stroke, multiple sclerosis, epilepsy, Parkinsons disease, brain cancer, brain and spinal injuries and psychiatric disorders.

Clinical trials and breakthroughsOur doctors have begun trialling a new gps guided bronchoscopy which could significantly reduce the number of lung cancer deaths. The new technology is less invasive and allows surgeons to navigate and remove lung tumours previously too dangerous to access. The procedure provides patients with a more accurate diagnosis and a faster recovery and can provide early diagnosis and intervention the keys to preventing death from this cancer. The equipment was purchased with funding from the Department of Healths Health Technology program.

Cancer patients at The Royal Melbourne Hospital are trialling a new chemotherapy treatment which appears to shrink tumours and kill off the stem cells which keep the tumours alive. The technology works by delivering more of the cancer fighting drugs directly to the tumour with fewer side effects. The trial is in its final phase, and depending on its outcomes, oncologists are hopeful that the technology may become available in the next three years.

Researchers at The Royal Melbourne Hospital, University of Melbourne, Brigham and Womens Hospital and Harvard Medical School have discovered a potential new treatment that could reduce the symptoms of smoking related lung diseases. More than two million Australians have some form of Chronic Obstructive Pulmonary Disease (COPD), which includes the incurable condition emphysema.

The team has identified that the protein SAA plays a key role in chronic inflammation and lung damage in COPD and inhibits the natural effort of the lung to repair itself after smoking has stopped. The discovery could lead to the development of a dual treatment by targeting SAA to switch off its function in the lung and adding a synthetic form of the natural healing agent to boost lung healing. Clinical development for the synthetic agent is currently under way in the US.

Fostering a culture of research and innovation


The proposed combined treatment could also improve the effectiveness of steroid treatment for COPD, which is effective in treating other lung diseases such as asthma.

Melbourne alzheimers patients are the first in the world to trial a revolutionary new drug that could stop the progression of the disease. The Royal Melbourne Hospital is one of four hospitals involved in the trial, which is investigating the effect of a drug containing sodium selenate in patients who have been diagnosed with mild to moderate Alzheimers Disease. The drug was developed at the University of Melbourne, and if the trial is successful, the drug could be widely available in six to eight years.

Neurosurgeons at The Royal Melbourne Hospital performed breakthrough brain surgery using a new drug that makes cancerous tissue in the brain glow a fluorescent pink and red colour during surgery. The drug is given to patients orally three hours before surgery and helps neurosurgeons to more clearly visualise and operate on high grade glioma, a type of brain tumour with a poor prognosis, protecting the normal brain tissue from damage during surgery.

International studies have shown the use of the drug during surgery has nearly doubled the rate of achieving a complete resection, and has doubled the number of patients without progression of their brain cancer six months after their surgery.

Research Advisory CouncilMelbourne Healths Research Advisory Council was pleased to invite consumer representative Mrs Diana Frew to the body this year. The Council provides expert advice to the Board of Melbourne Health on all matters relating to research and scientific endeavours and support, and oversees our Research Governance Framework and Research Strategy. The role of the consumer brings another important perspective to our research governance.

More information about our research activities, including our biennial Research Report, can be found at www.mh.org.au/research

By having mental health and acute services within Melbourne Health, we have the opportunity

to provide a more holistic approach to our patients

with co-morbidities.Dr Gareth Goodier,

Chief Executive


Highlights> Think Green Strategy developed to cement Melbourne

Healths place as a leader in sustainable practices

> Preventative maintenance program developed for building amenities

Building a sustainable organisation

Environmental sustainabilityThe Victorian Environmental Commissioner Dr Kate Aughty officially launched Melbourne Healths Think Green Environmental Sustainability Strategy 2011-15 last July. The Strategy aims to position Melbourne Health as a leader in environmental sustainability within the Victorian healthcare sector by improving resource efficiency, achieving greener facilities where practical and embed sustainability in business practices. Our achievements this year have included:

> Total green spend across Melbourne Health for office consumables increased to 52 per cent of all purchases against a strategy target of 40 per cent

> Increasing paperless meetings through the installation of projectors in meeting rooms and adoption of iPads at executive and senior management meetings

> Rationalising our car fleet, reducing our greenhouse emissions and fleet costs. An online booking system has also been introduced, providing better management of the fleet

> Learnings from water, light and energy sustainability projects being incorporated into new building works

> Environmental specifications and design being incorporated into all retrofit developments.

Information Management TechnologyMelbourne Healths Information Management Technology (IMT) Strategic Directions 2011-15 outlines our plan to deliver increasingly integrated and sustainable IMT solutions for the organisation. Our approach is timely, as collaborations with developments such as the Victorian Comprehensive Cancer Centre, Melbourne Brain Centre and Peter Doherty Institute challenge traditional boundaries.

