Building for a brighter future - GHA Central

Building for a
brighter future
West Gippsland Healthcare Group
2005/2006 ANNUAL REPORT

Vision
To be the leader in the provision of integrated healthcare services.
Mission
West Gippsland Healthcare Group is committed to ensuring continuity
of care through provision of planned, high quality, integrated health
care services which respond to the changing needs of individuals
and our community.
We value
Our Customers
Our Community
Our Staff
Leadership
Improving Performance
The Annual Report
Front cover
➤ commitment to individual well-being whilst
recognising their rights and responsibilities
and encouraging consumer participation
➤ be a responsible corporate citizen and
neighbour in caring for our community
➤ are our major resource and we are
committed to caring for their well-being
and ongoing professional development
➤ be a role model in the planning, promotion
of services and education in the health
industry
➤ ensuring continuous quality improvement
The Annual Report seeks to present critical performance information
in an open, clear and reader-friendly manner.
West Gippsland Healthcare Group is committed to bench marking
performance against best practice. For this reason we prepare our Annual
Report against the criteria set by the Australasian Reporting Awards.
We are pleased to announce the 2004/2005 Annual Report received
the Group’s sixth Gold Award in the Australasian Reporting Awards,
indicating our commitment to provide quality reporting to stakeholders.
West Gippsland Healthcare Group recognises the importance of building
quality infrastructure, sound community relationships and beneficial
partnerships with other service providers to ensure we deliver quality
services to consumers. We are committed to building on our efforts over
past years, constantly improving our performance, to ensure a brighter
future for generations to come.
Contents
Overview
Significant Events 1
Year in Brief 1
At a Glance 2
Year in Review 4
Our Profile 7
Overall Performance 8
Financial Analysis 12
Corporate Governance
Board of Directors 13
Organisation Chart 15
Our People
Executive Staff 16
Occupational Health
and Safety 17
Our Staff 18
Review of Operations
Technology Report 19
Environment Report 19
Education 20
Quality Report 21
Acute (hospital) Services 26
Aged Care Services 30
Community Services 32
Non-Clinical Support
Services 34
Allied Health 35
Warragul Linen Service 36
Our Community
Volunteers 37
Fundraising 38
Donations and Sponsorship 39
Staff List 40
Financial Statements
and Report
Financial Overview 42
Financial Results 43
Appendices 72
Glossary 75
Calendar of Events 75
Index 76
Directory inside back cover

Overview: Year in Brief
Significant Events
➤ Andrews House extension officially
opened December (see pages 4, 31)
➤ Redeveloped Obstetrics Unit
completed September
(see pages 2, 28)
➤ Warragul Linen Service wins save
water! award (see pages 6, 36)
➤ Redevelopment of Community
Health and Community Mental
Health Service commences
February (see pages 2, 4)
➤ Eight Life Governors appointed
at Annual General Meeting
(see pages 13, 18)
➤ Podiatry and District Nursing
services commence in Trafalgar
(see pages 2, 4, 26)
➤ Murray to Moyne Cycle Relay raises
$22,000 for Community Health
(see pages 4, 33)
➤ Warragul Community Services
building receives a facelift
(see pages 3, 32)
➤ Andrews House receives Better
Practice Award for ‘Stretch it Out’
program (see pages 3, 5, 30, 31)
➤ Plans underway for development of
Community Rehabilitation Centre
under Cooinda Lodge (see pages 2, 4)
➤ New Central Batch Washing system
installed at Warragul Linen Service
(see pages 2, 4, 36)
➤ Cooinda Lodge and Andrews House
achieve three years accreditation
with Aged Care Standards Agency
(see pages 5, 31)
➤ West Gippsland Hospital and
Community Services Division
achieve ongoing accreditation
following periodic review
(see pages 2, 3, 5)
➤ Quality of Care Report awarded
Regional Distribution and Evaluation
Award by the Department of Human
Services (see pages 3, 5)
➤ Annual Report awarded Gold Award
at Australasian Reporting Awards for
fourth successive year (see pages 3, 5)
➤ Additional 75 WIES allocated and
Elective Surgery Access Coordinator
appointed as part of Rural Patient
Initiative (see pages 2, 4, 26)
➤ Continence team recognised at
national awards presented at
National Continence Conference
(see pages 3, 6, 32)
➤ Aged Care Services Plan launched
in December (see pages 2, 4)
➤ Eight Community Kitchens programs
commence across Baw Baw Shire
(see pages 2, 4, 32, 33)
➤ Donations and bequests for the year
total $361,000 (see pages 1, 4, 39)
2006 Year in Brief
Andrews House Principal
Care Libby Reeves (left)
and Director of Nursing
Anne Curtin (right)
welcome the first new
resident Roy Awty to
Andrews House following
the completion of the 20
bed high care extension.
2006 2005 % +/-
variance
FINANCIAL 000’s 000’s
Total Revenue $54,954 $54,179 3.51
Total Expenditure $54,644 $51,587 3.69
Operating Surplus $310 $1,989 (84.40)
Total Assets $51,745 $47,987 7.64
Total Liabilities $14,248 $12,141 0.13
Net Assets $37,497 $35,846 4.61
Total Equity $37,497 $35,846 4.61
STAFF
Equivalent Full Time 560.2 543.6 3.05
PERFORMANCE INDICATORS includes Unqualifieds*
Inpatients Treated:
Hospital: 10,371 10,342* 0.28
Nursing Home 111 132 (15.9)
Hostel 145 67 116.42
Average Length of Stay:
Hospital 2.7 2.9 (6.90)
Bed Days:
Hospital 29,532 29,738 (0.69)
Nursing Home 21,146 21,549 (1.87)
Hostel 15,788 10,878 45.14
Non-Admitted
Patient Services: 90,643 80,314 12.86
DONATIONS 000’s
Income $361 $276 30.6
1

Overview: At a glance
The Business Plan 2005/06 is a vital document which outlines the goals, progress and activity of the Group. It is closely monitored to ensure our goals
are reached and that future planning is put in place. Further detail can be found in the Year in Review section on pages 4-6.
Please refer to the Glossary on page 75 for abbreviations.
CONTINUUM
OF CARE
Key Result Areas
To provide a customer-focused, coordinated
and integrated approach in the delivery of
healthcare services
Strategies
1. Continue to develop innovative clinical programs
to assist with demand management
2. Continue involvement with Primary Care
Partnership and Better Health in Gippsland
project
3. Increase focus and coordination of population
health and health promotion
4. Monitor effectiveness of continuing care
into community
5. Participate in collaborative health care programs
LEADERSHIP AND
MANAGEMENT
To provide efficient and effective governance
and management that is reflective of the
organisation’s vision, mission and values
as outlined in the Business Plan resulting in
guidance, motivation and empowerment of staff
to manage decisions that directly affect their work
1. Improve access to policy and procedure
process across WGHG via LAN
2. Review management of aged care services
3. Develop strategic direction for 2006-2010
4. Continue capital development program
HUMAN RESOURCE
MANAGEMENT
To implement processes and planning that
ensure necessary staff who provide sustainable
high employee performance whilst recognising
the absolute necessity of providing a customer
focused service
1. Continue to build recruitment and retention
of staff support systems and services
2. Further strengthen learning culture at WGHG
3. Increase focus on education for general staff
4. Continue to ascertain customer and staff
satisfaction
Outcomes
1. Additional 75 WIES allocated and Elective
Surgery Access Coordinator appointed to
manage elective surgery waiting list; Podiatry
and District Nursing services clinic opened in
Trafalgar; Regional Director of Medical Services
appointed to assist with credentialling and
workforce planning and education
2. Executive staff on steering committees
for Working Parties for Better Health in
Gippsland Project and Gippsland Health
Services Partnership
3. Strategic Plan Brief for population health
planning developed
4. Continuum of Care upgraded from moderate
achievement to extensive achievement in
ACHS periodic review; Emergency patients
screened for falls risk and follow up; stroke
patients followed up in community by stroke
team; developing cardiac continuity of care
model; eight community kitchen programs
established across Baw Baw Shire; continuing
care into community focused in reviewed
Vision, Mission and Values Statement and
key strategic directions
5. Participated in Gippsland Regional Integrated
Cancer Services, Regional Palliative Care
consortia, regional Sub-acute Care project,
Better Health in Gippsland project, Health
Services Management Innovation Council,
Credentialling and Privileging Reference
Committee; Greater South Eastern Consortium
for Basic Physicians Training; awarded meals
on Wheels tender for Baw Baw Shire to July
2009; continuation of Aboriginal Best Start
Program
1. Help cards developed to assist staff to access
policies and procedures on the LAN; working
party continuing to develop strategies
2. Baw Baw Aged Care Service Plan completed
and launched in December 2005; WGHG
involved in Baw Baw Integrated Planning
Network to implement recommendations
3. Population health based strategic plan
develop in conjunction with LRH, CGHS
and BRHS
4. Midwifery and Gynaecology Unit completed,
HDU to be completed July 2006; Community
Health and Community Mental Health project
commenced in February; additional funding
received and expressions of interest called for
tenders for the Community Rehabilitation
Centre; WLS extension and installation of
Central Batch Washing system completed;
$125,000 funding received from DHS to
upgrade image intensifier
1. Staff support systems in place; strategies
implemented to manage anaesthetist vacancy;
additional training undertaken by Peer
Support Team; ongoing professional
development of Level C Obstetricians;
excellent staff participation in hospital ball,
Murray to Moyne Cycle Relay and Global
Corporate Challenge
2. Successful submission for development of
Clinical Studies Centre; Medical Education
Officer re-appointed to assist Hospital
Medical Officers
3. Eight WLS staff undertaking Certificate IV
in Front Line Management
4. Organisation Climate Survey conducted in
November; My Work Plan implemented
across Group; DHS Victorian Patient
Satisfaction Monitor completed
The health environment continues to change. At the Board planning day held in February, the Board adopted
the Group’s strategic direction for 2006/2007. The strategic direction incorporates the following three key
strategies:
● providing appropriate services to our community
● maintaining and developing infrastructure; and
● sustaining and strengthening our workforce.
Progress will be reported to the BOD in accordance with the Australian Council on Healthcare Standards
accreditation functions of Clinical, Support and Corporate. These changes will be reflected in our corporate
business plan for the 2006/2007 year.
2

Overview: At a glance
INFORMATION
MANAGEMENT
Key Result Areas
To develop information systems that provide
managers with necessary information on a
regular basis to enhance a customer focused
culture
SAFE PRACTICE
AND ENVIRONMENT
To provide processes, systems and design
facilities which ensure both the well being
and safety of customers and the optimum
use of all resources
IMPROVING
PERFORMANCE
To establish improving performance practices
within a recognised quality framework
Strategies
1. Improve user skills and competence of staff
using IT resources
2. Update WLS website to include customer
access to data
3. Continue implementing recommendations
from WGHG ICT strategy
4. Investigate opportunities to analyse clinical
costing data
1. Continue implementation of five year Infection
Control Plan
2. Monitor and review OH&S compliance
3. Enhance Risk Management program and
evaluate framework
4. Develop and implement Open Disclosure
process
5. Improve the work environment for staff
1. Continue to participate in accreditation
programs
2. Improve evaluation and compliance methods
for service delivery, legislation and standards
3. Participate in projects that improve the quality
of service
Outcomes
1. Continuation of IT forums and education
for staff; IT help desk maintained
2. WLS website developed and upgraded;
customer access software being developed
3. GHA involved in implementation of DHS
Healthsmart strategy
4. Clinical costing data analysed by Executive
and reported to BOD; elective surgery waiting
list data updated and reported to BOD
1. Hand hygiene products trialled and selected;
infection control upgraded from moderate
achievement to extensive achievement in ACHS
periodic review; surveillance program regularly
monitored in all departments
2. Contract Management Plan evaluated;
contractor management program updated
and compliant; contractor induction program
implemented
3. Risk Management Framework evaluated
and endorsed by Executive; DHS Credentialling
and Privileging Guidelines adopted by BOD
4. Open Disclosure policy adopted and
implemented; senior staff educated at
comprehensive Open Disclosure workshop
5. Warragul Community Services building
upgraded to improve staff safety and public
access
1. Annual Report and Quality of Care Report
recognized with industry awards; Aged Care
accreditation maintained; ACHS Periodic
Review successfully completed; WLS ISO audit
successfully completed
2. Software implemented to measure
compliance and results reported to BOD
3. Participated in PUPPS, National Medical Chart
trial, collaborative and known midwife care
models, Public Sector Residential Aged Care
Service quality indicators program, Dementia,
Pneumonia, Stroke, Open Disclosure, Victorian
Quality Council and Community Falls
Prevention projects; Health Promotion
planning day hosted by Community Services
Division; National Australian Community
Acquired Pneumonia project; Andrews House
‘Stretch It Out’ innovative walking program
awarded Best Practice in Aged Care Award;
Continence team received several awards at
National Conference; 92.4 compliance
achieved with DHS clinical cleaning standards
CLINICAL SUPPORT CORPORATE
KEY RESULT AREAS:
Continuum of Care ● Access ● Appropriateness
Effectiveness ● Patient Safety ● Consumer Focus
2006/2007 FUTURE DIRECTIONS:
● Re-establish the Community Advisory Council
● Continue to develop innovative clinical programs
and models of care to assist with demand
management
● Continue involvement in Primary Care Partnership
and Gippsland Health Service Partnership project
● Participate in projects to improve the quality of
service to patients, residents and clients
KEY RESULT AREAS:
Risk Management and Quality Improvement
Human Resource Management ● Research
Information Management ● Population Health
2006/2007 FUTURE DIRECTIONS:
● Undertake population based strategic plan for
WGHG in conjunction with other Gippsland health
services
● Implement Healthsmart ICT Strategy in conjunction
with GHA
● Further strengthen risk management program to
improve clinical and non-clinical performance
● Continue to build staff support systems and services
● Increase focus and co-ordination of population
health and health promotion activities
3
KEY RESULT AREAS:
Leadership and Management
Safe Practice and Governance
2006/2007 FUTURE DIRECTIONS:
● Review operational committees and develop
appropriate committee structure
● Continue capital development program
● Review clinical credentialling and scope of practice
● Implement Open Disclosure process
● Develop environmentally sustainable waste
management system

Overview: Year in Review
Continuum of Care
This year we continued our focus
on developing and implementing
innovative programs to improve
access and service to the community.
Examples of this include the opening
of the clinic at Trafalgar for District
Nursing and podiatry services,
establishment of community kitchens
across Baw Baw Shire focusing on
nutrition, socialising and wellbeing, the
extension of the Aboriginal Best Start
project into 2007, the development of
health promotion programs to achieve
a more population health approach
with the Health Promotion team
concentrating their efforts on
physical activity and nutrition.
It was pleasing to receive funding from
Department of Human Services under
the Rural Patient Initiatives program
to employ an Elective Surgery Access
Coordinator to assist in managing the
elective surgery waiting list as well
as being allocated 75 WIES to help
reduce elective surgery waiting lists.
The Baw Baw Aged Care Strategy
was launched by the Minister for
Aged Care Hon Gavin Jennings at
Andrews House in December. The
recommendations from this plan are
being followed up by Fairview Homes,
Mawarra, Baw Baw Shire and West
Gippsland Healthcare Group through
the Baw Baw Integrated Planning
Network.
West Gippsland Healthcare Group
continues to participate in a range of
regional activities to improve service
delivery across the Gippsland region.
These include regional integrated
cancer services, regional palliative
Board President Peter Marx
(right) and Baw Baw Shire
Council Mayor Ian Clark
(left) acknowledge the
partnership between the
Shire and the Group at
the official opening of
the Trafalgar Podiatry
and District Nursing clinic
operating out of the
Council’s Maternal and
Child Health Centre
watched by Group staff.
The work of our volunteers, auxiliaries and community
supporters continues to play a vital role
in our health service and our appreciation is extended
to them for their wonderful support.
care, sub-acute care planning and the
Gippsland Health Services Partnership
aims to improve the health status for
residents of Gippsland.
Leadership and Management
The extensive capital works program
continues as we improve the facilities
and infrastructure at West Gippsland
Healthcare Group.
In December 2005, the extension of
20 high care beds and renovations
to the existing 30 low care beds to
Andrews House was opened by the
Minister for Aged Care Hon Gavin
Jennings. The redevelopment of the
Midwifery and High Dependency Units
at West Gippsland Hospital continued.
This project, funded from capital
reserves at a cost of $3ml, is due for
completion in July 2006. The $6.2ml
project to purchase and redevelop
the Old Clothing Company site in
Gladstone Street, Warragul for
Community Health and Community
Mental Health commenced in early
2006 and is due for completion in
November 2006. The $1ml expansion
to Warragul Linen Service which
included extensions to the building,
installation of a second continuous
batch washer and over head rail
system was completed in November.
The Government has allocated
$3ml to develop the Community
Rehabilitation Centre under Cooinda
Lodge. Expressions of interest were
called in June for builders to tender
for this project.
The Warragul Linen Service was
successful in retaining the linen
tender for Southern Health for a
further three years with a further
two year option. This outcome allows
Warragul Linen Service to plan for
the future with more certainty and
confidence.
To assist the Board in monitoring
the overall performance of the Group
a suite of key performance indicators
have been developed that will assist
the Board with its responsibilities in
monitoring clinical governance and
risk management.
Financial Performance
The Group is pleased to report a
net surplus of $310,000 after the
inclusion of capital, depreciation and
amortisation. It should be noted that
the previous years net surplus was
significantly inflated due to the
inclusion of capital funds associated
with the building project at Andrews
House.
Total revenues of $53.1m. were
received during the year with $39.9m.
received through a range of DHS and
Commonwealth Department of Health
& Ageing activity-based grants and
block funded programs. The strong
revenue performance of our business
units, the Warragul Linen Service
and generous community donations
continue to underpin the Group’s
sound financial position.
The growth in expenditure was largely
attributable to increases associated
with industrial awards and increases
in costs of clinical consumable items
and services.
The Group completed the transition
to report in compliance with the
Australian equivalents to International
Finance Reporting Standards (A-IFRS)
and adoption of the DHS mandated
Chart of Accounts.
4

Overview: Year in Review
Human Resources
This year we said good bye to some
long serving senior staff and medical
staff. In April, Ron Clark retired as
Food Services Manager after 32 years
service, Haja Mohideen, Director of
Finance, resigned after seven years
of service and Dr Bill Straffon, who
has provided urology services to our
community for some 36 years retired
in April. Mrs Kathy Higgins was
appointed to replace Ron and Mr John
Anderson has been appointed Director
of Corporate Services, a position that
incorporates the Director of Finance
role. The Group is extremely grateful
to the contribution made by these
people.
By the Order of Governor in Council,
Mr Gary Blackwood, Ms Margaret
Robbins and Mr Peter Kingwill were
reappointed to the Board of Directors
together with a new director Mr Brian
Davey. All appointments are to
October 2008.
The Organisational Climate Survey
was completed in November 2005
and comments from the consultant
were:
“Overall we found a very “healthy”
organisation that is perceived by staff
as doing a good job in providing high
quality services. Most staff have an
environment they are happy with,
work they are satisfied with and feel
well trained to do. Staff continue to
strongly endorse the Group’s
approach and performance in the
vast majority of areas covered by the
survey. While the survey is strongly
positive in its results, there are some
issues for consideration as a result
of negative responses or responses
that may still be quite positive but
are indicating a downward trend
over time.”
Information Management
The Group received its fourth
consecutive Gold Award from
Australasian Reporting Awards
for the 2004/2005 Annual Report.
Our Quality of Care News was also
recognised by the Department of
Human Services at the Annual
Quality of Care Reporting Awards.
It is pleasing that our main two
publications are being recognised as
excellent publications to help keep
our key stakeholders informed.
Through the Gippsland Health
Alliance, the Group is actively involved
in implementing the Department of
Human Services HealthSmart Strategy
that will see a range of products
selected to deliver specific functionality
for use across Victorian Public Health
Services for finance, human resources,
patient and client management and
clinical systems. The introduction of
these new products will be challenging
and require a significant commitment
of resources to achieve expected
outcomes.
Safe Practice and Environment
This year has seen the continued
focus on our Risk Management
program with the evaluation of our
current framework completed and
actions in place that will help the
ongoing development and
improvements in risk management
strategies.
To assist with emergency procedure
training for casual and part time
employees, a work book has been
developed as a distance education tool
and this was introduced in December.
The focus on infection control
continues as we participate in the
Victorian Quality Council Hand
Hygiene project. This project aims to
demonstrate a sustained reduction in
rates of nosocomial infection through
improved hand hygiene compliance.
Involvement with the Open Disclosure
project continues with the policy
5
(L-R) WLS Manager
Bill Crotty, staff members
Bruce Warren and
Nanette Gilligan with
CEO Ormond Pearson at
the save water! Awards.
developed, implemented and
supported by staff training.
Executive and some senior staff have
participated in Control a Multi Agency
Emergency Situation, and Incident
Control Systems training program to
improve our preparedness in event of
a major emergency.
Our Occupational Health and Safety
Coordinator, Brian Lemon, and
Nursing Coordinator, Joyce Williams,
participated in the Department of
Human Resources Region 5 Division 3
(West Gippsland) Health and Medical
Sub Committees set up to review
Department of Human Services
Medical Displan and develop the
Gippsland Regional Health and
Medical Emergency Plans.
The Occupational Health and Safety
Committee, with representation across
the Group, monitors safety compliance
and puts suggestions forward to
improve safety for patients, residents,
clients and staff.
Improving Performance
Our performance has been recognised
with ongoing accreditation for all
services. In September 2005, our
aged care facilities Cooinda Lodge
and Andrews House achieved
compliance with the 44 Aged Care
Standards and Andrews House
received a Better Practice in Aged
Care Award for its innovative walking
program – “Stretch It Out”.
West Gippsland Hospital and
Community Services Division ACHS
Periodic Review was held in October,
nine of the 19 mandatory criteria
being surveyed were upgraded from

Overview: Year in Review
MA (moderate achievement) to EA
(extensive achievement).
The Warragul Linen Service six
monthly audit of its AS/NZS ISO
9001:2000 Quality Management
System was successfully conducted in
June with the external auditors noting
the maturity of the quality system that
is well implemented in the Linen
Service as part of normal operations.
The Warragul Linen Service was a
finalist and joint winner of the Service
Provider Category in the Save Water
Awards which celebrates sustainable
water use.
Our Continence team were recognised
at the 14th National Conference on
Incontinence with staff being awarded
for their commitment, good practice
and promotion of this service.
The organisational commitment to
continuous improvement across the
Group and participation in a number
of quality improvement initiatives is
vital to the ongoing success of West
Gippsland Healthcare Group.
Obituaries
It is with great sadness that we note
the passing of:
Tess Harper – Drouin Auxiliary
volunteer, Fran Bickerton – Drouin
Auxiliary volunteer and Life Governor,
Dr Bill Morrison – Obstetrician and
Gynaecologist who gave 36 years
service to WGHG and our community,
Sheila Murnane – WGH Past Nursing
Graduate, Ossie Mills – Trafalgar and
District Community Opportunity Shop
and Glenda Thomson – Cooinda
Lodge staff member. Our thoughts
and sympathy are extended to their
families.
Acknowledgements
The 2005/2006 financial year has
been a positive and successful year for
the Group in achieving agreed targets,
budgets and business objectives.
We recognise the skilful, diligent
and energetic work of our Board of
Directors, Executive Management
Team, all members of staff and
medical practitioners who all
contribute to our success.
The work of our volunteers, auxiliaries
and community supporters continues
to play a vital role in our health
service and our appreciation is
extended to them for their
wonderful support.
The contribution of Department of
Human Services, Baw Baw Shire and
local politicians Ian Maxfield and
Russell Broadbent MP is recognised
and appreciated as they continue to
work constructively with the Group.
Thank you to all the friends of West
Gippsland Healthcare Group who
contribute time, money and skill
to improve our health service.
Outlook
At the Board Planning Day held in
February, the Board adopted a new
Vision and Mission for West Gippsland
Healthcare Group for the coming year.
That Vision is “To improve the health
and wellbeing of our community”. The
Mission of West Gippsland Healthcare
Group is “West Gippsland Healthcare
Group is committed to the provision
of high quality, integrated healthcare
which meets the changing needs of
individuals and our community”.
This is supported by three key
strategic directions:
1. To provide appropriate services
to our community
2. To maintain and develop our
infrastructure
3. To sustain and strengthen our
workforce.
Our focus will be on the health of
the population as West Gippsland
Healthcare Group increases the
emphasis on health prevention
and health promotion to improve
the health status of our community.
Part of this process will involve
development of a Population
Health Based Strategic Plan for
West Gippsland Healthcare Group in
partnership with Latrobe Regional
Hospital, Central Gippsland Health
Service and Bairnsdale Regional
Health Service that will give an
overall plan for the four major
health services in Gippsland.
The Department of Human Services
Gippsland Region will also be doing
area based planning which will
complement our strategic planning
process.
With good planning, service
integration and coordination, West
Gippsland Healthcare Group can
contribute to improving health
services for Baw Baw Shire and
the whole of Gippsland.
Ormond Pearson
Chief Executive Officer
At the official launch of
the Baw Baw Aged Services
Plan in December are
(L-R) Mawarra CEO
Gordon Jamieson,
DHS Aged Care Manager
Louise Ryan, Fairview CEO
Vicki May, WGHG CEO
Ormond Pearson and Baw
Baw Shire Council Mayor
Ian Clark.
Peter Marx
President
6

Overview: Our Profile
What we do
Hospital (acute)
Anaesthesia
Audiology
Breast Surgery
Cardiology
Day Surgery
Dental Surgery
Diabetes Education
Ear Nose and Throat
Emergency
Endoscopy
General and Specialist Medicine
General Practice
General Surgery
Haemodialysis
High Dependency
Midwifery
Neurology
Obstetrics/Gynaecology
Oncology
Opthamology
Orthopaedic Surgery
Paediatrics
Plastic Surgery
Pre-Admission Clinic
Psychiatry
Rheumatology
Stomal Therapy
Urology and Urodynamics
Sub-acute
Cognitive Memory and Dementia
Service (CDAMS)
Community Rehabilitation Centre
Continence
GEM
Interim Care
Palliative Care
Post Acute Care
Respite Care
Aged Care
Aged Care Assessment
Andrews House Hostel/Nursing
Home
Cooinda Lodge Nursing Home
HACC
Respite Care
Community Health Services
Aboriginal Liaison
Adolescent Health
Aged and Disability Support
Asthma Education
Bereavement Support
Community Health Nursing
Counselling
Diabetes Education
Emergency Relief
Falls Prevention
Family Counselling
Health Promotion/Education
Rural Allied Health Service
Self Help and Support Group
Facilitation
Women’s and Men’s Health
Youth Services
Allied Health
Cardiac Rehabilitation
Cardio-pulmonary Rehabilitation
Diabetes
Nutrition and Dietetics
Occupational Therapy
Pharmacy
Physiotherapy
Podiatry
Social Work
Speech Pathology
Who we are
Home Nursing Service
District Nursing Service
Hospital in the Home
Palliative Care Nursing/Volunteers
Support Services
Administration
Clinical Effectiveness Unit
Finance
Food Services
Hotel and Engineering Services
Infection Control
Information Technology
Library
Occupational Health and Safety
Payroll
Public Relations
Quality & Customer Services
Staff Development Unit
Supply
Business Units
Consulting Suites
Meals on Wheels
Salary Packaging
Warragul Linen Service
Diagnostic Services
(Contract Services)
BreastScreen
Endoscopy
Lung Function Testing
Medical Imaging
Pathology
West Gippsland Healthcare Group is a Victorian public sector organisation incorporated under the Health
Services Act 1988.
1888 The community establishes a hospital on land donated by Mary Sargeant to service the area
between Melbourne and Sale
1895 Warragul District Hospital completed
1908 Warragul District Hospital officially opened
1924 The Board of Management changed the name to West Gippsland Hospital (WGH) in recognition
of the wider area serviced
1934 The original wooden hospital building redeveloped
1939 The Foundation stone of the new brick hospital we see today was laid by Mr Dunstan
1940 The new hospital opened by Sir Winston Duggan
1970 Eastern extensions to the hospital opened. The hospital now has 144 beds
1978 Stage 1 of Cooinda Lodge nursing home built, accommodating 28 residents
1986 Stage 2 of Cooinda Lodge added, accommodating 56 residents
The Warragul Linen Service moved into purpose-built premises in Ley Street behind the hospital
1996 A Community Services centre was established in the township of Warragul
Stage 1 Redevelopment of West Gippsland Hospital completed
1997 The various health services provided across the community are brought together under the
umbrella name of West Gippsland Healthcare Group (WGHG)
Rawson Community Health Centre incorporated into WGHG
Andrews House hostel opens, accommodating 30 residents
1998 Baw Baw Health and Community Care Centre opens in Drouin, a joint venture with the Shire
of Baw Baw
2001 Stage 2 Redevelopment of West Gippsland Hospital officially opened
2003 Work begins on additional 20 beds for Andrews House in Trafalgar
2004 Stage 3 Redevelopment of WGH commenced incorporating High Dependency and Midwifery Units
2005 Extensions to Andrews House in Trafalgar completed, now accommodating 30 low care
and 20 high care residents
2006 Development of community health and community mental health centre commenced
Queen Street Community Services building redeveloped
Extensions to Warragul Linen Service completed to accommodate new central batch
washing system
7

