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Annual Report2011-2012

Better health in our community

Southern Health is proud to provide integrated health care to one quarter of Melbourne’s population. We uniquely provide health care across the entire life-span – from newborns and children, to adults, the elderly, their families and carers.

We improve the health of our community through:•Prevention•Early intervention•Community based treatment and

rehabilitation•Highly specialised surgical and medical

diagnosis, treatment and monitoring services

•Hospital and community based mental health services

•Comprehensive aged care programs•Palliative care•Research•Education

Our visionBetter health in our community

Our purposeTo plan and deliver quality, patient centred health care and services, education and research that meets the needs of our community.

Our values WeremainfirmlycommittedtoourICAREvalues of: Integrity Compassion Accountability Respect Excellence

MonashMedical CentreMoorabbin

Kingston Centre Dandenong Hospital

Dandenong Doveton

Berwick

Casey Hospital

Pakenham

Cockatoo

Cranbourne

CranbourneIntegratedCare Centre

MonashMedical CentreClayton

Springvale

MELBOURNE CBD

Hospitals

Greater Dandenong Community Health Service

Cardinia Casey Community Health Service

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AboutSouthernHealth

SouthernHealthAnnual Report 2011-20122

2.06 million episodesTotal episodes of caremore than 2.06 million episodes of care provided across our services to the community.

Hospital admissionsmore than 201,000 people admitted to our hospitals.

Emergency presentationsmore than 179,000 people came to our three Emergency Departments for treatment.

Ambulancearrivalsmore than 45,000 ambulance arrivals handled by our Emergency Departments.

Surgicaloperationsmore than 39,000 operations performed.

Outpatient servicesmore than 641,000 occasions of service provided by our outpatient clinics.

Birthsmore than 8,600 babies delivered.

Childrenmore than 30,000 admissions of children under age19toourchildren’swardsandneonatalunits.

Mental healthmore than 173,000 client contacts.

Community health servicesmore than 194,000 hours of direct primary care and home and community care services provided in our community.

201,000 people

179,000 people

45,000 arrivals

39,000 operations

641,000 occasions

8,600 babies

30,000 children

173,000 contacts

194,000 hours

2011-2012 at a glance

SouthernHealthAnnual Report 2011-2012 3

In accordance with the Financial Management Act 1994, we are pleased to present the Report of Operations for Southern Health for the year ending 30 June 2012.

SouthernHealthisanexcitingand dynamic organisation that strivestodeliverworldclasshealth care.

Our focus on innovation, safety andefficiencyissomethingthatwetakegreatprideinateverylevel of the organisation.

Asateamwedeliverthevery best health care based onourkeyvalues–integrity,compassion, accountability, respectandexcellence(ICARE).

Our patients are at the centre ofallthatwedoandweareimmensely proud to be able to provide quality healthcare to overonequarterofMelbourne’spopulation.

In2011-2012werespondedtosignificantgrowthindemandfor our services, including an 11% increase in emergency admissions, and a 9% increase in mental health inpatients.

Intotalweprovidedmorethan2.06millionepisodesofcare–including hospital and community based services.

OurStrategicPlan2010-2013 is continuing to drive our organisation and in the past 12monthswehavedeliveredsomesignificantachievementsincludingworld,AustralianandVictorianfirstdevelopmentstowardsourfiveStrategicGoals.

Strategic Goal 1:Safeandeffective patient centred care

• We have continued our commitment to decreasing avoidable harm through our TargetZeroprogramwhichfocuses on reducing falls, medication errors, deep vein thrombosis and infection control. Our commitment to handhygienewasrecognisedwhenourhandhygieneteamwerepresentedtheAsiaPacificWorldHealthOrganisation Hand Hygiene Award.

• Amechanicalmakeovertothefleetofmobilex-raymachinesat Monash Medical Centre Clayton improved image quality and has resulted in a reduction of radiation doses to patients. The technology enhancementhasalsoallowedimagestobeviewedatthepatient’sbedsidewithinthreeseconds aiding staff to provide more timely clinical treatment decisions.

• Monash Medical Centre Moorabbin Dialysis Centre is thefirstrecordeddialysisunitintheworldtoincorporateaZumba exercise regime in its dialysis program.

• The MonashHeart team werethefirstintheworldtosuccessfullydeploythenewSadra‘lotus’heartvalve.TheSadraheartvalveisanartificialheartvalvethatoffersanew,minimally invasive alternative

to open heart surgery in patients deemed to be at high orextremesurgicalrisk.

• Weareproudtoleadaworldfirstmelatonintrial,withour partners at the Monash Health Translation Precinct, to reduce brain damage in babies.Victorianwomenwithgrowth-restrictedbabieswillbe offered melatonin to protect theirunbornchild’sbrainandprevent brain injuries such as cerebral palsy.

• TheSouthernHealthDonateLife team have doubled their organ donation consent rateinthelasttwoyears.TheteamhasallowedSouthernHealthtoberankedamongAustralia’stopdonorhospitals.

• AnAustralianfirstledbyourSpeechPathologydepartmentisallowingclinicianstofacilitate speech and language rehabilitationwiththeuseofiPadsforpatientswithcommunicationdifficultiesthatmay be caused by autism, stroke,orheadorneckcancer.

• InaVictorianfirst,MonashHeart launched the RapidAssessmentChestPain Clinic as an unparalleled opportunity to speed cardiac assessment, diagnosis, treatment,riskfactormodificationandfollow-upof patients in the community suffering chest pain thought to be of cardiac origin.

Report of the Chair of the Board and Chief Executive



• The Ear, Nose and Throat team at Monash Medical Centre Moorabbin performed anAustralianfirstinsertionofanAlpha1boneconductionhearingprosthesis.Thisnewdeviceallowspatientstohearfrom their affected ear after only one month.

• Our dietetics team authored and produced The Practical HandbookofOncologyNutrition, a comprehensive guide for all members of the oncology multidisciplinary team.

• Victoria’sfirstPaediatricMurmurClinicwaslaunchedatMonashHeartwhichensurestimely assessment of children withaheartmurmur,reducingwaitingtimesatourgeneralcardiology clinic.

• Neurosurgeons at Monash Medical Centre Clayton have completed recruitment in a worldfirststemcelltrial.Thetrial uses adult stem cells during a procedure performed to alleviate the pain caused by nerve root compression due to aslippeddiscintheneck.

Strategic Goal 2: Responsive and accessible services• Ournewyouthmentalhealthservice–EarlyinLifeMentalHealthService(ELMHS)wasdevelopedwithinputfromyoung people, their families, and service providers over a three year period. With the amalgamation of the Child andAdolescentMentalHealthserviceandseveralAdultMental health Programs, ELMHSprovidesspecialistmulti-disciplinary tertiary mental health services to expectant mothers, infants, children, adolescents, youth (under25years)andtheirfamilies.

• Cardinia-Casey Community HealthServiceinpartnershipwithSouthernHealth,openeda Refugee Clinic. The clinic offers primary care services for asylumseekersandrefugeesresidingintheCitiesofGreaterDandenong, Casey and the ShireofCardinia.

• In2012weintroducedournewPaediatricAboriginalHealthTeamwhoareworkingwithAboriginalchildrenandfamilieswithinthecommunity

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AboutSouthernHealth

2011-2012 at a glance

Report of the Chair of the Board and Chief Executive and achievements against StrategicGoals

Our sites, services and staff

Governance

Members of the Board of Directors

Organisational structure

Statutorycompliance

Disclosure index

Attestations

Keyfinancialandserviceperformance reporting

Summaryoffinancialresults

Financial summary

Financial statements and explanatory notes

Declaration

IndependentAuditor’sReport


to encourage a healthy generation of children. The Reaching Out Project 2012 hasshownapositiveimpactonpaediatricAboriginalhealthandnewlydevelopedclinicalcareguidelineswillassistregistered nurses to culturally careforAboriginalchildrenandfamilywithintheacutecaresetting.

• The 120 bed Mental Health inpatient facility at Dandenong HospitalopenedinAugust2011.Thenewbuildingwasdesigned to contribute to thehealthandwellbeingofpatients and emphasises a connectionwiththeoutside,particularly an abundance of naturallightandviewsofthegarden.

• KingstonCentre’sStage2redevelopment–NorthWest2-welcomeditsfirstpatientsand clients in March 2012. The $46.3 million state-of-the-art redevelopment has two32bedsub-acutewards,anewcommunityfundedhydrotherapypoolandnewfacilities for rehabilitation services.Thesenewfacilitieswillallow32,000additionaloccasions of service each year.

• SouthEasternCentreAgainstSexualAssault(SECASA)launchedanawarenesscampaign in local schools aboutthedangersof‘sexting’.Surveysatlocalschoolsfound young people did not understand the implications of sending explicit material to each other via their mobile phones.TheSECASAteamadded useful information to theirwebsite,ranworkshopsabout social media and created an info-postcard for teenagers and students.

• Ourvisiontocreateaworld-classchildren’shospitalthatwillserveourchildrennowand into the future has been boosted by the Victorian Government’scommitmentofan additional $7.3 million. This allocation brings total funding to date to $15.8 million for the 230 bed Monash Children’sHospital.Thesefundswillenableustoworkon more detailed plans and bring the project to the point of schematic design and full presentation for tender.

Strategic Goal 3: Collaboration and engagement

• Monash Medical Centre ClaytonwillbehometoVictoria’sfirstmultidisciplinarytranslation research facility - Monash Health Translation Precinct (MHTP - a partnership betweenSouthernHealth,PrinceHenry’sInstitute,Monash University and MonashInstituteofMedicalResearch(MIMR)).Thisproject has been made possible through a $71 million CommonwealthGovernmentgrant.

• SouthernHealthGreaterDandenong Community Health ServiceandMissionAustraliahave partnered to launch a DVD for parents addressing common issues faced during transitionbetweenprimaryschool and secondary school. Theresourcewillsupportfamilies, increase their capacity to respond to transition issues and improve access to local support services available in thewidercommunity.

• Monash Medical Centre Clayton hosted a successful AboriginalHealthCommunityOpen Day in June 2012, whichincludedtheinauguralcommunity forum to discuss


and plan the creation of a uniqueAboriginalHealingGardeninthecentreofthehospital.

• OurConsumerAdvisoryCommittee provided direction for the future of consumer participation through the Consumer Participation Plan and several strategic areas includingkeylinkswiththeCultural Responsiveness Committee,AboriginalHealthExecutive Committee and co-design activities.

• ThenewRonaldMcDonaldFamily Room opened at Monash Medical Centre Clayton in December 2011. The room offers respite for thefamiliesofchildrenwhoare being treated at Monash Children’sClayton.TheRoom is an initiative of Ronald McDonald House Monash inpartnershipwithSouthernHealth.

• The Monash Cancer Centre Chemotherapy Day Unit, at Monash Medical Centre Moorabbin,hasbeenworkingwithSouthernMelbourneIntegratedCancerServiceto introduce supportive care screeningwhichlooksatallaspectsofapatient’shealthandwellbeingtoimprovethe cancer experiences and outcomes for patients, families and carers.

• The 10 part Channel 31 televisionseriesHeartStarters,launched in June 2012, gives a behind the scenes lookatVictoria’sleadingcardiac services provider MonashHeart.

• Asensorygardenwascreatedat Casey Hospital to provide ourpatientswithaplacetorelax and enjoy the outdoors.



• NationalChildren’sWeek2011wasahighlightontheSouthernHealtheventcalendarasMonashChildren’spatientswelcomedStarWarsStormTroopers,Batman,HealesvilleSanctuaryandtheir furry friends, Richmond Football Club, Melbourne FootballClubandAustralianrockband-TheLivingEnd.

Celebrating our services

Throughouttheyearwecelebrated the diverse range of servicesweofferbysupportingservicespecificinitiatives.

The 2011-2012 events have included:

• ResearchWeek2012showcasedtheworkofourresearchers and collaborators including the Monash Health Translation Precinct partners. TheweekincludedtheSeniorMedicalStaffSymposiaonregenerative medicine and refugee health. The poster competition attracted over 400 entries in the Best Early CareerInvestigatorandBestResearchAwardscategories.

• KingstonCentremarkedacentury of care in July 2011. Kingston Centre has provided a place for care, healing and refugeforVictorianswhocould not care for themselves overmanygenerations.Initsearliest days the Centre cared forpeoplewhoweredestitute,troubled or needed asylum andithasnowdevelopedintoa specialist centre offering the best in rehabilitation for adults ofallagesaswellasprovidingaged residential care and mental health services.

• TheDaySurgeryUnitatCranbourneIntegratedCareCentre celebrated its tenth birthdayinAugust2011.Theunitfirstopenedwithtwo

ophthalmology operating sessionsperweekanditnowprovides13sessionsperweekand over 2,400 procedures peryear.Theclinicnowalsoprovides other specialties including general gynaecology and plastic surgery.

• OccupationalTherapyWeek2011allowedourOccupationalTherapy team to educate other stafftolookforreferraltriggers.

• DiabetesWeek2011involvedexercise displays in the main foyer of Monash Medical CentreClaytonaswellasaseries of presentations from the Diabetes Unit.

• MentalHealthWeek2011included an art competition withartcreatedbymentalhealthclientsacrossSouthernHealth sites.

• World Kidney Day 2012 offered the community plenty of opportunities to learn more aboutkidneyhealth,participatein spot quizzes and have free bloodpressurechecks.

• PathologyWeek2012highlighted the roles that medical scientists play behind the scenes in delivering pathology services.

• MedicationSafetyWeek2012washostedbytheMedicationSafetyCommitteewiththeaimofimprovingawarenessofsafemedication practices.

Strategic Goal 4: Financial accountability

We are pleased to report thatSouthernHealthmetourStatementofPrioritiesbudgettarget.

Asapublicly-fundedhealthservicewedemonstratehighstandards of accountability and efficiency.

Our Living Within Our Means program, that aims to improve efficienciesacrosstheentireorganisation, has resulted in substantial savings and improved revenue generation. This programofworkisongoingandhasalreadydeliveredsignificantsavings in our procurement and inventory management processes,increasedefficienciesin revenue collection, and a reduction in colour printing.

Our environmental performance

We are committed to building anenvironmentallyawareandsustainable organisation. To ensure our team have access toenergyandwaterusagedata a utilities dashboard is availableontheSouthernHealthIntranet.Thedashboardisupdated quarterly and provides statisticsforenergyandwaterconsumption. Aworld-firsttrialofsteamandmicrofibrecleaninginahospital has been completed and is successfully reducing chemicaluse,reducingwaterconsumptionwhilealsohavingpositive impacts for cleaning staff including reduced injury, less exposure to chemicals and an improvementinefficiency.ThenewcleaningtechnologywillnowberolledoutacrossallSouthernHealth sites during 2012-2013. Our engineering services team haveachievedaremarkableenergy saving by installing variable speed drives to the heatinghotwaterpumpsintwoplantrooms.Thesedriveswillsave in excess of $11,000 per year.

Our commitment to building efficientinfrastructurecontinuedwiththenewKingstonCentreredevelopment utilising a roof


rainwaterrecyclingsystemwhichisusedforirrigationandtoiletflushing.Thenorthfacingbuilding also ensures natural light is maximised to maintain heating and cooling control.

OurGreenChampionscommittee continues to raise awarenessofenvironmentalopportunities across the organisation.

Thecommittee’sworkhasincludedanauditofwastebinsandtheirusage,wardbased education sessions, and participationinSustainabilityVictoria’sGreenhouseGames.

Strategic Goal 5:Workforceinnovationandknowledge

• Each year our nurses and midwivesarerecognisedattheSouthernHealthNursingandMidwiferyAwardsandScholarshipsDinner.Duringthe2012eventtenawardsandfivescholarshipswereawarded.MrAndrewJong,SteppingStonesTransitionProgramCoordinatorwasnamed 2012 Nurse of the Year.

• The inaugural Excellence andInnovationAwardswereannouncedattheSouthernHealth Ball in October 2011.

• TheawardforPatientCareInnovationwaspresentedtoDiagnosticImagingfortheworkofMsDanaJackson,CTMedicalImagingTechnologistandherteamacrossSouthernHealthandAustinHealththat successfully reduced CT radiation by 30%.

• TheawardforClinicalServicesInnovationwaspresented to Ms Lisa Lynch, Director Early in LifeMentalHealthServices(ELMHS),andherteam

for the development and implementationofthenewELMHSdirectorate.

• TheawardforNon-ClinicalServiceswaspresentedtoMrImranHanif,CentralProduction Kitchen and FoodServiceManagerand our Central Production Kitchen staff for the creation of Halal, multi-cultural and vegan menu selections for patients.

OurRecognitionandRewardAwardprogramcontinuedtobesuccessfulin2011withover 400 nominations. This awardprogramallowspeerstonominatecolleagueswhodemonstrateourICAREvalues.

Eachyeartherearefivequarterlyandtwoannualwinners.In2011-2012ourannualwinnerswereMrDamianBurns,NurseUnitManagerfromSouthWestFour at Dandenong Hospital and jointwinnersMsColleenWhite,NurseUnitManagerandDrMarkTarrant, a member of the senior medical team from the Casey Hospital Maternity Department.

Toensurewecontinuetobealeadinghealthorganisationwehavecreatedanumberofnewrolestoensurewecontinueto meet the needs of our community:

• We appointed Directors of SurgicalTraining.AssociateProfessor Bruce Waxman oversees Dandenong and Casey Hospitals and Ms Helen Maroulis oversees Monash Medical Centre Clayton and Moorabbin. These Directors mentorjuniordoctorswhoareplanning a career in surgery aswellasarrangingspecificeducational opportunities for all surgical orientated pre-vocationaldoctorswithinSouthernHealth.


• InafirstfornursingandmidwiferyinAustraliaweintroduced a Professor of MidwiferyandCo-directorofMaternityServices.MsChristineEastwasappointed to the role to strengthenthelinkbetweenacademia, clinical and researchinmidwifery.

• We have continued to invest in leadership development and capability across the organisation through training including the Top 50 Leaders andInspiringLeadershipprograms.

Congratulations to our staff

We are immensely proud to lead such a talented and professional team.

During 2011-2012 a number of staffwererecognisedfortheiroutstanding achievements in serving our community. These achievements included:

• ProfessorIanMeredith,DirectorofMonashHeartwasadmitted as a Member of theOrderofAustraliaintheAustraliaDay2012HonoursList.

• Consumer advisor, Dr Pamela Williams,wasadmittedasa Member of the Order of AustraliaintheAustraliaDay2012 Honours List.

• Professor Helena Teede, Head of Diabetes, Obesity and Vascular Medicine Unit and Ms CarolynWorth,ManagerSouthEasternCentreAgainstSexualAssaultwereamongaselectgroupofwomeninductedintothe 2012 Victorian Honour Roll of Women.

• ChiefExecutiveMsShellyParkwasannounced2011TelstraBusiness Women of the Year.


• TheRehabilitationandAgedCareServicesPracticeImprovementandInnovationteamwonapostercompetitionabout linen management at the20128thAustralasianRedesigning HealthCare Summit.

