ANNUAL REPORT - Northern Health

09/10 

ANNUAL REPORT 

Broadmeadows Health Service / Bundoora Extended Care Centre / Craigieburn Health Service / Panch Health Service / The Northern Hospital

Our Vision 

A Healthier Northern Community 

Our Mission 

To apply our resources to work with our staff and 

partners, offering our diverse community excellence in 

health care and well-being through: 

• Prompt access; 

• A health promoting approach to quality care; 

• Effective partnerships; 

• Education. 

Our Values 

• Good patient care 

• Respect 

• Stewardship (responsibility) 

• Kindness 

• Integrity 

Our Goals 

Northern Health has determined six strategic goals for 

2009-2012. Focusing on these goals will support us to 

achieve our vision and mission. 

1. Deliver quality health services 

2. Build corporate capability (Finances, Infrastructure, 

Reputation) 

3. Improve consumer experience 

4. Enhance access to appropriate services 

5. Strengthen leadership and develop workforce 

6. Grow and translate education and research

Annual Report 

02 Chair’s Report 

04 CEO’s Report 

06 The Northern Health Board 

09 Corporate Governance 

13 Executive Team 

15 Organisational Structure 

16 Our Services 

20 Our Achievements 

33 Statement of Priorities 

33 Performance Priorities 

35 Activity and Funding 

36 Corporate Information 

38 Financial Summary 

40 Disclosure Index 

Financial Statements & Accompanying Notes 

44 Table of Contents - Financial Statements 

Contents 

09/10 Northern Health Annual Report 1

Chair’s Report 

Northern Health provides quality care to residents in 

Victoria’s fastest growing, northern growth corridor. We 

provide care to some 500,000 people living in Melbourne’s 

northern suburbs and to rural and regional centres north 

of Melbourne. 

Our five campuses, Broadmeadows Health Service, Bundoora 

Extended Care Centre, Criagieburn Health Service, Panch 

Health Service and The Northern Hospital provide care 

throughout all stages of life and in a variety of settings from 

acute and sub acute, to community based and in-home 

services. 

Northern Health continues to adapt to the needs of the 

community and during this last year, my final one as Chair 

of the Northern Health Board, it has been particularly 

rewarding to see significant organisational change take 

place in response to these ever increasing demands on 

our services. 

Since 2005 when I came to Northern Health, I am 

particularly proud of some of the major achievements 

Northern Health has made including: 

• the opening of the Day Oncology Service at The Northern 

Hospital to provide chemotherapy services 

to people in their local area; 

• the opening of Craigieburn Health Service enabling the 

delivery of sophisticated healthcare services to an area 

historically under-resourced and growing rapidly; 

• implementation of the HealthSMART technology 

program, an integrated patient and financial 

management information system; 

• The Northern Hospital - Stage 2A Capital Development 

which delivered two new medical wards, a refurbished 

Paediatric Ward, and a redesigned Paediatric Outpatients 

area, as well as the crucial expansion to the Outpatients 

Department; 

• the opening of the Medical Assessment and Planning 

Unit (MAPU) at The Northern Hospital, which receives 

medical inpatients for observation, care and treatment 

prior to transfer to a ward, another care facility or home. 

Patients receive intensive treatment by physicians, nurses 

and allied health staff for up to 48 hours, streamlining 

care and improving health outcomes; 

• the Transit Lounge at The Northern Hospital where we 

can care for patients waiting for ambulance transport 

home or elsewhere, allowing us to promptly prepare 

another bed for patients awaiting admission; 

• the development and implementation of the “Time-out” 

process in operating theatres to ensure that the correct 

procedure is carried out on the correct patient; 

• the implementation of ‘Centres Promoting Health 

Independence’ and ‘Improving Care for Older People’ 

initiatives which aim to move to a more person-centred 

approach for older patients; 

• extensive redevelopment and refurbishment of Bundoora 

Extended Care Centre; 

• the Client Patient Folder system was implemented, 

making Northern Health the first Victorian health service 

to have completed the full implementation of a scanned 

medical record within all campuses. The new scanned 

medical record replaces the existing hard copy medical 

records and provide clinical staff with immediate 

access to patient information from every PC within 

Northern Health; 

• the ongoing planning and development of the Northern 

Health Academic and Research Precint; 

• the redevelopment of the Short Stay Unit and After 

Hours GP Clinic at The Northern Hospital; 

• the $19.4m Mental Health extension at The Northern 

Hospital; and 

• The $2.5m, six bed maternity expansion. 

2 09/10 Northern Health Annual Report

It has been a privilege to serve this community and to do so 

with so with many exceptional people. To the members of 

the Northern Health Board, who I have had the wonderful 

opportunity to work so closely with to develop and enhance 

Northern Health’s future, I thank you for your dedication and 

commitment. The demands on Northern Health continue to 

change with increasing speed and intensity and being able 

to work with people who hold a similar vision has made my 

role leading the Board, a pleasure. 

I extend sincere thanks to the Northern Health Executive 

Management team, particularly during the past year, when 

they have shown sheer determination and strength. The 

financial challenges of the last 12 months and the incredible 

turnaround achieved, through exceptional leadership is an 

indication of the great team leading this terrific organisation. 

My thanks too to all staff members across our campuses 

who can continue to be proud to work for Northern Health 

as we provide the right health services at the right time and 

create a healthier northern community. 

Dr Sandra Hacker, AO 

Chair 

Northern Health Board 


CEO’s Report 

Northern Health continues to demonstrate great flexibility 

and responsiveness to the needs of the community we 

serve. Our organisation is experiencing significant increases 

and demand on our services and we continue to focus on 

achieving our vision for a healthier northern community. 

The previous two years have seen significant work 

undertaken and completed in clinical services and capital 

planning to prepare for and provide the most appropriate 

health services to meet the growing needs of our 

community. The outcomes from this have been rapidly 

translated into strategic master planning with predicted 

outcomes being 50% increase in services over the next five 

years and 100% increase in services over the next 10 years. 

In July, 2009, Northern Health implemented an organisation 

wide restructure to more efficiently and effectively operate 

across our five campuses and in December 2009, the 2009- 

12 Strategic Plan was endorsed by the Minister for Health 

and the Department of Health. 

In addition to strategic clinical services planning, the 

Redesigning Care program was established to deliver service 

improvement and build health service capability. Some of 

the significant projects completed within our Redesigning 

Care program include: 

• a major operational review of General Operating 

Theatres which led to a number of recommendations 

being implemented to improve overall management, 

patient flow and reduce patients cancellations; 

• the ‘Smooth Operations’ program which is designed 

to enhance the surgical patient journey and has led 

to reductions in non-elective patient postponements, 

reductions in Length Of Stay and improved systems 

for Pre-admission, elective admissions and unplanned 

surgery; 

• the ‘Redesigning the Non-admitted emergency patient 

journey’ program which supported the establishment 

of the Rapid Intervention and Treatment Zone (RITZ) in 

the Emergency Department at The Northern Hospital. 

This has resulted in improved access and care for nonadmitted 

patients. Patients treated in the RITZ are now 

seen in a more timely fashion reducing wait times for all 

patients; and 

• the ‘Improving the MAPU Experience’ project which 

focused on improving ward level communication for the 

Medical Assessment and Planning Unit at The Northern 

Hospital. Staff now spend more time directly with 

patients and supporting staff and the number of MAPU 

patients discharged prior to a 48 hour Length Of Stay 

has improved. 

Many organisations, including health services, have faced 

financial difficulty during recent years and Northern Health 

has worked extremely hard and had the largest financial 

turnaround of the 22 monitored health services in Victoria 

during the 2009/10 financial year. Northern Health’s 

performance improved from an operating deficit of $9.85m 

in 2008/09 to only $1.14m in 2009/10. 

This has been in conjunction with the achievement of the 

majority of our clinical service targets. This is evidenced 

by the improvement in the final quarter performance 

monitoring score from 51 out of 100 for the last quarter 

of 2008/09 to 83 out of 100 at the end of the 2009/10 

financial year. Underpinning this financial recovery is the 

three year Northern Health Financial Recovery Plan (2009- 

2012). This plan details strategies to return Northern Health 

to a financially viable Health Service and is linked to the 

Strategic Plan. 

Northern Health performed well against access targets, 

particularly the success in surgery in 2009/10. The 

recruitment of several highly skilled surgeons assists in 

meeting demands and brings new innovative surgical 

techniques to the community such as Enhanced Recovery 

Programs (ERP) in colorectal surgery. The goal of the 

Enhanced Recovery Program is to minimise the patient’s 

stress response to surgery, reducing individual recovery times. 

Length Of Stay is reduced with resultant cost savings and 

increased bed availability allows more patients to be treated. 

Notwithstanding this, the focus of ERP is always on the 

benefits to the patient. 


Northern Health was first to fully implement a shared 

scanned semi-electronic medical record known as the Clinical 

Patient Folder (CPF). The medical record can be accessed 

via any PC within the network and allows staff to enter 

progress notes electronically. This function is mainly used for 

outpatient attendances. Uptake has increased from 92,565 

electronic progress notes entered in 2008/09 to 224,539 

in 2009/10. Electronic progress notes improve legibility of 

clinical entries and are available 

in real time for all clinical staff. 

Workforce planning is critical to achieve the Northern Health 

objectives. To support health professional students and our 

future workforce the innovative Interprofessional Clinical 

Education (IPCE) program was developed. This program 

facilitates health professionals to work effectively together, 

and is available to penultimate and final year students in 

allied health, medicine and nursing, including community 

health, mental health, private hospitals and practices, aged 

care and rehabilitation facilities. 

Our commitment to Nursing Education continues to grow 

with the expansion and development of the Graduate Nurse 

Program and continued commitment to the development of 

the Nurse Practitioner role across all campuses. 

Melbourne’s first aged care nurse practitioner was endorsed 

in 2010 and is providing vital care to older patients at 

Broadmeadows Health Service. Northern Health has four 

endorsed nurse practitioners practicing in Emergency 

Medicine, Minor Injury and Illness and Aged Care 

Northern Health serves a vibrant and diverse community and 

to meet the needs of our clients and their families, a Cultural 

Responsiveness Framework and Plan has been developed. 

The Framework and Plan aims to increase Northern Health’s 

capacity to effectively respond to the needs of patients 

whose first language is not English. Northern Health has 

also restructured its Transcultural & Language Services 

Department to better respond to an increasing demand 

for languages services. The objective was to centralise and 

standardise language services across our five campuses and 

provide higher quality interpreters and transcultural training. 

Northern Health implemented the Smoke Free policy on 

January 1st, 2010 with all campuses becoming smoke free 

areas. This applies to all patients, staff, visitors, contractors 

and volunteers. The Smoke Free policy is part of Northern 

Health’s commitment to improving the health of people in 

Melbourne’s northern suburbs as well as providing a safe, 

healthy environment for everyone who uses or provides 

our services. 

Protecting the environment is of paramount importance 

to Northern Health and this continues to be a strategic 

priority for the organisation. Through planning and 

practice, including the development of the Northern Health 

Environmental Management Strategy, we are committed 

to ensuring the protection of the environment by keeping 

environmental impacts to a minimum in a sustainable, 

financially rewarding and technically feasible manner. 

I would like to express my sincere gratitude to Dr Sandra 

Hacker, AO for her exceptional leadership and dedication to 

Northern Health during her time as Chair of the Northern 

Health Board. 

Since her appointment as Chair of the Northern Health Board 

in 2005, Dr Hacker has demonstrated great dedication, 

commitment and enthusiasm in leading our organisation. 

Dr Hacker was instrumental in providing strategic guidance 

and in shaping our organisation for the future, as well as 

supporting organisational change and development. 

As Chair of the Northern Health Board, Dr Hacker was 

responsible for a number of significant developments 

at Northern Health. 

I would like to thank the Executive Management team 

who have demonstrated great leadership during some 

extremely challenging times. However, an organisation is 

only as strong as its people and without such a strong and 

committed workforce, we would not have been able to 

achieve so many significant outcomes and I would like 

to express my sincere thanks to the fantastic Northern 

Health team. 

Responsible Bodies Declaration 

I accordance with the Financial Management Act, 1994, 

I am pleased to present the Report of Operations for 

Northern Health for the year ending 30 June, 2010. 

Greg Pullen 

CEO 


The Northern Health Board 

Northern Health Directors, 2009/10 

(Back Row) Brian Joyce; Stephen Black; Steve Hay; Professor Vin Massaro. 

(Front Row) Sue Renkin; Dr Sandra Hacker (Chair); Sabine Phillips; Marilyn Beaumont. 

Absent: Ray Judd 

Dr Sandra Hacker, AO 

Dr Sandra Hacker, AO chairs the Board of Northern 

Health and sits on its Finance, Audit & Risk, Quality and 

Remuneration and Appointments Committees. 

Prior to her Northern Health appointment, she served on 

the Eastern Health Board, as Chair of the Primary Care & 

Population Health Committee and the Quality Committee, 

and as a member of the Finance Committee. 

Dr Hacker is a psychiatrist in private practice, who also works 

as a liaison psychiatrist at the Alfred Hospital Heart/Lung 

Transplant Unit. Her prime area of clinical interest is in severe 

trauma and her clinical work involves mostly long-term 

psychotherapy with adult victims of severe childhood sexual 

assault. 

