CGHS Annual Report 2005 - GHA Central

Contents
History of Central Gippsland Health Service 2
Our Community 2
Projected demands by 2011 2
Administrator’s Report 3
Board of Management 4
Overview of Services 5
Executive Staff 6
Service Performance at a Glance 7
Our Structure 8
Annual Report on Activities 9
Acute Services 9
Community Services 13
Residential Aged Care Services 15
Corporate Services 16
Quality of Care Report 18
Auxiliaries, Volunteers and Fundraisers 19
Senior Personnel 21
Visiting Medical Officers 22
Statutory Information 23
Report of Operations 25
Financial Statements
Photos on Cover: (top to bottom)
The Meals on Wheels program receives strong community support,
through its volunteer group and local organisations.
CAVA proved one of the best community organisations in Victoria,
earning a place in the finals of the Regional Achievement and
Community Awards. Pictured receiving the award is CAVA
representative Stuart Muirhead.
Central Gippsland Health Service has excellent medical imaging
facilities, which is helping to attract well qualified staff.
The opening of the new Rosedale Community Centre attracted a lot
of interest.
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annual report
2005/2006

Our History
The forerunner of today's Central Gippsland Health Service
was the Gippsland Base Hospital, established more than 130
years ago.
In the intervening years, various other service entities were
established in the surrounding districts of what is now the
Wellington Shire.
These included home and community services, community
health centres and maternal and child health centres
established by municipalities based in and around Maffra,
Sale and Rosedale in the 1970s.
Through a series of amalgamations, the Gippsland Base
Hospital, Maffra and District Hospital, the JHF McDonald
Nursing Home and Evelyn Wilson Nursing Home became the
Central Gippsland Health Service in 1999. As well, the
Heyfield Hospital, Stretton Park and Laurina Lodge Hostel
have become associated by management agreement with
the Central Gippsland Health Service.
That means that in the 2005-06 financial year Central
Gippsland Health Service was responsible for the majority of
acute and residential aged care as well as a wide range of
community services throughout Wellington Shire, excluding
Yarram district.
Central Gippsland Health Service has 88 acute beds, 3
labour beds and 80 nursing home beds. The Health Service
also provides management and corporate services to two not
for profit private facilities, Stretton Park Hostel Inc and Heyfield
Hospital Inc. These facilities have acute and aged care
services as well as 15 independent living units. Nearly 900
staff members occupying almost 600 full time equivalent
positions are employed by Central Gippsland Health Service,
which is also supported by some 600 volunteers and has
total revenues of more than $55 million.
The organisation serves the immediate population in Central
Gippsland, while acute specialist services reach a wider
community in East Gippsland and parts of South Gippsland.
Our Community
REHABILITATION
Projected to increase by 30.1%.
RESIDENTIAL AGED CARE
Potential growth in demand of 37.8% for nursing homes and
42% for hostels.
SUB-ACUTE SERVICES
Growth in demand of 40.9%.
COMMUNITY SERVICES
Forecast population changes show significant growth in the
65+ age group. This growth suggests that demand on
community services might be increased by 51% by 2011.
Age Population Projections:
Wellington Shire 2001 to 2011
2001 2006 2011 Variation
Age Group % % % 2001/11
Total
Population 42,473 42,161 41,585 -2.1%
0-4 yrs 6.0 5.2 4.8 -20.0%
5-19 yrs 24.2 22.5 20.0 -17.4%
20-34 yrs 16.0 14.6 14.3 -10.6%
35-49 yrs 23.5 22.6 20.9 -11.1%
50-64 yrs 16.8 20.0 22.8 35.7%
65-74 yrs 7.4 7.8 9.2 24.3%
75-84 yrs 4.7 5.5 5.6 19.1%
85+ yrs 1.4 1.8 2.3 64.3%
Summary
50+ yrs 30.3 35.1 39.9 31.2%
70+ yrs 9.9 10.8 11.9 20.2%
Source: Department of Infrastructure, 2001
● Population approximately 42,000 for Wellington,
geographically the third largest Local Government Area in
Victoria.
● Lower socio economic profile than the Victorian average,
with higher than average percentage Koori population.
● Poorer health status than the Victorian average, due largely
to higher rates of cardio-vascular disease, cancer and
injuries.
Projected demands by 2011
ACUTE SERVICES
Stable, although pressures will exist on the use of acute beds
which is partially due to a shortage of rehabilitation services
in the region.
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2005/2006
2

Administrator’s Report
The 2005-2006 financial year has been a time of
consolidation for the Central Gippsland Health Service.
As well as a significant improvement in the organisation’s
financial situation, a number of large projects have been
completed. These include upgrades to the Heyfield Hospital,
which celebrated further development of Laurina Lodge, and
extensions and refurbishment at Stretton Park in Maffra.
A short term strategic directions paper was developed to help
guide the Central Gippsland Health Service over the next two
years. It provided a clear transition from the period of
administration, with the assistance of the Community Advisory
Committee, to the re-establishment of a Community Board.
We are indeed grateful to all who contributed to this strategic
directions paper. Input was received from the Community
Advisory Committee, the Consumer Consultative Committee,
the Chair of the Visiting Medical Officers’ Group and the
Executive Team.
In the next financial year, we look forward to completion of a
$2.3 million Community Rehabilitation Centre, which started
in June 2006. The project includes a major redesign and
refurbishment of the former Evelyn Wilson Nursing Home
adjacent to the acute section of Central Gippsland Health
Service in Sale. - An artist’s impression of the refurbished
building is below.
Central Gippsland Health Service continues to enjoy
exceptional support from right across the community, with
auxiliaries and support groups providing on-going financial
and moral assistance. Some of the contributions by our
supporters are detailed throughout this report.
The staff have also continued to perform in a very
professional and competent manner. Despite the distractions
of the past couple of years, staff have maintained their focus
on providing care and service for patients. Their commitment
to their work and the general community are also explained
in more detail in this report. Thank you.
Thank you also to our volunteers who perform such a
magnificent job and to our fundraising committee and
auxiliaries. All show enormous commitment to the Health
Service.
The support of the members of the Community Advisory
Committee, the Consumer Consultative Committee, Heyfield
Hospital Board of Management and Stretton Park Hostel
Board of Management is indeed appreciated.
Peter Craighead
Administrator
Administrator
(appointed by Governor in Council, November 2004)
Peter Craighead
Community Advisory Committee
(Appointed April 2005)
Local construction group Macalister Constructions Pty. Ltd. won
the project, which will see the building extended slightly to
house all of the allied health services – including
physiotherapy, speech therapy, podiatry, occupational therapy
dietetics and social work. The capital works have been
funded by $2 million through the Commonwealth
Government’s Department of Health and Ageing, while
recurrent funding will come through the State Government’s
Department of Human Services.
The new Board of Management, following some 19 months
under administration, was announced by the Government in
May 2006. It includes Rosita Petch, Graeme Dyer, Kevin
Young, Ann Key, John Sullivan, John Lawrence, Catherine
Darby and Glenn Stagg. A number of those people had also
served as members of the Community Advisory Committee
members, including John Lawrence, Catherine Darby, Ann
Key, Graeme Dyer, and Glenn Stagg.
● Graeme Dyer, Company Director, Dyer Transport Group
● Rev Ann Key, Presbytery Minister, Uniting Church
● Catherine Darby, Manager Organisational Development at
Wellington Shire Council
● Helen Helleren, Primary School Teacher at Cowwarr
● John Lawrence, Executive Director of Kilmany Uniting Care
● Glenn Stagg, Director of accounting firm Duesburys.
The new Board will resume management of a Health Service
in a relatively sound financial position.
The financial situation has improved such that local
businesses are able to be paid on a timely basis. The cash
position enables Central Gippsland Health Service to be in
an effective position to achieve a number of key
developments.
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annual report
2005/2006

Governance
Central Gippsland Health Service is a Body Corporate listed
in the Victorian Health Services Act 1988 and operates under
the provisions of this Act.
The Minister responsible for the administration of the Victorian
Health Services Act is the Minister for Health, The Hon.
Bronwyn Pike, M.P.
An Administrator was appointed by the Governor in Council
in November 2004 under Section 61(2) of the Health
Services Act 1988 to assume the functions of a Board of
Management until 1 July 2006.
The registered office of CGHS is 155 Guthridge Parade, Sale,
3850. Telephone (03) 5143 8600
The Administrator was advised by a Community Advisory
Committee throughout the reporting period.
The Committee members included Graeme Dyer, Rev Ann
Key, Catherine Darby, Helen Helleren, John Lawrence and
Glenn Stagg.
The appointment of a new Board of Management was
announced in May 2006, with a number of the members of
the Community Advisory Committee joining the Board. The
Board assumed its duties from 1 July 2006.
The Board members announced in May were:
● Rosita Petch, of Loch Sport: Member of the Loch Sport
Ambulance Auxiliary and a Volunteer Community
Ambulance Officer. Background in nursing and nursing
administration.
● Graeme Dyer, of Sale: Member of the Central Gippsland
Health Service Community Advisory Committee. Owner of
Dyers Gippsland Transport, with background in
occupational health and safety and human resource
management. Member of Wellington Shire Road Safety
Group. Past Central Gippsland Health Service Board
Member.
● Ann Key, of Sale: Presbytery Minister, Uniting Church,
Member of the Central Gippsland Health Service
Community Advisory Committee and chair of the Consumer
Consultative Committee. Past Central Gippsland Health
Service Board Member.
● Catherine Darby, of Sale: A manager at Wellington Shire
Council, and a Member of Central Gippsland Health
Service Community Advisory Committee. Board Member of
Kilmany Uniting Care.
● John Lawrence, of Maffra: Executive Director of Kilmany
Uniting Care, with a background in business management
and health policy. A past CEO of Lakes Entrance
Community Health Service, he is the Victorian representative
of the National Rural Special Interest Group of the
Australian College of Health Service Executives and a
member of the Lake Tyers Aboriginal Trust Health and
Children’s Service Committee. Also Community Advisory
Committee Member.
● Kevin Young, of Sale: Chartered accountant and company
auditor. Board member of West Gippsland Catchment
Management Authority and treasurer of Seaspray Reserves
Committee of Management.
● Glenn Stagg, of Sale: Member of Central Gippsland
Health Service Community Advisory Committee. Accountant,
and past Board Member of the Gippsland Base Hospital.
● John Sullivan, of Sale: Lawyer, and a past chairman of the
Board of the Gippsland Base Hospital.
Workforce Data
Employment Statistics - Total Number of Staff Employed CENTRAL GIPPSLAND HEALTH SERVICE
Occupational Category Female % Male % Total FTE
Administration & Clerical 12%
Health & Allied 28%
Hospital Medical Officers 2%
Medical Officers 2%
Mediacl Support Services 7%
Nursing 48%
95
187
4
4
46
384
11%
22%
0%
0%
5%
45%
10
56
13
17
14
26
1%
7%
2%
2%
2%
3%
105
243
17
21
60
410
81.34
150.11
17.02
12.92
45.56
224.48
Total Number of Staff Employed
720
84%
136
16%
856
531.42
Statistics for Whole of Network
Female % Male % Total FTE
Central Gippsland Health Service
Heyfield
Stretton Park
720
85
32
73%
9%
3%
136
7
3
14%
1%
0%
856
92
35
531.42
43.63
19.91
Total Number of Staff Employed by
the Whole Network*
837
85%
146
15%
983
594.96
*NOTE: These figures do not include the Sale Elderly Citizens Village, which became a separate entity from 1 July 2005.
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2005/2006
4

Overview of Services
Acute Care
Clinical
Cardiology
Critical Care
Day Procedure
Dialysis
Emergency
Specialist Medicine
Specialist Surgery
General Practice
Hospital in the Home
Obstetrics
Paediatrics
Oncology
Operating Theatres
Pre Admission
Visiting Specialist Services
Genetics
Ophthalmology
Paediatric Surgeon
Ear, Nose & Throat
Dermatology
Lithotripsy
Gastroenterology
Urology
Orthopaedics
Renal Medicine
In-Vitro Fertilisation
Support Services
Nursing Administration
Bed Allocation
Discharge Planning
Infection Control
Stomal Therapy /Wound
Management
Professional Development
Food Services
Pharmacy
Environmental
Breast Care
Outpatient Services
Continence Advisor
Podiatry
Cystic Fibrosis
Audiology
Residential & Aged Care Services
High Level Care
Maffra - McDonald
Wing
Sale - Wilson Lodge
Nursing Home
Heyfield - Laurina
Lodge
Respite Care
Heyfield - Laurina Lodge
Maffra - Stretton Park
Hostel
Low Level Care
Maffra - Stretton Park
Heyfield - Laurina Lodge
Independent Living Units
Maffra - Stretton Park
Community Services
Allied Health to both
the Acute and
Community Settings.
Community Health and
Partnerships
Partner/Member
Co-located Visiting Services
- Physiotherapy
- Occupational Therapy
- Podiatry and foot carers
- Dietetics
- Speech Therapy
- Social Work - Acute
- Koori Liaison
- Child Services
- School Services
- Discharge Planning
- Post Acute Care
- Making a Difference
Program
- Counselling
- Community Health Nursing
- Respiratory Educator
- Diabetes Educator
- Volunteer Program (CAVA)
- Special Projects
- Maternal and Child Health
including Enhanced Home
Visiting and Day Stay
- Community Dental Program
- Wellington Primary Care
Partnership
- Wellington Working
Together for Families
(formerly Best Start
Wellington)
- Youth Health Clinic
- Let’s Get Connected
Transport Project
Committee
- Various other
collaborative projects
- Community Mental Health
- Family Court Counselling
- Family Mediation
- Migrant Resource Centre
- Primary Mental Health
- East Gippsland Division
General Practice
- SCOPE
Home Support and
Service Co-ordination
Home Nursing
Community Support Groups
Business Support
- Home Care
- Personal Care
- Respite Care
- Delivered Meals
- Home Maintenance
- Planned Activity Groups
- Intake
- Service Co-ordination
- Community Transport
- District Nursing
- Palliative Care
- Hospital in the Home
- Nursing Assessment
- Grief and Loss Co-ordination
- Childbirth Education
Classes
- Parkinson’s Support Group
- Carers’ Support Group
- New Mothers’ Group
- Administration
- Reception
- Client Records
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annual report
2005/2006

Overview of Services
Corporate Services
Finance
Human Resources
Support Services
Information Services
- Financial and
Management Reporting
- Accounts Payable
- Account Receivable
- Reception
- Admissions
- Recruitment
- EEO
- Induction & Orientation
- Industrial Relations
- Occupational Health & Safety
- Risk Management
- Staff records
- WorkSafe / Return to Work
- Engineering
- Equipment Maintenance
- Telecommunications
- Asset Management
- Building Maintenance &
Development
- New Capital Works
- Medical Records
- Freedom of Information /
Privacy
- Health Records
Payroll
Environmental Services
Information Technology
- Payroll
- Salary Packaging
- Porters
- Security
- Information Technology
- Applications
- IT Infrastructure
Supply Services
Medical Library
- Supply
- Fleet Management
- Accommodation
- Management
Food Services & Catering
Administration
- Strategic Planning
- Major Projects
- Public Relations
- Fundraising
- Government Relations
- Organisational Policy
Development
- Quality Management
Business Units
- Medical Imaging
- Home Support Services
- Linen Service
- Food Services
- Prison Services
Executive Staff
Administrator
Peter Craighead
Director of Finance
John Lau (until December 2005)
Director Medical Services
Dr Brian Cole
Director of Nursing, Midwifery and Aged Care
Amanda Cameron from August 2005
Director Community Services
Mandy Pusmucans from October 2005
Director Corporate Services
Michael Clamp from October 2005
Director Residential Aged Care
Vicki Rodrigues (until September 2005)
Solicitors
Health Legal
Sullivan and Braham
Banker
National Australia Bank Limited.
annual report
2005/2006
6