• Haematology services staff DrJakeShorttwontheHSANZAlbertBlakeMemorialmedalfor the best oral presentation andDrNoelChanwastherunner-upfortheASTHScientificMedalatthe2011HaematologySocietyofAustraliaandNewZealandConference.

• Emergency Physician Ms Diana Egerton-Warburton receivedthebestFellowspaper prize at the 2011 AustralasianCollegeofEmergencyMedicineAnnualScientificMeeting.

• EthicsCommitteesAandBwererankedfirstandthirdinthe state for their performance by the Consultative Council for Human Research Ethics. The committeeswererecognisedfor their streamlined ethical reviewofmultisiteclinicaltrials.

• Ms Faduma Musse, Family and Reproductive Rights Education ProgramworkeratGreaterDandenong Community Health servicewona2011VictorianGovernmentMulticulturalAwardforExcellence.

• MonashAgeingResearchCentre researchers DrStephanieWardand ProfessorBarbaraWorkmanreceived NHMRC funding to lookatthepotentialroleofaspirin in moderating sleep apnoea in the elderly.


• MsGlendaKerridge,SocialWorkeratMonashMedicalCentreClaytonwasawardedthe best oral presentation awardatthe2011HealthSocialWorkDirectors’ResearchSymposium.

• TheLenandEdnaHawkettAward(establishedbytheRotaryClubofOakleigh)fortheOutstandingPostGraduatePaediatric Nurse at Monash MedicalCentreClaytonwasawardedtoMsEliseRobinson.

• TheJohnBurgessAwardfor clinical excellence at DandenongHospitalwaspresented to medical registrar Dr Marcus Roberston.

• OurkidneyresearcherswererecognisedattheAustraliaNewZealandSocietyofNephrologyAnnualScientificMeetinginSeptember2011.TheRocheYoungInvestigatorAward(BasicScience)waspresented to PhD candidate MsPohYiGan.TheKidneyHealthAustraliaBestClinicalScienceAwardwaspresentedtoNephrologistDrSusanBlair,TheAMGENBestPracticeScienceAwardwaspresentedtoGroupLeaderAssociateProfessorSharonRicardo.

• GraduateMidwifeMsFrancesMoneawasannouncedthebestmidwiferystudentfromDeakinUniversityWaterfrontCampus,GeelongandMsKirstyMcKerralwasannouncedthesameawardfrom Victoria University.

• Organ and Tissue Donation SeniorNursesMsNicolaStittandMsKarliBrkljacicwonthe Best Presentation in the category of Communication InitiativesandBestPresentationintheIncrease

Consent Rates category at the2012AnnualDonateLifeForum.

Thank you

Our achievements this yearwouldnothavebeenpossiblewithoutthecontinueddemonstrationofourICAREvalues, the professionalism of our clinical staff and clinical leaders;theskillsandpassionofall staff; the strong governance and commitment of our Board members; the leadership of the Executive Management Team; the guidance offered by our CommunityAdvisoryCommitteeand consumer panel; and the generosity and loyalty of our volunteers, auxiliaries, donors and fundraisers.

We continue to collaborate and buildimportantnewpartnershipswithserviceproviders,researchorganisations and universities andwethankourpartnerswhohave helped us deliver our services.

Wewishtoextendoursincereappreciation to our retiring board membersDavidCowlishawandDavidTaylorwhohavebothprovided professional service on the Board.

During2011-2012wealsowelcomedthreenewboardmembersMrCharlesGillies, Mr Ross McClymont and Ms Linda Perry.

WesincerelythankallBoardmembers for their dedication in providing guidance and support toSouthernHealth.


Wealsoacknowledgethestrong support of the Victorian Government,DepartmentofHealthandCommonwealthGovernmentthroughtheirongoing funding of our operations and initiatives.

2011-2012 has been an extremelyexcitingandrewardingyearforSouthernHealthandwehave been immensely proud to lead such a strong organisation.

Barbara Yeoh Chair, Board of Directors

Shelly Park Chief Executive

Community support

AcrossSouthernHealthwearesupported by more than 300 volunteers,whoassistinmanydiverse areas.

Many community members also add their input into advisory committees and consumer panels to help ensure our services remain truly responsive.

Ourfiveauxiliariescontinuedtheirfundraisingwithatotalof $45,250 raised to purchase medical equipment and support theworkofSouthernHealth.Wesincerelythankthehard-workingauxiliarymembers.

Monash Health Foundation

The Monash Health Foundation is responsible for the development of philanthropy acrossSouthernHealth’sservices and facilities.

Grossingfundraisingrevenuein2011-2012 totalled in excess of $2.6 million.

Many generous individual and community donors have supported us throughout the year including:

• $1.2 million in corporate and community partnerships.

• Over $480,000 has been donated through our grants and trusts program.

• Participants in Run Melbourne raised more than $40,000 for MonashHeart and Monash Children’s.

• Bailey’sDayraisedmorethan$275,000 fortheChildren’sCancer Centre (raising over $1.25 million for the Centre in thelast8years).

• TheBerwickOpportunityShopdonated $15,000 to Casey Hospital.


Major supporters• Bayside Blue Healers Charity• Bailey’sDay• Koala Foundation• ZoukiEnterprise• ZoukiMonash

Corporate supporters• AbbottAustralasia• Allianz• Avant• BardAustralia• BayerAustralia• Bayside City Holden• Belmore Nurses Bureau• BerwickOpportunityShop• BrotherhoodDimosAristemnousof

Missinia• Bunnings Dandenong• Bunnings Mentone• Cannon Toyota• CarestreamHealthAustralia• CellCare• Covidien• DandenongCIU• GoodGuys• Haileybury

• HealthSuper• HESTA• HeraldandWeeklyTimes• Hilton Manufacturing• Hospital Promotions• Hush Foundation• Lions Club Dandenong• Lions Club Dingley Village• LionsClubOakleigh• Lions Club Moorabbin• Lions Club Victoria• Lions Club Waverley• Maxxia• Medicare Dandenong• Mesoblast• MissionAustralia• Monash Rotoract Club• MonashSurgicalPrivateHospital• N.Stenning&Co.PtyLtd• Origin Healthcare• Pfizer• Police Credit• Preston Motors• PrimeGroup• QuestServiceApartments• Ricoh• Ride on Entertainment• RitchiesCommunityBenefitProgram• ROMAC• Ronald McDonald House• Rotary Club of Clayton• Rotary Club of Bentleigh Moorabbin• RotaryClubofOakleigh• Rotary Club of Huntingdale• RSLBentleigh• RSLClayton

• RSLHighett• SandringhamPolice• SanofiAventis• SarawakGeneralHospital

Heart Centre• SclerodermaVictoria• Siemens• St.FrancisXavierCollege• StarlightFoundation• Toshiba• VictoriaLawFoundation• Woolworths

Philanthropic supporters• ANZTrustees• CerebralPalsyInternational

Research Foundation• Collier Cahritable Fund• ECBlackwoodCharitableTrust• Hush Foundation • LouisandLesleyNelkenTrustFund• StateTrustees• TheAndrewsFoundation• TheEstateofJohnFrederickWright• The Estate of Robert Neville• The Honda Foundation• TheIanandNellekeClark

Encouragement Fund• The R.E. Ross Trust

Auxiliaries• ClaytonAuxiliary• McCullochHouseAuxiliary• MoorabbinAuxiliary• Monash Kids• SeasonsGroup

Thank you to our supporters


Southern Health provides services to a quarter of metropolitan Melbourne’s population. We also play a significant role in providing regional and state-wide specialist services for Victoria.

Monash Medical Centre Clayton is a 640 bed teaching and research hospital of international standing providing a comprehensive range of specialist surgical, medical, allied health and mental health services to our community.

This tertiary site is a designated national provider of renal and pancreatic transplants, andstatewideproviderofThalassaemiaandchildren’scancerservices.Itisalsothe base for MonashHeart, a centre of excellence in cardiac assessment, treatment and research, and Monash Children’s, the third largest provider of paediatric services inAustralia.Uniquelyofferingmaternityandnewbornservicesintegrated on the one site, Monash Medical Centre Clayton providesoneofVictoria’slargestwomen’shealthservicesthroughMonash Women’s.Itisalsorenownedformen’shealthservices and ambulatory models of care.

McCulloch House, located on site, is a 16 bed facility providing palliative care for people withinourcatchmentareawithadvanced progressive disease.

Dandenong Hospital is a 520 bed acute hospital providing a widerangeofhealthservicestothepeoplelivingandworkingin Dandenong and surrounding areas. The hospital provides a number of general and specialist services. These services include general medical and surgical, an intensive care unit, MonashHeart cardiac care centre, rehabilitation and aged services, pathology, radiology, maternity services, special care nursery, Monash Children’s, outpatient’s,daychemotherapy,home haemodialysis, mental health services and allied health services. Dandenong Hospital also provides specialist services including orthopaedic, plastics, vascular, facio-maxillary, gynaecology, respiratory and infectious diseases.

Casey Hospital is a 243 bed hospital serving one of thefastestgrowingareasinMelbourne’soutereast.Servicesincludeanemergencydepartment, general medical, mental health, rehabilitation, surgical and ambulatory care services, maternity and a special care nursery. The hospital is a provider of paediatric services for Monash Children’s and gives access to the leading cardiac services of MonashHeart.

Monash Medical Centre Moorabbin is a 135 bed hospital incorporating Monash Cancer Centre,oneofVictoria’sleadingcancer treatment centres operatinginpartnershipwithPeter Mac Cancer Centre. The hospital also offers elective surgery, short-stay care and dialysis.HometoVictoria’sfirstPatientSimulationCentre,the hospital plays a major role in the education and training of undergraduate and postgraduate medical students, nurses and allied health professionals. The hospitalhoststheSouthernMelbourneIntegratedCancerServicesandisacentreforresearch, in particular a major contributor to cancer related research.

Cranbourne Integrated Care Centre provides a range of same-day acute and sub-acute services including surgery, renal dialysis, specialist consulting services, regional ophthalmology services and mental health services.Italsoprovidesthelocalcommunitywithaccesstocommunity health services and a community rehabilitation centre.

Our sitesWe provide quality public health care in our community from over 40 care locations across south eastern Melbourne, including major tertiary and secondaryhospitals,agedresidentialcarecentresandanextensivenetworkof rehabilitation, community health and mental health facilities.



Kingston Centre is a 192 bed sub-acute facility specialising in high quality rehabilitation, functional restoration, transitional care, aged care and aged mental health.Itshighlyregardedrehabilitation program focuses on restoring function after illness orinjurywiththefullrangeofallied health services provided to adults of all ages. The centre provides specialist services for older people including aged care assessment, cognitive dementia andmemoryservices.Italsooffers, a falls and balance clinic, pain clinic, clinical gait analysis andcontinenceservice.Itisat the forefront of research into movement and gait disorders, aged mental health and geriatric medicine.

Aged residential care is provided for 165 residents requiringhighcareatAllambeeNursing Home, Cheltenham; ChestnutGardensAgedCare,Doveton; and Yarraman Nursing Home,NoblePark.MooraleighHostel,EastBentleighandAGEastwoodHostel,Cheltenhamare home to 129 residents requiringlowcare.

Community rehabilitation services are provided from centres at Kingston, Clayton,Doveton,Springvale,Dandenong, Cranbourne and Pakenhamandinclients’homesthroughtheRehabilitationInTheHome services.

Community services are provided through a number of services including Community SupportOptions,GreaterDandenong Community Health and Cardinia-Casey Community Health.

Our services place the client at the centre of all interactions. We takeintoaccounttheclient’spersonal preferences, cultural beliefs and values, their family and lifestyle situations.

Our client is an integral member ofthecareteamwhoisinvolvedinalldecisionmaking.Weaimtoempowerandprepareclientstomanage their health and health care.Aparticularfocusisplacedon ensuring access for those withoratriskofpooresthealthstatus and those most in need.

Our staff are located across 11 sites(CranbourneIntegratedCare Centre, Mundaring Drive, Cockatoo,Doveton,Kingston,Berwick,Pakenham,Parkdale,Springvale,ThomasandDavidStreetsDandenong.) Servicesareprovidedateachsite by multi-disciplinary teams of AlliedHealthworkersincludingPhysiotherapists, Podiatrists, Occupational Therapists; Dietitians;Counsellors;SpeechPathologists; Nurses; Health Promotion Practitioners, and Exercise Physiologists.

Wealsorunawidevarietyof groups to support social inclusionandbetterhealth.Selfmanagement is central to our care.Weaimtoempowerandprepare clients to manage their health and health care across all levels of the care continuum.

CommunitySupportOptionsisacommunity care service offering a range of services to assist peoplewhoareagedorhaveadisability. Respite services are also provided to support carers.

Mental health services are provided through hospital and community based facilities. Our comprehensive range of services for children, youth and adults experiencing mental healthissuesincludetheSouthEastAlcoholandDrugService;a telephone psychiatric triage service; community and inpatient perinatal, child and youth services; crisis assessment and treatment teams and enhanced crisis assessment and treatment teams (Monash Medical Centre Clayton, Dandenong Hospital, CaseyHospital);consultationliaison psychiatry; primary mental health teams; community care teams; mobile support and treatment services; acute inpatient care; secure extended care services; perinatal infant service including an inpatient unit; eating disorders services; prevention and recovery care services; community residential and rehabilitation services.



Allied HealthExecutive DirectorMrSivaSivarajah

General ManagerMsDonnaMarkham

• AboriginalHealth• AlliedHealth• AlliedHealthClinicalResearch

Unit• DieteticServices• Exercise Physiology• InterpreterServices• Music Therapy• Occupational Therapy• Orthotics• Physiotherapy• Podiatry• Psychology • SocialWork• SouthEasternCentreAgainstSexualAssault

• SpeechPathology

Ambulatory and Community CareExecutive DirectorMrAdamHorsburgh

General Manager Ms Kate MacRae

• AboriginalHealth• ACCESS• AcquiredBrainInjury:Slowto

Recover Program• Aidstosupportpeoplewitha

disability• AlliedHealth• AssistingCareandHousingfortheAged

• BirthingSupport• Children’sEarlyIntervention• Chronic Disease Management• ClinicalGaitAnalysisService• Cognitive Dementia and MemoryService

• CommunityAccessService• CommunityAgedCarePackagesLinkages

• CommunityHealthServicesCardinia-CaseyandGreaterDandenong

• Community Nursing• CommunityRehabilitation–

Home and Centre Based Care• Continence Clinic• CounsellingandCasework• Diabetes Education and

Management• DomesticViolenceSupport• Falls and Balance Clinic • Family Planning• Financial Counselling• GeneralPractitionerLiaison• HACC-AgedandDisabilitySupport

Our servicesWe uniquely provide our community integrated primary, secondary and tertiary health care in one organisation, offering over 250 different programs and services.

• HealthInformationandReferral

• Health Promotion and Education

• Healthy Mothers Healthy Babies Program

• HospitalInTheHome• HospitalIn-reach–Residential

Care Facilities• HospitalAdmissionsRisk

Program• Housing• In-reach• IntakeServices• LIAISE–supportforpeoplewithacquiredbraininjury

• MobileAccessServicesTeam• Medicare Local Liaison Unit• Men’sHealth• Movement Disorders Clinic• Movement Disorders CommunitySupportProgram

• NeedleSyringeProgram• Optometry• OralHealth(Dental)• OutpatientServicesSpecialist

Clinics• Pain Clinic• PlannedActivityGroups• Post-AcuteCare• PostSub-AcuteCare• Primary Care• Refugee Health• RespiteService• SouthEastAdvocacyandSupport

• SelfManagementPrograms• SexualandReproductive

Health Program• YoungAdultsTransitionService

• Youth Health



Critical Care ProgramExecutive DirectorMrSivaSivarajah

Program DirectorDrBillShearer

Director of NursingMsKarleneWillcocks

• Anaesthesia• Emergency Medicine• IntensiveCare• Operating Theatres• PharmacyServices

Emergency Medicine ProgramExecutive DirectorMrAdamHorsburgh

Program DirectorProfessorGeorgeBraitberg

Director of NursingMsJennineHarbrow

• Casey Hospital Emergency Department



• Paediatric Emergency Medicine

General Medicine ProgramExecutive DirectorMrAdamHorsburgh

Program DirectorProfessor Don Campbell

Director of NursingMs Trish Dito

• GeneralMedicine• AcuteAssessmentUnit• HospitalInTheHome

Specialty ProgramExecutive DirectorMrAdamHorsburgh

Program DirectorProfessorJulianSmith

Director of NursingMsSharonWood

• BreastServices• Cardiac CT• Cardiac Care• Cardiac Rhythm Management• CardiothoracicSurgery• Echocardiography• InterventionalCardiology• MonashHeart• Neurology• Neuropsychology• Neurosurgery• Ophthalmology• Paediatric Cardiology• Stroke• ThoracicSurgery

Specialty Medicine ProgramExecutive DirectorMrSivaSivarajah

Program DirectorAssociateProfessorRichard King

Director of NursingMsLynneBickerstaff• AgedPersonsMentalHealth• AgedPersonsResidential

Care • Clinical Haematology• ClinicalImmunology• Clinical Nutrition and

Metabolism• Cognitive Dementia and MemoryService

• Continence Clinic• Dermatology• Diabetes• Diabetes Education• DiagnosticImaging• Endocrinology• Falls and Balance Clinic • Gastroenterology• GeriatricMedicineOutpatient

Clinic• Haemodialysis• InfectiousDiseasesand

Clinical Epidemiology• InterventionalRadiology• MedicalAssessmentand

Planning Unit• Medical Oncology• MonashAgeingResearch

Centre• Movement Disorders Clinic• Nephrology• Oncology Day Care• Pathology• Peritoneal Dialysis• Radiology• Renal and Pancreatic

Transplantation• RespiratoryandSleepMedicine(Adult)

• Rheumatology• Sub-acuteInpatientServices• SupportiveandPalliativeCare• Thalassaemia• YoungAdultsTransitionService



Surgery ProgramExecutive DirectorMrSivaSivarajah

Medical DirectorMrAlSaunder

Director of NursingMsShirleeGraham

• Audiology• ColorectalSurgeryandStoma

Therapy• EndocrineSurgery• Ear,NoseandThroatSurgery• GeneralSurgery• OralandMaxillofacialSurgery/

Dental • Ophthalmology Unit• OrthopaedicSurgery• Plastic and Reconstructive Surgery

• UpperGastrointestinalandHepatobilary

• Urology• Vascular and Transplant Surgery

Women’s and Children’s Program

Executive DirectorMrSivaSivarajah

Medical DirectorProfessorNickFreezer

Director of NursingMs Kym Forrest

Monash Women’s:• Birth Centre Team • Contraceptive Counselling • DeliverySuite• EndometriosisService• Fetal Diagnostic • GeneralObstetrics• Gynaecology• GynaecologyEndoscopy• GynaecologyOncology• Lactation Consultant • Maternal Fetal Medicine • MenopauseService• Menstrual Management • MidwiferyCareUnit• MidwivesinPartnership• MultiplePregnancyService• ObstetricMetabolicService• Pelvic Floor Disorders• PerinatalServices• Reproductive Medicine• Victorian Fetal Therapy Unit

Monash Children’s:• AdolescentMedicine• Children’sCancerCentre• Cardiology• ChildandAdolescent