She is Chair of the Mental Health Research Institute and 

Deputy Chair of the Human Genetics Advisory Committee. In 

September 2009, Dr Hacker was appointed to the position 

of Chair of the Australian Health Ethics Committee. She is 

Deputy Chair of the Human Genetics Advisory Committee, 

a principal committee of the National Health & Medical 

Research Council, and was a member of the National Health 

and Medical Research Council and of the NHMRC Health 

Privacy Working Party. 

She chairs the Cunningham Dax collection of Psychiatric 

Art advisory committee and is a member of the Victorian 

Medical Benevolent Association. She is chairperson of 

the Inner Suburban subdivision of AMA Victoria and is a 

councillor of AMA Victoria. She sits on the health panel in 

Victoria for the Winston Churchill Memorial Trust. 

Dr Hacker is a former chair of the Australian Institute of 

Health & Welfare, is a past president of the AMA Victoria 

and a former federal vice-president of the AMA. She was 

secretary of the Royal Australian & New Zealand College of 

Psychiatrists, and a former College Censor. 

Dr Hacker was appointed an Officer of the Order of Australia 

(AO) in the Australia Day Honours List of 2005 for services to 

the medical profession. Her major non-professional interests 

are her family, opera and classical orchestral music, foreign 

film and literature. 


Mr Stephen Black 

Stephen Black has had extensive senior management and 

operational experience within a diverse range of government 

and statutory bodies as well as within the private sector. 

As Managing Director of a Melbourne-based consulting 

company, he provided management advice to high 

technology telecommunications and ICT ‘start up’ 

companies, utilities and telecommunications carriers. 

Mr Black has held the positions of Director, Forward Planning 

and Director, Strategic Planning within AAPT, having 

previously served as the founding Managing Director of 

United Energy Telecommunications. He has held a number 

of senior executive positions within Telstra including Group 

General Manager, Customer Affairs, and positions within 

the Victorian Government including Chairman, State Tender 

Board, Director of Gaming, Deputy Director-General, Ministry 

of Finance and Deputy Director-General, Housing and 

Construction. 

Mr Black has served as Chairman of Boards controling 

State Government initiatives including the Board of the 

Telecommunications Purchasing and Management Strategy 

(TPAMS) and is currently Chairman of VeRSI, a consortium 

between Melbourne, Monash and La Trobe Universities and 

the Victorian Government to develop e-research in Victoria. 

Ms Marilyn Beaumont 

With a registered general and psychiatric nurse background 

Marilyn Beaumont has extensive experience in management 

and administration, health policy development and analysis, 

women’s health and health consumer rights. 

Ms Beaumont is a member of a number of advisory 

committees to government including the Victorian Women’s 

Correctional Services Advisory Committee and Justice Health 

Clinical Advisory Committee. Amongst a number of previous 

Board positions Ms Beaumont has held, from 2000 to 2009 

she was a member of the Melbourne Health Board. She is 

a current member of the Australian Institute of Company 

Directors. 

Ms Beaumont is the current Women’s Health Victoria 

Executive Director. Between 1987 to 1995 she was Federal 

Secretary - Australian Nursing Federation and prior to that 

for five years ANF South Australian Branch Secretary. 

In 2003 Ms Beaumont was awarded the Australian 

Centenary of Federation Medal and in 2007 she was 

inducted to the Victorian Honour Roll of Women for her 

contribution to women’s health. 

Mr Steve Hay 

Steve Hay has more than 20 years experience in the field of 

real estate. He is currently a director of Northside Landsales. 

A licensed real estate agent and a qualified auctioneer, he 

was born and raised in the north of Melbourne, where he 

still lives. Mr Hay has been instrumental in the successful 

development of the Hayston Valley Estate in Epping, which 

is now home to approximately 1500 residents. Mr Hay has 

a long association with Northern Health, having served on 

the Fundraising Committee of The Northern Hospital for 

more than seven years. 

Mr Brian Joyce 

Brian Joyce is a Certified Practising Accountant and Master 

of Administration (Monash) and has extensive experience in 

Hospitals and Health Services management and financing. 

Until 2008 Mr Joyce was Regional Director of the North 

and West Metropolitan Region of the Department of 

Human Services (DHS). During his career with DHS Mr 

Joyce held a number of senior executive positions including 

Director, Primary and Community Health, Executive Director 

Operations, and Regional Director, Southern Metropolitan 

Region. Mr Joyce also held the position of Deputy Chief 

General Manager of the former State Department of Health. 

Prior to joining the Government Mr Joyce held the positions 

of Finance Director, Box Hill Hospital and Manager, Finance 

and Services, of the Victorian Branch of the Health Insurance 

Commission and Medibank Private. 

Mr Joyce is presently the government appointed part time 

Administrator of Western Education Support and Training 

Network (WestNet), a disability service provider. Mr Joyce 

also undertakes consulting work in the Human Services 

sector. 

Mr Ray Judd 

Ray Judd is the General Manager, Corporate Development 

and Support for Mind Australia. Mind is one of the largest 

non government providers of mental health services. Prior to 

joining Mind, Mr Judd was a Principal with the Nous Group. 

Before joining Nous, Mr Judd had a long career in the 

Victorian Public Service. During that part of his career Mr 

Judd worked in the Department of Human Services in a 

number of senior management roles at policy, program and 

operational levels. Mr Judd also held senior management 

roles in the Department of Premier and Cabinet and the 

Department of Victorian Communities. 

Mr Judd is a Fellow of the Institute of Public Administration 

(Victorian Division). 


The Northern Health Board cont’d... 

Professor Vin Massaro 

Professor Vin Massaro has considerable experience in 

senior management in higher education and health 

institutions, and as a consultant and adviser in Australia and 

internationally. He has also chaired or been a member of 

several boards. 

Professor Massaro is currently Managing Director of Massaro 

Consulting, a company providing strategic advice on higher 

education policy, management and governance, and on 

health workforce planning and training to organisations and 

government departments. 

He has been Chief Executive of the Royal Australasian College 

of Surgeons and was the inaugural Chief Executive of the 

Victorian State Board of Education. He has held senior 

positions at Flinders University and the Lincoln Institute of 

Health Sciences (now the Faculty of Health Sciences at La 

Trobe University). He has also been a consultant on higher 

education to the OECD and is Editor of its international 

Journal of Higher Education Management and Policy. 

Professor Massaro’s Board roles have included the Anti- 

Cancer Foundation of South Australia, the Australian Safety 

and Efficacy Register of New Interventional Procedures 

- Surgical (ASERNIP-s), Flinders Reproductive Medicine, 

Flinders Consulting and the Advisory Board of the Centre for 

International Mental Health at the University of Melbourne. 

He holds a Professorial Fellowship in the Australian Health 

Workforce Institute, a joint Institute of the Universities of 

Melbourne and Queensland, and is a Professorial Fellow 

in the LH Martin Institute for Higher Education Leadership 

and Management and the Centre for the Study of Higher 

Education at the University of Melbourne 

Ms Sabine Phillips 

Sabine Phillips is currently a Principal with Russell Kennedy 

Pty Ltd, a law firm in Melbourne. Ms Phillips has been 

with Russell Kennedy since 2004 and works in the area of 

Health and Aged Care. Ms Phillips has a Master of Laws 

(Legal Practice) and a Master of Business (Organisational 

Behaviour). 

Ms Phillips is also a registered nurse (Division 1) and has 

been a proprietor of aged care facilities. She is a member of 

the Law Institute of Victoria, a Fellow of the Royal Collage of 

Nursing Australia, and an Associate Fellow of the Australian 

College of Health Service Administrators. Ms Phillips is also 

a sessional member of the Victorian Civil and Administrative 

Tribunal on the Occupational and Business List. 

Ms Phillips brings to Northern Health a wealth of experience 

in health and aged care and as a past assessor for the Aged 

Care Standards and Accreditation Agency. 

Ms Sue Renkin 

Sue Renkin has held Chief Executive appointments since 

1984 in health and emergency services industries. Her 

focus has been on the restructure of organisations to 

improve profitability and business growth through business 

development, motivational leadership, change management, 

brand development and strategic vision. 

Ms Renkin commenced her career in nursing, moved into 

hospital management in 1983, and held CEO appointments 

in the hospital sector until 1998. Ms Renkin completed an 

MBA from Monash University in 1995 and has since studied 

Strategic Management at Harvard University in the USA. 

In 1997 Ms Renkin was awarded the Telstra Business Woman 

of the Year Award for the private sector with more than 100 

employees in Victoria and then again for Australia. 

Ms Renkin has been actively involved in government lobbying 

for a period and is currently a community representative on 

the Australian Bravery Council. In addition to her role as Non 

Executive Director at Northern Health, Ms Renkin currently 

holds the Chair of the Clayton Laboratories Advanced 

Imaging Research Centre and the Chair of Monash Centre for 

Green Chemistry and is a member of the Dean of Medicine 

Advisory Board at Monash. 

Ms Renkin was recently appointed Chair of the Southern 

Metropolitan Cemeteries Trust and is a non-executive 

Director for General Practice Victoria and GMHBA Health 

Insurance. 


Corporate Governance 

Appointment of Directors 

Terms of appointment vary from one to three years, at 

an annual salary set by the Minister in accordance with 

guidelines issued by the Office of the Public Service 

Commissioner. Note: Board changes subsequent to the end 

of the financial year were as follows: 

On 30 June 2010 the period of appointment of Dr 

Sandra Hacker, AO expired. Dr Hacker completed six 

years as Board Chair. 

On the recommendation of the Minister, the Governor-in- 

Council appointed Mr Steve Black as Board Chair for 

a period of one year expiring on 30 June 2011. 

On 30 June, 2010, the period of appointment for 

Mr Steve Hay expired. Mr Hay completed three years 

of service. 

On 20 June 2010 the period of appointment for 

Ms Sabine Phillips and Mr Brian Joyce expired. On 

1 July 2010, on the recommendation of the Minister, 

the Governor-in-Council re-appointed Ms Phillips and 

Mr Joyce for a further three year period expiring on 

30 June 2013. 

On 1 July, 2010, on the recommendation of the Minister, 

the Governor-in-Council appointed Mr Ian Dunn and 

Mr Leigh Hocking for a three year period expiring on 

30 June, 2013. 

Role of the Board 

The role of the Board is to exercise good governance in the 

achievement of Northern Health’s stated objectives. Key 

aspects of this governance role include: 

• setting the organisation’s strategic direction; 

• establishing a policy framework (primary policy); 

• appointing the Chief Executive Officer and 

monitoring the performance of the Chief Executive 

Officer; 

• evaluating organisational performance; 

• ensuring organisational accountability and 

compliance with legislative requirements; and 

• evaluation of the Board’s own effectiveness 

in governance The Directors contribute to the 

governance of Northern Health collectively as 

a board through attendance at meetings, of 

which there are 12 per year. Individual contribution 

occurs through participation or chairmanship of 

the various Committees of the Board and between 

Committee meetings they are often approached to 

direct or assist management in the performance of 

their Northern Health functions. 

Directors also give their time to attend significant functions 

and Ministerial events across Northern Health. The Board 

meets monthly, with 12 meetings held in the financial year 

1 July, 2009 to 30 June, 2010. 

Board Meetings & Access to Management 

At these meetings, members of the Northern Health 

Executive regularly present papers on their areas of 

responsibility in the Health Service. Between meetings, 

individual Board members have regular contact with 

management through committee or project involvement 

and are regularly contacted by the Chief Executive Officer 

on major issues. Northern Health comprises five separate 

campuses, and the Directors are encouraged to undertake 

site visits in order to view first hand the activities and services 

provided at hospitals and facilities. 

Delegation of Functions 

The by-laws provide for the delegation of duties by the 

Board, and the Board has approved a detailed Delegations 

Policy enabling designated Northern Health executives to 

perform their duties through the exercise of set authorities. 

The Chief Executive Officer may vary such delegations 

downward during periods when, or in areas where, tighter 

temporary controls are required. However delegated 

authorities cannot be varied upward to the extent that they 

would exceed delegations initially approved by the Board. 

Board Committees 

Directors lend their expertise to the operations of 

Committees of the Board and in this way some of the 

general functions of the Board are delegated to individuals 

or small groups of Directors. During the year the following 

Board Committees comprised the Directors listed: 

Audit & Risk Committee 

Mr Brian Joyce (Chair) 


Dr Sandra Hacker 


In addition to these board members, representatives from 

management also attend meetings of the Audit & Risk 

Committee. 


Corporate Governance cont’d... 

During the year the following staff were in regular 

attendance: 

Mr Greg Pullen (Chief Executive Officer) 

Mr Sam Costanzo (Executive Director, Finance) 

Mr Robert Burnham (Executive Director, Surgical, Obstetrics 

& Paediatric Services) 

Mr Henk de Deugd (Executive Director, Corporate Services) 

A/Prof Kwang Lim (Chief Medical Officer) 

Ms Jennifer Smith (Executive Director, Ambulatory and 

Consulting Services) 

Ms Maree Cuddihy (Executive Director, Business Performance, 

Planning and Workforce & Clinical Governance) 

Ms Robynne Cooke, Executive Director, Medical and 

Continuing Care Services/CNO) 

Ms Jenny Peterson (Quality, Safety & Risk Manager) 

Mr John Delinaoum (Director of Finance) 

Mr Greg Patterson (Financial Controller) 

Meetings were also attended by representatives from 

Northern Health’s internal and external auditors. 