Services Performance at a Glance
Inpatients Treated
Total Inpatients Days
15000
33000
32500
12000
32000
31500
9000
31000
30500
6000
30000
29500
3000
29000
28500
0
2000/2001 2001/2002 2002/2003 2003/2004 2004/2005 2005/2006
2000/2001 2001/2002 2002/2003 2003/2004 2004/2005 2005/2006
Percentage of Public and Private Admissions
Wies Target & Actual
100%
Public
Private
7500
Wies
Target
Actual
Wies
80%
7400
7300
60%
7200
7100
40%
7000
6900
20%
6800
6700
0
2000/2001 2001/2002 2002/2003 2003/2004
2004/2005 2005/2006
6600
2000/2001 2001/2002 2002/2003 2003/2004
2004/2005 2005/2006
Average Length of Stay (days)
2.9
2.85
2.8
2.75
2.7
2.65
2.2.6
“WIES” is the acronym for Weighted Inlier Equivalent Separation.
Patient demographic details, the medical treatment received, and
length of stay data makes up the WIES component. All Public
Hospitals are funded by WIES, which has a set dollar value per WIES.
The Department of Human Services calculates and applies a WIES
target to hospitals which must endeavour to work within 2% of the
designated target. Careful monitoring of WIES activity is conducted
throughout the year, ensuring Central Gippsland Health Service meets
its WIES target.
2.55
2000/2001 2001/2002 2002/2003 2003/2004 2004/2005 2005/2006
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annual report
2005/2006

Structural Framework
Board
Chief Executive
Community Relations
Internal Audit & Business Analyst
Director
Medical
Services
Director of
Nursing,
Midwifery &
Aged Care
Director of
Community
Services
Director of
Corporate
Services
Medical Services
Medical Staff
V.M.O.’s
Hospital Medical
Officers
Management
Surgical Services
General
Physicians
Emergency
Medicine
General
Practitioners
Anaesthetics
Obstetrics &
Gynaecology
Paediatrics
Pathology
Radiology
Pharmacy
Medico - Legal
Medical Student
Liaison (Monash)
Operations/Access
Admissions & Bed Management
Hospital Coordinators
Acute Inpatient Units
Medical Unit
Surgical Unit
Women’s & Children’s Unit
Maffra Campus
Heyfield Hospital
Emergency Department
Critical Care & Ambulatory Services
CCU
Cardiology
Oncology
Dialysis
Surgical Suite Services
Operating Theatre
Central Sterilising Supply Dept
Day Procedure Unit
Pre Admission
Clinical Nurse
8
Consultants
Infection Control & Immunisation
Wound Management
Residential Aged Care Services
Wilson Lodge
Stretton Park
Maffra Campus
Heyfield Laurina Lodge
Professional Development
Quality Coordination (Organisational)
Allied Health - including
Dietetics
Koori Hospital Liaison
Occupational Therapy
Physiotherapy
Speech Therapy
Social Work & Outpatients
Corporate Support
Home Nursing - including
Palliative Care
District Nursing and
Hospital in the Home
Home Support & Service
Co-ordination - including
Intake
Assessment and Care Co-ordination
Community Health & Partnerships
- including
Maternal and Child Health
Dental
Counselling
Community Nursing & Health Promotion
Facilitating Partner For:
Wellington Primary Care Partnership
Gippsland Regional Palliative
Care Consortium
Human Resources
General Recruitment
Health & Safety
Work Cover
Switchboard &
Admissions
Finance/Payroll &
Salary Packaging
Information Management
Information
Communication
Technology
Medical Records
Privacy Legislation
Library
Facilities Management
Car Parking
Engineering Services
Security Contracts
Waste Management
Supply, Purchasing &
Fleet Management
Catering
Environmental Services
Linen Service
Clinical
Governance
annual report
2005/2006
8

Acute (Hospital) Services
PROFILE
Central Gippsland Health Service Acute Care Division
provides acute care as part of an integrated service delivery
model across Wellington Shire and beyond.
The service provides 88 acute beds across three sites (Sale,
Maffra and Heyfield).
Acute services include General Surgical plus Specialties such
as Orthopaedics, Urology, Eye, Ear, Nose and Throat, General
Medical with specialty supports for Gastroenterology,
Respiratory, Cardiac and Critical Care Services, Obstetrics
(including Domiciliary Midwifery and Antenatal Pre-Admission
Services), Level 2 Neonatal Nursery, Paediatrics and
Gynaecology.
This year has seen Acute Services further develop and grow
to meet the ever changing needs of our community. Our focus
continues to be on quality and risk management activities
with three main areas - medications, falls and pressure -
targeted across the organisation.
Major redevelopment of our medication policy and
procedure began during the year and is nearing completion,
providing registered nurses and junior medical practitioners
with clear guidelines involving the prescribing, storage and
administration of medications. Central Gippsland Health
Service has continued the implementation of the National
Medication Chart in line with a Department of Human
Service directive.
The Health Service participated in the Pressure Ulcer
Prevalence Survey Number 3. This has enabled more nurses
to be trained in detecting the early signs of pressure and the
importance of implementing risk reduction strategies.
The service is based at St Vincent's Hospital and the
Lithotripter is transported to regional areas to provide the
facility.
Patients who would have previously required major surgery
are able to be treated as day patients and return to their
usual lives within a few days.
The Gippsland regional service is provided in the operating
theatres at Central Gippsland Health Service. Between 4 and
6 people will be treated at each visit 3 or 4 times a year.
In August 2005 the Endoscopy Unit had a major equipment
upgrade.
Women’s and Children’s Unit
The midwives and nurses of the Women’s and Children’s Unit
provide services in midwifery, paediatrics and neonatal care.
During 2005/2006, staff have assisted with the birth of 481
babies, the highest number for the past five years, including
21 sets of twins.
There have been 584 paediatric admissions and 184 babies
were treated in the special care nursery. Four qualified
Lactation midwives assist with the establishment and
maintenance of breastfeeding.
The Women’s and Children’s Unit provides Childbirth
Education sessions, an antenatal pre-admission clinic and a
domiciliary service to the parents of the Wellington Shire and
surrounds.
Emergency Department
The Emergency Department saw a slight increase in workload
from the previous year, with 12,864 presentations. Although
there was an increase in presentations, the number of
admissions decreased to 2,339, reflecting the move to
ambulatory care.
As part of the Department of Human Service Flu Pandemic
preparedness, the Emergency Department received a
portable ‘oxylog’ ventilator.
Post graduate education remains a high priority for the
department with two nursing staff enrolled in courses.
Perioperative Unit
This unit incorporates Day Procedure Unit, Pre Admission
Clinic, Operating Rooms, Endoscopy and Clinical Sterilising
Department.
The number of patients that passed through the operating
room doors increased this year to 4,296, including 520
emergency cases, with a total of 4,977 procedures
performed.
The range of surgical services available at Central Gippsland
Health Service has expanded to include Renal Lithotripsy,
provided as part of the St Vincent Hospital Regional
Lithotripsy Service. Lithotripsy involves the non surgical
treatment of renal stones. The Lithotripter produces high
frequency sound waves, which break up kidney stones into
small pieces that can be passed in the urine.
Michelle Perry from Sarsfield is pictured with her twin
daughters Meg and Faith. A remarkable 21 sets of twins
were delivered through the year.
Critical Care
The Critical Care Unit is a six bed unit providing coronary
and intensive care facilities. The unit provides for the referral
of critically ill patients from East and South Gippsland and is
part of the Statewide Intensive Care registry providing
updates on bed status three times a day.
In 2005/2006 there were 585 admissions, including 68
ventilated patients with a total of 296 ventilator bed days.
The Critical Care Unit has been able to purchase some vital
pieces of equipment with assistance from Heart Beat
Wellington branch and the Gippsland Base Hospital
Auxiliary. Their contributions are gratefully acknowledged.
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annual report
2005/2006

Acute (Hospital) Services
Oncology
The Oncology Unit co-ordinates a variety of chemotherapy
treatments for inpatients and outpatients in the Wellington
Shire.
The unit liaises with the Gippsland Regional Integrated
Cancer Service and collaborates on the development of
procedures and protocols that are used across the Gippsland
region.
The new Oncology Quiet room was opened in late 2005
and has provided an area where patients, their families,
doctors and nurses are able to discuss sensitive issues such as
treatment options in a private and tranquil environment. This
was made possible through the generous donations of the
community.
A ‘quiet room’ was a welcome addition to the Oncology
department through the year. The room is a place where
patients and relatives can discuss treatment options, other issues
related to their condition or simply have some time to
themselves. The room was refurbished with community donations,
notably from Elsbeth White, who is pictured (seated in the centre)
with from left Manager Medical Imaging Michael Coleman,
Administrator Peter Craighead, Oncology Clinical Nurse
Consultant Linda Langskaill and Oncology Unit Nurse Manager
Jennifer Dennett.
Surgical Unit
Staff in the Surgical Unit have risen to the challenge
presented to them by an increasing throughput of surgical
patients, as well as providing care to some medical patients.
They have had a difficult year with the resignation of their
Nurse Unit Manager and some other senior staff; however
they have continued to provide a quality service to the
community.
Wound Management and Stomal Therapy
The role of the Clinical Nurse Consultant position is to
promote, implement and evaluate clinical care provision for
stomal therapy and wound management issues. This includes
acute, community and aged care sectors.
Education and clinical support on Wound Management and
Stomal Therapy is provided to all nursing staff.
Achievements this year:
● Wound management partnership with a major product
supplier Smith and Nephew who not only provide an
excellent range of wound products but deliver education
services to Central Gippsland Health Service.
● Participation in the third State-wide Pressure Ulcer Point
Prevalence Study (PUPPS) in May 2006. Five nursing staff
attended an education day on preventing and staging
pressure ulcers and acute and sub-acute patients were then
assessed for the presence of pressure ulcers. Formal results
are pending but the nursing staff remain diligent on this
important issue.
● Self directed Wound Management education program was
implemented and available to all nursing staff.
Dialysis
The unit celebrated its 10th birthday this year with a party for
patients and staff.
New dialysis machines have recently been installed, supplied
by St Vincent’s Hospital in Melbourne. Central Gippsland
Health Service’s dialysis unit is a satellite service to the parent
hospital St Vincent’s.
Medical Unit
The Medical Unit continues to manage stroke patients under
the Rural Organisation of Acute Stroke Teams (ROAST)
guidelines and will be participating in version three of the
project for 2006.
Nurse Unit Manager Jennie Wright has been instrumental in
the development and implementation of a falls risk
identification and harm minimisation program that has been
adopted across the organisation.
annual report
2005/2006
10
Pictured at the 10th anniversary celebration in the dialysis unit
are a mix of old and new staff with, from left, Andrea Johnson,
Karen Llewellyn, Jenny Dennett, Marilyn Battour, Donna Kemp
and Wendy Yarram.
Cardiology Department
The Cardiology Department offers a range of out-patient and
in-patient services including ECG recordings, exercise stress
tests, nuclear scan stress tests, 24 hour ambulatory and blood
pressure monitoring, event monitors and pacemaker testing.
It services a large area from Foster to Mallacoota and at
times to Latrobe Valley patients. Specific service activities are
as follows.
The pacemaker clinic
The pacemaker product is represented by four different
companies which each produce their own brand of
pacemaker. Each of these is inherently similar in its action

Acute (Hospital) Services
but the companies prefer to be responsible for their own
testing with their own equipment.
The clinics have increased from less than 15 patients per
month when the clinic began checking patients more than 10
years ago, to the current figure of 84 per month. Now there
are 320 patients in the data base requiring at least six
monthly pacemaker testing.
Isotope scan exercise tests and plain exercise tests.
This service has also increased, with the number of patients
undertaking the test up by more than 150 patients. There
were 668 tests conducted to the end of June 2006. This is
due, in part, to other areas being unable to provide exercise
tests, but also due to earlier intervention and diagnostic
testing for cardiac related disease.
The service attracts patients from outlying areas such as
Orbost, Mallacoota, and Lakes Entrance to Foster, Yarram,
Toora, Traralgon and all places in between.
Other monitoring and testing services
These include the Holter and Event Monitors for checking
cardiac rhythm and also the 24 hour ambulatory blood
pressure monitor. The Cardiology Department, in conjunction
with other hospitals around the State and under the auspices
of the Alfred Hospital, conducted and finalised the lipid study.
This was completed several years ago, and ambulatory blood
pressure monitoring continues in its own right with finalised
reports returned to the various General Practitioners for them
to follow up with their patients.
The Holter monitoring is very popular - there are two devices
which are in almost constant use and have in part led to the
increase in pacemaker numbers. Detection of dangerous or
serious arrhythmias can be achieved as an out-patient in the
home setting, creating higher availability of hospital beds.
Early interventions have preserved many lives.
Resuscitation
Fourteen resuscitation coordinators manage the resuscitation
training and education for all of Central Gippsland Health
Service. These coordinators are nurses who work in various
roles when not teaching resuscitation techniques.
This year has seen the publication of the new Australian
Resuscitation Council guidelines on resuscitation and the
resuscitation team has been busy reviewing and changing
the resuscitation procedure and planning the implementation
of these major changes.
Amanda Cameron
Director of Nursing, Midwifery and Aged Care
11
annual report
2005/2006

Medical Services Report
The Director of Medical Services has key responsibilities in a
number of areas, including service planning and
development, clinical governance, and managing and
recruiting both senior and junior medical staff.
● Service Planning and Development
Provide advice to the Board of Management on practice
change and technological development and how these will
affect health services and Central Gippsland Health Service in
particular. These are critical issues in relation to investment in
equipment, building redevelopment and future staffing
requirements.
● Clinical Governance
Clinical governance is about individual doctors and hospitals
being accountable for the services provided. This includes the
credentialing of doctors to ensure that they have the
necessary training to fulfill their role and that they are
involved in ongoing education. It also includes establishing
processes that monitor the quality and safety of the services
provided. Understanding of the importance of this role has
grown from experiences with poor outcomes for paediatric
cardiac surgery in Bristol, England and Winnipeg, Canada.
Events in hospitals in Australia, notably the King Edward
Hospital for Women in Perth and Bundaberg in Queensland,
have reinforced the need to develop an open culture where
adverse events are disclosed and processes exist to examine
the clinical and emotional outcomes for patients and their
families. Clinical governance is seen as the major
professional role of the Director of Medical Services.
● Managing and Recruiting Senior Medical Staff
This ranges across professional, industrial, medico legal,
educational and clinical practice issues and includes areas as
diverse as employment contracts to requests for equipment.
Recruiting is challenging in rural areas and succession
planning is always on the agenda. This last year has seen
the appointment of a new Director of Anaesthetics, Dr Gary
Rooke, to replace Dr Rajaratnam who is retiring after 16 years
of service. Recruitment of a specialist
physician/gastroenterologist from Malaysia and a South
African paediatrician from Botswana is nearing completion.
● Managing and Recruiting Junior Medical Staff
Central Gippsland Health Service employs 13 junior medical
staff. Some of these doctors are in training positions and
rotate from metropolitan hospitals. Others are employed
directly by Central Gippsland Health Service and trained
originally overseas.
Medical students spend time at the health service in the Monash
University Regional Clinical School, co-located at the Sale
campus. Pictured are a group of Monash University first year
medical students on placement at CGHS, as part of their
training.
Central Gippsland Health Service has a major responsibility
to provide education and training for doctors entering the
Australian Health Care system. The Medical Practitioners
Board and the Postgraduate Medical Council of Victoria have
made this obligation increasingly formal as part of their
responsibility for the quality and safety of care in hospitals.
The Health Service has utilised funds provided by the
Department of Human Services to provide a person two days
per week to ensure that Central Gippsland Health Service
meets its obligations as an employer both industrially and
educationally.
In the last 12 months the organisation has stabilised
financially and the year has been one of growth in activity.
The clinical governance framework has been established and
service reviews have begun. The service reviews are
performed as part of the planning process to establish future
need for physical facilities, equipment, staff and education.
Just as importantly they also address the processes that
should be in place for clinical governance.
The next 12 months will be one of consolidating services and
developing a longer term agenda for investment and
succession planning.
Dr Brian Cole
Director Medical Services
Medical Imaging Scientist Narelle Harrison at work in the hi-tech
medical imaging department. Narelle moved back to Gippsland
and her job at CGHS during the year.
annual report
2005/2006
12