Psychiatry • Developmental Disabilities• Dental• Diabetes• Eating Disorders• Emergency• Endocrinology• ENT • ForensicMedicineService• Gastroenterology• GeneralPaediatrics• GeneticServices • GrowthandDevelopment• Haematology• HearingServices• Imaging• InfectiousDiseases• IntensiveCare• MelbourneChildren’sSleep

Centre • MonashChildren’satHome(formerlyCarelink)

• MonashNewborn• Neurology • Neurosurgery • Orthopaedics • Plastics • Quality• Rehabilitation• Renal and Continence Renal

Transplantation• Respiratory Medicine• Rheumatology• Surgery• Urology



Mental Health ProgramExecutive DirectorMsAnneDoherty

OperationalEarly in Life Mental Health Service (ELMHS)Ms Lisa Lynch

AdultMrUmitAgis

Community, Access and Partnerships (CAPS)MrGeorgeOsman

ProfessionalMedical DirectorAssociateProfessorDavid Barton

Director of Nursing MsJakquiBarnfield

Director Allied Health MsElizabethScutt

Director Psychology Dr Melissa Casey

Director Consumer and Carer Relations Ms Vrinda Edan

Adult Mental Health – Acute • AdultAcuteInpatientUnits• CrisisAssessmentandTreatmentTeams(CATT)

• EnhancedCrisisAssessmentandTreatmentTeams(ECATT)

• InpatientUnits• PsychiatricTriageService

Adult Mental Health Services• Clozapine Clinic • CommunityCareUnits(CCUs)

- Doveton and East Bentleigh • Continuing Care Teams (CCT)-MiddleSouth,Clayton,Dandenong, Casey

• MobileSupportandTreatmentTeams(MST)MiddleSouth,Dandenong

• SecureExtendedCareUnit

• PsychiatricAssessmentandRecoveryCareService–SpringvaleandClayton

Early In Life Mental Health Service• AdolescentRecoveryCentre-

Day Program • Community Teams - Dandenong,Casey,Frankston

• EatingDisorderService• Early Psychosis - Recovery

and Prevention of Psychosis Service(RAPPS)

• IntegratedPerinatalandInfantMentalHealthTeam(OutpatientTeam)

• IntensiveMobileYouthOutreachService

• Mother and Baby Unit • SouthernHealthButterfly

Eating Disorder Day Program • SpecialistTeam-incorporating

Hospital Consultation Liaison, Crisis Clinicians (Monash, Dandenong,Casey,Frankston)and Neuro Developmental AssessmentClinic(EndeavourHills)

• SteppingStonesAdolescentInpatientUnitincludingEducationalService-LyndaleSecondarySchool

• SteppingStonesTransition(Stepup/Stepdown)Program

• YouthInpatientUnit

Mental Health Education, Training and Research• Centre for Developmental

Psychiatry and Psychology, Monash University

• Centre for Psychological and Behavioural Medicine, Monash University

• Precept - Nursing Training and Education Team

• SouthernSynergy;SouthernHealthAdultPsychiatryResearch, Training and Evaluation, Monash University

• Tele-psychiatry

Mental Health Consumer and Carer Relations• AdministrationoftheCarerBrokerageFund

• Consumer Consultants• Director of Consumer Carer

Relations • Parent/CarerConsultants

Community Access Partnerships• AcquiredBrainInjuryPrograms• AddictionMedicineUnit-

Hospital Liaison, Outpatients andSharedCare

• AdultCounsellingServices• AdultHospitalConsultation

Liaison - Monash and Dandenong

• Community Development - Mental Health Promotion, GeneralPracticeLiaisonClinicians, Mental Health NursesinGeneralPractices

• Culturally and Linguistically Diverse Community Programs.

• DrinkDrivePrograms• ForensicInterventionUnit• GenderDysphoriaService• KooriAlcoholandDrug

Programs • Needle Exchange Program• Pharmacotherapy Outpatient

Clinic • Primary Mental Health Teams - MiddleSouth,SouthEast

• Regional Dual Diagnosis Program

• SouthEasternAlcoholandOtherDrugsService

• WithdrawalPrograms-Residential Based and Outpatient/HomeBased

• YouthDrugandAlcoholProgram,IncludingSupportedAccommodationandOutreach



Staffnumbers

Category 2011 - 2012NursingServices 4,149Administrative/Clerical 1,389MedicalSupportServices 1,044HotelandAlliedServices 846MedicalOfficers 180HospitalMedicalOfficers 851SessionalMedicalOfficers 256AncilliarySupportServices* 756TOTAL 9,471

Full time equivalent staff at Southern Health and Jessie McPherson Private Hospital as at 30 June 2012.

Please note the 2011-2012 full time equivalent staff numbers includes long service leave. If 2010-2011 figures had included long service leave the total would have been 9,550.

* Ancilliary Support Services was reported under Medical and Support in the 2010-2011 financial year.

Our staffOur staff strive to deliver the very best patient centred care to our community.

Occupational health and safety

Duringthe2011-2012period,overallhealthandsafetyperformanceimprovementbegantoplateauwithaslightincreaseinworkcoverclaimsexperiencedwhencomparedagainstthepreviousyear.Torespondtothischallenge,anewthreeyearOccupationalHealthandSafety(OHS)riskmanagementfocussedstrategyhasbeendeveloped.TheOHSmanagementsystem,alongwiththeauditandinspectionprogramhasbeenrevisedandupdatedandkeyrisks,suchasmanualhandlingandoccupationalviolencenowhavededicatedimprovement programs.



Category 2010 - 2011Nursing 4,174Administrative/Clerical 1,353MedicalandSupport 1,837HotelandAllied 841SeniorMedicalStaff 183HospitalMedicalOfficers 859SessionalMedical 249TOTAL 9,496

WorkCoverclaims

2011 - 2012

2010 - 2011

2009 - 2010

2008 - 2009

2007-2008

2006 - 20077

2005 - 2006

2004 - 2005

2003 - 2004

Number of standard claims

166 151 152 165 174 171 184 164 155

Claims per $ million or remuneration

0.23 0.22 0.24 0.303 0.333 0.344 0.396 0.396 0.392

Clinical governance

ClinicalgovernanceisthesystembywhichtheSouthernHealth Board, managers and clinicians share responsibility andareheldaccountableforpatientcare,minimisingriskto consumers and continuously monitoring and improving thequalityofcare.Theclinicalgovernanceframeworkisimplementedthroughtheorganisation’smanagementstructure, job descriptions and supporting committee structures.ThisframeworkcomplementsothergovernanceframeworksincludingtheOccupationalHealthandSafetyFramework.

Board of DirectorsThe Board of Directors of SouthernHealthisappointedbytheGovernorinCouncilontherecommendation of the Minister forHealthinaccordancewiththeHealthServicesAct1988.The functions of the Board are:• To monitor the performance of SouthernHealth.

• To appoint and determine the employment terms (including remuneration)ofaChiefExecutive.

• To oversee the management of SouthernHealthandmonitorthe performance of the Chief Executive.

• To develop statements of priorities and strategic plans fortheoperationofSouthernHealth and monitor their compliance.

• Todevelopfinancialandbusiness plans, strategies and budgets to ensure accountable andefficientprovisionofhealthservicesbySouthernHealthanditslongtermfinancialviability,aswellastoensurethey are adhered to.

• To establish and maintain effective systems to ensure that the health services meet the needs of the community servedbySouthernHealthandthattheviewsofusersandproviders of health services are takenintoaccount.

• ToensurethatSouthernHealthoperateswithinitsbudgetandthat its systems accurately reflectitsfinancialpositionandviability.

Southern Health is a public health service; a body corporate established under Section 65P of the Health Services Act 1988 as amended in 2004, and listed in Schedule 5 of that Act.

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

Theclinicalgovernanceframeworkisbasedaroundfourkeyelements:

1 Leadership: Managersandleaderswithintheorganisationhaveclearresponsibilities, accountabilities and deliverables expressed in their position descriptions. Business and quality planning throughout all sectors of the health service ensure that our strategic objectives translate into practice. 2Riskmanagement: Robustriskmanagementsystemspromotetheidentification,analysisandmitigationofriskasacorebusinessfunctionwithineachareaandatanorganisationwidelevel.

3Stakeholderrelationships: AreintegratedandsupportedthroughSouthernHealth’sCommunityParticipationPlan,CommunityAdvisoryCommittee,PrimaryCareandPopulationHealthAdvisoryCommitteeandthevariousconsumerfeedbacknetworksandrelationswithinternalandexternalcommunicationspolicies and planning.

4 Performance enhancement: Ismonitoredthroughperformancemanagementsystemsatboth individual and team levels. Key clinical and performance indicators are monitored throughout all stages of the governance process.

Governance


Governance

• To ensure effective and accountable systems are in place to monitor and improve and quality and effectiveness of health services provided by SouthernHealth.

• To ensure that any problems identifiedwiththequalityandeffectiveness of health services are addressed in a timely mannerandthatSouthernHealth strives to continuously improve quality and foster innovation.

• Todeveloparrangementswithother agencies and health service providers to enable effectiveandefficientservicedelivery and continuity of care.

• To establish the organisational structure, including the management structure, of SouthernHealth.

• To establish and ensure the effectiveness of a Finance Committee, an AuditCommitteeandaQuality Committee and other Committees considered appropriate.

• To facilitate health research and education and any other functions conferred on the BoardbyorundertheAct.

Board committeesThefollowingcommitteessupport the functions of the Board of Directors:

AuditCommittee TheroleoftheAuditCommitteeis to advise the Board of Directors on audit matters and mattersrelatingtothefinancial,accounting and legislative compliance and the operational effectivenessandefficiencyofSouthernHealth.TheCommitteealso advises the Board on thelevelofbusinessriskorexposuretowhichSouthernHealth might be subject and oversight of internal and external audit activities.

Finance CommitteeThe role of the Finance Committee is to advise the Board ofDirectorsonfinancialmattersand to assist in the oversight of financialperformance.

TheFinanceCommitteereviewsandmakesreccomendationstotheBoardregardingfinancialstrategy,financialpolicies,annual operating and capital budgets,cashflowandbusinessplanstoensurealignmentwithkeystrategicprioritiesandperformance objectives.

TheCommittteealsohasakeyrole in assisting the Board to monitorfinancialperformanceandfinancialrisk.

Quality CommitteeThe purpose of the Quality Committee is to support the Board’sfunctionofprovidingstrategic leadership in relation to the clinical governance of quality andsafetyatSouthernHealth.Itservestoensure,onbehalfoftheBoard,thatthefollowingbroadobjectivesarefulfilled:• Effective and accountable

systems are in place to monitor and improve the quality and effectiveness of health services providedbySouthernHealth.

• Anyproblemsidentifiedwiththe quality or effectiveness of the health services provided are addressed in a timely manner.

• SouthernHealthcontinuouslystrives to improve the quality of the health services it provides and to foster innovation.

Remuneration CommitteeThe principal role of the Remuneration Committee is to advise the Board of Directors on matters relating to the organisation’sremunerationpolicies and practices.Inaddition,theRemunerationCommittee provides oversight

withrespecttosuccessionplanning for the Chief Executive and senior executive positions.

Board advisory committeesCommunityAdvisoryCommitteeTheCommunityAdvisoryCommittee assists the Board to appropriately integrate consumerandcommunityviewsatalllevelsofSouthernHealth’soperations. The Committee has the responsibility to advise on governance, policy and strategy in relation to community participation and its impact on health service outcomes.

ThetwokeyrolesoftheCommunityAdvisoryCommitteeare to provide direction and leadership in relation to the integration of consumer, carer andcommunityviewsintoall levels of health service operations, planning and policy development and to advocate to the Board of Directors on behalf of the community, consumers and carers.

Primary Care and Population HealthAdvisoryCommitteeThe Primary Care and PopulationHealthAdvisoryCommittee provides strategic advice to the Board on matters specifictoprimarycareandpopulationhealthwithaparticular focus on improving the health status of our community in areas such as the hospital –primarycareinterface,mentalhealthwellbeing,healthpromotion, health independence programs, research and education and the health of refugees,AboriginalandTorresStraightIslandersandculturallyand linguistically diverse communities.


Ms Barbara Yeoh -BSc(Hons),FAICD• Chair of the Southern Health Board • Chair, Remuneration Committee• Member, Finance Committee • Term of appointment: July 2009 - current

Ms Yeoh hasextensivecareerexperienceinthefinancesectorandasadirector,havingservedonnumerousboardsacrossabroadrangeofsectors,includinghealth,finance,education,infrastructureandtransport.Shehasalsoheldawidevarietyofstatutoryappointmentsonspecialpurposecommitteesandpanels.MsYeohiscurrentlyChairoftheVictorianCouncilofBoardChairs(HealthServices),DirectoroftheVictoriaStateEmergencyService,DeputyChairoftheCivilAviationSafetyAuthorityAuditCommitteeandMemberoftheStatutoryFishingRightsAllocationReviewPanel(Commonwealth).MsYeohisaPrincipalAssociateofPhillipsKPA.

Dr Errol Katz-MBBS(Hons),LLB(Hons),MPP,GAICD• Chair, Board Quality Committee• Member, Remuneration Committee• Member, Primary Care and Population Health Advisory Committee• Term of appointment: July 2010 - current

Dr Katz returnstoSouthernHealthasaBoardmember,havingbeenamedicalstudentatMonashMedicalCentreClayton.Hecurrentlyworksinprivateequityandinvestments.PastexperienceincludesCo-InvestorCapitalPartners,TheBostonConsultingGroup,VisyIndustries,andTheAlfredHospital,whereheworkedasadoctor.HewaspreviouslyaBoardmemberatDentalHealthServicesVictoria,wherehewasChairofthePopulationHealthCommittee.DrKatzisamemberoftheBoardofPrimaryHealthCareLimited,andischairofthePrimaryRiskCommittee.

Mr David Cowlishaw-FAIBF

• Deputy Chair, Southern Health Board of Directors• Chair, Audit Committee• Member, Board of Kitaya Holdings Pty Ltd*• Member, Community Advisory Committee• Term of appointment: July 2003 - June 2012

Mr CowlishawretiredfromtheNationalAustraliaBankin2001followinganextensiveandvariedcareer.His senior appointments included: District Manager Metropolitan Melbourne, Head of Credit Victoria andTasmania,GeneralManageroftheNationalAustraliaBank’sUSoperationsbasedinNewYork,ManagingDirectorNationalAustraliaTrustees.

Mr Charles Gillies -BSc/BA,MBA,SFFin,GAICD• Member, Finance Committee• Member, Board of Kitaya Holdings Pty Ltd*• Term of appointment: July 2011 - current

Mr Gillies isco-founderofJolimontCapitalwhichspecialisesininvestingintechnologycompanies.ThesecompaniesaregenerallyAustralianbasedandcompeteinfastmoving,highlycompetitivetechnologymarkets.Asanactiveinvestorhimselfhisapproachhasbeentoworkcloselywithmanagement to develop a plan to create economic value. He has been Director and Chairman of anumberofinvestmentsandhasworkedcloselywithCEOsandmanagementteams,developingstrategies,settingobjectivesandperformancetargets.MrGilliesiscurrentlyChairmanofHumanWare.




Mr Ross McClymont - BCom, LLB • Member, Audit Committee• Member, Board Quality Committee• Term of appointment: July 2011 - current

Mr McClymontisapartnerofgloballawfirmAshurst,andleadsthefirm’srestructuringandinsolvencypractiseinMelbourne.Hehasnearly20yearsexperienceinhischosenfield,andregularlyadvisesboardsofbothlistedandunlistedcompanieswithrespecttoissuesincludingdirectors’duties,corporategovernance, continuous disclosure obligations and solvency matters. Mr McClymont is a National DirectoroftheInsolvencyPractitionersAssociationofAustraliaandamemberoftheInsolvencyandReconstructionLawCommitteeoftheLawCouncilofAustralia.

Ms Helen Owens -BEc(Hons),MEc• Chair, Primary Care and Population Health Advisory Committee• Member, Board Quality Committee• Term of appointment: July 2006 - current

Ms Owensisahealtheconomistandhasspentmuchofhercareerinthepublicsector.SheisaDirectorof MediVac Limited. Previous positions held include Commissioner, Productivity Commission; Member, CommonwealthGrantsCommission;MemberoftheConsultativeCounciloftheVictorianCancerAgencyand expert strategic advisor to the Victorian Department of Premier and Cabinet on health reform. ShehasalsoworkedasanindependentconsultantandhasheldanumberofacademicpositionsatMonashandMelbourneUniversities,includingAssociateProfessor,NationalCentreforHealthProgramEvaluation, Monash University.

Ms Linda Perry -BAcc,ACA • Member, Community Advisory Committee• Member, Audit Committee• Term of appointment: July 2011 - current

Ms Perry hasworkedformorethan20yearsinleadershipandstrategyroleswithintheprofessionalservicesindustryinaudit,businessdevelopment,marketingandcommunications.SheisaCharteredAccountantandauditorwithskillsinfinance,audit,riskmanagementandcorporategovernance. MsPerryhasworkedatDeloittefor14yearsandhasbeenaPartnerofWilliamBuckandBDO.Sheiscurrently an advisory board member of Enterprise 500 Victoria.

Mr David Taylor -BAEcon,DPM,FAICD• Chair, Finance Committee• Member, Board of Kitaya Holdings Pty Ltd*• Term of appointment: July 2010 – June 2012

Mr Taylor hasextensivecommercialexperienceinbankingandmarketing.SinceretiringasheadoftheBankWestBusinessBank,hehasprogressedacareerincorporategovernancewithappointmentstothe boards of listed and unlisted public companies and government business enterprises, including Chair ofboththeWesternAustralianForestProductsCommissionandthePerthMarketAuthority.MrTayloriscurrentlyanon-executivedirectorontheboardofAgrifoodSkillsAustraliaLtd.

Ms Debbie Williams -GAICD,MBA,ME,BCom,GradDipHealthServicesMgmt• Member, Finance Committee• Member, Primary Care and Population Health Advisory Committee• Term of appointment: July 2009 - current

Ms Williams isahealthcarestrategyconsultantwhobringsextensiveexperienceinhealthcaremanagement, corporate governance, business strategy management, mental health management and financialmanagement.MsWilliamswasamemberoftheBoardofInnerEastMentalHealthServicesAssociationandChairofitsBoard’sFinanceandRiskManagementCommitteeandisPresidentoftheMoonee Valley Toy Library.

[*KitayaHoldingsPtyLtdoperatesJessieMcPhersonPrivateHospital.]