The strategy goals are to: provide secure and sustainable IMT platforms; realign and enhance capability; simplify systems and processes with effective technology; increase integration of clinical and corporate systems, and challenge traditional boundaries through IMT innovation.

Over the next five years, we will aim to promote funded, standardised, integrated and secure IMT platforms that deliver our objective. Our priority projects include centralising information communication technology asset and licence purchasing; extend wireless roll out across our sites; implement approved recommendations from the IMT Capability Review and replace unsustainable and poorly linked databases and feeder systems.


Health promotionTo help us plan future services based on the needs of our community, a Health Promotion policy and action plan was implemented in October.

The three year plan aims to embed health promotion within our organisational culture and for Melbourne Health to become a recognised Health Promoting Hospital.

We have adopted the five World Health Organization standards for health promotion in hospitals as a framework for our action plan. The plan includes a broad range of initiatives already underway and provides direction and guidance for future initiatives.

Already, we have strengthened our Smoke Free Policy, are continuing to promote a healthy workplace by delivering a range of staff wellbeing programs, engaging community services to better support discharge planning, and ensuring patient information is appropriate to our patients needs through the development of writing and production guidelines and procedures.

There is a culture where ideas and innovation are

supported, despite the challenges of balancing

clinical imperatives (and misconceptions)

with environmental considerations.

Strategic Audit - Commissioner forEnvironmental Sustainability Victoria


Highlights> Supporters contribute nearly $7 million to

support the health care provided to our community

> Second RMH Home Lottery offered following sell out success

Community support

Melbourne Health is deeply appreciative of the generous support we receive from families, businesses, trusts, foundations, community groups and organisations.

Our supporters help us by providing donations, through partnerships, by leaving a donation in their will, buying a lottery ticket or by taking part in a community event. The wonderful care provided by the hospital has led to many beneficial relationships with grateful patients and families who would like to say thanks.

This support enables us to contribute to the wellbeing of patients and staff throughout the hospital by funding research, modern facilities and state-of-the-art equipment.

Royal Melbourne Home LotteryThe Foundation continued to expand its Home Lottery with the introduction of a second lottery in February called the Lifestyle Lottery. The Royal Melbourne Hospital Lottery series continues to grow with all tickets from both selling out before the early bird deadline. Congratulations to all the winners, in particular the winners of the luxurious homes in North Balwyn and Camberwell.

Funds raised from our home lotteries are contributed to the hospitals research program, supporting staff positions and education, funding vital equipment and capital improvements.

EventsThe Royal Melbourne Hospital is proud to be a recipient and partner of Dry July. Patients battling cancer at The Royal Melbourne Hospital have benefited from $208,000 raised through dry July. The patients and staff at the hospital appreciate the contribution Dry July is making to our cancer services.

The Doctors Orchestra Corpus Medicorum continued to gain popularity, with concerts held at the Iwaki Auditorium, ABC Centre and at the Melbourne Recital Centre.

The Orchestra was founded and led by cardiothoracic surgeon Dr Phillip Antippa and The Royal Melbourne Hospital would like to thank Dr Antippa and orchestra principal sponsor and Patron Mrs Barbara Haynes OAM for her continued support, and 10th Anniversary Symphony supporter Betty Amsden OAM.

royal Melbourne golf Classic. Our Golf Classic was staged at the Royal Melbourne Golf Club in March. Almost $90,000 was raised on the day for the Diabetes EducationServicefortheMensandYoungPersonsClinics. The Royal Melbourne Hospital sincerely thanks all sponsors, supporters and donors for their generous support of these events.

Community support We are extremely appreciative of the dedicated community groups who raise funds for our hospitals and services via foyer stalls, social clubs, and community events.

Melbourne Health is the fortunate recipient of many bequests. Our bequests income this year was $428,961 from more than 30 estates. These funds will help to ensure we can continue to provide quality healthcare services today and into the future.

Every year many generous families make in memory donations for loved ones cared for by Melbourne Health. These funds are often directed to areas within the health services to improve patient amenities.

We are grateful to the many philanthropic trusts and foundations that share our commitment to provide the best possible care. Their generous support has resulted in the purchase of over $500,000 of new equipment and initiatives that positively impact our patient care.

The Royal Melbourne Hospital Foundation direct mail helps us to keep in touch with our supporters including the bi-annual Royal News. These mailings keep the community in touch with the needs and positive stories of Melbourne Health.


Volunteer ServiceThere are currently more than 300 dedicated volunteers supporting patients, families, carers and staff at The Royal Melbourne Hospital. In the last year, we saw an increase of 75 new volunteers and a new training program has been developed for both new recruits and current volunteers. The Volunteer Service is in a period of growth with seven new programs commencing and many more in the development stage that are designed to improve the patient experience. The next volunteer intake will occur in September 2012, when we will see at least 50 new volunteers joining our team.