Division of Community Services
PROFILE
The Division of Community Services operates from seven sites
across the Shire of Wellington, including Sale, Maffra,
Heyfield, Rosedale, Loch Sport, Stratford and Briagolong.
It has approximately 250 staff from a range of disciplines,
who deliver Home Support and Service Co-ordination,
Community Health incorporating Maternal and Child Health,
and Community Dental Services. Allied Health both in the
Acute and Community setting, and Home Nursing –
incorporating District Nursing, Hospital in the Home and
Palliative Care. This is supported by a business support team.
Services are delivered in clients’ own homes and at Central
Gippsland Health Service sites.
In June 2006, the new Rosedale Community Centre was
officially opened. For many years the staff and community
representatives at Rosedale have worked towards upgrading
their facilities, and now the dream has finally come true!
The Centre is home to five community services, one of which is
Central Gippsland Health Service. It is a state of the art centre
with the added strength of being located with other
community groups. This will enable even stronger linkages
and collaboration with positive outcomes for the local
community.
During 2005/2006 a number of changes occurred within the
Division, but client service delivery has continued to be of a
high standard. Thank you to all staff and volunteers whose
commitment to our clients has been outstanding.
A major activity was a review of the Divisional structure, with
the main aim to build on our achievements and place the
division in a position where it will be able to meet anticipated
growth in the sector. The division has four main service
delivery teams:
● Home Nursing
● Home Support and Service Coordination
● Community Health and Partnerships, and
● Allied Health
Details are outlined in the Organisational Chart.
A Community Services Manager is responsible for each of
these teams as well as clinical and service delivery experts.
We also retained our Business Support Team which
incorporates client records, reception, and other valuable
administrative support. The review has been a major activity
and has brought with it many challenges as we progress
through an implementation phase.
Members of the public inspect the new Rosedale Community
Centre at its official opening in June.
Services provided include general practitioner, visiting nursing,
health promotion, visiting maternal and child health nurse,
counselling and podiatry.
The Community Rehabilitation Centre at Sale has started, with
the $2.3 million project due to be completed by early 2007.
All allied health staff will relocate into the Centre, and
additional community rehabilitation services will be
established. The rehabilitation service will be supported by a
specialist Rehabilitation Physician, Dr Krishna Mandaleson.
The Maternal and Child Health program offers client sessions
throughout the Shire. The year has been extremely busy
again, with birth notifications increasing. The staff have also
significantly supported two additional projects, as follows
The Youth Health Clinic, run in partnership with Kilmany
Uniting Care and Ramahyuck District Aboriginal Corporation,
offers weekly sessions to young people in the Shire. Sessions
include a playgroup, maternal and child health visits and
youth counselling. These sessions are complemented by
access to a bulk billing general practitioner at the Gippsland
Family Practice.
Gippsland MHR Peter McGauran, left, is pictured with State
Government representative, Monash MLC Johan Scheffer at the
official opening of the Rosedale Community Centre, where
Central Gippsland Health Service’s Rosedale facilities are now
located.
The other project, the 12 month pilot Breastfeeding Support
Clinic, commenced in January 2006. Maternal and child
health and other staff have supported the establishment of
this project.
Our Community Dental Service continues to try and meet the
significant demand, which is comparative with the demand
on public dental services in the State. The New Year brought
challenges with the resignation of one dentist, which has
placed added pressure on an already high demand service.
13
annual report
2005/2006

Community Services Report
Focus has now shifted to recruitment of dental staff.
Fortunately, the services of a locum dentist have been secured
and the dentists are well supported by dental nurses, a
dental technician and reception staff.
Central Gippsland Health Service’s first Koori Hospital Liaison
Officer was recruited in late 2005. After seven months, the
position has established itself within the organisation and has
become well known within our local Koori community. We
believe this has been a significant step towards improving the
hospital experience for our local Koori community members.
Central Gippsland Health Service has a Consumer Consultative
Committee, which launched a new brochure that outlines the role
and function of the Committee. Pictured at the launch are
Committee members, from left, Alan Murray, Ann Key (Chair) and
Noel Tatchell, with Ken Hills and John Lawrence in front. John was
guest presenter at the launch, talking about consumer participation.
The position of Koori Liaison Officer was created during the year.
Sandra Neilson, was appointed as the first incumbent, and
works as part of the Allied Health Team.
The Central Gippsland Health Service Consumer Consultative
Committee has met on a two monthly basis throughout the
year. Chaired by the Reverend Ann Key, and attended by up
to eight community members as well as senior staff, this forum
has provided an opportunity for consumers and members of
the community to provide feedback and perceptions to
Central Gippsland Health Service regarding program
planning, provision and evaluation.
Over the past year issues have included:
● Launch of a Consumer Consultative Committee brochure
● Review of the new Client Information Directory for Central
Gippsland Health Service
● Discussion around equipment used by inpatients -
televisions, patient call bells, and so on.
● Encouraging participation by particular community groups,
such as young people and the Koori community.
Committee members recently confirmed that this forum has a
good track record of raising issues and seeing resolution of
these issues.
The Division looks forward to a year where our new structure
is implemented and where we can consolidate and even
further develop our high quality service delivery to our
community.
Mandy Pusmucans
Director Community Services
annual report
2005/2006
14

Residential Aged Care Services
PROFILE
Central Gippsland Health Service provides residential aged
care accommodation for residents at four aged care sites.
High level residential care for 80 residents is available at
Wilson Lodge at Sale and JHF McDonald Wing in Maffra.
Two not-for-profit facilities are under management agreement
to Central Gippsland Health Service. Stretton Park Hostel Inc.
and Laurina Lodge are facilities that provide low and high
care for a further 93 residents.
Fifteen independent Living Units are also situated at Stretton
Park (Maffra).
The Division of Aged Care Services is committed to a
continuous quality improvement program that continually
strives to enhance the quality of life for frail aged of our
community.
Maffra
A highlight early in the year was the completion of the
refurbished central courtyard. The funds provided by our
Ladies Auxiliary transformed the concrete area into a vibrant
area that has vistas from resident and patient rooms and is
enjoyed greatly. The Maffra community thanks the Ladies
Auxiliary for their ongoing support and fundraising
Some other major achievements are:
● Well For Life program funding to implement an improved
hydration plan for our residents
● Implementation of computer based documentation in Aged
Care “We Care“ system
● Many of our Division 2 nurses have extended their training
by completing the Medication Competency Course
● Staffing levels and recruitment to positions has been stable
and we have obtained new volunteer services for our
lifestyle activity program for residents.
● Dr Krishna Mandaleson has commenced visiting Maffra
and this is greatly enhancing our service and supporting
our general practitioners.
● Staff have attended many inhouse and external
educational opportunities and have been supported in
achieving new skills and knowledge
Wilson Lodge
In October 2005, the Aged Care Standards and
Accreditation Agency undertook a full accreditation audit.
Wilson Lodge achieved compliance in all 44 aged care
outcomes and successfully secured accreditation for three
years.
This was an excellent achievement by the staff and residents.
Achieving full accreditation demonstrates, and reassures
residents, families and the community, of the high standard of
care provided at Wilson Lodge.
Wilson Lodge has also benefited from the introduction of the
computer based documentation system “We Care”.
Pictured with Wilson Lodge’s certificate of accreditation are, from
left, Administrator Peter Craighead, Nurse Unit Manager Sue
Ingrouille and Director of Nursing, Midwifery and Aged Care,
Amanda Cameron.
Stretton Park Hostel Inc
Stretton Park has seen the completion of a number of
building projects this year. The six independent living units
known as Stretton Close have been completed and the
residents are busily making the units look like homes.
The activities room has seen an extension that provides better
facilities for the residents and their families, as well as
external community groups who use the room.
Stretton Park successfully gained full accreditation in all 44
aged care standards at the end of June. The staff and
residents are to be commended on their efforts.
Eager residents of the new units at Stretton Close had a sneak
preview of the units while they were being constructed. Pictured
inspecting the units just prior to completion are from left, Hazel
Owen, Nell Weatherly, Avon Grumley, Peg Blyth and Ormond
Bourke, who has since passed away.
Laurina Lodge Inc
Laurina Lodge opened its new 22 bed wing at the end of
March 2006. Gippsland MHR, The Honorable Peter
McGauran performed the official opening, with Gippsland
South MLA Peter Ryan and many other dignitaries involved in
the Heyfield area in attendance.
Laurina Lodge is well supported by the community of Heyfield
and this day was no exception with a fantastic turnout to see
the unveiling of the new wing, which has 15 high care, 5 low
care and 2 high care respite beds.
Laurina Lodge was also successful in the current round of
accreditation, achieving compliance in all 44 standards. This
was a remarkable effort by both staff and residents, as not
only had they opened the new wing but also gained a new
manager two weeks earlier.
15
annual report
2005/2006

Corporate Services
Profile
Corporate Services is responsible for the delivery of all the
non-clinical services that Central Gippsland Health Service
needs to perform in order to be an effective commercial
organisation.
The Corporate Services Division includes Finance, Human
Resources and Payroll, Environmental Services, Information
Technology, Food Services, Engineering, Supply and the Sale
Linen Service. The key areas and a summary of achievements
within the Division includes the following.
FINANCE
Finance oversees the financial performance of Central
Gippsland Health Service, Stretton Park and Heyfield Hospital.
It facilitates the budget process, provides management and
Board reports, ensures accounts are paid on a timely basis,
and that fees are raised and collected.
The key developments during the past year included:
● Addressing and completion of matters identified for
attention in the Due Diligence report released in 2005 to
ensure that financial controls are improved.
● Training and workshops for all Department Heads and
Directors in the use of PowerBudget Management
Information System.
● Improvements in the quality of Management and Board
reports, to enable more informed and effective decision
making.
● Complete overhaul of the Budget process to involve staff
from across the organisation.
● Development and implementation of tools to more
effectively manage cashflow.
HUMAN RESOURCES AND PAYROLL
Human Resources provide services for the staff at Central
Gippsland Health Service, Stretton Park and Heyfield Hospital.
These include payroll, salary packaging, management of
risks, recruitment, WorkCover and performance appraisals.
Key activities this year have included:
● Employment of a Safety Officer
● Review and overhaul of the Occupational, Health and
Safety Committee and the Safe Practice and Environment
Committee to ensure that key safety risks for staff and
patients are being more effectively addressed.
● Delivery of workshops by Directors to address the risk of
bullying and harassment.
● Review, development and re-release of all Emergency
Management procedures. Training has now been
completed by all staff over the last 12 months and
specialist training for all Wardens and Hospital Coordinators
was completed in December 2005.
● Development of a range of Key Performance Indicators to
improve our recruitment procedures.
● Enhancement and completion of the Performance Appraisal
process for a range of the non-clinical areas.
● Overhaul of the WorkCover process to ensure that staff
injuries are better identified, managed and actions are
being taken to mitigate the risk of re-injury.
SALE LINEN SERVICE
Sale Linen Service is a business unit of Central Gippsland
Health Service. The service supplies linen to health services,
aged care providers and hospitality clients in the Gippsland
region.
During the last 12 months the linen service has achieved its
goal of reducing labour and operating expenditure.
Revenues remained steady for 2005 / 2006 and new
markets are being explored with a view to achieving
moderate growth.
Emphasis has been on the development of key performance
indicators to measure the service’s performance against
quantifiable targets.
Linen rewash was identified as one measure of the service’s
performance that should be monitored and since that has
occurred the volume of rewash has reduced significantly.
Staff have actively participated in workplace safety initiatives
including manual handling training and there has also been
a focus on risk management.
SUPPLY
The Supply Department plays a vital role for all wards and
departments within Central Gippsland Health Service in
sourcing equipment and day to day supplies. It also provides
supplies for other health organisations across Gippsland.
The department has been effective in improving stock control
and reducing the levels of stock on hand and substantially
reduced the number of vehicles in the fleet.
Through an association with Health Purchasing Victoria and
the Gippsland Purchasing Alliance, the department has been
able to achieve better value for money.
The department has also taken steps to better manage the
accommodation used by Doctors and Visiting Specialists.
Corporate services provide a wide range of support services for
Central Gippsland Health Service, which has sites in Sale,
Heyfield, Maffra, Rosedale and Loch Sport.
ENGINEERING
The Engineering Department provides comprehensive
building, painting, plumbing, electrical, mechanical and
grounds support to the health service and during the year
responded to more than 4,500 work requests.
Salary and wage expenditure has been reduced and
operating expenditure managed more tightly than in previous
years.
annual report
2005/2006
16

Corporate Services
This year, as a part of capital works upgrade, Central
Gippsland Health Service purchased two chillers with the
assistance of a grant from the Department of Human Services.
The new chillers are quieter and more efficient than the plant
they replace and will ensure that the environment for patients
and staff is maintained at comfortable levels.
A security review was undertaken which showed that while
Central Gippsland Health Service’s security system was
adequate, it could be enhanced to take advantage of newer
technologies.
The Engineering Department is also looking at land utilization
strategies at its sites and is developing a long term plan for
land usage in consultation with the Wellington Shire Council.
ENVIRONMENTAL SERVICES
Environmental Services provides support services to all
departments throughout the Health Service, including
cleaning, security, co-ordinating room setups, shredding
confidential documents, disbursement of clean linen, removal
of soiled linen, and waste management.
Each year an external audit is undertaken to provide an
independent evaluation of the cleanliness of service. This
year, as with previous years, the health service passed all of
its audited areas.
A new environmental service cleaning manual was also
developed and implemented to reflect changes to the
cleaning standards for Victorian Public Hospitals.
INFORMATION TECHNOLOGY
The Information Technology Department plays an integral role
across all of the Central Gippsland Health Service sites.
There have been a number of significant initiatives this year,
including the following:
● Implementation of new Server infrastructure
● Consolidation of desktop printers to multi-function units
● Implementation of an Intranet to inform staff of current and
upcoming events
● Development of a website which can be used to provide
the community with information on the Health Service.
Planning has taken place to support the rollout of a computer
replacement plan and perform an organisational network
upgrade.
There will also be a significant period of change as Central
Gippsland Health Service, along with other major Health
Services in Victoria, upgrades key information systems. These
systems will include the Patient Management, Finance and
Payroll systems.
FOOD SERVICES
Food Services provide meals for a variety of internal and
external customers, including patients at the Sale and Maffra
sites, Wilson Lodge, Stretton Park in Maffra, Meals on Wheels,
the Sale Cafeteria, Community Services’ Planned Activity
Groups, Sale Police Complex and internal and external
functions.
During 2005/06, Food Services produced 210,474 meals.
An external audit addressing food safety for the entire
organization was completed in April and the results were a
credit to the staff.
Food Services commenced a review of its menu structure in
mid to late 2005, concentrating on quality, cost effectiveness
and the active involvement of recipients in choice. After
many months of consultation, implementation of a new 28
day cyclic menu took place in July 2006 and although it is
early days the new menu structure has been warmly received.
LIBRARY
The Clayton Willington Library has continued to provide a
comprehensive and up to date information service to all
Central Gippsland Health Service and Monash University staff
and students.
The 2005/2006 year saw the consolidation of access for all
departments and sites to both electronic and print collections
in the Library, via the utilisation of the web-based catalogue
and the intranet.
An ongoing policy of maintaining a broad spectrum of
subjects in medicine, nursing, administration and allied health
has continued across all collections. Government legislation
reports and Australian standards were reviewed and are
being updated. Access to up to date, evidence-based
medicine literature and nursing education material remained
a strong focus. This was supported by a high level of access
to national and international medical databases.
Informal and formal training sessions together with continued
promotion of services has ensured that staff maintained an
awareness of the information relevant to their areas.
MEDICAL RECORDS
Key roles of the Medical Records Department include the
following:
● Documentation of the presenting illness, treatment initiated
or undertaken, outcome and follow up.
● Support to the clinical areas to meet high quality
documentation standards.
● Coding of each patient episode to reflect the medical and
surgical work of the health service in a format that the
Department of Human Services uses to calculate funding.
● Provision of information required by external agencies
including the Cancer Council of Victoria, Births, Deaths and
Marriages Registry and the Infectious Diseases Unit of DHS.
● Ensuring compliance with Privacy Laws and Freedom of
Information requirements.
In 2005/06 Medical Records processed and coded 11,472
discharges, prepared and filed more than 12,800 emergency
attendances and responded to 68 Freedom of Information
Requests.
It also supported ongoing quality review programs such as
the infection control audit, surgical unit audits and clinical
documentation audits and participated in a number of
documentation reviews and forms development initiatives.
Michael Clamp
Director Corporate Services
17
annual report
2005/2006