Chief Operating Officer

Executive Director Strategy&Operations

Executive Director MedicalServicesand Quality

Executive Director Nursing&Midwifery&SupportServices

Siva Sivarajah• AlliedHealth• PatientFlow&Access• ClinicalSupportServices

• Major facilities:• Monash Medical Centre

Clayton• Monash Medical Centre

Moorabbin• Dandenong Hospital• Casey Hospital• Kingston Centre• CranbourneIntegrated

Care Centre• Programs

• ResidentialAgedCare• Critical Care• Women’sandChildren’s• Surgery• SpecialtyMedicine

• Capital&Infrastructure• EngineeringServices

Adam Horsburgh• Strategy&Planning• Organisational InnovationandRedesign

• Jessie McPherson Private Hospital

• Ambulatory&Community Care

• Programs• GeneralMedicine• Emergency• Specialty

Wayne Ramsey• MedicalWorkforce• Medical Education• Quality• Consumer Complaints• Research Directorate• SimulationCentre• Centre for Clinical

Effectiveness• Library

Professional Governance• MedicalWorkforce

Cheyne Chalmers• Nursing&MidwiferyStrategicDirectorate

• Nursing&MidwiferyEducation&Strategy

• InfectionControl• SupportServices• Emergency

Management• SouthernHealth

Bureau

Professional Governance• Nursing&Midwifery

Chief Executive

Shelly Park

OfficeoftheChiefExecutive

Corporate CounselJohnSnowdon

Executive Director Financial & Business Improvement & ProcurementJohnSutherland

General Manager Allied Health (Professional Governance)DonnaMarkham

Chief Information OfficerPhilip Nesci

AdvisoryCommittees

CommunityPrimaryCare&PopulationHealth

Board of Directors

Chair, Barbara YeohDavidCowlishawCharlesGilliesErrol KatzRoss McClymontHelenOwensLinda PerryDavid TaylorDebbie Williams

Board Committees

AuditChair,DavidCowlishaw

Ross McClymontLinda PerryJohnThompson(independentmember)FinanceQualityRemuneration

Organisational structureas at 30 June 2012


Organisational structure as at 30 June 2012

Executive Director Mental Health

Executive Director Human Resources

Executive Director Finance

Executive Director PublicAffairs&Communication

Basil Ireland• Finance• Contracts Coordination• Business Managers ProfessionalSupport

Fiona Prestedge• Human Resources

Consulting• OccupationalHealth&Safety

• Organisational Development&Learning

• Recruitment&Retention

• IndustrialRelations• Payroll

Anne DohertyMental Health Program:• Adult• Early in Life Mental HealthService

• Community&Rehabilitation

• Alcohol&Drugs• Mental Heath Education,Training&Research Centre

Professional Governance• Psychology

Andrew Williamson• Media Relations• Monash Health

Foundation • External

Communication• Internal

Communication• Community Relations• Volunteers&Auxiliaries

• Art&HistoricalCollections


Compliance with the Building Act 1993

Our facilities are managed through siteinspections,riskassessmentsandindependentaudits,withcomprehensive contracts in place tomaintaintheEssentialSafetyMeasures and annual compliance reporting by independent auditors.

Building standards and condition assessmentsThe condition of our buildings are assessed through site inspections and condition audits by architects and consultant engineers, on an as needs basis. Fire audits and riskassessmentsareundertakenbyconsultantfireengineerstocomplywiththeDepartmentofHealthFireRiskManagementEngineeringGuidelinesSeries7.

Recommendationsfromfireauditsare actioned through a series of projects developed in conjunction withtheDepartmentofHealthtomaintainahighdegreeoffiresafety.Allbed-basedfacilitiesareauditedinfiveyearlycycles.

Fire engineering consultants and registered building surveyors wereappointedthroughacomprehensive tendering process tocarryoutFireSafetyAuditsofall overnight bed-based facilities in July 2012. There are 12 facilities in this portfolio and the audits are expected to be completed in November 2012.

Essential safety measures maintenance Contracts are in place to maintain all essential safety measures elements at major sites and minorsitesownedbySouthernHealth.Auditswereperformedatthese sites by registered building surveyors to ensure compliance withessentialsafetymeasuresmaintenanceregulations.Actionplanstorectifydefectsidentifiedduring the audits are currently inplace.Inaccordancewithregulatory requirements, service and maintenance records are kepttoenablecompletionofanannual essential safety measures reportforallpropertiesowned

bySouthernHealth.Thisisconfirmationthatallessentialsafety measures are operational at the required level of performance andtheintegrityofthefiresafetyof these facilities. Records and reports are retained on the premises for inspection by relevant authorities.

Risk assessment VictorianManagedInsuranceAuthority(VMIA)conductsdetailedSiteRiskAssessments(SRS)atMonash Medical Centre Clayton and Moorabbin, Kingston Centre, Dandenong Hospital, Cranbourne IntegratedCareCentreandChestnutGardens.RisktreatmentoptionsgeneratedfromtheSRSaremonitoredthroughriskactionplans until they are completed.

Freedom of Information Act 1982 SummaryofrequestsreceivedundertheActbetween1July2011to 30 June 2012.

Number of requests 2028Access in full 1448Access in part 39Access denied in full 0Other 18Applicationfeenotpaid 142(CancelledApplication) 120

Exemptions cited – total 46Clause: 25A(1) 431(1)(a) 133(1) 1433(4) 134(1)(a) 135(1)(a) 235(1)(b) 24

Fees and charges ApplicationFeescollected-$34,794.40

ApplicationFeeswaived-$14,688.80

Copy charges collected - $37,635.50

Copychargeswaived-$13,856.10

Initial decision makersVickyHammond,LegalCounsel;JohnSnowdon,Corporate

Counsel;BrookeWhiteside,FOIOperations Manager; Maija Dimits, FOIAdvisor;LornaKnight,MedicalRecordsClerk(FOIUnit);JanCremer,MedicalRecordsClerk(FOIUnit).

Internal reviewersVickyHammond,LegalCounsel;JohnSnowdon,CorporateCounsel.

Merit and equity Merit and equity principles are encompassed in employment and diversity management activities throughoutSouthernHealth.

Whistleblowers Protection Act 2001 SouthernHealthhadnonotificationsundertheWhistleblowers’ProtectionAct2001 during the year ended 30 June 2012.

National Competition PolicySouthernHealthcontinuedtocomplywiththeVictorianGovernment’sCompetitiveNeutralityPolicy.Inaddition,theVictorianGovernment’sNeutralityPricing Principles for all relevant business activities have been appliedbySouthernHealthsince1July 1988.

Victorian Industry Participation PolicySouthernHealthcomplieswiththeintentoftheVictorianIndustryParticipationPolicyAct2003whichrequires,whereverpossible,localindustry participation in supplies; takingintoconsiderationtheprinciple of value for money and transparent tendering processes.

Additional InformationIncompliancewiththerequirementsoftheStandingDirections of the Minister for Finance, details in respect of the items listed in Finance Regulation 22C have been retained by SouthernHealthandareavailableto the relevant Minister, members of Parliament and the public on request (subject to the freedom of information requirements, if applicable).

Statutorycompliance


Ministerial DirectionsReport of Operations

Charter and purpose FRD 22C Manner of establishment and the relevant Minister

FRD 22C Objectives, functions, powersandduties

FRD 22C Nature and range of services provided

Management and structure FRD 22C Organisational structure

Financial and other information FRD 10 Disclosure index

FRD 11 Disclosure of ex-gratia payments

FRD 15B Executiveofficerdisclosures

FRD 21A Responsible person and executiveofficerdisclosures

FRD 22CApplicationandoperationof FreedomofInformationAct1982

FRD 22CApplicationandoperationof WhistleblowersProtectionAct2001

FRD 22CCompliancewithbuildingand maintenance provisions of BuildingAct1993

FRD 22C Details of consultancies over $10,000

FRD 22C Details of consultancies under $10,000

FRD 22C Major changes or factors affecting performance

FRD 22C Occupational health and safety

FRD 22C Operational and budgetary objectives and performance against objectives

FRD 22CSignificantchangesinfinancial position during the year

FRD 22CStatementofavailabilityof other information

FRD 22CStatementofNational Competition Policy

FRD 22C Subsequentevents

FRD 22CSummaryoffinancialresultsforthe year

FRD 22CWorkforceDataDisclosures including a statement on the application of employment and conduct principles

FRD 22C Environmental performance

FRD 25VictorianIndustryParticipation Policy disclosures

SD 4.2(j)Sign-offrequirements

SD 3.4.13AttestationonDataIntegrity

SD 4.5.5AttestationonCompliance withAustralian/NewZealand RiskManagementStandard

Financial Statements

Financial statements required under Part 7 of the FMA

SD4.2(a)Statementofchangesinequity

SD4.2(b)Operatingstatement

SD4.2(b)Balancesheet

SD4.2(b)Cashflowstatement

OtherrequirementsunderStandingDirections4.2

SD4.2(a)CompliancewithAustralian accounting standards and other authoritative pronouncements

SD4.2(c)Accountableofficer’sdeclaration

SD4.2(c)CompliancewithMinisterialDirections

SD4.2(d)Roundingofamounts

Legislation

VictorianIndustryParticipationPolicyAct2003

FinancialManagementAct1994

The Annual Report of Southern Health is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identification of the Department’s compliance with statutory disclosure requirements.

Legislation Page Legislation Page

2-35

18

4 11

22

25

NA

111

110

24

24

24

33 33

35

17

27

35

24

24

112

33

17

724

4

26

26

42

40 41

43 44

37

44

62 24

38

Disclosure index


Attestations


Keyfinancialandservice performance reporting

StatementofPriorities: Part APart A: StrategicPrioritiesfor2011-2012

Strategic Priorities Deliverables OutcomesAchieve against the strategic goals within the Southern Health Strategic Plan 2010-2013

• AchievemilestonesoutlinedwithintheSouthernHealthBusinessPlan2011-2012.Thiswilldemonstrateachievement against each of the SouthernHealthstrategicgoalsforthe year.

• FinalisetheSouthernHealthInformationTechnologyStrategicPlan.

• Therewere47initiativesthatweredue for completion in quarter four. 39 have been achieved and eight initiativesareinprogressandwillbecompletedwithinthe2012-2013financialyear.

Reduce and prevent unnecessary hospital admissions by promoting the provision of care in community settings where appropriate

• CompletetheSouthEastGrowthCorridorServicePlan–ensuringnon hospital based services meet the needs of the diverse communityintheSouthEastregion of Melbourne (this is beingundertakeninpartnershipwithlocalgovernmentsandtheDandenongCaseyGeneralPracticeAssociation).

• TheSteeringCommittee,Executive Management Team and Board of Directors agreed for this project to extend and be completed by December 2012. ThiswillenablefullengagementwiththethreeLocalGovernmentAreasinthefinalcomponentofthe plan.

Enhance individuals and families ability to make decisions that improve their health status and reduce their risk of ill health by improving health literacy

• Further develop and enhance the SouthernHealthPatientCentredCareStrategybyfinalisingthestrategyandkeyperformanceindicators for this ongoing program ofwork.

• Complete the 2011-2012 initiatives intheSouthernHealth‘HealthPromotionPlan’.

• Complete the 2011-2012 initiatives intheSouthernHealthPrimaryCare and Population Health workplan.

• Thestrategyandkeyperformanceindicators for the patient centred careprogramofworkisontrack.

• TheSouthernHealth‘HealthPromotionPlan’isontrack.

• TheinitiativeswithintheSouthernHealth Primary Care and PopulationHealthworkplanareontrack.

Finalise proposed capital development business cases

• Complete the documentation of fourprojectsthatareseekingcapital funding.

• Allrequestedbusinesscaseswerecompleted.

Expand Sub-Acute Services at Casey Hospital

• Finalise the model of care by September2011.

• Commence the development of 30 sub-acute beds at Casey Hospital.

• Theprogramofworkismeetingagreed project milestones.


Keyfinancialandserviceperformancereporting

StatementofPriorities: Part A (cont.)

Strategic Priorities Deliverables OutcomesExplore the expansion of Casey Hospital

• Complete master planning for Casey Hospital by March 2012.

• Commence the business case by June 2012 for expansion of Casey Hospital.

• The Casey Hospital and Dandenong Hospital masterplan is complete. The Department of HealthandSouthernHealthhavejointly agreed that a business case willnotbesubmittedinDecember2012 due to the priority business casesofMonashChildren’sandClayton Level 2.

Continue to develop partnerships for the provision of cancer care

• ContinuetoworkeffectivelywithSouthernMelbourneIntegratedCancerService,PaediatricIntegratedCancerServicesandMonash Comprehensive Cancer Consortium in the development of plans.

• ImplementrelevantinitiativesfromtheVictorianCancerActionPlan.

• Thisprogramofworkisontrack.

Strengthenprocessesthatimprovethecoordination of specialist outpatient care

• Commence reporting of public hospital specialist outpatient clinics,inlinewithDepartmentofHealth requirements.

• IncreaseactivityofSouthernHealth diabetes nurse educators.


Continue to improve the quality and safetycultureatSouthernHealth

• Continue to implement zero preventable harm strategy (Target Zero):reportprogressandoutcomes to Board of Directors monthly.

• Implementandembedthe‘BecauseMentalHealthMatters’Strategy2009-2019andtheNationalStandardsacrossourservices to improve the delivery of patient centred care to our clients.


Continue to improve access to emergencyservicesatSouthernHealth

• Improveemergencypatientflow,inclusiveofEmergencyDepartmentand‘wholeofhospital’systems.

• Thisprogramofwork–‘FourHoursWillBeOurs’isunderway.


StatementofPriorities: Part BPart B: Financial performance

Operating result 2011-2012 target 2011-2012 actualsAnnualOperatingresult($m) -3.00 -2.88

Cash management/liquidity 2011-2012 target 2011-2012 actualsCreditors < 60 days 52Debtors < 60 days 58

Service performanceWIES activity performance 2011-2012 target 2011-2012 actualsWlES(publicandprivate)performancetotarget(%) 98 to 102 99

Elective Surgery 2011-2012 target 2011-2012 actualsElectivesurgeryadmissions–quarter1 5,650 5,925Electivesurgeryadmissions–quarter2 5,600 5,369Electivesurgeryadmissions–quarter3 4,525 4,909Electivesurgeryadmissions–quarter4 4,625 5,398

Critical Care 2011-2012 target 2011-2012 actualsNumberofdaysbelowICUminimumoperatingcapacity–MonashMedicalCentreClayton

0 54

NumberofdaysbelowICUminimumoperatingcapacity–Dandenong Hospital

0 0

NumberofdaysbelowNlCUusualoperatingcapacityandflexcapacity

0 29

Quality and Safety 2011-2012 target 2011-2012 actualsHealth service accreditation Full compliance Full complianceResidential aged care accreditation Full compliance Full complianceCleaning standards Full compliance Full complianceSubmissionofdatatoVICNISS(%) 100 100VICNISSInfectionClinicalIndicators No Outliers No OutliersHandHygieneProgramcompliance(%) 65 70SABrate(OBDs) Lessthan2/10,000 1.07VictorianPatientSatisfactionMonitor(VPSM) 73 76.1

Maternity 2011-2012 target 2011-2012 actualsPostnatalhomecare(%) 100 98.7

Mental Health 2011-2012 target 2011-2012 actuals28dayreadmissionrate(%) Less than 14 12.8Post-dischargefollow-uprate(%) More than 75 74Seclusionrate(OBDs) Lessthan20/1,000 13



StatementofPriorities: Part B (cont.)Part B: Financialperformance(cont.)

Access performanceEmergency care 2011-2012

target2011-2012

actualsCasey HospitalPercentageofoperatingtimeonambulancebypass(%) < 3 N/APercentageofemergencypatientpresentationswithlengthofstayoflessthan4hours(%)

> 72 68.8

Percentageofemergencypatientsadmittedtoaninpatientbedwithin8hours(%) > 80 77.2Percentageofnon-admittedemergencypatientswithlengthofstayoflessthan4hours(%)

> 80 7777777.2

Numberofpatientswithlengthofstayintheemergencydepartmentgreaterthan24hours

0 11

PercentageofTriageCategory1emergencypatientsseenimmediately(%) 100 100PercentageofTriageCategory2emergencypatientsseenwithin10minutes(%) > 80 93.6PercentageofTriageCategory3emergencypatientsseenwithin30minutes(%) > 75 74.9Dandenong HospitalPercentageofoperatingtimeonambulancebypass(%) < 3 0.7Percentageofemergencypatientpresentationswithlengthofstayoflessthan4hours(%)

> 72 55.3


> 80 68


0 25

PercentageofTriageCategory1emergencypatientsseenimmediately(%) 100 100PercentageofTriageCategory2emergencypatientsseenwithin10minutes(%) > 80 87.9PercentageofTriageCategory3emergencypatientsseenwithin30minutes(%) > 75 72.9Monash Medical Centre ClaytonPercentageofoperatingtimeonambulancebypass(%) < 3 1.1Percentageofemergencypatientpresentationswithlengthofstayoflessthan4hours(%)

> 72 61


> 80 77.2


0 11

PercentageofTriageCategory1emergencypatientsseenimmediately(%) 100 100PercentageofTriageCategory2emergencypatientsseenwithin10minutes(%) > 80 92.8PercentageofTriageCategory3emergencypatientsseenwithin30minutes(%) > 75 68.7

Elective surgery 2011-2012 target

2011-2012 actuals

PercentageofCategory1electivepatientsadmittedwithin30days(%) 100 100PercentageofCategory2electivesurgerypatientswaitinglessthan90days(%) 80 55.2PercentageofCategory3electivesurgerypatientswaitinglessthan365days(%) 90 91.3Numberofpatientsontheelectivesurgerywaitinglist 6,685 8,638NumberofHospitalInitiatedPostponements(HiPs)per100scheduledadmissions 8 6



StatementofPriorities: Part CPart C: Activityandfunding

Activity 2011-2012 activity achieved

Acute InpatientWeighted Inlier Equivalent Separations (WIES)WIESPublic 124,826WIESPrivate 10,657Total WIES (Public and Private) 135,483WIESRenal 2,076WIESDVA 953WIESTAC 651WIES TOTAL 139,163Sub Acute InpatientCRAFT 903RehabL1(nonDVA) 160RehabL2(nonDVA) 4,813Rehab - Paediatric 533GEM(nonDVA) 1,281PalliativeCare-Inpatient 6,084TransitionCare(nonDVA)-beddays 17,048Restorative Care 784RehabL2(DVA) 686GEM(DVA) 1,281PalliativeCare–DVA 128AmbulatoryVACS-AlliedHealth 70,129VACS-Variable 202,227TransitionCare(nonDVA)-Homedays 8,833SACS-NonDVA 62,396SACS-Paediatric 3,418PostAcuteCare 5,594SACS(DVA) 397PostAcuteCare–DVA 23Aged CareAgedCareAssessmentService(ACAS) 3,445ResidentialAgedCare 60,249



Activity 2011-2012 activity achieved

Mental HealthMH–Inpatient 52,272MH–Ambulatory 89,821

Community Health/Primary Care

Community Health · Direct Care 79,213CommunityHealth/PrimaryCarePrograms 195,149

StatementofPriorities: Part C (cont.)Part C: Activityandfunding(cont.)




