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Colac Area HealthColac Area HealthAnnual Report 2004Annual Report 2004

Leading the WayLeading the Way

Vision

Colac Area Health aims to be a recognised leader in the

development and provision of responsive, integrated health care

Mission

To promote the health and wellbeing of the Colac and district community through the provision of quality acute, aged, residential and community services that are

accessible, affordable, fl exible and integrated.

Q U A L I T Y C O M M U N I T Y C A R E

ContentsContents

The Colac Area Health logo was designed to represent the combination of all health service organisations into one modern effi cient organisation dedicated to providing quality healthcare to the Colac district. This is achieved through the use of three elements:

• the motif, an outgoing expression of wellness• the typeface, simple, strong and readable• the colours, representing a new vibrant outlook.

The Colac Area Health logo is the inspiration for the theme of this report.

Front Cover:

Colac Area Health remains at the forefront in health service delivery. Our

integrated model is leading the way for other health facilities.

Colac Area Health Annual Report 2004

Page

IFC IFC Vision and MissionVision and Mission

3 3 Highlights

3 3 Significant FactsSignifi cant Facts

4 4 Our OrganisationOur Organisation

5 5 Our ServicesOur Services

6 6 Our PerformanceOur Performance

7 7 Organisational ChartOrganisational Chart

8 8 Key Reporting AreasKey Reporting Areas

16 Corporate GovernanceCorporate Governance

16 Board of DirectorsBoard of Directors

19 Chairman’s ReportChairman’s Report

20 Chief Executive Officer’s ReportChief Executive Offi cer’s Report

23 Acute and Aged Care ServicesAcute and Aged Care Services

26 Education ServicesEducation Services

28 Medical ServicesMedical Services

28 Consultant Director of MedicalConsultant Director of Medical Services ReportServices Report

28 Visiting Medical StaffVisiting Medical Staff

29 Primary Care ServicesPrimary Care Services

33 Staff RelationsStaff Relations

34 Occupational Health and SafetyOccupational Health and Safety

36 Employee Service AwardsEmployee Service Awards

36 Executive Management TeamExecutive Management Team

36 Senior Staff ListSenior Staff List

37 Improving PerformanceImproving Performance

38 Quality DevelopmentQuality Development

39 Information ServicesInformation Services

39 Infection ControlInfection Control

40 Health Information ServicesHealth Information Services

40 Compliments and ComplaintsCompliments and Complaints

41 Environmental ServicesEnvironmental Services

42 Waste ManagementWaste Management

44 Our CommunityOur Community

45 Calendar of EventsCalendar of Events

45 Volunteers/Certificates ofVolunteers/Certifi cates of ApprecitationApprecitation

46 Compliance IndexCompliance Index

47 Financial ServicesFinancial Services

67 CertificationCertifi cation

68 Auditor-General’s ReportAuditor-General’s Report

69 Legislative RequirementsLegislative Requirements

70 Publications

71 Sponsors and GlossarySponsors and Glossary

IBCIBC QuestionnaireQuestionnaire

• Completion of ‘Big House Project’ (Chief Executive’s Report Page 21)

• Offi cial opening of Helen Macpherson Smith Trust Conference Centre

• Colac Otway Shire Business Award - Birregurra Community Health Centre - Community Award (Primary Care Report 1)

• Launch of History Book - “Quality Community Care” (Our Organisation Page 4 and Chairman’s Report Page 19)

• Baby Friendly Accreditation received November, 2003 (Acute and Aged Care Report Page 24)

• Neighbourhood Renewal Program (Primary Care Report Page 31)

• $14M funding received for Aged Care Redevelopment (Chief Executive’s Report Page 20)

• Visit to Colac Area Health by Minister for Aged Care Hon. G. Jennings

• Farewell to old hospital building

• Bronze Award received for 2003 Annual Report at Australasian Reporting Awards

• Building synergies with other likeorganisations (Chief Executive’s Report Page 22)

Significant FactsSignifi cant Facts

HighlightsHighlights

Leading the Way

3

Financial 2003/2004 2002/2003 2001/2002 2000/2001

Total Revenue 25,165,947 27,835,998 26,611,641 22,442,747

Total Expenditure 25,676,618 24,270,073 22,675,209 22,821,591

Revaluation Increment 2,243,556 - -

Fund Decrease Resulting

from Change in Accounting

Policy

(35,215) - -

Surplus/(Defi cit) inc. Capital Income and Unfunded Depreciation

(510,671) 5,774,266 3,936,432 (378,854)

Total Assets 29,007,894 28,617,037 22,429,913 17,509,579

Total Liabilities 6,808,388 5,909,754 5,497,941 4,477,922

Total Equity 22,199,506 22,707,283 16,931,972 13,031,657

Staff

Equivalent Full Time 282.55 283.80 271.51 263.73

Bed Days

Hospital 13,602 14,809 15,344 16,147

Aged Care 25,965 27,713 28,132 27,613

Average Length of Stay 3.05 3.32 3.54 3.63

Births 190 168 206 195

Operations 1999 2,108 1,903 2,093

Inpatient Statistics 2003/2004 2002/2003 2001/2002 2000/2001

Same Day 2,231 2,281 1,890 1,919

Multi Day 2,231 2,293 2,450 2,535

TOTAL SEPARATIONS 4,462 4,574 4,340 4,454

WIES 2,822 2,859 3,005 3,113

Aged Care Statistics

Residents 155 112 115 123

Emergency Department

Outpatient Attendances 8,091 8,091 7,081 7,057

Community Services

Total Contacts 52,707 52,531 51,792 46,918

Total Clients 13,315 15,405 13,301 13,692

Colac Area Health provides services to Colac Otway, Corangamite and Surf Coast Shires with a catchment population of approximately 30,000.

Colac Area Health is a unique, integrated Health Service model which provides Acute, Aged Care, Primary Care and Allied Health services.We currently operate a Public Health Service (50 beds), two Aged Care facilities (under one license 78 beds), Birregurra Community Health Centre, Home Nursing incorporating Home and Community Care, Hospital in the Home, Post Acute Care and Palliative Care, and an extensive range of Primary Care services.

Our HistoryColac Community Health Services was established on 1 July, 1995 by the amalgamation of Colac District Hospital, Colac Area Community Health Centre Incorporated and Colac Housing and Financial Counselling Service. A further amalgamation took place with the Birregurra and District Community Hospital on 1 January, 1997. From 1 July, 2002 the organisation offi cially became known as Colac Area Health.

To celebrate our history, Colac Area Health commissioned the services of Dr. Dawn Peel to document our comprehensive history. Her book ‘Quality Community Care - Colac District Hospital 1882 to Colac Area Health 2003’ was offi cially launched in March, 2004.

Colac Area Health commenced a major Redevelopment Project in December, 2001. Stage 1A comprised the construction of a two storey building which provides temporary accommodation for the Primary Care staff and permanent accommodation for Pharmacy and

Pathology services. This building also includes the Helen Macpherson Smith Trust Conference Centre which provides an excellent venue for staff education. Stage 1B, the Acute Medical Services building was completed in February, 2003. The main reception entrance is now located in Connor Street. This is the fi rst major redevelopment of acute patient services since 1971. The quality of accommodation and services provided is modern, comfortable and peaceful and refl ects our community’s needs. This building comprises 15 single rooms, 9 double rooms, 2 x 4 bed rooms, 2 birthing suites, 7 day surgery beds, Emergency Department, Operating Suite and Central Sterilizing Supply Department.

About ColacThe Colac Otway Shire is one of the most picturesque municipalities in Victoria, covering a diverse area from volcanic lakes, craters and plains in the north, through to the Hinterland Forests of the Otway Ranges to the Great Ocean Road coastline. The area provides diverse employment through a range of primary industries, tourism and commercial and community services.

Colac is the key industrial, commercial and service centre for the Colac Otway and surrounding region with a population of 12,000.

Our OrganisationOur Organisation

4


Main Entrance Acute Medical Services building. Senior staff with 210 years combined service outside

old hospital building before demolition.

Our ServicesAcute Care:• Day Chemotherapy • Emergency Department • General Medicine • Haemodialysis • Obstetrics and Gynaecology • Paediatrics • Psychiatry • Rehabilitation • Surgery – Dental, General, Gynaecology, Ophthalmology, Orthopaedic, Urology

Aged Care:• Otway Pioneers House • Polwarth House• Residential and Respite Care

Home Nursing: • Colanda Nursing Service • Continence Resource• Diabetes Education • Home Nursing • Hospital in the Home

• Lymphoedema Clinic• Maternity Outreach • Palliative Care Nursing/Volunteers• Wound Management Resource

Barwon Post Acute Care

Diagnostic Services:• Pathology • Radiology/Medical Imaging

Allied Health and Support: • Adult Day Activity Service • Be Active, Eat Well• Dental Clinic

• Dietetics• Nutrition• Occupational Therapy • Pharmacy • Physiotherapy • Podiatry • Rehabilitation• Social Work • Speech Pathology

Community Programs:• Alcohol and Other Drugs• Birregurra Health Centre• Community Health• Family Violence Prevention and Support (Regional Networker) Children’s Resource Programme (Regional Networker)• Gambler’s Help• Neighbourhood House• Psychology• Supported Accommodation Assistance Programme (Regional Networker)• Women’s Health• Youth Development

Family Development Services:• Family Support• Financial Counselling• Housing Worker• Women’s Counsellor• Youth and Children’s Worker

Visiting Services:• There are Visiting Services such as Family Planning, Drink Driver Education, Barwon Youth Accommodation Service, Legal Aid and Geelong Centre Against Sexual Assault.

Leading the Way

5

With the relocation of Acute Inpatient Services to the new facility on 24 February, 2003 acute bed numbers were reduced from 55 to 50 beds. This lowering of bed numbers will have an obvious affect on comparative occupancy levels in succeeding years.

Our PerformanceOur Performance

5 Year Financial Comparison

TotalRevenue

TotalExpenses

1999/2000 17,518,717 18,007,717

2000/2001 22,442,747 22,821,591

2001/2002 26,611,641 22,675,209

2002/2003 27,835,998 24,272,073

2003/2004 25,165,947 25,676,618

Hospital Bed Days

1999/2000 16,670

2000/2001 16,147

2001/2002 15,344

2002/2003 14,809

2003/2004 13,602

Weighted Inlier Equivalent Separations (WIES)

1999/2000 3,314

2000/2001 3,113

2001/2002 3,005

2002/2003 2,859

2003/2004 2,822

6


Organisational ChartOrganisational Chart

Leading the Way

7

Board of Directors

Director of Nursing

Health Promotion Manager

Administration Unit Manager

Complaints Liaison Team

T H E C O M M U N I T Y

Director of Finance/

DCEO

Financial Services Team

Administration

Finance

Health Information

Information Services

Supply

Client Centred ServicesAlcohol and other Drug Birregurra Community Health Centre Community Health Psychology

Networkers & Community DevelopmentNeighbourhood House Networkers Youth Development/Outreach

Family Support Financial Counsellors Housing Worker Women’s Counsellor Youth and Children’s Worker

Adult Day Activity Centre Allied Health Assistants Dental Clinic Dietetics Nutrition Occupational Therapy Physiotherapy Podiatry Rehabilitation Social Worker Speech Pathology

Chairman of Visiting Medical

Staff

Visiting Medical StaffConsultant

Director of Medical Services

Pathology Radiology

(Privatised)

Home Nursing Unit Manager

Continence

Diabetes Education

Hospital in the Home

Lymphoedema

Palliative Care

Post Acute Care

Chiefecutive

Officer

Director of Primary

Care

ClientDuty

Worker

Primary Care Team

Community Programs Manager

Family Development Manager

Allied Health Team Manager

Acute Ward

Assistant Directors of Nursing (ADON)

ADON Business Manager

Clinical Nurse Educators

Education Services

Emergency Department

Infection Control Coordinator

Operating Suite/Day Surgery Unit/

CSSD/Haemodialysis

Otway Pioneers House

Polwarth House

Pre-Admission Discharge Planning Coordinator

Personal Assistant, DON

Acute and Aged Care Services Team

Engineering

General Services

Human Resources

Operational Support Administrator

Pharmacy

Quality Development

Personal Assistant, CEO

Special Projects Manager

Corporate Services Team

Executive Management

Team

KEYREPORTING AREA

OBJECTIVES STRATEGIES

1.To support and enhance the wellbeing of consumers by a culture that is sensitive and responsive to their needs.

Awareness raising through training and education

Develop a culturally and linguistically diverse (CALD) strategy that includes:

• The identifi cation of the project worker to develop CALD area for Colac Area Health

• CALD information to be included in the staff orientation program

• CALD Issues to be included into the Health Promotion Plan

• Relevant information accessible on the Intranet and Internet site (when available)

• Establish direct links with maternity services

• Facilitate links with other CALD support services in the Colac area

Baby Friendly Accreditation

Further development of volunteer program for Colac Area Health

Education for staff to enhance service delivery

Reception and other frontline staff to be offered customer service program (inclusive of CALD information)

Respond to consumer and staff feedback Food Services Review in Residential Aged Care facilities

Hot Chips Survey

Be Active Eat Well (BAEW) Project

Key Reporting AreasKey Reporting Areas

8


ACHIEVEMENTS FUTURE DIRECTIONS

Project worker appointed

This has now been added into the Orientation package provided to all new staff to Colac Area Health

Maternity Information translated into Nuer (Sudanese) located on the intranet site for ease of access to staffMidwifery staff working directly with the Sudanese group

There is a growing CALD group in this area. For Colac Area Health to monitor needs and requirements so as to be in a position to respond and also be proactive in this area

Director of Nursing and

midwives accepting Baby

FriendlyAccreditation Certifi cate.

Further details on page 24

New Menu development - staff

participating in “tasting”

sessions. Further details on page

42

These links are now in place with Colac ACE and are being further developed with other providers

Develop links with CALD providers in areas beyond Colac

Successfully achieved for 3 years Develop recommendations from Accreditation Report

Project worker appointed to develop protocols, strategies and opportunities for volunteers in Colac Area Health

Colac Area Health Education Plan developedAged Care Accreditation training provided to fi ve staffRisk Management training provided to four staff

Education provided or accessed:• Middle Management Education Program

• Advanced Life Support (ALS) Training – 18 staff successfully completed. Nine achieving a result of greater than 85%

Offer Proteus Management Course again in 2005Run further ALS courses

Preferred provider identifi ed and program currently being developed

Internal review completed For implementation of recommendations

Community and Colac Area Health based research to identify and promote benefi ts of healthy eating and food preparation i.e. using healthier vegetable based oils.6.8% saturated fat, lowest of all Colac participants in the “Choice Chips Promotion”

Link with Be Active Eat Well Project

Video development Promotion of BAEW video as a health promotion tool including via the Colac Area Health website, the intranet site, Primary Care Partnerships and Regional Women’s Health Program. Ongoing collaboration with Department of Human Services and Deakin University

Leading the Way

9

KEYREPORTING AREA


Representatives of the World Health

Organisation and a delegation of senior

health professionals from Beijing

visiting the ‘Be Active, Eat Well’ project

at Colac Area Health. Further details

on page 30

Be Active Eat Well (BAEW) Project

Information Technology

Post Natal Depression (PND) Video

Clinical Updates for Nurses

Residential Aged Care Resident Classifi cation Scale (RCS)

Actively identify and pursue opportunities

Sustaining the momentum for actively pursuing funding for Primary Care redevelopment

Development of Operating Suite capacity

Awareness raising Broaden opportunities for home based substance withdrawal services

Food Safety Education & Compliance

Aged Care Assessors Course

Respond to consumer and staff feedback Participate in benchmarking exercises in relation to consumer and staff feed back


10



Host to international contingentChinese DelegationWorld Health OrganisationVice Chancellor of Deakin University

Range of school based and community activity programs implemented

Hon. G. Jennings, Minister for

Aged Care looking at plans for

new Aged Care facility with

CEO, Chairman BOD and

representatives from Residents

and Relatives Group.

Operating Suite

Development of the Colac Area Health websiteOngoing development of intranet sitePlanned development of a Human Resource Information system progressing

Maintain and further development of internet website and information access and sharing opportunities for staff, consumers and the community

Video developed, “This is real life”, and formally launched

Promotion of Post Natal Depression video as a health promotion tool including via the website, intranet site, Primary Care Partnerships, Regional Women’s Health Program

Utilise SWARH initiatives in video based clinical education

Expansion of use of intranet for staff education and training

Use of external consultant to review Colac Area Health practicesProject workers appointed to implement recommendations from consultant report.