The Audit & Risk Committee assists the Board in fulfilling its 

financial management and related reporting responsibilities 

for Northern Health including compliance with laws and 

regulations, the maintenance of an effective and efficient 

audit system and the maintenance of ongoing relationships 

with Northern Health’s auditors. 

Finance Committee 

Mr Stephen Black (Chair) 


Prof Vin Massaro 


During the year the following staff were in regular 

attendance: 


Mr Sam Costanzo (Executive Director, Finance) 









Ms Robynne Cooke, (Executive Director, Medical and 


Mr John Delinaoum (Director of Finance) 

Mr Greg Patterson (Financial Controller) 

Education & Research Committee 

Mr Ray Judd (Chair) 

Ms Sue Renkin 


Mr Steve Black 

In addition to these Board Members, the Committee 

comprises the following members: 









Ms Robynne Cooke (Executive Director, Medical and 


Ms Robyn Smith, HSM Allied Health Learning & Research 

Prof. Judy Savige (University of Melbourne representative) 

Prof. Keith Hill (LaTrobe University representative) 

The Education & Research Committee was established 

at the beginning of 2002 and exists to advise the Board 

regarding the educational requirements of all Northern 

Health employees. The Education & Research Committee 

has linkages to the Quality Committee in terms of receiving 

recommendations relating to educational activities, training 

and monitoring requirements identified by the Quality 

Committee. The Education & Research Committee meets 

every third month. 


Quality Committee 

Ms Sabine Phillips (Chair) 




In addition to these Board Members, the Committee 









Ms Robynne Cooke (Executive Director, Medical and 



Dr Graeme Duke (Chair, Clinical Outcomes Review 

Committee) 

Ms Jenny Peterson (Quality, Safety and Risk Manager) 

Prof. Judy Savige (Professor, Department of Medicine) 

The Quality Committee meets every second month and 

assists the Board in fulfilling its responsibilities in relation 

to the promotion and maintenance of quality of care in the 

delivery of clinical and non-clinical services. This is done in 

accordance with the Northern Health Quality Plan. 

To assist in the implementation of the plan, the Committee 

has also established a system of feedback and evaluation of 

quality across Northern Health ensuring appropriate action is 

taken to address any issues identified. 

Remuneration & Appointments Committee 

Mr Ray Judd (Chair) 




The Remuneration & Appointments Committee meets 

quarterly or as required. Its functions are to ensure that 

remuneration policy is compatible with Northern Health’s 

strategic goals in both its objective and implementation, to 

oversee any remuneration review, and to recommend to the 

Board appropriate salary and contractual arrangements for 

senior staff. In attendance at each meeting are: 


Mr Roger Nicholls (Director, Human Resources) 

Community Advisory Committee 

Mr Steve Hay (Chair) 

Mr Ray Judd 

Ms Sue Renkin 


In addition to these Board members, the Committee 



Cr K. Pavlidis (Community Member) 

Ms P. Church (Community Member) 

Mr L. Thrasis (Community Member) 

Mr I. Brown (Community Member) 

Mr P. Smith (Community Member) 

Resigned February 2010 

Mr J Makaronis (Community Member) 

Resigned April 2010 

Mr G. Roberts (Community Member) 

Ms D Sterjovska (Community Member) 

Ms Z Yesilyurt (Community Member) 

Ms V Goodwin (Community Member) 

Commenced October 2009 

Ms D Sleiman (Community Member) 

Commenced August 2009 

Ms Sally Delaney (Community Member) 

Commenced April 2010 

Mr S Costanzo (Executive Director Finance) 

Ms M Cuddihy (Executive Director Business Performance) 

The Northern Health Community Advisory Committee has 

been meeting on a bi-monthly basis. The purpose of the 

Committee is to advise the Board on strategies to enhance 

and promote consumer and community participation at all 

levels within the Health Service. 


Corporate Governance cont’d... 

The Committee seeks to enhance the Board’s ability to 

advocate on behalf of the communities served by Northern 

Health. The Committee was resourced by Ms Eileesh Diviney 

(Manager, Partnerships) until October 2009, then by Mr 

Gerry O’Donnell (Manager, Partnerships). 

Primary Care And Population Health 

Advisory Committee 

Ms Marilyn Beaumont (Chair) 

(Commenced September 2009) 

Mr Steve Hay 

Mr Brian Joyce (Commenced September 2009) 

Ms Sue Renkin (Commenced September 2009) 

In addition to these Board members, the Committee 



Dr J. Fraser (Divisions of General Practice) 

Resigned September 2009 

Ms K O’Donnell (Primary Care Partnerships) 


Ms F. Hearn (Royal District Nursing Service) 

Ms Gabrielle MacTiernan (Community Health) 

Mr Russell Hopkins (Local Government) 


Ms Belgin Besim (Local Government) 

Commenced March 2010 

Ms Robyn Humphries (Specialist Service – Mental Health) 

Ms Sandy Austin (Dept of Human Services) 

Mr Phillip Bain (non-GP, Divisions of General Practice) 

Ms Maree Cuddihy (Executive Director, Business Performance) 

Commenced March 2010 

Ms Jenni Smith (Executive Director, Ambulatory & Consulting 

Services) 

Mr Tim O’Leary (Planning For A Healthier North) 

The Primary Care & Population Health Advisory Committee 

has been meeting on a bi-monthly basis. It has been 

established to assist the Board to play a complementary 

role in interagency planning. Its role is to also assist with 

the integration of the health services in the catchment 

area, particularly with regard to the primary care and acute 

sectors. It will assist the Board in identifying community 

health needs with a view to establishing innovative programs 

to improve the accessibility and responsiveness of Northern 

Health services. 

This will include direct service partnerships with other health 

and community services, commissioning research in relevant 

areas and working in partnership with other local agencies 

on health promotion schemes. The Committee was resourced 

by Ms Eileesh Diviney (Manager, Partnerships) until November 

2009, then by Mr Gerry O’Donnell (Manager, Partnerships). 

DIRECTOR’S ATTENDANCE FOR MEETINGS – 1 JULY 2009 – 30 JUNE 2010 

Board 

Community 

Advisory 

Committee 

Remuneration 

and 

Appointments 

Committee 

Board 

Quality 

Committee 

Primary 

Care and 

Population 

Health Advisory 

Committee 

Finance 

Committee 

Audit and Risk 

Committee 

Education and 

Research 

Committee 

Academic and 

Research 

Steering 

Commitee 

Total 

No. of Meetings 

12 

6 

3 

6 

4 

12 

6 

4 

7 

60 

Sandra Hacker 

Vin Massaro 

Ray Judd 

Sabine Phillips 

Marilyn Beaumont 

Brian Joyce 

Sue Renkin 

Stephen Black 

Steve Hay 

(Reappointment 

unconfirmed during 

Jul/Aug) 

12 

11 

11 

12 

11 

12 

11 

11 

8 

6 

4 

3 

6 

3 

3 

2 

2 

4 

6 

6 

4 

2 

(from Sept 2010) 

2 


2 


1 

11 

12 

11 

11 

3 

3 

3 

3 

2 

4 

0 

2 

2 

4 

7 

33 From a 

possible 39 

31 From a 

possible 34 

26 From a 

possible 32 

23 From a 

possible 27 

21 From a 

possible 28 

28 From a 

possible 34 

16 From a 

possible 26 

33 From a 

possible 44 

22 From a 

possible 29 


Executive Team 

Mr Greg Pullen, 

Chief Executive Officer 

MHA GD HSM B.Bus (accounting) 

Greg Pullen is the Chief Executive Officer of Northern Health. Before joining Northern Health he was the 

CEO of Goulburn Valley Health, the regional referral hospital for north-eastern Victoria. 

Mr Pullen’s professional memberships include Associate Fellow of the Australian College of Health 

Service Executives (AFCHSE), Fellow of the Australian Society of Certified Practising Accountants (FCPA), 

Associate Fellow of the Australian Health Services Financial Management Association (AHSFMA). 

Mr Robert Burnham, 

Executive Director, Surgical, Obstetrics and Paediatric Services 

RN, RM, Crit Care, Bch App Sc (Admin), Grad Dip, (Hlth Admin), MHA, AFACHSE 

As the Executive Director Surgical, Obstetrics and Paediatric Services, Robert Burnham brings with him 

more than 30 years of acute health care experience. Mr Burnham built on his nursing background 

with a Bachelor of Applied Science (Health Administration), a Graduate Diploma of Health Services 

Management and a Masters of Health Services Management. 

Mr Burnham served at the former Preston & Northcote Community Hospital and Prince Henry Hospital 

in various capacities including Associate Director of Nursing Human Resources, Director (Nursing) 

Surgical Services, Chief Nursing Officer, Operations Director (Obstetrics, Paediatrics and Surgery) and 

General Manager of The Northern Hospital. 

He was also the Chair of The Northern Hospital Relocation Consultation Committee, given the task of 

establishing The Northern Hospital in Epping, relocating from the PANCH site in Preston. Mr Burnham 

was also a member of the DoH Patient Management Task Force that reviewed acute health services in 

metropolitan hospitals and the DoH Patient and Client Management Information Systems Committee, 

which was responsible for the selection and implementation of a common patient information system 

across health services in Victoria. 

Mr Burnham is currently a member of the Intensive Care Advisory Committee which advises and informs 

the DoH on critical care policy matters. 

Ms Robynne Cooke, 

Executive Director Medical and Continuing Care 

RN, Ba Nursing, Grad Dip(Gerontology) MHSM, MRCNA 

Robynne Cooke is currently the Executive Director of Medical and Continuing Care Services and also 

the Chief Nursing Officer for Northern Health. Ms Cooke commenced at Northern Health in 2008 

as the Director of Nursing and Director of Operations at Bundoora Extended Care Centre. Ms Cooke 

has worked previously at Melbourne Health as a Director, the Department of Human Services and 

also Austin Health. She currently represents Northern Health on the acute medical inpatient advisory 

committee and is also a member of the Metropolitan Health Services Nurse Executives Group. Ms Cooke 

is a member of the Royal College of Nursing Australia. 

Mr Sam Costanzo, Executive Director, Finance, 

Client Data Management and Corporate Communications 

B.Bus (accounting) CPA 

Sam Costanzo joined Northern Health in April 2005, and has been working in the public healthcare 

system since 2001. Mr Costanzo previously worked with Western Health (2001- 2005), TXU (formerly 

Westar Pty Ltd) (1999-2001), Westar Pty Ltd (formerly Gas & Fuel) (1997- 1999) and Whittlesea City 

Council (1994-1997). Mr Costanzo is a member of CPA Australia. 

In his current role he is responsible for financial governance and oversight in support of the CEO. 


Executive Team cont’d... 

Ms Maree Cuddihy, 

Executive Director Business Performance, Workforce Planning and Clinical Governance 

RN, RM, Grad Cert Onc, BN, Grad Dip Nurs Admin, M.Bus (Mgt) 

Maree Cuddihy has worked in the public sector since she qualified and has a strong knowledge of, 

commitment to, and enthusiasm for healthcare in general. 

She has senior experience in large and small complex organisations, in both clinical and support 

positions. In her current role she is responsible for critical strategic level support to the CEO and senior 

management and has responsibility for Human Resources, Clinical Governance, Planning and Redesign. 

Mr Henk de Deugd, 

Executive Director Corporate Services 

MBus, BEng, Grad Dip Maintenance Management Grad Dip Education, SMIE Aust, 

Chartered Professional Engineer, NPER. 

Henk de Deugd joined Northern Health in late 2006. Prior to taking up his role as Executive Director, 

Corporate Services, Mr de Deugd was the Director, Facilities and Infrastructure at the Royal Children’s 

Hospital, Melbourne. Earlier in his career he worked in the telecommunications industry as a design and 

plant engineer. 

This was followed by a time in the education sector, mainly teaching telecommunications and power 

industry trainees. Although Mr de Deugd has worked for most of his career in the health sector, he 

took the opportunity to complement his health experience to work for some time as an electrical 

engineering consultant in the pharmaceutical, defense, education and health fields. In health, he has 

worked in sub-acute, women’s and children’s, and regional hospitals. Mr de Deugd is currently the 

National President of the Institute of Hospital Engineering Australia. 

Ms Jenni Smith, 

Executive Director Ambulatory and Consulting Services, Chief Allied Health Officer 

B App Sci (Phyth), Grad Dip Physiotherapy (Research) 

Jenni Smith commenced with Northern Health in 2002 and was appointed to the position of Executive 

Director of Ambulatory & Consulting Service in 2009 and Chief Allied Health Officer in 2010. She has 

an extensive background in the delivery of healthcare services in both the public and private sectors 

and has served on numerous industry and professional committees. This experience has included the 

development and implementation of sustainable quality improvement systems and appropriate clinical 

governance structures in healthcare environments. 

Recent publications and presentations have included integration of interprofessional clinical practices, 

undergraduate clinical education, work role design/substitution and work force development. 