Major Donorsbenefactors $100,000+Dry July Limited St Jude Medical Australia Pty Ltd The Danks Trust The Muriel and Les Batten Foundation

patrons $50,000+Mrs Barbara R Haynes Medtronic Australasia Pty Ltd

partners $20,000+Actelion Pharmaceuticals Australia Pty Ltd Boston Scientific Pty Ltd Dancler Trust Lord Mayors Charitable Fund/Collier Charitable Fund Hospira Pty Ltd Mattys Soldiers The William Buckland Foundation The Syd and Ann Wellard Perpetual Trust

supporters $5000+Ms Betty Amsden AOM Mr & Mrs J & D Frew Audi Australia Coca Cola Australia Foundation Leighton Contractors Pty Ltd LEHR Consultants International (Australia) Pty Ltd Nhu Lai Buddhist Meditation Association Inc KAPS Institute of Management The Royal Melbourne Hospital Birthday League The Royal Melbourne Hospital Volunteers Auxiliary Mr Andrew Tivendale Dr Dennis Velakoulis The Chinese Masonic Society

Community supporters $1000+Dr Daryl Williams Ms Julie Montan Diabetes Fundraising Support Group Mr Les Taylor Bunnings Dialysis Support Group Santas Little Helpers

Royal Melbourne Hospital Foundation Board of DirectorsThe Royal Melbourne Hospital Foundation is governed by an honorary board consisting of Melbourne Health appointments and independent directors, and is accountable to the Melbourne Health Board. The Royal Melbourne Hospital Foundation Board is responsible for overseeing the fundraising activities and all legislative compliance of the Foundation on behalf of the Board of Melbourne Health.

Current Melbourne Health directorsLord Mayor Robert Doyle, Chairman, Royal Melbourne Hospital Foundation. Foundation Chair since August 2007

Ms Linda Sorrell (resigned September 2011) Chief Executive, Melbourne Health

Ms Sharon McGowan, Company Secretary. Executive Director, Communications and Community Relations, Melbourne Health

independent directorsDr Gad Trevaks AM, appointed 2008 Mrs Florence Kingsley-Matthews, appointed 2009 Mr Peter Zwar, appointed 2009 Mr Nick Alexander, appointed 2012 Mr Mark Kagan, appointed 2012 Mr Roland Van Bommel, appointed 2012

the royal Melbourne Hospital foundationMs Michelle Eunson, Director Fundraising and Philanthropy Melbourne Health

At the opening of the studio, we raised more

than $200 towards a new dialysis machine. And it wont

stop here One of the main reasons I am doing this is to

give back to the hospital and to raise money for research.

Paula Hales,dialysis patient


Board of Directors

Melbourne Health was established in July 2000 under the Health Services Act 1988 (Victoria). The Board comprises nine independent non-executive directors. The Directors are elected for a term of up to three years, and may be re-elected to serve for up to nine years.

The Board is accountable to the Minister for Health. Its role is to exercise good governance in the achievement of Melbourne Healths objectives as detailed in the Melbourne Health Strategic Plan 2010-15 and Melbourne Health Annual Business Plan. This necessarily includes all of the following:

> Setting the strategic direction and priorities for Melbourne Health and monitoring compliance

> Approving financial and business, risk and audit plans, and budgets to ensure the accountable and efficient provision of health services by Melbourne Health and its long-term financial viability

> The establishment and maintenance of effective systems to ensure the health services provided meet the needs of the communities served by Melbourne Health

> Taking into account the views of users and providers of health services

> Monitoring the performance of the Chief Executive each financial year, against agreed strategic plans

> Through the Chief Executive, monitoring the effectiveness of arrangements with other relevant agencies and service providers to enable effective and efficient health service delivery and continuity of care

> Advising the Minister for Health and the Secretary of the Department on significant Board decisions and issues of public concern, which may affect Melbourne Health

> Facilitating health research and education

> Adopting a code of conduct for staff of Melbourne Health

> Providing appropriate training for Board directors and embedding regular Board performance evaluation.

In December 2010, the Board endorsed the Melbourne Health Corporate Governance Framework, which provides an outline of the key elements of corporate governance structures at Melbourne Health. The Framework will be reviewed in 2013.

The Directors for 2011/12 were:Mr robert doyle Chairman Mr Doyle was appointed Melbourne Health Board Chairman in July 2007.

Mr Doyle is the Lord Mayor of Melbourne and a Principal with The Nous Group, a management consultancy firm. Previously, he was a Member of Victorias Parliament for 14 years. His roles included the Leader of the Opposition and Leader of the Liberal Party, Shadow Minister for Health and, in government, Parliamentary Secretary for Health.