Overview: Overall Performance
% Target achieved
120
100
80
60
40
20
0
Health Service Agreement
A Health Service Agreement is
negotiated between West Gippsland
Healthcare Group and the Department
of Human Services. Conditions of
funding, with an emphasis on targets
for planned growth and payment
according to performance of agreed
services, are incorporated into the
Health Services Agreement document
and performance against those targets
is measured.
Key Performance Results 2006
10,371
Separations
29,532
Bed Days
87.1
Occupancy
2,943
Operations
14,949
Emergency
Attendances
For the second consecutive year, performance
was closely matched to targets.
Revenue Indicators (Collection Days)
2006 2005 % +/-
variance
Inpatients Treated: Hospital 10,371 10,342 0.28%
Inpatients Treated: Nursing Home 111 132 (15.91%)
Inpatients Treated: Hostel 145 67 116.42%
Average Length of Stay: Hospital 2.7 2.9 (6.10%)
Bed Days: Hospital 29,532 29,738 (0.69%)
Bed Days: Nursing Home 21,146 21,549 (1.87%)
Bed Days: Hostel 15,788 10,878 45.14%
Non-Admitted Patient Services 90,643 80,314 12.86%
INPATIENT STATISTICS
Inpatients Treated 10,371 10,342 0.28%
Average Complexity 0.6566 0.6605 (0.59%)
Complexity Adjusted Inpatients (WIES) 6,702 6,739 (0.54%)
Length of Stay (days) 2.7 2.9 (6.90%)
Inpatient bed days total 29,532 29,738 (0.69%)
Palliative Care bed days 566 637 (11.15%)
GEM Bed days 1,051 972 8.13%
Interim Care Bed days 635 719 (11.68%)
HITH bed days 2,757 2,597 6.16%
Number of Operations 2,943 3,107 (5.28%)
Number of Births 696 684 1.75%
Number on Waiting List 619 580 6.72%
NURSING HOME STATISTICS
Residents accommodated 111 132 (15.91%)
Resident bed days 21,146 21,549 (1.87%)
Occupancy 96.56% 98.40% (1.87%)
HOSTEL STATISTICS
2006 Performance Statistics
Residents accommodated 145 67 116.42%
Resident bed days 15,788 10,878 45.14%
Occupancy 95.51% 99.34% (3.86%)
2005
EMERGENCY STATISTICS
80
2006
Emergency Treatments 14,949 15,074 (0.83%)
60
40
20
0
22.45
Private
Inpatient Fees
58.8
32.54
WorkCover
Inpatient Fees
63.10
26.62
Nursing
Home
31.35
21.57
Hostel
33.10
OUTPATIENT SERVICES
Occupational Therapy attendances 757 701 7.99%
Physiotherapy attendances 2,595 1,861 39.44%
Speech Pathology attendances 512 520 (1.54%)
Pharmacy attendances 3,524 3,648 (3.40%)
COMMUNITY SERVICES
Community Health 5,230 4,603 13.62%
Rural Allied Health 2,445 2,383 2.60%
Health Promotion sessions 1,891 2,133 (11.35%)
Palliative Care Visits 4,661 2,215 110.43%
Community Rehab. attendances 3,343 3,496 (4.38)%
District Nursing Visits 21,738 19,433 11.86%
Meals on Wheels provided 26,409 24,255 8.88%
Koori Liaison attendances 184 358 (48.60%)
8

Overview: Overall Performance
Expenditure by Category ($’000)
5 Year WIES Comparison
6M
5M
4M
3M
2M
1M
0M
Employee
Benefits 36,247
2,753
Fee for Service
Medical Officers
5,627
Administrative
Expenses
4,986
Supplies and
Consumables
2,769
Depreciation and
Amortisation
839
Fuel, Light
and Power
843
Repairs and
Maintenance
581
Patient Transport
WIES
6800
6600
6400
6200
6000
5800
5600
5400
5200
5000
EXCESS = 55 $123,420
2005/
06
Actual WIES
EXCESS = 118 $264,792
2004/
05
EXCESS = 135 $317,570
2003/
04
FINANCIAL YEAR
EXCESS = 285 $819,060
Target WIES
2002/
03
EXCESS = 340 $1,004,960
2001/
02
WGHG exceeded its
target public/private
WIES set by the
Department of
Human Services by
55. This represents
$123,420 in lost
revenue. Over the
past five years,
WGHG has
exceeded its target
by 933 WIES which
at current funding
rates equates to
$2,529,802 in lost
revenue.
Separations by Top 10 Major Diagnostic Category 2006
2000
1600
1,959
1200
800
400
0
675
Renal Dialysis
585
Chemotherapy
424
Neonatal
vaginal
Delivery
152
Dental Extractions
123
Red Blood cell
Disorders
113
Skin/Subcutaneous
Tissue
102
Lymphoma/N-A
Leukaemia
90
Caesarean
Delivery
90
Uterine and
Adnexa Procedures
5 Year Financial Comparison
55,000
50,000
45,000
2006
2005 2004 2003 2002
40,000
35,000
30,000
$000’s
25,000
20,000
15,000
10,000
5,000
0
Total Revenue Total Expenditure Operating Surplus Total Assets Total Liabilities Net Assets
Total Equity
The Group recorded a surplus of $310,010 against a budgeted deficit of $902,565. The favourable variance is due largely to the receipt of capital works
project grants, primary health funding (the expenditure to which is yet to be spent) and continued support from the community by way of donations.
9

Overview: Key Performance Indicators
The Group keeps statistics on a wide-ranging basis
coveringmany fields of operation across all WGHG sites.
These help us in many ways as they are evidence of what
we are doing. They help us to:
➤ see trends so that we can tailor our programs to the needs
of our community
➤ determine the rate at which services are growing/decreasing
➤ manage our finances so that we can effectively
and accurately stay within budget
➤ report accurately to the Department of Human Services
about the activity of the Group
➤ decide the best way to run our operations
12
10
8
6
4
2
0
Inpatients Treated
10,371
10,342
10,432
10,405
10,025
Number on the Waiting List
900
750
600
450
613
587
587
666
631
Total EFT
300
150
2006
2005
2006
2005
2004
2003
2002
Comment: The number of inpatients treated has remained
steady over the past five years.
600
400
547.0
543.6
529.5
532.3
515.7
0
200
2004
2003
2002
0
Comment: Implementation of strategies by the recently
appointed Elective Surgery Access Coordinator resulted
in a significant decrease in the waiting list throughout
the year.
2006
2005
Comment: WGHG now has 975 staff in total that make
up 547 equivalent full-time positions (EFT).
2004
2003
2002
Government Grants
40
35
30
25
20
40,929
39,762
34,871
31,349
27,749
900
750
600
Warragul Linen Service Income $’000
8,550
8,774
8,706
8,226
7,940
15
450
0
300
2006
2005
2004
2003
2002
150
Comment: Government grants for 2005 and 2006
include Commonwealth RAC subsidies. In previous years,
these subsidies were disclosed as patient fees.
0
2006
2005
Comment: Innovative systems development and proactive
business strategies continue to contribute to the success of
the Warragul Linen Service.
2004
2003
2002
10

Overview: Overall Performance
Debtors outstanding as at 30 June 2006
Under 31-60 61-90 Over Total Total
30 days days days 90 days 2006 2005
Private Inpatients 2,466 754 0 0 3,220 744
Common Law 0 0 0 0 0 444
Nursing Home Type 0 0 0 0 0 2,436
Ineligible 0 0 0 1,002 1,002 1,002
WorkCover 0 1,704 0 0 1,704 9,685
Total Inpatient Debtors 2,466 2,458 0 1,002 5,926 14,311
Nursing Home 35,720 3,478 273 0 39,471 66,519
Hostel 25,995 6,737 1,027 0 33,759 28,757
64,181 12,673 1,300 1,002 79,156 109,588
Access
Non Admitted Patients 2006 2005
1. Elective Surgery performance
Category 1 proportion of patients admitted within 30 days 100% 100%
Category 2 proportion of patients admitted within 90 days 74% 77.64%
Average waiting time of category 2 patients 80 days 103 days
Total waiting list as at end of June 619 587
2. Emergency data
2a. Triage performance over 12 months
Category 1 patients receiving immediate attention 100% 100%
Category 2 patients receiving immediate attention within 10 minutes 83% 89%
Category 3 patients receiving immediate attention within 30 minutes 68% 79%
2b. % of patients requiring admission who are admitted within 12 hours 79% 85%
Access
Admitted Patients Acute Sub-Acute Total
Separations
Same Day 5,013 5,013
Multi Day 5,194 164 5,358
Total Separations 10,207 16410,371
Emergency 2,857 44 2,901
Elective 5,808 120 5,928
Other including Maternity 1,542 0 1,542
Total Separations 10,207 16410,371
Public Separations 9,713 148 9,861
Total WIES 6,702
Separations per available bed 128 23 151
Total Bed Days 27,208 2,32429,532
*NB: these figures include unqualifieds
Access
Non-Admitted Patients
Total
Emergency Department presentations 14,949
Outpatient Services - occasions of service 7,388
Total occasions of service 22,337
11

Overview: Overall Performance
Financial Analysis of Operating Revenues and Expenditures
2006 2005
($’000) ($’000)
REVENUES
SERVICES SUPPORTED BY HEALTH SERVICE AGREEMENT
Recurrent Government Grants 38,634 36,344
Indirect Contributions by Human Services 1,262 1,012
Patient Fees 1,588 1,546
Other Revenue 530 710
42,014 39,613
SERVICES SUPPORTED BY HOSPITAL AND COMMUNITY INITIATIVES
Interest 535 600
Business Units 1,329 1,253
Linen Service 8,850 8,774
Other Revenue 450 507
11,164 11,134
53,177 50,747
EXPENSES
SERVICES SUPPORTED BY HEALTH SERVICE AGREEMENT
Employee Entitlements 29,573 27,037
Fee for Service Medical Officers 2,753 3,056
Supplies and Consumables 4,565 4,262
Other Expenses 6,542 6,417
43,433 40,771
SERVICES SUPPORTED BY HOSPITAL AND COMMUNITY INITIATIVES
Employee Entitlements 6,674 6,572
Fee for Service Medical Officers 11
Supplies and Consumables 421372
Other Expenses 1,236 1,361
8,332 8,316
51,764 49,088
SURPLUS FOR THE YEAR BEFORE CAPITAL PURPOSE
INCOME, DEPRECIATION, AMORTISATION AND
SPECIFIC REVENUES AND EXPENSES 1,414 1,659
Capital Purpose Income 1,777 2,921
Assets Provided Free of Charge 16
Depreciation and Amortisation (2,769) (2,607)
Expenditure Using Capital Purpose Income (112)
NET SURPLUS 310 1,989
12

Corporate Governance: Board of Directors
The Board is accountable to the
Government and the community it
serves for ensuring the provision of
agreed services within the resources
provided. The Board must be
responsive to the staff and the
community and have a capacity
to address a wide range of policy
and planning issues. The Board of
Directors needs to have a range
of appropriate experience and skills.
The Board adheres to governance
policies that outline the role and
responsibility as Directors.
The functions of the Board of
Directors as determined by the
Health Services Act 1988 are:
➤ to oversee and manage the Group
and
➤ to ensure the services provided
by the Group comply with the
requirements of the Act and
the aims of the Group.
There are 12 Board of Director
positions, with the terms of four
members expiring on 31 October
each year. Board members are
appointed for three-year terms.
Members of the Board serve in a
voluntary capacity. In October 2006
the appointed terms of Peter Marx,
Rosemary Waghorne, John Anderson
and Daniel Gleeson will expire.
Governance by the Board of Directors
is achieved through:
➤ strategic planning - to ensure the
visionary direction of the Group is
focused and aligned to the mission
statement of the Group
➤ effective management by the Chief
Executive Officer (CEO) - the Board
performs an annual performance
appraisal and sets realistic goals;
the CEO is responsible for
managing the Group at an
operational level
➤ funding of service agreements -
the Board endorses plans, strategies
and budgets and ensures annual
agreements reflect accurate,
achievable and desirable outcomes;
the Board monitors the
performance of the Group through
appropriate budgetary processes
➤ local policy setting
➤ regularly reviewing the Group’s
By-Laws and strategic plans
Audit
The committee receives and makes
recommendations relating to internal
audit reports and ensures compliance
to matters raised by the Auditor
General’s office.
Meetings held: 4
Credentials*
The Credentials committee is
responsible for defining the clinical
privileges of all medical practitioners
(other that Hospital Medical Officers)
working within the Group.
Meetings held: 1
Ethics
The committee develops draft policies
and procedures relating to ethical
decision-making, advises the Board
on research projects, ensures that
the rights of individual patients are
respected and advises on all ethical
matters referred by the Board,
healthcare providers, patients,
their relatives or any other person.
Meetings held: 6
Executive*
The Executive committee has the
authority of the Board to act on
its behalf between Board meetings
provided that all decisions taken
which relate to policy are referred
to the next meeting of the Board.
The committee consists of the Board
President, Senior Vice-President,
Junior Vice-President and Treasurer,
with the Chief Executive Officer in
attendance.
Meetings held: 0
Board Committees
Medical Advisory & Consultative*
The committee recommends to the
Board the appointment of medical
practitioners in relation to visiting
rights within the Group and acts on
advice of the Credentials committee.
It considers matters referred by the
Medical Staff Association and forms
an interview committee for senior
medical appointments.
Meetings held: 1
Project Control
This committee oversees the design
and construction phases of major
building projects to ensure that work
is undertaken cost effectively, with a
view to minimising unnecessary capital
expenditure and recurrent costs.
Meetings held: 10
Remuneration
The Remuneration committee reviews
the performance and remuneration of
the Chief Executive Officer.
Meetings held: 1
Standards
The Standards committee provides
support and direction to quality
improvement performance monitoring
throughout the organisation.
Meetings held: 6
*meets only as required
Life Governors
The Board is responsible for
appointing Life Governors.
Appointments are made to people
who have shown outstanding
commitment to the Group. Awards
are also given to staff who reach
30 years of Long Service. Life
Governor Awards are presented at
the Group’s Annual General Meeting
in October each year. A photo of those
who gained Life Governor Awards can
be found on page 18 of this report.
The Group is governed by a 12-person Board appointed
by the Governor-in-Council upon the recommendation
of the Minister for Health, The Hon Bronwyn Pike, MP.
13

Corporate Governance: Board of Directors
Note: Eleven Board meetings were held during the year
John Anderson CertEDP MACS
Senior Marketing
Manager/Company Director
Committee member since
November 1994
Board meetings attended – 3 (27%)
Gary Blackwood
Executive Officer
Committee member since
November 1997
Senior Vice-President
Member of: Board Executive,
Medical Consultative, Advisory &
Remuneration, Standards committee
Board meetings attended – 7 (64%)
Brian Davey
BA DipEd
Management Consultant
Committee member since
November 2005
Board meetings attended – 7 (100%)
Tracel Devereux
BA GradDipHumanServicesAdmin MBA
Chief Executive Officer
Committee member since
November 2000
Member of: Ethics committee
Board meetings attended – 4 (67%)
Daniel Gleeson
Business Manager
Committee member since
November 2004
Board meetings attended – 7 (64%)
John Davine BComm LLB
Solicitor
Committee member since
November 1998
Junior Vice-President
Member of: Board Executive, Medical
Consultative, Advisory & Remuneration,
Project Control committee
Board meetings attended – 9 (82%)
Peter Kingwill BEng MACS, FGCLP, FAICD
Company Director
Committee member since
November 2002
Member of: Audit committee
Board meetings attended – 9 (82%)
Peter Marx
AssocDipSurveying AssocDipCartography
Licensed Land Surveyor
Committee member since
November 1996
President
Member of: Board Executive,
Medical Consultative, Advisory &
Remuneration, Project Control committee
Board meetings attended – 11 (100%)
Joanne Nowotny RN LLB
Solicitor
Committee member since
November 2000
Member of: Standards committee
Board Meeting attended – 10 (91%)
Margaret Robbins BEd(AdultEd) TITC
University Lecturer
Committee member since
November 1994
Member of: Standards committee
Board meetings attended – 9 (82%)
Duncan Smith
DipBus(ACCT) FCPA FTIA AAIM CFP
Accountant/Certified
Financial Planner
Committee member since June 1998
Treasurer
Member of: Board Executive,
Remuneration & Audit committee
Board meetings attended – 9 (82%)
Rosemary Waghorne BSc
Manager Compliance
and Strategic Planning
Committee member since
November 2004
Member of: Audit committee
Board meetings attended – 10 (91%)
14

Corporate Governance: Organisation Chart
Elective Surgery Access
Coordinator
Medical Imaging
Pharmacy
Endoscopy
Customers
Community
Advisory
Council
Director of
Medical
Services
Hospital Medical Officers
Diagnostic (Contracts)
Allied Health
Health Information Services
Visiting Medical Staff
Pathology
Nutrition and Dietetics
Occupational Therapy
Physiotherapy
Speech Therapy
Social Work
Board
Committees
District Nursing Services
Reception
Board of
Directors
Chief
Executive
Officer
Director of
Nursing
Patient Services Manager
Associate Director of Nursing
Hospital in the Home
Infection Control
Interim Care
Acute Care
Bed Management
Clinical Nurse Consultants
Human Resources - Nursing
Operational
Committees
Library
Palliative Care
Projects
Diabetes
Aged Care Manager
Residential Aged Care
Post Acute Care
Staff Development
Aboriginal Liaison
Aboriginal Best Start
Program
Director of
Community
Services
Community-based Services
Cognitive Dementia and
Memory Service
Community Falls Prevention
Program
Director of
Finance
Consulting Suites
Salary Packaging
Supply
Finance
Payroll
Community Health Program
Continence Service
General
Manager
WLS
Warragul Linen Service (WLS)
Family Counselling
Home and Community
Care Services
Youth Services
Administration
Customer Services and Quality
Engineering Services
Environmental Services
Food Services
Information Systems
Occupational Health & Safety
Public Relations
15

Our People: Executive Staff
Ormond Pearson BHSc(Mgt) AFCHSE CHE PNA FAIM FAICD
Chief Executive Officer
Mr Pearson commenced in July 1998. Prior to this he was the CEO
of the Colac Community Health Service, having been in the health
industry for 25 years.
Ormond Pearson
Haja Mohideen CPA ACMA(UK) GradDip(AppInfSys)
Director of Finance
Mr Mohideen joined the Group in February 1999. Before this he worked
at PANCH/The Northern Hospital for six years as Director of Finance.
Haja Mohideen
Dr Simon Fraser MBBS FRACP MPPM MRACMA
Director of Medical Services
Dr Fraser was previously a Neonatal Paediatrician at the Mercy Hospital
for Women in Melbourne. He has a strong interest and experience in
Quality and Safety and is working with the Group on a part time basis.
Dr Simon Fraser
Anne Curtin RN RM CorCareCert GradDipHSM MRCNA
Director of Nursing
Ms Curtin has managed and given leadership to the Nursing services
since August 1996 and has had extensive executive management
experience in the health industry for the past 24 years.
Anne Curtin
Linda McCoy BA GradDipMgt AFCHSE CHE AIMM
Director of Community Services
Ms McCoy commenced in July 1999 and has worked extensively in the
Community Health services in rural and regional areas for the past 15
years. She is currently a member of the Community Health Victoria Council,
working on a number of portfolios including Clinical Risk Management.
Linda McCoy
William Crotty ANIA
General Manager Warragul Linen Service
Mr Crotty has managed the Linen Service since 1994 having been
in the industry for 22 years. Mr Crotty is President of the Australian
Hospital Laundry and Linen Service Manager’s Association.
William Crotty
16

Our People: Occupational Health and Safety
Occupational Health and Safety
OH&S Staff Training and Education
To improve staff access to emergency
training, an on-line and distance
education package covering fire
and safety and manual handling
was developed and implemented.
This allows staff who are unable to
attend scheduled training times, to
complete the theory component at a
time suitable to them. This has
significantly increased the number of
staff completing training. Emergency
Department staff are regularly updated
in chemical, biological and radiation
incident preparedness to equip them
with the skill to use protective
contamination suits and manage
adverse events.
Communicating OH&S Issues to Staff
OH&S Committee meeting minutes are
on the Local Area Network (LAN) and
the staff noticeboard. A monthly OH&S
safety article is published in The
Beacon staff newsletter.
OH&S Management
Framework Model
WGHG manages OH&S performance
compliance in accordance with the
Department of Human Services
management framework. Ongoing
monitoring of the fifteen elements
of the model identifies opportunities
for improving performance. WGHG
accesses on-line OH&S resources via
a health industry website. This
provides streamlined and standardised
information, policies and procedures
across the health sector.
Innovative education resources developed ensure all staff have
access to training in OH&S practices. We are committed to
providing a safe environment for our staff, visitors and clients.
Contractor Management
All contractors visiting WGHG to
undertake maintenance and repairs
undergo the contractor management
orientation program. The program
ensures staff and contractors
understand their obligation in relation
to OH&S procedures when undertaking
work. Once successful orientation has
been achieved, contractors are issued
with a permit to work. This process is
managed by the Engineering
department.
Hazard/Risk Management
OH&S risks have been incorporated
into the organisational Risk register. A
risk management instruction manual
has been developed with staff trained in
procedures. As a result, incidents of
reporting risks by staff shows
improvement. Lessons learnt from
incident investigations are
communicated to staff across the
organisation using the Risk
Management register to report
outcomes to the OH&S committee.
An Environment Protection Authority
asbestos audit conducted across all
Community Services sites reported
no risk of asbestos exposure.
WorkCover
The Group has a proactive approach
in helping return injured employees to
work.
The number of claims this year is 25
compared to 21 claims last year, an
increase of 23.5%. As demonstrated
in the graph below showing the
number of WorkCover claims, the
Warragul Linen Service had seven
above threshold claims. These claims
included three serious injuries
increasing hours lost this year by
60%. In line with regular OH&S risk
assessment processes, the WLS has
an ongoing policy of reviewing and
updating work practices where
necessary.
Of the 12 claims at West Gippsland
Hospital, eight are Below Threshold.
Above Threshold claims increased by
two. The Community Services division
had no claims. A good result.
Emergency Department staff are regularly
updated in chemical, biological and radiation
incident preparedness to manage adverse
events.
Number of WorkCover claims
WorkCover claims - hours lost
Below Threshold Hospital
Above Threshold Linen Service
6000
Hospital
Andrews House
Above Threshold Hospital
Below Threshold Linen Service
Below Threshold Andrews House
Above Threshold Andrews House
5000
Linen Service
Community Services
10
8
Below Threshold Community Services
Above Threshold Community Services
4000
3000
6
4
2
2000
1000
0
0
June 2004 June 2005 June 2006
June 2004 June 2005 June 2006
The Community Services division had no claims this year.
17

Our People: Our Staff
Equal Employment Opportunity (EEO)
The Group is committed to providing a safe workplace for all
employees. Policies on bullying and harassment and violence
and aggression are being reviewed and will be implemented
early in 2006. Education sessions for managers and staff will
be conducted.
Work Experience
The Group recognises the importance of assisting secondary
and tertiary students with work experience. Links with six
local schools and a number of tertiary institutions provide
an opportunity for students to experience work across a range
of occupations.
Long Service
West Gippsland Healthcare Group recognises staff are our
greatest asset. We acknowledge their dedication and
commitment. Long Service Certificates and badges are
presented annually at the Annual General Meeting.
This year Long Service Awards were awarded to:
30 years
➤ Stella Christian ➤ Valerie Glen ➤ James White
25 years
➤ Janice Ashby ➤ Wilma Brown ➤ Mary Gleeson ➤ Joan Keeble
➤ Alan Lowe ➤ Leesa Ryrie ➤ Helen Tink ➤ Alice Wells
20 years
➤ Vicky Ballantyne ➤ Judy Barczyk ➤ Sheree Blum
➤ Jean Cameron ➤ Amanda Cropley ➤ Susan Gleeson
➤ Wendy Harder ➤ Meredith Henry ➤ Terry Lindsey
➤ Faye Marthick ➤ Claire Osterlund ➤ Maxine Pennington
➤ Bev Purcell ➤ Yvonne Rowe
Receiving Life Governor awards at the Annual General
Meeting in October are (back row L-R) Heartbeat Secretary
Doug Clark, staff member James White, Mr John Blyth, WGH
Drouin Auxiliary volunteer Ian Mallows, Heartbeat President
Malcolm Porter (front row L-R) Heartbeat Treasurer Lorraine Price
and staff members Stella Christian and Valerie Glen.
15 years
➤ Leanne Ashley ➤ Kathryn Bailey ➤ Patricia Blair
➤ Jenine Bowering ➤ Anny Byrne ➤ Suzanne Colby
➤ Debra Dore ➤ Lorraine Fleming ➤ Joy Fogarty
➤ Valerie Forsyth ➤ Christine Haasz ➤ Lynn Harkess
➤ Diane Haysom ➤ Julie Hume ➤ Kathleen Jarred
➤ Colleen Lacorcia ➤ Mary McMahon ➤ Mandy Miles
➤ Gracie Nelson ➤ Patricia Nobelius
➤ Merissa Price-Leggett ➤ Joanna Reekie
➤ Jenny Smethurst ➤ Sofia Walker ➤ Margaret Winter
Employment statistics
LABOUR CATEGORY
Nursing Services
Hotel and Allied Services
Administration and Clerical
Medical Support Services
Hospital Medical Officers
Medical
Warragul Linen Service
Total
TOTAL NUMBER OF STAFF EMPLOYED
EQUIVALENT FULL TIME STAFF
MALE % FEMALE % TOTAL 2006 2005
14 3.4 400 96.6 414 219.5 211.4
29 25.4 85 74.6 114 83.0 79.4
14 15.6 76 84.4 90 55.8 59.1
6 6.1 93 93.9 99 57.8 52.6
34 54.8 28 45.2 62 12.0 11.6
13 100.0 0 0.0 13 3.0 2.4
45 24.6 138 75.4 183 128.7 127.2
155 15.9 820 84.1 975 560.2 543.6
18