Quality of Care Report
The following section reports on the various Quality of Care
activities undertaken across the Central Gippsland Health
Service. These range from monitoring clinical activity through
to incident reporting and credentialing of staff.
Monitoring Clinical Activity
Central Gippsland Health Service established a governance
framework to support open discussion of clinical care and to
ensure that the Board of Management received information
about the services provided.
The Quality and Risk Working Group is the ‘clearing house’
dealing with all issues to do with patient/client safety and
quality of service, including complaints and adverse events.
The group co-ordinates necessary changes to practice where
a risk to patient safety is identified.
There are a number of approaches to assessing performance
and evaluating care that range from review by external
organisations to monitoring individual patient care.
Australian Council on Healthcare Standards
Accreditation
Central Gippsland Health Service is an accredited
organisation and will next be fully surveyed in August 2007.
Victorian Patient Satisfaction Monitor
The Victorian Patient Satisfaction Monitor compares Central
Gippsland Health Service with itself and other larger rural
hospitals. The results are based on a statistically significant
sample of patients discharged.
The results show an improvement in most areas and a higher
than average rating in all areas.
% Score
100
80
60
40
20
0
Victorian Patient Satisfaction Monitor
Overall Care
Access and
admission
Current Score %
Previous Score %
Group Average
General Patient
Information
Treatment and
Related Information
Complaints
Management Index
Limited Adverse Occurrence Screening
Physical
Environment Index
Discharge and
Follow Up
DEFINITIONS
● MET calls – Medical Emergency Teams have been
established in hospitals to bring additional expertise to the
patient when any health care professional is concerned.
● Code Blue is called when a patient has a cardiac arrest or
stops breathing and does not have a “Not for
Resuscitation” or “End of Life” directive in place.
● Unplanned Return to the Operating Theatre within 7 days,
reflects a possible surgical complication.
● Most deaths that occur at Central Gippsland Health Service
in both acute and aged care facilities are expected. A
screening process identifies those cases where a more
formal review of care is required. There are specific
requirements to report some deaths to the Coroner when
the cause is not known or where the patient has had a
recent fall, has died following an anaesthetic or where the
circumstances of their illness or injury may be suspicious.
● Length of Stay in Hospital Greater than 21 days –
Prolonged length of stay may identify aspects of care or
organisation of care that could be improved.
Limited Adverse Occurrence Screening reviews specific
occurrences chosen by the organisation as unexpected
occurrences.
Between July 2005 and June 2006, 266 occurrences were
screened. Some examples of changes to practice as a result
include:
● updated resuscitation plans at each new admission to
ensure patients’ wishes are met
● additional education for staff to ensure that Medical
Emergency Team (MET) calls are timely and appropriate
and a review of the guidelines for identifying and treating
life threatening allergies
● improved documentation in aged care records.
Credentialling and Privileging
The regular review of medical and nursing staff education
and training ensures that professionals are appropriately
qualified to undertake their roles.
Some credentials, such as ongoing education requirements,
are reviewed every three years but others, such as registration
with the medical practitioners and the nurses board, are
reviewed annually.
Privileging defines what a doctor with certain qualifications
can do in a particular hospital and depends on other staff
and facilities. For example, a doctor may be trained to
perform brain surgery but that would not be appropriate at
Central Gippsland Health Service.
Some doctors work at more than one hospital in Gippsland
and the credentialling process takes place at each one. This
is time consuming and wasteful of resources. Over the next 12
months a regional process will be developed to reduce
duplication although each individual health service will
continue to deal with privileging, as each site is unique.
Ethics Committee
Ethics Committees deal in large part with research projects,
particularly in protecting the rights of participants. Ethics
Committees may consider broader ethical issues such as end
of life decision making.
Ethics Committees require a certain membership to meet the
requirements of the National Health and Medical Research
Council and are labour intensive to administer.
annual report
2005/2006
18

The decision was made this year to move to a regional ethics
committee with Central Gippsland Health Service
membership.
This has so far worked very well and will support an
increasing role for the Ethics Committee as health services
grow and research and training develop in Gippsland.
Incident Reporting
An incident is an occurrence outside usual procedure. These
usually do not result in any harm but may indicate risk of
harm. Where harm occurs this is an adverse occurrence.
Central Gippsland Health Service encourages all staff to
report incidents. These are collated and analysed to establish
whether they represent risks to staff or patients and, if so, what
changes need to be made to reduce or eliminate the
problem.
Our committee this year included:
● Ian Pinkus - Senior Vice President
● Barb Pinkus - Junior Vice President
● Vic Forrest - Secretary
● Joan Hood - Assistant Secretary
● Athol Jones - Treasurer
● Trusse Grimsted - Assistant Treasurer
● Carmel MacManus - Publicity Officer
I would like to extend a really big thank you to the businesses
of Sale and the public for their support for the hospital.
Elva Doolan-Jones
President
Donations
Central Gippsland Health Service gratefully acknowledges
the support of individuals, families and organisations who
gave donations of cash or equipment during the past year.
Because of issues which may arise due to the Privacy Act,
we have chosen not to list personal names in this report.
Total contributions received 2005/2006:
Appeal Donations $147,183.64
Other Donations $52,257.41
Gippsland Base Hospital
Auxiliary
On behalf of the Gippsland Base Hospital Auxiliary I have
much pleasure in presenting this 2005 - 2006 annual report.
We had another successful year in fundraising, with donations
to Central Gippsland Health Service totaling $15,000.
These funds were made available to the Women’s and
Children’s Unit, Critical Care Unit and Medical Unit for the
purchase of equipment.
During March one of our very hard working committee
members Trusse Grimsted resigned due to family
commitments.
Gift wrapping continues to be a major fund raiser. In May we
had Mother’s Day wrapping and raised $1,170, Christmas
wrapping raised $5,171 and September 2005 Father’s Day
$589.
The Ritchies Community Chest donation in from September to
June was an outstanding $6,514.71.
A big thank you to our committee and all our extra volunteers
who assist with our wrapping and selling raffle tickets.
I would also like to thank all the staff for their support with
our raffles held in the health service.
A number of
support groups
continued to
provide excellent
support to the
health service. The
Gippsland Base
Hospital Auxiliary
donated numerous
items throughout
the year, including
replacement
bassinet mattresses
for the Women and
Children’s Unit. Pictured testing out the mattresses is baby Kayla Stewart
with mum Fiona, watched by Auxiliary members, from left, Brenda
Wheeler, Ann Murray and Iris Mitchell.
Maffra Hospital Ladies Auxiliary
The Maffra Hospital Ladies Auxiliary conducted a number of
fundraising events for the year.
Some of the key events and the amounts raised included:
● Caravan (street) stalls $587.00
● Oaks Day Luncheon (incl.sweep, raffles) $1,115.50
● Christmas hamper $523.50
● Easter hamper $542.70
● Caravan(street stall) $284.90
● Maffra open day - courtyard opening
and dedication) $260.00
● Winter Raffle $357.75
The total raised was $3671.35
The money raised this year, along with previous monies
enabled the purchase of equipment, including the following:
● Pamper (massage) Room ($596.70)
● Quiet Room ($610.50)
● Mini-Bus Hire for outings ($490.00)
● three mobile shower chairs ($2,882.00)
● two electrically-operated mattresses ($2,630.00).
The total expenditure for the year was $7209.20.
19
annual report
2005/2006

Loch Sport Community Health
Centre Auxiliary
The Auxiliary activities followed the normal pattern of selling
raffle tickets at the Lodge on the foreshore and at the bakery
opposite the Health Centre.
We draw the winners of these raffles at each of our four
market days at the Loch Sport Public Hall.
In November 2005 our AGM was held and the following
were elected:
● Val Griffiths - President
● Glenda Morrell - Treasurer
● Lyn Schapendonk - Secretary
Val accepted the position requesting help from all members
of the Auxiliary, so that they would familiarise themselves with
the running of the Auxiliary.
Our Annual Christmas Luncheon was held in December at
the RSL, financed by members and visitors. Life Memberships
were announced and the three recipients, Val Griffiths, Ann
Graham and Glenda Morrell, were presented with
Certificates.
Our raffles, which are run throughout the year, continue to
prove very successful thanks to the generous support of the
residents of Loch Sport, and the many visitors to the town.
In January, Bill Redmond rode throughout Loch Sport and we
raised the sum of $1,500. Our thanks go to Bill for his
wonderful riding… maybe next time some of the Auxiliary will
attempt to ride with him!
A bookcase was installed in the nurses’ room and has been
put to very good use. A screen door was also fitted to the
front of the building allowing a cool breeze to flow through
to the Reception area.
It was decided that we would use the $1,500 obtained
through donations from the bike ride to assist in the
purchasing of a Vaccine Fridge for the Health Centre. This
was delivered in June and staff were most appreciative of this
new piece of equipment.
Part of the Health Centre was repainted during the year and
the finished result is both pleasing to the eye and has
received very positive feedback from visitors and staff.
We look forward to another year of fundraising and
supplying the Health Centre with replacement and new
equipment as
required.
Val Griffiths
President
Heartbeat
donation ..
Pictured from left
are Wellington
Heartbeat
members Ray
Missen and Phyl
Dooley, Critical Care Unit nurse manager Jennifer Dennett and
Wellington Heartbeat assistant secretary Margaret Gibbons with
some of the equipment donated.
$5,200 donation mattress system that eases pressure points for
bed ridden patients and a body warming system for those with
hypothermia.
Social Club Annual Report
The most important task in this annual report is to thank the
office bearers and the committee for all the hard work
undertaken this year.
All the excursions and happy hours seem to happen with a
minimum of fuss and drama, but of course this image does
not eventuate without a lot of work and organisation behind
the scenes and for that commitment we should be very
grateful.
The Social Club committee meets in the staff dining room on
the first Thursday of the month. All members are welcome to
attend and contribute ideas for new things to do as a club.
This year we have held various happy hours at the Sale
Community Sports Club (Sporties) and have been very happy
with the outcome. A few of the themes used as an excuse to
hold a happy hour this year have included Christmas,
Valentine’s Day, Easter, Winter and, of course our AFL Grand
Final happy hour held each year on the last Friday in
September.
The cinema tickets are available to members (from the
cashier) - $9.00 adult and $8.00 each for a child under 14
years.
Our committee organised a lovely afternoon at the
Greenwattle Racecourse for Sale Cup Day. We enjoyed
watching the races from the marquee with delicious food,
sparkling drinks and great company. This will become a
regular feature on the Social Club calendar.
We were impressed with the show, Dirty Dancing, held at the
Princess Theatre in Melbourne. The tried and true formula of
travel by bus, arrive in time for lunch and/or shopping and
then enjoy the show, free from the worries of parking, has
proved to be very popular. Our transport is always waiting
for us outside the theatre doors.
The Lion King afforded us a great bus/show excursion in
November last year. Our ticket shopper bought excellent
seats and everyone who attended thought that it was a
stunning event. The Social Club is usually able to purchase
tickets at a discount and we subsidise the cost of the bus for
our members.
We welcomed some new shopper discounts recently,
including Donovans Meats, Avis Rent a Car and the Sale
Floral Boutique. Our monthly lucky member draw winners
always win vouchers from one of the businesses who offer
discounts. Their support is greatly appreciated.
We said farewell to Donna Rawson in May. Donna was our
treasurer for many years and she kept us on the straight and
narrow with the books. She was also one of the main
organisers and decorating guru for when we held dances
and cabarets in large venues around Sale. Kirstie Hair has
taken over the reins as treasurer this year and is looking to be
re elected to the position again at AGM time.
The Social Club has been very busy again this year. Sincere
thanks once again to the committees and sub-committees
who just get in and do what has to be done. The support for
the club and encouragement for each other is heartwarming.
We look forward to continuing success in 2007.
Merrilyne Centra
President
annual report
2005/2006
20

Executive Staff as at 30 June 2006
Administrator
Director Medical Services
Director of Nursing,
Midwifery and Aged Care
Director Community
Services
Director Corporate
Services
Senior Staff
SALE CAMPUS
Central Gippsland Health Service
Director Critical Care
and Emergency Services
General Manager Support Services
Food Services Manager
Health Information Manager
Infrastructure Group Manager
Librarian
Manager Quality Improvement
Supply Manager
Deputy Director of Nursing
Hospital Co-ordinators:
Hospital in the Home Nurse Manager
Professional Development Manager
Peter Craighead, SRN, SCM,
B.Nursing, Grad Dip Bus (Health)
Brian Cole, MBBS, FRACGP,
FRACMA.
Amanda Cameron, RN PN,
BHealthSci(Nursing),
GradDipNursing (Critical Care)
Mandy Pusmucans RN, Div.1,
Grad.Dip.Bus., Mgmt., Grad.Dip.
Rural Health
Michael Clamp, B.Business, ACA
Howard Connor, MB.,
BS., FRACP.
Rohan Fitzgerald from
September 2005
David Askew
Heather Rowell
Bruno Kappenberger
(until September 2005)
Ann Andrew
(until August 2005)
Helen Ried
(from September 2005)
Sally Stiberc
Aldo Santo
Anne Woollard
Wendy Harwood
Neville Nicholas
Pam Griffiths
Therese Smyth
Judy Niziolek
Robyn Cotterill
(until April 2006)
Di Fahy/Karen
Llewellyn
MEDICAL SERVICES
Nursing Unit Manager - Critical Care,
Dialysis, Cardiology, Oncology
Nursing Unit Manager- Medical
Nursing Unit Manager - Emergency
CLINICAL SUPPORT SERVICES
Infection Control Officers
Wound/Stomal Therapy
WILSON LODGE NURSING HOME
Nursing Unit Manager
COMMUNITY SERVICES
Community Services Managers
Home Nursing
Allied Health
Community Health and Partnerships
Home Support and Service
Co-ordination
Manager Administration
Manager District Nursing
(acting to July 2006)
BUSINESS UNITS
Cardiology
Linen Services
Medical Imaging
Practice Manager
MAFFRA CAMPUS
Maffra District Hospital
Nurse Manager
Nursing Unit Manager
Jenny Dennett
Jennie Wright
Barb Harper
Louella Rintoul &
Cathy Mowat
Anne Payne
Sue Ingrouille
Marie-Louise Tucker
Maureen Wilson
Sue Roberts
Belinda Greening
Julie McQuillen
Carol Barker &
Bernadette Lord
Kathie Smith &
Wendy Peters
Michael Murray
(until October 2005)
Michael Coleman
Sonya Hanratty
Julie Kellow
(until March 2006)
Robyn Cotterill
(from April 2006)
UNDER MANAGEMENT AGREEMENT HEYFIELD
Heyfield Hospital (including Laurina Lodge Hostel)
Health Service Manager
Nursing Unit Manager
Louise Vuillermin
(until May 2006)
Liz Bell
(from May 2006)
Jo Ollier
(from August 2005)
SURGICAL SERVICES
Nursing Unit Manager - Surgical
Nursing Unit Manager -
Perioperative Services
OBSTETRIC/PAEDIATRIC UNIT
Nursing Unit Manager -
Obstetrics and Paediatrics
Alice Wissmer
(until March 2006)
Patricia Madeley
Shirley Greatorex
MAFFRA
STRETTON PARK HOSTEL AND INDEPENDENT LIVING UNITS
Care Manager
Jane Delahunty
21
annual report
2005/2006