Associate Professor Kwang Lim, 

Chief Medical Officer 

Associate Professor Kwang Lim joined Northern Health in 1999. Associate Professor Lim was appointed 

Chief Medical Officer in 2010 and is also the Clinical Director, Medicine. He is an Associate Professor in 

Medicine at Melbourne University as well as a Fellow of the Australian College of Physicians in Geriatric 

and General Medicine. Associate Professor Lim has previous obtained a medical doctorate related to 

health services research and currently has research interests in aged care and health services delivery. 


Organisation Structure 

Northern Health Board 

Chief Executive Officer 

Greg Pullen 

Chief Nursing Officer 

Robynne Cooke 

Chief Medical Officer 

Associate Professor Kwang Lim 

Chief Allied Health Officer 

Jenni Smith 

Executive Director 

Medical & Continuing 

Care 

Robynne Cooke 


Ambulatory & Consulting 

Services 

Jenni Smith 


Surgical, Obstetrics 

& Paediatrics Services 

Robert Burnham 


Corporate Services & 

IM & ICT 

Henk de Deugd 


Business Performance, 

Planning, Workforce * 

Clinical Governance 

Maree Cuddihy 


Finance, Client Data 

Management, Corporate 

Communications 

Sam Costanzo 

Director 

Emergency 

Services 

Dr Helen Stergiou 

Operations Director 

Community Services 

Jenelle Linton 

Diagnostic Services 

Robert Burnham 

Chief Information 

Officer 

Bill O’Brien 

Director Human 

Resources 

Roger Nichols 

Director 

Finance 

John Delinaoum 


Medicine 

Maree Glynn 


Ambulatory Services 

Sandy Capron 


Surgery DON 

Christine Lamotte 

Director 

ICT – Infrastructure 

Manager 

Quality, Clinical 

Governance & Risk 

Jenny Peterson 

Director 

Client Data 

Management 

Terri Letizia 

Clinical Service Director 

Medicine & Continuing 

Care 

Associate Professor 

Kwang Lim 


Outpatient & Specialist 

Consulting Clinics 

Gillian Dickman 

Clinical Service 

Director – Surgery 

Dr Neil Strugnell 

Director 

ICT– Applications 

Director 

Strategic & Service 

Planning 

Oliver Furness 

Director 

Corporate 

Communications 

Emma Diffen 


Inpatient Services/ 

DON- Site Manager 

BECC 

Mark Aitken 


Inpatient Services/ 

DON – BHS 

Marie Mohr 

Craigieburn Health 

Service 


O&G, Paeds & ED 

Fiona Middleton 

Clinical Service 

Director 

Dr Simon Hauser 

Paediatrics 

Director 

Facilities Management 

Sharon McNulty 

Director 

Capital Planning 

& Development 

Brian Pope 

Manager Partnerships 

Gerry O’Donnell 

Advanced Care Planning 

Anne Marie Fabri/ 

Barbara Hayes 

Clinical Service Director 

O&G 

Dr Alex Teare 

Director 

Engineering 

& Building Services 

Colin Woodward 

Director Pharmacy 

Peter Stuchbery 


Our Services 

Northern Health is one of the busiest health services 

in Victoria. 

Every week, on average: 

5000 patients are treated at a Northern Health campus. 

46 babies are born at The Northern Hospital and 47 children 

receive treatment in our paediatric unit. 

Our Hospital in the Home service visits 22 patients in 

their home while more than 1750 patients are referred to 

a Northern Health service by their GP. 

320 patients come to our Emergency Department at 

The Northern Hospital by Ambulance and close to 1300 

patients are treated in our Emergency Department. 

We perform almost 100 emergency operations and more 

than 200 elective procedures. 

Across Northern Health we treat people born in more than 

130 different countries and our in-house interpreting services 

provide assistance to a range of patients for whom English is 

not their first language. 


Admitted Patients & Emergency 

$207.8m 

Medicine & 

Continuing 

Care 

General Medicine 

General Surgery 

Specialist Medicine 

Specialist Surgery 

Emergency 

Day Surgery 

& 

Day Medical 

587 beds 

Paediatric 

Intensive Care, 

Aged Care 

Medicine 

High Dependency, 

Rehabilitation 

& Surgery 

Coronary Care 

Palliative Care 

Geriatric 

Evaluation 

& 

Management 

Obstetrics, 

Gynaecology 

& Neonatology 

Business 

Performance, 

Planning, 

Workforce 

Surgery, 

Obstetrics & 

Paediatrics 

8 operating 

theatres 

Finance and 

Corporate 

Services 


Our Services cont’d... 

Outpatients & Ambulatory 

$67.2m 

Community 

Therapy 

Services 

Diabetes 

Services 

Hand 

therapy 

Psychology 

and 

Neuropsychology 

Occupational 

Therapist 

Music 

Therapy 

Adult 

Rehabilitation 

Social Work 

Ambulatory 

& 

Consulting 

Services 

Volunteers 

Chronic Wound 

Service 

Specialists 

Consulting 

Rooms 

Harp Services 

Planned Activity 

Group 

Community 

Services 

Orthotist 

Podiatry 

Day Activity Centre 

Physiotherapy 

Speech Therapy 

Business 

Performance, 

Planning, 

Workforce 

Finance 

and 

Corporate 

Services 


Other Services 

$30.9m 

Finance 

Services 

Retail Services 

Capital 

Programs 

Corporate 

Services 

Depreciation 

Special 

Purpose 

Funds 


Our achievements 

Strategic Goal 1 

A healthier northern community through 

the delivery of quality health services 

Northern Health has a strong and integrated approach to 

quality service provision ensuring good patient outcomes 

and a reduction in clinical risk. Northern Health continues 

to deliver quality health services by continuing to enhance 

our programs and services. This activity continues despite the 

increasing demand on services. 

Clinical Services and Master Planning 

Northern Health undertakes strategic clinical services 

planning in response to increasing or changing demand for 

services. The outcomes from this have been rapidly translated 

into strategic master planning with predicted outcomes 

being 50% increase in services over the next five years and 

100% increase in services over the next 10 years. 

In addition to strategic clinical services planning, the 

Redesigning Care program was established to deliver service 

improvement and build health service capability. Northern 

Health’s Redesigning Care team has successfully completed 

three projects funded by the Department of Health and 

designed to ensure patient and family centred care. 

‘Smooth Operations: enhancing the surgical patient journey’ 

has led to reductions in non-elective patient postponements, 

reductions in Length Of Stay and improved systems for 

pre-admission, elective admissions and unplanned surgery. 

‘Redesigning the Non-admitted emergency patient journey’ 

supported the establishment of the Rapid Intervention and 

Treatment Zone (RITZ) in the Emergency Department which 

has improved access and care for non-admitted patients. 

Patients treated in the RITZ are now seen in a more timely 

fashion reducing wait times for all patients 

The ‘Improving the MAPU Experience’ project focused 

on improving ward level communication for our Medical 

Assessment and Planning Unit. Staff in these roles now 

spend more time directly with patients and supporting 

staff, and the number of MAPU patients discharged prior 

to a 48 hour Length Of Stay has improved. 

The Redesigning Care team is currently undertaking a major 

project aimed at improving care for General Medicine 

patients, this project aims to streamline care for the largest 

cohort of admissions to the hospital improving efficiency and 

patient outcomes by reducing delays and wait times. 

Data driven improvement 

Northern Health utilises data from a range of sources to 

identify opportunities for improving the quality of care we 

deliver. These include external organisations such as the 

Health Roundtable, which has identified opportunities for 

improvement around two major diagnostic related groups 

(DRGs) – respiratory patients and orthopaedic procedures. 

Respiratory Care 

In late 2009 Northern Health’s average Length Of Stay (LOS) 

was 5.6 days, which presented an opportunity to save up to 

600 bed days by achieving the Length Of Stay of the state’s 

exemplar hospitals (4.6 days). 

Practice changes which led to substantial reduction in Length 

Of Stay include: 

• improved discharge planning with the revision of the 

daily bed management meeting; 

• a revised medical model reducing the patient workload 

of our medical workforce; 

• better access to sub-acute beds has reduced delays for 

patient transfer between Northern Health campuses; and 

• the establishment of a patient journey board in the 

Medical Assessment Planning Unit (MAPU) increasing 

referral response times for allied health staff. 

Data collected in March 2010 identified an average Length 

Of Stay of 4.9 days, an improvement of 14% equating to 

a saving of more than 420 bed days (annualised). 

Orthopaedic procedures 

Three new initiatives were implemented in 2009 to reduce 

the length of stay for acute orthopaedic patients: 

• implementation of an Orthopaedic Rehabilitation in the 

Home (RITH) program where appropriate patients are 

discharged at day three or four and with ongoing care 

provided in the patient’s home. This service enables 

early discharge of patients (hip replacements, knee 

replacements, fracture necks of femurs and a few other 

orthopaedic conditions), prevents unnecessary inpatient 

rehabilitation bed admissions, and supports patients’ 

recovery at home; 

• introduction of the Risk Assessment and Prediction 

Tool (RAPT) to pre-admission clinic for elective joint 

replacement surgery patients. The patient answers 

six simple questions included in the RAPT. A score 

determines the likelihood of the patient discharge 

destination. A score of 6+ indicates suitability for 

RITH; and 

• existing orthopaedic clinical pathways for elective joint 

replacement patients were modified to monitor and 

reduce Length Of Stay. Major changes included a LOS 

objective of five days, improved clinician guidelines and 

RAPT and RITH integration. 


Enhanced Recovery After Surgery (ERAS) 

Northern Health is one of the first health services in Victoria 

to introduce a new approach to surgery called the Enhanced 

Recovery After Surgery program for patients undergoing 

bowel surgery. A specialist team of doctors, nurses, dieticians 

and physiotherapists will care for the patient throughout the 

journey of preparing for, undergoing and recovering from 

surgery. The program encourages the patient to be an active 

member of the treating team. 

This new approach means that patients fast for less time 

prior to surgery, have fewer tubes for a shorter period of 

time, are able to eat and drink sooner and are up out of bed 

and walking earlier. As patients feel more normal and better 

sooner, they have a shorter recovery time and are able to go 

home from hospital sooner. Patients are telling us that they 

are “pleasantly surprised by how they feel after their surgery” 

as they were expecting to “feel very unwell after a major 

operation.” 

This new approach is changing the way specialist teams 

and patients view having major bowel surgery. In the future 

Northern Health will look into how this approach may be of 

benefit to patients undergoing other types of major surgery. 

Improving care for stroke sufferers 

Northern Health has been actively undertaking initiatives 

to improve stroke services care in line with the Stroke Care 

Strategy for Victoria (2007). The implementation of the 

Strategy has been supported by the Victorian Stroke Clinical 

Network (VSCN) which has government commitment 

for $5million over four years. Northern Health has been 

fortunate to have a Victorian Stroke Clinical Facilitator 

in post at 0.5 EFT since mid 2008 to implement the 

recommendations of the strategy. 

Caring for new families 

Antenatal clinics, led by midwives are now in place at The 

Northern Hospital, Broadmeadows Health Service and 

Craigieburn Health Service. Antenatal attendances have 

increased by 8% at Broadmeadows Health Service and by 

20% at Craigieburn Health Service. These clinics provide 

important information for new mothers on what to expect 

in those critical first weeks after the birth of their baby, 

assistance and advice with breastfeeding and caring for 

their baby. 

Hand Hygiene 

It is estimated that each year in Australia, there are 

approximately 200,000 healthcare associated infections. 

These infections contribute to prolonged hospital admissions 

and can cause significant harm to the patient. Healthcare 

associated infections also put pressure on hospital financial 

resources with a single outbreak potentially costing an 

organisation up to $170,000. Many of these infections are 

preventable. 

Northern Health has participated in the Victorian Department 

of Health Hand Hygiene program since 2006. The program 

has now expanded to become Hand Hygiene Australia. 

Audits are conducted in six wards to measure compliance, 

with the results of the audits reported to the Department 

of Health and Hand Hygiene Australia. Northern Health’s 

compliance rate is 85%, well above the Department of 

Health’s overall target of 60% compliance. 

Review of nursing education and the Nurse 

Practitioner role. 

A review of nursing education across Northern Health 

resulted in an agreed organisation wide approach to Nursing 

and education. An evidence based review of nursing 

education programs was undertaken to determine whether 

existing courses and programs are meeting the needs of staff. 

The role of the nurse practitioner role was reviewed and in 

a first for metropolitan Melbourne and Northern Health, 

the Nurses Board of Victoria endorsed Cheryl Donohue as 

an Aged Care Nurse Practitioner. Based at Broadmeadows 

Health Service, Ms Donohue’s endorsement builds on her 

25 years of nursing experience to deliver high quality, 

specialised care to older patients. Nurse Practitioners at 

Northern Health play an important role in the community by 

delivering more immediate access to required services while 

being a role model to their peers. 

As an Aged Care Nurse Practitioner Ms Donohue is able 

to provide a comprehensive geriatric nursing assessment 

to diagnose common clinical conditions in older people 

who don’t fit into discrete categories, such as changes in 

cognition, mobility, incontinence and nutritional status. 

This may include the treatment of acute health problems 

within her scope of practice, prescription of medications 

from an approved medication formulary and admit and 

discharge patients from Northern Health campuses. Of 

the 55 Nurse Practitioners in Victoria, four are working at 

Northern Health campuses. 