Review of Operations: Environment and Information Technology
WGHG is committed to
doing our part to protect
our environment.
We are constantly
identifying improvements
in our systems to ensure
we minimise harm to
the environment.
Information Technology (IT)
Environment
To minimise water consumption levels,
valves installed in taps and showers
this year are expected to reduce water
consumption across West Gippsland
Hospital by five million litres per
annum. The Manager of Engineering
Services reports to the Department of
Human Services regarding energy and
water consumption levels. The Manager
also reports to the National Pollutant
Inventory annually on waste emissions
to air, water and landfill. This report is
mandatory. WGHG does not exceed any
benchmark limits for any substances.
A streamlined recycling system is
used by the Environmental Services
(ES) department for newspapers, paper
and cardboard, glass and aluminium.
Products for recycling are sent to
a recycling site weekly. The ES
department utilises user-friendly
chemicals, which are non-harmful
to the environment. Strict guidelines
govern the use of any other chemicals
required for special cleaning. Chemicals
are never mixed, which decreases
harmful effects to the environment.
Valves replaced in taps and showers at WGH
is expected to reduce water consumption
by five million litres. Pictured is Engineering
Department staff member Len Cole replacing
a valve in the Emergency Department
washroom.
IT Support Officer Simon Schreyer
demonstrates Internet Protocol based
video conferencing to Health Information
Services Manager Diane Draper at her
desk.
Major significant improvements were achieved across the Group this year
as a result of several small projects being achieved by the IT Department.
The introduction of internet protocol based video-conferencing is proving
very successful. This allows staff members to attend important meetings
held anywhere in Australia without leaving the office. This is both time
and cost efficient.
Outcomes:
➤ Upgraded the Microsoft Office suite of programs providing improved
document management
➤ ‘My Work Plan’ staff appraisal tool now available on Intranet, improving
staff access to relevant documentation
➤ Installed a specialised hands free wall telephone system in the
Operating Theatre to allow surgeons to access critical telephone calls
➤ Implemented ‘staff on leave’ calendar on Intranet providing streamlined
reference to staff availability
➤ ADSL contract transferred to new provider resulting in significant cost
savings
➤ Implemented Medical Imaging Viewing Station in Emergency
Department to provide digitised viewing of diagnostic images to
expedite diagnosis and treatment
➤ Implemented Internet Protocol based video conferencing at the
desktop and staff trained
➤ Restructured IT help desk and streamlined communication access
to the IT Department
➤ Reviewed and restructured telecommunications support and
documentation
Future Directions:
➤ Finalise the electronic point of sale system in the cafeteria
➤ Implement a new Healthsmart Patient and Client Management System
➤ Introduce a voice over Internet Protocol telephone system
➤ Introduce wireless LAN/WAN facilities
➤ Implement an electronic patient referral system
➤ Investigate wireless modem access for roaming staff
➤ Review status of existing photocopier resources to ensure equipment
is adequate to meet use demands
➤ Investigate electronic business access potential
19

Review of Operations: Education and Research
In-service and Continuing Education
The Staff Development Unit provides,
or arranges provision of, activities
to meet the education, training and
professional development needs of staff
as identified by an ongoing needs
analysis process. In-service education
needs are met on-site by short
presentations or demonstrations.
Educational needs, both clinical and
non-clinical, that require longer-term
and more formal instruction are
provided for in the continuing
education and professional development
programs. Activities include short
courses, workshops, learning packages,
seminars and study days. Subjects
offered in the clinical component
included Basic ECG Interpretation,
IV Cannulation, Epidural Management,
Patient Controlled Analgesia,
Management of Central Venous Access
Devices, Physical Assessment, Paediatric
Skills Update, Diabetes Update, Basic
Wound Management, Advanced Wound
Management and ‘Smart Lift’ patient
handling procedures. WGHG is involved
in a Gippsland-wide project to integrate
the continuing education of nurses and
share programs, expertise and resources.
An on-line clinical risk training package,
developed by the project, was trialled
and implemented for nursing staff.
Competencies include basic life support,
fire and safety, manual handling and
medication administration. This
program may be expanded to include
general staff in the future. WGHG is
now endorsed by the RCNA to award
continuing education points to nurses
undergoing further education.
Nurse Preceptor Program
The nurse preceptor program was
developed to provide mentors for
students, graduate nurses and new
nursing staff. The role includes acting
as a teacher, resource person and role
model. Preceptors assist staff to gain
knowledge, skills, behaviours and
attitudes for a safe and effective
workplace. Preceptors are appointed
across a range of clinical and aged
care areas. This year 31 nursing staff
acted as preceptors.
Graduate Nurse Program
The Group offers a Graduate Nurse
program to support beginning Division
Sound relationships developed with educational institutions
ensure WGHG staff have access to quality ongoing education.
1 Registered Nurses in making the
transition from students to competent
practitioners. The program includes
a comprehensive round of rotations
to provide a broad range of clinical
experiences and enhance career path
development. Ten first year nurses
completed the program in 2005 and
a further ten are currently enrolled.
Nurse Re-entry and
Refresher Programs
As part of its nursing staff
recruitment and retention strategy,
the Group again offered supervised
practice-based re-entry and refresher
programs. The refresher program,
updated this year to address Nurses
Board of Victoria guidelines, involves
supervised practice in either medical,
surgical or aged care nursing. It is
available to nurses who hold current
Division 1, Division 2 or overseas
registration but lack recent acute
experience. Four candidates
satisfactorily completed these
programs in 2005/06, including
one nurse from overseas.
Clinical Placements
A total of 208 students from a variety
of health care disciplines including
medicine, nursing and ambulance
paramedic studies undertook clinical
experience placements during 2005/06.
Orientation
Mandatory one-day general orientation
programs were attended by 93 new staff
members. In addition 50 new nurses
were provided with a comprehensive
orientation to the nursing service. The
student orientation program was revised
and an information manual developed.
Further Education
The Group continues to provide
support for staff undertaking further
work-related study. During 2005/06
employees were enrolled in a number
of tertiary or TAFE courses which
include courses in nursing, critical
care, cancer care, assessment and
workplace training, health and
recreation, aged care, medication
and midwifery.
Major Projects
The year the Unit comprehensively
revised all clinical pathways throughout
clinical areas in response to identified
clinical risks. Other projects include the
Clinical Instability Calls, hand hygiene
in conjunction with the Infection
Control department, Falls Prevention
and the no-lift program.
Educational Affiliations
Alfred Hospital
Central Gippsland College of TAFE
Central Gippsland Division
of General Practice
Deakin University
Gippsland Education Precinct
Latrobe University
Monash Medical Centre
Monash University
(Clayton, Gippsland, Peninsula)
Monash University Medical School
Royal Melbourne Institute
of Technology (Sale)
Victoria University
University of Melbourne
Research
Research continues to be monitored
by the ethics committee to ensure
National Health and Medical Research
committee guidelines are met. These
guidelines require broad community
membership as well as medical and
nursing involvement.
Operating Room nurse preceptor
Jenny Watson (right) advises
Peri-operative nursing program student
Sharon Hugo (left) and nurse graduate
Nicole Caddy in the Recovery Room.
20

Review of Operations: Quality Report
West Gippsland Healthcare Group strongly supports a learning
environment that reviews systems and processes in the light of
errors, so that we can improve the care we provide to our
community.
Safe Quality Care
Healthcare organisations are large
complex places managing many
integrated processes and systems.
Research into what makes healthcare
organisations safer places is clear.
More often than not, mistakes happen
as a result of a sequence of events that
go astray. At WGHG, if a mistake
occurs, our learning culture allows
us to understand how we can prevent
similar mistakes from happening again.
To do this, we are building on our
safety culture; a culture where staff
feel comfortable to report things that
go wrong without feeling they will
be blamed, punished or ignored.
This culture supports an active
investigation learning environment.
What WGHG does to improve safety
➤ We encourage staff to report
incidents and close calls (near
misses). As a result, this year the
number of incident reports has
increased by 41% from an average
of 92 per month to an average of
130 per month, providing more
opportunities to learn
➤ We review and investigate all
incidents and near misses in a “no
blame, no shame” way to identify
contributing factors
➤ We use a comprehensive
investigation process that aims to
understand what happened and
why it happened, on all major or
serious incidents
➤ We involve all departments in safety
and quality improvement activities
➤ We involve experienced medical
and nursing staff in reviewing
patient records to confirm
appropriate care was given
and documented
➤ We have committees and working
parties linking medical, nursing,
allied health and support services
to monitor, review and recommend
quality and safety improvements
➤ These committees and working
parties report to the Clinical Quality
Committee who, in turn, reports to
the Board’s Standards Committee
to ensure that there is a high level
of responsibility for safe quality care
(Clinical Governance)
➤ We measure our safety and quality
performance and compare it to the
performance of other organisations
wherever possible
➤ We learn from incidents that occur
in other organisations
➤ We listen, investigate and learn
from complaints
➤ At WGHG, larger programs or
projects target key patient safety
risks such as infection control,
falls and pressure areas
➤ We develop and regularly review
policies, procedures and guidelines
to ensure they reflect current best
practice
➤ We provide ongoing education
and support to ensure our staff
are skilled and up to date
➤ Our equipment is regularly tested,
maintained and replaced to ensure
it meets our clinical needs
(continued on page 22)
Incident reporting
Incident reporting is a key component
of the clinical risk management
program.
In March 2006, WGHG introduced
a severity rating system for all
incidents. Incidents are rated
according to severity from 1 to 4,
most severe incidents being rated
1 and least severe rated 4. Most
incidents occurring at WGHG have
a low severity rating (3 or 4). A weekly
100
80
60
40
20
0
Types of Incidents Reported at WGHG
624
Falls
Medication/IV related 244
OH&S - Physical injury 237
Miscellaneous 227
107
Aggression related
incidents
29
Equipment or
instrument related
26
OH&S - Exposure
contaminated related
Clinical Risk and Evaluation (CARE)
meeting enables the Executive team to
look at all incident reports. Incidents
with a higher severity rating (1 or 2)
are investigated and reviewed. The
risks identified are directed to the
appropriate area to be addressed
and strategies are implemented to
minimise the chances of a similar
incident occurring. Incidents rated
3 and 4 are recorded and monitored
to look for trends that may indicate
a problem is emerging.
Property 22
Absconding 15
OH&S - Others 11
8
Related to consent and
patient identification
Communications disputes 7
Diagnostic incidents 7
Administrative/
contractual 5
In response to incidents we have:
➤ Implemented a critical instability call
process, improving the process for
nursing staff to call for specialist
medical support quickly
➤ Developed and implemented fluid
balance chart and medication
handover policy on all wards. This
provides an opportunity for staff
to double check for early changes
in patients fluid balance or where
medications may have been missed
➤ Standardised the times that
Warfarin (blood thinning
medication) is given, reducing
the likelihood of it not being given
and blood tests being missed
➤ Improved processes for staff and
information for families when the
death of a loved one is reported
to the Coroner
➤ Reviewed incident reporting systems,
educated and encouraged staff to
report incidents
➤ Reviewed Emergency department
pathology collection times ensuring
pathology requests are delivered at
appropriate times before pathology
staff leave in the evening.
21

Review of Operations: Quality Report
➤ We check all our staff are
appropriately skilled and qualified for
the jobs they are doing. In 2005-06
we implemented a best practice
model for credentialling medical staff
and hope to extend this to allied
health and community services staff
next year.
Critical analysis of medical records
The review of patient medical histories
is another way to identify needs and
prevent incidents. Senior clinical staff
scan histories for potential adverse
events; histories are then scrutinised
by an appropriate member of staff or
a committee to identify areas for
improvement.
In response to critical analysis
of histories we have:
➤ Improved post operative pain
management and monitoring of
patients having urology surgery
➤ Reviewed guidelines, staff education
and documentation requirements
for monitoring of obstetric patients
➤ Reviewed anaesthetic charts to
include blood loss during surgery,
improving staff communication.
Infection control program
Hand hygiene and the
hand hygiene project
It has been known since the early 19th
century that hand washing is important
in preventing the spread of infection. In
2006 hand hygiene remains a key issue
Managing complaints
Complaints are an important method
of identifying patient quality and safety
issues. Formal complaints are referred
to, investigated and managed by a
member of the Executive team.
Complaints involving a clinical issue
are reviewed by the CARE meeting to
track the progress of improvement
recommendations. This year we have
reviewed our complaints record
management systems and identified
our software needs.
In response to complaints we have:
➤ Provided in-service education for
staff in the Emergency department
on pregnancy testing of women with
abdominal pain and psychological
support of women who have had
miscarriages
➤ Strengthened the role of the nursing
coordinators to inform the Director
but we are now changing the way we
do this. Structured observations of
actual hand hygiene practice against
opportunities for hand hygiene practice
revealed that even in a post-surgical
ward, hand hygiene practice fell below
the Victorian Quality Council target of
60% of hand hygiene opportunities
being taken. This finding was not
unusual across many hospitals.
The main hand hygiene practice
involved the decontamination of hands
by washing, using water and an antimicrobial
soap or solution. However
this method of hand hygiene had its
problems including skin irritation and
dryness, insufficient time to practice
hand hygiene, and in some cases the
perception that wearing gloves removed
the need for additional hand hygiene.
As a solution, the WGHG hand hygiene
project is promoting an alcoholchlorohexidine
hand rub, used before
and after every patient contact, and
after contact with objects, including
medical equipment, in the immediate
vicinity of the patient. The inclusion
of moisturising skin care products
minimise the risk of skin irritation
and dryness for users.
Staff education in the reasons for and
the use of alcohol hand-rub has now
commenced and a culture change is
under way at WGHG. The effectiveness
of Nursing and Director of
Medical Services if there is an
unusual delay in transferring
patients for ongoing care
➤ Reviewed Emergency department
protocols for the management
of paediatric patients
All complaints made to WGHG are
taken very seriously. Kathy Bailey,
Patient Services Manager, consults with a
complainant.
22
of the hand hygiene project will
continue to be monitored using the
indicators suggested by the Victorian
Quality Council of rates of compliance,
the amounts of hand hygiene product
used, and the rates of nonsocomial
infection.
Cleaning standards
An essential component of the infection
control program is ensuring a clean
environment. To make sure WGHG
maintains a high standard of cleaning,
the Infection Control Nurse and the
Environmental Services Manager
conduct regular cleaning audits.
Each area of the hospital is weighted
according to the standard of cleanliness
required. For example, the Operating
room has a higher standard of
cleanliness required than the public
foyer. Each year, without notice
WGHG is audited to ensure it meets
a minimum standard by an external
surveyor. This year the minimum
cleaning standard score was raised
from80% to 85%. WGHG scored
92.4%, well above the target set.
To assist in improving cleaning
standards, Environmental services staff
had regular discussions on audit results
highlighting the areas that require more
attention to detail. They have also been
supplied with tooth brushes to remove
build up of soap around hand basins.
100
95
90
85
80
75
70
Cleaning Standards Score
91.77%
2002
93.50%
2003
93.50%
2004
SCORE SET BY DHS
91.40%
2005
92.40%
2006
Targeting high risk areas
is another way WGHG
improves the safety of our
patients and the quality
of care through ongoing
programs and projects.

Review of Operations: Quality Report
In response to learning from
others in healthcare across
Australia, WGHG has:
➤ Reviewed blood transfusion
practices in line with best practice
models
➤ Introduced best practice use of
pain relievers in the Emergency
department
➤ Implemented the Surgical
Consultative Council five step
patient identification processes to
help ensure we have the correct
patient for the correct procedure
A heightened awareness
of procedures and
encouragement to report,
has resulted in staff
reporting more errors in
medication documents.
This positive increase
indicates errors are being
picked up before the
medications are given,
preventing potential harm.
Medication management
In 2004-05, after a review of the most
common forms of medication error,
we concentrated on how medications
could be unintentionally omitted.
Improvement strategies implemented
dramatically improved the number
of errors relating to the omission of
medications by 66%.
In 2005-06 the focus was on
errors relating to documentation.
Medication incidents are regularly
discussed at Nursing Council meetings
and in the Medication Safety Working
Party so that improvement strategies
can be targeted in the most effective
manner.
This year:
➤ Clinical Nurse Managers changed
handover processes to include
checking of medications at the
bedside for all Ward areas
➤ The medication management
procedure was reviewed
➤ All nursing staff received in-service
training on medication management
procedures and general incident
reporting
➤ In a “no-blame” culture, staff were
actively encouraged to report all
documentation errors detected.
The data for 2005-06 now shows
a 129% increase in the number
of incidents reported (31 to 71).
Of the 71 reported incidents in
this category, only one had a minor
outcome requiring medical review
for the patient.
Another project aimed at reducing
medication errors by targeting the
way medications are documented,
commenced in 2004-05 when
WGHG trialled a standardised
national medication chart and
provided feedback to the National
Quality And Safety Council, National
Medication Chart pilot project. This
year the National Medication Chart
was fully implemented at WGHG.
Pharmacist Kenneth Ch’ng ensures
the medications prescribed on the
medication chart are the correct medication
prior to discharge of patient Arthur Row.
Falls
Falls remain one of the top two
incidents reported at WGHG.
Falls projects, commenced last year,
continue with best practice falls risk
assessments and minimisation
strategies being implemented in
all clinical areas and extending into
the community. As part of this, a new
Admission and Discharge form that
includes an initial falls screening tool
was trialled and implemented. If the
initial screen confirms a risk of falling
a second more extensive tool is
completed and falls reduction
strategies implemented in the care
planning.
Analysis of the data shows we are
making a difference. This year there
has been a 17% decrease in the
number of falls occurring in hospital
resulting in minor injuries in the acute
Types of Medication Errors Reported
80
70
60
50
40
30
20
10
0
2003/04
2004/05
2005/06
Omitted dose
Documentation related
Wrong dose
Not detailed
Wrong drug
Duplicated dose
Wrong rate
IV therapy and Site issues
Delayed dose
Wrong patient
Known allergy
Wrong route
Self administering
Adverse drug reaction
Drug intervention
Incompatible blood product
Overall the number of errors reported for 2005-2006, in nearly all categories, has increased. Staff have been provided with a series of incident
reporting sessions to encourage reporting. This has improved the climate of reporting and has given us more opportunities to learn.
23

Review of Operations: Quality Report
area, with no falls occurring in the
acute area resulting in serious injury.
In the aged care area with an
additional 30 high care residents (who
have a higher risk of falling) there was
a 3.5% increase in the falls resulting in
minor injury and a 1% increase in falls
resulting in serious injury.
As part of the awareness campaign,
the increased emphasis on incident
reporting and an additional 30 high
care residents in aged care, 601 falls
were reported this year, 24 more than
last year, an increase of 4%.
Pressure areas
For the last three years, WGHG has
participated in the Victorian Pressure
Ulcer Point Prevalence study. This
study aims to identify the prevalence
of pressure ulcers by measuring the
number of patients with evidence
of pressure areas on a set day. The
results of the study are then compared
against other Victorian public
hospitals and against previous results.
During the year, based on the results
and assessment of equipment needs,
WGHG implemented a number of
pressure prevention strategies.
Pressure relieving seating surfaces,
heel boots and 10 dynamic mattresses
were purchased with a generous
donation of $16,963 donated by the
Drouin Auxiliary. Nursing education
of assessment and pressure area
prevention was implemented with a
catch cry of “zero tolerance to pressure
areas”.
This year the results show a dramatic
decrease in pressure point prevalence,
in part, due to these strategies.
40
35
30
25
20
15
10
Pressure Ulcer Point
Prevalence Survey %
PUPPS 1
2003
PUPPS 2
2004
PUPPS 3
2006
Managing demands
for elective surgery
WGHG is committed to monitoring
and improving access for our
community to elective surgery
and other acute inpatient services.
During the year, the elective surgery
waiting list reached over 800 patients
and the length of time patients were
on the list was well above the average
of other rural hospitals.
To help manage this demand,
and with funding provided by DHS,
Newly appointed Elective Surgery
Access Coordinator Debbie Cole
discusses the waiting list with orthopaedic
surgeon Mr George Owen.
An Elective Surgery Access
Coordinator was appointed in March.
An extensive audit of the waiting list
and a preliminary gap analysis was
carried out identifying barriers to
timely access for elective surgery
patients and those requiring admission
from the Emergency Department.
The waiting list audit process involved
contact with hundreds of patients
on the elective surgery waiting list,
particularly those who had been on
the list for some time. This provided
the opportunity for patients to ask
questions about the waiting list and
also identified more than 200 patients
who, for a range of reasons, no longer
Surgical Ward nurse Sheree Blum
adjusts a compression device fitted
to the patient following surgery to reduce
the risk of developing deep vein thrombosis.
Preventing Deep Vein Thrombosis
and Pulmonary Embolis
This year, all clinical areas
implemented practices to prevent the
occurrence of Deep Vein Thrombosis
(DVT) and Pulmonary Emboli (PE).
Deep Vein Thromboses are blood clots
in the larger veins, usually the veins
of the legs. Pulmonary Emboli are
blood clots in the lungs. Research
show that DVTs and PEs are a major
and largely preventable cause of
complications in hospitals around
the world.
With these clots occurring 100 times
more frequently among hospitalised
patients than amongst those in the
community, WGHG is one of 40
hospitals around Australia
24
participating in a project to reduce
the number of patients developing
these blood clots.
An assessment form for all patients
and standardised prevention practices
based on evidence recommended
by the National Institute of Clinical
Studies, will be implemented early
next year.
Methods used to help prevent
DVTs and PEs are:
➤ The use of blood thinning
medications
➤ Anti-embolytic stockings
➤ Sequential compression devices
used mainly in the operating theatre
to prevent blood from pooling in the
legs during operations
➤ Early mobilisation or exercises

Review of Operations: Quality Report
needed to be on the list. At the
completion of this intensive audit,
we had a realistic picture in terms of
the overall number of patients waiting.
We are now concentrating our efforts
on reducing the waiting time for
patients categorised as semi urgent
or non urgent. All urgent surgery is
attended as a high priority and can be
the reason for delay or postponement
of less urgent surgery.
Other processes reviewed included
patient discharge times, operating
room utilisation, bed management,
information brochure and letter
content for elective surgery patients,
and patient flow through the Preadmission,
Day Surgery, Wards
and Emergency Departments.
Responding to community needs
A review of WGHG services conducted
during the year, showed there was a
delay in the availability of podiatry
services. The waiting time to see a
Podiatrist was approximately four
months.
800
700
600
500
400
300
200
100
0
Number of Patients on Elective Surgery Waiting List
JUL 05 AUG 05 SEP 05 OCT 05 NOV 05 DEC 05 JAN 06 FEB 06 MAR 06 APR 06 MAY 06 JUN 06
In response, WGHG implemented
two strategies to improve access to
podiatry services. In a joint project
with the DHS and the Baw Baw Shire
Council, a District Nursing and
Podiatry clinic opened in Trafalgar
in February. The second strategy
involved an innovative team based
program. District Nursing staff together
with the Podiatrist developed a
program where patients with low care
podiatry needs could be managed by
the District Nurses. As a result the
waiting list for podiatry services has
reduced from four months to two
weeks.
To implement the program a number
of District Nurses underwent specialist
foot care training to assess needs and
provide simple treatments. A Foot
Care Assessment Chart was designed
and policies were developed to guide
staff.
With the program in place there is
now a shared referral system. The
District Nurses can refer patients
who are high risk of complications
or have higher care needs to the
Podiatrist and the Podiatrist can
refer low risk patients to the District
Nurses. An annual competency review
process has also been developed,
whereby the Podiatrist assists in
ensuring the skills of the District
Nurses are current.
Podiatrist Andrea Castello instructs District Nurse Margie Winter in basic foot care.
A separate, more
comprehensive Quality
of Care report is available
on request.
Please call the
Customer Services
Manager Quality
Coordinator on
5623 0835 or see
www.wghg.com.au.
25

Review of Operations: Acute (Hospital) Services
The Challenges
WGHG services continue to be in
demand requiring innovative programs
to be developed, implemented and
evaluated to ensure appropriate care is
provided. There is an increasing need
for preventative programs to target ‘at
risk’ patients who can be appropriately
referred for ongoing management in
their own home. By identifying risk
factors and referring patients to
appropriate services, preventative
programs and self-help groups, patients
with chronic conditions can maintain
their health and, as a result, require
fewer admissions to Hospital.
Implementing new programs and
introducing changes to clinical practice
can be a major challenge for staff.
Profile
West Gippsland Hospital (WGH) is an 83-bed acute facility in Warragul,
providing Medical, Surgical, Obstetric, Sub-Acute, Oncology, Haemodialysis,
Paediatric, Anaesthetic, Emergency and High Dependency Services, with a
full range of Allied Health Services. The Hospital treats approximately 10,400
inpatients with 15,000 emergency visits this year. The acute services are listed
on page seven of this report.
Objectives
1. Develop strategies for chronic disease management programs
2. Gain accreditation as a Baby Friendly Hospital
3. Establish community clinics in Trafalgar and Drouin
4. Develop a secondary prevention quality initiative for acute coronary
syndrome and congestive heart failure patients
5. Expand Haemodialysis Unit to accommodate two extra patients
6. Expand ambulatory care options
Outcomes
WGHG strives to ensure that staff
maintain and enhance their skills
to function effectively in a constantly
shifting healthcare environment.
Providing educational opportunities
is essential in the recruitment and
retention of professional staff.
To assist in the management of
the elective surgery waiting list,
and with funding provided by DHS,
an Elective Surgery Access
Coordinator was appointed in March.
As a result the waiting list was audited
to ensure those on the waiting list
wanted to remain on the list.
Ensuring timely access for patients
requiring surgery is a high priority
at WGHG.
1. Chronic disease management programs developed and strategies
implemented to educate patients with chronic conditions
2. Due to the redevelopment of the Midwifery Unit during the year,
the Baby Friendly Hospital accreditation is postponed until next year
3. District Nursing and Podiatry Clinic commenced in Trafalgar in February
4. Secondary prevention quality initiative developed and implemented for
acute coronary syndrome and congestive heart patients
5. Plans underway to expand Haemodialysis Unit to accommodate two
extra patients
6. Improvements to ambulatory care options identified and integrated
into acute and chronic disease management programs
Continuing Care Business Unit
(CCBU), District Nursing Service
(DNS) and Post Acute Care (PAC)
This Continuing Care Business Unit
operates to streamline the referral
and coordination of services delivered
to patients discharged from Hospital.
The Post Acute Care team links patients
to services to assist them to recover
at home after leaving Hospital. Referrals
to Post Acute Care are received from
the Hospital, Community Services, Local
Councils and individuals. This year
there were 1352 episodes of service,
319 more than last year, an increase
of 31%.
A new District Nursing clinic and
podiatry service opened in Trafalgar in
February increasing access for patients
in outlying areas. This clinic and the
additional clinics located at Longwarry,
Neerim South and Warragul, provide
assessment and treatment for wound
care, foot care, exercise monitoring
and supervision for patients needing
to maintain their mobility. A full range
of in home services is also provided for
patients unable to access the clinics.
A service to provide Lymphoedema
management was introduced during
the year and is provided by District
Nurses specifically trained in this field.
The Hospital in the Home program
provides an option for some patients
to receive treatment at home for
conditions that would otherwise require
a Hospital stay. This service, provided
byDistrict Nursing, continues its steady
growth with a 19% increase in patient
visits this year.
Future Directions
➤ Expand on risk assessment and secondary prevention programs
➤ Gain accreditation as a Baby Friendly Hospital
➤ Implement the "Living with Cancer" Education Program for cancer patients
➤ Review Day Surgery processes
➤ Strengthen programs for chronic disease management
➤ Review Palliative Care program for community and acute sectors
➤ Review equipment useage policies and pathways of care for Operating Theatre
District Nurse Anne Venville visits patient
Helen Ainscough in her home.
26