Financial Indicators

2011-2012$’000

2010-2011$’000

2009-2010$’000

2008-2009$’000

2007-2008$’000

Total Expenses 1,318,318 1,267,748 1,173,541 1,056,921 954,215Total Revenue 1,344,046 1,268,565 1,144,842 1,052,668 958,039Net Result 25,728 817 (28,698) (4,253) 3,824RetainedSurplus/(AccumulatedDeficit)

(68,470) (94,362) (94,743) (67,698) (63,241)

TotalAssets 1,048,724 989,975 971,186 972,779 727,341Total Liabilities 392,779 359,758 341,786 314,514 294,445NetAssets 655,945 630,217 629,400 658,265 432,896Total Equity 655,945 630,217 629,400 658,265 432,896

Average Collection Days

2011-2012 2010-2011 2009-2010 2008-2009

Private 58 63 59 60TransportAccidentCommission(TAC)

98 166 74 104

VictorianWorkcoverAuthority(VWA)

142 102 140 150

Nursing Home 31 29 26 30

Inpatient debtors ageing

< 30 Days$’000

31 - 60 Days$’000

61 - 90 Days$’000

> 90 Days$’000

2011-2012$’000

2010-2011$’000

2009-2010$’000

TAC - - - - 0 260 137 Private 2.045 420 146 1,561 4,172 10,040 8,374 VWA 28 20 - 194 242 497 506 Nursing Home 166 44 31 159 400 660 328 Total 2,239 484 177 1,914 4,814 11,457 9,345

Consultants 2011-2012$’000

2010-2011 $’000

2009-2010$’000

Consultants’cost 1,619,002 1,867,162 1,835,840 Total Number of Consultants

121 132 133



Consultants paid over $10,000

Purpose of consultancy

Start date

End date Total approved project fee$’000

Expenditure $’000

Future expenditure $’000

Ernst&Young InternalAuditor 1/07/11 30/06/12 380 380 - ResolutionsAustraliaPtyLtd

EmployeeAssistanceProgram

1/07/11 30/06/12 170 170 -

The Trustee for the Batman Family Trust

FundingReviews 1/07/11 30/06/12 78 78 -

Kronos Payroll system 1/07/11 30/06/12 58 58 - AgedCareStandardsandAccreditationAgency

Accreditations 1/03/12 31/03/12 54 54 -

Philip Chun Pty Ltd ESMaudit 1/07/11 30/06/12 38 38 - Compass Consulting Services

Training/coaching 1/07/11 30/06/12 28 28 -

IntelogPtyLtd Clinical 1/03/12 30/06/12 22 22 - StrategicPublicRelations Public Relations 1/07/11 30/08/11 21 21 - SheilaHurstConsulting Workforce

development1/07/11 30/06/12 20 20 -

LB&RBFamilyTrust Clinical 1/07/11 30/06/12 19 19 - CHW Consulting Pty Ltd ITServices 1/12/11 30/06/12 19 19 - Edmore Pty Ltd Clinical 1/11/11 30/11/11 17 17 - DeborahEllks Clinical 1/05/12 31/05/12 17 17 - Larter Consulting Refugee Health 1/05/12 31/05/12 16 16 - Murdoch Childrens ResearchInstitute

Clinical 1/03/12 31/03/12 15 15 -

Beyond Blue Limited Training/coaching 1/11/11 31/12/11 14 14 - AquaklarAnalyticalSupplies

NGERAuditing 1/01/12 30/06/12 13 13 -

Braintree Webs Pty Ltd ITServices 1/07/11 30/06/12 13 13 - Dandenong Casey GeneralPracticeAssoc.

Clinical 1/07/11 30/06/12 13 13 -

LimeManagementGroupPty Ltd

Clinical 1/06/12 30/06/12 11 11 -

Deloitte Tax FBT advice and lodgment

1/05/12 31/05/12 11 11 -

The Health Roundtable Clinical 1/07/11 30/06/12 10 10 -


Financial summaryFinancial summary


The 2011-2012 financial year saw continued growth in demand for services across Southern Health.

ThekeyfinancialperformancemeasuremonitoredbySouthernHealthmanagementandtheDepartmentofHealthisthe‘NetResultBeforeCapitalandSpecificItems’.In2011-2012SouthernHealthachievedadeficitresultof$2.883millioncomparedwithadeficitresultof$4.924millionin2010-2011.WearepleasedtoreportthatweexceededourStatementofPriorities target by $117,000.

SouthernHealth’s‘ComprehensiveResult’,whichincludescapitalandspecificitems,wasasurplus of $25.728 million in 2011-2012 compared to a surplus of $0.817 million in 2010-2011.Includedinthe‘ComprehensiveResult’wasacapitalgrantof$51.000millionfromtheCommonwealthGovernmentfortheMonashHealthTranslationPrecinctproject.

Totalrevenuefromallservicesforthe2011-2012financialyeartotalled$1,344millionwhichis anincreaseof$70millionor5.5percentcomparedwiththepreviousyear.Inthesameperiodtotalexpenditurewas$1,318millionwhichisanincreaseof$50millionor3.9percent.

SouthernHealth’scashreservesasat30June2012were$54.933millioncomparedwith $7.172millionasat30June2011.Theimprovementincashflowfromoperationswasoffset bytherepaymentofloansandthecapitalexpenditureprogramundertakentomeettheneeds of the health service.

Basil IrelandExecutive Director Finance

Melbourne06September2012

Financial statements

and explanatory

notes


Declaration


Auditor-General’sReport


Note Parent Entity

ParentEntity

Consolidated Consolidated

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

Revenue from Operating Activities 2 1,194,330 1,137,095 1,232,925 1,174,263 Employee Expenses 3 (909,556) (863,703) (927,101) (880,187) Non Salary Labour Costs 3 (14,801) (16,281) (15,038) (16,756) Supplies and Consumables 3 (177,019) (176,268) (179,046) (178,842) Other Expenses From Continuing Operations 3 (96,663) (86,475) (114,624) (103,453) Share of Net Result of Associates and Joint Ventures Accounted for using the Equity Method 10 - 51 - 51

Net Result Before Capital and Specific Items

(3,709) (5,580) (2,883) (4,924)

Capital Purpose Income 2 111,120 94,220 111,120 94,251 Depreciation and Amortisation 4 (66,995) (74,985) (67,084) (75,086) Specific Expense 3c (811) - (811) -Finance Costs 5 (4,373) (4,504) (4,373) (4,504) Expenditure using Capital Purpose Income 3 (10,241) (8,915) (10,241) (8,921)

NET RESULT FOR THE YEAR 24,992 236 25,728 817

COMPREHENSIVE RESULT FOR THE YEAR 24,992 236 25,728 817

* Amounts restated, for further details refer Note 26.

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

Southern HealthComprehensive Operating StatementFor the Year Ended 30 June 2012

1

SouthernHealthAnnualReport2011-2012-ComprehensiveOperatingStatement


NoteParentEntity

ParentEntity Consolidated Consolidated

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

Current AssetsCash and Cash Equivalents 6 54,932 7,172 54,933 7,172Receivables 7 31,379 29,341 37,068 34,771Inventories 8 22,586 20,439 22,586 20,439Other Assets 9 2,340 1,642 2,343 1,642Total Current Assets 111,237 58,594 116,930 64,024

Non-Current AssetsReceivables 7 34,733 23,339 34,734 23,339Investments Accounted for using the Equity Method 10 3,283 3,283 3,283 3,283Property, Plant and Equipment 11 884,503 886,654 885,563 887,786Intangible Assets 12 8,121 11,450 8,121 11,450Other Assets 9 93 93 93 93Total Non-Current Assets 930,733 924,819 931,794 925,951TOTAL ASSETS 1,041,970 983,413 1,048,724 989,975

Current LiabilitiesPayables 13 68,121 64,141 63,815 60,565Borrowings 14 4,047 3,907 4,047 3,907Provisions 15 194,268 169,916 194,453 169,916Other Liabilities 16 5,434 5,101 5,434 5,101Total Current Liabilities 271,870 243,066 267,749 239,489

Non-Current LiabilitiesBorrowings 14 85,090 87,891 85,090 87,891Provisions 15 39,940 32,378 39,940 32,378Total Non-Current Liabilities 125,030 120,269 125,030 120,269TOTAL LIABILITIES 396,900 363,335 392,779 359,758NET ASSETS 645,070 620,079 655,945 630,217

EQUITYProperty, Plant and Equipment Revaluation Surplus 17a 319,318 319,318 319,487 319,487Restricted Specific Purpose Surplus 17a 3,033 3,197 3,033 3,197Contributed Capital 17b 401,893 401,893 401,895 401,895Accumulated Deficits 17c (79,174) (104,329) (68,470) (94,362)TOTAL EQUITY 645,070 620,079 655,945 630,217

Commitments 20

Contingent Assets and Contingent Liabilities 21

* Amounts restated, for further details refer Note 26.

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

Balance SheetAs at 30 June 2012

Southern Health

SouthernHealthAnnualReport2011-2012-BalanceSheet


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SouthernHealthAnnualReport2011-2012-Statementofchangesinequity


Note Parent Entity

ParentEntity

Consolidated Consolidated

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

CASH FLOWS FROM OPERATING ACTIVITIESOperating Grants from Government 1,050,715 998,169 1,050,455 999,372Patient and Resident Fees Received 21,252 15,137 21,252 15,137Private Practice Fees Received 62,195 54,778 100,887 91,877Donations and Bequests Received 2,390 2,381 2,390 2,381GST Received from ATO 28,240 29,856 28,240 29,856Recoupment from private practice for use of hospitalfacilities 23,315 15,073 23,315 15,073 Interest Received 2,350 1,621 2,350 1,621Other Receipts 56,512 51,680 55,795 47,121Employee Expenses Paid (901,760) (858,425) (919,641) (875,384)Payments for Supplies and Consumables (206,310) (209,573) (225,849) (226,116)Other Payments (126,661) (96,223) (126,939) (96,437)Cash Generated from Operations 12,238 4,474 12,255 4,501

Capital Grants from Government 88,661 82,206 88,661 82,206

NET CASH INFLOW FROM OPERATING ACTIVITIES 18 100,899 86,680 100,916 86,707

CASH FLOWS FROM INVESTING ACTIVITIESPurchase of Property, Plant and Equipment (52,533) (84,676) (52,549) (84,703)Proceeds from Sale of Property, Plant and Equipment 307 156 307 156NET CASH OUTFLOW FROM INVESTING ACTIVITIES (52,226) (84,520) (52,242) (84,547)

CASH FLOWS FROM FINANCING ACTIVITIESRepayment of Car Park Loan (1,246) (1,274) (1,246) (1,274)Repayment of Loan to Department of Health - (1,800) - (1,800)NET CASH OUTFLOW FROM FINANCING ACTIVITIES (1,246) (3,074) (1,246) (3,074) NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS HELD 47,427 (914) 47,428 (914) CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 2,071 2,985 2,071 2,985

CASH AND CASH EQUIVALENTS AT END OF YEAR 6 49,498 2,071 49,499 2,071

This Statement should be read in conjunction with the accompanying notes

Cash Flow Statement For the Year Ended 30 June 2012

Southern Health

SouthernHealthAnnualReport2011-2012-Cashflowstatement


Note 1: Summary of Significant Accounting Policies(a) Statement of compliance

These financial statements are a general purpose financial report which have been prepared in accordance with the Financial Management Act 1994 and applicable Australian Accounting Standards (AASs) issued by Australian Accounting Standards Board (AASB).

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

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

The annual financial statements were authorised for issue by the Board of Southern Health on 6 September 2012.

(b) Basis of accounting preparation and measurement

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

The accounting policies set out below have been applied in preparing the financial statements for the year ended 30 June 2012, and the comparative information presented in these financial statements for the year ended 30 June 2011.

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

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

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

The financial statements are prepared in accordance with the historical cost convention, except for the revaluation of certain non-financial assets and financial instruments, as noted. Particularly, exceptions to the historical cost convention include:

Non-current physical assets, which subsequent to acquisition, are measured at valuation and are re-assessed with sufficient regularity to ensure that the carrying amounts do not materially differ from their fair values;

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

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

SouthernHealthAnnualReport2011-2012-NotestoandformingpartoftheFinancialStatements


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

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision, and future periods if the revision affects both current and future periods. Judgements made by management in the application of AASs that have significant effects on the financial statements and estimates, with a risk of material adjustments in the subsequent reporting period, relate to:

The fair value of land, buildings, infrastructure, plant and equipment (refer to Note 1(j)).

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

(c) Reporting Entity

The financial statements include all the controlled activities of Southern Health.

Its principal address is:

246 Clayton Road Clayton Victoria 3168

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

(d) Principles of Consolidation

In accordance with AASB 127 Consolidated and Separate Financial Statements, the consolidated financial statements of Southern Health incorporates the assets and liabilities of all entities controlled by Southern Health as at 30 June 2012, and their income and expenses for that part of the reporting period in which control existed. Control exists when Southern Health has the power to govern the financial and operating policies of an entity so as to obtain benefit from its activities. In assessing control, potential voting rights that presently are exercisable are taken into account. The consolidated financial statements include the audited financial statements of Kitaya Holdings Pty Ltd. Consistent accounting policies have been adopted by all entities. In the process of preparing consolidated financial statements for Southern Health all material transactions and balances between consolidated entities are eliminated.

Intersegment Transactions

Transactions between segments within Southern Health have been eliminated to reflect the extent of Southern Health’s operations as a group.



Associates Investments in associates are accounted for in accordance with the policy outlined in Note 1(i) Financial Assets.

(e) Scope and presentation of financial statements

Fund Accounting

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

Services Supported By Health Services Agreement and Services Supported By Hospital and Community Initiatives

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

Comprehensive operating statement

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

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

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

Specific income/expense, comprises the following items, where material: o Voluntary departure packages

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



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

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

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

Balance sheet

Assets and liabilities are categorised either as current or non-current.

Statement of changes in equity

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

Cash flow statement

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

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

Comparative Information

Where necessary the previous year’s figures have been reclassified to facilitate comparisons. Adjustments were made to comparative, refer Note 26 for details.

(f) Income Recognition Income is recognised in accordance with AASB 118 Revenue and is recognised as to the extent that it is probable that the economic benefits will flow to Southern Health and the income can be reliably measured. Unearned income at reporting date is reported as income received in advance.

Amounts disclosed as revenue is, where applicable, net of returns, allowances and duties and taxes.



Government Grants and other transfers of income (other than contributions by owners)

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

Contributions are deferred as income in advance when Southern Health has a present obligation to repay them and the present obligation can be reliably measured.

Indirect Contributions from the Department of Health

Insurance is recognised as revenue following advice from the Department of Health. Long Service Leave (LSL) – Revenue is recognised upon finalisation of movements in LSL

liability in line with the arrangements set out in the Metropolitan Health and Aged Care Services Division Hospital Circular 14/2009.

Patient and Resident Fees

Patient fees are recognised as revenue at the time invoices are raised.

Private Practice Fees

Private practice fees are recognised as revenue at the time invoices are raised.

Revenue from commercial activities

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

Donations and Other Bequests

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

Dividend Revenue

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

Interest Revenue

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

Sale of investments

The gain/loss on the sale of investments is recognised when the investment is realised.

Resources Received Free of Charge or for Nominal Consideration

Resources received free of charge or for nominal consideration are recognised at their fair value when the transferee obtain control over them, irrespective of whether restriction 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 cases, 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.



(g) Expense Recognition

Expenses are recognised as they are incurred and reported in the financial year to which they relate.

Cost of Goods Sold

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

Employee expenses

Employee expenses include:

Wages and salaries;

Accrued days off;

Annual leave;

Sick leave;

Long service leave; and

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

Defined contribution plans In relation to defined contribution (i.e. accumulation) superannuation plans, the associated expense is simply the employer contributions that are paid or payable in respect of employees who are members of these plans during the reporting period. Contributions to defined contribution superannuation plans are expensed when incurred.

Defined benefit plans

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

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

The name and details of the major employee superannuation funds and contributions made by Southern Health are as follows:



Fund Contributions Paid or Payable for the year

2012 2011 $’000 $’000

Defined benefit plans: State Superannuation Fund 525 554Health Super 2,295 2,509UniSuper 29 -Defined contribution plans: Health Super 44,576 43,209Hesta 23,928 22,529VicSuper and Other 35 67Total 71,388 68,868

Depreciation

Assets with a cost in excess of $1,000 are capitalised and depreciation has been provided on depreciable assets so as to allocate their cost or valuation over their estimated useful lives. Depreciation is generally calculated on a straight line basis, at a rate that allocates the asset value, less any estimated residual value over its estimated useful life. Estimates of the remaining useful lives and depreciation method for all assets are reviewed at least annually, and adjustments made where appropriate. This depreciation charge is not funded by the Department of Health.

Depreciation is provided on property, plant and equipment, including freehold buildings, but excluding land and investment properties. Depreciation begins when the asset is available for use, which is when it is in the location and condition necessary for it to be capable of operating in a manner intended by management.

The following table indicates the expected useful lives of non-current assets on which the depreciation charges are based.

2012 2011 Buildings - Structure Shell Building Fabric 40 to 70 years 40 to 70 years - Site Engineering Services and Central Plant 22 to 30 years 22 to 30 years Central Plant - Fit Out 22 to 30 years 22 to 30 years - Trunk Reticulated Building Systems 22 to 30 years 22 to 30 years Plant and Equipment 3 to 10 years 3 to 10 years Medical Equipment 3 to 10 years 3 to 10 years Computers and Communication 3 years 3 years Furniture and Fitting Up to 10 years Up to 10 years Motor Vehicles 4 years 4 years Intangible Assets 5 years 5 years Leased Buildings 45 years 45 years Leased Medical Equipment 3 to 10 years 3 to 10 years

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



Amortisation

Amortisation is allocated to intangible assets with finite useful lives on a systematic (typically straight-line) basis over the asset’s useful life. Amortisation begins when the asset is available for use, that is, when it is in the location and condition necessary for it to be capable of operating in the manner intended by management. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each annual reporting period. In addition, an assessment is made at each reporting date to determine whether there are indicators that the intangible asset concerned is impaired. If so, the assets concerned are tested as to whether their carrying value exceeds their recoverable amount.

Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually or whenever there is an indication that the asset may be impaired. The useful lives of intangible assets that are not being amortised are reviewed each period to determine whether events and circumstances continue to support an indefinite useful life assessment for that asset. In addition, Southern Health tests all intangible assets with indefinite useful lives for impairment by comparing the recoverable amount for each asset with its carrying amount:

annually; and whenever there is an indication that the intangible asset may be impaired.

Any excess of the carrying amount over the recoverable amount is recognised as an impairment loss.

Finance Costs

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

Finance costs include: interest on bank overdrafts and short-term and long-term borrowings; amortisation of discounts or premiums relating to borrowings; amortisation of ancillary costs incurred in connection with the arrangement of

borrowings; and finance charges in respect of finance leases recognised in accordance with AASB 117

Leases.

(h) Financial instruments Financial instruments arise out of contractual arrangements that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Due to the nature of Southern Health’s activities, certain financial assets and financial liabilities arise under stature rather than contract. Such financial assets and financial liabilities do not meet the definition of financial instruments in AASB 132 Financial Instruments: Presentation. For example, statutory receivables arising from the taxes, fines and penalties do not meet the definition of financial instruments as they do not arise under contract.

Where relevant, for note disclosure purposes, a distinction has been made between those financial assets and liabilities that meet the definition of financial instruments in accordance with AASB 132 and those that do not.