Ms kate redwood Ms Redwood was first appointed to the Melbourne Health Board in July 2003.

Ms Redwood runs a consultancy practice. Her previous appointments include CEO of the Australian Physiotherapy Association, Executive Director of Australian Red Cross Victoria, and Executive Director of the Victorian Council of Social Service. Ms Redwood is also a former City of Melbourne Councillor.

prof James angus ao faa Prof Angus was first appointed to the Melbourne Health Board in March 2004.

Prof Angus is the Dean, Faculty of Medicine, Dentistry and Health Sciences at The University of Melbourne. Previously, he held the Chair of Pharmacology and Head of Department at the University. In June 2010 he was awarded an Order of Australia for distinguished service to biomedical research and medical education.

Mr bill Mountford Mr Mountford was first appointed to the Melbourne Health Board in July 2007.

Mr Mountford is a part-time Commissioner with the Victorian Competition and Efficiency Commission, a Director of Insight Economics Pty Ltd and a consultant with Egon Zehnder International. He has been a Partner in Business Consulting at Arthur Andersen, Director of the Australian Manufacturing Council and CEO of the Victorian WorkCover Authority, as well an industrial policy adviser at state and federal levels.


Ms penelope Hutchinson Ms Hutchinson was first appointed to the Melbourne Health Board in July 2007.

Ms Hutchinson is the Director of Arts Victoria. She has been a former Partner at BDO Nelson Parkhill, and has previously been on a number of government boards including, Medibank Private, Federal Airports Corporation and the Victorian College of the Arts.Ms Hutchinson is also a former director of Studies for Commerce at Ormond College, Melbourne University.

prof david Hayward Prof Hayward was first appointed to the Melbourne Health Board in July 2007.

Prof Hayward is Dean of Global Studies, Social Science and Planning at RMIT. He is a Life Member of the Victorian Council of Social Service, a member of the Australian Institute of Public Administration and the Australian Institute of Company Directors and is a Patron of the Victorian Epilepsy Foundation.

Mr Michael gorton aM Mr Gorton was first appointed to the Melbourne Health Board in July 2008.

Mr Gorton is a Partner in a Melbourne law firm, Russell Kennedy Solicitors, and a board member of the Victorian Equal Opportunity and Human Rights Commission and the Agency Management Committee of the Australian Health Practitioner Regulation Agency. Mr Gorton has been awarded Honorary Fellowships with Royal Australasian College of Surgeons and Australian & New Zealand College of Anaesthetists. He was made a Member in the Order of Australia in 2004 for his community contribution.

Mrs Jane bell Mrs Bell was appointed to the Melbourne Health Board in July 2009.

Mrs Bell is a banking and finance lawyer who has worked in leading law firms, financial services and corporate treasury operations nationally and internationally. Mrs Bell is currently a Director of WorkSafe Victoria and Prince Henrys Institute of Medical Research and Deputy Chair of Westernport Water Corporation.

Mr phillip bain Mr Bain was appointed to the Melbourne Health Board in July 2009.

Phillip Bain is the CEO of the Goulburn Valley Division of General Practice and Medicare Local. He has an extensive history within the primary care sector and sits of numerous Boards and policy committees, most notably in the areas of Aboriginal and refugee health, chronic disease management and cancer services.

More information about Melbourne Healths Strategic Plan, Board responsibilities and Directors experience can be found at www.mh.org.au

Board committeesThe Board has established a number of sub-committees and advisory committees, which are also attended by members of the Melbourne Health Executive. The Chairman is an ex-officio of each committee.

Community advisory Committee Board membership: Ms Kate Redwood (Chair), Mr Phillip Bain and members of the community in which Melbourne Health operates.

primary Care and population Health advisory Committee Board membership: Mr Phillip Bain (Chair).

audit Committee Board membership: Ms Penelope Hutchinson (Chair), Ms Jane Bell, Prof David Hayward.

finance Committee Board membership: Professor David Hayward (Chair), Mr Bill Mountford, Mr Michael Gorton AM.

Clinical governance and improvement Committee (quality Committee) Board membership: Mr Michael Gorton AM (Chair), Mrs Jane Bell, Mr Phillip Bain, Mr Bill Mountford.

Attestation on compliance with Australian and New Zealand Risk Management StandardI, Robert Doyle, certify that Melbourne Health 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 Audit Committee verifies this assurance and that the risk profile of Melbourne Health has been critically reviewed within the last 12 months.

robert doyleChairman 13 August 2012


Appendices

part a: strategic priorities for 2011/12

Strategic Priority Deliverables Outcome

Develop our Workforce Develop and implement ongoing Management and Leadership Frameworks

Capability Framework has been finalised and is available to all staff. Education Strategy endorsed and action plan in draft. Education Week was held with success.