Review of Operations: Acute (Hospital) Services
This Interim Care Program provides
patients, who require supported care
on an ongoing basis, with interim
accommodation at Neerim District
Soldiers’ Memorial Hospital whilst
awaiting placement at a nursing
home facility. Twenty two people
were accommodated in Interim
Care this year, an increase of 48%
from last year.
Palliative Care is a 24 hour a day
service, provided by District Nursing,
supporting terminally ill patients and
their families.
There were 5485 District Nursing visits
this year, 55% more than last year.
Surgical Ward, Day Surgery
Unit and Paediatrics
The Surgical Ward participated in
the trial of the National Inpatient
Medication Chart, introduced this
year. All staff completed the Falls
Prevention and Pressure Ulcer
Prevention Programs education
package.
The Day Surgery Unit continues to
be very busy with up to 30 patients
a week having surgery and other
treatments carried out as day only
patients.
Colourful murals painted in some
patient rooms have brightened the
Paediatric Ward providing additional
distraction and enjoyment for
children during their hospital stay.
An information booklet for families
of children being transferred to
the Royal Children’s Hospital was
developed. A shared care initiative
with the Royal Children’s enables
seriously ill local children to receive
some of their care at WGH. A Nurse
Educator assists paediatric staff to
develop and maintain specialised
nursing skills specific to paediatric
care.
Emergency Department (ED)
Presentations to the Emergency
Department remain high with 14,949
presentations this year. Patient
assessment tools were reviewed with
an emphasis on screening patients
who may have an increased risk of
falling or developing pressure ulcers.
Patients identified as being ‘at risk’
are referred for additional assessment
and strategies implemented to ensure
their care.
The Department’s Senior Medical
Officer leads the Emergency
Department Incident and Complaints
Team (EDICAT), a group that reviews
incidents and complaints and has a
role in developing treatment guidelines
and patient management plans.
Breast Care Service
All elective surgery patients
undergoing surgery for breast cancer
are invited to meet with the Breast
Care Nurse prior to their operation.
This helps to ease anxiety and
provides the opportunity to ask
questions about what to expect
after their operation. The Breast
Care Nurse also acts as a resource
to other staff caring for breast
surgery patients. Due to increasing
commitments in Melbourne, Breast
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
Emergency Dept. Presentations
14,949
2006
15,074
2005
27
15,401
2004
15,500
2003
14,330
2002
Emergency Department presentations have
remained consistent over the past five years.
Chairo Christian
School students
Nicholas Watson (left)
and Jenna Pedersen
present Ward 2
Clinical Nurse
Manager, Helen
Dunlop, with the
proceeds raised at
the school’s ‘Let’s add
colour to kid’s ward’
fundraiser.
Surgeon, Dr Jenny Senior, no longer
provides a surgical service at WGH.
Our community has benefited from
Dr Senior’s input and expertise
for more than a decade. We wish
her well.
Haemodialysis
Research has demonstrated that
clients undertaking exercise during
dialysis have a reduction in phosphate
levels and an increased sense of
wellbeing following dialysis treatment.
To improve outcomes for WGHG
dialysis clients, an exercise machine
is now available for clients to use
during treatment. A Plasma Exchange
Program was introduced this year for
maintenance treatment of patients
suffering specific kidney and nervous
system conditions. Clients with
additional medical conditions can
now receive dialysis treatment over
four or five days per week, rather
than the usual three days per week.
Undergoing shorter dialysis sessions
more often reduces the impact on
other medical conditions.
High Dependency Unit (HDU)
Due to Stage III Redevelopment,
the HDU was relocated in February.
The Unit utilised some areas in
the Medical Ward and the Midwifery
Ward. Even though conditions were
cramped, patient care was maintained.
The cooperation and patience of staff,
patients and visitors assisted the
smooth transition of services into
these areas.
Infection Control
The appropriate disposal of waste has
been a priority this year. A waste audit
of prescribed waste was completed

Review of Operations: Acute (Hospital) Services
with pleasing results. The results will
be used to develop an information
package and education program to
minimise waste, reduce costs and to
comply with Environment Protection
Authority standards. The Hand Hygiene
Project continues and will be a major
focus for next year.
Midwifery and Obstetrics
Stage III Redevelopment significantly
impacted on the Unit again this year.
The obstetrics unit was completed in
September and includes two birthing
suites, two labour delivery rooms and
an active birth room. Support rooms
include the nursery, pharmacy, breast
feeding room, equipment rooms and
staff education areas. Full services
were maintained throughout the
works. This year 699 babies were
born, including 12 sets of twins.
The busiest month was October
with the birth of 67 babies.
The Midwifery Student Program
is conducted in collaboration with
Monash University and is important
in the recruitment and retention of
Midwives for the service.
The dedicated Obstetricians and
Midwives are committed to ongoing
education and keep uptodate with
changing technology and trends in
maternity care.
We look forward to applying for and
achieving the Baby Friendly Hospital
Initiative status now that the building
redevelopment approaches completion.
700
600
500
400
300
200
100
0
Number of Births 2002 - 2006
2006 699
2005 684
2004 656
2003 615
2002 559
The opening of the new Casey Hospital at
Berwick has not decreased the number of
patients choosing to have their baby at
WGH.
Operating Theatre
Our community continues to benefit
from the services of excellent visiting
specialist surgeons and anaesthetists.
This year 2943 operations were
performed across of range of
specialties. 2266 were elective surgery
cases and 677 emergency surgical
procedures.
A committee was established to
develop and introduce a plan for the
prevention of Deep Vein Thrombosis
following surgery. We continue to
monitor and introduce strategies to
improve pain management, nausea
and low body temperature after
surgery.
Medical Ward
The Stroke project continues to
be active in education and the
development of assessment tools
and clinical pathways for patients
who have suffered a Stroke. A Stroke
Nurse is now undertaking home visits
to patients discharged from Hospital
after suffering a stroke.
Chronic conditions such as heart
failure and emphysemia represent
a large number of admissions to
the Medical Ward. There is a
growing trend to identify ways to
better manage chronic conditions
so patients can maintain optimum
health at home and require fewer
admissions to Hospital. The Heart
Failure Project commenced in
November and aims to assist
patients to manage their condition
after discharge from hospital. This
is achieved by providing the patient
with a health team review, education
and follow up support at home.
28
2000
1750
1500
1250
1000
750
500
250
0
Oncology Treatments 2002 - 2006
2006 1,808
2005 1,761
Baby Cameron Caddy
was the first baby born
in the redeveloped
birthing suites. He is
pictured with mum
Donna, dad Michael,
midwife Frances Jolly
and Clinical Nurse
Manager Caroline
Edwards.
The Medical Ward and the Palliative
Care team streamlined communication
with community based services to
ensure patients admitted for palliative
care receive the best possible service.
The Medical Ward participates in a
range of projects aimed at improving
outcomes for patients. These include
the Pressure Ulcer Prevention Project
(PUPPS), Falls Prevention Program
and the safe Administration of
Medications Project.
Oncology
A new streamlined patient booking
system introduced this year, resulted
in significant improvements for
patients accessing Oncology services.
The introduction of comprehensive
information packs for newly
diagnosed patients and carers,
the Look Good Feel Better Program
and the establishment of an infusion
2004 1,556
2003 1,302
Oncology treatments have increased
by 55% in the last five years.
2002 1,172

Review of Operations: Acute (Hospital) Services
service within the Oncology Unit were
all major achievements this year.
This Unit continues to be very busy
with 1808 treatments this year, 47
more than last year. Unit staff update
their knowledge and skills by
attending regular education sessions
being actively involved in a range of
regional cancer care working groups
and planning bodies.
Diabetes Education
It has been estimated that the
incidence of diabetes, particularly
Type 2 diabetes, in the Baw Baw
Shire may increase by as much
as 46% within the next ten years.
This prediction would seem to be
supported by the growing number
of patients being referred to both
the community and hospital based
Diabetes Educators. There were 1485
client contacts this year. A series of
diabetes update education sessions
were conducted to educate staff in
the new advances in treatment options
available.
Cardiology
The George Cole Hall facility located
behind WGH provides a large area for
exercise, rehabilitation and education
programs for people who have
breathing difficulties caused by lung
or heart disease. These sessions are
well attended and supported by the
Cardiac Nurse and Allied Health Staff.
The Cardiac Nurse is involved in the
new Heart Failure Project making visits
to patients at home after discharge
from Hospital to assess progress and
encourage rehabilitation activity.
Exercise stress testing for inpatients
and outpatients numbered 1127
services this year, 129 less than last
year.
Pre-admission Clinic
The Pre-admission clinic has had a
positive impact on reducing elective
surgery cancellations by identifying
early any patient health issues that
may require attention before
anaesthetic and surgery can be
undertaken. This year, 436 patients
were assessed through the clinic and
268 patients attended the anaesthetic
review service.
The Donor Tissue Bank of Victoria
Bone Banking program was
introduced in February. The Preadmission
Coordinator identifies
eligible patients having total hip
replacement surgery and offers
them the option of donating the
bone removed to the Bone Bank.
The bone is sent to the Bone Bank
and used for bone grafts. The Preadmission
Coordinator, the Elective
Surgery Access Coordinator, Bookings
and Admissions staff work together to
streamline the pre-admission process
for patients requiring elective surgery.
Medical Staff
➤ WGHG is fortunate to attract skilled
Medical Staff. During the year we
welcomed Specialist Anaesthetist
Dr Matthew Acheson, General
Practitioners Dr Cameran Azad,
Sandeep Bhagat and Biljana
Jovanovic, Gynaecologist Mr Geoffrey
Edwards, relieving Oncologist
Dr Kylie Mason and Paediatric
Surgeons Mr Chris Kimber and
Mr Neil McMullin
➤ We wish Urologist Mr William
(Bill) Straffon well in his retirement
after 35 years service
➤ During the year we farewell
Gynaecologist and Obstetrician
Dr Ian Pearson, Paediatric Surgeon
Mr Robert Stunden and Specialist
Anaesthetist Dr Dale Schnapp. We
thank them for their contribution
to the Group
➤ Investing in the experience of our
future medical workforce is vital.
Our junior medical staff now have
access to a Medical Education
Officer to assist with the planning
and support of education activities
➤ Mrs Debra Cole was appointed
to the position of Elective Surgery
Access Coordinator in March.
This role assists in the management
and streamlining of the processes
involved in maintaining the elective
surgery waiting list and identifies
any barriers to timely access to
hospital beds.
Medical Intern, Dr Tamara Jones, assesses
patient Debra Brown in the Pre-admission
clinic prior to her admission for surgery.
29

Review of Operations: Aged Care Services
Andrews House “Stretch it Out” walking
program volunteer Jacob Wilson (left)
and resident John Woodhouse (right) proudly
display the Better Practice National Award
presented to Andrews House for the ‘Stretch
It Out” program.
Photo courtesy of The Gazette.
Profile
Andrews House (Trafalgar) and Cooinda Lodge (Warragul) are committed to
providing quality residential care which reflects the Mission statement of the West
Gippsland Healthcare group. Andrews House and Cooinda Lodge provide ageing
in place for a total of 110 residents. A dedicated team comprising Registered
Nurses, Personal Care Workers, Allied Health, Food Services, Administration and
Environmental Services are committed to ensuring quality service. Care is provided
based on an holistic approach that meets the changing needs of residents.
Objectives
1. To successfully participate in round III accreditation with the Aged Care
Standards & Accreditation Agency
2. To upgrade the nurse call system at Cooinda Lodge
3. To implement a nurse managed foot care program
4. To integrate low care and high care services at Andrews House
Outcomes
Resident Focus
In consultation with residents and
families, individual lifestyle programs
are structured to meet the needs
of residents. This practice fosters a
resident focused environment, which
generates a sense of confidence that
residents needs are met. Consultation
includes meeting with residents,
support group meetings and
satisfaction surveys covering a range
of areas. The resident orientation
booklet is a valuable source of
information. A monthly newsletter
provides an update of activities
and special occasions. The
compliments/complaints register
provides a constructive tool to assist
in the continuous improvement
process. An open door policy is
promoted to encourage
communication between residents,
families and management staff.
1. Cooinda Lodge and Andrews House awarded three years accreditation
with the Aged Care Standards & Accreditation Agency
2. Upgraded the nurse call system in Cooinda Lodge
3. Implemented a nurse managed foot care program in Cooinda Lodge
with four staff specially trained in this area
4. Low care and high care services successfully integrated at Andrews House
following the completion of the 20 bed high care extension in November
Volunteers
With the increase in programs at
Andrews House and Cooinda Lodge,
nine new volunteers were recruited
to assist with a variety of activities
conducted each week.
The Cooinda Lodge Support Group
provides valuable support to residents
and families and fundraises to provide
the “extra things” for residents.
Fundraising activities included a
dinner, raffles, cinema night and
trading table. Funds raised this year
totalled $8,030. Equipment purchased
included pressure relieving equipment,
a tea trolley, leg protectors and
footstools. Funds are also provided
to assist with the activities program.
Since 1995 the Group has raised
$34,202.
Andrews House continues to be
generously supported by the Trafalgar
and District Community Opportunity
Shop. $12,673 was donated from shop
proceeds. Three new beds, teapots
and song books were purchased.
A shade sail for the outdoor area
will be installed in the near future.
Donations from the Trafalgar Lions
and Lioness Clubs, and the Drop-in
Day Centre of Trafalgar also provide
excellent financial support to purchase
much needed equipment for resident
use.
Activities staff proactively seek a
diverse range of visiting entertainers
for resident enjoyment. Strong links
with dance clubs, local service clubs,
church groups, schools and social
groups were maintained this year.
Future Directions
➤ To develop an innovative program to attract staff into Aged Care
➤ To strengthen the upskilling program of all staff in line with evidence
based practice
➤ To provide a Sunsmart outdoor environment that enables residents
to enjoy a welcoming, relaxed, sensory experience
➤ To market Andrews House and Cooinda Lodge and strengthen community
relationships
➤ To enhance the Volunteer program for Aged Care
Resident Pat Evans enjoyed the visit
by the Diamontes Circus to Cooinda
Lodge in May.
30

Review of Operations: Aged Care Services
Continuous Improvement
Andrews House and Cooinda Lodge
were awarded three years accreditation
by the Aged Care Standards and
Accreditation Agency following the
accreditation site audit conducted
in October. Both facilities successfully
met all 44 outcomes as set down by
the Agency.
An innovative program to reduce
anxiety for residents displaying
‘sundowners syndrome’ was introduced
at Cooinda Lodge. The program
incorporates stimulating sensory needs
and touch. Relaxation and enjoyment
are the main benefits for residents.
The diabetic nurse visits residents
with diabetes to ensure their condition
is managed effectively and to provide
the best outcome for their care.
A clinical care pathway was developed
to provide optimum care to residents
suffering a fractured hip.
The carpet replacement project at
Cooinda Lodge commenced during
the year. Vinyl replaced all carpeted
areas to improve cleanliness and
general maintenance.
Staff Education
In line with the Group’s strategic plan
to attract, retain and develop quality
staff, Andrews House and Cooinda
Lodge continue to participate in a
Graduate Nurse Program specifically
for Aged Care.
Several staff have undertaken or
are undertaking advanced education
including medication management for
Division 2 nurses, Bachelor of Health
Science – Nursing and Certificate IV
(Nursing). Following the introduction
of the We Care paperless
documentation system, all resident
progress notes are now computerised.
Several special care training programs
and workshops have also been
undertaken.
Andrews House
A highlight at Andrews House this
year was the successful completion
of the 20 bed high care extension,
officially opened in November.
Maintaining high standards of
resident care and ensuring minimal
interruption to residents were a major
focus for staff throughout the building
works. New facilities provide the
infrastructure for additional lifestyle
programs specifically tailored to meet
the needs of residents. Happy hour,
the men’s shed program, and other
activities are conducted with the
A collage to commemorate the
50th anniversary of the Victory in
the Pacific was unveiled at Andrews House in
November. Picture are (L-R) Russell Broadbent
MP, RSL President Ron Blair and Andrews
House resident Cyril Scott.
assistance of the activities coordinator
and volunteers.
The innovative walking program
“Stretch It Out”, designed to enhance
the lives of residents and staff, was
recognised with a Better Practice
Award from the Aged Care Standards
and Accreditation Agency. The success
of this program continues thanks to
the support of Trafalgar High School
students who assist in running the
program.
A special collage to mark the 50th
anniversary of the WWII Victory in
the Pacific was unveiled in November.
The project was funded by a special
grant from the Department of
Veteran’s Affairs and features
memorabilia provided
by residents.
Enjoying a dance at the
Cooinda Lodge Royal Winter
Ball are staff member Carol
Stapenell and resident
Howard Rowe.
31

Review of Operations: Community Services
Community Health
A range of services and programs
are provided under the Community
Health Program, including counselling,
emergency relief, community health
nursing, diabetes and asthma education,
women’s and youth health, health
promotion and health education
activities. To address staff safety issues
and to improve public access, the
Queen Street office underwent
renovations this year.
Health Promotion
A Community Dietitian and Health
Promotion Officer make up the Health
Promotion team. A comprehensive
health promotion plan, developed
collaboratively with other agencies,
Profile
The Community Services Division operates from four locations; Pettit House in
Warragul, Baw Baw Health and Community Care Centre in Drouin, Rawson
Community Health Centre in Rawson and the Community Services Centre in
Trafalgar. The Division comprises 35 staff in various disciplines, providing a wide
range of community-based services that are delivered in the community settings
as well as in the client’s homes. The range of services are listed on page seven
of this report.
Objectives
1. Continue to implement population based Health Promotion Strategies whilst
consolidating a collaborative partnership approach to service planning
2. Plan for the relocation of services to Gladstone St site incorporating policy
and procedural development for co-location with Community Mental Health
Services
3. Continue to implement the Aboriginal Best Start Program and Falls Prevention
Programs
4. Commence a women’s health clinic to target specific needs in the community
Outcomes
1. WGHG staff involved in Baw Baw Shire integrated planning strategy
incorporating several planning platforms including youth, aged, adult,
child and family
2. Policy and procedural documents drafted in anticipation of co-location
with Community Mental Health Services
3. Djillay Lidji Best Start Project continues to work towards implementing
programs. Falls Prevention program successfully completed
4. Weekly and after hours Women’s health clinics offered in Warragul. Outreach
clinics are conducted at Longwarry, Neerim South, Drouin, Trafalgar and
Rawson. Nursing staff undertook specialised training to provide services
Future Directions
focused on physical activity, nutrition
and mental health. To improve staff
understanding of health promotion
strategies, training was conducted for
management and senior staff. Eight
Community Kitchens commenced
across the Shire in conjunction with
other community organisations.
Specially trained volunteers facilitate
groups where people learn to cook
healthy, budget priced meals in a
social environment. Other major
benefits include social interaction
which contributes to improve mental
wellbeing. The HP team worked with
the Drouin Cluster of primary schools
this year in a whole of school approach
to implement Healthy Schools Policies.
➤ Establish a District Nursing and Podiatry clinic in Drouin
➤ Implement GHA Healthsmart strategy to integrate data collection across
the Group
➤ Continue to work in the Health Promotion priority areas of nutrition, physical
activity and mental health
➤ Implement the ‘Sustainable Farming Families’ program
➤ Continue to participate in the development and implementation
of the integrated planning network for Baw Baw Shire
Counselling
Counselling services were provided to
315 clients this year, six more than last
year. Services include general, family
and youth counselling. Clients are self
referred, referred by family, General
Practitioners, or other Health
Professionals. Reasons counselling is
sought include relationship problems,
grief and mental health concerns
including anxiety and depression.
Groups to support people with
chronic illness, mood disorders
and young mums were conducted
throughout the year.
Adolescent Health Service
The Youth Clinic provides access for
young people to a General Practitioner,
Community Health Nurse and Youth
worker. This year there were 73 contacts
from young people, 11 fewer than last
year.
Aboriginal Services
The Aboriginal Hospital Liaison Officer
service now comes under the State
Government ‘Improving Care for
Aboriginal and Torres Strait Islander
Patients’ (ICAP) program. This initiative
focuses program goals to improve
cultural sensitivity and quality of service
provision to Aboriginal patients and
communities. Another key feature is
promoting partnerships between
WGHG and Aboriginal community
controlled organisations in planning
and service delivery responses.
Continence
The Continence Service was recognised
for its outstanding service with two
awards at the National Continence
Conference held in October. The Service
comprises three part-time nurses,
a physiotherapist and a geriatrician
who provide services across four
shires to adults and children including
children with disabilities. Client visits
remained similar to last year with
1390 client contacts occurring in
client homes, adult and paediatric
clinics, hostels and the hospital.
Cognitive Dementia and
Memory Service (CDAMS)
This specialist diagnostic program
is coordinated by a full-time Clinical
Nurse Consultant who provides home
assessments for people with memory
and thinking problems throughout
32

Review of Operations: Community Services
Participants in the Trafalgar
Community Kitchen are (L-R)
Jean Brown, Phillip Storer,
Bob Moore, Meg Abrecht
and Rose Sawyer.
Gippsland. The Service hosted the
CDAMS state-wide conference in
Warragul in December with 11 of
14 services represented. Additional
clinics were offered in Bairnsdale this
year to alleviate waiting times. A new
client follow-up system introduced
during the year identified areas for
additional support to newly diagnosed
clients.
CDAMS contacts this year totalled
1520, well above their target of 1290.
Home and Community Care
(HACC) Services
The HACC Service provides
home-based allied health services
for aged and disabled persons in
the community. Services include
Physiotherapy, Occupational Therapy,
Dietetics, Podiatry, Aged and Disability
Support worker and Speech Pathology.
To improve access to Podiatry Services,
a District Nursing and Podiatry clinic
opened in Trafalgar in February. The
waiting list for Podiatry services is now
two weeks compared to three months
last year.
Emergency Relief
The Emergency Relief program is
a Commonwealth-funded program
providing emergency financial
assistance to people in crisis and
assistance with food parcels and
vouchers. This year there were 588
client visits assisting a total of 1696
people, 51 more than last year. The
program is supported by regular
community donations which are
gratefully appreciated.
Community Based Falls
Prevention Projects
The Central West Gippsland Falls
Prevention Projects work to reduce
the occurrence, injuries and impacts
of falls for adults aged 65 and over
in conjunction with the Primary Care
Partnership. The project conducts
Tai Chi for Balance classes as well
as education for health professionals,
home carers, volunteers, residential
aged care workers and residents.
Awareness raising strategies are
promoted through local media and
presentations to community groups.
A falls risk assessment and action
tool introduced in the Emergency
Department has been developed
to assist in reducing medium and
long term risks factors for patients
considered at high risk of falling.
Rawson Community Health Centre
The Centre provides comprehensive
health services to the residents
and visitors of Erica, Rawson and
Walhalla. Services include health
clinics, District Nursing, Hospital in
the Home, Post Acute Care services,
visiting doctor service and visiting
allied health, specialist nursing
services and a transport link to Moe
three times each week. The Centre
introduced falls prevention and
strength training classes in March.
A women’s health clinic, commenced
during the year, provides access to
services for women in remote areas.
The Community Services Division was the recipient of the Murray to Moyne Cycle Relay this year.
$22,000 was raised to purchase a range of equipment to enhance services.
Pictured at the start line in Echuca are Community Services staff (L-R) Samantha Hamilton,
Alison Hescock, Linda McCoy, Richard Adams, Grace Smith, Kay Bews-Bundle, Elizabeth Fraser
and Margaret Wallace.
33

Review of Operations: Support Services (Non-Clinical)
Finance/Supply/Payroll
The Finance department has adopted
the Australian equivalent International
Financial Reporting Standards and
reports to DHS in accordance with
the DHS mandated Chart of Accounts.
Departmental budgets are now entered
and submitted electronically following
enhancements to the PowerBUDGET
software application.
This year, the Payroll department
examined and verified all staff records
in readiness for the changeover to a
new payroll/human resource system
next year. Human resource key
performance indicators were
established to ensure policy
and procedure compliance.
The Supply department conducted
a customer satisfaction survey with
pleasing results. Processes and systems
for improvement were identified and
implemented. A follow up survey will
be conducted to benchmark overall
customer satisfaction. A warehousing
traineeship offered for the first time, was
successfully completed. The department
continues to work in close co-operation
with Health Purchasing Victoria.
Health Information
Health Information Services is
responsible for managing the hospital's
Profile
Supply department trainee Jeremy Woolfe
prepares an order for delivery to the Ward.
The Group works as a multidisciplinary team to provide the best care for clients.
These departments are integral in providing the highest possible level of service.
Objectives
1. Continue to improve access to polices and procedures via the Local Area
Network (LAN)
2. Ensure a smooth transition to the new chart of accounts
3. Ensure compliance with new international accounting standards
4. Review waste management systems across WGHG
Outcomes
1. Help cards developed to assist staff to access policies and procedures
on the LAN
2. Successfully implemented new Chart of Accounts
3. Full compliance of International Accounting Standards achieved
4. Working party established to develop integrated waste management plan
across Group.
Future Directions
medical record functions and includes
the Reception, Admissions and
Bookings Offices. Patient throughput is
the main contributor to the workload.
This year, separations (discharges)
processed increased by 111 to 10,371.
Breast Care patient records are now
incorporated into the hospital medical
record.
Food Services (FS)
Food Services has 54 staff, operates
14 hours every day and supplies
food and beverage requirements for
➤ Introduce new payroll/human resource management computer system
➤ Update Finance department policies and procedures
➤ Introduce electronic scanning of medical records in conjunction with GHA
➤ Conduct staff training in correct procedure of medical waste segregation
inpatients, same-day patients,
meals-on-wheels, Andrews House
and Cooinda Lodge residents, the
Garden Room and internal functions.
The department also supports stalls,
special events and fundraising activities.
This year, two new dishwashers were
fitted minimising water and chemical
usage and providing cooler working
conditions for staff. The department
was again awarded the tender for
the supply of meals-on-wheels in the
Baw Baw Shire for the next three years.
Consulting Suites
The Consulting Suites has 17 visiting
medical specialists who cover 12
specialties. The Suites are located
on the WGH site. There were 19445
occasions of service during the year.
Due to Stage III Redevelopment of
WGH, the Suites temporarily
accommodated the breast care support
clinic. A special project undertaken
this year was the review and update of
information provided to patients. This
has resulted in patients being better
prepared for appointments.
Environmental Services (ES)
There are 39 staff on the ES team.
External cleaning audits resulted in
an excellent result of 92.4%, well
above the state average of 85%.
Previous outstanding results of cleaners
cupboard audits were maintained this
year with a score of 99% achieved. A
Prevention of Stormwater Pollution
audit was conducted in April by the
Environment Protection Authority
(EPA). All areas complied with the
EPA Guidelines. The ES Manager is
a member of a new committee set up
to develop an integrated approach to
waste management across the Group.
Staff attended training in manual
handling and safe use of chemicals.
Engineering
A multi-skilled workforce provide
support to all WGHG sites. The Stage
III Redevelopment of WGH, the
completion of extensions to Andrews
House at Trafalgar, and the
commencement of the Community
Health and Community Mental Health
projects, have been a major focus for
the department. Well planned routine
maintenance ensures all sites function
effectively.
34