Utilising technology 

Northern Health was the first Victorian health service to fully 

implement a shared scanned semi-electronic medical record 

known as the Clinical Patient Folder (CPF). The medical 

record can be accessed via any PC within the network and 

allows staff to enter progress notes electronically. This 

function is mainly used for outpatient attendances. 


Our Achievements cont’d... 

Uptake has increased from 92,565 electronic progress notes 

entered in 2008/09 to 224,539 in 2009/2010. Electronic 

progress notes improve legibility of clinical entries and are 

available in real time for all clinical staff. 

The Northern Health Records Management policy was 

reviewed in light of the changes to the Evidence Act 2008 

and the destruction of scanned documentation. 

Northern Health was successful in its submission to be 

part of a statewide implementation of PROMPT (Protocol 

Management and Production Tool) and commenced 

the project in December 2009. PROMPT is a web based 

document management system used to store, search and 

facilitate the review of policies and procedures across the 

organisation. The system went ‘live’ in May 2010 enabling 

all staff to access both Northern Health and local level 

(campus & departmental) policies & procedures from an 

icon on their desk top. PROMPT provides Northern Health 

with improved document management systems, improved 

search function allowing easy access and retrieval of policies 

& procedures and improved capacity for learning through 

sharing of best practice documents and guidelines (both 

within Northern Health and with other health services). 




building corporate capability (Finances, 

Infrastructure, Reputation) 

Corporate capability supports effective and efficient service 

provision. Building corporate capability in terms of finances, 

infrastructure and reputation is a strategic priority for 

Northern Health and the maintaining a strong corporate 

base provides the foundation required to deliver quality 

health services. 

Northern Health became one of the first public health 

services in Victoria to receive Australian Council on 

Healthcare Standards (ACHS) Corporate Accreditation 

in 2009. 

At organisational wide survey the Northern Health’s 

campuses achieved 17 Extensive Achievements. The criteria 

relating to ‘care of dying’ was found to be an example of 

very good practice, and Northern Health also achieved an 

Outstanding Achievement rating for work undertaken in the 

area of Culturally and Linguistically Diverse (CALD) needs. The 

surveyor felt the work was exceptional and recognised that 

Northern Health considered the CALD community served by 

the organisation as an important part of core business. 

Review of Governance Structure 

Governance arrangements within Northern Health are 

overseen by the Northern Health Board and CEO, who 

work closely with six Executive Directors. The Northern 

Health Strategic Plan and annual Budget Plan guide decisionmaking 

and actions as we strive to achieve our strategic and 

operational goals and fulfill our obligations for funding and 

service to our community. The recently appointed CEO and 

Executive Directors, in close partnership with Operational 

and Clinical Service Directors, work with a clear focus on 

both financial governance and clinical service provision 

obligations. 

At Northern Health, our Quality and Clinical Governance 

Framework ensures that the care we provide to our patients 

is monitored, that risks are minimised and that the quality 

and safety of services is continuously improved. 

Northern Health is keen to publish results, share with other 

organisations and benchmark performance. Northern 

Health has been acknowledged for its leadership in the 

implementation of the national best practice guidelines 

for VTE. 

Northern Health was awarded the National Institute of 

Clinical Studies ‘Action In Research’ Award in November 

2007 and in February 2010 members of the UK National 

Health Service Medical Directors Venous Thromboembolism 

Prevention Team visited to discuss the program and how the 

VTE prevention results had been sustained. 

Northern Health actively reviews quality and patient safety 

indicators. All patient safety indicators are monitored using 

Six Sigma Control Charts and current data exceeds the 

benchmark or falls within the confidence limits. 

Financial Performance 

Northern Health had the largest financial turnaround of the 

22 monitored health services in Victoria during 2009/10, 

improving from an operating deficit of $9.85m in 2008/09 

to only $1.14m in the 2009/10 financial year. 

This has been in conjunction with the achievement of the 

majority of clinical service targets. A significant highlight 

is the improvement in the final quarter performance 

monitoring score from 51 out of 100 for the last quarter of 

2008/09 to 83 in the last quarter of 2009/10. 

Underpinning this financial recovery is the three year 

Northern Health Financial Recovery Plan (2009-2012). 

This plan details strategies to return Northern Health to a 

financially viable Health Service and is linked to the Strategic 

Plan. Monthly executive performance meetings ensure 

ongoing accountability and monitoring against targets. 

In collaboration with the senior medical staff, Northern 

Health has increased its private practice revenue by $1m in 

2009-10 compared to the 2008-09 financial year. Proceeds 

from private practice revenue now exceed $2.56m and 

examples of reinvestment of those funds include: 

• Broadmeadows Health Service endoscopy service 

purchasing a double-balloon enteroscopy and capsule 

endoscopy equipment; and 

• Dermatology outpatient service having access to vital UV 

therapy equipment. 



A review of the use of agency and bank nursing staff was 

undertaken with the development of an organisation wide 

approach to the casual workforce as well as a reduction in 

expenditure in this area. An extensive review of the nursing 

roster system resulted in the improvement and development 

of the electronic rostering system. 

Northern Health was one of the first health services to 

join Health Purchasing Victoria an independent statutory 

authority which was formed to improve the collective 

purchasing power of Victorian public hospitals and 

health services and to achieve ‘best value’ outcomes in 

the procurement of health related goods, services and 

equipment. Health Purchasing Victoria works in partnership 

with public hospitals and health services in order to 

understand their requirements, facilitate large scale tenders 

and manage common use contracts on behalf of the state. 

Improving infrastructure to care for our community 

Northern Health has continued to build new facilities 

and increase services to meet the needs of our growing 

community. 

The Strategic Master Plan and Feasibility Study for the 

redevelopment of The Northern Hospital is proceeding and 

Northern Health has prepared the Strategic Clinical Services 

Plan, Model of Care and Functional Brief documentation 

which have been endorsed by the Department of Health. 

The $29.6m Short Stay and Mental Health Projects are 

nearing completion with the opening of the Short Stay Unit 

in August 2009. This project also included the upgrade of 

The Northern Hospital’s core infrastructure services and car 

parking facilities. 

The $2.5m, six bed extension to the Maternity Ward at The 

Northern Hospital has been completed with the additional 

beds to be commissioned in 2010/2011. This expansion 

will provide increased capacity to deliver an additional 500 

babies each year. 

Northern Health has provided assistance to Plenty Valley 

Community Health in the design and development of the 

GP Super Clinic at South Morang. 

Design and documentation is proceeding on the $7.4m 

Cardiac Catheter Suite and the $6.2m redevelopment of The 

Northern Hospital front entrance. These projects are planned 

to be completed between 2011 and 2012. 

Caring for the community and the environment 

Northern Health acknowledges the importance of protecting 

environmental values as part of a global community and 

within its vision of creating a healthier northern community. 

Through its planning and practice, Northern Health is 

committed to ensuring the protection of the environment 

by keeping environmental impacts to a minimum in a 

sustainable, financially rewarding and technically feasible 

manner. This includes: 

• confirmation that Northern Health sees improving the 

environmental sustainability of its operations, planning 

processes, policy and procedural development as a core 

organisational goal and a general statement of how it is 

striving to achieve this – for example, by implementing 

a formal environmental management program, an 

environmental management policy and specific actions; 

• identifying the benefits that Northern Health has 

already achieved through implementing environmental 

management actions including reduced operational 

costs, reduced energy and water consumption and 

effective risk management; 

• designing an Environmental Management Strategy (EMS) 

which demonstrates what Northern Health is already 

doing and what it proposes to undertake to reduce 

impacts in its range of operations, planning, policy and 

procedural development; 

• recognition that meeting the challenge posed by 

climate change and other environmental issues is 

the responsibility of all government agencies and the 

important role the CEO must play in guiding the growth 

of Northern Health if this challenge is to be met; 

• commitment to the principle of continuous improvement 

in environmental management and that this strategy 

provides a basis upon which to build into the future; and 

• recognition of links between environmental sustainability, 

climate change and human health. 

Northern Health joined the Ecobuy program and is 

recognized as a leader in environmental management 

particularly around our work on water savings and waste 

management. Northern Health has reduced landfill by 33%, 

increased recycled waste by 32% and further reduced our 

water consumption by more than 30%. We have reduced 

our carbon footprint by 873kg by installing ‘smart trash’ 

meters and implemented electronic systems to replace paper 


ased systems which in turn have reduced general office and 

confidential paper disposal by 34%. 

Staff are also encouraged to actively participate in not 

only creating a healthier northern community, but also 

creating a healthier environment through education about 

environmental initiatives. 

Creating awareness of our facilities and services 

Promoting the service provided by Northern Health to the 

community we serve is of paramount importance. Providing 

information to the community utilising state and local 

newspapers, television and radio to inform the community in 

an ongoing activity performed across Northern Health. 





improving the consumer experience 

Meeting the health needs of consumers is the key driver 

for Northern Health. The experience that consumers have 

when they access Northern Health is a vital component of 

the delivery of high quality and effective care. Northern 

Health will continue to improve the consumer experience in 

the context of growing and evolving needs and expectations 

within our community. 

Working with the community we serve 

“Doing it with us not for us” is the Victorian government’s 

policy on consumer, carer and community participation in 

the health care system. The Strategic Directions 2010 – 2013 

document builds on the policy’s first term, and contains 

standards which guide consumer participation across 

Northern Health. 

Northern Health’s Community Participation program is 

driven by the Community Advisory Committee (CAC), which 

meets bi-monthly, is a formal sub committee of the Northern 

Health Board. This robust committee has 11 consumer 

representatives, four members of the Northern Health Board, 

the CEO and two Executive Directors. 

The Northern Health Board has endorsed the current 

Community Participation Plan 2009 – 2012, which was 

developed and is overseen by the CAC. Northern Health also 

has a Community Participation Policy. The Northern Health 

Consumer Participation program extends across a broad 

range of activities, from patients being actively involved in 

their own care to consumer representatives providing advice 

to the Board regarding consumer participation. 

The Community Advisory Committee is involved with the 

review of information developed for consumers and the 

broader community as well as having input into education 

and training initiatives and projects. 

The Community Participation program has also conducted 

regular tours for members of Culturally and Linguistically 

Diverse communities, in partnership with the local Migrant 

Resource Centre, to orientate people to our services. 

Responding to Cultural Diversity 

Northern Health is strongly committed to its Culturally and 

Linguistically Diverse (CALD) communities. Our diverse 

community is made up of residents born in more than 180 

countries, who speak more than 130 languages. To better 

address the needs of the different migrant communities, 

Northern Health created the Transcultural & Language 

Services (TALS) Department. 

TALS has implemented strategies to develop a centralised 

service and booking mechanism, improve local access to 

quality interpreters and introduce specific transcultural 

training for Northern Health staff to increase the use of 

interpreters. As well as meeting the increased needs of the 

Health Service, the TALS department usage hours increased 

from 21,823 occasions of service (2008) to 32,089 occasions 

of service (2009). The centralised booking and activity 

database has maximized efficient use of interpreters’ time 

and improved response times for patients (including videointerpreting). 

Northern Health continues to provide culturally diverse 

meals for patients including Halal and Kosher menus and 

implemented a patient menu which meets the Victorian 

Nutritional Standards. 

Northern Health’s Pastoral Services support patients and 

their families of all faiths. In December 2009, 11 Muslim 

Pastoral Services Volunteers undertook pastoral education 

training at Northern Health. They are now providing pastoral 

care to Northern Health’s Muslim patients and their families 

on a continuing basis at The Northern Hospital, Bundoora 

Extended Care Centre and Broadmeadows Health Service. 

The program was developed following significant interest 

from the local Islamic community to provide a Muslim 

Pastoral Care across Northern Health’s campuses. The 

diversity within this group of volunteers reflects the 

community we serve. The volunteers speak fluent Arabic, 

Urdu (Hindi), Punjabi, English and Syrian and come from a 

wide range of countries including Pakistan, India, Lebanon, 

Egypt and Somalia. 

Northern Health has identified growth in the Aboriginal 

and Torres Strait Islander (ATSI) population in its catchment 

during the last five years. The North and West Metropolitan 

Region has 7,247 Aboriginal residents, which is 24% of 

Victoria’s Aboriginal population. In order to support equity 

and access to Northern Health services, the Aboriginal 

Support Unit has been established, consisting of an 

Aboriginal Hospital Liaison Officer and an Aboriginal 

Community Liaison Officer, who are able to support 

Aboriginal patients whilst they are inpatients, outpatients 

and during the discharge to community based services 

process. 

Assistance provided to ATSI people has increased from 35 

episodes of service in September 2009, to 83 per month 

currently. Northern Health has established an Aboriginal 

Advisory Committee to advise the Northern Health Board 

on issues relating to this community. Aboriginal people 


are now represented as patients in all 76 of Northern 

Health’s speciality clinics. Presentations have risen from 

1311 attendances in 08/09 to 1527 attendances in 09/10, 

indicating an increasing acceptance of Northern Health 

services by the ATSI community. 

The number of ATSI identified babies born at The Northern 

Hospital has also increased during the last seven years. 