Visiting Medical Officers 2006
Consultant Anaesthetists
Dr R Rajaratnam, MB.BS, DA, RCP&S, FFARACS
Dr G Rooke, MB (Hons), FANZCA
GP Anaesthetists
Dr N Atherstone, MB, ChB, DRACOG, DCH, FRACGP
Dr D Langford, MB.BS, DRACOG,DRANZCOG
Dr M Langford, MB.BS
Dr C O’Kane, MB.BS, DRACOG
Dermatologists
Dr C Baker, MB.BS, FACD
Dr D Gin, MB.BS, FACD
Dr J Horton, BSc ,MBBS, MRCP, FACD
Dr A Mar, MB.BS, FACD
Dr R L Nixon, BSc (Hons), MBBS, FACD, FRACP (FOM)
Dr D Orchard, MB.BS, FACD
General Practitioners
Dr Y Ahmad, MB.BS
Dr M T Baker, MB.BS, FRACGP, DRACOG
Dr JM Bergin, MB.BS
Dr A Burk, MB.BS, B Med Sci, Dip Obs RACOG, FRACGP, FACRRM
Dr. J Bvirakare, MB, ChB, MPH
Dr P Dandy, MB.BS
Dr LJ Derrick, MB.BS
Dr RJ Hides, MB.BS, DRANZCOG
Dr CJ Jarman, MB.BS, FRACGP, Assoc Dip Bus
Dr B Johnston, MB.BS
Dr D Langford, MB.BS, DRACOG, DRANZCOG
Dr M Langford, MB.BS
Dr CA Martin, MB.BS, FRACGP, DRACOG
Dr RH Melville, MB.BS, DRACOG
Dr A Miller, MB.BS, MRCP, FAMAC
Dr R Mohmood, MD Medicine
Dr DA Monash, B Med Sci , MB.BS
Dr IC Nicolson, MB.BS
Dr C O’Kane, MB.BS, DRANZCOG
Dr AC Richards, B Med Sci, MB.BS
Dr H Stanley, MB.BS Flin
Dr P Stevens, MB.BS, FACRRM
Dr F Sundermann, MB.BS
Dr LA Waters, MB.BS, DRACOG
Dr AJ Watt, MB.BS, DA
Dr SJ Williams, MB.BS
Dr AJ Wright, MB.BS
Dr M Zheng, MB.BS, FRACGP
Nephrologist
Dr P Lee, MB.BS, FRACP
Nuclear Medicine Physician
Dr Y Jenkin, MB.BS, FRACP
Obstetricians & Gynaecologists
Dr R Guirguis, MB.BCH (Hon), MRCOG, CCST, MRANCOG,
FRANCOG
Dr RJ McKimm, MB.BS, MRCOG, FRACOG, FRANZCOG
Dr Anu Sarkar, MB.BS, Dip Obs RCP (Ireland) MRCOG
(London)
Dr JM Talbot, MB.BS, FRACOG, FRANZOG
Ophthalmologist
Mr KP Gullifer, MB.BS, FRACO, FRACS
Oral Maxillofacial Surgery
Dr S R Hookey, BD Sc, MD Sc, FRACDS
Orthopaedic Surgeons
Mr P Rehfisch, MB.BS, FRACS
Otorhinolaryngologists
Mr M Campbell, MB.BS, FRACS
Mr PJ Guiney, MB.BS, Dip Anat, FRACS
Paediatricians
Dr P W Goss, MB.BS, FRACP
Dr J McCubbin, MB.BS, FRACP
Paediatric Surgeons
Mr C Kimber, MB.BS, FRACS
Mr N McMullin, MB.BS, FRACS
Pathologists
Dr B Cairns, MB.BS, , FRCPA , RCPA
Dr B Morrison, MB Bch, BAO (Ireland) BDS , FRACP A
Dr S Rambaldo, B Med Sci (Hons), MB.BS, MAACB, MASM,
MRACMA, FRCPA
Dr NR Sonenberg, MB.BS, FRCPA
Dr J Scarlett, MB.BS, FRACP, FRCPA, MD
Dr PJ Van der Hoeven, MD, FRCPC, FRCPA
Physicians
Dr H Connor, MB.BS, FRACP
Dr K Mandaleson, MB.BS, MRCP, FRCP
Dr A Safe, MB, Ch B, MD, FRCP
Dr RW Ziffer, MB.BS, MRACP , FRACP
Radiologists
Dr R Bain, MB.BS, FRANZCR
Dr D Black, MB.BS, FRACR
Dr R Brownlee, MB.BS, FRACR
Dr J Campbell, MB ChB (Edin), DDR , FRANZCR
Dr T Kulatunge, MB.BS (Colombo), FRANZCR
Dr G Savarkudele, MB.BS (India), DMRD , Dip N B
Dr K Stribley, MB.BS, FRACR
Dr A Zammit, MD (Malta), DMRD (Edin), FRCR
Surgeons
Mr A Aitken, BSc (Hons), PHd, MB.BS, EMST, USMLE, FRACS
Mr S Banting, MB.BS, FRACS
Mr CJ Fielding, MB.BS, DRCOG, FRCS (Ed )
Mr HJ Huygens, MB.BS, FRACS, FRCS
Mr I McN Miller, MB.BS, MRCS, LRCP, DCH, FRCS, FRACS
Mr Neil Roberts, MB.BS, FRACS
Mr A Sarkar, MB.BS, MS, FRCS
Urologist
Mr DJ MacDonald, MB.BS, FRCS, FRACS
Assoc Prof Mark Frydenberg, MB.BS, FRACS
Visiting Dental Staff
Dr JJ Gibson, BD Sc, LDS
Dr R Malouf, BD Sc, LDS
Dr I J Ronchi, B Sc, BD Sc
Dr O Husodo, B DSc
Dr J Roberts, B DSc, MD Sc, FRACDS
annual report
2005/2006
22

Statutory Compliance
Central Gippsland Health Service is a public hospital listed in
Schedule 1 to the Health Services Act 1988 (the Act). Central
Gippsland Health Service is an incorporated body under and is
regulated by the Act. The Victorian Minister for Health during
2005/2006 was The Hon. Bronwyn Pike.
Reporting Requirements
The information requirements listed in the Financial Management
Act 1994 (the Act) the Standing directions of the Minister for
Finance under the Act (Section 4 Financial Management
Reporting) and Financial Reporting Directions has been prepared
and are available to the relevant Minister, Members of
Parliament and the public on request.
Objectives, functions, powers and duties of Central
Gippsland Health Service
The principal objective of Central Gippsland Health Service is to
provide public hospital services in accordance with the Australian
Health Care Agreement (Medicare) principles. In addition to
these, Central Gippsland Health Service has set other objectives
which encompass the shared vision, core values and strategic
directions of the organisation.
Consultancies engaged during 2005/2006
A number of consultants were contracted to work for Central
Gippsland Health Service in 2005/2006. As required by the
Victorian Industry Participation Policy Act 2003, a summary of the
extent of contractual costs for consultants is outlined.
2005/2006 2004/2005
Number of consultants
used to a value greater
than $100,000 - 1
Total cost of consultants
used to a value greater
than $100,000 - $126,000
Number of consultants
used to a value less
than $100,000 3 10
Total cost of consultants
used to a value less
than $100,000 $32,770 $100,142
During 2005/2006 there have been 3 contracts commenced or
completed under the Victorian Industry Participation Policy Act
2003
Competitive Neutrality
Central Gippsland Health Service supports the Victorian
Government’s policy statements as outlined in Competitive
Neutrality; a statement of Victorian Government policy.
Competitive Neutrality is seen as a complementary mechanism to
the ongoing quest to increase operating efficiencies by way of
benchmarking and embracing better work practices.
Building Act 1993 Compliance
Central Gippsland Health Service complies with the
Standards for Publicly Owned Buildings (the guideline).
Central Gippsland Health Service controls nine properties, six
residential care and three non-residential care.
Non Residential
All new work and redevelopment of existing properties is
carried out to confirm to current building regulations (1994)
and the provisions of the Building Act 1993. The local
authority or a building surveyor issues either a Certificate of
Final Inspection or an Occupancy Permit for all new works or
upgrades to existing facilities.
As at June 30, 2006, fire risk audits had been completed for
all Central Gippsland Health Service occupied residential
care facilities.
Central Gippsland Health Service installs and maintains fire
safety equipment in accordance with building regulations
and regularly conducts audits. The upgrading of fire
prevention equipment in buildings is also undertaken as part
of any general upgrade of properties where necessary and is
identified in maintenance inspections.
Central Gippsland Health Service requires building
practitioners engaged on building works to be registered and
to maintain registration throughout the course of the building
works.
Freedom of Information
A total of 62 requests under the Freedom of Information Act
were processed during the 2005/2006 financial year.
Requests for documents in the possession of Central
Gippsland Health Service are directed to the Freedom of
Information Manager, and all requests are processed in
accordance with the Freedom of Information Act 1982.
A fee is levied for this service based on the time involved in
retrieving and copying the requested documents.
Central Gippsland Health Service nominated officers under
the Freedom of Information Act are:
Principal Officer
Peter Craighead, Administrator
Residential
Loch Sport CHC 1
Rosedale CHC 1
Community Care 1
Heyfield Hospital 1
Laurina Lodge 1
Maffra Hospital 1
Stretton Park 1
Sale Acute 1
Wilson Lodge 1
Medical Principal Officer:
Dr Brian Cole, Director Medical Services
Freedom of Information Manager
Ms Heather Rowell, (Health Information Administrator)
23
annual report
2005/2006

Statutory Compliance
Privacy
Central Gippsland Health Service has embraced the privacy
legislation and is committed to ensuring that consumer and staff
rights to privacy are upheld at all times. The Privacy Standing
Committee has been formed with representation from across all
divisions. The role of the committee has been to ensure that the
organisation has the proper processes and policies in place to
enable the organisation to be compliant with privacy legislation,
and to provide information to staff and consumers regarding
privacy rights and responsibilities.
All Central Gippsland Health Service consumers have the right to
have personal information stored in a secure location, and to be
assured that only that information that is necessary to ensure high
quality health care is to be collected. Central Gippsland Health
Service has implemented a privacy complaints procedure that
can be accessed by both staff and consumers that both monitors
and enforces privacy issues.
There is an Information Standards Committee which oversees
privacy matters.
Whistleblowers
The Whistleblowers Protection Act (Vic) came into effect on 1
January 2002. Central Gippsland Health Service has developed
both a Policy and Procedure to encourage and facilitate the
making of disclosures, where these are supported by reasonable
grounds, related to alleged improper or corrupt conduct in the
management or conduct of the organisation.
Any staff person or member of the public who has reasonable
grounds to believe that improper or corrupt conduct has
occurred, is occurring or is about to occur in the management or
conduct of the organisation is encouraged to disclose this to
senior staff. The number and nature of disclosures shall be
reported in this and subsequent annual reports.
● No disclosures were made to Central Gippsland Health
Service during the year
● No disclosures were referred by Central Gippsland Health
Service Services to the Ombudsman for determination or
investigation.
● No disclosures were referred to Central Gippsland Health
Service Services by the Ombudsman, or taken over by the
Ombudsman.
● No requests were made under Section 74 to the Ombudsman
to investigate.
● No matters were declined for investigation.
● No recommendations were made of the Ombudsman under
the Act that relate to Central Gippsland Health Service
Services.
The Whistleblower Co-ordinator is Peter Craighead, Administrator.
annual report
2005/2006
24

Report of Operations
SUMMARY OF FINANCIAL RESULTS
2005/06 2004/05 2003/04 2002/03 2001/02
Total Expenses 54,320 54,245 54,209 52,504 46,741
Total Revenue 55,752 52,503 53,820 50,305 47,445
Operating Surplus/(Deficit) 1,432 (1,742) (389) (2,199) 704
Accumulated Surplus (Deficit) (4,473) (6,175) (4,433) (3,778) (1,509)
Total Assets 63,274 51,684 53,977 51,000 37,328
Total Liabilities 12,107 13,058 15,609 15,276 11,787
Net Assets 51,167 38,626 38,368 35,724 25,541
Total Equity 51,167 38,626 38,368 35,724 25,541
Summary of Operational and Budgetary Objectives
During 2005/06 financial year, the Service has achieved targets established in the Health Service Agreement. Throughput targets for
Acute Service activity were exceeded with inpatient Aged Care bed occupancy in rehabilitation and geriatric evaluation and management
beds were under target.
The service recorded a net surplus from continuing operations before capital & specific items of $ 1.5 million (2004/05 $0.8 million
surplus). After taking into account capital & specific items the net result was a surplus of $1.4 million (2004/05 $1.7 million loss)
Summary of factors that have affected the Operations for the Year
The results of the service during the reporting period have been affected by the following factors :
- Exceeding our WIES targets without being compensated effectively.
- Forgiveness of a loan with DHS worth $1.9 million.
- Strong management of expenditure.
- Valuation increase of land and buildings.
Events Subsequent to Balance Date
At the date of this report, management is not aware of any events that have occurred subsequent to balance date that may have a
material impact on the results of the next reporting period.
Revenue Indicators
Average Collection
Days
2005/06 2004/05
Private Inpatients 46 47
TAC Inpatients - -
Victorian Workcover Inpatients 91 54
Other Compensable Inpatients 58 26
Debtors Outstanding as at 30 June 2006
Under
30 Days
$’000
Private Inpatients 79 18 5 8 110 65
TAC Inpatients - - - - - -
Victorian Workcover Inpatients 4 - - 3 7 14
Other Compensable Inpatients 8 - - 2 10 9
Total 91 18 5 13 127 88
30-60
Days
$’000
61-90
Days
$’000
Over 90
Days
‘000
Total
30/06/06
$’000
Total
30/06/05
$’000
25
annual report
2005/2006

Report of Operations
KEY PERFORMANCE INDICATORS
Service Level
Central Gippsland Health Service provides services throughout the Wellington Shire. The population of the total area is
approximately 40,000
Activity Data
Admitted Patient Acute Sub Acute Total
Separations
Same Day 7,388 10 7,398
Multi Day 3,922 152 4,074
Total Separations 11,310 162 11,472
Emergency 3,493 69 3,562
Elective 6,494 11 6,505
Other (inc maternity, newborn &statistical) 1,323 82 1,405
Total Separations 11,310 162 11,472
Public Separations 9,848 142 9,990
Total WIES 7,370 - -
Total Bed Days 28,980 1,685 30,665
Non Admitted Patient Acute Other Total
Emergency Medicine Attendances 12,681 - 12,681
Outpatient Services - Occ. of Service 48,977 - 48,977
Other Services - Occ. Of Service 1,527 33,141 34,668
Total Occasions of Service 63,185 33,141 96,326
Workforce Data
EFT
30/06/2006
EFT
30/06/2005
1. Nursing 224 217
2. Administration & Clerical 81 89
3. Medical Support 46 67
4. Health & Allied 150 140
5. Hospital Medical Officer 17 12
6. Medical Officers 13 1
Total EFT 531 526
annual report
2005/2006
26