Respecting our Community Action Plan in place and milestones achieved

The Respecting our Community Action Plan is in place, key milestones have been achieved and these have been reported quarterly to the Community Advisory Committee. New initiatives implemented include the development of a Welcome and Acknowledgement of Country Policy plus awareness raising activities during Cultural Diversity Week, NAIDOC Week and International Day for People with a Disability.

Improve the quality and safety of our services

Provide education for staff acrossall disciplines to improve deliveryof person centred care

A new Open Disclosure strategy has been developed to ensure that the training meets the requirements of the National Safety and Quality Health Service Standards. All clinical staff have been encouraged to undertake e-learning Open Disclosure Training on the Department of Health Website. Targeted education forums delivered by an external consultant for Medical, Allied Health and Nursing Staff.

Develop a care coordination planfor the long-stay patient cohort

A new weekly review of all Long Stay Patients has been initiated and the Long Stay Patient Process continues meeting the KPI.

Model of care benchmarked forcancer patients and action plan developed

Models of care for Colorectal and Upper GI remain on hold due to difficulties in developing the surgical oncology component of the models. Strategies identified at the Strategic Workshop will help facilitate resolution of these issues. Five potential models have been developed to further progress clinical integration.

Develop and encourage strategic relationships

Implement the Melbourne Health Community Participation Plan

New initiatives have been implemented in accordance with the plan including a training program to increase staff awareness of how to effectively engage consumers, an evaluation of consumer participation in root cause analysis reviews and the development of a consumer register to meet the increasing requests for consumers to participate in the planning, improvement and evaluation of services.

Collaborate and build strategic partnerships with the Psychiatric Disability Rehabilitation and Support Services Sector

NorthWestern Mental Health in conjunction with key Psychiatric Disability and Rehabilitation Service partners have established the North and West Taskforce with the aim of improving clinical pathways for jointly managed patients and to develop new service models. New community programs are being established in all four adult area mental health services.

Foster a culture of innovation and research

Develop a strategy to support sustainability and organisational capability in redesigning care

Strategy to continue to sustain the improvement program and to further build organisational capability has been agreed. Implementation takes place during 12/13 and includes an updated education strategy, sustainability review and organisational maturity assessment.

Build a sustainable organisation

Review buying practices to reduce consumables expenditure

Significant savings have been realised as a result of the work done on data cleansing and analysis relating to consumables spending.

Develop and commenceimplementation of a newIMT strategy

Strategy approved by Board which prioritises integrated clinical information system and electronic medical record.

Statement of PrioritiesThe Statement of Priorities (SOP) is the key accountability agreement between Melbourne Health and the Victorian Minister for Health. This annual agreement ensures delivery of, or substantial progress towards, the key shared objectives of improved access and quality of services and financial viability. The SOP is published annually on the Department of Healths website.


part b: performance priorities

financial performance

Operating result Target 2011-12 actuals

Annual Operating result ($m) $2.89m deficit $614k surplus

Cash management/liquidity Target 2011-12 actuals

Creditors 60 days 49 days

Debtors 60 days 56 days

service performance

WIES activity performance Target 2011-12 actuals

WlES (public and private) performance to target (%)

98 to 102 99.29

Elective Surgery Target 2011-12 actuals

Elective surgery admissions quarter 1 2,057 2,054




Critical Care Target 2011-12 actuals

No. of days below lCU minimum operating capacity

0 0

Quality and Safety Target 2011-12 actuals

Health service accreditation Full Compliance Full Compliance

Residential aged care accreditation Full Compliance Full Compliance

Cleaning standards Full Compliance Full Compliance

Submission of data to VICNISS (%) Full 100

VICNISS Infection Clinical Indicators No outliers No outlier

Hand Hygiene Program compliance (%) 65 77

SAB rate (OBDs) 2.0 1.1

Victorian Patient Satisfaction Monitor (%) 73 RMH CityCampus: 74.6

RMH Royal Park Campus: 72.4

Mental Health Target 2011-12 actuals

28 day readmission rate (%) 14 14.2

Post-discharge follow-up rate (%) 75 67.3*

Seclusion rate (OBDs) (per 1,000 BD) 20 23.6

*target not met due to impact of industrial action on data collection

part b: performance priorities cont.