The following refers to financial instruments unless otherwise stated:



Categories of non-derivative financial instruments

Financial assets and liabilities at fair value through profit or loss

Financial assets are categorised at fair value through profit or loss at trade date if they are classified as held for trading or designated as such upon initial recognition. Financial instrument assets are designated at fair value through profit or loss on the basis that the financial assets form part of a group of financial assets that are managed by the entity concerned based on their fair values, and have their performance evaluated in accordance with documented risk management and investment strategies.

Financial instruments at fair value through profit or loss are initially measured at fair value and attributable transaction costs are expensed as incurred. Subsequently, any changes in fair value are recognised in the net result.

Loans and receivables

Loans and receivables are financial instrument assets with fixed determinable payments that are not quoted in an active market. These assets are initially recognised at fair value plus any directly attributable transaction costs. Subsequent to initial measurement any loans and receivables are measured at amortised cost using the effective interest rate method, less any impairment.

Loans and receivables category includes cash and deposits (refer Note 1(i)), term deposits with greater maturity than three months, trade receivables, loans and other receivables and statutory receivables.

The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial assets, or where appropriate, a shorter period.

Financial liabilities at amortised cost

Financial instrument liabilities are initially recognised on the date they are originated. They are initially measured at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, these financial instruments are measured at amortised cost with any difference between the initial recognised amount and the redemption value being recognised in profit and loss over the period of the interest-bearing liability, using the effective interest rate method.

Financial instrument liabilities measured at amortised cost include all of Southern Health’s contractual payables, deposits held and advances received, and interest-bearing arrangements other than those designated at fair value through profit or loss.

(i) Financial assets

Cash and Cash Equivalents

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



Receivables

Receivables consist of:

Statutory receivables, which includes predominantly amounts owing from the Victorian Government and GST input tax credits recoverable; and

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

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

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

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

Investments and Other Financial Assets

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

Investments are classified in the following categories:

Financial assets at fair value through profit or loss;

Loans and receivables; and

Southern Health classifies its other financial assets between current and non-current assets based on the purpose for which the assets were acquired. Management determines the classification of its other financial assets at initial recognition.

Southern Health assesses at each balance sheet date whether a financial asset or group of financial assets is impaired.

All financial assets, except those measured at fair value through profit or loss are subject to annual review for impairment.

Investments accounted for using the equity method

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

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



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

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

Details of the equity investment are set out in note 10.

Derecognition of financial assets

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when:

the rights to receive cash flows from the asset have expired; or the Health Service retains the right to receive cash flows from the asset, but has

assumed an obligation to pay them in full without material delay to a third party under a ‘pass through’ arrangement; or

the Health Service has transferred its rights to receive cash flows from the asset and either:

(a) has transferred substantially all the risks and rewards of the asset; or (b) has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

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

Impairment of Financial Assets

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

Receivables are assessed for bad and doubtful debts on a regular basis. Bad debts considered as written off and allowances for doubtful receivables are expensed.

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

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

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



Net Gain/(Loss) on Financial Instruments

Net gain/(loss) on financial instruments includes: realised and unrealised gains and losses from revaluations of financial instruments that are

designated at fair value through profit or loss or held-for-trading; impairment and reversal of impairment for financial instruments at amortised cost; and disposals of financial assets.

Revaluations of Financial Instruments at Fair Value

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

(j) Non-Financial Assets

Inventories

Inventories include goods and other property held either for sale, consumption or for distribution at no or nominal cost in the ordinary course of business operations. It includes land held for sale and excludes depreciable assets.

Inventories held for distribution are measured at cost, adjusted for any loss of service potential. All other inventories are measured at the lower of cost and net realisable value.

The bases used in assessing loss of service potential for inventories held for distribution include current replacement cost and technical or functional obsolescence. Technical obsolescence occurs when an item still functions for some or all of the tasks it was originally acquired to do, but no longer matches existing technologies. Functional obsolescence occurs when an item no longer functions the way it did when it was first acquired.

Cost for all other inventory is measured on the basis of weighted average cost. Inventories acquired at no cost or for nominal consideration are measured at current replacement cost at the date of acquisition.

Property, Plant and Equipment

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

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

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

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



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

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

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

Revaluations of Non-current Physical Assets

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

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

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

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

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

In accordance with FRD 103D, Southern Health’s non-current physical assets were assessed to determine whether revaluation of the non-current physical assets was required.

Intangible Assets

Intangible assets represent identifiable non-monetary assets without physical substance such as patents, trademarks, and computer software.

Intangible assets are initially recognised at cost. Subsequently, intangible assets with finite useful lives are carried at cost less accumulated amortisation and accumulated impairment



losses. Costs incurred subsequent to initial acquisition are capitalised when it is expected that additional future economic benefits will flow to the Southern Health.

Other non-financial assets

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

Disposal of Non-Financial Assets

Any gain or loss on the sale of non-financial assets is recognised in the comprehensive operating statement at the date that control of the asset is passed to the buyer and is determined after deducting from the proceeds the carrying value of the asset at that time.

Impairment of Non-Financial Assets

Apart from intangible assets with indefinite useful lives, all other non-financial assets are assessed annually for indications of impairment, except for:

inventories; investment properties that are measured at fair value.

If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their possible recoverable amount. Where an asset’s carrying value exceeds its recoverable amount, the difference is written-off as an expense except to the extent that the write-down can be debited to an asset revaluation surplus amount applicable to that same class of asset.

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

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

(k) Liabilities

Payables

These amounts consist predominantly of liabilities for goods and services.

Payables are initially recognised at fair value, and then subsequently carried at amortised cost and represent liabilities for goods and services provided to Southern Health prior to the end of



the financial year that are unpaid, and arise when Southern Health becomes obliged to make future payments in respect of the purchase of these goods and services.

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

Borrowings

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

Provisions

Provisions are recognised when Southern Health has a present obligation, the future sacrifice of economic benefits is probable, and the amount of the provision can be measured reliably.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows, using a discount rate that reflects the time value of money and risks specific to the provision.

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

Employee Benefits

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

Liabilities for wages and salaries, including non-monetary benefits, annual leave accumulating sick leave and accrued days off which are expected to be settled within 12 months of the reporting date are recognised in the provision for employee benefits in respect of employee’s services up to the reporting date, and are classified as current liabilities and measured at their nominal values.

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

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

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



The components of this current LSL liability are measured at:

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

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

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

Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using interest rates of Commonwealth Government guaranteed securities in Australia.

On-Costs

Employee benefit on-costs, such as payroll tax, workers compensation and superannuation are recognised together with provisions for employee benefits.

Superannuation liabilities

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

Termination Benefits

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

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

Derecognition of financial liabilities

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

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



(l) Leases Leases are classified at their inception as either operating or finance leases based on the economic substance of the agreement so as to reflect the risks and rewards incidental to ownership.

Leases of property, plant and equipment are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Finance Leases

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

Operating Leases

Rental income from operating lease is recognised on a straight-line basis over the term of the relevant lease.

Operating lease payments, including any contingent rentals, are recognised as an expense in the comprehensive operating statement on a straight line basis over the lease term, except where another systematic basis is more representative of the time pattern of the benefits derived from the use of the leased asset.

Leasehold Improvements

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

(m) Equity

Contributed Capital

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

Property, Plant & Equipment Revaluation Surplus

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



Specific Restricted Purpose Surplus

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

(n) Commitments Commitments for future expenditure include operating and capital commitments arising from contracts. These commitments are disclosed by way of a note (refer to note 30) at their nominal value and are inclusive of the goods and services tax (“GST”) payable. In addition, where it is considered appropriate and provides additional relevant information to users, the net present values of significant individual projects are stated. These future expenditures cease to be disclosed as commitments once the related liabilities are recognised on the balance sheet.

(o) Contingent assets and contingent liabilities Contingent assets and contingent liabilities are not recognised in the balance sheet, but are disclosed by way of note and, if quantifiable, are measured at nominal value. Contingent assets and contingent liabilities are presented inclusive of GST receivable or payable respectively.

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

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

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

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

(q) Events after the reporting period Assets, liabilities, income or expenses arise from past transactions or other past events. Adjustments are made to amounts recognised in the financial statements for events which occur after the reporting period and before the date the financial statements are authorised for issue, where those events provide information about conditions which existed in the reporting period. Note disclosure is made about events between the end of the reporting period and the date the financial statements are authorised for issue where the events relate to conditions which arose after the end of the reporting period and which may have a material impact on the results of subsequent reporting periods.



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

(s) Rounding Of Amounts All amounts shown in the financial statements are expressed to the nearest $1,000 unless otherwise stated.

Figures in the financial statements may not equal due to rounding.



(t) New Accounting Standards and Interpretations Certain new Australian accounting standards and interpretations have been published that are not mandatory for the 30 June 2012 reporting period.

As at 30 June 2012, the following standards and interpretations had been issued but were not mandatory for the reporting period ending 30 June 2012. Southern Health has not and does not intend to adopt these standards early.

Standard/ Interpretation

Summary Applicable for annual reporting periodsbeginningon

Impact on public sector entity financial statements

AASB 9 Financial instruments

This standard simplifies requirements for the classification and measurement of financial 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).

1 Jan 2013 Detail of impact is still being assessed.

AASB 10 Consolidated Financial Statements

This Standard establishes principles for the presentation and preparation of consolidated financial statements when an entity controls one or more other entities and supersedes those requirements in AASB 127 Consolidated and Separate Financial Statements and Interpretation 112 Consolidation – Special Purpose Entities.

1 Jan 2013 Not-for-profit entities are not permitted to apply this Standard prior to the mandatory application date. The AASB is assessing the applicability of principles in AASB 10 in a not-for-profit context. As such, impact will be assessed after the AASB’s deliberation.

AASB 11 JointArrangements

This Standard requires entities that have an interest in arrangements that are controlled jointly to assess whether the arrangement is a joint operation or joint venture. AASB 11 shall be applied for an arrangement that is a joint operation. It also replaces parts of requirements in AASB 131 Interests in Joint Ventures.


AASB 12 Disclosure of Interests in Other Entities

This Standard requires disclosure of information that enables users of financial statements to evaluate the nature of, and risks associated with, interests in other entities and the effects of those interests on the financial statements. This Standard replaces the disclosure requirements in AASB 127 and AASB 131.







AASB 13 Fair Value Measurement

This Standard outlines the requirements for measuring the fair value of assets and liabilities and replaces the existing fair value definition and guidance in other AASs. AASB 13 includes a ‘fair value hierarchy’ which ranks the valuation technique inputs into three levels using unadjusted quoted prices in active markets for identical assets or liabilities; other observable inputs; and unobservable inputs.

1 Jan 2013 Disclosure for fair value measurements using unobservable inputs are relatively onerous compared to disclosure for fair value measurements using observable inputs. Consequently, the Standard may increase the disclosures for public sector entities that have assets measured using depreciated replacement cost.

AASB 119 Employee Benefits

In this revised Standard for defined benefit superannuation plans, there is a change to the methodology in the calculation of superannuation expenses, in particular there is now a change in the split between superannuation interest expense (classified as transactions) and actuarial gains and losses (classified as ‘Other economic flows – other movements in equity’) reported on the comprehensive operating statement.

1 Jan 2013 Not-for-profit entities are not permitted to apply this Standard prior to the mandatory application date. While the total superannuation expense is unchanged, the revised methodology is expected to have a negative impact on the net result from transactions of the general government sector and for those few Victorian public sector entities that report superannuation defined benefit plans.

AASB 127 Separate Financial Statements

This revised Standard prescribes the accounting and disclosure requirements for investments in subsidiaries, joint ventures and associates when an entity prepares separate financial statements.


AASB 128 Investments in Associates and Joint Ventures

This revised Standard sets out the requirements for the application of the equity method when accounting for investments in associates and joint ventures.







AASB 1053 Application of Tiers of Australian Accounting Standards

This Standard establishes a differential financial reporting framework consisting of two tiers of reporting requirements for preparing general purpose financial statements.

1 July 2013 The Victorian Government is currently considering the impacts of Reduced Disclosure Requirements (RDRs) for certain public sector entities and has not decided if RDRs will be implemented in the Victorian public sector.

AASB 2009-11Amendments to Australian Accounting Standards arising from AASB 9 [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 121, 127, 128, 131, 132, 136, 139, 1023 and 1038 and Interpretations 10 and 12]

This Standard gives effect to consequential changes arising from the issuance of AASB 9.

1 Jan 2013 No significant impact is expected from these consequential amendments on entity reporting.

AASB 2010-2Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements

This Standard makes amendments to many Australian Accounting Standards, including Interpretations, to introduce reduced disclosure requirements to the pronouncements for application by certain types of entities.

1 July 2013 The Victorian Government is currently considering the impacts of Reduced Disclosure Requirements (RDRs) for certain public sector entities and has not decided if RDRs will be implemented in the Victorian public sector.

AASB 2010-7Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) [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]

These consequential amendments are in relation to the introduction of AASB 9.


AASB 2010-8Amendments to Australian Accounting Standards – Deferred Tax: Recovery of Underlying Assets [AASB 112]

This amendment provides a practical approach for measuring deferred tax assets and deferred tax liabilities when measuring investment property by using the fair value model in AASB 140 Investment Property.

1 Jan 2012 This amendment provides additional clarification through practical guidance.






AASB 2010-10 FurtherAmendments to Australian Accounting Standards – Removal of Fixed Dates for First-time Adopters [AASB 2009-11 & AASB 2010-7]

The amendments ultimately affect AASB 1 First-time Adoption of Australian Accounting Standardsand provide relief for first-time adopters of Australian Accounting Standards from having to reconstruct transactions that occurred before their date of transition to Australian Accounting Standards.

1 Jan 2013 No significant impact is expected on entity reporting.

AASB 2011-2Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project – Reduced Disclosure Requirements [AASB 101 & AASB 1054]

The objective of this amendment is to include some additional disclosure from the Trans-Tasman Convergence Project and to reduce disclosure requirements for entities preparing general purpose financial statements under Australian Accounting Standards – Reduced Disclosure Requirements.

1 July 2013 The Victorian Government is currently considering the impacts of Reduced Disclosure Requirements (RDRs) and has not decided if RDRs will be implemented in the Victorian public sector.

AASB 2011-3Amendments to Australian Accounting Standards – Orderly Adoption of Changes to the ABS GFS Manual and Related Amendments [AASB 1049]

This amends AASB 1049 to clarify the definition of the ABS GFS Manual, and to facilitate the adoption of changes to the ABS GFS Manual and related disclosures.

1 July 2012 This amendment provides clarification to users preparing the whole of government and general govovernment sector financial reports on the version 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.

AASB 2011-4 Amendments to Australian Accounting Standards to Remove Individual Key Management Personnel Disclosure Requirements[AASB 124]

This Standard amends AASB 124 Related Party Disclosures by removing the disclosure requirements in AASB 124 in relation to individual key management personnel (KMP).

1 July 2013 No significant impact is expected from these consequential amendments on entity reporting.

AASB 2011-6 Amendments to Australian Accounting Standards – Extending Relief from Consolidation, the Equity Method and Proportionate Consolidation – ReducedDisclosure Requirements[AASB 127, AASB 128 & AASB 131]

The objective of this Standard is to make amendments to AASB 127 Consolidated and Separate Financial Statements, AASB 128 Investments in Associates and AASB 131 Interests in Joint Ventures to extend the circumstances in which an entity can obtain relief from consolidation, the equity method or proportionate consolidation.







AASB 2011-7Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards [AASB 1, 2, 3, 5, 7, 9, 2009-11, 101, 107, 112, 118, 121, 124, 132, 133, 136, 138, 139, 1023 & 1038 and Interpretations 5, 9, 16 & 17]

This Standard outlines consequential changes arising from the issuance of the five ‘new Standards’ to other Standards. For example, references to AASB 127 Consolidated and Separate Financial Statements are amended to AASB 10 Consolidated Financial Statements or AASB 127 SeparateFinancial Statements, and references to AASB 131 Interestsin Joint Ventures are deleted as that Standard has been superseded by AASB 11 and AASB 128 (August 2011).


AASB 2011-8 Amendments to Australian Accounting Standards arising from AASB 13 [AASB 1, 2, 3, 4, 5, 7, 9, 2009-11, 2010-7, 101, 102, 108, 110, 116, 117, 118, 119, 120, 121, 128, 131, 132, 133, 134, 136, 138, 139, 140, 141, 1004, 1023 & 1038 and Interpretations 2, 4, 12, 13, 14, 17, 19, 131 & 132]

This amending Standard makes consequentical changes to a range of Standards and Interpretations arising from the issuance of AASB 13. In particular, this Standard replaces the existing definition and guidance of fair value measurements in other Australian Accounting Standards and Interpretations.

1 Jan 2013 Disclosures for fair value measurements using unobservable inputs is potentially onerous, and may increase disclosures for assets measured using depreciated replacement cost.

AASB 2011-9 Amendments to Australian Accounting Standards – Presentation of Items of Other Comprehensive Income[AASB 1, 5, 7, 101, 112, 120, 121, 132, 133, 134, 1039 & 1049]

The main change resulting from this Standard is a requirement for entities to group items presented in other comprehensive income (OCI) on the basis of whether they are potentially reclassifiable to profit or loss subsequently (reclassification adjustments). These amendments do not remove the option to present profit 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.

1 July 2012 This amending Standard could change the current presentation of ‘Other economic flows- other movements in equity’ that will be grouped on the basis of whether they are potentially reclassifiable to profit or loss subsequently. No other significant impact will be expected.






AASB 2011-10 Amendments to Australian Accounting Standards arising from AASB 119 (September 2011) [AASB 1, AASB 8, AASB 101, AASB 124, AASB 134, AASB 1049 & AASB2011-8 and Interpretation 14]

This Standard makes consequential changes to a range of other Australian Accounting Standards and Interpretaion arising from the issuance of AASB 119 Employee Benefits.


AASB 2011-11 Amendments to AASB 119 (September 2011) arising from Reduced Disclosure Requirements

This Standard makes amendments to AASB 119 Employee Benefits(September 2011), to incorporate reduced disclosure requirements into the Standard for entities applying Tier 2 requirements in preparing general purpose financial statements.


AASB 2011-12 Amendments to Australian Accounting Standards arising from Interpretation 20 [AASB 1]

This Standard makes amendments to AASB 1 First-time Adoption of Australian Accounting Standards, as a consequence of the issuance of IFRIC Interpretation 20 Stripping Costs in the Production Phase of a Surface Mine. This Standard allows the first-time adopters to apply the transitional provisions contained in Interpretation 20.

1 Jan 2013 There may be an impact for new agencies that adopt Australian Accounting Standards for the first time. No implication is expected for existing entities in the Victorian public sector.

2011-13 Amendments to Australian Accounting Standard – Improvements to AASB 1049

This Standard aims to improve the AASB 1049 Whole of Government and General Government Sector Financial 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 fiscal aggregates as long as they are clearly distinguished from the key fiscal aggregates and do not detract from the the information required by AASB 1049. Furthermore, this Standard provides additional guidance and examples on the classification between ‘transactions’ and ‘other economic flows’ for GAAP items without GFS equivalents.