Ongoing evaluation of RCS leading to one system with a more appropriate and responsive capacity

Barwon Health/Colac Area Health rotation Program for dental services at Colac Area Health

Continue to identify opportunities to extend and further develop services using this model

Building redevelopments at Birregurra, Adult Day Activity Centre, Neighbourhood House

Funding obtained for Aged Care Redevelopment - $14m

Continue development

Continue lobbying for funding

Appointment of a project manager to review, upgrade and promote services

Continue to develop this area with a view to increasing utilisation of available facilities

100% Home Nurses trained to assist clients with home based withdrawal in conjunction with Alcohol and Other Drugs staff


100% Food Services staff trained in food handlingTraining is continuous with annual update for relevant staff

Five staff successfully completed the Aged Care Assessors Course

Implement staff initiated audits to assist in the continuous improvement in Residential Aged Care

Participation in agency wide staff satisfaction survey

Issues raised to be reported and actioned

Staff feed back sought via Risk Management education and training

Continue to seek and respond to feed back and advise from these groups

Leading the Way

11

KEYREPORTING AREA


Visiting Medical Staff communication channels

Conjoint Meetings

Actively pursue and identify opportunities Website development

Immunisation Programs in private industryInfection Control used as a resource for other organisations within the region

Collaboration with the Colac Police in youth issues

Colanda collaboration

Pharmacotherapy provider

Complaints Management

2.To be a sustainable people centred service provider

Adopt an ongoing systematised process of values education

Develop Program in collaboration with Department of Human ServicesIdentify provider to run trainingDevelop communication tools to aid in the facilitation of ongoing values development and education opportunities

Promote Colac Area Health services and facilities

Develop website

Information in Colac Area Health documents and publications


12



Advisory groups – Birregurra Community Health Centre Advisory Group, Residents and Relatives group (Residential Aged Care), Neighbourhood House, Colac Area Health Auxiliary, Sudanese Women’s Group, Culturally and Linguistically Diverse Community NetworkBetter Health Self ManagementGP proceduralistsAmbulatory care

Groups to be self managing once support structures developed and functioning

Laboratory PathCare

Consumer Groups Further establishment and use of Consumer Groups for general and specifi c issues

Colac Area Health/Visiting Medical Staff communication monthly meetingsExecutive and VMO monthly meetingsMedical Consultative meetings with

Board Members – twice yearly

Enhance and maintain local and regional links with Visiting Medical staff

Conjoint meeting with PathCare – bi-annualConjoint meetings with Mayne

Radiology – bi-annual

Enhance and maintain local and regional links

Website developed Continue to develop and expand use of website to assist with staff recruitment, retention and education

Infection Control advice and support provided to other industrial and health related organisations


Existing links strengthened through Programs such as High Challenge Activity Groups


Currently providing Home Nursing, Dietetics, Physiotherapy and Occupational Therapy to Colanda residents on site

Further develop service in collaboration with visiting GP service from Melbourne

Ensure ongoing provision of Pharmacotherapy

Complaints feedback monitored and information trended

Ongoing development of this area with linkage of complaints into Risk Management processes to assist with recommendations and actions resulting from investigation of complaints as required

Promote organisation wide uptake of this education

Website developed and being refi ned for public access

Ongoing development and maintenance of website

Weekly News to all staffNeighbourhood House NewsletterBirregurra NewsHealth Update delivered quarterly to all households in the regionQuality of Care Report, 8,000 copies distributed to households in the regionAnnual ReportColac Area Health “Quality Community Care” A History of the Health Service from 1882 to 2003

Dr. D. Peel autographing History

Book at the launch.

Leading the Way

13

KEYREPORTING AREA


3.To minimise adverse outcomes by understanding and managing our risks

Develop, maintain and review a risk management framework

Develop formal internal audit program in conjunction with SWARH

4.To maintain a viable and representative health servicethrough the use of collaborative alliances

Regularly review and report on existing relationships

Develop, monitor and review collaborative relationships with neighbouring organisations

Develop collaborative alliances with neighbouring organisations

Fire & Safety Audit for Colac Area Health undertaken with other Health Services including Barwon Health, Mortlake, Terang, Hesse, Lorne and Apollo Bay.

Develop the processes for an external consultant to undertake a review of this area

Actively identify opportunities for further collaboration


14



Restructure of previous Clinical Risk into integrated organisational Risk Management profi leIntegrated Risk Management Framework developedIdentifi cation of three staff in the organisation with a Risk Management portfolio responsibilityImplementation of specifi c Risk Management meetings on a regular basis to support the change in profi le within the organisationRisk Management education undertaken by staff, Managers, Executive, Board MembersReview of organisational committees undertaken and restructure implementedIntroduction of Root Cause Analysis as a tool for follow up of incidents and the resultant recommendationsJoint project with Barwon Health in developing a Risk Management Plan for Colac Area Health

Continue to develop and refi ne processes and practices across the organisation

Continue to provide education and support for identifying and managing or mitigating risk where possible

Physiotherapy is one of the

primary care services provided to

external organisations

Video Link Up enables ‘vitual

visiting’ . Doctors, staff and

patients at Colac Area Health

can speak with specialists from

Geelong, Warrnambool or

Hamilton. The vital signs of the

patient can also be monitored,

using this technology.

Implementation of Program July 2004 Ongoing development and implementation of internal audit opportunities

Barwon Health Dental rotationCobden primary care services provisionLorne primary care services provisionColanda primary care services provisionApollo Bay primary care services provision Satellite dialysis with Barwon Health dialysis Respite Care Bed with Barwon HealthRegular Breast Screen bus to Geelong

Maintain and enhance current relationships

Further develop new partnerships

LorneBarwon HealthPrimary Care Forum including all of the major agencies within the Sub Region with a Primary Care focusRegional Women’s Health – with Barwon Health, South West Health, Western District Health Services, Portland District Health, Bellarine Community Health and regional Primary Care PartnershipsRegional Community Palliative Care – with

Portland & District Hospital, Western District Health Services, South West Health Services, Bellarine Peninsula Community Health Services and Barwon Health

Maintain and enhance current relationships

Further develop new partnerships

External consultant identifi edAudit undertaken with recommendations for Colac Area Health and Birregurra Community Health Centre

Implement recommendations

Development of website

Further development of intranet site and capacity for collaboration with SWARH and consumers.

Further enhance Internet site.rther enhance Internet site.Alliance with SWARH to redevelop intranet site.

Leading the Way

15

GovernanceColac Area Health is governed by a nine person Board of Directors, appointed by the Governor in Council following the recommendation of the Minister for Health. Board members are appointed for periods up to three years and serve in a voluntary capacity.

Governance refers to arrangements in place to administer, manage and monitor services provided. In past years the focus of the Board’s governance obligations was in management and fi nancial areas.

Today public health service providers are required to

be more transparent and accountable to the community

in their governance obligations, such as clinical governance and risk management.

Colac Area Health is addressing the governance issues associated with Health Service delivery to:

• Meet community expectations by achieving quality health service delivery• Ensure there are corporate and clinical standards for accountability and leadership within the Service• Address the management and identifi cation of risks and hazards by implementing a comprehensive clinical and non-clinical risk management system• Ensure staff and facilities are assessed, reviewed and credentialed.

Colac Area Health is accountable through the Board of Directors to the Minister for Health Hon. Bronwyn Pike.

Corporate GovernanceCorporate GovernanceBoard of Directors

Mr. Anthony Graham – Chairman

Dip. Tas, Adv. Cert. R.A.C.S, Cert. IV Workplace and Training

Tony has a broad experience in community agencies and services and prior to his appointment on the Board had worked with agencies such as Barwon Independent Living and the Barwon Psychiatric Resources Council. His strong knowledge and commitment to the community is an asset in his role on the Board.

Mr. Chris Sutherland - Senior Vice President

M.B., B.S., F.R.C.S (Edin.) F.R.A.C.SChris is a Surgeon and has been a member of the Board for eleven years serving two terms as Chairman. Chris is involved in the community as a past member of Rotary and had a close association with Lake Colac Rowing Club.

Mr. Wayne O’Brien - Treasurer

B.Com. ACA, CPAWayne is a Chartered Accountant and has been a Partner in a local accounting practice for eleven years. Prior to returning to Colac, Wayne worked with a large accounting fi rm in Melbourne. He is an active squash and tennis player and has a wide involvement in community affairs.

Term of appointment: 01/11/2001 to 31/10/2004



Table Legend: BOD= Board of Directors S&Q = Safety and Quality F&F = Finance and Facilities SR= Services Review FA&R = Finance Audit and Risk

Meetings BOD SR S&Q F&F FA&R

No. HeldAttended 7 1 2 1 N/A

No. Held 11 5 4 1 N/A

Note: Leave of Absence for four month

period


No. HeldAttended 10 4 2 N/A N/A

No. Held 11 5 4 N/A N/A


No. HeldAttended 11 N/A N/A 7 3

No. Held 11 N/A N/A 7 4

16


Mr. Richard Riordan - Junior Vice President B.Bus. (Management)

A retail businessman, Richard completed a degree in Business Management in Melbourne. He returned to take up the family hardware business and is actively involved in the business community of Colac as past President of the Colac Business and Retailers Association. Richard also founded the volunteer organisation Friends of Lake Colac.

Mr. Grant Johnstone

Grant is a prominent community member and has managedRadio Station 3CS/MixxFM for three years. He is a Rotarian and serves on numerous committees including Blue Ribbon Foundation, Colac Development Committee and Big House Community Project.

Ms. Dianne LoubeyDip. Applied Science

(Dental Therapy)Dianne is the Practice Managerof a Medical Clinic, a position she has held for seven years. She is actively involved in the school community and participates in sporting activities, especially netball as an A-Grade umpire.



Term of appointment:01/11/2002 to 31/10/2005



No. HeldAttended 11 N/A N/A 6 3

No. Held 11 N/A N/A 7 4


No. HeldAttended 10 3 2 2 1

No. Held 11 5 4 2 1


No. HeldAttended 11 3 3 N/A N/A

No. Held 11 5 4 N/A N/A

The Board has delegated the operational activities of Colac Area Health to the Chief Executive Offi cer, the Executive Management Team and staff in accordance with the Instrument of Delegation and the Health Services Act (HSA) 1988 (Division 4 Section 33).

The Functions of the Board are governed by the HSA 1988. These are:

• To ensure compliance with legislative requirements governing Health Services and promote a safe, effective, appropriate and consumer orientated service within this legislative framework

• To annually review the past twelve months activities and set future direction

• To refl ect the needs of the community and to

communicate policy and strategic direction by consultations, publications and promoting the profi le of the Service

• To ensure that the Service provides a range of appropriate services, promotes excellence and supports educated, competent staff

• Promote good working relationships with Government Departments.

Colac Area Health has continued to be a leader indeveloping an integrated Health Service delivery model.

Underpinning the philosophy of this model is providingaccess to a range of appropriate services for ruralcommunities.

Leading the Way

17

Mr. Peter MercerDip. Ag (Hons), Dip Tech Teach, T.Tric

Peter is a primary producer and served a term as Mayor of Colac Otway Shire in 2002. He has a wide interest in

community, cultural and sporting organisations both locally and nationally. .



No. HeldAttended 4 N/A N/A 4 N/A

No. Held 4 N/A N/A 4 N/A

Mrs. Rosemary RichardsonR.N., R.M. Dip. Nse Ed, Bsc App Sci,

Dip Comm HealthRosemary is a Maternal Child Health Nurse and has been

involved in health care planning and delivery for acute, extended and primary care for many years. She has served with groups including Colac Family Violence Network and Barwon South Western Region – Primary Care Reference Group and is an active participant in the Maternity Services

Enhancement Strategy.



No. HeldAttended 2 1 N/A N/A N/A

No. Held 4 4 N/A N/A N/A

Mr. Anthony Baldwin

Tony is a self-employed businessman and dairy farmer. He has an interest in Quality Assurance procedures, Financial Management and Strategic Planning. Tony is actively involved in the community as a member of the Rotary Club of Colac West, and Elliminyt Primary School and Trinity College Parent Committees.

Mr. Warren McKean

Warren is a self-employed Director of a motor vehicle dealership based in Colac and Camperdown. He is actively involved in the community having served a term on the Colac Development Committee and currently holds the position of President of Otway Business Inc. in Colac.

Mrs. Diane Wright

(Resigned May 2004)Diane is a Palliative Care Counsellor and a Licensed Civil Marriage and Funeral Celebrant. She has had experience working in the disability fi eld including the establishment of a respite care program “Interchange” for families with special needs children in the Colac area. Diane is a Board Member of Geelong Hospice Care Association.

Term of appointment 01/11/2003 to 31/10/2006


Term of appointment:02/12/2003 to 28/05/2004



No. HeldAttended 5 N/A 2 N/A 1

No. Held 7 N/A 4 N/A 1


No. HeldAttended 6 N/A 2 N/A 2

No. Held 6 N/A 4 N/A 4


No. HeldAttended 2 N/A - N/A N/A

No. Held 5 N/A 3 N/A N/A

Retiring Board of Directors

Corporate GovernanceCorporate Governance

18


The theme for the 2004 Annual Report is “Leading the Way”

The Integrated Health Service delivery model that

has been developed by Colac Area Health is used as a

benchmark and template for other similar size rural

health facilities.

This year the persistence of the Board and staff in working with the Regional Department of Human Services Capital Management Branch and to promote the staged redevelopment of Colac Area Health has resulted in $14million to construct a 75 bed Aged Care facility on the site of the old hospital building.

The Project Control Group has recommenced activities and again the collaboration with the Department of Human Services Capital Management Branch and staff, will result in the management and monitoring of the Aged Care redevelopment.

The total of funds put into the redevelopment at Colac by the government over a fi ve year period is $28 million.

The Board has already commenced planning for Stage 2B redevelopment, which is for Primary Care services.

Strategic planning undertaken by the Board in February of each year has provided a framework for the Board to plan, monitor and evaluate their activities. This year, the Board invited Board Chairmans and Chief Executive Offi cers from neighbouring Health Facilities to the Strategic Planning weekend. The contact promoted the development of exploring closer working relationships and functional alignments. It is hoped that we will further explore these opportunities in the coming year.

The Committee restructuring using the Risk Management model has seen traditional committees dissolved and two sub-committees of the Board formed – Safety and Quality and Finance, Audit and Risk. The early results of these Committees are proving that the initial plan has been worthwhile.

A unique highlight of the year, was the launch of ‘Quality Community Care - Colac District Hospital 1882 to Colac Area Health 2003’; a publication commissioned by the Board to document the history of health care by the service, to residents

of Colac and district in the past 120 years.

The task of preparing the history was capably handled by Dr. Dawn Peel and we acknowledge her work and input into a valued history resource for the Service.

This year also saw the retirement of Dr. Peter Higgs, one of the visiting medical staff. Dr. Higgs provided services to the Colac and district community for more than 35 years as a general practitioner. The Board of Directors held a farewell evening for Dr. Higgs which was attended by the Executive Management Team and senior nursing and administration staff.

I would like to thank my fellow Board members for their commitment during the year. The role of the Board member has changed from merely a volunteer role to one which requires focusing on current health service delivery issues and ensuring that our community has the optimum service.

I commend all the staff, the Executive Management Team, medical staff and volunteers for their commitment to ensuring that Colac Area Health delivers optimum care and continues to lead the way………..

Anthony GrahamChairman Board of Directors

Chairman’s ReportChairman’s Report

Leading the Way

19

Chief Executive’s ReportChief Executive’s Report

20


Leading the Way has been identifi ed as the theme for the 2003/04 Annual Report.

Colac Area Health is seen as “leading the way” in providing an Integrated Health Service delivery model. This reputation has fl owed over the border into New South Wales.

At an Ambulatory Care Workshop in Sydney in February, 2004, New South Wales health professionals were anxious to hear more about the model as they had heard about us and the achievements in health circles.

The focus for service delivery at Colac Area Health is

the patient, client, resident. The staff, visiting medical

staff and consultants deliver the care that resulted

in an overall 98% patient satisfaction level with our

organisation.

Staged Redevelopment of Colac Area HealthIt is with great satisfaction that, over the past fi ve years, there has been a staged Redevelopment that will result in the total redevelopment of Colac Area Health.

In the May State Budget, Colac Area Health was allocated $14 million. This was the result of the Board working closely with Regional Department of Human Services, meeting with the Minister and continuously bringing the focus of the need to progress through the Redevelopment Plan with Stage 2A Aged Care.

This was to construct a 75 bed Aged Care facility, demolition of the “old” hospital, prepare the site and relocate 27 staff still in the building into accommodation and provide infrastructure for that move.

The Aged Care Redevelopment will proceed through an orderly process, of Project Control. Silver Thomas Hanley, the architects and Atkinson Project Managers work closely with Board, staff, user groups and associated consultants to plan the project through the Project Control Group.

Design development is progressing and it is anticipated that this will be complete by late November, 2004 and with tenders being called for in December, 2004.

This process will allow for construction to commence in late February, 2005.

Staff have been encouraged to go out and see other Aged Care facilities throughout the State, to bring back new and refreshing ideas on Aged Care design.

One of the challenges that we face is addressing the mandatory 2% of construction costs to Environmentally Sustainable Design.

A total of $28 million has been allocated over fi ve years to Colac Area Health by the Bracks Government. Smaller Capital Works Program for Adult Day Activity Centre, Neighbourhood House and Birregurra Community Health Centre are planned for 2004/05.

Colac Area Health is fortunate in working with the Neighbourhood Renewal Program to strengthen services to the community.

Quality Community Care – Risk ManagementOne of the challenges that Colac Area Health have faced in the past twelve months has been to review the organisation from a Risk Management perspective.

Colac Area Health and Barwon Health were funded

to pilot an innovative model of Risk Management.

To achieve this, we have completely revised the committee and reporting structure throughout the organisation.

Three senior staff – Human Resource Manager, Nursing Business Manager and Special Projects Manager took on the portfolios of Risk Manager in their areas of Corporate, Nursing and Primary Care.

Board subcommittees were dissolved and two new committees developed:

- Finance, Audit and Risk Management- Safety and Quality.

The revision of the By-laws and the Standing Orders of the Board of Directors refl ected these changes. The staff are to be commended for taking on this major revision of how we operate on a daily basis.

Early indications are that the restructure has brought a higher level of transparency and accountability to identifying areas of service delivery, that are less effective.

Leading the Way

21

New ServicesThe outstanding success of the Dental Services is an example of collaboration to obtain much needed services.

While public Dental Clinics have closed in rural health facilities, Colac Area Health has two chairs operating due to a collaborative project with Barwon Health. Graduate dentists rotate from Geelong to provide a fi ve day two chair service. The working list for access to the public dental service has been addressed and reduced.

Barwon Health and Colac Area Health have commenced discussions regarding surgical services. The project aims to take Colac and district patients off the extensive waiting list at Barwon Health and increase the throughput in the new theatres at Colac. This has required the co-operation of local visiting medical staff through the provision of anaesthetic services, the local surgeon taking up extra lists and the visiting consultants increasing their Colac lists.

Community SupportFollowing the opening of the Acute Medical Services building the organisation made a decision to step back from active fundraising to allow other projects in the town to proceed. However the Blue Ribbon Foundation Rodeo in January went ahead, without impacting on other fundraising events.

The local police led by Senior Sargeant Don Scott and the Blue Ribbon Foundation Committee once again devoted hours of their time to ensure this was a successful event.