Notes
27
annual report
2005/2006

Central Gippsland Health Service
OPERATING STATEMENT
FOR THE YEAR ENDED 30 JUNE 2006
Note Total Total
2006 2005
$’000 $’000
Revenue from Operating Activities 2 52,810 51,305
Revenue from Non operating Activities 2 267 164
Employee Benefits 2b (34,987) (35,101)
Non Salary Labour Costs 2b (2,390) (1,830)
Supplies and Consumables 2b (7,125) (7,061)
Other Expenses From Continuing Operations 2b (7,077) (6,651)
Finance Costs 4 (34) (63)
Net Result From Continuing Operations Before Capital
& Specific Items 1,464 763
Capital Purpose Income 2 750 495
Specific Income 2g 1,900 -
Depreciation and Amortisation 3 (2,707) (3,000)
Assets Provided Free of Charge 2e 25 -
NET RESULT FROM CONTINUING OPERATIONS 1,432 (1,742)
NET RESULT FOR THE YEAR 1,432 (1,742)
This statement should be read in conjunction with the accompanying notes.
5

Central Gippsland Health Service
BALANCE SHEET
AS AT 30 JUNE 2006
Note Total Total
2006 2005
$’000 $’000
ASSETS
Current Assets
Cash and Cash Equivalents 5 2,646 295
Receivables 6 1,073 1,006
Other Financial Assets 7 205 177
Inventories 8 404 419
Prepayments 102 88
Total Current Assets 4,430 1,985
Non-Current Assets
Receivables 6 1,441 1,650
Property, Plant & Equipment 9 57,403 48,049
Total Non-Current Assets 58,844 49,699
TOTAL ASSETS 63,274 51,684
LIABILITIES
Current Liabilities
Payables 10 2,624 2,081
Interest Bearing Liabilities 11 158 187
Employee Provisions 12 7,678 7,128
Other Liabilities 13 205 177
Total Current Liabilities 10,665 9,573
Non-Current Liabilities
Interest Bearing Liabilities 11 228 386
Employee Provisions 12 1,214 1,199
Other Liabilities 13 - 1,900
Total Non-Current Liabilities 1,442 3,485
TOTAL LIABILITIES 12,107 13,058
NET ASSETS 51,167 38,626
EQUITY
Asset Revaluation Reserve 14a 21,862 10,753
Restricted Specific Purpose Reserve 14a 266 266
Contributed Capital 14b 33,782 33,782
Accumulated Deficits 14c (4,743) (6,175)
TOTAL EQUITY 14d 51,167 38,626
This statement should be read in conjunction with the accompanying notes.
6

Central Gippsland Health Service
STATEMENT OF RECOGNISED INCOME AND EXPENSE
FOR THE YEAR ENDED 30 JUNE 2006
Note Total Total
2006 2005
$’000 $’000
Gain on Asset Revaluation 14(a) 11,109 -
NET INCOME RECOGNISED DIRECTLY IN EQUITY 11,109 -
Net result for the year 1,432 (1,742)
TOTAL RECOGNISED INCOME AND EXPENSE FOR THE YEAR 12,541 (1,742)
This statement should be read in conjunction with the accompanying notes.
7

Central Gippsland Health Service
CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 JUNE 2006
Note 2006 2005
$’000 $’000
CASH FLOWS FROM OPERATING ACTIVITIES
Operating Grants from Government 41,655 40,045
Patient and Resident Fees Received 2,123 2,038
Private Practice Fees Received 4,570 3,670
Donations and Bequests Received 227 543
GST Received from/ (paid to) ATO (18) 61
Other Receipts 4,746 5,362
Employee Benefits Paid (34,421) (35,451)
Fee for Service Medical Officers (2,390) (1,830)
Payments for Supplies and Consumables (6,895) (5,783)
Other Payments (6,760) (8,037)
Cash Generated from Operations 2,837 618
Capital Grants from Government 661 386
Capital Donations and Bequests Received 23 40
NET CASH FLOWS FROM OPERATING ACTIVITIES 15 3,521 1,044
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Properties, Plant & Equipment (1,398) (1,459)
Proceeds from Sale of Properties, Plant & Equipment 415 586
NET CASH USED IN INVESTING ACTIVITIES (983) (873)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Borrowings - 211
Repayment of Finance Leases (187) (316)
Contributed Capital from Government - 2,000
NET CASH FLOWS FROM FINANCING ACTIVITIES (187) 1,895
NET INCREASE IN CASH HELD 2,351 2,066
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 295 (1,771)
CASH AND CASH EQUIVALENTS AT END OF PERIOD 5 2,646 295
Non-Cash Financing and Investing Activities 16
This Statement should be read in conjunction with the accompanying notes.
8

Central Gippsland Health Service
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2006
Table of Contents
Note
Page
1 Statement of Accounting Policies 10-15
2 Revenue 16
2a Analysis of Revenue by Source 17-18
2b Analysis of Expense by Source 19-20
2c Patient Fees 21
2d Net Gain/(Loss) on Disposal of Non Current Assets 21
2e Assets Received Free of Charge or For Nominal Consideration 21
2f Analysis of Expenses by Business Unit for Services
Supported by Hospital and Community Initiatives 22
2g Specific Income 22
3 Depreciation and Amortisation 22
4 Finance Costs 23
5 Cash Assets and Cash Equivalents 23
6 Receivables 23
6a Gippsland Regional Information Technology Alliance 24
7 Other Financial Assets 24
7a Monies Held in Trusts 24
8 Inventory 24
9 Property, Plant and Equipment 25-26
10 Payables 27
11 Interest Bearing Liabilities 27
12 Employee Provisions 27
13 Other Liabilities 28
14 Equity & Reserves 28
15 Reconciliation of Net Cash Flows from Operating Activities
to Operating Result 29
16 Non-Cash Financing and Investing Activities 29
17 Financial Instruments 29-30
18 Commitments 31
19 Contingent Liabilities & Contingent Assets 32
20 Superannuation 32
21 Segment Reporting 33
22 Responsible Person Related Disclosures 34
23 Remuneration of Auditors 34
24 Events Occurring after Reporting Date 34
25 Impacts of adopting AASB equivalents to IASB standards 35
9

Central Gippsland Health Service
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 has been prepared on an accrual basis in accordance with the Financial
Management Act 1994, Accounting Standards issued by the Australian Accounting Standards Board 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 Peter Craighead Interim Chief Executive Officer on 28 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, as noted. Cost is based on the fair values of the consideration given in
exchange for assets.
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.
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 Health Service 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 25.
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.
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 the accounting policies in respect of financial instruments. The Health Service has not restated comparative information
for financial instruments, including derivatives, 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(af).
(a) Reporting Entity
The financial statements include all the controlled activities of the Health Service. The Health Service is a not-for
profit 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.
10
(c)
(d)
(e)
Principles of Consolidation
The assets, liabilities, revenues and expenses of all controlled entities of the Health Service have been included
at the values shown in their audited Annual Financial Reports. Any inter-entity transactions have been
eliminated on consolidation.
Cash & Cash Equivalents
Cash and cash equivalents comprise cash on hand and in banks and investments in money market instruments,
net of outstanding bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the
Balance Sheet.
Receivables
Trade debtors are carried at nominal amounts due and are due for settlement within 30 days from the date
of recognition. Collectability of debts is reviewed on an ongoing basis, and debts which are known to be
uncollectible are written off. A provision for doubtful debts is raised where doubt as to collection exists.

Central Gippsland Health Service
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2006
Note 1 Statement of Accounting Policies (continued)
(f)
(g)
(h)
(i)
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 includes land held for sale and excludes depreciable assets.
Inventories held for distribution are measured at the lower of cost and current replacement cost. All other
inventories, including land held for sale, 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.
Other Financial Assets
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 Health Service Board of Management's
intention at balance date with respect to the timing of disposal of each asset.
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.
The classification depends on the purpose for which the investments were acquired. 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 Health Service 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 Health Service 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.
Dividend revenue is recognised on a receivable basis. Interest revenue is recognised on a time proportionate
basis that takes into account the effective yield on the financial asset.
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.
Revaluations of Non-Current Assets
Assets other than those that are 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. 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 at an expense
in net result, the increment is recognised as revenue in the net result.
Revaluation decrements are recognised immediately as expenses in the net result, except that, to the extent that
a credit balance exists in the asset revaluation 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.
As disclosed in note 9 the Service revalued its Land and Building assets as at 30 June 2006, resulting in an
increase in the value of Land of $2.444 million and Buildings of $8.665 million with a corresponding credit of
$11.109 million to the Asset Revaluation Reserve.
11

Central Gippsland Health Service
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2006
Note 1 Statement of Accounting Policies (continued)
(j)
(k)
(l)
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. This depreciation charge 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 50 years Up to 50 years
Plant & Equipment Up to 20 years Up to 20 years
Furniture and Fittings Up to 20 years Up to 20 years
Leased Assets Up to 10 years Up to 10 years
Communication Up to 5 years Up to 5 years
Linen Up to 5 years Up to 5 years
Impairment of Assets
All assets with indefinite useful lives are tested annually as to whether their carrying value exceeds their
recoverable amount, except for inventories.
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 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.
Payables
These amounts represent liabilities for goods and services provided prior to the end of the financial year and
which are unpaid. The normal credit terms are usually Net 30 days.
(m) 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.
(n)
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.
(o)
(p)
Interest Bearing Liabilities
Interest bearing liabilities in the Balance Sheet are recognised at fair value upon initial recognition. Subsequent
to initial recognition, all financial liabilities are recognised at amortised cost using the effective interest method.
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.
12

Central Gippsland Health Service
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2006
Note 1 Statement of Accounting Policies (continued)
(q)
(r)
Goods and Services Tax
Revenues, expenses and assets are recognised net of GST, except for receivables and payables which are
stated with the amount of GST included and except, where the amount of GST incurred is not recoverable, in
which case GST is recognised as part of the cost of acquisition of an asset or part of an item of expense or
revenue. GST receivable from and payable to the Australian Taxation 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.
Employee Benefits
Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave,
long service leave, and sick 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, sick leave, 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 (ie 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 in the financial statements as it is anticipated that sick leave to be
taken in future reporting periods will be less than the entitlements which are expected to accrue in those
periods.
Superannuation
Defined contribution plans
Contributions to defined contribution superannuation plans are expenses when incurred.
Defined benefit plans
The amount charged to the Operating Statement in respect of defined benefit plan superannuation
represents the contributions made by the Health Service 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 administers and discloses the State’s defined
benefit liabilities in its financial report.
13

Central Gippsland Health Service
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2006
Note 1 Statement of Accounting Policies (continued)
Termination Benefits
Liabilities for termination benefits are recognised when a detailed plan for the termination has been
developed and a valid expectation has been raised with those employees affected that the terminations
will be carried out. The liabilities for termination benefits are recognised in other creditors unless the
amount or timing of the payments is uncertain, in which case they are recognised as a provision.
Employee Benefit On-Costs
Employee benefit on-costs are recognised and included in employee benefit liabilities and costs when the
employee benefits to which they relate are recognised as liabilities.
(s)
(t)
(u)
(v)
Finance Costs
Finance costs are recognised as expenses in the period in which they are incurred.
Finance costs include:
● interest on bank overdrafts and short-term and long-term borrowings;
● amortisation of discounts or premiums relating to borrowings;
● amortisation of ancillary costs incurred in connection with the arrangement of borrowings;
● finance charges in respect of finance leases recognised in accordance with AASB 117 Accounting for
Leases;
● exchange differences arising from foreign currency borrowings net of the effects of any hedge of the
borrowings.
Residential Aged Care Service
The JHF McDonald Wing Nursing Home and Wilson Lodge Nursing Home are an integral part of the Health
Service and share its resources. They are substantially funded from Commonwealth bed-day subsidies.
Wilson Lodge has been segregated based on actual revenue earned and expenditure incurred. While
JHF McDonald Wing and the Maffra Hospital are contained within the one facility, revenues and expenditure
are allocated directly to the respective facilities where possible. Those revenues and expenses that cannot be
allocated directly to one of the relevant areas of service are allocated on the basis of floor space used by
each facility.
Intersegment Transactions
Transactions between segments within the Health Service have been eliminated to reflect the extent of the
Health Service's operations as a group.
Leased Property and Equipment
A distinction is made between finance leases which effectively transfer from the lessor to the lessee substantially
all the risks and benefits incidental to ownership of leased non-current assets, and operating leases under
which the lessor effectively retains all such risks and benefits. Assets held under a finance lease are recognised
as non current assets at their fair value or, if lower, at the present value of the minimum lease payments, each
determined at the inception of the lease. The minimum lease payments are discounted at the interest rate
implicit in the lease. A corresponding liability is established and each lease payment is allocated between the
principal component and the interest expense.
Finance leased assets are amortised on a straight line basis over the estimated useful life of the asset.
Operating lease payments are representative of the pattern of benefits derived from the leased assets and
accordingly are expensed in the periods in which they are incurred.
(w) Revenue Recognition
Revenue is recognised in accordance with AASB 118 Revenue. Income is recognised as revenue to the extent it
is earned. Unearned income at reporting date is reported as income received in advance.
Amounts disclosed as revenue are, where applicable, net of returns, allowances and duties and taxes.
Government Grants
Grants are recognised as revenue when the Service gains control of the underlying assets. Where grants
are reciprocal, revenue is recognised as performance occurs under the grant. Non-reciprocal grants are
recognised as revenue when the grant is received or receivable. Conditional grants may be reciprocal or
non-reciprocal depending on the terms of the grant.
14

Central Gippsland Health Service
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2006
Note 1 Statement of Accounting Policies (continued)
Indirect Contributions
– Insurance is recognised as revenue following advice from the Department of Human Services.
– Long Service Leave (LSL) – 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 balance date.
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. If donations are for a
special purpose, they may be appropriated to a reserve, such as restricted specific purpose reserve.
(x)
(y)
(z)
Fund Accounting
The Service operates on a fund accounting basis and maintains three funds: Operating, Special Purpose and
Capital Funds. The Service's Capital and Special Purpose Funds include unspent capital donations and receipts
from fund-raising activities conducted solely in respect of these funds.
Services Supported by Health Services Agreement and
Services Supported by Hospital and Community Initiatives
Activities classified as Services Supported by Health Services Agreement (HSA) are substantially funded by the
Department of Human Services while Services Supported by Hospital and Community Initiatives (Non HSA) are
funded by the Service's own activities or local initiatives.
Comparative Information
Where necessary the previous year’s figures have been reclassified to facilitate comparisons.
(aa) Asset Revaluation Reserve
The asset revaluation reserve is used to record increments and decrements on the revaluation of non-current
assets.
(ab) Restricted Specific Purpose Reserve
A specific restricted purpose reserve is established where the Service has possession or title to the funds but has
no discretion to amend or vary the restriction and/or condition underlying the fund received.
(ac) Contributed Capital
Consistent with UIG Interpretation 1038 'Contributions by Owners Made to Wholly-Owned Public Sector
Entities' and Financial Reporting Directions 2 “Contributed Capital”, transfers that are in the nature of
contributions or distributions, have been designated as contributed capital. Other transfers that are in the nature
of contributions or distributions, have also been designated as contributed capital.
(ad) 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(e), 1(g) and 1(n).
(ae) Gippsland Regional Information Technology Alliance
The Health Service is one of ten health care institutions with an interest in the Gippsland Health Information
Technology Alliance. In years prior to 30 June 2003 the Health Service’s share of the revenues and expenses of
the alliance were calculated as an equal venturer. From the year ended 30 June 2003 onwards this share of
revenues and expenses was calculated on the basis of the gross operating revenue (GOR) of each of the
participants. However, during the last financial year the GHA decided to recalculate the share of the revenues
and expenses for the years ending 30 June 1999 through to the year ended 30 June 2003 using the GOR
method rather than the equal share method. This has resulted in a significant once off adjustment of $324,519
which is included as operating revenue. As this is not a change in accounting policy but rather a change in
the Alliance agreement it is required to be disclosed as current revenue.
15

Central Gippsland Health Service
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2006 (continued)
Note 2: Revenue
HSA
2006
$’000
HSA
2005
$’000
Non HSA
2006
$’000
Non HSA
2005
$’000
Total
2006
$’000
Total
2005
$’000
Revenue from Operating Activities
Government Grants
Department of Human Services 35,789 34,752 - - 35,789 34,752
Dental Health Services Victoria 518 439 - - 518 439
State Government - Other
Equipment and Infrastructure Maintenance 231 231 - - 231 231
Other 422 485 - - 422 485
Commonwealth Government
Residential Aged Care Subsidy 3,248 3,173 - - 3,248 3,173
Other 190 247 - - 190 247
Indirect Contributions by Human Services
Insurance 923 789 - - 923 789
Long Service Leave 232 112 - - 232 112
Patient and Resident Fees - (refer note 2c) 2,180 2,130 - - 2,180 2,130
Private Practice Facilities - 53 - - - 53
Donations & Bequests 200 481 27 40 227 521
Diagnostic Imaging - - 3,981 3,703 3,981 3,703
Linen Service - - 1,795 1,848 1,795 1,848
Other Revenue from Operating Activities 943 1,149 2,131 1,673 3,074 2,822
Sub-Total Revenue from Operating Activities 44,876 44,041 7,934 7,264 52,810 51,305
Revenue from Non-Operating Activities
Interest - - 109 25 109 25
Property Income - - 158 139 158 139
Sub-Total Revenue from Non-Operating Activities - - 267 164 267 164
Capital Purpose Income
16
State Government Capital Grants - - 661 386 661 386
Capital Donations - - 23 62 23 62
Net Gain from Sale of Non Current Assets -
(refer note 2d) - - 66 47 66 47
Sub-Total Revenue from Capital Purpose Income - - 750 495 750 495
Specific Income (refer note 2g) - - 1,900 - 1,900 -
Assets Provided Free of Charge (refer note2e) - - 25 - 25 -
Total Revenue from Continuing Operations
(refer note 2a) 44,876 44,041 10,876 7,923 55,752 51,964
Indirect contributions by Human Services
Department of Human Services makes certain payments on behalf of the Service. These amounts have been brought to
account in determining the operating result for the year by recording them as revenue and expenses.