1 July 2012 No significant impact is expected from these consequential amendments on entity reporting.






2012-1 Amendments to Australian Accounting Standards - Fair Value Measurement - Reduced Disclosure Requirements[AASB 3, AASB 7, AASB 13, AASB 140 & AASB 141]

This amending Standard prescribes the reduced disclosure requirements in a number of Australian Accounting Standards as a consequence of the issuance of AASB 13 Fair Value Measurement.

1 July 2013 As the Victorian whole of government and the general government (GG) sector are subject to Tier 1 reporting requirements (refer to AASB 1053 Application of Tiers of Australian Accounting Standards), the reduced disclosure requirements included in AASB 2012-1 will not affect the financial reporting for Victorian whole of government and GG sector.

AASB Interpretation 20 Stripping Costs in the Production Phase of a Surface Mine

This Interpretation clarifies when production stripping costs should lead to the recognition of an asset and how that asset should be initially and subsequently measured.

1 Jan 2013 No significant impact is expected on entity reporting.

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

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

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

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



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

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

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

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

Residential Aged Care including Mental Health (RAC incl. Mental Health) referred to in the past as psychogeriatric residential services, comprises those Commonwealth-licensed residential aged care services in receipt of supplementary funding from the Department of Health under the mental health program. It excludes all other residential services funded under the mental health program, such as mental health funded community care units (CCUs) and secure extended care units (SECs).

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


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rim

ary

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lth

24



Notes To and Forming Part of the Financial Statements Southern Health Annual Report 2011/2012

Note 2b: Patient and Resident Fees

ParentEntity


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

Patient and Resident Fees RaisedRecurrent:Acute – Inpatients 22,360 17,786 22,360 17,786 – Outpatients 1,220 1,037 1,220 1,037 – Other 1,851 1,360 1,851 1,360 Residential Aged Care – Generic 316 143 316 143 – Mental Health 4,708 4,561 4,708 4,561 Mental Health 2,124 612 2,124 612 Other 1,108 316 1,108 316 Total Recurrent 33,688 25,815 33,688 25,815

Non-HSA Patient Fees RaisedPrivate Hospital Fees - - 38,596 37,167 Total Non-HSA Patient Fees Raised - - 38,596 37,167




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

Proceeds from Disposals of Non-Current AssetsPlant and Equipment 3 1 3 1Medical Equipment 1 12 1 12Computers and Communication 1 1 1 1Motor Vehicles 302 142 302 142Total Proceeds from Disposal of Non-Current Assets 307 156 307 156

Less: Written Down Value of Non-Current Assets SoldPlant and Equipment 158 6 158 6Medical Equipment 37 140 37 156Computers and Communication - 29 - 29Motor Vehicles 424 105 424 105Total Written Down Value of Non-Current Assets Sold 619 280 619 296

Net loss on Disposal of Non-Financial Assets (312) (124) (312) (140)

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




ParentEntity


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

During the reporting period, the fair value of assets received free of charge, was as follows:

Land 9,600 - 9,600 -TOTAL 9,600 - 9,600 -

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



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Private Practice and Other Patient Activities 10,538 9,137 10,538 9,137Laboratory Medicine 2,744 2,449 2,744 2,449Diagnostic Imaging 9,525 8,300 9,525 8,300Property Expenses (9) (9)

Other - Bequests and Donations 99 118 99 118 - Breastscreen service 3,458 2,792 3,458 2,792 - Cardiology 4,525 4,551 4,525 4,551 - DHS Special Projects (13) (13) (13) (13) - Mobility Impaired Services 8 3,190 8 3,190 - Special Purpose Medical 9,497 7,571 9,497 7,571

Other ActivitiesFundraising and Community Support 1,527 1,520 1,527 1,520Research and Scholarship 3,181 3,141 3,181 3,141Other 7,167 1,164 7,167 1,164TOTAL 52,247 43,921 52,247 43,921

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




Note 3c: Specific Expenses

ParentEntity


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

Specific ExpensesVoluntary Departure Packages 811 - 811 -Total Specific Expenses 811 - 811 -




Note 4: Depreciation and Amortisation

ParentEntity


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

DepreciationBuildings 41,851 50,969 41,851 50,969Plant and Equipment 2,038 1,548 2,044 1,554Medical Equipment 9,779 8,870 9,830 8,931Computers and Communication 3,137 2,743 3,137 2,744Furniture and Equipment 137 133 139 136Motor Vehicles 579 632 579 632Leased Building 4,973 4,959 5,003 4,989Leased Plant and Equipment 26 26 26 26Leased Medical Equipment 1,135 1,138 1,135 1,138Leased Furniture and Equipment 1 1 1 1Total Depreciation 63,656 71,020 63,745 71,121

AmortisationSoftware 3,339 3,965 3,339 3,965Total Amortisation 3,339 3,965 3,339 3,965

Total Depreciation and Amortisation 66,995 74,985 67,084 75,086




Note 5: Finance Costs

ParentEntity


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

Finance Charges on Finance Leases 4,373 4,504 4,373 4,504 Total Finance Costs 4,373 4,504 4,373 4,504




Note 6: Cash and Cash Equivalents

ParentEntity


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

Cash on Hand 76 78 76 78Cash at Bank* 54,856 7,094 54,857 7,094Total Cash and Cash Equivalents 54,932 7,172 54,933 7,172

Represented by:Cash for Health Service Operations (as per Cash Flow Statement) 49,498 2,071 49,499 2,071

Cash for Monies Held in Trust - - - Cash at Bank 5,434 5,101 5,434 5,101Total Cash and Cash Equivalents 54,932 7,172 54,933 7,172

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

* $51m of funding from the Commonwealth Department of Health and Ageing for the Monash Health Translation Precinct development was received in June 2012.




Note 7: Receivables

ParentEntity


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

CURRENTContractual

Inter Hospital Debtors 895 941 895 941Trade Debtors 5,197 3,298 5,197 3,299Patient Fees 15,288 10,268 20,497 15,343Accrued Revenue - Other 8,642 13,117 9,139 13,485Less Allowance for Doubtful Debts

Trade Debtors (173) (65) (173) (65)Patient Fees (1,197) (832) (1,211) (845)

28,652 26,728 34,344 32,158Statutory

GST Receivable 2,727 2,613 2,724 2,6132,727 2,613 2,724 2,613

TOTAL CURRENT RECEIVABLES 31,379 29,341 37,068 34,771

NON CURRENTStatutory

Long Service Leave - Department of Health 34,733 23,339 34,734 23,339

TOTAL NON-CURRENT RECEIVABLES 34,733 23,339 34,734 23,339TOTAL RECEIVABLES 66,112 52,680 71,802 58,110

(a) Movement in the Allowance for doubtful debtsBalance at beginning of year 897 957 910 968 Amounts written off during the year (1,228) (688) (1,228) (688)Increase/(decrease) in allowance recognisedin net result 1,701 628 1,702 630 Balance at end of year 1,370 897 1,384 910

(b) Ageing analysis of receivablesPlease refer to note 19(b) for the ageing analysis of contractual receivables

(c) Nature and extent of risk arising from receivablesPlease refer to note 19(b) for the nature and extent of credit risk arising from contractual receivables




Note 8: Inventories

ParentEntity


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

Pharmaceuticals At cost 6,304 6,071 6,304 6,071Medical and Surgical At cost 14,561 12,675 14,561 12,675General Stores At Cost 616 628 616 628Pathology At Cost 1,096 1,058 1,096 1,058Gift Shop At Cost 9 7 9 7TOTAL INVENTORIES 22,586 20,439 22,586 20,439




Note 9: Other Assets

ParentEntity


2012 2011 2012 2011CURRENT $'000 $'000 $'000 $'000Prepayments 2,340 1,642 2,343 1,642TOTAL CURRENT OTHER ASSETS 2,340 1,642 2,343 1,642

NON-CURRENTInvestment in Evivar Medical Pty Ltd 93 93 93 93TOTAL NON-CURRENT OTHER ASSETS 93 93 93 93 TOTAL OTHER ASSETS 2,433 1,735 2,436 1,735




Note 10: Investments Accounted for Using the Equity Method

ParentEntity


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

Investment in Associates 3,283 3,283 3,283 3,283 TOTAL INVESTMENT FOR USING THE EQUITY METHOD 3,283 3,283 3,283 3,283

2012 2011 2012 2011Name of Entity % % $'000 $'000Monash Health Research Precinct Pty Ltd Australia 20.33 20.33 3,283 3,283

The principal activity of the entity is property investment.

Country of Incorporation

Ownership Interest Published Fair Value




2012 2011$'000 $'000

Summarised Share of Financial Information of Associates:

Current Assets 781 605Non-Current Assets 3,546 3,727Total Assets 4,327 4,332

Current Liabilities 94 76Non-Current Liabilities 950 972Total Liabilities 1,044 1,048Net Assets 3,283 3,283

Total Income 437 301Net Result - 51

Share of Associates’ Result After Income Tax - 51

Dividends received from Associates - -

Dividends Received from Associates

Contingent Liabilities and Capital Commitments

During the year, Southern Health received dividends of $0 (2011: $0) from its associates.

There are no contingent liabilities or capital commitments arising from associates.

Note 10: Investments Accounted for Using the Equity Method (Continued)




Note 11: Property, Plant and Equipment


LandLand at Valuation 130,187 120,587 130,398 120,798 Total Land 130,187 120,587 130,398 120,798

Work in ProgressBuildings Under Construction 62,154 76,916 62,154 76,916 Software 3,862 2,466 3,862 2,466 Total Work in Progress 66,016 79,382 66,016 79,382

BuildingsBuilding at Cost 173,397 125,605 173,397 125,605

Less Accumulated Depreciation (8,037) (4,008) (8,037) (4,008) Buildings at Fair Value 484,481 484,590 484,481 484,590

Less Accumulated Depreciation (134,093) (96,437) (134,093) (96,437) Total Buildings 515,748 509,750 515,748 509,750

Plant and EquipmentPlant and Equipment at Fair Value 26,625 22,333 26,729 22,434

Less Accumulated Depreciation (15,609) (14,122) (15,674) (14,196) Total Plant and Equipment 11,016 8,211 11,055 8,238

Medical EquipmentMedical Equipment at Fair Value 126,623 120,953 127,411 121,758

Less Accumulated Depreciation (69,199) (62,720) (69,731) (63,217) Total Medical Equipment 57,424 58,233 57,680 58,541

Computers and CommunicationComputers and Communication at Fair Value 27,260 26,353 27,325 26,435

Less Accumulated Depreciation (23,454) (22,903) (23,520) (22,984) Total Computers and Communication 3,806 3,450 3,805 3,450

Furniture and FittingsFurniture and Fittings at Fair Value 2,058 2,017 2,091 2,049

Less Accumulated Depreciation (1,354) (1,357) (1,382) (1,384) Total Furniture and Fittings 704 660 709 666

Motor VehiclesMotor Vehicles at Fair Value 8,573 9,151 8,573 9,151

Less Accumulated Depreciation (7,935) (7,970) (7,935) (7,970) Total Motor Vehicles 638 1,181 638 1,181

Cultural Assets Cultural Assets at Fair Value 2,797 2,567 2,797 2,567 Total Cultural Assets 2,797 2,567 2,797 2,567

Leased AssetsBuilding Leased at Fair Value 108,663 108,972 108,663 108,972

Less Accumulated Amortisation (14,892) (9,919) (14,892) (9,919) 93,771 99,053 93,771 99,053

Building Leasehold Improvements - - 893 893Less Accumulated Amortisation - - (343) (313)

- - 550 580

Plant and Equipment at Fair Value 310 317 310 317Less Accumulated Amortisation (257) (238) (257) (238)

53 79 53 79

Medical Equipment at Fair Value 11,309 11,381 11,309 11,381 Less Accumulated Amortisation (8,969) (7,885) (8,969) (7,885)

2,340 3,496 2,340 3,496

Computers and Communications at Fair Value 841 961 841 961Less Accumulated Amortisation (841) (961) (841) (961)

- - - -

Furniture and Fittings at Fair Value 14 14 14 14Less Accumulated Amortisation (11) (9) (11) (9)

3 4 3 5Total Leased Assets 96,167 102,632 96,717 103,213

TOTAL PROPERTY, PLANT and EQUIPMENT 884,503 886,654 885,563 887,786

During the year 30 June 2005, Casey Hospital commenced operation. Construction and fit out of Casey Hospitalwas funded as a Public Private Partnership under a Project Agreement between the State of Victoria and Progress Health Pty Ltd. Southern Health is responsible for operating Casey Hospital and has recognised theleased asset and associated interest bearing liabilities (Note 14). The State of Victoria is obligated to fundquarterly service payments due to the Project Agreement for the life of that agreement, a period of up to 25 years.



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Note 12: Intangible Assets

ParentEntity


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

Software 19,333 19,322 19,333 19,322 Less Accumulated Amortisation (11,212) (7,872) (11,212) (7,872)

Total Intangible Assets 8,121 11,450 8,121 11,450

Parent Entity Consolidated$'000 $'000

Balance at 1 July 2010 10,252 10,252 Additions 5,163 5,163 Amortisation (note 4) (3,965) (3,965) Balance at 1 July 2011 11,450 11,450 Additions 10 10Amortisation (note 4) (3,339) (3,339) Balance at 30 June 2012 8,121 8,121

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

12 Intangible




Note 13: Payables


CURRENTContractualTrade Creditors 28,767 28,626 28,784 28,630Accrued Expenses 14,832 20,792 14,744 21,127Payment Doctors 63 40 63 40Superannuation accrual 5,758 7,013 5,758 7,013Inter-entity Loan to Kitaya Holdings Pty Ltd 4,250 3,860 - -Prepaid Revenue - Department of Health 12,019 1,780 12,019 1,780Other 2,432 2,030 2,447 1,975TOTAL PAYABLES 68,121 64,141 63,815 60,565

(a) Maturity analysis of payablesPlease refer to Note 19c for the ageing analysis of contractual payables

(b) Nature and extent of risk arising from payablesPlease refer to note 19c for the nature and extent of risks arising from contractual payables

13 Payable




Note 14: Borrowings


CURRENTAustralian Dollar Borrowings– Finance Lease Liability (i) 2,359 2,219 2,359 2,219 – Treasury Corporation of Victoria Carpark Loan 1,688 1,688 1,688 1,688Total Australian Dollars Borrowings 4,047 3,907 4,047 3,907

Total Current 4,047 3,907 4,047 3,907

NON-CURRENTAustralian Dollar Borrowings– Finance Lease Liability (i) 68,034 70,393 68,034 70,393 – Treasury Corporation of Victoria Carpark Loan 17,056 17,498 17,056 17,498Total Australian Dollars Borrowings 85,090 87,891 85,090 87,891

Total Non-Current 85,090 87,891 85,090 87,891

Total Borrowings 89,137 91,798 89,137 91,798

(a) Maturity analysis of borrowingsPlease refer to note 19(c) for the ageing analysis of borrowings.

(b) Nature and extent of risk arising from borrowings

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

Please refer to note 19(c) for the nature and extent of risks arising from borrowings.

(i) During the year ended 30 June 2005, Casey Hospital commenced operation. Construction and fit out of Casey Hospital was funded as Public Private Partnership under a Project Agreement between the State of Victoria and Progress Health Pty Ltd. Southern Health is responsible for operating Casey Hospital and has recognised the leased asset (Note 11) and associated interest bearing liabilities. The State of Victoria is obligated to fund quarterly service payments due under the Project Agreement for the life of that agreement, a period of up to 25 years.

14 Interest Bearing




Note 15: Provisions


Current ProvisionsEmployee Benefits (i)

- Unconditional and expected to be settled within 12 months (ii) 92,781 74,315 92,965 74,315 - Unconditional and expected to be settled after 12 months (iii) 77,867 73,725 77,867 73,725

170,648 148,039 170,832 148,039Provisions relating to Employee Benefit On-Costs

- Unconditional and expected to be settled within 12 months (ii) 9,666 8,767 9,667 8,767 - Unconditional and expected to be settled after 12 months (iii) 13,954 13,109 13,954 13,109

23,620 21,876 23,621 21,876Total Current Provisions 194,268 169,916 194,453 169,916

Non-Current ProvisionsEmployee Benefits (i) 33,829 27,425 33,829 27,425Provisions related to Employee Benefit On-Costs 6,111 4,954 6,111 4,954Total Non-Current Provisions 39,940 32,378 39,940 32,378

Total Provisions 234,208 202,295 234,393 202,295

(a) Employee Benefits and Related On-Costs

Current Employee Benefits and related on-costsUnconditional Long Service Leave Entitlement 97,744 79,010 97,744 79,010Annual Leave Entitlements 65,938 63,827 65,938 63,827Accrued Wages and Salaries 27,263 23,794 27,447 23,794Accrued Days Off 3,323 3,284 3,323 3,284Non-Current Employee Benefits and related on-costsConditional Long Service Leave Entitlements (iii) 39,940 32,379 39,941 32,379Total Employee Benefits and Related On-Costs 234,208 202,294 234,393 202,294

Notes:

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

(b) Movements in provisionsMovement in Long Service Leave:Balance at start of year* 120,239 109,892 120,239 109,892Provision made during the year 28,994 20,442 28,994 20,442Settlement made during the year (11,549) (10,095) (11,549) (10,095)Balance at end of year* 137,684 120,239 137,684 120,239

* Balances are inclusive of on-costs and agree with disclosures in note 15(a)

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




Note 16: Other Liabilities


CURRENTMonies Held in Trust* - Patient Monies Held in Trust* 336 231 336 231 - Accommodation Bonds (Refundable Entrance Fees)* 5,098 4,871 5,098 4,871Total Other Liabilities 5,434 5,101 5,434 5,101

* Total Monies Held in TrustRepresented by the following assets:Cash Assets (refer to Note 6) 5,434 5,101 5,434 5,101TOTAL 5,434 5,101 5,434 5,101

16 Other Liab




Note 17: Equity


(a) Surpluses

Property, Plant and Equipment Revaluation Surplus 1

Balance at the beginning of the reporting period 319,318 319,318 319,487 319,487 Balance at the end of the reporting period* 319,318 319,318 319,487 319,487

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

319,318 319,318 319,487 319,487

(1) The property, plant and equipment revaluation surplus arises on the revaluation of land and buildings, cultural assets and motorvehicles.