Access performance Target 2011-12 actuals

Operating time on hospital bypass 3% 1.56%

Emergency patients admitted to an inpatient bed within 8 hours

80% 73.7%

Non-admitted emergency patientswith length of stay of less than 4 hours

80% 67.4%

Number of patients with length of stay in the emergency department greater than 24 hours

0% 0%

Triage Category 1 emergency patients seen immediately

100% 100%

Triage Category 2 emergency patients seen within 10 minutes

80% 85.3%

Triage Category 3 emergency patients seen within 30 minutes

75% 70.8%

Elective surgery Target 2011-12 actuals

Category 1 elective patients admitted within 30 days

100% 99.97%

Category 2 elective surgery patients waiting less than 90 days

80% 49%

Category 3 elective surgery patients waiting less than 365 days

90% 81%

Number of patients on the elective surgery waiting list

2,195 2,686

Number of Hospital Initiated Postponements (HiPs) per 100 scheduled admissions

8% 10.4%


part C: activity and fundingActivity Weighted InlierEquivalent Separations (WIES)

2011-12 Activity Achievement

WIES Public (including VALP) 56,617

WIES Private 11,474

Total WIES (Public and Private and VALP) 68,091

WIES Renal 1,775

WIES DVA 798

WIES TAC 4,780

WIES TOTAL 75,445

Sub Acute Inpatient

CRAFT 421

Rehab L1 (non DVA) 1,800

Rehab L2 (non DVA) 545

GEM (non DVA) 29,890

Palliative Care Inpatient (non DVA) 3,539

Transition Care (non DVA) bed day 8,076

Restorative Care 3,678

Rehab 2 DVA 56

GEM DVA 1,201

Palliative Care DVA 79

part C: activity and funding cont.

Ambulatory

VACS Allied Health 19,619

VACS - Variable 147,410

Transition Care (non DVA) - Homeday 11,510

SACS Non DVA 35,457

Post Acute Care 2,368

VACS Allied Health DVA 0

VACS Variable DVA 89

SACS DVA 611

Post Acute Care DVA 11

Aged Care

Aged Care Assessment Service 5,034

Residential Aged Care 39,619

Mental Health

MH Inpatient 71,319

MH Ambulatory 122,859

Note: The above admitted patient data is sourced from the Victorian Admitted Episode Dataset (VAED). Final consolidation of VAED is scheduled for September 2012, after the publication of this report, therefore the above data is not final.

appendices cont.

Attestation on data accuracyI, Gareth Goodier, certify that Melbourne Health has put in place appropriate internal controls and processes to ensure that reported data reasonably reflects actual performance. Melbourne Health has critically reviewed these controls and processes during the year.

dr gareth goodierChief Executive 13 August 2012


Melbourne Health Privacy Policy Melbourne Health is committed to protecting the privacy of its patients and clients. The organisation is required by law to protect personal and confidential information such as information about an individuals health and other personal details. Melbourne Health complies with all applicable legislation relating to confidentiality and privacy, including, where relevant, the Health Services Act 1998 and the Health Records Act 2001. Melbourne Healths Privacy Policy is available in hardcopy and online at www.mh.org.au

Freedom of InformationAll applications were processed in accordance with the Freedom of Information Act 1982, which provides a legally enforceable right of access to information held by government agencies. Melbourne Health provides a report on these requests to the Victorian Department of Justice.

Melbourne Health received 19 requests during the year and had one in progress at the beginning of the year.

> 15 were granted in full

> 2 were granted in part

> 2 were withdrawn

> 1 is in progress

the royal Melbourne Hospital received 1880 requests during the year and had 663 in progress at the beginning of the year.


> 11 were in part

> 43 were withdrawn

> 176 are in progress

northwestern Mental Health received 213 requests during the year and had 16 in progress at the beginning of the year.


> 46 were granted in part

> 15 were withdrawn

> 2 were denied

> 1 was transferred to another service

> 7 were in progress at the end of the financial year

Whistleblowers Protection Act 2001Melbourne Health has a policy and procedure in compliance with Part 6 of the Whistleblowers Protection Act 2001. The policy and procedure is available to all staff on the Melbourne Health intranet site. In accordance with the provisions of Section 104 of the Act, no disclosures were received during the year.

Merit and equity principlesMerit and equity principles are encompassed in all employment and diversity management activities throughout Melbourne Health.

Competitive Neutrality Melbourne Health continues to comply with the Victorian Governments Competitive Neutrality Policy. In addition, the Victorian Governments Competitive Neutrality pricing principles has been applied by Melbourne Health from 1 July 2000 for all relevant business activities.

Victorian Industry Participation Policy Melbourne Health complies with the intent of the Victorian Industry Participation Policy Act 2003. From 1 July 2011 to 30 June 2012, Melbourne Health did not enter into any contractual arrangements for which VIPP applies.

General information


Building Act 1993 It is Melbourne Healths practice to obtain Building Permits for new projects where required and Certificates of Occupancy or Certificates of Final Inspection and certificates of compliance for all completed projects.