This can be attributed to a number of factors including the 

increase in the ATSI population in the catchment, better 

processes to identify patients who identify as Aboriginal 

or Torres Straight Islander, and the increasingly positive 

view of the ATSI community towards Northern Health. This 

increasingly positive view is also reflected by the gradually 

increasing number of Aboriginal people joining the staff at 

Northern Health, particularly in nursing. 

The Northern Health Primary Care and Population 

Health Advisory Committee develops annual work plans 

to identify population health issues and strategies to 

address them. Northern Health continues to support 

Planning for a healthier North and is working towards 

WHO International Health Promoting Hospital status. The 

committee is proposing to further develop Health Literacy as 

a fundamental concept in training and education. 

Improving services for families 

Local children in the Craigieburn community and surrounds 

have the opportunity to enhance their developmental skills 

with the opening of the Craigieburn Health Service Resource 

Library. The Resource Library, a special library of games and 

toys, is designed to enrich a child’s development through 

positive play and interaction. Children are able to enjoy 

playing while achieving developmental goals. 

Parents attending Craigieburn Health Service’s Children’s 

Services are able to borrow select toys and equipment to 

help work towards their child’s short-term goals which may 

focus on hand-eye coordination, strength and balance, 

mobility and speech and language skills. Clinicians 

match the right toy to a child’s specific developmental 

need according to their therapy program. Many of the 

educational toys purchased for the Resource Library are 

expensive and may only be needed for a short period of 

time to help the child develop a new skill. The Library 

provides an opportunity for families to enhance their child’s 

development through positive play and interaction, without 

committing to the high cost. 

Parents will be provided with education and fact sheets on 

the use of library toys and equipment. They will also be given 

alternative play activities using day-to-day household items 

and other low cost ideas. The new Resource Library is made 

possible thanks to a generous $5,000 donation from Variety 

Club and is supported by Craigieburn Sporting Club. 

Unique opportunities for ‘Old Blokes’ 

The Old Blokes’ Shed, located at Bundoora Extended Care 

Centre is providing many new opportunities for clients to 

engage in rewarding rehabilitative and social activities. The 

Old Blokes’ Shed was built with the generous support of the 

Rotary Club of Bundoora. 

Three different sessions are run in the shed including 

Occupational Therapy, Planned Activity Group(PAG) and 

casual drop-in sessions. Occupational Therapy and PAG 

sessions are therapy related and run by Allied Health staff, 

supported by volunteers. 

These sessions are designed to restore or maintain a 

patient’s ability to perform tasks used in daily living and 

include activities such as woodwork, mosaic, card and board 

games and macramé among others. 

The Drop-In sessions, run by volunteers, focus on providing 

patients with an opportunity to socialise in a relaxed 

environment. 





enhancing access to appropriate services 

Access to services is a key priority for Northern Health. We 

strive to ensure consumers able to access the right service, in 

the right place and at the right time, which is critical for safe 

and appropriate care. 

Hospitalisation for residential care facility patients may be 

associated with increased risk of complications such as 

increased delirium, pressure ulcers and falls. Two programs 

based at The Northern Hospital provide treatment in the 

Residential Aged Care Facilities rather than in hospital. 

Residents are referred to the Residential Care Intervention 

Program in the Elderly (RECIPE) after admission with an acute 

illness. Once stabilised a patient is discharged back to the 

aged care facility with ongoing specialist care from medical 

and nursing staff. The development of clear management 

plans helps guide staff and general practitioners in the 

community. Outpatient appointments and inpatient lengths 

of stays are minimised by a RECIPE follow-up in liaison with 

the appropriate hospital staff. 

Most importantly the patient is offered the most appropriate 

treatment in the location of choice. 

A Residential Response Team facilitates a rapid clinical 

response for patients living in aged care facilities either to 

avoid presentation to the emergency department or hospital 

admission. This strategy is led by a geriatric medicine team 

and is a viable alternative to inpatient admission for selected 

patients including those with multiple comorbidities and 

dementia, as well as those who need palliative care support. 

Evaluation of the program has demonstrated that this model 

of care offers a valuable geriatric service to many residents 

who would prefer to avoid hospital transfers if possible, with 

no difference in mortality or re-hospitalisation rates for those 

treated in residential care. 

The Day Oncology Unit at Craigieburn opened as a satellite 

of The Northern Day Oncology Unit in early 2008. This 

service predominantly provides chemotherapy treatments 

and care of access devices to Oncology patients who live in 

the local community and surrounding areas. 

Craigieburn Day Oncology initially opened one day per week, 

is now open for two, with a possibility of increasing to three 

days per week within the next 12 months. Approximately 

20% of Northern Health chemotherapy treatments are now 

given at Craigieburn. 

This service has enabled many patients who live north of 

Epping, to receive their cancer treatment closer to home, 

in a purpose built, modern facility. These patients are cared 

for by specialist Oncology nurses and most are seen by 

the Oncologist, who visits Craigieburn one day per week. 

Feedback from patients has been very positive and the 

Day Oncology Unit at Craigieburn is seen as a convenient, 

supportive and friendly place to receive cancer treatments. 

A significant proportion of the community we serve is made 

up of young families, so ensuring we have appropriate 

services to meet the needs of new parents and their children, 

close to home, is of vital importance. 

A number of outpatients clinics have been developed and 

the appointment of an Operational Director – Outpatients 

and Specialist Clinics is enabling Northern Health to meet the 

needs of this group in our community. Clinics and services 

which were previously offered at Panch Health Service were 

relocated to other sites, including The Northern Hospital 

and Craigieburn Health Services where services can be better 

utilised. 

The introduction of a developmental service to premature 

neonatal inpatients, with medium-term follow-up at 

Craigieburn Health Service or Bundoora Paediatric Clinic, 

has improved access to preventative and early treatment 

developmental services for at-risk infants. The ante-natal 

services offered to mothers at a various Northern Health 

campuses is bringing important care to a convenient 

location. Northern Health’s Lactation Consultancy Service 

was reviewed and the development of a centralised triage 

process means we are able to be more responsive to the 

needs of new mothers. 

Craigieburn Health Service’s new paediatric Vitamin D Clinic 

is the first service of its kind in the northern metropolitan 

area. It offers ongoing assessment, administration of high 

dose Vitamin D, information regarding different ways to 

source Vitamin D and referrals to consultant paediatricians 

where appropriate. The Clinic is jointly run by a paediatric 

nurse and a consultant paediatrician. The Vitamin D Clinic 

allows families living in Melbourne’s northern suburbs to visit 

Craigieburn Health Service rather than travelling to another 

health service further from home. 

The Best Access First Go program is designed to provide GPs 

with up to date information and tools to make referring 

patients to Northern Health services easier. The development 

of existing online resources provide GPs with details and 

advice on referral requirements as well as alternatives 

The new $17.23m 25-bed mental health facility at The 

Northern Hospital was opened in March 2010 by the 

Minister for Mental Health, The Hon. Lisa Neville. An 

additional $1.4m is being spent to upgrade the existing 

25 bed Adult Acute Mental Health Inpatient Unit. These 

facilities are operated by North West Mental Health and 


demonstrate the importance of collaboration between 

health services to provide access for the community. The 

completion of the upgrade of the existing 25-bed ward will 

take the total number of beds to 50, one of the biggest 

mental health facilities in the state. 

The new unit includes single bedrooms with ensuite facilities, 

three separate wings which will meet the special needs of 

women and adolescents, several smaller lounge areas with 

small courtyards rather than one large area for all patients 

and a family room for visitors. 

Improvements in access to Day Surgery at Broadmeadows 

Health Service has resulted in an increase in theatre 

scheduling from 68% in December 2009 to 91% in March 

2010. The implementation of the Department of Health 

Elective Surgery Access Policy saw improvements in patient 

communication and overall elective surgery waiting list 

management. 

Northern Health also achieved a significant reduction in the 

overall surgical waiting list, including those patients waiting 

longer than the recommended waiting time. Strategies 

to help achieve this included early review of long waiting 

patients as outpatients. Plans are put in place to ensure 

timely surgery, case management of long waiting patients, 

better waiting list management and outsourcing some 

surgery to other surgical facilities. 

Northern Health’s Department of Cardiology has seen a large 

increase in activity and services throughout the past three 

years and following the commencement of a 24 hour, 365 

days a year service in late 2007. Demand by patients in the 

northern suburbs for local delivery of acute and ambulatory 

cardiac services has continued to grow rapidly. 

The cardiology outpatient department has doubled 

in size and now sees approximately 10,000 patients a 

year, with clinics offering expertise in general cardiology, 

electrophysiology (heart rhythm), pacemakers and heart 

failure, as well as a rapid access chest pain clinic. A new 

outpatient area was developed in 2009 to accommodate 

an ever increasing referral population which now sees 

cardiology clinics running every week day. Patients in 

Melbourne’s north no longer have to travel to inner city 

hospitals to access high quality outpatient cardiac services. 

Inpatient services have dramatically expanded over the past 

three years, most notably with the commencement of a 

regular Percutaneous Coronary Intervention (PCI) program 

(stenting coronary arteries for patients with angina and heart 

attack). 

The PCI service has developed to include a state of the art 

primary PCI service (emergency 24/7 treatment for heart 

attack victims). Time-to-treatment saves lives in patients 

having heart attacks, and new protocols developed in 

conjunction with the Ambulance Service and the Emergency 

Department have dramatically improved response times for 

these critically ill patients. 

This has seen an almost 1000% increase in volume from 

approximately four patients treated per month to 40 patients 

treated per month. 

Previously these patients were transferred to other facilities 

across Melbourne. Patients now benefit from reduced 

lengths of hospital stay and improved access for family and 

friends during their admission. The huge increase in demand 

for such services has seen the state government allocate 

$7.4m for a new cardiac precinct which will include two new 

cardiac catheter laboratories. This is due for completion in 

December 2011. All of the cardiologists at Northern Health 

exceed minimum requirements set by the Cardiac Society 

of Australia and New Zealand (CASNZ) for accreditation to 

perform diagnostic and invasive cardiac procedures. 

Out of hours specialist staff are now alerted and mobilised 

even before the patient arrives at Northern Health. Rural 

hospitals including Bendigo, Kilmore, Echuca and Seymour 

have made use of this service, with patients being transferred 

directly via ambulance and even helicopter. The PCI service, 

including primary PCI, is formally monitored fortnightly with 

feedback to physicians, the Emergency department and 

Ambulance staff on a regular basis. 

Cardiac Rehabilitation services at Northern Health have 

needed to grow to meet local patient needs. A service at 

Craigieburn Health Service commenced in February 2008 

and due to high demand, a second Cardiac Rehabilitation 

program started in February 2010. The new program runs 

out-of-hours (6 – 8pm) to improve access for patients of 

working age who have difficulty attending during standard 

business hours. 

All patients have an individual assessment by a cardiac 

nurse and physiotherapist before joining the program where 

they set short and long term goals. A cardiac depression 

scale is also used to identify patients at risk and if required 

offered intervention. Education sessions are presented by 

a dietitian, cardiac nurse, social worker physiotherapist and 

include education about risk factor modification, healthy 

food options, medications, stress management, emotional 

reactions, pathology, exercise and returning to activity. 

Exercise is focused around aerobic and strengthening 

training and patients are encouraged to become 

independent with their own programs with assistance from 

the physiotherapist. 





strengthening leadership and developing 

our workforce 

The delivery of quality healthcare is reliant on a strong 

and committed workforce. Northern Health’s workforce 

continues to expand and improve in quality and 

productivity to meet the growth in demand for our services. 

Strengthened leadership and workforce development is a 

strategic priority, where success will ensure Northern Health 

can deliver quality services, now and into the future. 

To enhance the workforce planning and development 

process, a number of new, senior positions were identified. 

Appointments have been made in the roles of Director 

Human Resources and Chief information Officer. For the first 

time, the appointment of a full time Clinical Services Director 

as head of the Obstetric and Gynaecology Department has 

been made. 

Northern Health’s Human Resources department supports 

a number of leadership programs. Courses offered, focus 

on Training and Development and include Transition to 

Management, Project Management and Leading Staff 

Through Change. 

A Strategic Leadership program is being developed to 

provide leaders within the organisation opportunities 

to explore and develop leadership capabilities and 

compentencies. Professional Development is encouraged for 

all staff in leadership positions and is mandatory for member 

of the Executive Management team. 

At a clinical level, Northern Health’s Medical, Nursing and 

Allied Health staff continue to receive support. The recent 

redevelopment of the Clinical Support Unit for both Medical 

and Nursing staff has seen improvements in recruitment and 

management of staff. 

A record number of Junior Doctors commenced their medical 

internship with Northern Health in 2010, commencing at 

The Northern Hospital. The group of 38, the largest intake 

of interns at the Hospital to date, is working across a variety 

of disciplines including general medicine, surgery, vascular, 

orthopaedics, emergency, radiology, psychiatry, anaesthetics 

and general practice. The increase in the number of medical 

interns strengthens our capacity to respond to the health 

needs within the community. 

A number of staff continue to represent Northern Health 

on working groups and at conferences. The Paediatric 

Department has representatives on the Metropolitan 

Working Group of the Paediatric Clinical Network and the 

Maternity & Newborn Clinical Network Leadership Group. 

Both these groups evaluate paediatric care state-wide. 

The successful recruitment of surgeons throughout the 

year is allowing full utilisation of operating sessions across 

operating theatres at Broadmeadows Health Service and The 

Northern Hospital. 