The Big House ProjectThis has been an outstanding example of support from the community. Many tradesmen and suppliers have combined to complete the stylish home. A Big House Committee chaired by the Mayor has monitored the construction and fi t out. Byron Cashion has been the Project Manager for the two years of the Project.

The Rotary Club of Colac West did the landscaping to have the house opened for inspection in April, 2004.

It is anticipated that in the spring time the house will attract a buyer with funds from the sale being used to purchase capital equipment to enhance

the operating capabilities of Colac Area Health.

Strategic PlanningThe Board met again in February for a weekend of Strategic Planning.

Dr. Lee Grunner was appointed as the facilitator and worked through major challenges facing the Board and ways in which they can be addressed.

The Key Reporting Areas (KRA’s) were:

1. To support and enhance the wellbeing of consumers by a culture that is sensitive and responsive to their needs.

2. To be a sustainable people centred serviceprovider.

3. To minimise adverse outcomes by understanding and managing our risks.

4. To maintain a viable and representative healthservice through the use of collaborative alliances.

The Board will use these KRA’s to monitor the progress of the organisation during 2004 and review the achievements at the 2005 Strategic Planning. Further details of these KRA’s can be found on pages 8 to 15.

Information TechnologyColac Area Health membership of South West Alliance of Rural Health (SWARH) has seen the organisation become part of an Alliance that is having a major impact on the delivery of information technology in health facilities in Victoria and nationally.

In the 2004/05 year a range of information technology innovations will be introduced into the organisation. With the demolition of the old hospital building, the entire organisation changed over to Internet Protocol Telephony (IP Telephony); a system that provides greater fl exibility and a decrease in ongoing call charge costs.

The capacity to have “virtual visiting” to other facilities is now possible. Families in Colac can now “visit” children in the Children’s Hospital and neonates at the Royal Women’s , in Melbourne some 150km away. Residents in Aged Care

Chief Executive’s ReportChief Executive’s Report

22


facilities can “visit” other residents in other facilities within the SWARH Network.

There is an increasing tendency for staff to video conference meetings and education and this reduces travel time and road safety issues.

The challenge of relocating services to the Acute Medical Services building in 2003 will now be superseded by the challenge of preparing for the construction of the new Aged Care facility and its ultimate transfer from the current facilities, Polwarth House and Otway Pioneers, in 2005.

Seeking Strengthening AlliancesA range of discussions have been held between representatives of Lorne Community Hospital and Cobden and District Healthcare Service to explore ways in which these two organisations can work with Colac Area Health to strengthen their service scope. Synergies in relation to operational activities have been identifi ed and the next fi nancial year will see Colac Area Health working more closely with these two agencies to provide services such as supply, payroll, personal support service, executive support, human resource services and primary care services.

The FutureAt the same time that the Board of Directors are supporting the Aged Care Redevelopment, energy is being put into preliminary planning for Stage 2B – Redevelopment of the Primary Care Division. The Board ensure that this last stage of the Redevelopment is promoted and that Department of Human Services are kept aware of the need to progress this stage and its vital role in development of the Integrated Service Delivery Model.

Development of stronger community focus groups will be a challenge to the Board. The Residents and Relatives group will be active in ensuring that the Aged Care facility meets the needs of current and future residents.

Birregurra Advisory Groups continually evaluate the services being delivered from the Birregurra Community Health Centre. The Board appreciates and values the input from these groups.

The Integrated Health Service Delivery Model will continue to challenge Colac Area Health to lead the way and provide a proven template for like health services.

With the support and expertise offered by the staff, the visiting medical staff and the community, the Board of Directors can confi dently ensure that the community of Colac will have an appropriate Health Service that refl ects the needs of the community.

Janet RossChief Executive Offi cer

Acute and Aged CareAcute and Aged Care

Leading the Way

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Profi leThe Nursing Division at Colac Area Health incorporates a wide range of specialist and generalist services including the Operating Suite, Day Surgery Unit, Renal Dialysis Unit, Central Sterilising Supply Department, Day Chemotherapy Unit, Acute Inpatient Unit, Midwifery Unit, Residential Aged Care and Emergency Department.

From within the Division, Clinical Nurse Educators, Infection Control Nurses, Pre-admission & Discharge Planning Nurses, Education Services Manager, Business Manager, Assistant Directors of Nursing (ADON) and the Director of Nursing (DON) support these areas.

The Nursing Division consists of approximately 250 staff with an estimated Equivalent Full Time (EFT) of 145. The range of classifi cations include Division 1 and 2 Registered Nurses (RN), Trainee Division 2 RN’s, Ward Clerks, Personal Assistant, Theatre Technicians, Instrument Technician, Diversional Therapists & Recreational Worker. Throughout the year the Division hosts up to eighty year 1, 2 and 3 Student Nurses from different Universities usually within Victoria. In 2003, there were sixteen Year 10 work experience students.

There are currently eight Trainee RN Division 2 staff, four Graduate Division 1 staff and three Trainee Midwifery staff.

AchievementsAs a feature of the move to an Integrated Risk Management framework for the organisation all existing committees and working groups have been reviewed. The outcome has been the dissolution of a number of committees and working groups that may have been past their effective stages. In their place fewer committees now exist, but all with a wider function and stronger accountability lines in place.

In November 2003, Colac Area Health was successful

in achieving ‘Baby Friendly’ Accreditation for the

optimum period of three years. This could not have

been managed without the signifi cant input of the

Acute Unit staff especially the Midwifery staff.

The numbers of women choosing Colac Area Health as the facility for their obstetric care has seen an increase since we moved into the new

Acute facility. Not only do we have signifi cantly improved and modern facilities, the Midwifery staff have continued to work hard and diligently to provide care that is high quality to the women, their newborns and family members.

There has been a great deal of work undertaken to identify and improve the workfl ow patterns within the new building. Changes to practices have been made to improve the timeliness of admission into the Acute Unit and Day Surgery Unit (DSU) so as to allow adequate time for preparation of patients and a smooth transition from DSU or the Acute Unit to the Theatre and back again. These changes mean that we now have the capacity to run both Theatres concurrently. This is supported by the modifi cation of Central Sterilising Supply Department (CSSD) practices, which have signifi cantly decreased the down time between Theatre cases. The hard work and continuing ability of the staff in the Acute Unit, Day Surgery Unit, Theatres, CSSD, the Pre-admission & Discharge Planning Nurses and Business Manager to adapt, lead and make these changes has been remarkable and allowed us to continue to improve our services.

Another measure of this success over the past year is the introduction of Ophthalmic Surgery; increases in the numbers of joint replacements, urology procedures, the scope of general surgery and the number of general surgery procedures undertaken. This has meant that we have had a signifi cantly increased use of the Day Surgery Unit.

In Residential Aged Care work has been undertaken on our documentation known as the Resident Classifi cation Scale (RCS). We have had fi ve staff successfully complete the Aged Care Standards and Accreditation Agency training course. Two of our Recreational Workers have successfully completed their Diversional Therapy course and the overall number of recreational hours has been increased. This dedicated group of staff continue to work hard alongside the nursing and support staff in planning and providing stimulating and enjoyable activities for our Aged Care residents.

The Emergency Department has also undergone process and practice changes to adapt to the new facility. A feature of this area is the targeted training of a number of staff to develop their skills in emergency nursing and assessment. The Advanced Life Support Training that eighteen staff

Acute and Aged CareAcute and Aged Care

24


successfully completed earlier this year has in part supported this.

The Dialysis Unit has continued to provide a high level of quality service and throughout the year participated in a statewide review of Dialysis Units. The outcome of this review is yet to be provided, but it was noted by the reviewers that the staff working in this area had developed and maintained a well-run and highly functional service.

The Clinical Nurse Educators have developed a number of areas relating to competencies and staff support in skills development. This work is vital to our ongoing capacity to provide the care that the community of Colac and surrounds deserves.

The team of Assistant Directors of Nursing (ADON’s) reliably provide leadership, support and guidance to the entire organisation while between them they provide 24 hour 7 days a week coverage to Colac Area Health.

Colac Area Health participated in the review of Continuing Nurse Education (CNE) Fund allocation and expenditure for the Barwon South Western Region. The outcome has been that Colac Area Health is one of four ‘Hub’ agencies within the Barwon South Western Region responsible for co-ordinating and planning the CNE training in the sub-region. Our partner organisations are Otway Health and Community Services, Lorne Community Hospital, Hesse Rural Health Services and Bellarine Community Health Services.

Future DirectionsIn Residential Aged Care we continue to work towards the day when the two existing facilities will be incorporated into one new facility. This involves much planning and preparation and the involvement and support of all staff and those with links into our Residential Aged Care. To date all of the staff have had the opportunity to participate in information sessions and the user groups who have a consultative role on the design and fi t out of our new building. This work will continue throughout this year and will require the ongoing support of the staff, the residents and relatives.

Continuing refi nement of the Maternity Services Model will be a feature of the next few years at Colac Area Health. The importance of maintaining

services in our local area and ensuring we have an adequate number of trained and competent staff will provide us with ongoing challenges.

Over the past year much effort and resource has been devoted to enhancing the communication channels with the visiting medical staff, the nursing division and Colac Area Health in general. That work will continue.

In general the nursing division will continue to develop its approach to identifying and managing risk across all of our areas. This will dovetail in with the integrated approach to risk management that Colac Area Health has developed.

Ann HagueDirector of Nursing

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25

Education ServicesEducation ServicesThe focus of education services at Colac Area Health is centred around an emphasis in meeting identifi ed patient needs. Through supplying education and training services to improve staff knowledge and skills, these needs are met.

Service Wide Education and Training• Aged Care Accreditation Surveyors Course,

The Australasian Certifi cation and Auditing Course - Five staff undertook this training.

• Occupational Health and Safety Training- Five day course attended by eighteen

people from Colac Area Health, Colac businesses and community agencies.

- Two day managers course - Fourteen attendees the majority being Colac Area Health service managers.

• Bullying and Harassment education sessions were delivered to all staff.

• Discharge Planning education was delivered for clinical staff, nursing and allied health team leaders.

• Counselling skills training sessions were delivered monthly.

Continuing Nursing Education GrantColac Area Health again achieved a signifi cant grant to enable support for ongoing nursing education and skill development. It also provided the resources for a review of nursing staff from Colac Area Health and from other organisations in the sub-region.

Some of the programs supported by this grant in 2003/2004 include:• Advanced Life Support Training - Eighteen

staff completed a three day program.• Wound Management Training - Thirty staff

attended two workshops.• Paediatric Study Day - Eleven staff attended

this program.• Automatic Defi brillator Training - Majority of

Colac Area Health Registered Nurses Division 1 attended a session of this ongoing program.

• Palliative Care Education.• Diabetes Post-graduate Module, Certifi cate IV

Health (Nursing) - Twenty people from across the Barwon South–Western Region attended this program.

• Foot Care Program.• Cardiac Care Review Workshop.

Future programs funded under the Continuing Nurses Education Grant will be based on a sub-regional approach across Barwon South-Western region.

Midwifery Scholarship ProgramColac Area Health aims to ensure an appropriate level of midwives to meet the birthing requirements of Colac district mothers. To highlight this, Colac Area Health has established a

Midwifery Scholarship Program. We now have a total

of four Registered Nurses’ Division 1 participating.

These are supported fi nancially with payment of their fees and are employed throughout their training at Colac Area Health. They attend the Post-graduate Program in Midwifery at Ballarat University.

Graduate Nurse ProgramThe Nursing Expo held in June 2004 gives Colac Area Health the opportunity to target potential graduate nurses and promote Colac and our own Open Day. Colac Area Health was successful in attracting eight nursing students in 2003 and six nursing students in 2004. We also had fi ve graduate nurses for 2003 and four graduate nurses in 2004.

A new process has been developed this year with the introduction of monthly meetings, to help and support all our graduates.

Student PlacementsColac Area Health supports the development of rural health professionals through supporting student placements. We support undergraduate placements in medicine, placing twelve fi rst year medical students from Monash University. We place allied health students in physiotherapy, speech pathology, occupational therapy, nutrition, social work and welfare. We place Nursing students from Deakin University - Warrnambool and Geelong, Ballarat University, La Trobe University, Monash University, Victoria University and the Australian Catholic University, TAFE programs in the areas of Certifi cate IV Health (Nursing) SW TAFE and Ballarat University.

We continue to place year ten secondary students in our work experience program in the areas of administration, allied health, engineering, general services and nursing.

26


Compulsory Education and TrainingCompulsory education and training for staff across the Service includes:• Cardiopulmonary Resuscitation (CPR) with 94.5% attendance rate in 2003.• Fire response training 97% attendance.• Evacuation drills were conducted in Otway Pioneers and Polwarth House Aged Care facilities, Acute Unit, Emergency Department, Operating Suite and Primary Care building.• Security training - a new area of training which is now incorporated in fi re response training session• Infection Control/Safe Food Handling Training with annual review.

Research Project - Intercampus Learning ProjectParticipation in Deakin University – South West Alliance of Rural Health (SWARH) joint research project for education delivered via video conferencing.

We had a number of inservice lectures delivered onsite via video-conferencing and one session being delivered from Colac, across the south west region.

Research shows positive outcomes for short sessions with a clinical focus.

Information ServicesThere is an ongoing process to educate staff about the Colac Area Health’s Virtual Library and Information Service. This service enables the sourcing of clinical and other information necessary for staff to undertake their provision of services or to support their further studies. This service includes access to Clinician’s Health Channel with CINAHL, Medline and Pub Med amongst other databases. Online table of contents pages is a regional health service which provides table of contents pages from current journals. These pages are available for perusal and selected articles are ordered for staff members for work or study. Work or study related books are accessed for staff members from larger library service. Access is available to Education and Training Program Calendars, Flyers, Videos, and other items of interest on the Colac Area Health intranet.

Development of Training RequirementsThe education programs are developed for staff, service managers and divisional directors to meet the needs of clients, patients and residents of Colac Area Health.

Staff education requirements are recorded inprofessional development reviews undertaken annually.

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27

Medical ServicesMedical ServicesConsultant Director of Medical Services ReportDuring the 2003/2004 fi nancial year there has been a continued progression into the future in conjunction with the new facilities development. The facilities offered by the new Acute Medical Services building, notably the two operating rooms and day surgery unit, has led to a move to expand our local elective surgical capability, inclusive of new Ophthalmology Service. This allows for minor Ophthalmology conditions, such as cataract procedures, to be treated within the community.

The year has also seen a strengthening of the alliance

between Colac Area Health and Barwon Health

especially in relation to the expansion of our elective

surgical capability.

Over the year the visiting medical staff have been active in this transition, and are eagerly assisting with the preparation for the 75 bed Aged Care facility; funding for which ($14 million) was obtained in the May 2004 budget.

Colac Area Health has taken an active role in credentialing G.P. Registrar Trainees for hospital visiting rights, as part of their professional development, in conjunction with the Corangamite Clinic and Otway Medical Clinic.

The assistance of the Chairman of the visiting medical staff, Dr. Peter Nice, and the other visiting medical staff members who have contributed to the many Committees that contribute to the successful operation of Colac Area Health, is most appreciated.

Visiting Medical Staff GroupOffi ce Bearers:Chairman - Dr. P. NiceVice Chairman - Dr. T. LoweDiscipline Representatives:Anaesthetics - Dr. I. MackaySurgery - Mr. C. SutherlandObstetrics - Dr. G. GrayColac Area Health Committee Representatives:Infection Control - Mr. C. SutherlandSWARH - Dr. J. MaddenClinical Risk Management - Dr. T. LoweMedical Imaging Conjoint - Dr. J. MaddenPharmacy Advisory - Dr. P. Oosthuizen (to April 2004)Medical Consultative - Visiting Medical StaffCommunication Working Party - Mr. C. Sutherland, Dr. R. Griffi ths, Dr. D. Buckley, Dr. T. LoweSafety and Quality - Dr. P. NiceMedication Review Working Party - Dr. P. Oosthuizen (to April 2004)Pathology Services Conjoint - Dr. I. MackayMedical Appointments Advisory Clinical Credentials - Dr. P. Nice

Dr Rodney FawcettFAFPM AFCHSE MSc(OccMed) MBBS BMedSc DipAvMedVisiting Consultant Director of Medical Services to Colac Area Health

Visiting Medical StaffDr. A.F. Appelbe, M.B., B.S., F.R.A.C.P. (Appointed July 2003)Dr. D. Borsos, M.B., B.S.Dr. D.M. Buckley, M.B., B.S., D.A., D.R.C.O.G.Mr. K. Chao, M.B., B.S., Dip. R.A.C.O.G., F.R.A.C.S. (Appointed September 2003)Dr. M.T. Connor, M.B., B.S., F.R.A.C.G.P., Dip. R.A.C.O.G., A.C.C.A.M.Dr. C.P. Cooper, M.B., B.S., F.R.A.C.P.Dr. P.W. Davey, M.B., B,S., B.Sc., Dip. R.A.C.O.G., M.R.A.C.O.G., F.R.A.C.O.G.Dr. R. Fawcett, M.Sc., M.B., B.S., Dip. Av. Med., B. Med. Sc., F.A.S.P.H.M., A.F.S.H.S.E., M.R.A.C.M.A.Dr. G.L. Gray, M.B., Ch.B., D.R.C.O.G.Dr. K.R. Griffi ths, M.B., B.S., D.A., D.R.C.O.G., D.C.H.Dr. S. Haynes, B.S., F.R.A.C.G.P., F.A.Ch.P.M. Dr. P.H. Hewson, M.D., F.R.A.C.P., M.B., B.S.Dr. P. Higgs, M.B., B.S. Dr. D.M. Jones, M.B., B.S., D.A., D.R.C.O.G.Dr. T.W. Jones, M.B., B.S., U.C.H.M.S.Dr. S. Kiryshin, M.B., B.S.Mr. A.C. Lawler, M.B., B.S., F.R.C.S. (Edin), F.R.A.C.S. (Appointed May 2004)Dr. T.J. Lowe, M.B., B.S., D.R.A.N.Z.C.O.G.C., F.A.C.R.A.M., B.A.Mr. P.C. Lugg, M.B., B.S., F.R.A.C.S.Dr. I. Mackay, M.B., B.S., D.A., Dip. R.A.C.O.G., F.R.A.C.G.P.Dr. P.J. Madden, M.B., B.S., D.A., D.R.C.O.G.Dr. A. Mander, M.B., B.S., F.R.A.C.P.Mr. T.W. Mason, M.B., B.S., F.R.C.O.G., F.R.A.C.O.G.Dr. S.J. Menzies, M.B., B.S., M.Med, D.R.C.O.G., F.R.A.C.G.P.Dr. L.G. Munro, M.B., B.S., M.A.C.P. Pt 1 (Appointed May 2004)Mr. D.L. Murphy, M.B., B.S., F.R.A.C.S. (Urology)Dr. R. McLennan, M.B., B.S., F.R.C.P., F.R.A.C.P.Mr. D.K. McRae, M.B., B.S., F.R.A.C.S. (Retired August 2003)Dr. P.J. Nice, M.B., B.S., D.A., D.R.C.O.G.Dr. P. Oosthuizen, M.B., Ch.B., L.M.C.C., C.C.F.D. (To April 2004)Dr. E.W. Ryan, M.B., B.S., F.R.A.C.P. (Appointed July 2003)Dr. R.R. Sarkis, M.B., B.S. (Melb)Mr. J.W. Skelley, M.B., Ch B., F.R.A.C.S., F.A. Orth. A.Mr. C.S. Sutherland, M.B., B.S., F.R.C.S. (Edin), F.R.A.C.S.Mr. R.H. White, M.B., B.S., F.R.A.C.S. (Appointed March 2004)

Mayne Diagnostic ImagingVisiting Radiologists:Dr. C.M. Blecher, M.B., B.S., F.R.A.N.Z.C.R., D.D.UDr. J.N. Chamberlain, M.B., B.S., M.R.A.C.R., F.R.A.N.Z.C.R., D.R.A.C.O.G.Dr. A.D. Felber, M.B., B.S., D.D.R., F.R.A.N.Z.C.R.Dr. P.E. James, M.B., B.S., M.Med, F.R.A.N.Z.C.R.Dr. W.J. Rogers, M.B., B.S., F.R.A.C.G.P., F.R.A.N.Z.C.RDr. C.S. Woodward, M.B., B.S., F.R.A.C.R.