Registered Building Practitioners have been involved with all new building works projects, and their registrations remains current. In order to maintain buildings in a safe and serviceable condition, routine inspections and ongoing maintenance programs were undertaken. Where required, Melbourne Health proceeded to implement the highest priority recommendations arising out of those inspections through planned rectification and maintenance works.

building certified for approved design phase under construction.

rMH City Campus > Victorian Comprehensive Cancer Centre (VCCC)

extension of 1B building

> VCCC enabling works (infrastructure)

> Allied Health relocation

> Health Workforce Australia

> MRI replacement project

> Catheter lab upgrade

> 1B Chiller Upgrade

> Theatre pendant upgrade

nwMH > Weighbridge facility upgrade

> Certified/final inspection

> RMH City Campus

> 1B building electrical upgrade

> Theatre pendant upgrade (staged works)

> Heating hot water pipe upgrade

rMH royal park Campus > Electrical upgrade

> Mechanical upgrade

> Transition Care program in Park Hostel

> BreastScreen mechanical upgrade

nwMH > Cyril Jewel House mechanical upgrade

> Southstone Lodge mechanical upgrade

Additional InformationDetails in respect to the items listed below have been retained by Melbourne Health and are available to the relevant Ministers, members of Parliament and the public upon request (subject to the Freedom of Information requirements, if applicable):

(a) A statement of pecuniary interest;

(b) Details of shares held by senior officers as nominee or held beneficially in a statutory authority or subsidiary;

(c) Details of publications produced by Melbourne Health about our activities and where they can be obtained;

(d) Details of changes in prices, fees, charges, rates and levies charged by Melbourne Health;

appendices cont.


e) Details of any major external reviews carried out on Melbourne Health;

(f) Details of major research and development activities undertaken by Melbourne Health that are not otherwise covered either in the Report of Operations or in a document that contains the financial report and Report of Operations;

(g) Details of overseas visits undertaken including a summary of the objectives and outcomes of each visit;

(h) Details of major promotional, public relations and marketing activities undertaken to develop community awareness of Melbourne Health and its services;

(i) Details of assessments and measures undertaken to improve the occupational health and safety of employees;

(j) A general statement on industrial relations within the entity and details of time lost through industrial accidents and disputes, which is not otherwise detailed in the Report of Operations;

(k) A list of major committees sponsored by Melbourne Health, the purposes of each committee and the extent to which the purposes have been achieved; and

(l) Details of all consultancies and contractors including those engaged, services provided and expenditure committed to for each engagement.

ConsultanciesPurpose of Consultancy Total Approved

Project Fee (exc. GST)($000)

Expenditure 2011-12(exc. GST)

($000)

Future Expenditure(exc. GST)

($000)

Advectas Australia Management Information Systems 13 13 -

Anne Hastie Community Redesign Project 19 19 -

Bishop Fleet Optimsation Fleet Study 23 23 -

Deloitte Touche Tohmatsu Audit 253 253 -

DLA Piper Legal Services 25 25 -

Gajan Jeganathan Management Information Systems 11 11 -

Loss Prevention Group Human Resource Strategy 21 21 -

MKM Consulting Management Information Systems 18 18 -

Precedence Healthcare Clinical Project 14 14 -

Project Health Mortality Audit Project 18 18 -

Price Waterhouse Coopers Cost of Care Project 24 24 -

Quinntessential Marketing Human Resource Strategy 19 19 -

Redback Health Services Pathology Strategy 101 101 -

RSM Bird Cameron Audit 136 136 -

SACS Consulting Human Resource Strategy 50 50 -

SO Asher Consultants Fundraising 1,026 1,026 1,000

Speakok Clinical Communications 18 18 -

The Donnington Group Human Resource Strategy 10 10 -

Web Elements Management Information Systems 16 16 -

In 2011-12, Melbourne Health engaged 62 consultancies where the total fees payable to the consultants were less than $10,000, with a total expenditure of $149,628 (exc. GST).


Disclosure indexThe annual report of Melbourne Health is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identification of the Departments compliance with statutory disclosure requirements.

Legislation Requirement Page Reference

Ministerial directionsReport of Operations

Charter and purpose

FRD 22B Manner of establishment and the relevant Ministers 20, 93

FRD 22B Objectives, functions, powers and duties 20

FRD 22B Nature and range of services provided 5

Management and structure

FRD 22B Organisational structure 7

Financial and other information

FRD 10 Disclosure index 28

FRD 11 Disclosure of ex gratia payments 65

FRD 15B Executive officer disclosures 94

FRD 21A Responsible person and executive officer disclosures 93, 94

FRD 22B Application and operation of Freedom of Information Act 1982 25

FRD 22B Application and operation of Whistleblowers Protection Act 2001 25

FRD 22B Compliance with building and maintenance provisions of Building Act 1993 26

FRD 22B Details of consultancies over $10,000 27

FRD 22B Details of consultancies under $10,000 27

FRD 22B Major changes or factors affecting performance 2, 3, 6

FRD 22B Occupational health and safety 11

FRD 22B Operational and budgetary objectives and performance against objectives 6, 22 24