Central Gippsland Health Service
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2006 (continued)
Note 2a: Analysis of Revenue by Source
Revenue from Services Supported by
Health Services Agreement
Acute
Health
2006
$’000
Acute
Health
2005
$’000
RAC
2006
$’000
RAC
2005
$’000
Aged
Care
2006
$’000
Aged
Care
2005
$’000
Other
2006
$’000
Other
2005
$’000
Total
2006
$’000
Total
2005
$’000
Government Grants
- Department of Human Services 30,081 29,375 1,758 1,742 3,950 3,635 - - 35,789 34,752
- Dental Health Services Victoria - - - - 518 439 - - 518 439
- Other State Government - - 653 716 - - 653 716
- Commonwealth Government - -
Residential Aged Care Subsidy - - 3,248 3,173 - - - - 3,248 3,173
Other - - - 77 190 170 - - 190 247
Indirect Contributions by Human Services - -
- Insurance 781 684 142 105 - - - - 923 789
- Long Service Leave 141 (56) 79 63 12 105 - - 232 112
Patient and Resident Fees -
(refer note 2c) 865 750 1,019 987 296 393 - - 2,180 2,130
Private Practice Facilities - 53 - - - - - - - 53
Donations & Bequests 180 481 - - 20 - - - 200 481
Other Revenue 755 953 7 - 181 196 - - 943 1,149
Sub-Total Revenue from Services Supported
by Health Services Agreement 32,803 32,240 6,253 6,147 5,820 5,654 - - 44,876 44,041
Indirect contributions by Human Services
Department of Human Services makes certain payments on behalf of the Service. These amounts have been brought to
account in determining the operating result for the year by recording them as revenue and expenses.
Acute Health comprises expenses and revenue for Admitted Services, Non-Admitted Services, Emergency Department
Services, Sub-Acute Care, Acute Training and development, and Blood Services.
Residential Aged Care Services (RACS) comprises expenses and revenue on Commonwealth-registered residential aged
care services subsidised by the Australian Department of Health and Ageing under The Aged Care Act (Cwlth) Act 1997,
i.e. nursing homes and aged care hostels.
Aged Care Comprises expenses and revenue for Home and Community Care (HACC) programs, Allied Health, Aged
Care Assessment and support services.
17

Central Gippsland Health Service
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2006 (continued)
Note 2a: Analysis of Revenue by Source (continued)
Revenue from Services Supported by
Hospital and Community Initiatives
Acute
Health
2006
$’000
Acute
Health
2005
$’000
RAC
2006
$’000
RAC
2005
$’000
Aged
Care
2006
$’000
Aged
Care
2005
$’000
Other
2006
$’000
Other
2005
$’000
Total
2006
$’000
Total
2005
$’000
Business Units
Diagnostic Imaging - - - - - - 3,981 3,703 3,981 3,703
Linen Service - - - - - - 1,795 1,848 1,795 1,848
Other Activities
Capital Purpose Income (refer note 2) - - - - - - 750 495 750 495
Specific Income (refer note 2g) - - - - - - 1,900 - 1,900 -
Assets Provided Free of Charge (refer note 2e) - - - - - - 25 - 25 -
Donations & Bequests - - - - - - 27 40 27 40
Community Support - - - - - - 783 755 783 755
Cardiology - - - - - - 108 79 108 79
Other - - - - - - 1,507 1,003 1,507 1,003
Sub-Total Revenue from Services Supported
by Hospital and Community Initiatives - - - - - - 10,876 7,923 10,876 7,923
Total Revenue from All Sources 32,803 32,240 6,253 6,147 5,820 5,654 10,876 7,923 55,752 51,964
18

Central Gippsland Health Service
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2006 (continued)
Note 2b: Analysis of Expenses by Source
Services Supported by
Health Services Agreement
Acute
Health
2006
$’000
Acute
Health
2005
$’000
RAC
2006
$’000
RAC
2005
$’000
Aged
Care
2006
$’000
Aged
Care
2005
$’000
Other
2006
$’000
Other
2005
$’000
Total
2006
$’000
Total
2005
$’000
Employee Benefits -
Salaries & Wages 19,165 19,483 4,321 4,167 3,523 3,374 - - 27,009 27,024
WorkCover 471 571 105 118 88 111 - - 664 800
Departure Packages 123 - 7 - - - - - 130 -
Long Service Leave 509 330 151 132 101 129 - - 761 591
Superannuation (refer note 20) 2,013 2,081 367 377 349 340 - - 2,729 2,798
Non Salary Labour Costs -
Fee for Service Medical Officers 2,390 1,830 - - - - - - 2,390 1,830
Supplies & Consumables
Drug supplies 1,397 1,532 43 43 15 22 - - 1,455 1,597
Medical & Surgical Supplies 1,307 1,262 97 94 399 341 - - 1,803 1,697
Pathology Supplies 949 809 - - - 121 - - 949 930
Radiology Supplies - - - - - -
Food Supplies 415 314 369 369 214 179 - - 998 862
Other Expenses
Domestic Services & Supplies 181 208 47 52 34 30 - - 262 290
Fuel, Light, Power and Water 389 351 104 79 35 31 - - 528 461
Insurance Costs funded by DHS 781 668 142 121 - - - - 923 789
Motor Vehicle Expenses 120 119 4 7 99 103 - - 223 229
Repairs and Maintenance 204 167 71 62 137 59 - - 412 288
Maintenance Contracts 98 60 8 7 1 10 - - 107 77
Patient Transport 595 546 - 1 - - - - 595 547
Bad & Doubtful Debts 33 - - - 3 - - - 36 -
Lease Expenses 34 17 2 2 4 15 - 40 34
Other Administrative Expenses 1,955 2,197 66 80 378 255 - - 2,399 2,532
Sub-Total Expenses from Services
Supported by
Health Services Agreement 33,129 32,545 5,904 5,711 5,380 5,120 - - 44,413 43,376
19

Central Gippsland Health Service
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2006 (continued)
Note 2b: Analysis of Expenses by Source (continued)
Services Supported by
Hospital and Community Initiatives -
Acute
Health
2006
$’000
Acute
Health
2005
$’000
RAC
2006
$’000
RAC
2005
$’000
Aged
Care
2006
$’000
Aged
Care
2005
$’000
Other
2006
$’000
Other
2005
$’000
Total
2006
$’000
Total
2005
$’000
Employee Benefits -
Salaries & Wages - - - - - - 3,209 3,406 3,209 3,406
WorkCover - - - - - - 74 97 74 97
Departure Packages - - - - - - 31 - 31 -
Long Service Leave - - - - - - 89 61 89 61
Superannuation (refer note 20) - - - - - - 291 324 291 324
Supplies & Consumables
Drug supplies - - - - - - 284 276 284 276
Medical & Surgical Supplies - - - - - - 188 324 188 324
Pathology Supplies - - - - - - 8 8 8 8
Radiology Supplies - - - - - - 1,349 1,240 1,349 1,240
Food Supplies - - - - - - 91 127 91 127
Other Expenses
Domestic Services & Supplies - - - - - - 107 118 107 118
Fuel, Light, Power and Water - - - - - - 189 157 189 157
Motor Vehicle Expenses - - - - - - 106 85 106 85
Repairs and Maintenance - - - - - - 66 80 66 80
Maintenance Contracts - - - - - - 226 211 226 211
Bad & Doubtful Debts - - - - - - 2 2 2 2
Lease Expenses - - - - - - 243 215 243 215
Other Administrative Expenses - - - - - - 585 465 585 465
Sub-Total Expenses from Services
Supported by
Hospital and Community Initiatives - - - - - - 7,138 7,196 7,138 7,196
Depreciation and Amortisation -
(refer note 3) - - - - - - 2,707 3,000 2,707 3,000
Audit Fees
Auditor General's - - - - - - 28 28 28 28
Other - - - - - - - 43 - 43
Finance Costs - (refer note 4) - - - - - - 34 63 34 63
33,129 32,545 5,904 5,711 5,380 5,120 9,907 10,330 54,320 53,706
20

Central Gippsland Health Service
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2006 (continued)
Note 2c: Patient and Resident Fees
2006 2005
$'000
$'000
Patient and Resident Fees Raised
Recurrent:
Acute Care
- Inpatients 807 689
- Outpatients 58 61
Residential Aged Care
- Nursing Home Patient Fees
1,019 987
Community Health 296 393
Total Recurrent 2,180 2,130
The Service charges hospital 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 Disposal of Non Current Assets
Plant and Equipment
- Transport 415 586
Total Proceeds from Disposal of Non Current Assets 415 586
Less: Written Down Value of Non Current Assets Sold
Plant and Equipment
- Transport 349 539
Total Written Down Value of Non Current Assets Sold 349 539
Net Gain on Disposal of Non Current Assets 66 47
Note 2e: Assets Received Free of Charge or For Nominal Consideration
2006 2005
$'000
$'000
Ventilator - Commonwealth Government 25 -
TOTAL 25 -
21

Central Gippsland Health Service
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2006 (continued)
Note 2f: Analysis of Expenses by Business Unit for Services Supported
by Hospital and Community Initiatives
2006 2005
$'000
$'000
Diagnostic Imaging 3,740 3,619
Linen Service 1,747 1,934
Cardiology 139 134
Community Support 547 593
Other 1,531 1,383
TOTAL 7,704 7,663
Note 2g: Specific Income 2006 2005
$'000
$'000
Forgiveness of DHS Loan 1,900 -
TOTAL 1,900 -
Note 3: Depreciation and Amortisation 2006 2005
$'000
$'000
Depreciation
Buildings 1,354 1,354
Plant & Equipment
- Plant 58 61
- Transport 205 239
- Major Medical 329 370
-Computers and Communications 218 201
-Other Equipment 151 172
Furniture & Fittings 131 145
Linen 95 303
Total Depreciation 2,541 2,845
Amortisation
Leased Assets
Plant & Equipment
-Plant 29 29
-Major Medical 70 71
-Computers and Communications 38 26
-Other Equipment 8 8
Furniture & Fittings 21 21
Total Amortisation 166 155
Total Depreciation and Amortisation 2,707 3,000
Allocation of Depreciation/Amortisation:
Services Supported by Health Services Agreement 2,364 2,437
Services Supported by Hospital and Community Initiatives 343 563
22
2,707 3,000

Central Gippsland Health Service
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2006 (continued)
Note 4: Finance Costs
2006 2005
$'000
$'000
Finance Charges on Leases 34 47
Interest on Short Term Borrowings - 16
TOTAL 34 63
Note 5: Cash Assets & Cash Equivalents
For the purpose of the Statement of Cash Flows, cash 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.
2006 2005
$'000
$'000
Cash on hand 33 33
Cash at Bank 1,561 262
Short Term Deposits 1,052 -
TOTAL 2,646 295
The service has a bank overdraft facility of $300,000.
Note 6: Receivables
2006 2005
$'000
$'000
CURRENT
Inter Hospital Debtors 217 134
Trade Debtors 381 508
Patient Fees 262 200
Diagnostic Imaging Debtors 224 146
Accrued Revenue - Other 60 52
TOTAL 1,144 1,040
LESS Provisions for Doubtful Debts
Trade Debtors 60 28
Patient Fees 11 6
TOTAL CURRENT RECEIVABLES 1,073 1,006
NON CURRENT
DHS - Long Service Leave 707 1,078
Gippsland Regional Information Technology Alliance 734 572
TOTAL NON CURRENT RECEIVABLES 1,441 1,650
TOTAL RECEIVABLES 2,514 2,656
BAD & DOUBTFUL DEBTS
Patient Fees
7 2
Total 7 2
23

Central Gippsland Health Service
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2006 (continued)
Note 6a: Gippsland Regional Information Technology Alliance
Central Gippsland Health Service (CGHS) is one of ten Gippsland healthcare institutions with an interest in the
Gippsland Health Information Technology Alliance. The Health's service interest is included as a Non Current Receivable.
Refer Note 6.
The total Alliance funds available, 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 448 400
Total Income 3,979 3,141
Expenditure
Employee Benefits (395) (328)
Information Technology & Administration Expenses (4,721) (4,033)
Total Expenditure (5,116) (4,361)
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 Service's share of the Alliance net assets at balance date was $733,810 ($572,157 in 2004/05).
Note 7: Other Financial Assets 2006 2005
$'000
$'000
Current
Monies held in Trust (refer note 7a) 205 177
Total 205 177
Note 7a: Monies Held in Trust 2006 2005
$'000
$'000
Current
Patient Monies held in Trust 46 31
Other Monies held in Trust 159 146
Total 205 177
Represented by the following assets:
Cash at Bank 205 177
Total 205 177
Note 8: Inventory 2006 2005
$'000
$'000
Pharmaceuticals 210 240
Other Consumables 194 179
Total 404 419
24