PathCare Consulting PathologistsVisiting Pathologists:Dr. H.J.M. Armstrong, M.B., B.S., F.R.C.P.A.Dr. G.P. Davey, M.B., B.S., F.R.C.P.A.Dr. D.C. Gee, M.B., B.S., F.R.C.P.A., M.I.A.C.Dr. S. Graves, BSci(Hons), M.B., B.S., PHD Dip. Ed., F.A.S.M., F.A.C.T.M., F.R.C.P.A. Dr. O.C. Harris, M.B., B.S., F.R.C.P.A.Dr. A.M. Jones, M.B., B.S., F.R.C.P.A.Dr. M.E. Robson, M.B., B.S., F.R.C.P.A.Dr. R.L. Spokes, M.B., B.S., F.R.C.P.A.Dr. G.W. Swinton, M.B., B.S., F.R.C.P.A.Dr. D.R. Trethewie, M.B., B.S., F.R.C.P.A.

Visiting Dental StaffDr. P. Hou, B.D.Sc.Dr. V. Lissett, B.D.Sc. (Appointed March 2004)Dr. J. McEwan, B.D.Sc. (Appointed July 2003)Dr. M. Trotter, B.D.Sc.Dr. N.J. Trotter, B.D.Sc.Dr. A.H. Wigell, B.D.Sc.

R.A.C.G.P. Registrar ProgrammeDr. P. Chieng, M.B., B.S. – (February 2003 – July 2004)Dr. A. Isaac, M.B., Ch.B – (February 2004 – February 2005)Dr. D.P. Lam, M.B., B.S. – (February 2004 – February 2005)Dr. A. Michael, M.B., Ch.B – (February 2004 – February 2005)Dr. N.L. Milward, M.B., B.S. – (February 2003 – February 2005)Dr. D.J. Nguyen, M.B., B.S. – (February 2002 – February 2004)Dr. E.J. Shaw, M.B., B.S. - (February 2003 – August 2003)

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Primary CarePrimary Care

Leading the Way

29

Profi leThe Primary Care Division of Colac Area Healthoperates largely from the hospital campus. However, there are several other service locations, namely Birregurra Health Centre; Colac Neighbourhood House; the Adult Day Activity Centre; 34 Connor Street and the Dental Clinic.The services of Primary Care are built upon the skills of 100 staff members who deliver a wide range of services pivotal to Colac Area Health’s integrated service model.

Primary Care features four major operational areas that provide comprehensive health and community services to Colac and District. They are Home Nursing, Allied Health and Support, Community Program and Family Development Services. These areas are underpinned by a strong focus on health promotion, quality care and service integration.

Colac Area Health is proud of this extensive range of quality services available to the community. Our current service profi le provides an excellent platform towards further service development, integration and improvement by way of the following: -

Services provided within Primary CareHome Nursing:• Hospital in the Home• Diabetes Education• Palliative Care• Post Acute Care• Continence Service• Lymphoedema Clinic• Colanda Nursing Service

Allied Health:• Physiotherapy• Occupational Therapy• Social Work• Rehabilitation Clinic• Speech Pathology• Dietetics• Podiatry• Dental Clinic• Adult Day Activity Service

Community Programs:• Alcohol and Other Drugs• Psychology• Gambler’s Help• Community Health• Birregurra Health Centre• Women’s Health

Primary CarePrimary Care• Supported Accommodation Assistance

Programme (Regional Networker)• Family Violence Prevention and Support

(Regional Networker)• Children’s Resource Programme (Regional

Networker)• Youth Development• Neighbourhood House

Family Development Services:• Family Support• Women’s Counsellor• Housing Worker• Youth and Children’s Worker• Financial Counselling

Visiting Services:• There are Visiting Services such as Family

Planning, Drink Driver Education, Barwon Youth Accommodation Service, Legal Aid and Geelong Centre Against Sexual Assault, which complement the work of the Division.

The programs listed deliver numerous services to inpatients, residents and the community. Quality service provision and program development refl ects the benefi ts of an integrated health service, allowing opportunities for enhanced health promotion and personal wellbeing.

AchievementsThere have been many achievements this year in the Primary Care Division. Some of the key achievements and developments include:

‘Be Active –Eat Well’ (BAEW) -A Community Building ApproachThis is the third year of Be Active –Eat Well. The project is targeted towards children aged from two to twelve years. The unhealthy combination of packaged snacks, ‘junk’ food, TV and computer games coupled with insuffi cient exercise is taking its toll on our children. This issue and the associated health risks for children have become very topical at the national level recently, featuring strongly on the health agendas of the major political parties.

The BAEW project has attracted a great deal

of interest, nationally and internationally, and

has placed Colac at the ‘cutting edge’ with its

groundbreaking work on this critical issue. In the past year representatives of the World Health Organisation and a delegation of senior health

30


professionals from Beijing have visited the project. A range of community capacity building and education strategies have paved the way for the delivery of numerous interventions designed to have a positive impact. For example:

• The fi nal school term of 2003 saw the implementation of the After School Activities program where approximately 180 children participated in fi ve different sporting activities over 8 weeks. The program continued with 170 children in the fi rst term of 2004, and has just commenced with 100 children for term three, 2004. The program involves partnerships between BAEW, Leisure Networks, local sporting clubs, and primary schools.

• The Happy Healthy Families programme, a follow up to the Family Weight Management program was piloted early 2004. The program, which engages parents via education about healthy eating, physical activity and parenting skills, resulted in increased knowledge and skills, and positive behaviour changes. Two programs are currently running, with a third planned before the end of the year. Happy Healthy Families involves partnerships with BAEW, dietitians and other allied health workers from Colac Area Health, and the Neighbourhood Renewal Program.

• ‘Choice Chips’ is a program that encourages

local hot chip retailers to use healthy cooking

practices and produce lower fat chips. The

program will be launched in July 2004 with seven

local retailers on board. Along with training and support for the retailers, the program uses a rating system (Gold, Silver and Bronze medal ratings) to promote the program and better inform the community about healthier choices. ‘Choice Chips’ involves a relationship between BAEW, Colac Area Health dietitians, local retailers, and the Colac Otway Shire.

In conjunction with our partners, Department of Human Services, Colac Otway Shire, and Deakin University, we are currently planning for the future sustainability and statewide promotion of this exciting initiative. This project will aid and compliment Colac Area Health’s ongoing work in, and commitment to, community health promotion. Professor Boyd Swinburn and Dr. Colin Bell from Deakin University will evaluate the project.

Birregurra Community Health CentreThe Health Centre at Birregurra is an outstanding

example of the benefi ts of meaningful community

collaboration. Colac Area Health recognises the

importance of the participation and engagement

of local people as key to the successful delivery of

community based health services.

The centre is a major community asset and forms a vital and vibrant part of the Primary Care Division and Colac Area Health operations. A feature of the Community Health Centre is its delivery of quality services and numerous programs, steered by a dedicated and active local committee.

The work of the committee and local community

was recognised and acknowledged with the award of

the 2003 Powercor/Colac Otway business award for

community enterprise. The Health Centre is highly valued by local people and represents a strong focal point for the Birregurra community. A recent bequest to the centre from a local resident will enable the building of an activities room in the near future.

Community Dental ClinicIn December 2003, Colac Area Health, in collaboration with Barwon Health, developed a graduate dentist rotation program, ensuring full time dental services at our clinic in Hart Street. The service has proven to be enormously successful at a time when the provision of community dental services in rural areas is highly problematic. Two dentists, supported by a small team of assistants, are available at the clinic during business hours Monday to Friday.

The ‘Community Hub’Colac Area Health has secured funding to redevelop the Colac Neighbourhood House, and in collaboration with the Neighbourhood Renewal Program (a program of the Department of Human Services) the ‘Community Hub’ is to be built.

A variety of programs and activities will be run from this new development and many of these programs will refl ect Colac Area Health’s integrated service platform. For example, the ‘Tiny Talkers’ program demonstrates the benefi t of an integrated service bringing together the strengths of different program areas to provide an exciting and innovative program for children

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with developmental diffi culties in relation to their speech.

Family Support and Speech Pathology staff deliver the program, combining their expertise and skills to provide a series of sessions aimed at enabling children and their parents to have fun together whilst developing ideas, initiative, curiosity and inventiveness, and at the same time helping to develop and model useful strategies and ideas to encourage language development at home.

Future DirectionsService planning and delivery are underpinned by a strong emphasis on health promotion and a social model of health. This assumes greater consumer participation in the planning processes and ongoing inter-agency and inter-program cooperation and collaboration.

In practical terms, this means increasing the capacity to consult with diverse groups in the community. We aim to continue the development of group programs designed to develop personal skills, knowledge, an ownership of personal and community health, and the promotion of consistent “better health” messages across the whole area population. This is more relevant and challenging now given the emerging needs of our increasing Culturally and Linguistically Diverse (CALD) communities in Colac.

Program initiatives are formulated to address the social, environmental and personal factors that contribute to illness and disease. Colac Area Health initiatives promote behaviour and environments that support health and wellbeing for all members of the community.

John TownsendDirector of Primary Care

Primary CarePrimary Care

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Staff RelationsStaff Relations

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Profi leThe Payroll and Salary Packaging arm of the Human Resource Department continues to deliver quality services to our staff. The Payroll Department has produced some 10,719 payslips this fi nancial year, for both Colac Area Health and other external agencies.

The Salary Packaging Department services 330 staff and has processed $2,489,939.00 in this fi nancial year. This service to staff has a very real

infl uence on our retention rates, ability to attract staff

and staff satisfaction.

Staffi ngOur staffi ng levels remain stable with 474 staff employed across a various range of positions. Turnover currently stands at around 13%.

Health Professionals still remain diffi cult to attract to country areas, this is partly due to the large number availing themselves of the fi nancial rewards obtainable overseas. In all other areas of our organisation staffi ng levels remain constant.

With the development of the Colac Area Health website it is envisaged that this will be an excellent tool to promote our organisation and effectively attract qualifi ed staff.

TraineesColac Area Health continues to assist the youth of Colac with traineeships across a range of disciplines. We are currently running traineeships in Division 2 Nursing, Finance, Information Technology and Dental Nursing. It is pleasing to note that all trainees who have completed their course have gone on to obtain permanent positions in their chosen fi elds.

Equal OpportunityThe introduction of our Employment Resource Manual in early 2003 has tightened our controls on employment under the merit and equity banner.

Colac Area Health is very proud of our transparent employment practices and will continue to maintain a fair and equitable employment program.

Risk ManagementThe introduction of a new portfolio, risk manager, to the Human Resource Manager’s role has enhanced the ability of the Human Resource Department to monitor risks across the organisation. The information received concerning these risks allows the Human Resource Department to plan to reduce or contain risks as much as possible.

Although in its infancy, the Risk Management System has already assisted Colac Area Health in addressing long standing issues, such as security and staff succession planning.

Occupational Health and SafetyOur Occupational Health and Safety program continues to evolve. Some major goals have been reached this year, which include:

• Implementation of a monthly safety check list for all managers.

• Distribution to all work areas of the Occupational Health and Safety Manual.

• Reduction of Manual Handling incidents by 48%.

• 90% compliance with Department of Human Services Occupational Health and Safety framework.

• Workplace safety audits completed on six monthly basis.

• Continued compliance with audits completed by WorkSafe inspectors.

This is a pleasing outcome and demonstrates an overall staff commitment to our Occupational Health and Safety objectives.

BenchmarkingColac Area Health along with twelve other regional hospitals have taken part in an Absenteeism

Staff RelationsStaff Relations

34


Benchmark Program. This has involved the tracking and recording of all sick leave and family leave over the reporting period. It is pleasing to report that at the completion of this exercise Colac Area Health has recorded the lowest absenteeism fi gures. This result further displays the committment and strong staff morale within the organisation.

WorkCoverOur work in the Occupational Health and Safety area has had a direct effect on our WorkCover liability and claim numbers.

Our WorkCover levy has decreased by 14.2% and recorded WorkCover claims by 73%.

It is pleasing to note that across all baseline data Colac Area Health has achieved major reductions as demonstrated in the following table:

ClaimsCost

DurationRate

ClaimsIncidentRate

Total

2001/02 .89% 63.44 2.90 25

2002/03 1.50% 85.55 3.35 15

2003/04 .59% 31.25 1.16 4

• Claims Cost is the total incurred claims costs as a percentage of remuneration.• Duration Rate is the average days of compensation paid per standard claim.• Claims Incident Rate is the number of claims submitted per 100 employees.

Whistleblowers Protection Act 2001In accordance with Part 6 Whistleblowers Protection Act 2001.• No disclosures were made to Colac Area

Health during the year.• No disclosures were referred by Colac Area

Health to the Ombudsman for determination or investigation.

• No disclosures were referred to Colac Area Health by the Ombudsman, or taken over by the Ombudsman.• No requests were made under Section 74 to

the Ombudsman to investigate.• No matters were declined for investigation.• No recommendations were made of the

Ombudsman under the Act that relate to ColacArea Health.

Industrial DisputesNo industrial disputes were undertaken in the reporting period.

Future InitiativesAged Care RedevelopmentThe Human Resource Department has a huge challenge ahead with the building of the 75 bed Aged Care facility. The ability to appropriately staff the facility in line with current enterprise bargaining needs and reworking our work practices to meet state-of-the-art building needs, will be diffi cult but achievable. The input into planning and ongoing monitoring of Occupational Health and Safety needs for staff and residents is a priority and will assist in alleviating many issues experienced in the current aged care environment.

Under consideration is the opportunity to enrol a large number of existing staff into traineeships. This will strengthen our ongoing commitment to staff education while giving participating staff a recognised qualifi cation.

Human Resource Information SystemThe need to move to an electronic data system and reduce duplication of information and paper usage has been the pre-cursor for the Human Resource Department to design and develop an electronic Human Resource Information System. Although still under development, it is envisaged that this system will assist all managers in tracking, recording and accessing staff information in a secure and confi dential environment.

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Employee Service AwardsCertifi cates of Service are awarded to staff and visiting medical staff on completion of 15 years service. Recipients at the Annual General Meeting in 2003 were as follows:

Executive Management Team and Service ManagersColac Area Health is operationally managed by the Executive Management Team consisting of:

Jan Ross, Chief Executive Offi cer (CEO)John Scarrott, Director of Finance/Deputy Chief Executive Offi cer (DOF/DCEO)Ann Hague, Director of Nursing (DON)John Townsend, Director of Primary Care (DPC).

(Pictured L-R Ann Hague DON, John Scarrott DOF/

DCEO, Anthony Graham Chairman Board of Directors,

Jan Ross CEO and John Townsend DPC)

The Directors are supported by senior managers in the corporate, nursing and primary care divisions.

Staff RelationsStaff RelationsSenior Staff ListCorporateTom Baker, Engineering Services ManagerJeff Cooke, Special Projects ManagerRoslyn Edsall, Health Information ManagerJennifer Evans, AccountantRandall Hose, Information Services ManagerPamela Matheson, Quality Development ManagerKen McCoombe, Human Resource ManagerGillian Neale, Administration ManagerTrevor Nelson, General Services ManagerTim O’Sullivan, Supply ManagerJulie Rippon, Operational SupportDavid Walters, Pharmacy Services Manager

NursingSimon Walter, Business Manager

Assistant Directors of Nursing

Ruth BambryPaula DeavinPauline KerrGail MooreElizabeth ScarrottMuriel Spence

Nurse Unit Managers

Marlene Caldwell, Polwarth HouseSuzie Hetherington, Otway PioneersDelia Melville, Emergency DepartmentAmanda Tout, Operating SuiteMargaret Trigg, Acute Ward

Primary CareShelley Bateup, Administration Unit ManagerKate Beach, Home Nursing Unit ManagerPauline Maunsell, Allied Health Team ManagerSuzanne Miller, Community Programs ManagerMarg White, Family Development Manager

STAFF MEMBERS DIVISION

Angela Cunningham Nursing

Malcolm Drummond Corporate

Irene Healy Nursing

Bernard Marshall Corporate

Theresa McKay Corporate

Gaylene Oborne Nursing

Timothy O’Sullivan Corporate

VISITING MEDICAL STAFF

Dr. Danny JonesGeneral PractitionerCorangamite Clinic

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Improving PerformanceImproving Performance

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Quality DevelopmentQuality Development

38


Quality ImprovementRedesign and simplifi cation of systems has been a major focus of quality improvement over the previous year.