Review of Operations: Allied Health
Occupational Therapy (OT)
The OT department provides services
to hospital clients including, the
Emergency department and the
Pre-admission Clinic. Services are
also provided to aged care facilities.
Outpatient services are provided to
the CRC which provides rehabilitation
to clients who are frail, disabled,
chronically ill or recovering from
traumatic injury or surgery. The CRC
occasions of service for hospital
inpatients increased by 5% to 2300.
Outpatient occasions of service
remained the same as last year at 700.
Home visits increased by 7% to 310
this year. A significant achievement
for the department this year was the
development and implementation of
an electronic loan equipment register.
The register has improved efficiencies
in the tracking and management of
loan equipment. Funding was approved
in March for the continuation of the full
time position for one of the Grade 1
Occupational Therapists allowing the
department to maintain its levels of
service. Risk management and manual
handling education for Allied Health
staff was completed in conjunction
with Physiotherapy to assess, manage
and record risk management strategies
for therapeutic/rehabilitative manual
handling of patients and equipment
tasks.
Physiotherapy
Physiotherapy provides services to
hospital inpatients, the Emergency
department, the Pre-Admission Clinic
and aged care residents. Services to
outpatients are provided through
the Outpatient Physiotherapy and
Hydrotherapy services, CRC, Cardiac
and Cardiopulmonary rehabilitation
programs. Community clients access
services through the Rural Allied
Health team, Post Acute Care and
the Continence clinic. A strength and
balance training rehabilitation group
was established in conjunction with
the CRC to rehabilitate clients at
high risk of falling. An electronic
management system introduced for
the outpatient service is expected to
minimise waiting times for clients.
Inpatient occasions of service increased
by 13.5%. Outpatient occasions of
service decreased by 4%. Outpatient
waiting list times decreased by 10%
to 17 days from 19 days last year.
Nutrition and Dietetics
This year, the Nutrition and Dietetics
department developed an inpatient
malnourishment screening kit to
identify patients who are malnourished
or at risk of malnourishment. Early
implementation of dietary changes
can provide improved recovery
outcomes for the patient. As well as
inpatients, the department provides
services to long term chronic illness
sufferers and works closely with the
Health Promotion team to develop
programs specifically targeted to at
risk groups. Occasions of service
were 2856, 106 more than last year.
Speech Therapy
Speech Pathology outpatient occasions
of service totalled 500 this year, an
increase of 12.8%. The introduction
of block therapy allowed more clients
to be seen. A patient satisfaction
survey demonstrated a high degree of
satisfaction by users of the outpatient
Profile
The Allied Health department consists of Occupational Therapy (OT), Nutrition
and Dietetics, Physiotherapy and Speech Pathology. They provide a service to
clients during the hospital phase, in rehabilitation, in residential aged care settings
and with home follow-up. They work together as a multidisciplinary team with
other clinical and non-clinical staff to bring about the best outcome for each client.
Objectives
1. Update CRC facilities through the Pathways Home Project
2. Establish a new loan equipment tracking system
3. Provide training for Clinical Nurse Managers in screening for dysphagia
4. Improve Occupational Therapy department written procedures and protocols
Outcomes
1. CRC to be redeveloped under Cooinda Lodge. Plans finalised and tenders
invited
2. Electronic loan equipment tracking system developed and implemented
ensuring accurate recording of borrowers
3. Ward 3 Clinical Nurse Managers trained to screen for dysphagia in stroke
patients
4. Occupational Therapy administrative procedures resource package developed
and implemented improving access to information and procedures
Future Directions
Physiotherapist
Angela Jacob
assists Cardiac
Rehabilitation
Centre client
Mary Frigo on
the exercise
bike in the
rehabilitation
gymnasium.
service. Department staff
providedtraining for Medical Ward
Acting Clinical Nurse Managers to
screen for dysphagia in stroke patients,
allowing for timely provision of oral
medications, food and drink. This
training resulted in 42% of stroke
patients being able to safely resume
oral feeding and medication, instead
of delaying this until a Speech
Pathology assessment.
➤ To develop a therapeutic/rehabilitative manual handling of patients resource
manual
➤ To develop and implement a hemiplegic shoulder risk assessment and
management tool
➤ To commence redevelopment of CRC facilities under Cooinda Lodge
35

Review of Operations: Warragul Linen Service
Production Statistics
Over the year production has been
consistent at 117,760 kg per week,
slightly above the budget of 117,500 kg
per week. There was 18,053,967 items
processed, including sheets, pillowcases,
face washers and towels.
Financial Performance
The business returned a net profit
slightly higher than budget. This
result was achieved despite several
unfavourable variances in lower income
due to changed work practices by a
major customer and the higher than
budgeted costs for fuel, long service
leave, sick leave and enterprise
bargaining agreement costs. Increased
demand from February by several
healthcare customers was easily
accommodated with the newly
commissioned equipment.
This Year
The linen supply agreement to supply
linen to Southern Health sites ended
Profile
The Warragul Linen Service (WLS) is one of the largest and most efficient linen
services in Victoria, employing 183 staff. The WLS is a successful business unit
of the Group and is highly regarded as a laundry operation by the industry
and the market. Clients include the Caulfield General Medical Centre,
Monash Medical Centre, The Alfred and Dandenong hospitals and the
Parkview-on-St Kilda Road and Enterprize Hotels. The Linen Service is
co-located on the West Gippsland Hospital site.
Objectives
1. Complete major re-development of washroom and achieve efficiency targets
2. Reduce water usage by 6m litres
3. Continue to grow the business
4. Enhance staff training programs
5. Maintain linen supply to current customers that have contracts ending
during the year
6. Implement production monitoring and measuring tools
Outcomes
in June. Southern Health represents
55,000kg per week of the WLS
customer base. WLS successfully
retained the tender to supply linen
directly to Southern Health, including
the new Casey Hospital at Berwick.
The $1m upgrade of the washroom
was completed in February. The
upgrade included a state of the art
pre-sorting linen transfer system linked
to a fully automatic monorail bag
storage system that loads a new
continuous batch washer. The upgrade
reduced water consumption by 5%,
created cost savings and increased
capacity to allow the business to
continue to build on past sound
financial results. A key result has
been energy reductions.
A highlight this year, was the
announcement of WLS as the winner
of the ‘service providers’ category at
the prestigious Savewater! Awards held
in October. The Awards, held during
1. $1m upgrade of washroom completed
2. SaveWater Award received in recognition of water usage saving of 12m litres
3. Targeted business growth strategy developed
4. Eight staff completed Certificate IV in Frontline Management
5. Successfully retained Southern Health contract
6. Production measuring and monitoring group established
National Water Week, recognise and
reward outstanding achievement in
water conservation across Victorian
businesses, community groups,
individual and government
departments and agencies.
A key objective of the business is staff
training. Eight supervisors and senior
staff undertook and successfully
completed Certificate IV in Frontline
Management.
The change in focus from “Service
and Quality” to “Excellence in Linen
Management” is marketed well and
our Customer Service Team regularly
monitor customer linen usage to make
savings at customer sites.
Quality
The WLS successfully maintained its
certification with AS/NZS ISO
9001:2000 Quality Management
Systems. The annual customer survey
results illustrate compliance with quality
goals.
Occupational Health and Safety
Ongoing risk assessments and reviews
ensure a transparent and co-operative
approach to OH&S compliance. This
provides the opportunity to continually
adjust work practices to address any
identified changes to improve the safety
of our staff and contractors.
Outlook
The WLS business is well placed to
continue its financial contribution to
the Group. This opportunity has been
enhanced through the investment in
new equipment and supporting the
quality people that staff the
organisation. The marketing plan
to expand into Gippsland will be
developed and applied in order to
augment further business opportunities
in the region.
WLS staff Sharon Mildren and Scott Morrison
place linen at the beginning of the new
washroom system installed in February.
Future Directions
➤ Identify production improvement systems
➤ Expand linen management to sites with bulk linen delivery systems
➤ Review employment process to ensure recruitment process supports the
culture of the organisation
➤ Continue to grow the business in the Gippsland area
36

Our Community: Volunteers
We enjoy a wonderful relationship with our community. The
generosity of countless individuals, service clubs and other
groups assists us to improve the care we provide to our
patients, clients and residents.
The Volunteer program operates
under guidance from the Volunteer
Facilitator and individual area
Volunteer Coordinators. A new
volunteer area was established this
year with the commencement of the
Community Kitchens project. Twelve
new volunteers attended orientation
in June. The volunteers assist in
a variety of ways, for example,
providing practical help and advice,
companionship, a mobile library
service, woodwork, music, craft,
op shop duties and a range of
other activities. Volunteers are
highly valued by clients, residents
and staff, bringing with them skills
and expertise, fresh ideas, warmth
and care. A morning tea to thank
volunteers was held at West Gippsland
Hospital during National Volunteer
Week. On a sad note, Drouin Auxiliary
volunteers Fran Bickerton and Tess
Harper passed away during the year.
Fran and Tess contributed many years
service to the Auxiliary through their
support of the Drouin Opportunity
Shop.
Heartbeat
The Heartbeat group raise money
for cardiac-related activities and
provide support to people who have
undergone cardiac surgery. This year
the group raised $2,209.00. Donations
included a pulse oximeter for the
cardiac rehabilitation group and a
CD player for the cardiac stress testing
facility. Member Gwen Mulconry was
awarded an Australia Day medallion in
January for her contribution to the
community. WGHG Life Governorships
were awarded to members Doug Clark,
Lorraine Price and Malcolm Porter for
their services spanning 10 years.
Drouin Auxiliary
Thanks to the dedication of a
wonderful group of volunteers, the
Drouin Auxiliary continues to run a
very profitable opportunity shop in
Drouin raising funds for WGH. The
hard work of volunteers and generous
donations from the community
resulted in $93,000 from sales. Special
sales held during the year attracted
new customers. Volunteer Ian Mallows
was acknowledged for his tireless
efforts when presented with a WGHG
Life Governorship at the Annual
General Meeting in October. This year
the Auxiliary donated $61,694 to
purchase two delivery suite beds for
the Midwifery Unit and a range of
pressure relieving equipment for WGH.
Improvements to the shop this year
included new vinyl flooring and
additional shelving.
Trafalgar Auxiliary
The Trafalgar and District Community
Opportunity Shop raises money for
Andrews House, the Trafalgar
Community Services division and
the Trafalgar Youth Resource Centre.
A small band of committed Trafalgar
residents have been operating the
shop now for eight years. This year
the shop distributed $12,673 to
Andrews House to purchase three
beds, song books, teapots and an
additional sail for the outdoor
entertaining area.
Rawson Auxiliary
The Rawson Auxiliary raises funds
to support services offered at the
Rawson Community Health Centre.
Fundraising events are well supported
with countless community members
willing to help out. $13,617 was raised
throughout the year. A wonderful
effort! The progressive dinner held in
October raised $978. The major raffle
raised $3,200.This year, the Auxiliary
donated a treadmill and exercise bike
to assist in health promotion activities
offered at the Centre. The Centre’s
community bus was utilised
extensively during the bush fires
in February. Local sawmill, Micah’s
sawmill, donated $2,447 to the
Centre this year from the sale
of wood off-cuts.
Palliative Care Service Auxiliary
The auxiliary provides wonderful
assistance in supporting staff, and
helps clients facing terminal illnesses.
The volunteers receive specialised
training for this unique area of work.
Volunteers assist the Palliative Care
and District Nursing Services by
visiting clients in their homes, giving
carers a much-needed break and just
being there to help. This year three
volunteers attended the Gippsland
Palliative Care Forum in Lakes
Entrance. In November, the auxiliary
conducted a remembrance ceremony
for family and friends who lost loved
ones throughout the year. Volunteers
were trained in safe transfer of client
practices.
WGH Drouin Auxiliary donated $61,000 to various projects throughout the year.
Shop volunteer Judy Young (right) presents a cheque for $37,800 to Ward 5
Clinical Nurse Manager Caroline Edwards watched by Auxiliary members
Joy Baxter, Alice Nunan, James White, Enid Cassels and Carol Mallows.
The donation purchased two delivery suite beds for the Midwifery Unit.
37

Our Community: Fundraising
$000
700
600
500
400
300
200
100
0
Fundraising Income 2002 - 2006
2006 361
2005 276
2004 331
2003 649
2002 274
The West Gippsland community continues to
generously support the work of WGHG.
Fundraising
The Group continues to benefit from
the overwhelming generosity of the
local community. Fundraising is
conducted in accordance with the
Fundraising Appeals Act 1998.
This year $361,000 was raised from
donations, bequests, raffles and special
events. All donations of $2 or more
are tax deductible and receipts are
issued promptly. Fundraising is vital
in making a difference to the care
and comfort of patients, residents
and clients. A special project this
year was the ‘Let’s add colour to Kids
Ward’ promotion. Several local primary
schools participated raising over
$2,000 towards painted murals in
the Paediatric Ward.
Bequests
We are grateful to Mr Len Colliver
of Bunyip and Ms Kathleen Hurst
of Yarragon for making provision for
WGHG in their Will. Bequests were
received from their estates this year.
The ongoing benefit from the estate
of the late Mr Charles Haworth
provided $41,000 this year. The
Estate of William Payne, through the
Estate’s trust provided $7,000. We
encourage you to consider West
Gippsland Healthcare Group in
your Will. If you would like further
information about leaving a bequest,
please contact the Public Relations
Office on 5623 0600. All enquiries are
treated with the strictest confidence.
Murray to Moyne Cycle Relay
The Group entered the Murray
to Moyne Cycle relay for the tenth
consecutive year. Each year riders and
support crew raise funds for a specific
area of the Group. This year money
was raised for the Community Services
Division. The relay goes from Echuca
to Port Fairy, a distance of 520 kms.
The riders ride in relay and must
complete the event in 24 hours. A
support crew of drivers, cooks and
masseurs ably supports the riders.
The ride raised $22,000 through
sponsorship, donations and
fundraising events, taking the total
tally to over $200,000 since
participating in the event. A special
function was held in June to celebrate
the 10 years of the ride’s success. Over
70 participants and riders gathered to
share stories and reminisce about
their Murray to Moyne experiences.
Public Relations
The Group continues to enjoy
wonderful community support from
the people of West Gippsland and
beyond. The community help us
in so many vital ways, for example,
financially, with in-kind gifts, by
providing assistance and offering
to become volunteers. The Group
actively promotes its services through
the local media who give us great
support. Groups are welcome to
tour WGHG facilities. WGHG guest
speakers are regularly asked to speak
at community meetings. The public is
invited to special occasions such as
the Annual General Meeting and
official openings. Outlook, a newsletter
for supporters, donors and interested
Fundraising Highlights:
● bequests to the Group
totalled $107,000
● the sale of daffodil bulbs
raised $13,500 thanks
to the generosity of Blyth
Bros who have supplied
the daffodils for over
11 years now
● the Murray to Moyne
cycle relay raised
$22,000. A range
of equipment was
purchased for the
Community Services
division with the proceeds
● thanks to the generosity
of local farmers, the
annual Calf Appeal
Day raised $2,800
● the ‘Let’s add colour to
kid’s ward’ primary school
fundraising campaign
raised over $2,000
community members is published
regularly throughout the year. The
Annual Report and the Quality of Care
report are also available to the public.
Future Directions
➤ Hold a charity golf day in
conjunction with the Warragul
Country Club
➤ Participate in the Murray to
Moyne Cycle Relay for the
eleventh consecutive year
Frank Gibbons of the Robin Hood Inn presents CEO Ormond Pearson with a cheque for
$2,258 representing the proceeds raised at the Bathurst fundraising day watched by
(L-R) Mark Revitt-Mills and son Paul, Allan Tyres, Jason Crawford, Anita Gibbons, Terry Lee
and John Noske.
38

Our Community: Donations and Sponsorships
We say thank you to each member of our community who contributed financially
to West Gippsland Healthcare Group throughout the year.
Your support enhances the care and comfort we provide to our patients, residents and clients.
$61,000
WGH Drouin Auxiliary
$57,000
Estate of Mr Len Colliver
Presenting a donation to
Oncology Clinical Nurse
Manager Anny Byrne are
CWA Central Gippsland
group representatives
Gwen Mason (left) and
Anne Davies (right).
$41,000
Estate of Mr Charles Haworth
$10,001 - $20,000
Trafalgar & District Community
Opportunity Shop
Mr A Walters
Warragul Rotary Club
$5,001 - $10,000
Estate of Ms Kathleen M Hurst
Estate of Mr William J Payne
Mrs W Reed
$2001 - $5000
Cooinda Support Group
Mr F Hamilton
Mrs N Hartley
Karawah Incorporated
Robin Hood Inn
Mr J Soutar
$1,001 -$2,000
Club 88
Mr M & Mrs D Corby
Drop-in Day Centre of Trafalgar
Heartbeat
Mr G Hoddinott and Family
Star FM Radio Station
Uncle Bob’s Club
Warragul Golf Club – Ladies Section
Warragul Lions Club
Warragul Old Time Dance Club
West Gippsland Chorale
WGH Past Nursing Graduates
Mrs S Ziebell
$501 - $1,000
All Rivers Motor Inn
Baw Baw Roadsafe
Mrs E Blaby
Courthouse Restaurant
CWA Central Gippsland Group
Drouin Lions Club
Mrs M Godwin
Independence Solutions
Kingston Property Constructions
Leitch Family
St Paul’s Anglican Gramma
Junior School
The Warragul Club-Downtowner
Mr R Tink
Vin Rowe Farm Machinery
Warragul Bowling Club
Warragul Country Club
Warragul Linen Service
Warragul Nissan
Mrs B Webster
West Gippsland Masonic Lodge
Catering Section
Westpac Banking Corporation
$300 - $500
Mr R Baudinette
Mr S Dawson
Drouin Rotary Club
Mrs L Frost
Mr L Galley
Mr C Georgiou
Hallora Ladies Social Club
Health Insurance Commission
$300 - $500 continued
Mr R & Mrs M Meyer
Miss T O’Connor
Mr B & Mrs A Pratt
Mrs F Rogers
Shop Eight Design
Smith McCarthy Wilson
Mrs I Thomson
Mr P Van Venrooy
Warragul Lioness Club
Warragul North Primary School
Mr A Whyatt & Ms F Porter
Mrs E Woolfe
Total: $361,000
Under $300
A number of donations have been
received during the year for which
we are very grateful.
Anonymous Donations
A number of anonymous donations
have also been received, and we
gratefully acknowledge these.
In-Memoriam Donations
We receive many in-memoriam
donations following the death of
a loved one, for which we are most
appreciative.
These donations total $10,215.
39

Staff List: Our Staff
Executive Team
Chief Executive Officer
Ormond Pearson BHSc(Mgt) AFCHSE CHE FPNA FAIM FAICD
Director of Finance
Haja Mohideen CPA ACMA(UK) GradDip(AppInfoSys)
Director of Medical Services
Dr Simon Fraser MBBS FRACS MPPM MRACMA
Director of Nursing
Anne Curtin RN RM CorCareCert GradDipHSM MRCNA
Director of Community Services
Linda McCoy BA GradDipMgt AFCHSE CHE AIMM
General Manager Warragul Linen Service
William Crotty ANIA
Medical Staff
Anaesthetists:
Matthew Acheson FANZCA MBBS (commenced 04/06)
Geoffrey Campbell MBBS DipRACOG DipAnaes
Karl Hood MBBS (Hons) GradDipRm(Anaes) FRACGP FACRRM
Dale Schnapp MBBS FACA DipABA (resigned 08/05)
Robert Sinnett MBBS FFARACS FANZCA
Dermatologist:
Ronald Rosanove BSc MBBS
Gastroenterologist:
Barbara Demediuk MBBS FRACP
General Practitioners:
Paba Atapattu MBBS
Cameran Azad MBChB (commenced 09/05)
Mark Bensley MBBS FRACGP DipRACOG
Sandeep Bhagat MBBS (commenced 08/05)
James Brown MBBS DipRACOG FRACGP
Geoffrey Campbell MBBS DipRACOG DipAnaes
Roberto Celada MD (Mexico) AMC CertDipObs RACOG, FRACGP GradDipPallMed
Brian Cole MBBS FRACGP FRACMA
Michael Crameri MBBS DipRACOG FRACGP
Dilip Dhillon MBBS FRACGP LFOM
Vincent Dinh MBBS
Jennifer Eury MBBS FRACGP
Elizabeth Fitzgerald MBBS
Christopher Fogarty MBBS BMedSci DipRACOG DRACOG
Linda Ford MBBS (Hons) DipRACOG
Eileen Gourley MBBS CSCT
Steven Hall MBBS FRACGP
Karl Hood MBBS (Hons) GradDipRm(Anaes) FRACGP FACRRM
Stephen Jedynak MBBS
Biljana Jovanovic MBBS
Trish Kerbi MBBS DipPallMed
Thiru Ketheswaran MBBS
Michael Kunze MBBS FRACGP
Malcolm McKelvie MBBS (Hons) FRACGP
Jennifer Morley MBBS (Hons) DRACOG
Janine Payne MBBS (Hons) DipRACOG FRACGP
Edward (Mark) Rayner BSc (Hons) MBBS DipRACOG
Florea Roman MBBS
Cleo Sahhar MBBS FRACGP
Gregory Shuttleworth MBBS (Hons) DipRACOG
Louise Sterling MBBS (Hons)
Wayne Thompson BEd MBBS DipRACOG FRACGP
Julie Thompson MBBS GradDipEd (Women's Studies)
Jennifer Worboys MBBS FRACGP DipRACOG MPHC (commenced 09/05)
General Surgeons:
Paul Ah-Tye MBBS FRACS
Zeev Duib FRACS (commenced 10/05)
Phillip Harris MBBS FRACS
Nikolas Kosanovic MD FRACS
David Merenstein MBBS FRACS
Jennifer Senior MBBS FRACS
Medical Staff continued
Geriatrician:
Craig Clarke MBBS FRACP
Neurologist:
Graeme Jackson BSc(Hons) FRACP MBBS MD
Obstetricians and Gynaecologists:
Geoffrey Edwards MBBS MRCOG FRANZCOG DDU FRCOG
Harold (Lal) McLennan MBBS FRCOG FRANZCOG DDU
Ian Pearson (resigned 04/06)
Luk Rombauts MD PhD FRANZCOG
David Simon MBBS DTM&H FRACGP FRANZCOG
Oncologists:
Kylie Mason MBBS FRACP FRCPA (commenced 12/05) relieving
John Scarlett MD BS FRACP FRCPA
Ophthalmologists:
Pradeep Madhok MBBS MD FRACS FRACO
Julian Sack MBBS ChFCS (Ophthal) FRACO
Mark Troski MBBS FRACO FRACS
Orthopaedic Surgeons:
George Owen MBBS FRACS FAOA
Peter Rehfisch MBBS FRACS
Malcolm Thomas MBBS FRACS
Otorhinolaryngologist:
Robin Hooper MBBS FRCS (Ed) FRCS FRACS
Paediatricians:
Charlie Hamilton MA MBBS FRCPCH MRCP (UK) DCH DRCOG
Sari Hayllar MBBS FRACP
Michael Nowotny MBBS BMedSci FRACP
Christopher Smith MBBS FRACP
Paediatric Surgeons:
Prof John Hutson MBBS MD FRACS
Christopher Kimber MBBS FRACS FRCS (commenced 9/05)
Neil McMullin MBBS FRACS (commenced 12/05)
Pathologists:
Barry Cairns RFD MBBS FRCPA
Stephen Chan MBBS
Gary Grubb MBBS PhD BMedSci FRCPA
Brendan Morrison BDS MB BCh BAO FRCPA
Patrick Van Der Hoeven MD FRCPC FRCPA
Physicians:
Mortimer Fitzgerald BSc (Hons) MBBCh (NIreland) FRACP
Bretton Forge MBBS (Hons) FRACP
Bruce Maydom MBBS (Hons) FRACP
Alistair Wright MBBS (Hons) FRACP
Plastic Surgeon:
Thomas Robbins MBBS FRCS (Ed) FRCS FRACS
Psychiatrist:
Bruce Osborne BMedSci MBBS FRANZCP FRACGP FRACMA MPM
Radiologists:
Roger Bain MBBS FRACR
Damian Black MBBS FRACP (resigned 01/06)
Bobert Brownlee MBBS FRACR
Tissa Kulatunge MBBS MD
Kelvin Stribley MBBS FRACR
Anthony Zammit MD FRCR DMRD
Urodiagnostic/Urodynamics:
Craig Clarke MBBS FRACP
Urologists:
Christoher Love MBBS FRACS
William Straffon MBBS FRCS (Ed) FRCS (London) FRACS (resigned 06/06)
Vascular Surgeon:
Alan Saunder FRACS
Honorary Dental Surgeons:
Lindsay Bishop BDSc
Ian Brooker BDSc
Yvonne Brown BDSc
Hong Chan BDSc
Peter Cliff BDSc
David Griffiths BDSc
40