Northern Health is committed to the ongoing development 

and education of Nurses across the organisation and has 

developed and enhanced the nursing education function. 

The Graduate Nurse Program has been reviewed and 

expanded, with plans for continued expansion in 2011. 

The role of Nurse Practitioner is also being reviewed and 

Northern Health now has four endorsed Nurse Practitioners. 

The inaugural Northern Health Nursing strategic planning 

day was held in May 2010 the Chief Nurse Victoria in 

attendance and presenting on the day. 

Student health professionals are the future of healthcare and 

there is an expectation of qualified health professionals to 

work effectively together to achieve high quality outcomes 

for the community. Most of our health professional training 

however is still provided to individual discipline groups. 

The Interprofessional Clinical Education (IPCE) program 

is an innovative program that has evolved over the past 

three years. It is an interactive workshop style experience 

available to senior allied health, medicine and nursing 

students on placement at Northern Health and a wide 

range of health and human service agencies in the region 

including community health, mental health, private hospitals 

and practices, aged care and rehabilitation facilities. Using 

experiential learning, small group activities, and complex 

case studies, the students explore how interprofessional 

teams can work more effectively together to meet patients’ 

needs. Students report that the program provides a positive 

and valuable learning opportunity and their supervisors 

observe post-program improvements in students’ team 

interactions in the clinical care setting. 

Dr Natalie de Morton from Northern Health and La Trobe 

University has been awarded a 2010 Churchill Fellowship to 

further expand her work on physical ageing, mobility and 

exercise for older people. Churchill Fellowships are awarded 

to Australians who are striving for excellence, are passionate 

about their profession and who have a strong community 

focus. 

Dr de Morton’s research and development of the de Morton 

Mobility Index (DEMMI) has been significant in helping 

clinicians accurately measure the mobility status of older 

acute medical patients. Mobility is a very important indicator 


of health status in older patients as it can reveal unknown 

issues and help determine exercise regimes. 

Dr de Morton’s DEMMI instrument is straightforward, 

enabling clinicians to quickly diagnosis mobility status using 

15 simple physical tests from the patient’s bedside. 

As a Churchill Fellow, Dr de Morton will complete a six 

week visit to the USA and Canada to continue her work 

on physical ageing, mobility and exercise for older people. 

The trip will include attending a two week internationally 

recognised course in public health in the USA followed by 

conducting research with two world leading research teams. 

Northern Health promotes and observes progressive 

strategies for healthy and attractive work environments 

which support creativity, innovation and a culture of 

teamwork, to make Northern Health an employer of choice 

for professionals 

The 2010-11 Redesigning Care program plan includes 

the delivery of an education program promoting process 

improvement methods across the health service. These 

methods have proved highly successful for industries as 

diverse as manufacturing, banking and the military, and in 

recent times have been successful in reducing wait times 

and improving quality in health services. The education will 

support staff to improve our current work practices. 

Ensuring our staff are working in a safe environment 

is of paramount importance and the development of a 

new OH&S Strategy is underway. The strategy focuses on 

availability of training tools for staff and volunteers, health 

and well being initiatives such as assistance quitting smoking 

and providing a staff lifestyle checks program. 

Northern Health implemented the Sick Leave Donation 

Registry in response to a number of long-term employees 

resigning as a result of catastrophic illness or injury. 

Employees can donate an amount of their personal sick 

leave accrual to a central registry. Other employees who are 

experiencing hardship due to a catastrophic illness or injury 

suffered by themselves or a member of their immediate 

family are able to access the pooled hours. In the last 4 years 

7,395 hours of sick leave has been made available to 35 staff 

via this donation model. 





growing and translating education & 

research 

The translation and learnings from education and research 

into direct clinical practice leads to optimal health outcomes 

for consumers. With funding to build the Academic and 

Research Precinct, Northern Health now has an increased 

capacity in education and research, which ensures we are 

able to attract and retain staff who can deliver quality health 

services. 

Planning and development of the Academic and Research 

Precinct continues with the appointment of a project 

management team and plans for the facility drawn. Funding 

of $11m needs to be secured and the Northern Health 

Foundation is working towards a fundraising goal of $5m. 

In a day to day sense, a variety of evidence based guidelines 

are being incorporated into everyday practice. Northern 

Health aims to incorporate research into everyday practice. 

Northern Health staff continue to collaborate with other 

health professionals and utilise opportunities to bring 

knowledge and experience back to Northern Health. 

Neonatal care is improved by strengthening the clinical 

relationship with the Neonatal Intensive Care Unit at the 

Mercy Hospital for Women through Dr Wei Qi Fan regularly 

attending rounds at the Mercy Hospital for Women. 

Dr Simon Hauser has been appointed a Director of Paediatric 

Physician Training within the Royal Australasian College of 

Physicians (RACP). Overseas elective medical students have 

been hosted in the paediatric department for the first time 

this year, from the UK, Ireland and Indonesia. Dr Simon 

Hauser is a supervisor for a number of Universitas Indonesia 

students who undertake an Advanced Medical Science year 

at the University of Melbourne. Dr Shane O’Dea received a 

grant from the RACP to develop multi-site teleconferencing 

for paediatric education for post-graduate education. 

Northern Health is also participating in research programs 

with the Department of Clinical and Health Psychology at 

Austin Health, focusing on early signs and symptoms of post 

natal depression. 

Northern Cardiology is committed to research and improving 

patient outcomes and choice. An international multicentre 

research site, Northern Cardiology is a leader in Australia for 

recruitment in trials of new therapies for patients with heart 

attack. Local investigator initiated research in association 

with the University of Melbourne also includes projects 

utilising transthoracic echocardiography (cardiac ultrasound), 

optical coherence tomography and development of a novel 

research project on patient choice of treatment options for 

those requiring cardiac surgery. 

Northern Cardiology has made significant commitments to 

teaching in past three years. Our advanced cardiology trainee 

program has seen an increase in the number of positions 

available, and the department actively teaches both medical 

and nursing students. In 2010, the department ran a course 

electronically for the first time, streaming live PCI cases to the 

lecture theatre for the nurse’s cardiology study day. 

Treating an increasing number of patients within our own 

primary catchment area has meant improved access to acute 

and ambulatory cardiac services for patients in Melbourne’s 

northern suburbs. The developments, including recruitment 

of Cardiologists at the forefront of their subspecialty, has 

lead to Cardiology patients in the northern suburbs having 

access to the very latest in technology, and in the case of the 

OCT, the first of its kind in Australia. 

Attestation on Compliance with Australian/New Zealand Risk Management Standard 

I, Greg Pullen certify that Northern Health has risk management processes in place consistent with the Australian/New 

Zealand Risk Management Standard and an internal control system is in place that enables the executives to understand, 

manage and satisfactorily control risk exposures. The audit committee verifies this assurance and that the risk profile of 

Northern Health has been critically reviewed within the last 12 months. 

Mr Greg Pullen 

Accountable Officer 

Northern Health 

27 August 2010 


Statement of Priorities 

Strategic Priorities 

1. Corporate Capability (finances, 

infrastructure, reputation) 

2. Deliver quality health services 

3. Improve consumer experience 

4. Enhance access to appropriate services 

5. Strengthen leadership and develop 

workforce 

6. Grow and translate education 

and research 

Deliverables/Outcome 

• Complete clinical service planning and commence master 

planning. 

• Undertake appropriate financial management to maximise revenue 

opportunities, improve service efficiency and maintain financial 

sustainability. 

• Implement roster on and the payroll interface of roster on across 

Northern Health on a rolling basis. 

• Implement Picture Archiving Computer System (PACS). 

• Review Northern Health governance structures and systems to 

ensure alignment with strategic plan priorities. 

• Review the potential to reconfigure out of hours surgery. 

• Implement lean methodology through DHS Redesigning care 

program to improve the patient journey in surgery, MAPU and the 

Emergency Department. 

• Implement the longer stay older persons’ initiative across acute 

inpatient units. 

• Complete the pilot of video conferencing for interpreting services. 

• Progress strategies to enhance and reconfigure service capacity 

across Northern Health. 

• Improve outpatient access and referral management through 

a review of current processes. 

• Optimise the benefits of Craigieburn Health Service. 

• Review and implement an integrated Northern Health workforce 

plan with particular emphasis on reducing reliance on casual 

workforce and overtime. 

• Governance and service agreement arrangements are developed 

and agreed between university providers and Northern Health to 

progress the Academic and Research Precinct. 

Performance priorities 

Financial performance 

Operating Result 2009-10 

Annual Operating Result ($m) 

($1.14m) 

Cash management/liquidity 2009-10 2009-10 

Creditors 71 

Debtors 56 

Net movement in cash balance ($m) 

-$3.43m 


Performance priorities cont’d... 

Service performance 

WIES activity performance 2009-10 

WIES (public & private) performance 37,727 

Elective surgery 2009-10 

Elective surgery admissions – quarter 1 1,982 




Critical care 2009-10 

ICU minimum operating capacity 6 

Quality and safety 2009-10 

Health service accreditation 

Full compliance 

Residential aged care accreditation 

Full compliance 

Cleaning standards (%) 97 

Submission of data to VICNISS (1) (%) 100 

VICNISS Infection Clinical indicators (2) No Outlier(3) 

No outlier 

Hand Hygiene Program compliance (%) 85 

Victorian Patient Satisfaction Monitor 

Not met 

Maternity 2009-10 

Postnatal home care (%) 98 

Access performance 

Emergency care 2009-10 

Percentage of operating time on hospital bypass 1.78% 

Percentage of emergency patients transferred to an inpatient bed within 8 hours 62.7% 

Percentage of non-admitted emergency patients with length of stay of less than 4 Hours 68.5% 

Number of patients with length of stay in the emergency department greater than 24 Hours 28 

Percentage of Triage Category 1 emergency patients seen immediately 100% 

Percentage of Triage Category 2 emergency patients seen within 10 minutes 87.4% 

Percentage of Triage Category 3 emergency patients seen within 30 minutes 75.6% 

Elective surgery 2009-10 

Percentage of Category 1 elective patients admitted within 30 days 100% 

Percentage of Category 2 elective surgery patients waiting less than 90 days 86% 

Percentage of Category 3 elective surgery patients waiting less than 365 days 93% 

Number of patients on the elective surgery waiting list 2,051 

Number of Hospital Initiated Postponements (HiPs) per 100 scheduled admissions 7.5 


Activity and Funding 

Activity and Funding Type 

2009-10 Activity 

Acute Inpatient 

WIES Public 34,047 

WIES Private 3,680 

WIES (Public and Private) 37,727 

WIES DVA 477 

WIES TAC 146 

WIES Total 38,350 

Sub Acute Inpatient 

CRAFT 665 

Rehab L2 (non DVA) 793 

GEM (non – DVA) 24,584 

Palliative Care - Inpatient 5,660 

Transition Care (non – DVA) – Bedday 3,158 

Restorative Care 

n/a 

Rehab 2 – DVA 823 

GEM – DVA 1,864 

Palliative Care – DVA 310 

Ambulatory 

Emergency Services – Non-Admitted 40,853 

VACS – Allied Health 26,985 

VACS – Variable 53,019 

Transition Care (non DVA) – Homeday 10,997 

SACS – Non DVA 37,127 

Post Acute Care 1,963 

VACS – Allied Health – DVA 2,267 

VACS – Variable – DVA 30 

SACS – DVA 277 

Post Acute Care - DVA 16 

Aged Care 

Aged Care Assessment Service 15,555 

Attestation on Data Integrity 

I, Greg Pullen certify that the Northern Health has put in place appropriate internal controls and processes to ensure that 

reported data reasonably reflects actual performance. Northern Health has critically reviewed these controls and processes 

during the year. 


Accountable Officer 


27 August 2010 


Corporate Information 

General Information 

Northern Health was established in July 2000 under the 

Health Services (Governance & Accountability) Act and 

under the auspices of the Minister for Health, the 

Hon. Daniel Andrews. 

It provides a wide range of healthcare services to a 

catchment of approximately 500,000 people living in 

Melbourne’s middle to outer northern suburbs and the 

semi-rural regions beyond the urban fringe. 

Northern Health comprises: 

• Broadmeadows Health Service 

• Bundoora Extended Care Centre 

• Craigieburn Health Service 

• Panch Health Service 

• The Northern Hospital 

Consultancies 

There were no individual consultancies greater than 

$100,000. 

The total sum expended on the 22 consultancies each less 

than $100,000 was $263,000 

Occupational Health & Safety Claims 

2009/10 16 

2008/09 9 

2007/08 18 

2006/07 24 

2005/06 20 

2004/05 21 

2003/04 20 

These are standard Workcover claims, which are defined as 

those claims that are over the statutory employer excess and 

a reported to VWA during the financial year. 

Building Act 1993 

During the financial year, it has been Northern Health’s 

practice to obtain building permits for new projects, and 

Certificates of Occupancy or Certificates of Final Inspection 

for all completed projects. 

Registered Building Practitioners have been involved 

with all new building work projects and were supervised 

by Northern Health’s Director of Capital Planning & 

Development (Building Registration Number CB-U 1944). 