Risk ManagementA facilitated baseline self-assessment of the organisation was undertaken in October 2003 by Colac Area Health staff to:

• determine a performance measure against which future comparative analysis can be made

• to aid in the development of an implementation plan to support Colac Area Health’s Risk Management Strategy.

The assessment tool, based on requirements of the Australian and New Zealand Risk Management Standard 4360:99, identifi ed existing accountability structures, organisational processes, internal capabilities, current outcomes measures and ongoing monitoring and audit mechanisms.

The baseline performance assessment achievement was 54.2%.

Complaint management and dedicated resources achieved the highest rating against the assessment elements.

A high level of achievement was obtained in incident management, complaints and claims management processes, performance indicators and audit function.

The lowest level of achievement was identifi ed in the accountability requirements necessary to sustain an effective and integrated risk management system.

The existence of a number of key structural and process requirements will enable Colac Area Health to align organisational functions and build the risk management process into all facets of its business operations within the next twelve months.

Major outcomes• Risk management strategy and policy

endorsed by Board• Structural arrangements in place to deliver

risk management strategy in all service• Risk rating matrix and register content

standardised across all services which included a revision of the incident reporting process and appointment of three risk portfolios

• Information mapping completed for clinical, quality and safety data

• Committee structure and function review including revision of the Bylaws and Standing Orders

• Annual risk planning commenced and completion of a joint project with Barwon Health in using a new process in identifying potential risks

• Risk awareness for all Directors and staff• Baseline assessment completed• Risk Management system implementation

plan developed.

The Improving Performance Committee has been redesigned and changed to the Safety and Quality Committee (SQC). SQC oversees clinical quality, OH&S (including Infection Control) and emergency planning across Colac Area Health particularly focusing on the delivery of safe care, meeting regulatory compliance requirements and best practice standards.

Accreditation StatusAccreditation is one of the strategies that Colac Area Health has adopted to validate and improve its safety and quality systems.

Colac Area Health is committed to meeting standards in accreditation for both the Australian Council on Healthcare Standards and Aged Care Standards Agency. Plans for continuous improvement have been submitted to both agencies and an onsite review will occur by 2005. Five staff completed the Aged Care Standards Agency auditing course to assist Colac Area Health achieve a high level of compliance against the expected outcomes. Compliance with the emergency management and the development of a preventative maintenance program have been high priority areas.

Improved documentation resulted as an outcome of reviews undertaken by the Department of Veterans Affairs and Home and the Community Care Agency against their expected standards.

Meeting the expectation of clients, patients and residentsThe measurement of consumer satisfaction is encouraged in all departments. The level of

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satisfaction for Acute Services remained steady at 98%. Clients are seeking more information relating to their conditions and more information on medication management.

The Quality of Care Report outlining major areas of achievement was distributed to over 8,000 households and received a credible result for content by Department of Human Services.

An internal survey of residents in Aged Care indicated a high level of satisfaction with the nursing care. Residents and their families are pleased that the redevelopment of the Aged Care facility will occur in the forthcoming year.

Future DirectionsThe Safety and Quality Committee looks forward to fostering a desirable culture of self-regulation and commitment to continuous improvement, which will be refl ected in the results of external auditing.

Information ServicesColac Area Health has continued to grow in the Information Services area over the reporting period. Currently 239 staff throughout the organisation have access into the Colac Area Health computer network, allowing for high speed email and internet access. The staff access their work from 160 personal computers, which are managed by two Servers.

AchievementsColac Area Health introduced Internet Protocol (IP) Telephony, in June 2004. This new technology uses the existing personal computer network and completely replaces the PABX-style telephone system which was used from 1995. This results in greater fl exibility, cheaper STD phone calls, and far less maintenance costs.

At the same time, the Colac Area Health computer network was completely upgraded from the older 10Mbit Ethernet standard to the newer, much faster 100Mbit standard to accommodate the increased network traffi c.

Also introduced was a new wireless network, to co-exist with the traditional land-based personal

computer network. This allows the Service to utilise portable wireless telephones, as though they were an ordinary desk telephone… and also allows the deployment of laptop computers with wireless connections, thus removing the need for network cabling.

A further development to the existing Bio-Medical

monitoring equipment at Colac Area Health allows

the realtime monitoring of a patient’s vital signs via

the SWARH (South West Alliance of Rural Health,

of which Colac Area Health is a founding member)

network. As the SWARH network now extends into

Geelong, via Barwon Health, this allows doctors and

specialists from larger cities, for example, Geelong,

the ability to check and diagnose a patient, without

leaving their offi ce.

Colac Area Health is currently developing an internet site www.colacareahealth.com.au, and anticipates this will be accessible by the public in October 2004.

The Colac Area Health personal computer network is now fully migrated to Windows 2000 Server, which has simplifi ed administration and maintains a uniform design across the network.

The Emergency Department at Colac Area Health has transitioned to a new clinical software package, called “Medtrak” – this is browser-based, to eliminate the need for third party software to be installed on idividual computers and follows the SWARH’s lead of standardising clinical applications across the South West and Barwon Health regions.

Infection ControlThe Infection Control Department at Colac Area Health is staffed by two Registered Nurses.

Completion of accredited courses in Infection Control and Sterilisation, Immunisation and HIV/HCV counselling allow for the provision of services to Colac Area Health staff and the organisation to meet the fi ve priority areas as identifi ed in the Victorian Infection Control Strategy circulated by the Department of Human Services. These are:

Management, commitment, leadership and accountability

Strategic plan developedMulti disciplinary Infection Control team, policies and information

Quality DevelopmentQuality Development

40


Monitoring of Infection Control and reducing infection rates

Monthly fi gures are collected and reported

Prevention of Adverse EventsCleaning, disinfection and sterilisation complies with the Australian Standards and this is routinely monitored

SurveillanceCollection of data on hospital acquired infections and resistant organismsSubmission of this data to a newly established central body for Victorian Public Health Services (VICNISS), which allows benchmarking

Protecting Healthcare workers and visitorsCo-ordination of vaccination programs for staff (infl uenza, hepatitis B)Monitoring of occupational exposuresCatch up vaccinations for inpatients

The Infection Control Department is also involved with the planned ongoing redevelopment, construction and renovation of Colac Area Health to promote healthcare in the rural setting.

Health InformationServices

Freedom of Information requests:2003/2004 - 24 Requests2002/2003 - 23 Requests2001/2002 - 21 Requests

Achievements Otway Pioneers and Polwarth House Aged Care residents medical records have been identifi ed on the tracking system along with the patient’s acute record.

Home Nursing, Diabetic Education and Barwon Post Acute Care records have been identifi ed on the tracking system.

This has enabled staff to easily identify the number and type of records held on a patient for retrieval purposes. The storing of archived records onsite which were formerly held off site has further assisted the process.

Compliments

Quality Community Care is the goal for Colac Area Health, as our logo suggests.

We continually strive to improve all aspects of the Service and therefore recognise the complaints and compliments process as a vital link to help monitor, improve, implement and develop appropriate services in the provision of care, for all our consumers.

Surveys and questionnaires completed by patients, residents and clients provide information as to the level of satisfaction.

The number of compliments received confi rms the quality of care received at Colac Area Health which remains at a high standard. All staff should be congratulated for their continued excellence in

service provision.

Suggestions and comments are welcomed and should be directed to the Chief Executive Offi cer.

ComplaintsColac Area Health is required to respond to complaints by clients, patients and the public and inform the Health Services Commissioner of the nature and outcome of complaints.

Colac Area Health has a Complaints Liaison Team consisting of three staff members. In 2003 there were 47 complaints received which is consistent with previous years.

Complaints received over the past three years were compared to the 3,061 complaints received Statewide. Colac Area Health’s data was consistent with the Statewide data in terms of:

o Issues raisedo Ease of resolutiono Seriousnesso Time for complaint resolutiono Outcomes

Environmental ServicesEnvironmental Services

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Profi leThe General Services Department provides catering, cleaning, porter/orderly, mail, linen, personal linen and waste services to users of Colac Area Health with an Equivalent Full Time staff of 55.

The Food Service is a cook fresh system and provides in excess of 200,000 meals per year.

External Food Service is provided to Colac Otway Shire [Meals on Wheels], Victoria Police Force, Australian Red Cross and other organisations.

Cleaning is provided from very high risk functional areas to minimal risk functional areas. All cleaning is in accordance with Cleaning Standards in Victorian Public Hospitals.

External service providers located onsite PathCare and Mayne Health also use Colac Area Health cleaning services.

Relocation of workstations and storage of equipment is also overseen by the General Services Department.

The redevelopment of Aged Care will have a major impact on the General Services Department, with regard to the provision of cleaning services.

Cleaning protocols will be reviewed in consultation with the Infection Control Nurse and staff. With the increase in ensuites and changes to the layout, cleaning resources will need to be reviewed. Staff levels, equipment and procedures will all be reviewed, ensuring that standards are maintained.

AchievementsAudit of Cleaning ServicesIn accordance with requirements, an external Auditor, Clinical Nurse Consultant Infection Control, South West Healthcare conducted an audit of Colac Area Health on 30 March, 2004. Results of the audit are detailed in the table on Page 43.

Audit of Food Safety ProgramLegislation also requires that an external audit of the Food Safety Program be conducted. Catering & Hospitality Management Services P/L conducted the audit of Colac Area Health on 29 January, 2004. These results are detailed in the following table.

Menu DevelopmentMenu development has been a priority for the chef in consultation with a dietitian.

Recipes have been developed taking all of the following into consideration:

Nutritional Guidelines Glycemic Index Carbohydrate servesSuitability to meet different special diet requirementsTexture modifi cationPresentation.

Recipes have been trialled with staff, residents

and relatives involved in “Tasting” sessions. Full

implementation of the reviewed menu will occur in

the next year.

Waste ManagementReduce, Reuse, Recycle

Colac Area Health is a certifi ed Waste Wise Business

which generates a number of waste streams:

General – Household type wasteRecyclables – Papers, cardboard, cartons,

plastics, glass, aluminium and tinClinical & Related Waste – Sharps, body fl uids, specimens, Human TissueCytotoxic – Cytotoxic drugs used for

Chemotherapy unitsOrganic – Food and Green

It is the responsibility of all staff to ensure correct segregation of waste at the point of generation to be ready for collection. The General Services

Audit of Food Safety Program Results for Standard:

2002 2003 2004

3.2.2 – Food Safety Practices and General Requirements

98.92 94.57 96.74

3.2.3 – Food Premises and Equipment

97.87 100 100

There were three non-notifi able areas requiring corrective action, this action was attended to and certifi cates were issued on 13 February, 2004.

Environmental ServicesEnvironmental Services

42


Department collects waste throughout the organisation and takes it to a central point for collection by contractors.

• General Waste is collected daily• Recyclables are collected weekly• Infectious, clinical waste is stored in a

cool room and collected weekly• Cytotoxic waste is stored in waste cool

room and collected weekly• Pharmaceuticals, chemicals and other

wastes are collected as required in accordance with Environment Protection Authority [EPA] guidelines and Government regulations.

Waste removal is a considerable expense to Colac Area Health, therefore all staff are encouraged to practice the Reduce, Reuse, Recycle principles in an effort not only to assist Colac Area Health, but the environment.

LinenLinencare, Geelong, supplies hospital linen under contract. Personal linen for 78 aged care residents is laundered on site.

A proposal was submitted for a grant of $50,000 to upgrade the Personal Linen laundry. This was successful and the upgrade will commence in July 2004.

The General Services Department constantly reviews systems to ensure best practice. Some initiatives for the Department include:

100% completion of Staff Development in April 2004Main storeroom in kitchen reconfi gured to improve staff safetyFood Safety Plan, reviewed and acceptedFood Safety Plan developed for Birregurra Community Health Centre and awaiting approvalImproved stock control procedures.

Future DirectionsImplementation of new menu.Upgrading of personal linen laundry.Participation in planning of new Aged Care Facility.Review of cleaning procedures in preparation for new Aged Care facility. Considering culture, practice, infection control, frequency and general perceptions.

Results of Audit of Cleaning Services

Area 2003 2004

AreasAudited

ScoreAreas

AuditedScore

Group A -Very High RiskOperating Suite, Intensive Care Unit 5 98% 4 97%

Group B–High and Moderate RiskCentral Sterilising Supply Department, Sterile supply areas, Emergency Department, Pharmacy clear area, Wards etc

22 96% 18 94%

Group C – Low RiskLaboratories, Mortuary, Medical Imaging, Waiting Rooms, Administration

2 98%

TOTALS 29 96.2% 22 94.5%

ALL areas meet the Cleaning Standards Acceptable Quality Level [AQL]

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Our CommunityOur CommunityThe community of Colac and district along with

auxiliaries, volunteers, service clubs and groups,

philanthropic trusts, local businesses and Colac Area

Health staff, continue to support fundraising activities

hosted by Colac Area Health.

A total of $684,156.00 was raised in 2003/2004. Some of the major activities included:

Blue Ribbon Foundation RodeoThe rodeo organised by the Blue Ribbon Foundation (Colac Branch) proved very successful. A small committee worked tirelessly in an effort to ensure its success.

Golf DayThe Colac Area Health Golf Day was held in April and again proved to be a very popular event again, attracting record participants. This is a social day which gives everyone the chance to relax and enjoy the festivities.

Murray to Moyne CyclathonThe Colac Cranks took part in the cyclathon again this year. A mix of old and new managed to complete the course and raise money which will be used to purchase equipment in the new Aged Care facility.

Big House Auction

44


Calendar of Events

September, 2004• Aged Care Standards Agency Support Visit

October, 2004• Australian Council on Healthcare Standards Periodic Review• Annual General Meeting• Launch of inaugral Colac Area Health website

November, 2004• Board of Directors Appointment Round

January, 2005• Blue Ribbon Foundation (Colac Branch) Rodeo

February, 2005• Proposed commencement of construction of the Aged Care facility• Board Strategic Planning

March, 2005• Murray to Moyne Cyclathon

April, 2005• Colac Area Health Golf Day.

Blue Ribbon Foundation Rodeo

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Our VolunteersOur VolunteersCertifi cates of ServiceCertifi cates of Service are awarded to volunteers on completion of 10 years service. Recipients at the Annual General Meeting in 2003 were as

follows:

Rosemary Richardson

Board Member of Colac District Hospital Board of Management, and inaugural Colac Community Health Services Board of Directors. Member of various Sub-Committees predominately related to patient care and fundraising.

Kathleen Drummond

Member of the Colac District Hospital Ladies’ Auxiliary.

ShirleyBowen

Secretary of the Colac District Hospital Ladies’ Auxiliary.

Shirley has also been a volunteer with the Flower Ladies Group for the past ten years and is the Group’s Secretary.

MargaretMaher

Palliative Care Volunteer

ORGANISATION/INDIVIDUAL

IN APPRECIATION FOR

Bank of Melbourne Colac Branch

Donation from proceeds of BBQ and Chocolate Drive conducted by Bank of Melbourne staff.

Mr. Garry Richardson

Acknowledgement for involvement in fundraising events over the past 10 years, in particular as a musician.

Forrest Football Club

Donation received from the proceeds of a Practice Match.

Colac Quilters Donation to purchase a wooden outdoor setting. Table and chairs have been placed on lawn area adjacent to maternity section for use by patients, their families and friends.

Custom Car and Bike Club

Donation of a television and playstation for the children’s ward being the proceeds from the annual car show.

Trotter’s Dental Clinic

Donation of funds raised at the Dentist’s Ball and Auction. A utensil washer for instruments in the Emergency Department was purchased from this donation.

Langdon Produce A generous donation was received from this local business.

Ms. Lorna Burnie and Diane Hunt

As part of the National Australia Bank Employees Community Service Program, provided assistance at Colac Area Health’s Offi cial Opening of the Redevelopment in May, 2003.

Sgt. Carl Bolton Sen. Cons. Leanne Busfi eld, Cons. Paul Lees and Cons. Justine Wood

Together with two Colac Area Health Youth Workers, 14 young people from Colac High School and 25 recruits from the Academy, attended an interactive camp on 22, 23 and 24 September, 2003.Colac Area Health is most appreciative of the outstanding support received from the Victoria Police in Colac.

Victoria Police - Colac Branch

In appreciation for collaborative work between Police and Colac Area Health staff in various activities and programs.

Certifi cates of AppreciationCertifi cates of Appreciation are presented to individuals and organisations that have made a substantial contribution to Colac Area Helath during the past twelve months. Recipients at the Annual General Meeting in 2003 were as follows:

46


This Annual Report of the entity is prepared in accordance with the Financial Management Act 1994 and the Directions of the Minister for Finance. This index has been prepared to facilitate identifi cation of compliance with statutory disclosure requirements.