FRD 22B Significant changes in financial position during the year 6

FRD 22B Statement of availability of other information 26 27

FRD 22B Statement on National Competition Policy 25

FRD 22B Subsequent events 95

FRD 22B Summary of the financial results for the year 6

FRD 22B Workforce Data Disclosures including a statement on the application of employment and conduct principles 10, 11

FRD 25 Victorian Industry Participation Policy disclosures 25

SD 4.2(j) Sign-off requirements 3

SD 3.4.13 Attestation on Data Integrity 24

SD 4.5.5 Attestation on Compliance with Australian/New Zealand Risk Management Standard 21

financial statements Financial statements required under Part 7 of the FMA

SD 4.2(a) Statement of changes in equity 35

SD 4.2(b) Operating statement 33

SD 4.2(b) Balance sheet 34

SD 4.2(b) Cash flow statement 36

Other requirements under Standing Directions 4.2

SD 4.2(a) Compliance with Australian accounting standards and other authoritative pronouncements 37

SD 4.2(c) Accountable officers declaration 30

SD 4.2(c) Compliance with Ministerial Directions 37

SD 4.2(d) Rounding of amounts 51

LegislationFreedom of Information Act 1982 25Whistleblowers Protection Act 2001 25Victorian Industry Participation Policy Act 2003 25Building Act 1993 26Financial Management Act 1994 3, 30, 37

appendices cont.


30 board MeMbers, aCCountable offiCers and CHief finanCe and aCCounting offiCers deClaration31 independent audit report33 CoMpreHensive operating stateMent34 balanCe sHeet35 stateMent of CHanges in equity36 CasH flow stateMent37 notes to tHe finanCial stateMents

Financial Statements


We certify that the attached financial statements for Melbourne Health 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 flow statement and notes to and forming part of the financial statements, presents fairly the financial transactions during the year ended 30 June 2012 and the financial position of Melbourne Health at 30 June 2012.

At the time of signing, we are not aware of any circumstance which would render any particulars included in the financial statements to be misleading or inaccurate.

We authorise the attached financial statements for issue on this day.

Mr robert doyle Chairman

Melbourne Health 13 August 2012

Ms penelope Hutchinson Chairperson, audit Committee


dr gareth goodier Chief executive


Mr Colin Holland executive director finance and logistics


Board members, accountable officers and chief finance & accounting officers declaration


Note Parent Entity Parent Entity Consolidated Consolidated

2012 2011 2012 2011$'000 $'000 $'000 $'000

Revenue from Operating Activities 2 836,127 799,701 846,767 806,023 Revenue from Non-operating Activities 2 6,520 7,003 7,692 7,003 Revenue from Inter Hospital Inventory Sale 2 21,578 21,829 21,578 21,829 Employee Expenses 3 (606,574) (570,009) (607,454) (570,856) Non Salary Labour Costs 3 (13,711) (14,548) (13,733) (14,531) Supplies & Consumables 3 (141,724) (139,159) (141,724) (139,160) Other Expenses From Continuing Operations 3 (80,024) (85,380) (91,898) (91,077) Expenses from Inter Hospital Inventory Purchase 3 (21,578) (21,829) (21,578) (21,829)

Net Result Before Capital & Specific Items 614 (2,392) (350) (2,598)

Capital Purpose Income 2 27,875 19,800 27,876 19,834 Impairment of Financial Assets 3 (4,655) (140) (4,656) (140) Revaluation gain recognised on Disposal of Non-Financial Assets 2 150 214 150 214 Impairment of Non-Financial Assets 3 - - (3,302) -Reversal of Impairment of Financial Assets 2 - 64 - 64 Depreciation and Amortisation 4 (48,880) (51,087) (48,881) (51,121) Asset Received Free of Charge 2,2d 3,097 - 3,097 -Expenditure using Capital Purpose Income 3 (523) (424) (523) (424)

NET RESULT FOR THE YEAR (22,322) (33,965) (26,589) (34,171)

Other comprehensive incomeNet fair value gains/(losses) on Available for Sale Financial Investments 15 (650) 549 (620) 549 Net fair value revaluation on Non Financial Assets 15 18,182 (214) 18,182 (214) Loss Attributable to Minority Interest - - (2,813) (112)

COMPREHENSIVE RESULT FOR THE YEAR (4,790) (33,630) (11,840) (33,948)

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

Comprehensive Operating StatementFor the Year Ended 30 June 2012

Comprehensive Operating StatementFortheYearEnded30June2012


Note Parent Entity Parent Entity Consolidated Consolidated2012 2011 2012 2011$'000 $'000 $'000 $'000

Current AssetsCash

annual report 2011-12 uif&yusbpsejobsz · melbourne health annual report 2011-12 / 3 the melbourne...

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