Central Gippsland Health Service
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2006 (continued)
Note 9: Property, Plant & Equipment 2006 2005
$'000
$'000
Land
Crown Land at Valuation 3,838 1,761
Freehold Land at Valuation 517 162
Total Land 4,355 1,923
Buildings
Buildings Under Construction 252 28
Buildings at Cost - 7,856
Less Accumulated Depreciation - 181
Buildings at Valuation 47,372 34,780
Less Accumulated Depreciation - 2,394
Total Buildings 47,624 40,089
Plant & Equipment at Cost
- Plant 1,658 2,125
Less Accumulated Depreciation 1,420 1,823
- Transport 1,228 1,374
Less Accumulated Depreciation 614 658
Major Medical 7,419 7,103
Less Accumulated Depreciation 5,668 5,383
- Computers & Communications 3,088 3,533
Less Accumulated Depreciation 2,647 2,988
- Other Equipment 3,207 3,738
Less Accumulated Depreciation 2,473 2,849
Total Plant and Equipment 3,778 4,172
Furniture & Fittings at Cost 1,798 2,170
Less Accumulated Depreciation 1,046 1,349
Total Furniture and Fittings 752 821
Other at Cost
Linen 340 1,565
Less Accumulated Depreciation 169 1,411
Total Other 171 154
Leased Assets at Cost
- Plant & Equipment
Plant 291 291
Less Accumulated Depreciation 121 92
Major Medical 1,269 1,269
Less Accumulated Depreciation 1,050 980
Computer & Communications 275 275
Less Accumulated Depreciation 83 36
- Furniture & Fittings 210 210
Less Accumulated Depreciation 68 47
Total Leased assets 723 890
Total Property Plant & Equipment 57,403 48,049
25

Central Gippsland Health Service
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2006 (continued)
An independent valuation of the Health Service's land and buildings were performed by the Valuer General to determine
the fair value of land and buildings. The effective date of the valuation is 30 June 2006.
The basis for Valuation is as follows:-
Land
All land is valued at market value
Buildings
Buildings that are be able to be traded on an active liquid market are valued at market value. Other specialised
buildings where no active liquid market exists are valued at written down replacement cost.
Reconciliations of the carrying amounts of each class of land, buildings, plant & equipment and communication at the
beginning and end of the previous and current financial year are set out below.
Land
$’000
Buildings
$’000
Plant &
Equipment
$’000
Furniture
& Fittings
$‘000
Linen
$‘000
Leased
Assets
$‘000
Total
$‘000
Balance as at 1 July 2004 1,923 41,409 4,676 925 343 853 50,129
Additions - 34 1,076 43 114 192 1,459
Disposals - - (539) - - - (539)
Depreciation and Amortisation (refer Note 3) - (1,354) (1,041) (147) (303) (155) (3,000)
Balance as at 1 July 2005 1,923 40,089 4,172 821 154 890 48,049
Additions - 251 975 85 112 - 1,423
Disposals - - (349) - - - (349)
Depreciation and Amortisation (refer Note 3) - (1,354) (960) (131) (95) (167) (2,707)
Assets Written Off (12) (27) (60) (23) - - (122)
Revaluation 2,444 8,665 - - - - 11,109
Balance as at 30 June 2006 4,355 47,624 3,778 752 171 723 57,403
26

Central Gippsland Health Service
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2006 (continued)
Note 10: Payables
2006 2005
$'000
$'000
Current
Trade Creditors 1,688 814
Accrued Expenses 256 686
GST Payable 172 175
Income in Advance 508 406
TOTAL 2,624 2,081
Note 11: Interest Bearing Liabilities
2006 2005
$'000
$'000
Current
Finance Lease Liabilities (Note 18) 158 187
Total Australian Currency Borrowings 158 187
Non-Current
Finance Lease Liabilities (Note 18) 228 386
Total Australian Currency Borrowings 228 386
Total Interest Bearing Liabilities 386 573
Note 12: Employee Provisions
2006 2005
$'000
$'000
Current
Long Service Leave
- short term benefits at nominal value 610 408
- long term benefits at present value 3,011 2,993
Annual Leave
- short term benefits at nominal value 2,958 2,718
Accrued Salaries and Wages 976 862
Accrued Days Off 123 147
TOTAL 7,678 7,128
Non-Current
Long Service Leave 1,214 1,199
TOTAL 1,214 1,199
Movement in Long Service Leave:
Balance 1, July 4,600 4,461
Provision made during the year 850 651
Settlement made during the year (615) (512)
Balance 30 June 4,835 4,600
The following assumptions were adopted in measuring present value:
Wage Inflation Rate 4.75%
On-Cost Factor 11.0%
27

Central Gippsland Health Service
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2006 (continued)
Note 13: Other Liabilities
2006 2005
$'000
$'000
Current
Trust Funds
- Monies held on behalf of Patients at 30 June 46 31
- Monies held on behalf of Employees at 30 June 159 146
Total Monies held in Trust 205 177
Non-Current
Loan from Department of Human Services (Non Interest Bearing) - 1,900
Total Loan from DHS - 1,900
Note 14: Equity & Reserves
2006 2005
$'000
$'000
(a) Reserves
Asset Revaluation Reserve
Land
Balance at the beginning of the reporting period 821 821
Revaluation Increments 2,444 -
Balance at the end of the reporting period 3,265 821
Building
Balance at the beginning of the reporting period 9,932 9,932
Revaluation Increments 8,665 -
Balance at the end of the reporting period 18,597 9,932
Balance Asset Revaluation Reserve at the end of the reporting period 21,862 10,753
Restricted Specific Purpose Reserve
Balance at the beginning of the reporting period 266 266
Balance at the end of the reporting period 266 266
Total Reserves 22,128 11,019
(b) Contributed Capital
Balance at the beginning of the reporting period 33,782 31,782
Equity Injection refer Note 1(ae) - 2,000
Balance at the end of the reporting period 33,782 33,782
(c) Accumulated (Deficit)
Balance at the beginning of the reporting period (6,175) (4,433)
Net Result for the Year 1,432 (1,742)
Balance at the end of the reporting period (4,743) (6,175)
(d) Equity
Total Equity at the Beginning of the reporting period 38,626 38,368
Total Changes in Equity Recognised in the Operating Statement 1,432 (1,742)
Equity Injection - 2,000
Revaluation Increments 11,109 -
Total Equity at the reporting date 51,167 38,626
28

Central Gippsland Health Service
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2006 (continued)
Note 15: Reconciliation of Net Cash Flows from Operating Activities to Operating Result
2006 2005
$'000
$'000
Net Result for the year 1,432 (1,742)
Depreciation 2,541 2,845
Amortisation 166 155
Assets Written Off 122 -
Forgiveness of DHS Loan (1,900) -
Provision for Doubtful Debts 37 -
Assets Received free of Charge (25) -
Net Gain from sale of Plant & Equipment (66) (91)
Increase/(Decrease) in Payables 543 (217)
Increase/(Decrease) in Employee Benefits 565 (350)
Decrease/(Increase) in Other Current Assets 1 (6)
Decrease/(Increase) in Receivables 105 450
Net Cash Flows from Operating Activities 3,521 1,044
Note 16: Non-Cash Financing and Investing Activities 2006 2005
$'000
$'000
Acquisition of Plant and Equipment by means of finance leases - 192
Total - 192
Note 17: Financial Instruments
(a) Interest Rate Exposure
The Service'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 arise predominantly from assets and liabilities bearing variable interest rates.
Interest rate exposure as at 30/06/2006
Floating
Interest
Rate
$’000
Financial Assets
Cash at Bank 2,646 - - - 2,646 5.51%
Patient fees - - - 251 251
Other Receivables - - - 2,263 2,263
Total Financial Assets 2,646 - - 2,514 5,160
Financial Liabilities
Trade creditors and accruals - - - 2,624 2,624
Finance Lease - 158 228 - 386 6.81%
Total Financial Liabilities 158 228 2,624 3,010
Net Financial Asset/Liabilities 2,646 (158) (228) (110) 2,150
*Weighted average or effective interest rates for each class of assets
Fixed Interest Rate Maturing
1 Year
or Less
$’000
1 to 5
Years
$’000
Non
Interest
Bearing
$’000
Total
2006
$’000
*Weighted
Average
Interest
Rates
(%)
29

Central Gippsland Health Service
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2006 (continued)
Interest rate exposure as at 30/06/2005
Financial Assets
Cash at Bank 295 - - - 295 4.10%
Patient fees - - - 194 194
Other Receivables - - - 1,890 1,890
Total Financial Assets 295 - - 2,084 2,379
Financial Liabilities
Bank overdraft - - - - -
Trade creditors and accruals - - - 2,081 2,081
Finance lease - 187 386 573 6.76%
Loan from DHS - - - 1,900 1,900
Total Financial Liabilities - 187 386 3,981 4,554
Net Financial Asset/Liabilities 295 (187) (386) (1,897) (2,175)
*Weighted average or effective interest rates for each class of assets
(b) Credit Risk Exposure
Credit risk represents the loss that would be recognised if counterparties fail to meet their obligations under the respective
contracts at maturity. The credit risk on financial assets of the entity have been recognised on the statement of financial
position, as the carrying amount, net of any provisions for doubtful debts.
(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
net fair value of each financial asset or liability.
Net Fair Value
Floating
Interest
Rate
$’000
Fixed Interest Rate Maturing
1 Year
or Less
$’000
Financial Assets
Cash 2,646 2,646 295 295
Patient fees 251 251 194 194
Other Receivables 2,263 2,263 1,890 1,890
Total Financial Assets 5,160 5,160 2,379 2,379
Financial Liabilities
Trade creditors and accruals 2,624 2,624 2,081 2,081
Lease liabilities 386 386 573 573
Loan from DHS - - 1,900 1,900
Total Financial Liabilities 3,010 3,010 4,554 4,554
*Net fair values are capital amounts
(Net fair values of financial instruments are determined on the following bases:
1 to 5
Years
$’000
Total
2006
Book
Value
$’000
Non
Interest
Bearing
$’000
Total
2006
Net Fair
Value
$’000
Total
2005
$’000
Total
2005
Book
Value
$’000
*Weighted
Average
Interest
Rates
(%)
Total
2005
Net Fair
Value
$’000
i. Cash, deposit investments, cash equivalents and non-interest bearing financial assets and liabilities (trade debtors,
other receivables, trade creditors and advances) are valued at cost which approximates net fair value.
ii Interest bearing liabilities amounts are based on the present value of expected future cash flows discounted at current
market interest rates quoted for trade Treasury Corporation of Victoria.)
30

Central Gippsland Health Service
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2006 (continued)
Note 18: Commitments
Capital Commitments
2006 2005
$'000
$'000
Community Rehabilitation Centre 1,982 -
1,982 -
2006 2005
$'000
$'000
Operating Leases
Non-Cancelable
Not later than one year 283 221
Later than one year but not later than 5 years 638 619
Sub Total 921 840
TOTAL 921 840
Finance Leases
Commitments in relation to finance leases are payable as follows:
Not later than one year 179 221
Later than one year but not later than 5 years 243 425
Minimum lease payments 422 646
Less Future finance charges (36) (73)
TOTAL 386 573
Representing Lease Liabilities
Current - (note 11) 158 187
Non-Current - (note 11) 228 386
TOTAL 386 573
The weighted average interest rate implicit in leases is 6.81% (2005: 6.76%).
31

Central Gippsland Health Service
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2006 (continued)
Note 19: Contingent Liabilities & Contingent Assets
There are no known contingent liabilities or assets as at June 30th 2006
Note 20: Superannuation
Superannuation contributions for the reporting period are included as part of salaries and associated costs in the
Statement of Financial Performance of the Service.
The name and details of the major employee superannuation funds and contributions made by the Service are as follows:
FUND
2006
$’000
Contribution
for
the Year
2005
$’000
Contribution
Outstanding
at Year End
2006
$’000
Health Super Fund 3,020 3,122 101 70
2005
$’000
3,020 3,122 101 70
The bases for contributions are determined by the various schemes.
The unfunded superannuation liability in respect to members of Health Super Scheme is not recognised in the Balance
Sheet. The Service'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.
All employees of the Health Service are entitled to benefits on retirement, disability or death from the Government
Employees Super Fund. The defined benefit provides defined lump sum benefits based on years of service and annual
average salary.
32

Central Gippsland Health Service
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2006 (continued)
Note 21: Segment Reporting
2006
$’000
Hospital Nursing Home Linen Service Community Health Eliminations Total
2005
$’000
2006
$’000
2005
$’000
2006
$’000
2005
$’000
2006
$’000
2005
$’000
2006
$’000
2005
$’000
2006
$’000
Segment Revenue From
Outside 41,884 38,315 6,253 6,147 1,795 1,848 5,820 5,654 - - 55,752 51,964
Intersegment Revenue 2,233 2,301 - - 449 415 - - (2,682) (2,716) -
Total Revenue 44,117 40,616 6,253 6,147 2,244 2,263 5,820 5,654 (2,682) (2,716) 55,752 51,964
2005
$’000
Allocated Segment Expense 40,086 39,529 6,341 6,118 1,974 2,186 5,894 5,589 (2,682) (2,716) 51,613 50,706
Depreciation & Amortisation 1,921 1,988 297 276 144 360 345 376 - - 2,707 3,000
Total Expense 42,007 41,517 6,638 6,394 2,118 2,546 6,239 5,965 (2,682) (2,716) 54,320 53,706
Net Result for Year 2,110 (901) (385) (247) 126 (283) (419) (311) - - 1,432 (1,742)
Intersegment Assets 73 51 - - 38 36 - - (111) (87) - -
Segment Assets 50,968 38,907 7,880 7,903 941 1,016 3,485 3,858 - - 63,274 51,684
Total Assets 51,041 38,958 7,880 7,903 979 1,052 3,485 3,858 (111) (87) 63,274 51,684
Intersegment Liabilities 111 87 - - - - - - (111) (87) - -
Segment Liabilities 9,865 10,640 881 951 415 448 946 1,019 - - 12,107 13,058
Total Liabilities 9,976 10,727 881 951 415 448 946 1,019 (111) (87) 12,107 13,058
The major products/services from which the above segments derive revenue are:
Business Segments
Hospital
Nursing Home
Linen Service
Community Health
Services
Patient Services
Aged Care Services
Laundry & Linen Services
Community Services provided to the General Public
Normal commercial rates apply for charges from the Linen Service to other segments of the Service.
Geographical Segment
Central Gippsland Health Service operates predominantly in East Gippsland, Victoria. More than 90% of revenue,
net surplus from ordinary activities and segment assets relate to operations in East Gippsland, Victoria.
33

Central Gippsland Health Service
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2006 (continued)
Note 22: Responsible Person Related Disclosures
(a) Responsible Persons
Responsible Minister: Hon Bronwyn Pike, Minister for Health
Administrator (appointed by Governor in Council, November 2004): Peter Craighead
(b) Remuneration of Responsible Persons
No remuneration was received by Responsible Persons in connection with the management of Central Gippsland
Health Service.
The remuneration for the Administrator is met by the Department of Human Services that is disclosed in The Governor in
Council Order which is reported to Parliament.
The remuneration for the Minister for Health will be separately disclosed in the financial statements of the Department of
Premier & Cabinet.
(c) Retirement Benefits of Responsible Persons
No retirement benefits were paid in connection with the retirement of Responsible Persons of the Service.
(d) Other Transactions of Responsible Persons and their Related Parties
There were no transactions paid to responsible persons or their related parties during the reporting period.
(e) Executive Officers Remuneration
The number of Executive Officers other than the Ministers and Accountable Officers, and their 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 to $109,999 1 - 1 -
$110,000 to $119,999 - 1 - 1
$120,000 to $129,999 1 - 1 -
$140,000 to $149,999 1 - - -
$150,000 to $159,999 - 1 - 1
Total remuneration for the reporting period for Executive Officers included above amounted to $380,666 (2005: $263,470)
Note 24: Remunerations of Auditors
2006 2005
Audit fees paid or payable to the Victorian Auditor-General's Office $'000 $'000
for audit of the Hospital's financial report
Paid as at 30 June 2006 7 6
Payable as at 30 June 2006 21 22
Note 25: Events Occurring after Reporting Date
There were no events occurring after the reporting date that would substantially affect the operation of the Service.
34

Central Gippsland Health Service
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2006 (continued)
Note 26: 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 Health Service
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. The Health Service 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(af)). 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.
There are no material differences between the Operating Statement, Balance Sheet and Cash Flow Statement presented
under A-IFRS to those presented under the superseded policies
35