Report of OperationsDisclosure Page, Clause

Charter and PurposePage 16 9.1.3 (i) (a) Manner of establishment and relevant MinisterPage 16 9.1.3 (i) (b) Objectives, functions, powers and dutiesPage 5 9.1.3 (i) (c) Services provided and persons or sections of community served

Management and StructurePage 16-19 9.1.3 (i) (d) (i) Names of governing board members and Audit Committee Page 26 9.1.3 (i) (d) (i) Name of Chief ExecutivePage 36 9.1.3 (i) (d) (ii) Names of senior offi ce holders and brief description of each offi cePage 7 9.1.3 (i) (d) (iii) Chart setting out organisational structure

Financial and Other InformationPage 34 9.1.3 (i) (e) Workforce data and application of merit and equity principlesPage 40 9.1.3 (i) (f) Application and operation of FOI Act 1982Page 3 9.1.3 (ii) (a) Summary of fi nancial results with previous year comparativesPage 3 9.1.3 (ii) (b) Summary of signifi cant changes in fi nancial positionPage 8-15 9.1.3 (ii) (c) Operational objectives for the year and performance against those objectivesPage 8-15 9.1.3 (ii) (d) Major changes or factors affecting achievement of objectivesPage 70 9.1.3 (ii) (f) Full details of each consultancy > $100,000Page 70 9.1.3 (ii) (g) Number and total cost of consulting engagements, each costing < $100,000Page 70 9.1.3 (ii) (h) Extent of compliance with Building Act 1993- 9.1.3 (ii) (i) Statement that information listed. in Part 9.1.3(iv) is available on requestPage 70 9.1.3 (ii) (k) Statement on implementation and compliance with National Competition Policy

Financial StatementsStatement of Financial OperationsPage 56 9.2.3 (ii) (a) Operating revenue by classPage 56 9.2.3 (ii) (c) Other material revenue by class including sale of non-goods assets and contributions of assets- 9.2.3 (ii) (d) Material revenues arising from exchange of goods or servicesPage 58 9.2.3 (ii) (e) Depreciation, amortisation or diminution in valuesPage 59 9.2.3 (ii) (f) Bad and doubtful debt- 9.2.3 (ii) (g) Financing costPage 50 9.2.3 (ii) (h) Net increment or decrement on the revaluation of each category of assetPage 66 9.2.3 (ii) (i) Audit expense

Statement of Financial PositionPage 58 9.2.3 (iii) (a) (i) Cash at bank or in handPage 59 9.2.3 (ii) (a) (ii) Inventories by classPage 59 9.2.3 (iii) (a) (iii) Receivables, including trade debtors, loans and other debtorsPage 59 9.2.3 (iii) (a) (iv) Other assets, including prepaymentsPage 59 9.2.3 (iii) (a) (v) Investments by classPage 61 9.2.3 (iii) (a) (vi) Property, plant and equipment- 9.2.3 (iii) (a) (vi) Intangible assets- 9.2.3 (iii) (b) (i) Overdrafts- 9.2.3 (iii) (b) (ii) Bank loans, bills payable, promissory notes, debentures and other loansPage 60 9.2.3 (iii) (b) (iii) Trade and other creditors- 9.2.3 (iii) (b) (iv) Finance lease liabilitiesPage 60 9.2.3 (iii) (b) (v) Provision, including employee benefi tsPage 62 9.2.3 (iii) (c) (i) Authorised capital- 9.2.3 (iii) (c) (ii) Issued capitalPage 62 9.2.3 (iii) (d) Reserves, and transfers to and from reserves, shown

Statement of Cash FlowsPage 52 9.2.2 (i) (c) A statement of cash fl ows during the year

Notes to the Financial Statements- 9.2.2 (i) (d) Ex-gratia payments- 9.2.3 (iv) (a) Charges against assetsPage 63 9.2.3 (iv) (b) Contingent liabilities/assetsPage 63 9.2.3 (iv) (c) Commitments for expenditurePage 56 9.2.3 (iv) (d) Government grants received or receivablePage 63 9.2.3 (iv) (e) Employee Superannuation fundsPage 58 9.2.3 (iv) (f) Assets received without adequate considerationPage 64 9.4 Transactions with responsible persons and their related parties

Compliance IndexCompliance Index

Financial ServicesFinancial Services

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IndexFinancial Report Page 48Statement of Financial Performance Page 50Statment of Financial Position Page 51Statement of Cashfl ows Page 52Notes to and Forming part of the Financial Statements Pages 53-66 Certifi cation Page 67Auditor-General’s Report Page 68

Financial ReportFinancial ReportThe occupation of the new Acute facility in February 2003 signalled the completion of Stage 1B of the Service redevelopment project, and has given patients, staff and visitors the opportunity to settle into the new facility. With the reduction in bed numbers and the centralising of a number of formerly isolated ward areas, the opportunity has also been taken to review staffi ng levels to gain productive effi ciencies. Whilst success has to a degree been achieved in this regard, a range of continuing and new fi nancial pressures has meant that the Service has had to operate in a very tight fi nancial environment for the 2003/2004 fi nancial year.

In the acute area the loss of a general surgeon, has placed pressures on variable throughput funding fl ows and has meant that the Service has become entrepreneurial in the usage of its Theatre areas. The attraction of new surgical specialities and also an innovative arrangement with Barwon Health to reduce their waiting lists via referral to Colac Area Health has seen an increase in weighted funding levels in the latter part of the year – a trend that is planned to continue into 2004/05.

The Residential Aged Care area has seen a fall in resident levels which has placed fi nancial strains on the funding and operation of a part of the Service which even at full occupancy can be best described as marginal with regard to positive fi nancial results. Again through a range of innovative programs in the Respite Care area the Service has been able to reduce expected fi nancial losses to more acceptable levels.

The continued expansion of Primary Care and the resultant growth in community programs both operated by and affi liated with the Service has placed a range of logistical pressures on fi nance operations. The need to resolve placement issues, the provision of appropriate information technology links and the fi tting in place of an effective management structure which is responsive to increasing change and the operation of the integrated care model has again placed

fi nancial pressures on an area which has little opportunity to increase managerial frameworks with the funding constraints of the various programs.

Drawing these issues together the Service on a fi nancial basis has reported an operating defi cit of $510,671 for 2003/04. This defi cit is inclusive of unfunded depreciation of $1,740,042 and Capital Grant funding of $1,017,721 and is largely due to the factors mentioned above in relation to the Service program areas.

An examination of the Balance Sheet indicates that movements in the areas of liabilities and Assets (excluding Property, Plant and Equipment) are relative and the rapid reported growth in the Non Current Assets (Property, Plant and Equipment) in previous years has ceased with the completion of Stage 1B Building Works.

The commencement in 2004/05 of Phase II of the redevelopment program valued at $14M for the construction of a 75 bed high level residential aged care facility, to replace the current facilities will see a further range of fi nancial pressures and physical disruptions.

These challenges will have to be met and resolved by the staff whose ongoing commitment to the continued improvement of the Service building fabric is to be commended. The anticipated end result of this program will be a facility which through its design and character will provide a truly integrated model of care which will be well placed to meet the demands of the future both in a physical and fi nancial sense.

John ScarrottDirector of Finance/Deputy Chief Executive Offi cer

Patient Fees Outstanding - Outstanding Debtors as at 30 June, 2004

Under 30 Days

31-60Days

61-90Days

Over 90 Days

Total30/06/04

Total30/06/03

Total30/06/02

Private 57,480 13,547 7,395 2,426 80,848 160,560 136,595

TAC - - - - - 577 6,280

VWA 3,185 3,494 1,363 642 8,684 23,415 14,13048


Average Collection Days

Private TAC VWA

2001 56 13 72

2002 49 41 53

2003 51 61 57

2004 40.6 6.2 24.8

Current Ratio

1999 2.11

2000 1.52

2001 1.97

2002 1.6

2003 0.71

2004 0.78

Current Ratio - measure of the ability of the institution to pay current liabilities from current

assets.

Selected Performance Ratios

Debt to Equity (Gearing) - Ratio is used to demonstrate the primary source of funds used by the Service to determine the level of reliance on internal

or external funds.

Revenue Indicators

Quick Ratio - measure of the ability of the institution to pay its current liabilities immediately.

Quick Ratio

1999 2.03

2000 1.67

2001 1.97

2002 1.56

2003 0.68

2004 0.75

Debt to Equity (Gearing)

2000 .21

2001 .26

2002 .24

2003 .26

2004 .24

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COLAC AREA HEALTHSTATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2004

Notes Total2004$’000

Total2003$’000

REVENUE FROM ORDINARY ACTIVITIES 2,2a 25,166 27,836

EXPENSES FROM ORDINARY ACTIVITIES 2b

Employee Benefi ts 16,966 16,497

Fee for Service Medical Offi cers 1,342 1,250

Supplies and Consumables 5,594 5,440

Share of Net Result of Joint Venture using the Equity Model 18 35 96

Depreciation 3 1,740 989

NET RESULT FROM ORDINARY ACTIVITIES 13 (511) 3,564

Net Increase in Asset Revaluation Reserve - 2,243

Decrease resulting from change in Accounting Policy 1b - (35)

TOTAL REVENUE, EXPENSE AND VALUATION ADJUSTMENTS

RECOGNISED DIRECTLY IN EQUITY - 2,208

TOTAL CHANGES IN EQUITY OTHER THAN THOSE RESULTING 13 (511) 5,772

FROM CHANGES IN CONTRIBUTED CAPITAL

This Statement should be read in conjunction with the accompanying notes

50


COLAC AREA HEALTHSTATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 30 JUNE 2004


Total2003$’000

ASSETS

Current Assets

Cash Assets 4,19 2,335 1,572

Receivables 5,19 678 526

Other Financial Assets 6,19 150 157

Inventory 8 133 158

Prepayments 19 33 54

Total Current Assets 3,329 2,467

Non-Current Assets

Receivables 5,19 1,117 1,006

Property, Plant and Equipment 12 24,561 25,145

Total Non-Current Assets 25,678 26,151

TOTAL ASSETS 29,007 28,618

LIABILITIES

Current Liabilities

Payables 9,19 1,959 1,270

Employee Benefi ts 10 2,185 2,078

Monies Held in Trust 6,7 150 157

Total Current Liabilities 4,294 3,505

Non-Current Liabilities

Employee Benefi ts 10 2,514 2,403

Total Non-Current Liabilities 2,514 2,403

TOTAL LIABILITIES 6,808 5,908

NET ASSETS 22,199 22,710

EQUITY

Asset Revaluation Reserve 13a 2,243 2,243

General Reserve 13a 50 36

Contributed Capital 13b 12,938 12,938

Retained Surplus 13c 6,968 7,493

TOTAL EQUITY 22,199 22,710


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COLAC AREA HEALTHSTATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2004


Total2003$’000

Infl ows/(Outfl ows)

Infl ows/(Outfl ows)

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts

Government Grants 19,290 17,968

Capital Grants 1,083 5,632

Patient Fees 4,682 4,321

GST Recovered from ATO 674 1,203

Donations and Bequests 684 291

Other 1,364 791

Payments

Employee Benefi ts (16,748) (16,067)

Fee for Service Medical Offi cers (1,476) (1,375)

GST Paid to ATO (1,824) (2,274)

Other (6,124) (5,739)

NET CASH FLOWS FROM OPERATING ACTIVITIES 14 1,605 4,751

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of Properties, Plant and Equipment (1,203) (7,635)

Proceeds from Sale of Properties, Plant and Equipment 361 684

NET CASH USED IN INVESTING ACTIVITIES (842) (6,951)

NET DECREASE IN CASH HELD 763 (2,200)

CASH AT 1 JULY 1,572 3,772

CASH AT 30 JUNE 4 2,335 1,572


52


COLAC AREA HEALTHNotes to and Forming part of the Financial Statements for the year ended 30 June, 2004

Note 1: Statement of Accounting PoliciesThis general-purpose fi nancial report has been prepared on an accrual basis in accordance with the Financial Management Act 1994, Australian Accounting Standards, Statements of Accounting Concepts and other authoritative pronouncements of the Australian Accounting Standards pronouncements of the Australian Accounting Standards Board, and Urgent Issues Group Consensus Views.

It is prepared in accordance with the historical cost convention, except for certain assets and liabilities which, as noted, are at valuation. The accounting policies adopted, and the classifi cation and presentation of items, are consistent with those of the previous year, except where a change is required to comply with an Australian accounting standard or Urgent Issues Group Consensus View, or an alternative accounting policy permitted by an Australian accounting standard is adopted to improve the relevance and reliability of the fi nance report. Where practicable, comparative amounts are presented and classifi ed on a basis consistent with the current year.

(a) Rounding OffAll amounts shown in the Financial Statementsare expressed to the nearest $1,000.

(b) Adoption of International Financial Reporting Standards (IFRS)For reporting periods beginning on or after 1 January 2005, all Australian reporting entities are required to adopt the fi nancial reporting requirements of the Australian equivalents to International Financial Reporting Standards (IFRS). This requirement also extends to any comparative fi nancial information included within the report. The fi rst day of the comparative period, 1 July 2004, effectively becomes the transitions date for Colac Area Health. Any adjustments arising from changes in the recognition or measurement of assets and liabilities at the transition date arising from the adoption of IFRS will be made against accumulated funds at the transition date.

Colac Area Health has taken the following steps in managing the transition to Australian equivalents to IFRS:

• Established a committee for the oversight of the transition to and implementation of the Australian equivalents to IFRSs;

• Commence activities to identify key issues and the likely impacts resulting from the adoption of Australian equivalents to IFRSs;

• An education process for all stakeholders to raise awareness of the changes in reporting requirements; and

• Reconfi guration and testing of user systems and processes to meet new requirements.

Colac Area Health has identifi ed a number of changes to the existing accounting policies that may have a material impact on Colac Area Health’s future fi nancial position and performance following the adoption of the requirements of Australian equivalents to IFRS (the new standards).

These include:• Valuation of assets. In accordance with the

Victorian Government Policy – Revaluation of Non-Current Physical Assets, Colac Area Health currently measures its non-current physical assets, other than plant, equipment and vehicles, at fair value subsequent to initial recognition. Plant, equipment and vehicles are measured on a cost basis. Revaluations are assessed annually and supplemented by independent assessments at least every three years. The new standard continues to offer a choice for measuring each class of non-current physical assets either at cost or at fair value. However, non-current assets measured a fair value will only be required to be revalued at least every three to fi ve years and all assets in a class must be revalued at the same time.The Victorian government has not yet concluded whether it will make any changes to the valuation basis of any class of asset or the methodology or frequency at which revaluations are performed.The fi nancial effects of any such changes are unknown.

• Impairment of assets. Under the new standards, an asset will be required to be assessed for impairment each year. If indicators of impairment exist, the carrying value of an asset will need to be assessed to ensure that the carrying value does not exceed its recoverable amount, which is the higher of its value-in-use and fair value less costs to sell. For Colac Area Health, value-in-use of an asset is its depreciated replacement cost.Other than inventories, fi nancial assets and assets arising from construction contracts, impairment testing will apply to all assets regardless of whether they are measured on a costs or fair value basis.Where the carrying value of an asset exceeds its recoverable amount, the difference will be written-off as an impairment loss to the statement of fi nancial performance except to the extent that the write-down can be debited to an asset revaluation reserve amount applicable to that asset. Any impairment losses at transition date will be adjusted against the accumulated funds.

• Superannuation. Colac Area Health recognises in the notes to the Financial Statements an unfunded superannuation liability that has been refl ected in the Financial Statements of the Department of Treasury and Finance arising from the service of employees who are members of defi ned benefi t superannuation schemes. This present value liability is currently calculated using the expected long-term earnings rate of investments held by the superannuation funds. Under the new standard, the present value of the net defi ned benefi t must be calculated using a long-term bond rate. These two rates may be different, leading to a difference in the calculation of the present liability. It is expected that the long-term bond rate may be revised more frequently than the expected long term earnings rate, leading to greater volatility. In addition the measurement of assets held by the defi ned benefi t superannuation fund will also change. Under the existing accounting standard, plan assets are

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not funded by the Department of Human Services.

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

2004 2003Buildings Up to 50 years Up to 50 yearsPlant and Equipment Up to 40 years Up to 40 years

(h) PayablesThese amounts represent liabilities for goods and services provided prior to the end of the fi nancial year and which are unpaid. The normal credit terms are usually Nett 30 days.

(i) Goods and Services TaxRevenues, expenses and assets are recognised net of GST except for receivables and payables which are stated with the amount of GST included and except where the amount of GST incurred is not recoverable, in which case GST is recognised as part of the cost of acquisition of an asset or part of an item of expense or revenue. GST receivable from and payable to the Australian Taxation Offi ce (ATO) is included in the statement of fi nancial position. The GST component of a receipt or payment is recognised on a gross basis in the statement of cash fl ows in accordance with Accounting Standard AAS 28.

(j) Employee Benefi tsEmployee benefi t liabilities are based on pay rates expected to apply when the obligation is settled. On-costs such as WorkCover and superannuation are included in the calculation of leave provisions.

Long Service LeaveThe provision for long service leave is determined in accordance with AASB 1028. The liability of long service leave expected to be settled within 12 months of the reporting date is recognised in the provision for employee benefi ts as a current liability. The liability for long service leave expected to be settled more than 12 months from the reporting date is recognised in the provision of employee benefi ts as a non-current liability and measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date. 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 on national Government guaranteed securities with terms to maturity that match, as closely as possible, the estimated future cash outfl ows.

Wages and Salaries, Annual Leave and Accrued Days OffLiabilities for wages and salaries, annual leave and accrued days off are recognised, and are measured as the amount unpaid at the reporting date in respect of employees’ services up to the reporting date and are measured as the amounts expected to be paid when the liabilities are settled.

Sick LeaveLiabilities for sick leave are recognised when the leave is taken and measured at rates paid or payable.

measured at net market value, taking into account the cost of realisation. The new standard requires plan assets to be measured at fair value and is silent on the issue of cost of realisation. This may result in an adjustment to Colac Area Health’s unfunded superannuation at transition date.

• In addition, other changes in requirements have been identifi ed which are expected to lead to changes in methodology or processes, increased disclosures and possible changes in measurement of assets or liabilities. The changes are not expected to have a material impact.

(c) ReceivablesTrade 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 uncollectable are written off. A provision for doubtful debts is raised where doubt as to collection exists.

(d) InventoriesInventories are valued at the lower of costs and net realisable value. Cost is determined principally by the fi rst-in, fi rst-out method and average cost method.