Staff List: Our Staff
Allied Health
Dietitians:
Ulla Schmidt Reg Dietitian GradCertPaedNutrn&Dietetics
Health Information Services:
Diane Draper BMedRecAdmin DipFMI
Occupational Therapy:
Sue Aberdeen BAppSc(OT) AccOT
Physiotherapy:
Richard Adams BAppSc(Physio)
Speech Pathology:
Anne Ballantyne LACST
Lindy Watson LACST
Nursing Services
Deputy Director of Nursing/Patient Services Manager:
Kathy Bailey RN FRCNA GradDipCritCare (Emergency) MN (commenced 09/05)
Amanda Cameron RN PN BHealthSci(Nursing) GradDipNursing(CriticalCare)
(resigned 07/06)
Associate Director of Nursing (Projects):
Diane More RN BArts(Psych&Sociol) DipBuilding
Associate Director of Nursing (Nursing Services):
Doreen Macafee RN CertPallCare CertComBusApplic
Staff Development Manager
Paul Osborn BA RN MN MEdSt
Nurse Educators:
Jeanette Dyason BAppSci(Nursing) GradDipCritCare GradDipAdvNursg-ClinTeachg
Janet Boyce BNursing GradDipAdvNursing-ClinTeachg
CertIVWorkplaceTraining&Assessment
Nursing Coordinators:
Mary Austin RN RM BA GradDipBus CertS&ICNeonatalIntensive CareCert MAIM
Elizabeth Fenwick RN RM BSocSc CertPallCare
Glenda Jarred RN CertGastroenterology
Cathy Marshall RN MMgt GradDipHealthEco BN CorCareCert PaedIntensiveCareCert
(commenced 05/06)
Janet Moore RN BNursingPrac
Pam Owen RN BN
Tania Piner RN CertCritCareNursing DipAppSci(Nursing)
Pamela Sharman RN BAppSci (AdvNursing-Admin)
Marie Smith RN RM
Coralie Tyrrell RN CertS&IC CertComBusApplic DipHlthSci(Infcntrl)
Kerrie Wright RN RM BNPrac(Paeds)
Joyce Williams RN
Clinical Nurse Consultants:
Cardiology:
Patricia Nankervis RN CorCareCert
Diabetes Education:
Donna Ablett RN BNursing BNursingPrac(Nephrology) GradDipHealthSci(DiabetesEdn)
Infection Control:
Coralie Tyrrell RN CertS&IC CertComBusApplic DipHlthSci(Infcntrl)
Stomal Therapy:
Linda Aberdeen RN GradStomalTherapyCert
Breast Care:
Elizabeth McMahon RN BHealthSci(Nursing) Breast Care Nurse(accred)
Clinical Nurse Managers
Andrews House:
Elizabeth Reeves RN DipTeach CertMangSks ExtCertHSM DipBus
GradDipHealthServsMment
Cooinda Lodge:
Jan Bennett RN CertSocialGerentology GradDipAdvNursing(Ger) MRCNA
District Nursing:
Susanne Allen RN
Emergency Department:
Sue Colby RN GradCertNursing (Emergency) (commenced 10/05)
Haemodialysis:
Robert Stefanovski RN CertNephrology
Nicole O’Brien RN BNursPrac(Nephrology)
High Dependency Unit:
Judy Redman RN CritCareCert
Oncology:
Anny Byrne RN BAppSci(Nursing) Breast Care Nurse(accred) GradCert Cancer Care
Cert Chemotherapy Practice
41
Nursing Services continued
Operating Room:
Shirley Gleeson RN OpRoomCert CertS&IC
Post Acute Care:
Peter Green RN CertCritCare&Emerg CertEmergNursing
Pre-Admisson:
Sandee Bicknell RN PeriopCert PeriAnaesthCritCareCert (resigned 10/05)
Stephanie Ives RN BComp(System Development) AssocDipAppSci(Computing)
(commenced 10/05)
Ward 2/Paediatrics/Day Surgery:
Helen Dunlop RN RM GradCertPaeds
Medical Ward 3:
Bernadette McKenna RN BNursing CertIVWorkplaceTraining&Assessment
Midwifery Ward 5:
Caroline Edwards RN GradDipMidwifery&Women’sHealth (commenced 07/05)
Librarian
Anne Boyle DipLib
Community Services
Aboriginal Hospital Liaison Officer:
Dot Mullett
Cognitive Dementia and Memory Service (CDAMS)
Elizabeth Fraser RN BAppSci(Nursing) MRuralHealth
Community Health Nurse/Rawson site manager
Alan Lowe RN
Continence Service:
Fiona McLennan RN BNursPrac(Nephrology) CertCardioThoracicIntCare GradCertHealth
Program Manager
Margaret Wallace BSc BSocWork: GradDipEdn
Finance Services
Finance Manager:
Justin Walsh BBus(Acc) BBus(Bank&Fin) CPA
Graduate Accountant:
Darren Warwick BAppSci(Orth) GradDipAcc DOBA ASA
Personnel Officer:
Anne Pryjmak
Purchasing Officer:
James White
Supply Officer:
Sean McLeish
Warragul Linen Service
Administration Manager: Gary Smart BBus ASA
Production Manager: Nanette Gilligan
Support Services
Executive Assistant:
Alyson Mills
Public Relations Manager:
Pam Dyson MFIA
Customer Services Manager/Quality Coordinator:
Heather Gillespie RN RM CertS&IC
Consulting Suites Manager:
Lois Hernadi
Environmental Services Manager:
Maria Kraszewski CertEnSerMgt CertEFTMgt CertIVAssess&WorkplaceTraining
Food Services Manager:
Ronald Clark MIHC (resigned 04/06)
Information Systems Manager:
Joseph Oppedisano BSc GradDipEd GradDipComp MACS
Manager – Engineering Services
Rob Odlum DipCivilEng MIEAust
Occupational Health and Safety Officer:
Brian Lemon IAA DipOH&S

Financial: Overview
The Group achieved a modest net
surplus of $310,000 after inclusion of
capital, depreciation and amortisation.
Given that activity targets for many
services were surpassed, this
demonstrates the strong commitment
to the delivery of health care services
to the community within the context
limited resources.
The acute program again exceeded
activity targets, resulting in an
additional $123,420 of expenditure
and reported an overall operating
loss of $1,003,000 (see notes 2a and
2b in financial statements). The Group’s
various business initiatives continue
to play a key role in the delivery of
financial sustainable health care
services.
The Warragul Linen Service reported
a profit of $465,000, however this year
inter-segment transactions and interest
income has been excluded to comply
with reporting changes (refer page 66).
The result is down on last year’s profit
of $655,000 due to contract renegotiations
with a key customer
and increased staffing costs.
Continued community support in the
form of donations and service in kind,
plays a significant role in the upgrading
and replacement of medical equipment,
which enhances the effectiveness and
delivery of our health care services.
This graphs shows the ratio of assets
funded by the Group and the assets
currently funded by borrowings. The graph
indicates the group continues to maintain
ownership of around 70% for every dollar
of assets held.
The Finance Department team ((L-R) Ildiko McCann, Marie Womersley, Dianne Grbic,
Darren Warwick, Colleen Lacorcia, Justin Walsh and Catriona Duncanson.
The Quick Asset Ratio graph, right, indicates
the Group’s ability to meet its financial
commitments during the next 60 days.
The Current Ratio graph indicates the Group’s
ability to meet its financial commitments during
the next twelve months. The current year ratio
and prior year comparative have declined due
to the A-IFRS requirement to disclose the
presently entitled portion of the long service
leave liability as a current liability. The current
year ratio also reflects the decline in cash
largely as a result of Stage III Redevelopment
being funded by the Group.
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0.0
2006
Equity/Assets - Viability
0.72
0.71
2005
0.73
2004
0.71
2003
5 Year Financial Comparison
0.75
2002
2.5
2.0
1.5
1.0
0.5
0.0
2.5
2.0
1.5
1.0
0.5
0.0
Quick Asset Ratio - Liquidity
1.04
2006
1.04
2006
1.16
2005
1.13
2005
1.73
2004
Current Ratio - Solvency
1.63
2004
1.68
2003
1.62
2003
1.58
2002
1.65
2002
2006 2005 2004 2003 2002
$000 $000 $000 $000 $000
Total Revenue 54,954 53,683 52,343 48,083 43,212
Total Expenditure 54,644 51,694 49,733 46,808 43,144
Operating Surplus 310 1,989 2,570 1,275 68
RetainedSurplus 6,867 6,557 4,568 1,998 723
Total Assets 51,745 50,823 44,582 41,838 38,155
Total Liabilities14,248 14,977 12,125 11,952 9,449
Net Assets 37,497 35,846 32,457 29,886 28,706
Total Equity 37,497 35,846 32,456 29,886 28,706
The Group recorded a surplus of $310,010 against a budgeted deficit of $902,565. The favourable variance is due
largely to the receipt of capital works project grants, primary health funding (the expenditure to which is yet to be
spent) and continued support from the community by way of donations.
42

Financial: Financial Results
OPERATING STATEMENT
FOR THE YEAR ENDED 30 JUNE 2006
Revenue from Operating Activities 2,2a 51,953 49,273
Revenue from Non-operating Activities 2,2a 1,225 1,473
53,177 50,747
Employee Benefits 2b (36,247) (33,609)
Non Salary Labour Costs 2b (3,313) (3,498)
Supplies and Consumables 2b (4,986) (4,633)
Other Expenses from Continuing Operations 2b (7,219) (7,347)
(51,764) (49,088)
Net Result From Continuing Operations
Before Capital & Specific Items 1,414 1,659
Capital Purpose Income 2,2a 1,777 2,921
Depreciation and Amortisation 3 (2,769) (2,607)
Assets Provided Free of Charge 2,2a, 2e 16
Expenditure Using Capital Purpose Income 2b (112)
NET RESULT FOR THE YEAR 310 1,989
This Statement should be read in conjunction with the accompanying notes.
Notes 2006 2005
($’000) ($’000)
43

Financial: Financial Results
BALANCE SHEET
AS AT 30 JUNE 2006
Notes 2006 2005
($’000) ($’000)
ASSETS
Current Assets
Cash and Cash Equivalents 4,15 6,931 8,155
Receivables 5,15 2,732 2,961
Other Financial Assets 6,15 3,409 4,080
Inventories 7 227 256
Prepayments 118 149
Total Current Assets 13,417 15,602
Non Current Assets
Receivables 5,15 315 828
Other Financial Assets 6,15 200
Property, Plant & Equipment 9 37,074 33,765
Other Non-Current Assets 8 740 628
Total Non-Current Assets 38,328 35,221
TOTAL ASSETS 51,745 50,823
LIABILITIES
Current Liabilities
Payables 10,15 2,066 2,958
Provisions 11 7,383 6,721
Other Liabilities 12,15 3,433 4,080
Total Current Liabilities 12,882 13,759
Non-Current Liabilities
Provisions 11 1,343 1,217
Other Liabilities 12 23
Total Non Current Liabilities 1,366 1,217
TOTAL LIABILITIES 14,248 14,977
NET ASSETS 37,497 35,846
EQUITY
Asset Revaluation Reserve 13a 1,401 1,401
Contributed Capital 13b 29,229 27,888
Accumulated Surpluses 13c 6,867 6,557
TOTAL EQUITY 13d 37,497 35,846
This statement should be read in conjunction with the accompanying notes.
44

Financial: Financial Results
STATEMENT OF RECOGNISED INCOME AND EXPENSE
FOR THE YEAR ENDED 30 JUNE 2006
Notes 2006 2005
($’000) ($’000)
Gain on Asset Revaluation 13a 1,401
NET INCOME RECOGNISED DIRECTLY IN EQUITY 1,401
Net result for the year 310 1,989
TOTAL RECOGNISED INCOME AND EXPENSE FOR THE YEAR 310 3,390
This statement should be read in conjunction with the accompanying notes.
45

Financial: Financial Results
CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 JUNE 2006
2006 2005
($’000) ($’000)
Notes Inflows/(Outflows) Inflows/(Outflows)
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts
Government Grants 38,360 36,991
Patient and Resident Fees Received 2,008 1,592
Private Practice Fees Received 219 264
GST recovered from Australian Tax Office (ATO) 1,889 2,024
Interest Received 518 580
Other Receipts 12,772 11,414
Payments
Employee Benefits Paid (35,765) (33,927)
Fee for Service Medical Officers (2,723) (3,061)
Payments for Supplies & Consumables (10,246) (8,356)
GST Paid to ATO (4,737) (4,895)
Cash Generated from Operations 2,294 2,626
Capital Grants - Government 901 2,210
Capital Donations & Bequests 361 260
NET CASH FLOWS FROM OPERATING ACTIVITIES 14 3,556 5,096
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Properties, Plant & Equipment (6,096) (6,484)
Proceeds from Sale of Properties, Plant & Equipment 267 550
Purchase of Investments (200)
Proceeds from Sale of Investments 5
NET CASH USED IN INVESTING ACTIVITIES (6,029) (5,929)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Borrowings 50
Contributed Capital from Government 1,198
NET CASH FLOWS FROM FINANCING ACTIVITIES 1,248 -
NET (DECREASE) IN CASH HELD (1,225) (832)
CASH HELD AT BEGINNING OF FINANCIAL YEAR 8,155 8,987
CASH HELD AT END OF FINANCIAL YEAR 4 6,931 8,155
This statement should be read in conjunction with the accompanying notes.
46

Financial: Financial Results
Notes to and forming part of the Financial Statements for the year ended 30 June 2006
Note 1: STATEMENT OF ACCOUNTING POLICIES
This general-purpose financial report of the Group has been prepared on an accrual basis in accordance with the
Financial Management Act 1994, Accounting Standards issued by the Australian Accounting Standards Board (AASB)
and Urgent Issues Group Interpretations. Accounting Standards include Australian equivalents to International Financial
Reporting Standards (A-IFRS).
The financial statements were authorised for issue by the Board of Management on 31st August 2006.
Basis of Preparation
The financial report is prepared in accordance with the historical cost convention, except for the revaluation of certain
non-current assets and financial instruments which, as noted, are at valuation. Cost is based on the fair values of the
consideration given in exchange for assets.
West Gippsland Healthcare Group changed its accounting policies on 1 July 2004 to comply with A-IFRS. The
transition to A-IFRS is accounted for in accordance with Accounting Standard AASB 1 First-time Adoption of Australian
Equivalents to International Financial Reporting Standards, with 1 July 2004 as the date of transition. An explanation
of how the transition from superseded policies to A-IFRS has affected the Health Service’s financial position, financial
performance and cash flows is discussed in note 23. The Health Service has elected to apply Accounting Standard
AASB 2005-04 Amendments to Accounting Standards (June 2005), even though the Standard is not required to be
adopted until annual reporting periods beginning on or after 1 January 2006.
In the application of A-IFRS, management is required to make judgments, estimates and assumptions about carrying
values of assets and liabilities that are not readily apparent from other sources. The estimates and associated
assumptions are based on historical experience and various other factors that are believed to be reasonable under the
circumstance, the results of which form the basis of making the judgments. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the
revision and future periods if the revision affects both current and future periods.
Judgments made by management in the application of A-IFRS that have significant effects on the financial statements
and estimates with a significant risk of material adjustments in the next year are disclosed throughout the notes in the
financial statements. The estimates and associated assumptions are reviewed on an ongoing basis.
Accounting policies are selected and applied in a manner which ensures that the resulting financial information
satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or
other events is reported. The accounting policies set out below have been applied in preparing the financial
statements for the year ended 30 June 2006, the comparative information presented in these financial statements
for the year ended 30 June 2005, and in the preparation of the opening A-IFRS balance sheet at 1 July 2004, the
Health Service’s date of transition, except for accounting policies in respect of financial instruments. The Health service
has not restated comparative information for financial instruments as permitted under the first-time adoption transitional
provisions. The accounting policies for financial instruments applicable to the comparative information and the impact
of the changes in these accounting policies is discussed further in note 1(y). Where practicable, comparative amounts
are presented and classified on a basis consistent with the current year.
(a) Reporting Entity
The financial statements include all the controlled activities of the Health Service. The Health Service is a “not-forprofit”
entity and therefore applies the additional Aus paragraphs applicable to “not-for-profit” entities under the
Australian equivalents to IFRS.
(b) Rounding Off
All amounts shown in the Financial Statements are expressed to the nearest $1,000.
(c) Cash and Cash Equivalents
Cash and cash equivalents comprise cash on hand and in banks and investments in money market instruments,
net of outstanding bank overdrafts.
(d) Receivables
Trade debtors are carried at nominal amounts due and are due for settlement within 30 days from the date of a
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.
(e) Inventories
Inventories include goods and other property held either for sale or for distribution at no or nominal cost in the
ordinary course of business operations. It excludes depreciable assets. Inventories held for distribution are measured
at the lower of cost and current replacement cost. All other inventories are measured at the lower of cost and net
realisable value. Cost for all other inventory is measured on the basis of weighted average cost.
(f) Other Financial Assets
Investments and other financial assets are recognised and derecognised on trade date where purchase or sale of
an investment is under a contract whose terms require delivery of the investment within the timeframe established
by the market concerned, and are initially measured at fair value, net of transaction costs. Other financial assets are
classified between current and non current assets based on the Board of Management’s intention at balance date
with respect to the timing of disposal of each asset.
47

Financial: Financial Results
Notes to and forming part of the Financial Statements for the year ended 30 June 2006
The Health Service classifies its other investments in the following categories: financial assets at fair value through
profit or loss, loans and receivables, held-to-maturity investments, and available-for-sale financial assets.
Management determines the classification of its investments at initial recognition.
Investments held for trading purposes are classified as current assets and are stated at fair value, with any resultant
gain or loss recognised in profit or loss. Where the Group has the positive intent and ability to hold investments to
maturity, they are stated at amortised cost less impairment losses. Other investments held by the Group are classified
as being available-for-sale and are stated at fair value. Gains and losses arising from changes in fair value are
recognised directly in equity, until the investment is disposed of or is determined to be impaired, at which time to the
extent appropriate, the cumulative gain or loss previously recognised in equity is included in profit or loss for the
period.
Interest revenue from other financial assets is recognised on a time proportionate basis that takes into account the
effective yield on the financial asset.
(g) Non Current Physical Assets
Land and buildings are measured at the amounts for which assets could be exchanged between knowledgeable
willing parties in an arm’s length transaction. Plant, equipment and vehicles are measured at cost.
(h) Revaluation of Non-Current Assets
Subsequent to the initial recognition as assets, non-current physical assets, other than those carried at cost, are
revalued with sufficient regularity to ensure that the carrying amount of each asset does not differ materially from
its fair value at the reporting date. This revaluation process normally occurs every three to four years for assets with
useful lives of less than 30 years or six to eight years for assets with useful lives of 30 or greater years. Revaluation
increments or decrements arise from differences between an asset’s depreciated cost or deemed cost and fair value.
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 as an expense
in net result, the increment is recognised immediately as revenue in net result.
Revaluation decrements are recognised immediately as expenses in the net result, except that, to the extent that a
credit balance exists in the asset revaluation reserve in respect of the same class of assets, they are debited directly
to the asset revaluation reserve.
Revaluation increases and revaluation decreases relating to individual assets within a class of property, plant and
equipment are offset against one another within that class but are not offset in respect of assets in different classes.
Revaluation reserves are not transferred to accumulated funds on derecognition of the relevant asset.
Revaluation of Land and Buildings
Land and buildings were revalued on 1st July 2004. This date was chosen to assist the Group in assessing fair
value under the new Australian equivalent International Financial Reporting Standards (A-IFRS). The valuation
was performed by ValueIt Pty Ltd as agent for the Valuer-General of Victoria and was prepared on the basis of
depreciated replacement cost which reflects the current market price for replacing the service potential of the asset
minus the accumulated amount of depreciation for the asset.
As a result of the revaluation, the value of land increased by $912,876 and buildings increased by $488,103.
As there was no Asset Revaluation Reserve (ARR) balance in existence prior to the valuation, an increment of
$1,400,979 was credited directly to the ARR.
(i) Depreciation
Assets with a cost in excess of $1,000 are capitalised and depreciation has been provided on depreciable assets
so as to allocate their cost - or valuation - over their estimated useful lives using the straight-line method. Estimates
of the remaining useful lives for all assets are reviewed at least annually. The depreciation charged is 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.
2006 2005
Buildings Up to 40 years Up to 40 years
Plant & Equipment Up to 20 years Up to 20 years
Motor Vehicles Up to 4 years Up to 4 years
Medical Equipment Up to 20 years Up to 20 years
Computers & Communications Up to 3 years Up to 3 years
Furniture & Fittings Up to 20 years Up to 20 years
Other Up to 10 years Up to 10 years
Linen Up to 5 years Up to 5years
(j) Impairment of Assets
All assets are assessed annually for indications of impairment, except for:
● Inventories
● Assets arising from construction contracts
● Assets arising from employee benefits
● Financial instrument assets
If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds
their recoverable amount. Where an asset’s carrying value exceeds its recoverable amount, the difference is written-off
48

Financial: Financial Results
Notes to and forming part of the Financial Statements for the year ended 30 June 2006
by a charge to the operating statement except to the extent that the write-down can be debited to an asset
revaluation reserve amount applicable to that class of asset.
The recoverable amount for most assets is measured at the higher of depreciated replacement cost and fair value
less costs to sell. Recoverable amount for assets held primarily to generate net cash inflows is measured at the
higher of the present value of future cash flows expected to be obtained from the asset and fair value less costs to
sell. It is deemed that, in the event of the loss of an asset, the future economic benefits arising from the use of the
asset will be replaced unless a specific decision to the contrary has been made.
(k) Payables
These amounts represent liabilities for goods and services provided prior to the end of financial year and which
are unpaid at balance date. The normal credit terms are nett 30 days.
(l) Provisions
Provisions are recognised when the Health Service has a present obligation, the future sacrifice of economic
benefits is probable, and the amount of the provision can be measured reliably.
The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. Where
a provision is measured using the cashflows estimated to settle the present obligation, its carrying amount is the
present value of those cashflows.
(m) Resources Provided and Received Free of Charge or for Nominal Consideration
Resources provided or received free of charge or for nominal consideration are recognised at their fair value.
Contributions in the form of services are only recognised when a fair value can be reliably determined and the
services would have been purchased if not donated.
(n) Functional and Presentation Currency
The presentation currency of the Health Service is the Australian dollar, which has also been identified as the
functional currency of the Health Service.
(o) Goods and Services Tax
Revenue, expenses, assets and liabilities are recognised net of GST with the exception of receivables and payables
which are stated inclusive of GST. Where the amount of GST incurred is not recoverable, the GST payable 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 Office (ATO) is included in the Balance Sheet. The GST component of
a receipt or payment is recognised on a gross basis in the Cash Flow Statement in accordance with AASB 107
Cash Flow Statements.
(p) Employee Benefits
Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave, accrued days
off and long service leave when it is probable that settlement will be required and they are capable of being
measured reliably.
Measurement of short-term and long-term employee benefits
Short-term employee benefits are those benefits that are expected to be settled within 12 months, and are
measured at their nominal values using the remuneration rate expected to apply at the time of settlement. They
include wages and salaries, annual leave, long service leave and accrued days off that are expected to be settled
within 12 months.
Long-term employee benefits are those benefits that are not expected to be settled within 12 months, and are
measured at the present value of the estimated future cash outflows to be made by the Health Service in respect
of services provided by employees up to reporting date. They include long service leave and annual leave not
expected to be settled within 12 months.
The present value of long-term employee benefits is calculated in accordance with AASB 119 Employee Benefits.
Long-term employee benefits are 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 outflows.
Classification of employee benefits as current and non-current liabilities
Employee benefit provisions are reported as current liabilities where the Health Service does not have an
unconditional right to defer settlement for at least 12 months. Consequently, the current portion of the employee
benefit provision can include both short-term benefits, that are measured at nominal values, and long-term benefits,
that are measured at present values. Employee benefit provisions that are reported as non-current liabilities also
include long-term benefits such as non vested long service leave (i.e. where the employee does not have a present
entitlement to the benefit) that do not qualify for recognition as a current liability, and are measured at present
values.
Sick Leave
Sick leave entitlements are not accrued by West Gippsland Healthcare Group as the sick leave taken each year
does not exceed new entitlements.
49

Financial: Financial Results
Notes to and forming part of the Financial Statements for the year ended 30 June 2006
Superannuation
Defined contribution plans
Contributions to defined contribution superannuation plans are expensed when incurred.
Defined benefit plans
The amount charged to the Operating Statement in respect of superannuation represents the contributions made
by the Group to the superannuation plan in respect to the current services of current Health Service staff.
Superannuation contributions are made to the plans based on the relevant rules of each plan.
The Health Service does not recognise any defined benefit liability in respect of the superannuation plan because
the Health Service has no legal or constructive obligation to pay future benefits relating to its employees; its only
obligation is to pay superannuation contributions as they fall due. The Department of Treasury and Finance has
assumed responsibility for the defined benefit liability of the Health Service, and administers and discloses the
State’s defined benefit liabilities in its financial report.
On Costs
On-costs such as WorkCover and superannuation are recognised and included in the calculation of leave
provisions.
(q) Residential Aged Care Service
Both the Cooinda Lodge nursing home (on site) and Andrews House hostel (Trafalgar) are substantially funded
from Commonwealth bed-day subsidies. Their operations are an integral part of the Health Service and share its
resources. An apportionment of land has been made based on floor space for Cooinda Lodge whilst Andrews
House land is able to be separately identified and valued. Buildings, plant and equipment at both residential sites
have been allocated based on location. The results of the two operations have been segregated based on actual
revenue earned and expenditure incurred by each operation.
(r) Intersegment Transactions
Transactions between segments within the Group have been eliminated to reflect the extent of the Group’s
operations as a “group”.
(s) Revenue Recognition
Revenue is recognised in accordance with AASB 118 Revenue. Income is recognised as revenue to the extent it is
earned. Should there be unearned income at reporting date, it is reported as income received in advance.
Government Grants
Grants are recognised as revenue when the Group 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 finalisation of movements in LSL liability in line with the
arrangements set out in the Acute Health Division Hospital Circular 16/2004.
Patient Fees
Patient fees are recognised as revenue at the time invoices are raised.
Private Practice Fees
Private Practice fees are recognised as revenue at the time invoices are raised.
Donations and Other Bequests
Donations and bequests are recognised as revenue when the cash is received.
(t) Fund Accounting
The Group operates on a fund accounting basis and maintains three funds: Operating, Specific Purposes and
Capital Funds. The Group's Capital and Specific Purpose Funds include unspent capital donations and receipts from
fundraising activities conducted solely in respect of these funds.
(u) Services Supported by Health Service Agreement and Services Supported by Hospital
and Community Initiatives
The activities classified as Services Supported by Health Services Agreement (HSA) are substantially funded by the
Department of Human Services and includes RACS, while Services Supported by Hospital and Community Initiatives
(Non HSA) are funded by the Group’s own activities or local initiatives and/or the Commonwealth.
(v) Comparative Information
Where necessary, the previous year’s figures have been reclassified to facilitate comparisons.
(w) Asset Revaluation Reserve
The asset revaluation reserve is used to record increments and decrements on the revaluation of non-current assets.
(x) Contributed Capital
Consistent with UIG Interpretation 1038 “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.
50

Financial: Financial Results
Notes to and forming part of the Financial Statements for the year ended 30 June 2006
(y) Financial Instruments - Adoption of AASB 132 and AASB 139
The Health Service has elected not to restate comparative information for financial instruments within the scope of
AASB 132 Financial Instruments: Presentation and Disclosure and AASB 139 Financial Instruments: Recognition
and Measurement, as permitted on the first-time adoption of A-IFRS. The accounting policies applied to
accounting for financial instruments in the current financial year are detailed in notes 1(c), 1(f) and 1(k). The
following accounting policies were applied to accounting for financial instruments in the comparative financial
year:
- Other financial assets are valued at cost and are classified between current and non current assets based on the
Board of Director's intention at balance date with respect to the timing of disposal of each asset. Interest revenue
from other financial assets is brought to account when it is earned.
(z) Information Technology Alliance
The Health Service is a member of the Gippsland Health Alliance (GHA), which comprises hospitals and
Community Health Services located in Gippsland. The Alliance has received Grants for the purpose of
implementing regional Information Technology initiatives. A proportionate share of income received and
expenditure incurred by the Alliance is included as IT expenditure (refer note 2b & note 8).
(aa) Net result from Continuing Operations Before Capital & Specific Items
A-IFRS allows the inclusion of additional subtotals on the face of the operating statement when such presentation
is relevant to an understanding of an entity’s financial performance. This financial report includes an additional
subtotal entitled “Net Result From Continuing Operations Before Capital & Specific Items”.
Capital and specific items, which are excluded from this sub-total, comprise:
● Capital purpose income, which comprises all tied grants, donations and bequests received for the purpose of
acquiring non-current assets, such as capital works, plant and equipment. It also includes donations of plant and
equipment (refer note 1 (m)). Consequently the recognition of revenue as capital purpose income is based on the
intention of the provider of the revenue at the time the revenue is provided.
● Specific income/expense, comprises the following items, where material:
- Voluntary departure packages
- Write-down of inventories
- Non-current asset revaluation increments/decrements
- Diminution in investments
- Restructuring of operations (disaggregation/aggregation of health services)
- Litigation settlements
- Non-current assets lost or found
- Forgiveness of loans
- Reversals of provisions
- Voluntary changes in accounting policies (which are not required by an accounting standard or other
authoritative pronouncement of the Australian Accounting Standards Board)
● Impairment of non current assets, includes all impairment losses (and reversal of previous impairment losses),
related to non current assets only which have been recognised in accordance with note 1(j)
● Depreciation and amortisation, as described in note 1(i)
● Assets provided free of charge, as described in note 1(m)
● Expenditure using capital purpose income, which comprises expenditure using capital purpose income which
falls below the asset capitalisation threshold and therefore does not result in the recognition of an asset in the
balance sheet. The asset capitalisation threshold is set at $1,000 (2005: $1,000).
51