17 Reserves




Note 17: Equity (continued)


Restricted Specific Purpose SurplusBalance at the beginning of the reporting period 3,197 2,761 3,197 2,761 Transfer to and from accumulated funds (164) 436 (164) 436 Balance at the end of the reporting period 3,033 3,197 3,033 3,197

Total Surpluses 322,351 322,515 322,520 322,684

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

(c) Accumulated Surpluses/(Deficits)Balance at the beginning of the reporting period (104,329) (104,130) (94,362) (94,743) Net Result for the Year 24,991 237 25,728 817 Transfer from Restricted Specific Purpose Reserve 164 (436) 164 (436) Balance at the end of the reporting period (79,174) (104,329) (68,470) (94,362)

Total Equity at end of financial year 645,070 620,079 655,945 630,217

17.1 Reserves





Net Result for the Year 24,991 237 25,728 817

Depreciation and Amortisation 66,995 74,985 67,084 75,086Provision for Doubtful Debts 473 (60) 473 (58)Net Loss from Sale of Plant and Equipment 312 124 312 140Net Movement in Finance Leases (2,220) (2,219) (2,220) (2,219)Assets received free of charge (9,600) - (9,600) -Change in Operating Assets and Liabilities

(Increase) in Receivables (13,360) (7,780) (13,692) (8,271)(Increase) in Prepayments (701) (203) (701) (203)

Increase in Payables and Other Liabilities 4,242 3,887 3,580 3,706 Increase in Provisions 31,914 21,559 32,099 21,559

(Increase) in Inventories (2,147) (3,850) (2,147) (3,850)NET CASH INFLOW FROM OPERATING ACTIVITIES 100,899 86,680 100,916 86,707

Note 18: Reconciliation of Net Result for the Year to Net Cash Inflow/(Outflow) from Operating Activities

18 Recon Net CF




Note 19: Financial Instruments

(a) Financial risk management objectives and policies

Southern Health's principal financial instruments comprise of: - Cash Assets - Receivables (excluding statutory receivables) - Payables (excluding statutory payables) - Finance Lease payables - Accommodation Bonds

Categorisation of financial instruments

CarryingAmount Carrying Amount

2012 2011$'000 $'000

Financial AssetsCash and cash equivalents 54,933 7,172 Loans and Receivables 34,344 32,158 Total Financial Assets (i) 89,277 39,330

Financial LiabilitiesPayables 63,815 60,565 Interest Bearing Liabilities 89,137 91,798 Accommodation Bonds 5,098 4,871 Other Liabilities 336 231 Total Financial Liabilities 158,386 157,465

Net holding gain/(loss) on financial instruments by category

Net holding gain/(loss)

Net holding gain/(loss)

2012 2011$'000 $'000

Financial AssetsCash and Cash Equivalents (i) 2,350 1,620 Loans and Receivables (i) (1,069) (338) Total Financial Assets 1,281 1,282

Financial LiabilitiesPayables (ii) 251 288 Interest Bearing Liabilities (ii) (4,373) (4,504) Accommodation Bonds (ii) 77 90 Total Financial Liabilities (4,045) (4,126)

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

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

(i) The total amount of financial assets disclosed here excludes statutory receivables (i.e. GST input tax credit recoverable)

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

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




Note 19: Financial Instruments (continued)

(b) Credit risk

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

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

Financial Assets

Cash and Cash Equivalents 54,857 76 - 54,933 Receivables (i) - 594 7,681 8,275

Total Financial Assets 54,857 670 7,681 63,208

2011Financial AssetsCash and Cash Equivalents 7,094 78 - 7,172 Receivables (i) - 736 9,807 10,543

Total Financial Assets 7,094 814 9,807 17,715

Ageing analysis of Financial Assets as at 30 June

Less than 1 Month

1-3 Months 3 months - 1 Year

1-5 Years

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

Financial Assets

Cash and Cash Equivalents 54,933 54,933 - Receivables (i) 34,344 8,275 14,861 6,310 4,283 615

Total Financial Assets 89,277 63,208 14,861 6,310 4,283 615 -

2011Financial AssetsCash and Cash Equivalents 7,172 7,172 - Receivables (i) 32,158 10,543 12,704 6,241 1,976 694 -

Total Financial Assets 39,330 17,715 12,704 6,241 1,976 694 -

Credit risk arises from the contractual financial assets of Southern Health, which comprise cash and deposits, non-statutory receivables and available for sale contractual financial assets. Southern Health’s exposure to credit risk arises from the potential default of a counter party on their contractual obligations resulting in financial loss to Southern Health. Credit risk is measured at fair value and is monitored on a regular basis.

Credit risk associated with the Southern Health’s contractual financial assets is minimal because the main debtor is the Victorian Government. For debtors other than the Government, it is Southern Health’s policy to only deal with entities with a satisfactory credit rating and to obtain sufficient collateral or credit enhancements, where appropriate.

In addition, Southern Health does not engage in hedging for its contractual financial assets and mainly obtains contractual financial assets that are on fixed interest, except for cash assets, which are mainly cash at bank. As with the policy for debtors, Southern Health’s policy is to only deal with banks with high credit ratings.Provision of impairment for contractual financial assets is recognised when there is objectiveevidence that Southern Health will not be able to collect a receivable. Objective evidence includes financial difficulties of the debtor, default payments, debts which are more than 60 days overdue, and changes in debtor credit ratings.

Except as otherwise detailed in the following table, the carrying amount of contractual financial assets recorded in the financial statements, net of any allowances for losses, represents Southern Health’s maximum exposure to credit risk without taking account of the value of any collateral obtained.

Governmentagencies

(AAA credit rating)

Other

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

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

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

Total

CarryingAmount

Past Due But Not ImpairedNot Past Due and Not

Impaired

ImpairedFinancial

Assets

Financialinstitutions(AA- credit

rating)

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





(c) Liquidity risk

CarryingAmount

ContractualCash Flows

Less than 1 Month

1-3Months

3 months -1 Year

1-5 Years Over 5 Years

2012 $'000 $'000 $'000 $'000 $'000 $'000 $'000Financial LiabilitiesPayables 63,815 63,815 47,030 16,677 108 Borrowings 89,137 89,137 576 1,007 2,463 22,651 62,440 Other Financial Liabilities (i) - Accommodation Bonds 5,098 5,098 - 55 166 2,215 2,661 - Other 336 336 336 - - - -

Total Financial Liabilities 158,386 158,386 47,942 17,739 2,737 24,866 65,101

2011Financial LiabilitiesPayables 60,565 60,565 44,229 15,628 708 - - Borrowings 91,798 91,798 542 972 2,392 21,811 66,081 Other Financial Liabilities (i) - Accommodation Bonds 4,871 4,871 - 53 159 2,117 2,542 - Other 231 231 231 - - - -

Total Financial Liabilities 157,464 157,464 45,002 16,653 3,259 23,928 68,624

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

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

Maturity Dates

The following table discloses the contractual maturity analysis for Southern Health's financial liabilities. For interest rates applicable to each class of liability refer to Note 19(d).

Maturity analysis of Financial Liabilities as at 30 June

19.2 Liquidity risk





(d) Market risk

Currency risk

Interest rate risk

Other price riskSouthern Health is not subject to any other price risks.

Interest rate exposure of financial assets and liabilities as at 30 JuneWeighted CarryingAverage Amount Fixed Variable Non-Effective Interest Interest InterestInterest Rate Rate Bearing

2012 Rate (%) $'000 $'000 $'000 $'000Financial AssetsCash and Cash Equivalents 4.23 54,933 - 54,933 - Receivables(i) 34,344 - - 34,344

89,277 - 54,933 34,344 Financial LiabilitiesPayables(i) 63,815 - - 63,815 Borrowings 6.21 89,137 89,137 - - Other Financial Liabilities - Accommodation Bonds 5,098 - - 5,098 - Other 336 - - 336

158,386 89,137 - 69,249 2011Financial AssetsCash and Cash Equivalents 4.56 7,172 - 7,172 - Receivables(i) 32,158 - - 32,158

39,330 - 7,172 32,158 Financial LiabilitiesPayables(i) 60,565 - - 60,565 Borrowings 6.66 91,798 91,798 - - Other Financial Liabilities - Accommodation Bonds 4,871 - - 4,871 - Other 231 - - 231

157,464 91,798 - 65,666

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

Southern Health's exposures to market risk are primarily through interest rate risk with only insignificant exposure to foreign currency and other price risks. Objectives, policies and processes used to manage each of these risks are disclosed in the paragraph below.

Interest Rate Exposure

Southern Health is exposed to insignificant foreign currency risk through its payables relating to purchases of supplies and consumables from overseas. This is because of a limited amount of purchases denominated in foreign currencies and a short timeframe between commitment and settlement.

Exposure to interest rate risk might arise primarily through Southern Health's interest bearing liabilities. Minimisation of risk is achieved by mainly undertaking fixed rate or non-interest bearing financial instruments. For financial liabilities, Southern Health mainly undertake financial liabilities with relatively even maturity profiles.



Notes To and Forming Part of the Financial StatementsSouthern Health Annual Report 2011/2012


(d) Market risk (continued)Sensitivity disclosure analysis

- A shift of +1.25% and -1.25% in market interest rates (AUD) from year-end rates of 3.50%

CarryingAmount

Profit Equity Profit Equity2012 $'000 $'000 $'000 $'000Financial AssetsCash and Cash Equivalents 54,933 (687) (687) 687 687

(687) (687) 687 687 2011Financial AssetsCash and Cash Equivalents 7,172 (18) (18) 18 18

(18) (18) 18 18

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

-1.25% +1.25%

-0.25% +0.25%

Interest Rate Risk

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





(e) Fair value

Comparison between carrying amount and fair value

CarryingAmount

Fair value Carrying Amount

Fair value

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

Financial Assets

Cash and Cash Equivalents 54,933 54,933 7,172 7,172 Receivables(i) 34,344 34,344 32,158 32,158 Total Financial Assets 89,277 89,277 39,330 39,330

Financial LiabilitiesPayables 63,815 63,815 60,565 60,565 Borrowings 89,137 89,137 91,798 91,798 Other Financial Liabilities(i)

- Accommodation Bonds 5,098 5,098 4,871 4,871 - Other 336 336 231 231 Total Financial Liabilities 158,386 158,386 157,464 157,464

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

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

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

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




Note 20: Commitments


Capital expenditure commitmentsPayable:Land and Buildings 530 40,189 530 40,189Plant and Equipment 4,302 1,366 4,302 1,366Total capital expenditure commitments 4,832 41,555 4,832 41,555

Land and BuildingsNot later than one year 530 40,189 530 40,189Later than 1 year and not later than 5 years - - - - Plant and Equipment - - - - Not later than one year 4,302 1,366 4,302 1,366Total 4,832 41,555 4,832 41,555

Other expenditure commitmentsPayable:Contracted Services 99,227 89,640 99,227 89,640Total other expenditure commitments 99,227 89,640 99,227 89,640

Not later than one year 36,021 29,022 36,021 29,022Later than 1 year and not later than 5 years 58,399 48,584 58,399 48,584 Later than 5 years 4,807 12,034 4,807 12,034TOTAL 99,227 89,640 99,227 89,640

Operating LeasesCancellableNot later than one year 2,650 2,714 2,650 2,714Later than 1 year and not later than 5 years 5,414 3,803 5,414 3,803 Later than 5 years 108 365 108 365Sub Total 8,172 6,882 8,172 6,882

Facility Management (Casey Hospital)*Payable:Not later than one year 6,592 6,592 6,592 6,592Later than 1 year and not later than 5 years 32,960 29,953 32,960 29,953 Later than 5 years 74,718 84,317 74,718 84,317Deduct future finance charges (43,876) (48,250) (43,876) (48,250)TOTAL 70,394 72,613 70,394 72,613

Total Leases 78,566 79,495 78,566 79,495

Total Commitments (inclusive of GST) 182,625 210,690 182,625 210,690less GST recoverable from the Australian Tax Office (16,602) (19,154) (16,602) (19,154)Total Commitments (exclusive of GST) 166,023 191,536 166,023 191,536

All amounts shown in the commitments note are nominal amounts inclusive of GST.

* Fully funded by Department of Health




Note 21: Contingent Assets and Contingent LiabilitiesThere are no contingent assets (2011: $0).

There are no contingent liabilities (2011: contingent liabilities in respect of grants received from the Department of Health that may be subject to recall: $259,000).



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2011

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2011

2012

2011

2012

2011

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Note 22: Segment Reporting (continued)

The major products/services from which the above segments derive revenue are:

Residential Aged Care Residential Aged Care services.Acute Health Acute Medical Care Unit, Emergency Medicine,

General Medicine, Infectious diseases, Medical Oncology, Palliative Care, Respiratory Medicine

Mental Health Adolescent Recovery Centre, Adult Inpatient Psychiatry Service, Crisis Assessment, Emergency Psychiatric Services, Mother and Baby Inpatient Unit

Primary Care Acquired Brain Injury, AIDS prevention, Allied Health and Rehabilitation, Birthing support, Community Nursing, Dental, Diabetes education, Hospital in the Home, Housing

Aged Care Aged Care services excluding Residential Aged Care

Other Includes clinical support such as Pharmacy, Imaging, Pathology

Geographical Segment

Business Segments Types of services provided

Southern Health operates predominantly in the South East of metropolitan Melbourne, Victoria.




Note 23a: Responsible Persons Disclosures

Governing BoardsMs Barbara YeohMs Debbie WilliamsMs Helen OwensMr David CowlishawMr David TaylorMr Charles GilliesMr Errol KatzMr Ross McClymontMs Linda PerryAccountable OfficersMs Shelly Park

Remuneration of Responsible PersonsThe number of Responsible Persons are shown in their relevant income bands;

2012 2011 2012 2011Income Band No. No. No. No.$30,000 - $39,999 8 8 8 8$60,000 - $69,999 1 1 1 1$400,000 - $409,999 - 1 - 1$430,000 - $439,999 1 - 1 -Total Numbers 10 10 10 10

$753 $726 $753 $726

$'000 $'000 $'000 $'000- - - -

Transactions with Controlled entity

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

The aggregate amounts brought to account in respect of the following types of transactions were:2012 2011

Rental income received from its controlled entity 1,034,279 1,034,279 Contracted Goods & Services provided to its controlled entity 36,630,781 35,454,189

Amounts owing at Balance Date Amount owing to controlled entity 4,251,256 3,910,122

Other Transactions of Responsible Persons and their Related Parties.

1/7/2011 - 30/6/20121/7/2011 - 30/6/2012

The Honourable David Davis, MLA, Minister for Health and AgeingThe Honourable Mary Wooldridge, MLA, Minister for Mental Health

1/7/2011 - 30/6/20121/7/2011 - 30/6/2012

Total remuneration received or due and receivable by Responsible Persons from the reporting entity amounted to ($'000):Amounts relating to Responsible Ministers are reported in the financial statements of the Department of Premier and Cabinet

Parent

1/7/2011 - 30/6/2012

1/7/2011 - 30/6/2012

1/7/2011 - 30/6/2012

Consolidated

Responsible Ministers:

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

1/7/2011 - 30/6/20121/7/2011 - 30/6/2012

1/7/2011 - 30/6/20121/7/2011 - 30/6/2012

1/7/2011 - 30/6/2012




Note 23b: Executive Officer Disclosures

Executive Officers' RemunerationThe numbers of executive officers, other than Ministers and Accountable Officers, and their total remuneration during the reporting period are shown in the first two columns in the table below in their relevant income bands. The base remuneration of executive officers is shown in the third and fourth columns. Base remuneration is exclusive of bonus payments, long-service leave payments, redundancy payments and retirement benefits.

2012 2011 2012 2011 2012 2011 2012 2011No. No. No. No. No. No. No. No.

$70,000 - $79,999 - 1 - 1 - 1 - 1$120,000 - $129,999 - - - 1 - - - 1$130,000 - $139,999 - 1 - - - 1 - -$170,000 - $179,999 - - - 1 - - - 1$180,000 – $189,999 - 1 1 2 - 1 1 2$190,000 - $199,999 - 1 - - - 1 - -$200,000 – $209,999 - 1 2 2 - 1 2 2$210,000 – $219,999 1 - 1 - 1 - 1 -$220,000 – $229,999 1 - 1 - 1 - 1 -$230,000 – $239,999 1 - 1 1 1 - 1 1$240,000 – $249,999 1 2 - - 1 2 - -$250,000 – $259,999 - - - 1 - - - 1$260,000 – $269,999 1 1 - - 1 1 - -$270,000 – $279,999 1 - - - 1 - - -$280,000 - $289,999 - - 2 1 - - 2 1$290,000 – $299,999 - 1 - - - 1 - -$300,000 – $309,999 2 - - - 2 - - -$320,000 – $329,999 - 1 - - - 1 - -Total 8 10 8 10 8 10 8 10Total Remuneration ($'000) 2,072$ 2,183$ 1,836$ 1,920$ 2,072$ 2,183$ 1,836$ 1,920$

Base RemunerationPARENT CONSOLIDATED

Total Remuneration Base Remuneration Total Remuneration




Note 24: Events Occurring after the Balance Sheet Date

There have been no significant events after reporting date.




Note 25: Controlled Entities

Name of entity Country of incorporation

EquityHolding

Kitaya Holdings Pty Ltd (trading as Jessie McPherson Private Hospital) Australia 100%




Note 26: Prior year adjustment

In September 2011, it was discovered that income received in relation to the PBS scheme had been overstated in the 2010-11 financial year by $2,032,000.

This adjustment also had the effect of overstating receivables and total assets by $2,032,000, and subsequently net result and total equity by $2,032,000, as at 30 June 2011.

The adjustment as described above has been corrected by restating each of the affected financial statement line items for the prior year, as described above.




Note 27: Economic Dependency

Southern Health is wholly dependent on the continued financial support of the State Government and in particular, the Department of Health. The Department of Health has provided confirmation that it will continue to provide Southern Health adequate cash flow support to meet its current and future obligations as and when they fall due for a period up to September 2013.



Notes


Southern Health Corporate Office

246 Clayton Road Claytont: 03 9594 6666e: [email protected]

www.southernhealth.org.au

Casey Hospital 62-70 Kangan DriveBerwickt: 03 8768 1200

Cranbourne Integrated Care Centre 140-154SladenStreetCranbournet: 03 5990 6789

Dandenong Hospital 135DavidStreetDandenongt: 03 9554 1000

Kingston Centre Cnr Kingston and Warrigal RoadsCheltenhamt: 03 9265 1000

Monash Medical Centre Clayton 246 Clayton RoadClaytont: 03 9594 6666

Monash Medical Centre Moorabbin 823-865 Centre RoadEast Bentleight: 03 9928 8111

Cardinia Casey Community Health Service

Berwick28ParkhillDriveBerwick3806t: 03 8768 5100

Cockatoo7-17McBrideStreetCockatoo3781t: 03 5968 7000

Cranbourne140-154SladenStreetCranbourne 3977t: 03 5990 6789

CranbournePlannedActivityGroup7 Mundaring Dve, CranbourneT: 03 59965339

Doveton67PowerRoadDoveton 3177t: 03 9212 5700

PakenhamCnrDeveneyStreetandPrincesHighwayPakenham3781t: 03 5941 0500

Greater Dandenong Community Health Service

Springvale55BuckinghamAvenueSpringvale3171t: 03 8558 9000

Dandenong229ThomasStreetDandenong 3175t: 03 8792 2200

Dandenong135DavidStreetDandenong 3175t: 03 9554 8270

ParkdaleHomeBasedAlliedHealth(HBAH)335NepeanHighwayParkdale3195t: 85870192

CheltenhamKingstonAdultDayActivityService(KADAS)SouthernCommunityChurchofChrist1-8 Chesterville RoadCheltenham 3192t: 95836471

Specialist ClinicsCnr Kingston and Warrigal RoadsCheltenham 3192t: 03 9265 1401


Southern Health Corporate Office

246 Clayton Road Claytont: 03 9594 6666e: [email protected]

www.southernhealth.org.au

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