(e) Other Financial AssetsOther fi nancial assets are valued at cost and are classifi ed between current and non current assets based on the Hospital Board of Management’s intention at balance date with respect to the timing of disposal of each asset. Interest revenue (if applicable) from other fi nancial assets is brought to account when it is earned.

(f) Revaluations of Non-Current AssetsSubsequent to the initial recognition as assets, non-current physical assets, other than plant and equipment, are measured at fair value. Plant and equipment are measured at cost. Revaluations are made with suffi cient regularity to ensure that the carrying amount of each asset does not differ materially from its fair value at the reporting date. Revaluations are assessed annually and supplemented by independent assessments, at least every three years. Revaluations are conducted in accordance with the Victorian Government Policy Paper Revaluation of Non-Current Physical Assets.

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

Revaluation increments and decrements are offset against one another within a class on non-current assets.

(g) DepreciationAssets 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 using the straight-line method.Estimates of the remaining useful lives for all assets are reviewed at least annually. This depreciation charge is


54


SuperannuationThe amount charged to the statement of fi nancial performance in respect of superannuation represents the contributions made by Colac Area Health to the superannuation fund.

Employee Benefi t On-CostsEmployee benefi t on-costs are recognised and included in employee benefi t liabilities.

(k) The Polwarth House and Otway Pioneers NursingHomes operations are an integral part of the Hospitaland share its resources. An apportionment of land andbuildings has been made based on fl oor space. Theresults of the two operations have been segregatedbased on actual revenue earned and expenditureincurred by each operation.The Polwarth House and Otway Pioneers NursingHomes are controlled by the same Board of Directorsas that of the Service and are substantially funded fromCommonwealth bed day subsidies. The transactions ofthe Nursing Homes are included in these fi nancialstatements. The Nursing Home operations are anintegral part of the Service and share its resources.

(l) Intersegment TransactionsTransactions between segments within the Service have been eliminated to refl ect the extent of the Service’s operations as a group.

(m) Leased Property and EquipmentA distinction is made between fi nance leases which effectively transfer from the lessor to the lessee substantially all the risks and benefi ts incidental to ownership of leased non-current assets, and operating leases under which the lessor effectively retains all such risks and benefi ts. Where a non-current asset is acquired by means of a fi nance lease, the minimum lease payments are discounted at the interest rate implicit in the lease. The discounted amount is established as a non-current asset at the beginning of the lease term and is amortised on a straight-line basis over its expected useful life. A corresponding liability is established and each lease payment is allocated between the principal component and the interest expense. Operating lease payments are representative of the pattern of benefi ts derived from the leased assets and accordingly are expensed in the periods in which they are incurred.

(n) Revenue RecognitionRevenue is recognised in accordance with AAS 15. Income is recognised as revenue to the extent it is earned. Unearned income at reporting date is reported as income received in advance.

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

Government GrantsGrants are recognised as revenue when the Service gains control of the underlying assets. Where grants are reciprocal, revenue is recognised as performance occurs under the grant. Non-reciprocal grants are recognised as revenue when the grant is received or receivable. Conditional grants may be reciprocal or non-reciprocal depending on the terms of the grant.

Indirect Contributions- Insurance is recognised as revenue following

advice from the Department of Human Services- Long Service Leave – Revenue is recognised upon

fi nalisation of movements in LSL liability inline with the arrangements set out in the Acute Health Division Hospital Circular 16/2004

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

Donations and Other BequestsDonations and bequests are recognised as revenue when the cash is received. If donations are for a special purpose, they may be appropriated to a reserve, such as specifi c restricted purpose reserve.

(o) Fund AccountingThe Service operates on a fund accounting basis and maintains three funds: Operating, Specifi c Purpose and Capital Funds. The Service’s Capital and Specifi c Purpose Funds include unspent capital donations and receipts from fundraising activities conducted solely in respect of these funds.

(p) Services Supported by Health Services Agreement and Services Supported by Hospital and Community Initiatives

Activities classifi ed as Services Supported by Health Services Agreement (HAS) are substantially funded by the Department of Humans Services while Services Supported by Hospital and Community Initiatives (Non HAS) are funded by the Service’s own activities or local initiatives.

(q) Comparative InformationWhere necessary the previous year’s fi gures have been reclassifi ed to facilitate comparisons.

(r) Asset Revaluation ReserveThe asset revaluation reserve is used to record increments and decrements on the revaluation of non-current assets.

(s) Contributed CapitalConsistent with UIG Abstract 38 ‘Contributions by Owners Made to Wholly-Owned Public Sector Entities and Financial Reporting Direction 2 “Contributed Capital”, transfers that are in the nature of contributions or distributions, have been designated as contributed capital.

(t) South West Alliance of Rural Health (SWARH) Agreement

A consortium of health facilities in the South-West Region established an agreement to co-operatively implement an Information Technology strategy. This group was established in June 1998. The Colac Area Health proportion of revenue and expenditure of the group is bought to account on a line-by-line basis which represents 12.38% of the group net assets.


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NOTE 2: REVENUE H.S.A.

2004$’000

H.S.A.

2003$’000

NonH.S.A.2004$’000

NonH.S.A.2003$’000

Total

2004$’000

Total

2003$’000

Revenue from Operating Activities Recurrent

Government Contributions

• Department of Human Services 16,661 15,975 - - 16,661 15,975

• Dental Health Services Victoria 295 173 - - 295 173

Indirect Contributions by Human Services

• Long Service Leave 111 229 - - 111 229

• Insurance 443 258 - - 443 258

• Annual Leave 36 51 - - 36 51

Patient Fees (refer Note 2c) 4,566 4,392 - - 4,566 4,392

Other Revenue 671 580 - - 671 580

Capital Purpose Income

Capital Grants - - 1,018 5,120 1,018 5,120

Assets Received Free of Charge (refer Note 2e) - - 235 - 235 -

Sub-Total Revenue from Operating Activities 22,783 21,658 1,253 5,120 24,036 26,778

Revenue from Non Operating Activities

Donations and Bequests - - 684 291 684 291

Interest - - - 1 - 1

Property Income - - 85 82 85 82

Proceeds from Disposal of Non-Current Assets (refer Note 2d) - - 361 684 361 684

Total Revenue from Ordinary Activities 22,783 21,658 2,383 6,178 25,166 27,836


Department of Human Services makes certain payments on behalf of the Service. These amounts have been brought to account in determiningthe operating result for the year by recording them as revenue and expenses.

NOTE 2a: ANALYSIS OF REVENUE BY SOURCE Acute Care$’000

RAC

$’000

AgedCare$’000

PrimaryCare$’000

Other

$’000

Total2004$’000

Total2003$’000

Revenue from Services Supported by Health Services Agreement

Government Grants

• Department of Human Services 12,255 1,119 453 2,834 - 16,661 15,975

• Dental Health Services Victoria - - - 295 - 295 173


• Long Service Leave 80 12 - 19 - 111 229

• Insurance 323 35 9 76 - 443 258

• Annual Leave 26 4 - 6 - 36 51

Patient Fees (refer Note 2c) 984 3,529 - 53 - 4,566 4,392

Interest 46 5 - 12 - 63 115

Other Revenue 608 - - - - 608 465

Sub-Total Revenue from Services Supported by Health Services Agreement

14,322 4,704 462 3,295 - 22,783 21,658

Revenue from Services Supported by Hospital and Community Initiatives

Interest - - - - - - 1

Donations and Bequests - - - - 684 684 291

Proceeds from Disposal of Non-Current Assets (refer Note 2d)

- - - - 361 361 684

Property Income - - - - 85 85 82

Assets Received Free of Charge (refer Note 2e) - - - - 235 235 -

Capital Purpose Income (refer Note 2) - - - - 1,018 1,018 5,120

Sub-Total Revenue from Services Supported by Hospital and Community Initiatives

- - - - 2,383 2,383 6,178

Total Revenue from All Sources 14,322 4,704 462 3,295 2,383 25,166 27,8365656


NOTE 2b: ANALYSIS OF EXPENSES BY SOURCE

AcuteCare$’000

RAC

$’000

AgedCare$’000

PrimaryCare$’000

Other

$’000

Total2004$’000

Total2003$’000

Services Supported by Health Services Agreement

Employee Benefi ts

- Salaries & Wages 8,644 3,251 602 2,189 - 14,686 14,295

- WorkCover 256 121 18 77 - 472 341

- Long Service Leave 136 52 6 15 - 209 256

- Superannuation (refer Note 16) 864 268 119 238 - 1,489 1,376

Fee for Service Medical Offi cers 1,342 - - - - 1,342 1,250

Supplies and Consumables

- Pharmaceutical Supplies 408 6 14 7 - 435 441

- Medical and Surgical Supplies 693 114 16 161 - 984 792

- Pathology Supplies 135 - - - - 135 162

- Food Supplies 263 324 2 7 - 596 563

Other Expenses

- Domestic Services 282 103 1 19 - 405 429

- Administrative Expenses 325 217 3 503 - 1,048 1,164

- Motor Vehicle Expenses 29 - 19 44 - 92 96

- Postal and Telephone 39 26 1 61 - 127 119

- Repairs and Maintenance 241 62 4 33 - 340 348

- Patient Transport 66 - - - - 66 53

- Insurance Costs funded by DHS 323 35 9 76 - 443 258

- Corporate Costs - Leave Liabilities 64 12 17 18 - 111 229

- Fuel, Light, Power and Water 220 67 5 18 - 310 266

Sub-Total Expenses from Services Supported by Health Services Agreement

14,330 4,658 836 3,466 - 23,290 22,438

Revenue from Services Supported by Hospital and Community Initiatives

Repairs and Maintenance - - - - 306 306 296

Sub-Total Expenses from Services Supported by Hospital and Community Initiatives

- - - - 306 306 296

Depreciation (refer Note 3) 1,054 407 - 279 - 1,740 989

Audit Fees 6 3 - 2 - 11 11

Written Down Value of Assets Sold (refer Note 2d) - - - - 330 330 538

Total Expenses from Ordinary Activities 15,390 5,068 836 3,747 636 25,677 24,272

NOTE 2c: PATIENT AND RESIDENT FEES

Total2004$’000

Total2003$’000

Patient and Resident Fees Raised

Acute

• Inpatients 864 776

• Outpatients 120 122

Residential Aged Care

• Nursing Homes 3,407 3,303

Primary Health Care

• Community Rehabilitation Centre 5 7

• Primary Care 31 18

• Dental 17 15

Total Recurrent 4,444 4,241

Capital Purpose

Residential Accommodation Payments 122 151

Total Capital 122 151

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NOTE 3: DEPRECIATION

Total 2004$’000

Total 2003$’000

Buildings 1,072 559

Plant and Equipment 668 430

Total 1,740 989

Allocation of Depreciation

Services Supported by Health Service Agreement 1,740 989

NOTE 4: CASH ASSETS

For the purpose of the Statement of Cash Flows, the Service considers cash to include cash on hand and in banks, and short-term deposits which are readily convertible to cash on hand, and are subject to an insignifi cant risk of change of value, net of outstanding bank overdrafts.

Total 2004$’000

Total 2003$’000

CASH ASSETS

Cash on Hand 1 1

Cash at Bank 2,260 821

Deposits at Call 74 750

Total 2,335 1,572

NOTE 2e: ASSETS RECEIVED FREE OF CHARGE OR FOR NOMINAL VALUE

Total 2004$’000

Total 2003$’000

During the reporting period, the fair value of assets

received free of charge, was as follows:

Land and Buildings 235 -

235 -

NOTE 2d: SALE OF NON-CURRENT ASSETS

Total 2004$’000

Total 2003$’000

Proceeds from Disposal-Motor Vehicles 361 297

Proceeds from Disposal-Land and Buildings - 357

Proceeds from Disposal-Plant and Equipment - 30

Total Proceeds from the Sale of Non Current Assets 361 684

Less Written Down Value of Assets Sold (330) (538)

Total Written Down Value of Non Current Assets Sold (330) (538)

Net Gain/(Losses) on Disposal of Non Current Assets 31 146

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NOTE 6: OTHER FINANCIAL ASSETS

OperatingFund$’000

LongService

Fund$’000

Unspecifi ed Fund$’000

Total 2004$’000

Total 2003$’000

Current

Monies Held in Trust (refer Note 7) 150 - - 150 157

Analysed as follows: Total 2004$’000

Total 2003$’000

Current

Aust. Dollar Term Deposits (+ at call) 150 157

Total 150 157

NOTE 7: MONIES HELD IN TRUST

Total 2004$’000

Total 2003$’000

Current

Polwarth House Trust Account 88 76

Salary Packaging Account 62 81

Total 150 157

Represented by

Cash Assets 150 157

Total 150 157

NOTE 8: INVENTORY

Total 2004$’000

Total 2003$’000

Current

Pharmaceuticals 38 46

Catering Supplies 9 11

Housekeeping Supplies 14 16

Medical and Surgical Lines 62 72

Engineering Stores 1 1

Administration Stores 9 12

Total 133 158

NOTE 5: RECEIVABLES

Total 2004$’000

Total 2003$’000

Current

Patient Debtors 212 326

Trade Debtors 481 213

Accrued Investment Income 2 5

Total 695 544

Less Provision for Doubtful Debts

Patient Fees 17 18

Total Current Receivables 678 526

Non-Current

Department of Human Services - Long Service Leave 1,117 1,006

Total Non-Current Receivables 1,117 1,006

Total 1,795 1,532

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NOTE 10a: EMPLOYEE BENEFITS

Total 2004$’000

Total 2003$’000

Current

Long Service Leave 250 250

Accrued Wages and Salaries 499 333

Annual Leave 1,408 1,476

Accrued Days Off 28 19

Total 2,185 2,078

Non Current

Long Service Leave 2,514 2,403

Total 2,514 2,403

Movement in Long Service Leave

Balance 1 July 2003 2,653 2,424

Provision made during the year 320 485

Settlement made during the year (209) (256)

Balance at 30 June 2004 2,764 2,653

The proportion of Long Service Leave deemed as Current is determined following an assessment of the portion of the available leave expected to be taken during the next fi nancial year.

NOTE 11: LEASE LIABILITIES

Total 2004$’000

Total 2003$’000

Aggregate Lease Expenditure contracted for at Balance Date

Operating Lease

Not later than One Year 101 23

Later than One but not later than Five Years 222 -

Total 323 23

Leasing of computer equipment commenced in 2003. Lease period is for three years with lease payments paid quarterly in advance. At the end ofthe leases, there is an option to purchase the equipment at an agreed residual value. There are no fi nancial restrictions or contingent rental payments incorporated into the lease agreements by the lessor. The interest rates were fi xed at the commencement of the leases at the current market rates.

NOTE 10: PROVISIONS

Total 2004$’000

Total 2003$’000

Current

Employee Benefi ts (refer Note 10a) 2,185 2,078

Total 2,185 2,078

Non Current

Employee Benefi ts (refer Note 10a) 2,514 2,403

Total 2,514 2,403

NOTE 9: PAYABLES

Total 2004$’000

Total 2003$’000

Current

Trade Creditors 1,466 968

GST Payable 493 302

1,959 1,270

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NOTE 12: PROPERTY, PLANT AND EQUIPMENT

Total 2004$’000

Total 2003$’000

At Cost

Buildings 110 -

Less Accumulated Depreciation - -

110 -

Motor Vehicles 636 596

Less Accumulated Depreciation 136 51

500 545

Plant and Equipment 2,964 2,407

Less Accumulated Depreciation 750 479

2,214 1,928

Less Plant and Equipment - Deemed Value 3,442 3,442

Less Accumulated Depreciation 3,120 2,897

322 545

Total 3,146 3,018

At Valuation

- Crown Land 1,654 1,654

- Freehold Land 910 910

- Buildings 30,866 30,506

- Less Accumulated Depreciation 12,015 10,943

18,851 19,563

Total 21,415 22,127

Total Property, Plant and Equipment 24,561 25,145

A formal valuation of Land and Buildings was completed at 30 June 2003 by Landlink Property Group. The basis of the valuation for Buildings is depreciated replacement cost whilst the basis of valuation for Land is Surrounding Property Values. Reconciliations of the carrying amounts of each class of land, buildings, plant and equipment and motor vehicles at the beginning and end of the current and previous fi nancial year are set out as follows:

Crown

Land

$’000

Freehold

Land

$’000

Buildings

$’000

Plant and Equip-ment

$’000

Motor

Vehicles

$’000

Total

$’000

2004

Carrying amount at start of the year 1,654 910 19,563 2,473 545 25,145

Additions - - 125 557 459 1,141

Disposals - - - - 420 420

Net Transfer Free of Charge - - 345 - - 345

Depreciation expense (Note 3) - - 1,072 494 84 1,650

Carrying amount at end of year 1,654 910 18,961 2,536 500 24,561

Crown

Land

$’000

Freehold

Land

$’000

Buildings

$’000

Plant and Equipment

$’000

Motor

Vehicles

$’000

Total

$’000

2003

Carrying amount at start of the year 1,435 20 13,105 2,056 505 17,121

Additions - - 6,024 855 435 7,314

Disposals - - 141 8 395 544

Depreciation expense (Note 3) - - 559 430 - 989

Revaluation Increment 219 890 1,134 - - 2,243

Carrying amount at end of year 1,654 910 19,563 2,473 545 25,145

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NOTE 13: EQUITY AND RESERVES

Total 2004$’000

Total 2003$’000

(a) Reserves

Asset Revaluation Reserve

Land

Balance at the beginning of the reporting period 1,109 -

Revaluation Increment 1,109

Balance at the end of reporting period 1,109 1,109

Buildings

Balance at the beginning of the reporting period 1,134 -

Revaluation Increment - 1,134

Balance at the end of reporting period 1,134 1,134

Total Asset Revaluation Reserve 2,243 2,243

General Purpose Reserve

Balance at the beginning of the reporting period 36 -

Transfers to and from General Reserve 14 36

Balance at end of reporting period 50 36

Total Reserves 2,293 2,279

(b) Contributed Capital

Balance at the beginning of the reporting period 12,938 12,938

Balance at end of reporting period 12,938 12,938

(c) Accumulated Surpluses

Balance at the beginning of the reporting period 7,493 4,000

Net Result for the Year (511) 3,564

Transfers to and from General Reserve (14) (36)

Adjustments resulting from change in accounting policy - (35)

Balance at end of reporting period 6,968 7,493

(d) Equity

Total Equity at the beginning of the reporting period 22,710 16,938

Total Changes in Equity Recognised in the Statement of Financial Performance (511) 5,772

Total Equity at reporting date 22,199 22,710

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NOTE 14: RECONCILIATION OF NET RESULT FOR THE YEARTO NET CASH FLOWS FROM/(USED IN) OPERATING ACTIVITIES

Total 2004$’000

Total 2003$’000

Net Result for the Year (511) 3,564

Non-Cash Movement -

Depreciation 1,740 989

Contributions of Non-Current Assets (345) -

Net Gain/(Loss) from Sale of Plant and Equipment 31 146

Increase/(Decrease) in Payables 689 (46)

Changes in Operating Assets & Liabilities

Increase/(Decrease) in Employee Benefi ts 218 465

Decrease/(Increase) in Inventory 25 7

Decrease/(Increase) in Receivables (263) (414)

Decrease/(Increase) in Prepayments 21 40

Net Cash Flows from Operating Activities 1,605 4,751

NOTE 15: CONTINGENT LIABILITIES/ASSETSA contingent liability exists in relation to payments for Visiting Medical Offi cer superannuation contributions. Should the Court determine this to be a fi nancialliability the estimated cost to the Service is $769,900.A contingent asset exists in respect to a Bequest from an Estate in which ColacArea Health has been named as a residual benefi ciary. Colac Area Health is receivingincome from the Estate and fi fty percent of the capital of the Estate is receivable onthe death of the life tenants.