Financial: Financial Results
Note 2: Revenue
Notes to and forming part of the Financial Statements for the year ended 30 June 2006
HSA HSA Non Non Total Total
HSA HSA
2006 2005 2006 2005 2006 2005
($’000) ($’000) ($’000) ($’000) ($’000) ($’000)
Revenue from Operating Activities
Government Grants
- Department of Human Services (DHS) 34,172 32,520 34,172 32,520
- State Government - Other
- Equipment & Infrastructure Maintenance 199 199 199 199
- Other 269 136 269 136
- Commonwealth Government
- Residential Aged Care Subsidy 3,438 2,942 3,438 2,942
- Other 556 547 556 547
Indirect contributions by DHS
(refer note 2a) 1,262 1,012 1,262 1,012
Patient and Resident Fees (refer note 2c) 1,588 1,546 1,588 1,546
Private Practice Fees 272 264 272 264
Other Revenue from Operating Activities 530 710 9,666 9,397 10,196 10,107
Sub-Total Revenue
from Operating Activities 42,014 39,613 9,939 9,661 51,953 49,273
Revenue from Non-Operating Activities
Interest 535 600 535 600
Property Income 240 367 240 367
Other Revenue from
Non-Operating Activities 450 507 450 507
Sub-Total Revenue
from Non-Operating Activites 1,225 1,473 1,225 1,473
Capital Purpose Income
State Government Capital Grants
- Targeted Capital Works & Equipment 7752,119 7752,119
- Indirect Contributions
Pre Construction Costs 105106 105106
Commonwealth Government
Capital Grants 153 91 153 91
Residential Accommodation Payments
(refer note 2c) 359 285 359 285
Assets Received Free of Charge
(refer note 2e) 16 16
Net Gain/(Loss) on Disposal of
Non-Current Assets (refer note 2d) 24 60 24 60
Donations and Bequests 361 260 361 260
Sub-Total Revenue
from Capital Purpose Income 1,392 2,600 385 336 1,777 2,936
Total Revenue from
Continuing Operations (refer note 2a) 43,406 42,213 11,548 11,470 54,954 53,683
Indirect contributions by Human Services
Department of Human Services makes certain payments on behalf of the Group. These amounts have been
brought to account in determining the operating result for the year by recording them as revenue and expenses.
52

Financial: Financial Results
Notes to and forming part of the Financial Statements for the year ended 30 June 2006
Acute Care RAC Aged Care Primary Health Other Total
Note 2a: Analysis of Revenue by Source
2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005
($’000)($’000)($’000)($’000)($’000)($’000)($’000)($’000)($’000)($’000)($’000)($’000)
Revenue from Services
Supported by Health Services
Agreement
Government Grants
- DHS 30,575 29,262 1,569 1,299 1,176 1,120 842 791 11 48 34,172 32,520
- Other State Government 370 199 98 44 92 467 335
- Commonwealth Government
- Residential Aged Care Subsidy 3,438 2,942 3,438 2,942
- Other 512 531 9 3 44 5 556 547
Indirect contributions by DHS
- Insurance 860 610 95 29 860 735
- Long Service Leave 345 230 32 29 16 7 10 12 402 278
Capital Purpose Income
(refer note 2) 1,033 2,316 1,033 2,316
Residential Accommodation
Payments (refer note 2c) 359 285 359 285
Patient and Resident Fees
(refer note 2c) 409 413 1,153 1,118 16 15 10 1,588 1,546
Pharmacy Services 108 101 108 101
Other 337 319 28 65 16 56 41 144 25 422 609
Sub-Total Revenue from
Services Supported by
Health Services Agreement 33,516 31,665 6,219 5,558 1,224 1,230 1,000 991 1,447 2,770 43,406 42,213
Revenue from Services
Supported by Hospital &
Community Initiatives
Internal and Restricted
Specific Purpose Fund
Private Practice - - - - - - - - 272 264 272 264
Cafeteria - - - - - - - -4 02 3874 02 387
Tendered Services - - - - - - - - 159 14 0 159 14 0
Linen Service - - - - - - - - 8,850 8,7748,850 8,774
Salary Packaging - - - - - - - - 102 96 102 96
Consulting Suites - - - - - - - - 152 136 152 136
Property Income - - - - - - - - 24 0 231 24 0 231
Other Activities
Net Gain/(Loss) on Disposal of - - - - - - - -
Non-Current Assets (refer note 2d) - - - - - - - - 24 60 24 60
Assets Received Free of Charge (refer note 2e) - - - - - - - 16 16
Donations & Bequests - - - - - - - - 361 260 361 260
Interest & Dividends - - - - - - - - 535 600 535 600
Other - - - - - - - 50 5074 50 507
Sub-Total Revenue from
Services Supported by Hospital
and Community Initiatives 11,548 11,470 11,548 11,470
Total Revenue from Operations 33,516 31,665 6,219 5,558 1,224 1,230 1,000 991 12,995 14,240 54,954 53,683
Indirect contributions by Department of Human Services: Department of Human Services makes certain payments on behalf of the Group (ie insurance and payments in respect of
development projects). These amounts have been brought to account in determining the operating result for the year by recording them as revenue and expenses.
53

Financial: Financial Results
Notes to and forming part of the Financial Statements for the year ended 30 June 2006
Note 2b: Analysis of Expenses by Source
Acute Care RAC Aged Care Primary Health Other Total
2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005
($’000)($’000)($’000)($’000)($’000)($’000)($’000)($’000)($’000)($’000)($’000)($’000)
Services Supported by
Health Services Agreement
Employee Benefits
Salaries and Wages 20,244 17,696 4,747 3,728 354 1,460 754 730 116 26,098 23,730
WorkCover 150 57 171 102 4 20 14 11 2 340 191
Long Service Leave 636 695 69 87 8 56 12 20 725 858
Superannuation (refer note 18) 1,840 1,659 443 346 40 154 87 85 13 2,410 2,258
Non-Salary Labour Costs
Fee for Service Medical Officers 2,748 3,056 4 2,753 3,056
Other Contract Services 526 431 33 560 431
Supplies & Consumables
Drug Supplies 1,256 1,213 17 27 8 13 12 1,285 1,261
S100 Drugs 234 277 234 277
Medical and Surgical
Supplies and Prothesis 1,611 1,216 72 61 10 57 6 16 1,699 1,350
Pathology Supplies 744 777 744 777
Food Supplies 139 234 462 354 3 1 4 2 603 597
Other Expenses
Domestic Services & Supplies 232 213 26 27 4 261 245
Fuel, Light, Power, Water 497 453 220 170 24 19 5 13 746 655
Insurance costs funded by DHS 860 610 95 29 860 735
IT Expenses 303 501 47 78 15 25 365 603
Motor Vehicle Expenses 100 63 8 10 7 32 24 25 2 139 133
Postal & Telephone 142 156 16 27 4 16 18 17 181 215
Repairs & Maintenance 593 588 1 5 10 5 16 1 599 621
Patient Transport 581 478 581 478
Referred Services 574 1,308 6 6 808 25 1,388 1,339
Bad & Doubtful Debts 9 14 1 9 16
Other Administrative Expenses 457 456 428 289 98 118 (129) 66 18 853 947
Sub-Total Expenses from
Services Supported by
Health Service Agreement 34,475 32,151 6,735 5,414 1,372 2,012 850 1,041 154 43,432 40,771
In presenting the Group's financial reports, inter-entity transactions have been eliminated on consolidation so as to reflect transactions between the entity and third parties. As the Group
purchases its linen from its in-house linen service, consolidation has the effect of eliminating the true costs of linen incurred by the Group ($433,635 in total for 2005/06, $426,744 for
2004/05). This comprises Acute $296,430, RAC $129,155 and Other $8,050.
54

Financial: Financial Results
Notes to and forming part of the Financial Statements for the year ended 30 June 2006
Note 2c: Patient and Resident Fees
Patient Fees Raised
Patient Fees Receivable
2006 20052006 2005
($’000) ($’000) ($’000) ($’000)
Recurrent:
Acute
- Inpatients 88 106 6 14
- Outpatients 321 308 38 53
Aged Care
- Outpatients 16 15
Residential Aged Care
- Nursing home 667753 39 67
- Hostel Services 485 365 34 29
Other 10
Total 1,588 1,546 117 162
Capital Purpose:
Residential Accommodation Payments(*) 359 285
Total Capital 359 285
(*) This includes accommodation payments, interest earned on accommodation bonds and retention amount.
Commonwealth Residential Care inpatient benefits are included under Commonwealth Grants, not patient fee
revenue.
West Gippsland Healthcare Group charges fees in accordance with the Department of Human Services directives.
Note 2d: Net Gain/(Loss) on Disposal of Non-Current Assets
2006 2005
($’000) ($’000)
Proceeds from Disposals of Non-Current Assets:
- Motor Vehicles 228 503
- Medical Equipment 24
- Computers & Communication 4
- Plant & Equipment 11 47
- Other Financial Assets 5
Total Proceeds from Disposal of Non-Current Assets 267 555
Less Written Down Value of Assets Sold:
- Motor Vehicles 193 424
- Plant & Equipment 21 66
- Computers & Communication 9
- Medical Equipment 21 2
- Other Financial Assets 3
Total Written Down Value of Assets Sold 243495
Net Gains on Disposal of Non-Current Assets 24 60
Note 2e: Assets Received Free of Charge
2006 2005
($’000) ($’000)
During the reporting period, the fair value of assets received free
of charge was as follows:
Plant & Equipment 16
TOTAL 16
56

Financial: Financial Results
Notes to and forming part of the Financial Statements for the year ended 30 June 2006
Note 2f: Analysis of Expenses by Internal and Restricted Special Purpose Funds
for Services Supported by Hospital & Community Initiatives
2006 2005
($’000)($’000)
Private Practice 31 4
Cafeteria 283 319
Tendered Services 145 132
Linen Service 6,747 6,602
Salary Packaging 56 80
Consulting Suites 321 325
Property Income 48 64
TOTAL 7,630 7,526
Note 3: Depreciation and Amortisation
2006 2005
($’000)($’000)
Depreciation
Buildings 539 440
Plant and Equipment
- Plant 365 334
- Other Equipment 51 55
Medical Equipment 280268
Computers and Communication 87 123
Motor Vehicles 319 321
Furniture and Fittings 11 8
Total Depreciation 1,651 1,549
Amortisation
Linen 1,118 1,058
Total Amortisation 1,118 1,058
Total Depreciation & Amortisation 2,769 2,607
Note 4: Cash and Cash Equivalents
For the purposes of the Cash Flow Statement, cash assets includes cash on hand and in banks, and short-term
deposits which are readily convertible to cash on hand, and are subject to an insignificant risk of change in
value, net of outstanding bank overdrafts.
The bank overdraft below relates to the Hospital and is part of an offset banking arrangement. This incorporates
cash at bank, including the Warragul Linen Service, and the deposits at call, which relate to the Group as a
whole. As the overall cash position is always positive, no interest is incurred by the Group.
2006 2005
($’000)($’000)
Cash on Hand 3 3
Cash at Bank 3,781 5,788
Bank Overdrafts (4,864) (8,232)
Deposits at Call 8,011 10,596
TOTAL 6,931 8,155
Represented by:
Cash for Health Service Operations
(as per Cash Flow Statement) 6,931 8,155
57

Financial: Financial Results
Notes to and forming part of the Financial Statements for the year ended 30 June 2006
Note 5: Receivables Total Total
2006 2005
($’000) ($’000)
CURRENT
Inter Hospital Debtors 20
Trade Debtors 1,423 1,314
Patient Fees 117 162
Accrued Investment Income 34 64
Accrued Revenue- DHS 129
Accrued Revenue- Other 126 351
DHS - Long Service Leave 916 1,065
TOTAL 2,744 2,977
LESS Provision for Doubtful Debts
Trade debtors (7) (3)
Patient Fees (5) (12)
TOTAL CURRENT RECEIVABLES 2,732 2,961
NON CURRENT
DHS - Long Service Leave 315 828
TOTAL NON CURRENT RECEIVABLES 315 828
TOTAL 3,047 3,789
Note 6: Other Financial Assets
Operating Specific Capital Total Total
Fund Purpose Fund Fund
2006 2006 2006 2006 2005
($’000) ($’000) ($’000) ($’000) ($’000)
CURRENT
Money Held in Trust
- Accommodation Bonds
(Refundable Entrance Fees) 1,329 1,329 1,044
- Salary Packaging 213 213 201
- Gippsland Health Alliance
(refer note 8) 1,866 1,866 2,836
3,409 3,409 4,080
NON CURRENT
Floating Interest Securities 200 200
TOTAL 3,609 3,609 4,080
Total
Total
Note 7: Inventories
2006 2005
($’000) ($’000)
CURRENT
Hospital
- Pharmaceuticals at cost 114 136
- Housekeeping Supplies at cost 4 6
- Medical and Surgical Lines at cost 76 89
- Administration Stores at cost 24 17
TOTAL 219 247
Linen Service
- Housekeeping Supplies at cost 9 9
TOTAL 9 9
TOTAL CURRENT INVENTORIES 227 256
58

Financial: Financial Results
Notes to and forming part of the Financial Statements for the year ended 30 June 2006
Note 8: Other Assets
2006 2005
($’000)($’000)
NON CURRENT
Interest in Gippsland Health Alliance 740628
TOTAL 740 628
West Gippsland Healthcare Group (WGHG) is a member of the Gippsland Health Alliance (GHA) and administers the
Alliance as lead agent. The Alliance is not considered to be a Joint Venture for accounting purposes under AASB 1014
Accounting for Joint Ventures, as the Alliance is not subject to 'joint control'. Comparatives have been reinstated as a result
of this change in accounting treatment.
The GHA Joint Venture agreement was amended effective 1 July 2005 to accommodate an additional thirteen Community
Health Services that joined the Alliance as new members. The agreement also varied the allocation methodology for
recognising each member's interest in the joint venture's net assets. Previously, the inaugural ten hospital members held an
equal 10% interest in the Alliance. For reporting periods up to and including 30 June 2003, the Alliance's yearly net result
was accounted for in each member hospital's accounts based on their equal 10% interest. In the 2003/04 financial year
however, the Alliance adopted a Gross Operating Revenue (GOR) model to bill members for membership and services.
This was also the means by which to allocate the Alliance's revenue and expenses for the financial year to members.
In the early years of the Alliance, revenue exceeded expenditure and the resultant surpluses were equally distributed to the
members. However, with expenditure exceeding revenue in recent years, the larger agencies absorbed a greater proportion
of the Alliance's losses based on their GOR. This led to the anomaly whereby the larger agencies interest in the Alliance
eroded at a larger rate than the smaller agencies, thus distorting the true reality of each agencies interest in the Alliance.
The net profit or loss of the Alliance in subsequent financial years had been allocated based on each agency’s GOR relative
to the total GOR of all member agencies. However, no adjustment was made to each agencies pre 30 June 2003 interest
when the GOR model was introduced.
An accounting adjustment has been made in 2005/06 to the pre 30 June 2003 net assets of the Alliance in light of the
above so that member interests are reflective of proportionate GOR. This adjustment has resulted in WGHG's interest in the
joint venture increasing by $273,887.
The total Alliance funds available to members, are represented by:
2006 2005
($’000)($’000)
Current Liabilities 894 716
Non-Current Liabilities 38 27
Current Assets 3,469 3,951
Non-Current Assets 1,714 2,180
Available to Alliance members 4,251 5,388
Summarised Operating Statement
Income:
Government Grants 293 357
Contributions- Members 3,238 2,384
Other Revenue 448 401
Total Income 3,979 3,142
Expenditure:
Employee Benefits (395) (328)
Information Technology
and Administrative Expenses (4,721) (4,513)
Total Expenditure (5,116) (4,841)
Net Deficit for the Year (1,137) (1,220)
Revenue and expenditure of the Alliance forms part of the overall net surplus/deficit attributable to members. This net surplus/
deficit is allocated to each of the member agencies based on each members proportionate Gross Operating Revenue (GOR).
The share of the net result of the Alliance attributable to WGHG for 2005/06 of -$162,209 (-$208,259 in 2004/05)
is reported as an 'IT expense' item under note 2b. Contributions made to the Alliance of $476,973 ($394,595 in 2004/05)
is also expensed and disclosed in note 2b under 'IT expense'.
The Group's share of the Alliance net assets at balance date was $739,678 ($628,001 in 2004/05).
WGHG hold the Alliance's cash assets in trust. The dollar value of the Alliance's bank balance as at reporting date is disclosed
in notes 6 and 12.
59

Financial: Financial Results
Notes to and forming part of the Financial Statements for the year ended 30 June 2006
Note 9: Property, Plant & Equipment Total Total
2006 2005
($’000) ($’000)
LAND
Land at Cost 74
Land at Valuation 1,728 1,728
Total Land 1,802 1,728
BUILDINGS
Buildings Under Construction 3,461 1,202
Buildings at cost 4,889 4,112
Less Accumulated Depreciation and Impairment (129) (15)
4,760 4,097
Buildings at Valuation 16,994 16,994
Less Accumulated Depreciation and Impairment (850) (425)
16,144 16,569
Total Buildings 24,366 21,869
Plant & Equipment at Cost
Plant 5,220 4,332
Less Accumulated Depreciation and Impairment (2,062) (1,751)
3,159 2,581
Other Equipment 1,102 1,038
Less Accumulated Depreciation and Impairment (604) (635)
498 403
Plant & Equipment (Construction in Progress) 51 104
Total Plant and Equipment 3,707 3,087
Medical Equipment at cost 5,103 4,825
Less Accumulated Depreciation and Impairment (2,197) (1,979)
Total Medical Equipment 2,906 2,846
Computers and Communication at cost 1,261 1,498
Less Accumulated Depreciation and Impairment (1,155) (1,340)
Total Computers and Communications 105 158
Motor Vehicles at cost 1,511 1,472
Less Accumulated Depreciation and Impairment (564) (485)
Total Motor Vehicles 946 987
Furniture and Fittings at cost 370 208
Less Accumulated Depreciation and Impairment (56) (45)
Total Furniture and Fittings 314 162
Other at cost 4,414 4,583
Less Accumulated Depreciation and Impairment (1,487) (1,655)
Total Other 2,927 2,928
TOTAL PROPERTY, PLANT & EQUIPMENT 37,074 33,765
60

Financial: Financial Results
Notes to and forming part of the Financial Statements for the year ended 30 June 2006
Note 9: Property, Plant & Equipment (continued)
A reconciliation of the carrying amounts of each class of asset at the beginning and end of the previous and current
financial year is set out below.
Land Buildings Plant & Medical Computers & Furniture Motor Other Total
Equipment Equipment Communications & Fittings Vehicles
($’000) ($’000) ($’000) ($’000) ($’000) ($’000) ($’000) ($’000) ($’000)
Balance at 1 July 2004 815 18,237 2,703 2,795 165 65 1,004 3,077 28,861
Additions 3,594 846 321 134 54 729 909 6,587
Net Transfers (11) (25) 51 16
Revaluation increments 913 488 1,401
Disposals (note 2d) (48) (2) (18) (424) (492)
Depreciation/Amortisation
Expense (note 3) (440) (389) (268) (123) (8) (321) (1,058) (2,607)
Balance at 1 July 2005 1,728 21,869 3,087 2,846 158 162 987 2,928 33,765
Additions 74 3,036 1,152 297 43 154 471 1,116 6,344
Net Transfers (95) 64 8(23)
Revaluation increments
Disposals (note 2d) (21) (21) (9) (193) (243)
Depreciation/Amortisation
Expense (note 3) (539) (416) (280) (87) (11) (319) (1,118) (2,769)
Balance at 30 June 2006 1,802 24,366 3,707 2,906 105 314 946 2,927 37,074
Land and buildings carried at valuation
An independent valuation of the Health Service's land and buildings was performed by Value It Pty Ltd (on behalf of the
Valuer-General) to determine the fair value of the land and buildings. The valuation, which conforms to Australian Valuation
Standards, was determined using depreciated replacement cost as the basis for valuation. The valuation was based on independent
assessments. The effective date of the valuation is 1 July 2004.
Note 10: Payables
Total
2006
Total
2005
($’000) ($’000)
Current
Trade Creditors 1,382 1,562
Accrued Expenses 370 922
GST Payable 315 305
Provision for Recall- DHS 169
TOTAL 2,066 2,958
Note 11: Provisions
Employee Benefits
CURRENT (refer note 1(p))
Long Service Leave
Total
Total
2006 2005
($’000) ($’000)
- short-term benefits at nominal value 476 466
- long-term benefits at present value 3,323 3,047
Accrued Wages & Salaries 443 331
Annual Leave 3,096 2,829
Accrued Days Off 46 49
TOTAL 7,383 6,721
NON CURRENT (refer note 1(p))
Long Service Leave 1,343 1,217
TOTAL 8,726 7,938
Movement in Long Service Leave:
Balance at start of year 4,7304,5 0
Provision made during the year 878 935
Settlement made during the year (466) (705)
Balance at end of year 5,142 4,730
61

Financial: Financial Results
Notes to and forming part of the Financial Statements for the year ended 30 June 2006
Note 12: Other Liabilities
Total
2006
Total
2005
Monies Held in Trust*
- Accommodation Bonds (Refundable Entrance Fees)
($’000)
1,329
($’000)
1,044
- Salary Packaging 213 201
- Gippsland Health Alliance 1,866 2,836
Borrowings- DHS 24
Total Current 3,433 4,080
NON CURRENT
Borrowings- DHS 23
Total Non Current 23
TOTAL OTHER LIABILITIES 3,456 4,080
*Represented by the following assets:
Other Financial Assets (refer note 6) 3,409 4,080
TOTAL 3,409 4,080
Note 13: Equity & Reserves
Total
Total
2006 2005
(a) RESERVES
($’000) ($’000)
Asset Revaluation Reserve
Balance at the Beginning of the Reporting Period 1,401
Revaluation Increment 1,401
Balance at the End of the Reporting Period 1,401 1,401
Represented by: Land 913 913
Buildings 4,88 4,88
1,401 1,401
(b) CONTRIBUTED CAPITAL
Balance at the Beginning of the Reporting Period 27,888 27,888
Capital contribution received from Victorian Government 1,341
Balance at the End of the Reporting Period 29,229 27,888
(c) ACCUMULATED SURPLUS
Balance at the Beginning of the Reporting Period 6,557 4,568
Net Result for the Year 310 1,989
Balance at the End of the Reporting Period 6,867 6,557
(d) EQUITY
Total Equity at the Beginning of the Reporting Period 35,846 32,456
Total Changes in Equity Recognised in the Operating Statement 1,6523,390
Total Equity at the Reporting Date 37,497 35,846
Note 14: Reconciliation of Net Result for the year
to Net Cash Flow from Operating Activities
Net Result for the Year 310 1,989
Add back Depreciation & Amortisation 2,769 2,607
Write Down of Inventories & Non Current Assets 23
Less Discount Interest on Borrowings (3)
Assets Received free of charge (16)
Net (Gain) from Sale of Plant & Equipment (24) (58)
Net (Gain) from Sale of Investments (2)
Non Cash Contributions of Non-Current Assets (105) (106)
Movement in Operating Assets & Liabilities
(Increase) / Decrease in Receivables 742 227
(Increase) / Decrease in Other Assets 619 193
Increase / (Decrease) in Payables (892) 43
Increase / (Decrease) in Employee Benefits 788 217
Increase / (Decrease) in Other Liabilities (671)
NET CASH FLOWS FROM OPERATING ACTIVITIES 3,556 5,095
62
Total
Total
2006 2005
($’000) ($’000)

Financial: Financial Results
Notes to and forming part of the Financial Statements for the year ended 30 June 2006
Note 15: Financial Instruments
(a) Interest Rate Risk Exposure
The Hospital’s exposure to interest rate risk and effective weighted average interest rate by maturity periods is set out
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 predominantly from assets and liabilities bearing variable interest rates.
Fixed Interest Rate Maturity
Weighted
Floating 1 year 1 to 5 Over 5 Non Interest Total Average
Interest Rate or less years years Bearing Interest
($’000) ($’000) ($’000) ($’000) ($’000) ($’000) Rates (%)
Interest Rate Exposure
as at 30 June 2006
FINANCIAL ASSETS
Cash at Bank 6,931 6,931 5.84
Trade Debtors 1,423 1,423 0.00
Other Receivables 1,636 1,636 0.00
Other Financial Assets 3,609 3,609 5.14
TOTAL FINANCIAL ASSETS 10,540 3,059 13,599 4.34
FINANCIAL LIABILITIES
Trade Creditors (2,066) (2,066) 0.00
Accomodation Bonds (1,329) (1,329) 0.00
Other Liabilities (2,126) (2,126) 0.00
TOTAL FINANCIAL LIABILITIES(5,522) (5,522) 0.00
NET FINANCIAL
ASSETS/LIABILITIES 10,540 (2,463) 8,077
Fixed Interest Rate Maturity
Weighted
Floating 1 year 1 to 5 Over 5 Non Interest Total Average
Interest Rate or less years years Bearing Interest
($’000) ($’000) ($’000) ($’000) ($’000) ($’000) Rates (%)
Interest Rate Exposure
as at 30 June 2005
FINANCIAL ASSETS
Cash at Bank 8,155 8,155 5.81
Trade Debtors 1,314 1,314 0.00
Other Receivables 2,491 2,491 0.00
Other Financial Assets 4,080 4,080 5.10
TOTAL FINANCIAL ASSETS 12,236 3,805 16,041 4.25
FINANCIAL LIABILITIES
Trade Creditors (2,958) (2,958) 0.00
Accomodation Bonds (1,044) (1,044) 0.00
Other Liabilities (3,037) (3,037) 0.00
TOTAL FINANCIAL LIABILITIES(7,038) (7,038) 0.00
NET FINANCIAL
ASSETS/LIABILITIES 12,236 (3,233) 9,003
(b) Credit Risk Exposure
Credit risk represents the loss that would be recognised if counterparties failed to meet their obligations under their
respective contracts at maturity. The credit risk on financial assets of the entity has been recognised in the Balance
Sheet, as the carrying amount, net any provisions for doubtful debts. It is noted that there is no material exposure to
any one individual debtor.
(c) Net Fair Value of Financial Assets and Liabilities
The carrying amount of financial assets and liabilities contained within these financial statements is representative
of the fair value of each financial asset or liability.
63

Financial: Financial Results
Notes to and forming part of the Financial Statements for the year ended 30 June 2006
Note 15: Financial Instruments (continued)
Net Fair Value
2006 2006 2005 2005
Book Value Net Fair Value Book Value Net Fair Value
($’000) ($’000) ($’000) ($’000)
FINANCIAL ASSETS
Cash at Bank 6,931 6,931 8,155 8,155
Trade Debtors 1,423 1,423 1,314 1,314
Other Receivables 1,636 1,636 2,491 2,491
Other Financial Assets 3,609 3,609 4,080 4,080
TOTAL FINANCIAL ASSETS 13,599 13,599 16,041 16,041
FINANCIAL LIABILITIES
Trade Creditors and Accruals (2,066) (2,066) (2,958) (2,958)
Accommodation Bonds (1,329) (1,329) (1,044) (1,044)
Other Liabilities (2,126) (2,126) (3,037) (3,037)
TOTAL FINANCIAL LIABILITIES (5,522) (5,522) (7,038) (7,038)
NET FINANCIAL ASSETS/LIABILITIES 8,077 8,077 9,0039,003
(d) Net Fair Value of Financial Assets and Liabilities
The net fair value of balance sheet financial assets and liabilities is not materially different to the carrying value of
those financial assets and liabilities. Cash, deposit investments, cash equivalents and non-interest bearing financial
assets and liabilities (trade debtors, other receivables, trade creditors) are valued at cost which approximates net
market value.
Note 16: Commitments
Total
Total
2006 2005
($’000) ($’000)
CAPITAL COMMITMENTS
Land and Buildings 3,102 4,183
Plant & Equipment 211
TOTAL CAPITAL COMMITMENTS 3,313 4,183
Not later than one year 3,313 4,183
TOTAL 3,313 4,183
The following were contracted for at the reporting date but not recognised as liabilities in the accounts:
- Construction cost of a Community Mental Health Centre at Gladstone Street Warragul $2.860m
- Stage 3 redevelopment on site to High Dependency Unit $0.242m
- Warragul Linen Service balance of Washroom equipment $0.211m
64