NOTE 17: RESPONSIBLE PERSON RELATED DISCLOSURES

(a) Responsible Persons Minister for Health Hon. Bronwyn Pike MLA Minister for Health

Directors Mr. A.F. Baldwin (from 01/11/2003) Mr. A.E. Graham Mr. G.A. Johnstone Ms. D.E. Loubey Mr. P.B. Mercer(to 31/10/2003) Mr. W.D. McKean(from 02/12/2003) Mr. W.G. O’Brien Mr. R.V. Riordan Mrs. R.G. Richardson(to 31/10/2003) Mr. C.S. Sutherland Mrs. D. Wright(from 02/12/2003 to 28/05/2004)

Chief Executive Ms. J. Ross

(b) Remuneration of Responsible Persons No Responsible Person received any remuneration from the Health Service during the year. The remuneration of the Accountable Offi cer who is not a member of the Board is reported under Executive Offi cer remuneration.

NOTE 16: SUPERANNUATIONSuperannuation contributions for the reporting period are included as part of salaries and associated costs in the Statement of Financial Performance of the Service.

The name and details of the major employee superannuation fund and contributions made by the Service are as follows:

Contributionfor the Year

2004$’000

Contributionfor the Year

2003$’000

Fund

Health Super Fund 1,489 1,376

Total 1,489 1,376

Contributions are paid in accordance with the Hospitals Superannuation Act 1988.

The unfunded superannuation liability in respect to members of Health Super Fund defi ned benefi tschemes are shown as a liability separately by the Department of Treasury and Finance.Colac Area Health’s share of this liability is $849,841.79.

The above amounts were measured as at 30 June of each year, or in the case of employer contributionsthey relate to the years ended 30 June.

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NOTE 18: S.W.A.R.H. ALLIANCEThe Service has a 12.38% interest in the SWARH Alliance whose principal activity is the implementing and processing of an information technology system and an associated telecommunication service suitablefor use by each member hospital.

The Service share of assets, liabilities and operating result based on the audited results of the Alliance is:

Total 2004$’000

Total 2003$’000

Current Assets

Cash at Bank 94 -

Prepayments 33 54

Receivables 11 15

Total Current Assets 138 69

Non-Current Assets

Property, Plant and Equipment 82 180

Total Non-Current Assets 82 180

Total Assets 220 249

Current Liabilities

Bank Overdraft - 15

Payables 49 25

Employee Benefi ts 11 14

Total Current Liabilities 60 54

Net Assets 160 195

Equity

Total Equity at the Beginning of the Reporting Period 195 291

Operating Surplus/(Defi cit) (35) (96)

160 195

(c) Executive Offi cer Remuneration The number of Executive Offi cers whose total remuneration exceeded $100,000 are shown in the relevant Income Bands.

2004 2003

$’000 $’000

120 130 1 1

1 1

Total Remuneration for the reporting period for Executive Offi cers included above amount to: $130,000 $130,000

(d) Retirement Benefi ts of Responsible Persons No retirement benefi ts were paid or payable to Responsible Persons.

(e) Other Transactions Other Responsible Persons transactions requiring disclosure under the Directions of the Minister for Finance have been examined and are as follows:

Mr. C.S. Sutherland was a Director of a Company which provided medical services to the Service to the value of $804,690. These services were provided within a normal supplier relationship and are at arms length.

Ms. D. Loubey was an Executive Offi cer of a Group Practice which provided medical services to the Service to the value of $340,048. These services were provided within a normal supplier relationship and are at arms length.

Mr. W.D. McKean was a Director of a Company which provided vehicle sales and service to the Service to the value of $293,448. These services were provided within a normal supplier relationship and are at arms length.

Mr. R.V. Riordan was a Director of a Company which provided hardware to the Service to the value of $394. These services were provided within a normal supplier relationship and are at arms length.

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NOTE 19: FINANCIAL INSTRUMENTS(a) Interest Rate Risk The Service’s exposure to interest rate risk and the effective weighted average interest rate by maturity periods is set out below in the following timetable. For interest rates applicable to each class of asset or liability refer to individual notes to the Financial Statements. Exposure arises predominately from assets and liabilities bearing variable interest rates.

Interest rate exposure as at 30 June 2004 Fixed Interest Rate Maturing in:

FloatingInterest

Rate$’000

1 Yearor Less

$’000

Non-interestBearing

$’000

Total 2004

$’000

Financial Assets

Cash Assets 2,261 74 - 2,335

Receivables - - 1,795 1,795

Prepayments - - 33 33

Other Financial Assets 62 - 88 150

Total Financial Assets 2,323 74 1,916 4,313

Financial Liabilities

Payables - - 1,959 1,959

Monies Held in Trust - - 150 150

Total Financial Liabilities - - 2,109 2,109

Net Financial Assets 2,323 74 (193) 2,204

Weighted Average Interest Rate-Financial Assets 4.75% 5.00%

Interest rate exposure as at 30 June 2003 Fixed Interest Rate Maturing in:

FloatingInterest

Rate$’000

1 Yearor Less

$’000

Non-interestBearing

$’000

Total 2004

$’000

Financial Assets

Cash Assets 1,572 - - 1,572

Receivables - - 1,532 1,532

Prepayments - - 54 54

Other Financial Assets - 157 - 157

Total Financial Assets 1,572 157 1,586 3,315


Payables - - 1,270 1,270

Monies Held in Trust - - 157 157

Total Financial Liabilities - - 1,427 1,427

Net Financial Assets 1,572 157 159 1,888

Weighted Average Interest Rate-Financial Assets 4.25% 4.13%

(b) Credit Risk Exposures Credit risk represents the loss that would be recognised if counterparts failed to perform as contracted. The credit risk on fi nancial assets of the Service which have been recognised in the Statement of Financial Position is the carrying amount, net of any provision for doubtful debts. The Service minimises concentrations of credit risk by undertaking transactions with unrelated debtors. The Service is not materially exposed to any individual debtor.

(c) Net fair values of fi nancial assets and liabilities The net fair value of Statement of Financial Position fi nancial assets and liabilities are not materially different to the carrying value of the fi nancial assets and liabilities.

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NOTE 20: REMUNERATION OF AUDITORS

Total2004$’000

Total2003$’000

Audit Fees paid or payable to the Victorian Auditor-General’s Offi ce for

audit of the Service’s Financial Report

Paid as at 30 June 4 4

Payable as at 30 June 7 7

Net Fair Value

BookValue2004$’000

Net FairValue2004$’000

BookValue2003$’000

Net FairValue2003$’000

Financial Assets

Cash Assets 2,335 2,335 1,572 1,572

Receivables 1,795 1,795 1,532 1,532

Prepayments 33 33 54 54

Other Financial Assets 150 150 157 157

Total Financial Assets 4,313 4,313 3,315 3,315


Payables 1,959 1,959 1,270 1,270

Monies Held in Trust 150 150 157 157

Total Financial Liabilities 2,109 2,109 1,427 1,427

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CertificationCertifi cation

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Auditor-General’s ReportAuditor-General’s Report

68


Colac Area Health is a Victorian public sector organisation incorporated under the Health Services Act 1988 and operates under the provisions of this Act. The Minister responsible for the administration of the Health Services Act is the Minister for Health, Hon. Bronwyn Pike M.L.A. The Service is governed by a nine person Board of Directors appointed by the Minister.

The functions of the Board of Directors are:

• To conduct the Service in a manner that is consistent with the Mission Statement and the Health Services Act 1988• Establishing reporting mechanisms to monitor the performance, reports and audit processes of the Service and to ensure that they comply with the Financial Management Act 1994• The general governance of the Service• Maintaining proper accountability to government by close observation of all legislative requirements, ensuring that the Service meets or exceeds targets as agreed in the Health Services Agreement and complies with all standards governing the Service.

Pecuniary Interest and PaymentsIn accordance with the Act, Board members:• Declare pecuniary interests when applicable during Board deliberations• Do not receive payment for undertaking the duties assigned to them.

Committee StructureThe Board has established a committee structure which complies with the Act and fulfi ls the requirements of the Board and the Mission Statement to ensure that policies set in place are community and patient focused. The following are sub-committees of the Board:

Executive Management TeamHas the authority of the Board to act on its behalf between Board meetings. Action taken is received as a recommendation to the Board to be ratifi ed.

Finance and Facilities - July 2003 to February 2004Receives reports from the Director of Finance which refl ects compliance with accounting standards and mandatory report requirements. Monthly monitoring of the fi nancial performance of the Service is undertaken by the Committee.

Finance Audit and RiskIn accordance with the Risk Management Framework adopted by the Board and refl ected in the By-laws and Standing Orders, this Committee replaced the Finance and Facilities Committee in March. This Committee now receives reports from the Director of Finance which refl ects compliance with accounting standards and mandatory report requirements. Monthly monitoring of the fi nancial performance of the Service is undertaken by the Committee.

Services Review Committee - July 2003 to February 2004Accepts reports and monitors activities by the Director of Nursing, Director of Primary Care and Quality Development Manager.

Safety and QualityIn accordance with the Risk Management Framework adopted by the Board and refl ected in the By-laws and Standing Orders, this Committee replaced the Services Review Committee in March.

The Safety and Quality Committee oversees clinical qulaity, Occupational Health and Safety (including Infection Control) and Emergency Planning across the Service. It particularly focuses on the delivery of safe care, meeting regulatory compliance requirements and best practice standards.

Project Control GroupMembers of the Board and the Executive Management Team participate in the Project Control Group (PCG) which oversees the Redevelopment Project. Representatives from Department of Human Services Regional Offi ce, Capital Management Branch, Architects, Project Managers and the Quantity Surveyor receive reports on construction progress and monitor the budget.

Audit CommitteeAccepts reports and makes recommendations relating to all areas of audit.

ComplianceBased on legislative information received Colac Area Health has complied with all Acts and Regulations. Legal advice provided on behalf of Victorian Healthcare Association indicates that there is no longer a requirement for public hospitals to include a full list of Acts and Regulations in the Annual Report.

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Legislative RequirementsLegislative Requirements

70


Legislative RequirementsLegislative Requirements• Arrangements Regarding Registered Building Practitioners. The Board of Directors requires all building professionals engaged on building projects to be registered with the Building Practitioners Board or be Registered Architects.

• New BuildingsIt is required that a building permit be issued at the completion of each building project. That action ensures that new buildings and work in existing buildings conform to building standards and that the ten year liability cap is invoked.

During the year, the following works were undertaken to ensure conformity with the relevant standards.

Building Works NumberOccupancy Permits Issued -

Colac Area Health Publications•• Annual Report 2003•• Quality of Care Report 2003•• Health Update•• Quality Community Care History Book

Freedom of InformationDuring the 2003/2004 fi nancial year 24 requests were received under the Freedom of Information Act (1982). Each request has been processed and responded to.

Pecuniary InterestMembers of the Board of Directors are required to notify the President of the Board of any pecuniary interest which may give rise to a confl ict of interest as defi ned in accordance with the Directions of the Minister for Finance. All declarations of pecuniary interest have been completed and are available on request to the relevant Minister, Member of Parliament and the public.

Fees and ChargesThe Service charges fees in accordance with relevant Department of Human Services directives.

ConsultantsNo consultancies were undertaken by the Service during the 2003/2004 fi nancial year.

Competitive NeutralityAll Competitive Neutrality requirements were met with all tender applications.

Services Contracted OutThe range of Services contracted out as noted in the previous Annual Report has remained unchanged during the 2003/2004 fi nancial year.

Compliance with Building ActColac Area Health complies with the Building Act 1994 under guidelines for publicly owned buildings issued by the Minister for Finance 1994 in all redevelopment and maintenance issues.

• Building Inspections Standards Assessment Colac Area Health facilities have been the subject of a fi re audit by a Fire Services Engineer. The scope of that audit considerably exceeds the scope of an inspection by a Building Surveyor in line with the Minister for Finance’s Guidelines.

GlossaryACHS – Australian Council on Healthcare StandardsAccess – To seek and obtain health care services that are appropriate to needsADON - Assistant Director of NursingALS - Advanced Life SupportAustralian Standards – National standards developed by the Standards Association of AustraliaAQL - Acceptable Quality LevelATO - Australian Taxation Offi ceBAEW -’Be Active, Eat Well’ Project - A community Building Approach Bed Days – The total number of patient days spent in hospitalBenchmarking – The continuous process of measuring and comparing products, services and practices with similar systems or organisationsBest practice – The way leading edge organisations manage the delivery of world class standards of performance.BOD - Board of DirectorsBy-laws – Rules, regulations and legislation adopted by Colac Area Health for the regulation of internal and external businessCAH - Colac Area HealthCALD - Culturally and linguistically diverse Carers – Those who care for the patient/consumer who are not members of the healthcare teamCEO – Chief Executive Offi cerClinical Indicators – Measures of the management and outcome of careCNE - Continuing Nurse EducationConsumers – Users of the services provided by Colac Area HealthCPA - Certifi ed Practising AccountantCPR – Cardiopulmonary ResuscitationCSSD – Central Sterilising Supply DepartmentDCEO – Deputy Chief Executive Offi cerDHS – Department of Human ServicesDOF – Director of FinanceDON – Director of NursingDPC – Director of Primary CareDSU - Day Surgery UnitEFT – Equivalent Full TimeEPA - Environment Protection AuthorityFA&R - Finance, Audit and Risk CommitteeF&F - Finance and Facilities CommitteeGP - General PractitionerGST - Goods and Services TaxHSA - Health Services Act 1988IP - Internet ProtocolKRA – Key Reporting Area - a measurement of progress towards achieving a taskLSL - Long Service LeaveMultidisciplinary – Care or a service given with input from more than one discipline or professionOH&S - Occupational Health and SafetyOutcome – Results that may or may not have been intended that occur as a result of a service or interventionPatient /consumer – A person for whom Colac Area Health accepts responsibility for carePCG - Project Control GroupPND - Post Natal DepressionQuality activities – Activities which measure performance, identify opportunities for improvement in the delivery of careRCS - Resident Classifi cation ScaleRN - Registered NurseS&Q - Safety and Quality CommitteeSR - Services Review CommitteeStandard – A statement of a level of performance to be achievedStatutory requirements – Any requirement laid down by an act of parliamentSWARH – South West Alliance of Rural HealthTAC - Transport Accident CommissionThe Act – The Health Services Act 1988 (as amended)The Board – The Board of Directors of Colac Area Health

The Service – Colac Area Health Values – Principles and beliefs that guide an organisation and may involve social or ethical issues.VMO - Visiting Medical Offi cerVMS – Visiting Medical StaffVWA - Victorian WorkCover AuthorityWIES – Acute care is funded on the number of Weighted Inlier Equivalent Separations. Every separation is assigned a resource weight depending on the primary reason for the patient’s episode of care. The actual funding received for each case is derived from the

resource weight.

SponsorsColac Area Health wish to acknowledge the support of the following organisations for their sponsorship of our Annual Report for 2004:

The National Bank is the provider of fi nancialand banking services to Colac Area HealthMr. Simon VaughanManagerNational Australia BankMurray StreetColac Vic 3250Telephone: (03) 5231 5679Facsimile: (03) 5232 1702

Colac Fruit Market is a proud sponsor of Colac Area Health and this ReportMr Peter TanisManagerColac Fruit Market88 Bromfi eld StreetColac Vic 3250Telephone: (03) 5231 2429Facsimile: (03) 5231 5102

AcknowledgementsEditor: Julie Rippon Assisted by: John ScarrottDesign: Julie RipponPhotography: Colac Area Health and South Western Studios Production: Sands Print Group, Breakwater.

This Annual Report is a public document. It aims to present the performance, services and developments of Colac Area Health during the last fi nancial year in an open and user friendly manner to government and the community.

This Report is produced in accordance with Legislative Requirements set by the Minister for Finance and the criteria set by the Australasian Reporting Awards (ARA).

In addition to the Colac Area Health Annual Report, the Quality of Care Report has been produced as a separate document. Copies of both documents can be obtained from Colac Area Health or an electronic copy is available on our website www.colacareahealth.com.au

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Colac Area Health2-28 Connor Street

Colac Vic 3250Telephone: 03 5232 5100Email: [email protected]: www.colacareahealth.com.au

colac area health€¦ · of all health service organisations into one modern efﬁ cient...

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