Financial: Financial Results
Notes to and forming part of the Financial Statements for the year ended 30 June 2006
Note 17: Contingent Assets & Liabilities
The Board of Management is unaware of any material contingent assets and liabilities as at 30 June 2006.
Note 18: Superannuation
Superannuation contributions for the reporting period are included as part of employee benefits and associated costs
in the Operating Statement of the Group.
The name and details of the major employee superannuation funds and contributions made by the Group are as follows:
Contributions paid for the year Contributions outstanding for the year
2006 2005 2006 2005
($’000) ($’000) ($’000) ($’000)
FUND
Health Super Fund 2,941 2790 198 184
HESTA 7237 7 4
Other 6 2
TOTAL 3,019 2,756 207 268
The bases for contributions are determined by the various schemes.
The unfunded superannuation liaibility in respect to members of Health Super Scheme is not recognised in the Balance
Sheet. West Gippsland Healthcare Group’s total unfunded superannuation liability in relation to these funds has been
assumed by and is reflected in the financial statements of the Department of Treasury and Finance.
The above amounts were measured as at 30 June of each year or, in the case of employer contributions, they relate
to the years ended 30 June.
Members of the Health Super Scheme are entitled to benefits on retirement, disability or death from the Government
Employees Super Fund. This Fund provides defined lump sum benefits based on years of service and annual average
salary.
65

Financial: Financial Results
Notes to and forming part of the Financial Statements for the year ended 30 June 2006
Note 19: Segment Reporting
RACS
Hospital Cooinda Lodge Andrews House Linen Service Eliminations Consolidations
2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005
($’000)($’000)($’000)($’000)($’000)($’000)($’000)($’000)($’000)($’000)($’000)($’000)
REVENUE
External
- Operating
Segment Revenue 36,883 34,937 4,499 4,544 1,720 1,014 8,850 8,779 51,953 49,274
- Non-Operating
Segment Revenue 690 874 690 874
- Capital Segment Revenue 1,430 2,652 195 171 164 113 (12) 1,777 2,936
Intersegment Revenue 562583 44 8 434 426 (1,048) (1,009)
Total Segment Revenue 39,565 39,045 4,738 4,715 1,892 1,127 9,272 9,205 (1,048) (1,009) 54,420 53,084
Interest Income 535 600
TOTAL REVENUE 54,954 53,683
EXPENSES
External Segment Expenses (38,387) (37,063) (4,422) (4,209) (2,319) (1,214) (6,747) (6,602) (51,875) (49,088)
Depreciation & Amortisation (983) (1,050) (90) (64) (168) (46) (1,528) (1,447) (2,769) (2,607)
Intersegment Expenses (386) (401) (89) (88) (40) (18) (532) (502) 1,048 1,009
Total Segment Expenses (39,756) (38,514) (4,601) (4,361) (2,527) (1,278) (8,807) (8,550) 1,048 1,009 (54,644) (51,694)
(54,644) (51,694)
NET RESULT FOR YEAR (191) 531 137 354(635) (151) 465 655 310 1989
Segment Assets 33,803 33,695 3,119 2,849 1,949 1,780 12,875 12,498 51,745 50,823
Intersegment Assets 667 638 73 62(741) (699)
Total Assets 34,470 34,333 3,119 2,849 1,949 1,780 12,948 12,560 (741) (699) 51,745 50,823
Segment Liabilities 11,416 13,001 961 846 120 106 1,752 1,024 14,248 14,977
Intersegment Liabilities 73 62667 638 (741) (699)
Total Liabilities 11,489 13,063 961 846 120 106 2,419 1,662 (741) (699) 14,248 14,977
GEOGRAPHICAL SEGMENT
West Gippsland Healthcare Group operates predominantly
in Warragul, Victoria. More than 90% of revenue, net surplus
from ordinary activities and segment assets relate to operations
in Warragul, Victoria.
The major products/services from which the above segments derive revenue are:
Business Segments Services
Hospital Acute, aged and primary care services, other business units and capital activities
Cooinda Lodge (Nursing Home) Residential Aged care services (RACS)
Andrews House (Hostel) Residential Aged care services (RACS)
Warragul Linen Service Laundering of linen
66

Financial: Financial Results
Notes to and forming part of the Financial Statements for the year ended 30 June 2006
Note 20: Responsible Person Related Disclosures
(a) Responsible Persons
Minister for Health and Community Services
The Hon B.Pike
(The relevant remuneration relating to the Minister is reported separately in the financial statements
of the Department of Premier & Cabinet.)
Board Members
Mr J Anderson
Mr D Gleeson
Mr G Blackwood
Mr P Marx
Mr J Davine
Ms J Nowotny
Mr P Kingwill
Ms M Robbins
Mr B Davey (commenced November 2005) Mr D Smith
Ms T Devereux
Mrs R Waghorne
Accountable Officer
Mr O Pearson
(b) Remuneration of Responsible Persons
The number of Responsible Persons are shown in their relevant income bands;
Total Remuneration
2006 2005
No.
No.
Income Band
$190,000- $199,999 1
$200,000- $209,999 1
Total Numbers 1 1
Total remuneration received or due and receivable by
Responsible Persons from the reporting entity amounted to: 207 195
(c) Retirement Benefits of Responsible Person
No retirement benefits have been paid to Responsible Persons during the 2005/06 year.
(d) Other Transactions of Responsible Persons and their Related Parties
There were no other transactions with Responsible Persons and their Related Parties during the 2005/06 year.
(e) Other Receivables from and Payables to Responsible Persons and their Related Parties
There were no further receivables from or payables to Responsible Persons during the 2005/06 year.
(f) Amounts Attributable to Other Transactions with Responsible Persons and their Related Parties
There were no amounts attributable to other transactions with Responsible Persons and their Related Parties
during the 2005/06 year.
(g) Executive Officer Remuneration
The numbers of Executive Officers, other than Ministers and Accountable Officers, and their total remuneration
during the reporting period are shown in the first two columns in the table below in their relevant income
bands. The base remuneration of executive officers is shown in the third and fourth columns. Base
remuneration is exclusive of bonus payments, long-service leave payments, redundancy payments and
retirement benefits.
Total Remuneration
Base Remuneration
2006 2005 2006 2005
No. No. No. No.
$100,000- $109,999 3 2
$110,000- $119,999 3
$120,000- $129,999 3 1
$130,000- $139,999 1
4 3 4 2
Total remuneration for the reporting
period for Executive Officers
included above amounted to: 503 353 443 306
67

Financial: Financial Results
Notes to and forming part of the Financial Statements for the year ended 30 June 2006
Note 21: Remuneration of Auditors
2006 2005
($’000)($’000)
Audit fees paid or payable to the Victorian Auditor-General's
Office for the audit of the Group's financial report.
Paid as at 30 June 5 5
Payable as at 30 June 22 21
Note 22: Events Occurring After Reporting Date
There have been no events occurring after reporting date which are likely to materially effect these financial statements.
Note 23: Impacts of the adoption of Australian equivalents to International Financial Reporting Standards
Following the adoption of Australian equivalents to International Financial Reporting Standards (A-IFRS), the Group
has reported for the first time in compliance with A-IFRS for the financial year ended 30 June 2006.
Under A-IFRS, there are requirements that apply specifically to not-for-profit entities that are not consistent with IFRS
requirements. West Gippsland Healthcare Group is established to achieve the objectives of government in providing
services free of charge or at prices significantly below their cost of production for the collective consumption by the
community, which is incompatible with generating profit as a principal objective. Consequently, where appropriate,
the Health Service applies those paragraphs in Accounting Standards applicable to not-for-profit entities.
The Health Service changed its accounting policies, other than its accounting policies for financial instruments,
on 1 July 2004 to comply with A-IFRS. The Health Service changed its accounting policies for financial instruments on
1 July 2005 (refer note 1(y)). The transition to A-IFRS is accounted for in accordance with Accounting Standard AASB1
First-time Adoption of Australian Equivalents to International Financial Reporting Standards, with 1 July 2004 as
the date of transition. An explanation of how the transition from superseded policies to A-IFRS has affected the
Health Service’s financial statements is detailed below:
Property Plant and Equipment
For property, plant and equipment that are measured under the revaluation model, not-for profit entities are not
required to establish the asset’s true historical cost under AASB 116 or deemed cost because there is no requirement
for not-for-profit entities to:
● restate the revaluation reserve on date of transition to A-IFRS; or
● disclose the carrying amount of each revalued class of property, plant and equipment that would have been
recognised had the assets been carried under the cost model. As a consequence, the Health Service has elected
not to apply the deemed cost exemption provided under AASB 1 and continues to present the previous AGAAP
cumulative revaluation reserve relating to each class of property, plant and equipment.
The Group revalued its Land and Buildings at 1 July 2004 to assist with the transition to A-IFRS.
Employee Benefits
Under previous Australian Accounting Standards, employee benefits such as wages and salaries and annual leave
are required to be measured at their nominal amount regardless of whether they are expected to be settled within
12 months of the reporting date. On adoption of A-IFRS, a distinction is made between short-term and long-term
employee benefits and AASB 119 Employee Benefits requires liabilities for short-term employee benefits to be
measured at nominal amounts and liabilities for long-term employee benefits to be measured at present value.
AASB 119 defines short-term employee benefits as employee benefits that fall due wholly within twelve months after
the end of the period in which the employees render the related service. Therefore, liabilities for employee benefits
such as wages and salaries and annual leave are required to be measured at present value where they are not
expected to be settled within 12 months of the reporting date.
In the 2004/05 annual report, the Group disclosed the effect of the above requirement on the Agency’s Statement
of Financial Position as at 30 June 2005 would be an estimated decrease in employee benefits liability of $5,875.
For the year ended 30 June 2005, employee benefits expense were expected to increase by $44,543 as the present
value discount on the liabilities for long-term employee benefits unwinds.
AASB101 Presentation of Financial Statements now requires that annual leave should only be classified as a
non-current liability where the Group has a conditional right to defer settlement of the liability for at least twelve
months after the reporting date (i.e. the employee has no present entitlement to the benefit). As such, annual leave
previously disclosed as non-current at transition date has been treated as a current liability at nominal amounts and
the discounting adjustment of $5,875 previously advised as an A-IFRS adjustment has been reversed.
On account of the above, there is no material impact on adoption of A-IFRS on the Balance Sheet,
Operating Statement or Cash Flow Statement of the Group.
68

Financial: Certification
West Gippsland Healthcare Group Certification
We certify that the attached financial statements for the West Gippsland Healthcare Group have been prepared in
accordance with Part 4.2 of the Standing Directions of the Minister for Finance under the Financial Management Act 1994,
applicable Financial Reporting Directions, Australian Accounting standards and other mandatory professional reporting
requirements.
We further state that, in our opinion, the information set out in the operating statement, balance sheet, statement of
recognised income and expense, cash flow statement and notes to and forming part of the financial statements, presents
fairly the financial transactions for the year ended 30 June 2006 and the financial position of the Group as at 30 June 2006.
At the date of signing the financial statements we are not aware of any circumstances which would render any particulars
included in the financial statements to be misleading or inaccurate.
69

Financial: Auditor General’s Report
70

Financial: Auditor General’s Report
71

Appendices
Statement of Fees and Charging Rates
West Gippsland Healthcare Group charges fees in accordance
with Department of Human Services Victoria directives issued
under Regulation 8 of the Hospital and Charities (Fees)
Regulations 1986, as amended.
Freedom of Information
The Freedom of Information officer is the Manager, Health
Information Services, with final approval by the Director of
Medical Services. Consumers wishing to access documents may
contact the Freedom of Information officer on 03 5623 0611
and access details will be provided. During the 2005/06 year,
74 requests for information under the regulations of the
Freedom of Information Act 1982 were received. Access was
granted in full to 61 applicants and the average processing
time was 13.8 days.
Building Maintenance
West Gippsland Healthcare Group complies with the Building
Act 1993 which encompasses the Building Code of Australia
and Standards for Publicly Owned Buildings November 1994.
Buildings
Buildings certified for approval 3
Constructions subject to mandatory inspections 3
Certificate of final inspection 3
Maintenance
Notices for urgent rectification, attention
or major expenditure were received
Nil
All renovations to existing buildings comply
with regulations and standards including
the Building Code of Australia
Yes
Orders to cease occupancy
Nil
Declarations of Pecuniary Interest
All necessary declarations have been completed.
The information requirements listed in the Directions of the
Minister for Finance Part 9.1.3 (iv) has been prepared and
is available to the relevant Minister, Member of Parliament
and the public on request.
Overseas Travel
No occasions of overseas travel were taken.
Competitive Neutrality
It is Government policy that the costing policies of publicly
funded organisations should reflect any competitive advantage
available to the private sector. During 2005/06 all competitive
neutrality requirements were met.
Consultants
There were two consultancies over $100,000. Consultancies
are listed on page 74 of this report.
Conformity
All renovations to existing buildings conform to the Building
Act 1993. All existing buildings comply with regulations in
force at the time of construction. There are no orders to cease
occupancy or to undertake urgent works. All sites are subject to
a Fire Safety Audit and Risk Assessment according to revised
standards as directed by the Department of Human Services.
Whistleblowers Protection Act 2001
WGHG is committed to the principles of this Act and has
policies and procedures in place to enable full compliance.
The Act is designed to protect people who disclose information
about serious wrongdoings within the Victorian Public Sector
and to provide a framework for the investigation of these
matters. A copy of the Act and a summary of its provisions
is available for inspection at the office of the Chief Executive
Officer. Disclosures made under this policy will be investigated
swiftly, professionally and discretely. No disclosures under the
Act were received during 2005/06.
Disclosure may be made to:
Chief Executive Officer
West Gippsland Healthcare Group
Landsborough Street, Warragul 3820
Phone: 56230631, Fax: 56230896
e-mail: info@wghg.com.au
or
President
Board of Directors
West Gippsland Healthcare Group
Landsborough Street, Warragul 3820
Phone: 56230631, Fax: 56230896
e-mail: info@wghg.com.au
or
The Ombudsman
Level 22, 459 Collins Street, Melbourne
Phone (03) 9613 6222
Fax (03) 9614 0246
Toll Free: 1800 806 314
72

Appendices Compliance Index
Report of Operations
Clause Disclosure Page
Charter and purpose
9.1.3(i)(a) Manner of Establishment and Relevant Minister 13
9.1.3(i)(b) Objectives, functions, powers and duties 13
9.3.1(i)(c) Services provided and persons or sections of community served 7
Management and Structure
9.1.3(i)(d)(i) Names of governing board members, audit committee and chief executive officer 13, 14
9.1.3(i)(d)(ii) Names of senior office holders and brief description of each office 16
9.1.3(i)(d)(iii) Chart setting out organisational structure 15
9.1.3(i)(e) Workforce data and application of merit & equity principles 18
9.1.3(i)(f) Application and operation of FOI Act 1982 72
Financial and other information
9.1.3(ii)(a) Summary of financial results with previous four year comparatives 9
9.1.3(ii)(b) Summary of significant changes in balance sheet 1, 44
9.1.3(ii)(c) Operational and Budgetary objective for the year and performance
against those objectives 2, 3
9.1.3(ii)(d) Major changes or factors affecting achievement of objectives 2, 3
9.1.3(ii)(e) Events subsequent to balance date 68
9.1.3(ii)(f) Consultancies >$100,000 - Full details of each consultancy 74
9.1.3(ii)(g) Consultancies < $100,000 - Number and total cost of consulting engagements 74
9.1.3(ii)(h) Extent of compliance with Building Act 1993 72
9.1.3(ii)(i) Statement that information listed in Part 9.1.3(iv) is available on request 72
9.1.3(ii)(k) Statement on implementation and compliance with National Competition Policy 72
9.8.2 (i) A statement of Occupational Health and Safety (OHS) matters 17
9.8.2 (ii) OHS performance measures 17
Financial Statements
Clause Disclosure Page
Preparation
9.2.2(ii)(a) Statement of preparation on an accrual basis 47
9.2.2(ii)(b) Statement of compliance with Australian Accounting Standards
and associated pronouncements 47
Statement of compliance with accounting policies issued
by the Minister for Finance 47
Statement of financial operations
9.2.2(i)(a) A statement of financial operations for the year 43
9.2.3(ii)(a) Operating revenue by class 52, 53
9.2.3(ii)(b) Investment income by class 52, 53
9.2.3(ii)(c) Other material revenue by class including sale of non-goods
assets and contributions of assets 52, 53
9.2.3(ii)(d) Material revenues arising from exchanges of goods or services N/A
9.2.3(ii)(e) Depreciation, amortisation or diminution in value 43, 55, 57
9.2.3(ii)(f) Bad and doubtful debts 54, 55
9.2.3(ii)(g) Financing costs N/A
9.2.3(ii)(h) Net increment or decrement on the revaluation of each
category of assets 45, 61, 62
9.2.3(ii)(i) Auditor-General’s fees 55, 68
73

Appendices Compliance Index
Financial Statements continued
Clause Disclosure Page
Statement of financial position
9.2.2(i)(b) Balance sheet for the year 44
Assets
9.2.3(iii)(a)(i) Cash at bank or in hand 44, 46, 57
9.2.3(iii)(a)(ii) Inventories by class 44, 58
9.2.3(iii)(a)(iii) Receivables, including trade debtors, loans and other debtors 44, 56, 58, 63, 64
9.2.3(iii)(a)(iv) Other assets, including prepayments 44, 58, 63, 64
9.2.3(iii)(a)(v) Investments by class N/A
9.2.3(iii)(a)(vi) Property, plant & equipment 44, 60, 61
9.2.3(iii)(a)(vii) Intangible assets N/A
Liabilities
9.2.3(iii)(b)(i) Overdrafts 57
9.2.3(iii)(b)(ii) Bank loans, bills payable, promissory notes, debentures and other loans N/A
9.2.3(iii)(b)(iii) Trade and other creditors 44, 61, 63, 64
9.2.3(iii)(b)(iv) Finance lease liabilities N/A
9.2.3(iii)(b)(v) Provisions, including employee entitlements 44, 61
Equity
9.2.3(iii)(c)(iii) Reserves, and transfer to and from reserves (shown separately) 44, 62
Statement of cash flows
9.2.2(i)(c) A statement of cash flows for the year 46
Notes to the financial statements
9.2.2(i)(d) Ex-gratia payments N/A
9.2.2(i)(d) Amounts written off 54, 55
9.2.3(iv)(a) Charges against assets N/A
9.2.3(iv)(b) Contingent liabilities 65
9.2.3(iv)(c) Commitments for expenditure 64
9.2.3(iv)(d) Government grants received or receivable and source 52, 53, 58, 61
9.2.3(iv)(e) Employee superannuation funds 65
9.2.3(iv)(f) Assets received without adequate consideration 56
9.4.2 Transactions with responsible persons and their related parties 67
9.7.2 Motor vehicle lease commitments N/A
9.10 Consistency of Budget and Departmental Reporting (Departments only) N/A
Consultants
Greater than $100,000
Capital Works Project Consultant Fees incurred 2006
Community and Mental Health building Balcombe Griffiths & Associates Pty Ltd $122,504
Andrews House extension Balcombe Griffiths & Associates Pty Ltd $104,846
The above fees relate to indirect contributions paid by DHS on behalf of the Group. These architect fees total $248,193.
Less than $100,000
The number of consultancies engaged during the year were seven, amounting to $135,124. The services provided included
human resource management, strategic planning services and architect fees for capital projects.
74

Glossary and Calendar of Events
Best Practice
Business Plan
Inpatient
Outpatient
Performance
Indicators
ACHS
BOD
BRHS
CDAMS
CEO
CRC
CWDGP
CWGPCP
DHS
DNS
DOCS
EEO
EFT
EQuIP
FBT
GEM
GHA
GP
GST
HACC
HITH
ICT
IP
ISO
IT
LAN
LOS
MURCS
OH&S
PAC
RCNA
VICNISS
WAN
WGH
WGHG
WIES
WLS
The Group
➤ Identifying and matching the best performance of others
➤ A plan designed to meet the broad Key Result Areas
to implement the Mission which provides the unique
reason for the organisation’s existence
➤ A person who undergoes the Group’s formal admission
process and meets the admission criteria
➤ A non-admitted person who does not undergo
the Group’s formal admission process
➤ A measure of quality, quantity, cost or timeliness
used to assess the production or delivery of service
or outcomes achievement
➤ Australian Council on Healthcare Standards
➤ Board of Directors
➤ Bairnsdale Regional Health Service
➤ Cognitive Dementia and Memory Service
➤ Chief Executive Officer
➤ Community Rehabilitation Centre
➤ Central West Division of General Practice
➤ Central West Gippsland Primary Care Partnership
➤ Department of Human Services
➤ District Nursing Service
➤ Director of Community Services
➤ Equal Employment Opportunity
➤ Equivalent Full Time
➤ Evaluation and Quality Improvement Program
➤ Fringe Benefits Tax
➤ Geriatric Evaluation and Management
➤ Gippsland Health Alliance
➤ General Practitioner
➤ Goods and Services Tax
➤ Health and Community Care
➤ Hospital in the Home
➤ Information Communications and Technology
➤ Internet Protocol
➤ International Standards of Operation
➤ Information Technology
➤ Local Area Network
➤ Length of Stay in an acute bed
➤ Monash University Rural Clinical School
➤ Occupational Health and Safety
➤ Post Acute Care
➤ Royal College of Nurses Australia
➤ Victorian Hospital Acquired Infection Surveillance System
➤ Wide Area Network
➤ West Gippsland Hospital
➤ West Gippsland Healthcare Group
➤ Weighted Inlier Evaluation Separations: every patient
discharged from WGHG is allocated a Diagnostic
Related Group (DRG) which reflects the primary reason
for the patient’s episode of care. The DRG has an
assigned resource weight that relates to the complexity
of the patient’s medical condition upon which the
WIES is calculated.
➤ Warragul Linen Service
➤ West Gippsland Healthcare Group
75
Calendar of Events 2006/2007
July 2006
Hospital Comedy Revue
August 2006
Annual Calf Appeal Day
26 October 2006
Annual General Meeting,
Salvation Army Church,
Burke Street, Warragul
at 8 pm. All welcome.
November 2006
Annual Charity Golf Day
April 2007
Murray to Moyne Cycle Relay
An afternoon tea to mark the
retirement of Food Services
Manager Ron Clark was held
in the Garden Room in April.
Pictured are (L-R) CEO
Ormond Pearson, Ron
and wife Jenny.

Index
A
Aboriginal Services 32
Access statistics 11
Acknowledgments 6
Adolescent Health Services 32
Aged Care 30, 31
Allied Health 7, 35, 41
Andrews House 30, 31
Auxiliary Support 37
B
Bed Management 24
Bequests 38
Board of Directors 13, 14
Breast care 27
C
Cardiology 29
Cleaning Standards 22
Cognitive Dementia and Memory Service
(CDAMS) 32, 33
Community Based
Falls Prevention Project 33
Community Health 7, 32
Community Kitchens 33
Complaints Management 22
Consulting Suites 34
Continence 32
Continuing Care Business Unit 26
Continuum of Care 2, 4
Cooinda Lodge 30, 31
Counselling 32
D
Demand Management 24
Diabetes Education 29
District Nursing Service 26
Donations and Sponsorship 39
E
Education 20
Emergency Department 27
Emergency Relief 33
Employee Relations 18
Employment Statistics 18
Engineering 34
Environment 19
Environmental Services 34
Equal Employment Opportunity 18
Executive Staff 16, 40
F
Falls Management 23, 24
Finance 34, 42
Financial Performance 4, 42
Food Services 34
Fundraising 38
H
Haemodialysis 27
Health Information 34
Health Promotion 32
Health Service Agreement 8
High Dependency Unit 27
Home and Community Care Services 33
Hospital Cleanliness 22
Human Resource Management 2, 5
I
Improving Performance 3, 5, 6
Incident Reporting 21
Infection Control 22, 27, 28
Information Management 3, 5
Information Technology 19
Interim Care 27
L
Leadership and Management 2, 4
Life Governors 13, 18
Linen Service 36
Long Service Awards 18
M
Medical Staff 29, 40
Medical Ward 28
Medication Safety 23
Midwifery and Obstetrics 29
N
Nutrition and Dietetics 35
O
Obituaries 6
Occupational Health and Safety 17
Occupational Therapy 35
Oncology 28
Operating Theatre 28
Organisation Chart 15
Outlook 6
P
Paediatrics 27
Palliative Care 27
Payroll 34
Performance Statistics 8-11
Physiotherapy 35
Post Acute Care Program 26
Pre-Admission 29
Pressure Survey 24
Profile 7
Public Relations 38
Q
Quality Report 21
R
Rawson Community Health Centre 33
Risk Management 17
S
Safe Practice and Environment 3, 5
Services 7
Speech Pathology 35
Stroke Management 28
Supply 34
V
Volunteers 30, 37
W
Waiting Times 24
Warragul Linen Service 36
WorkCover 17
Work Experience 18
Auditor:
Auditor General, Victoria
Banker:
Westpac Banking Corporation, Warragul
Solicitors:
M Davine & Co
Design:
Phil Smith Design
Photography:
Fred Reeves
Editor:
Pam Dyson, Public Relations Manager
Printing:
Drouin Commercial Printers
Comments and Complaints:
We invite any comment you may have about the care or service provided by WGHG as this provides an
opportunity for service improvement. Comments or complaints may be directed to the Chief Executive Officer
on 5623 0608.
If the matter is not resolved to your satisfaction, the Health Services Commissioner who assists with complaint
resolution, can be contacted on 9655 5200.
76

Where we are
Baw Baw Health and
1. Community Care Centre
Young St, Drouin Victoria 3820
ph 03 5625 0200
fax 03 5625 0246
email bbhcc@wghg.com.au
Community Services -
2. Pettit House, Warragul
34 Queen St, Warragul
Victoria 3820
ph 03 5623 4488
fax 03 5623 4135
email wgcsd@wghg.com.au
3.
West Gippsland Hospital
Landsborough St,
Warragul Victoria 3820
ph 03 5623 0611
fax 03 5623 0609
email info@wghg.com.au
4.
Warragul Linen Service
Ley St, Warragul Victoria 3820
ph 03 5623 4056
fax 03 5623 5074
email info@wls.com.au
5.
Cooinda Lodge
Landsborough St, Warragul
Victoria 3820
ph 03 5623 0769
fax 03 5623 0896
email cooinda.clerk@wghg.com.au
6.
Andrews House
School Rd, Trafalgar Victoria 3824
ph 03 5633 2665
fax 03 5633 1018
email ah.office@wghg.com.au
SHIRE OF
BAW BAW
Community Services
7. - Trafalgar
Contingent Street, Trafalgar
Victoria 3824
ph: 03 5633 1977
email traf.chs@wghg.com.au
Rawson Community
8. Health Centre
PO Rawson Victoria 3825
ph 03 5165 3236
fax 03 5165 3268
email rawson.chc@wghg.com.au

Head Office:
West Gippsland Hospital
Landsborough Street
Warragul, Victoria 3820
Telephone (03) 5623 0611
Facsimile (03) 5623 0896
Email: info @wghg.com.au
www.wghg.com.au