Completed & Operational as at 30/06/10: 

• $1.5m Corporate Office relocation to 

The Northern Hospital; 

• $5.2m Infrastructure services upgrade at 


• $2.5m Maternity bed extension; and 

• $0.4m Portable office accommodation. 

Current projects in construction: 

• $19.4m Mental Health extension at 

The Northern Hospital. 

Current projects in design phase: 

• $47.4m Academic and Research Precinct at 


• $7.4m Cardiac Catheter Laboratory; and 

• $6.2m Front Entry Redevelop at The Northern 

Hospital. 

Current projects in the planning and funding phase: 

• additional Operating and Endoscopy Rooms at 


• strategic Master Plan redevelopment of 

The Northern Hospital; and 

• finishing Kitchen Redevelopment. 

National Competition Policy 

Services that are regularly market tested in accordance with 

the government’s Competitive Neutrality Guidelines include: 

patient Transport; 

waste Management; 

car parking; 

fleet Management; 

supply; 

medical Imaging/Radiology; 

pathology; 

food Service; 

biomedical Engineering; 

cleaning Services; 

laundry; 

security; 

retail services; 

financial services; 

information and Communications Technology; 

clinical Services; 

building and Engineering Services; and 

community Services. 

Market testing of services will continue as scheduled, 

and according to the contract cycle, into the 2010/11 

financial year. 


Freedom of Information 

710 Freedom of Information applications were received 

by Northern Health during the 2009/10 financial year. All 

applications were processed according to the provisions of 

the Freedom of Information Act 1982, which provides a 

legally enforceable right of access to information held by 

government agencies. 

All Northern Health campuses provide a report on these 

requests to the Victorian Department of Justice. 

The applications were processed as follows: 

710 applications received; 

Environmental Performance 

Detailed in the Report of Operations 

Victorian Industry Participation Policy 

Northern Health let no contracts of $3 million or over in the 

relevant financial year. 

Merit & Equity Principles 

Merit & Equity principles are encompassed in all 

employment and diversity management activities 

throughout Northern Health. 

636 granted in full; 

19 granted in part; 

0 denied; 

4 withdrawn; 

49 not finalised; and 

2 No document (patient did not attend organisation for 

requested dates) 

Whistleblowers 

The Whistleblowers’ Protection Act 2001 is designed to 

protect people who disclose information about serious 

wrongdoing within the Victorian public sector, and to 

provide a framework for the investigation of these matters. 

Northern Health has implemented the Whistleblower 

Policies & Procedures in accordance with the Act. The Health 

Service received no disclosures under the Act in the relevant 

financial year. 

Other Information 

Information required in accordance with FRD22 of the 

Financial Management Act has been prepared and is 

available to the relevant Minister, Members of Parliament 

and the public on request. 

Workforce Data (FTE) 

Jun-10 Jun-10 2010 2009 

Headcount FTE FTE FTE 

Nursing services 1457 1021 1011 991 

Administrative 

and Clerical 476 352 352 351 

Medical Support 

Services 147 119 120 120 

Hotel and Allied 

Services 167 124 118 121 

Medical Officers 

including HMOs 288 238 229 216 

Sessional Medical 

Officers 157 46 44 41 

Ancilliary Support 

Services 300 237 229 224 

Grand total 2992 2141 2105 2064 

FTE is reported as an average 


Financial Summary 

REVENUE INDICATORS 

Debtors Outstanding as at 30 June 2010 

000’s Under 31-60 61-90 Over Total Total 

30 days days days 90 days 30/6/10 30/6/09 

Private 790 247 100 300 1,437 1,931 

TAC 5 5 4 14 28 29 

VWA 172 75 135 37 419 280 

Overseas Visitors 61 40 14 69 184 205 

Residential Aged Care 10 0 0 23 33 34 

Total Debtors 2,101 2,479 

Average Collection Days 

56 days 106 days 

FINANCIAL SUMMARY 

Report of Operations Disclosure 

2010 2009 2008 2007 2006 

000’s 000’s 000’s 000’s 000’s 

Total Revenue 309,506 273,425 252,263 239,088 206,987 

Total Expenses 306,328 289,039 266,046 235,118 209,077 

Operating Surplus / (Deficit) 3,178 (15,614) (13,783) 3,970 (2,090) 

Accumulated Deficits 28,394 31,572 16,031 1,971 5,847 

Total Assets 305,400 305,869 276,029 228,765 186,535 

Total Liabilities 67,082 70,729 60,678 49,529 44,648 

Net Assets 238,318 235,140 215,351 179,236 141,887 

Total Equity 238,318 235,140 215,351 179,236 141,887 


2009/10 2008/09 

000’s 000’s 

Revenue 

Services Supported by Health Service Agreements 

Government Grants 253,206 236,779 

Indirect Contributions by Department of Human Services 4,214 5,112 

Patient and Resident Fees 9,733 9,441 

Recoupment from Private Practice for Use of Hospital Facilities 1,818 1,568 

Donations & Bequests 5 36 

Interest 501 674 

Other Revenue 4,227 3,212 

273,704 256,822 

Services Supported by Hospital & Community Initiatives 

Private Practice Fees 242 237 

Donations & Bequests 521 191 

Interest 15 16 

Property Income 4,430 3,035 

Other Revenue 6,080 7,634 

11,288 11,113 

284,992 267,935 

Expenses 

Services Supported by Health Service Agreements 

Employee Benefits 188,367 179,433 

Non Salary Labour Costs 8,964 8,790 

Supplies & Consumables 51,946 54,142 

Other Expenses 29,008 26,385 

278,285 268,750 

Services Supported by Hospital & Community Initiatives 

Employee Benefits 2,573 1,850 

Non Salary Labour Costs 1,343 1,426 

Supplies & Consumables 1,911 2,210 

Other Expenses 2,022 3,552 

7,849 9,038 

286,134 277,788 

Deficit for the Year Before Capital Purpose Income, 

Depreciation, & Specific Revenues and Expenses (1,142) (9,853) 

Capital Purpose Income 23,896 5,469 

Net Gain / (Loss) on Sale of Assets 618 21 

Finance Costs (34) (67) 

Impairment on Financial Assets 0 (1,417) 

Depreciation (20,160) (9,767) 

Operating Surplus / (Deficit) For The Year 3,178 (15,614) 


Disclosure Index 

The Annual Report of Northern Health is prepared in accordance with all relevant Victorian legislation. This index has been 

prepared to facilitate identification of the Health Service’s compliance with statutory disclosure requirements. 

Legislation Requirement Page Ref 

Ministerial Directions 

Report of Operations 

Charter and purpose 

FRD 22B Manner of establishment and the relevant Ministers A 36 

FRD 22B Objectives, functions, powers and duties A 3-35 

FRD 22B Nature and range of services provided A 16-19 

Management and structure 

FRD 22B Organisational structure A 15 

Financial and other information 

FRD 10 Disclosure index A 40-41 

FRD 11 Disclosure of ex-gratia payments N/A 

FRD 21A Responsible person and executive officer disclosures F 1 

FRD 22B Application and operation of Freedom of Information Act 1982 A 37 

FRD 22B Application and operation of Whistleblowers Protection Act 2001 A 37 

FRD 22B Compliance with building and maintenance provisions of Building Act 1993 A 36 

FRD 22B Details of consultancies over $100,000 A 36 

FRD 22B Details of consultancies under $100,000 A 36 

FRD 22B Major changes or factors affecting performance A 2-5 

FRD 22B Occupational health and safety A 36 

FRD 22B Operational and budgetary objectives and performance against objectives A 3-35 

FRD 22B Significant changes in financial position during the year A 4-5 

FRD 22B Statement of availability of other information A 37 

FRD 22B Statement of merit and equity A 37 

FRD 22B Statement on National Competition Policy A 36 

FRD 22B Subsequent events F 48 

FRD 22B Summary of the financial results for the year A 38-39 


FRD 22B Workforce Data Disclosures A 37 

FRD 25 Victorian Industry Participation Policy disclosures A 37 

SD 4.2(j) Report of Operations, Responsible Body Declaration A 5 

SD 4.5.5 

Attestation on Compliance with Australian/New Zealand 

Risk Management Standard A 32 

Legislation Requirement Page Reference 

Financial Statements 

Financial statements required under Part 7 of the FMA 

D 4.2(a) 

Compliance with Australian accounting standards and other 

authoritative pronouncements F 7 

SD 4.2(b) Comprehensive Operating Statement F 2 

SD 4.2(b) Balance Sheet F 3 

SD 4.2(b) Statement of Changes in Equity F 4 

SD 4.2(b) Cash Flow Statement F 6 

SD 4.2(c) Accountable officer’s declaration F 1 

SD 4.2(c) Compliance with Ministerial Directions F 7 

SD 4.2(d) Rounding of amounts F 7 

Legislation 

Freedom of Information Act 1982 A 37 

Whistleblowers Protection Act 2001 A 37 

Victorian Industry Participation Policy Act 2003 A 37 

Building Act 1993 A 36 

Financial Management Act 1994 F 7 




Financial Statements 

& Accompanying Notes 

For the Year Ended 

30 June 2010 

Northern Health Financial Report 

Appendix to the 2009 - 2010 Annual Report

Northern Health Annual Report 2009/2010 

Table Of Contents 

Page 

Board member's, accountable officers and chief finance & accounting officer’s declaration 1 

Comprehensive Operating Statement 2 

Balance Sheet 3 

Statement of Changes in Equity 4 

Cash Flow Statement 6 

Note 1: Statement of Significant Accounting Policies 7 

Note 2: Revenue 17 

Note 2a: Analysis of Revenue by Source 19 

Note 2b: Patient and Resident Fees 21 

Note 2c: Net Gain/(Loss) on Disposal of Non-Financial Assets 21 

Note 3: Expenses 22 

Note 3a: Analysis of Expenses by Source 24 

Note 4: Depreciation and Amortisation 26 

Note 5: Finance Costs 26 

Note 6: Cash and Cash Equivalents 26 

Note 7: Receivables 27 

Note 8: Other Financial Assets 28 

Note 9: Inventories 29 

Note 10: Non-Financial Assets Classified as Held-For-Sale 29 

Note 11: Other Assets 29 

Note 12: Property, Plant & Equipment 30 

Note 13: Intangible Assets 32 

Note 14: Payables 33 

Note 15: Interest Bearing Liabilities 34 

Note 16: Employee Benefits and Related On-Costs Provisions 35 

Note 17: Other Liabilities 36 

Note 18: Equity 37 

Note 19: Reconciliation of Net Result for the Year to Net Cash Inflow/(Outflow) from Operating Activities 38 

Note 20: Financial Instruments 39 

Note 21: Commitments for Expenditure 44 

Note 22: Contingent Assets and Contingent Liabilities 45 

Note 23: Segment Reporting 45 

Note 24a: Responsible Persons Disclosures 46 

Note 24b: Executive Officer Disclosures 47 

Note 25: Events Occurring after the Balance Sheet Date 48 

Note 26: Controlled Entities 48 

Note 27: Economic Dependency 48 

Independent Auditors Report 49 

Independent Auditors Report 50 

Northern Health Financial Report Appendix to the 2009 - 2010 Annual Report


Board member's, accountable officer's and chief finance & accounting officer's declaration 

We certify that the attached financial report for Northern Health, including controlled entities, has been prepared in accordance with Standing Direction 4.2 of the Financial Management Act 1994, 

applicable Financial Reporting Directions , Australian Accounting Standards, Australian Accounting Interpretations and other mandatory professional reporting requirements. 

We further state that, in our opinion, the information set out in the Comprehensive Operating Statement, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and notes forming 

part of the financial report, presents fairly the financial transactions during the year ended 30 June 2010 and financial position of Northern Health at 30 June 2010. 

We are not aware of any circumstance which would render any particulars included in the financial report to be misleading or inaccurate. 

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

__________________________ __________________________ __________________________ 

Mr Steve Black Mr Greg Pullen Mr Sam Costanzo 

Board Chair Chief Executive Officer Executive Director, Finance 

Northern Health Northern Health Northern Health 

17 August 2010 17 August 2010 17 August 2010 

Northern Health Financial Report Appendix to the 2009 - 2010 Annual Report 

Page 1 of 54 52



Comprehensive Operating Statement 

For the Year Ended 30 June 2010 

Note Parent Entity Parent Entity Consol'd Consol'd 

2010 2009 2010 2009 

$'000 $'000 $'000 $'000 

Revenue from Operating Activities 2 284,319 266,512 284,476 267,245 

Revenue from Non-Operating Activities 2 502 674 516 690 

Employee Benefits 3 (190,840) (181,176) (190,940) (181,283) 

Non Salary Labour Costs 3 (10,306) (9,803) (10,307) (10,216) 

Supplies & Consumables 3 (53,852) (56,352) (53,857) (56,352) 

Other Expenses From Continuing Operations 3 (31,019) (30,098) (31,030) (29,937) 

Net Result Before Capital & Specific Items (1,196) (10,243) (1,142) (9,853) 

Capital Purpose Income 2 24,514 5,581 24,514 5,490 

Impairment of Financial Assets 3 - (1,417) - (1,417) 

Depreciation and Amortisation 4 (20,160) (9,763) (20,160) (9,767) 

Finance Costs 5 (34) (67) (34) (67) 

Net Loss On Disposal Of Non-Current Assets 3 - - - - 

Expenditure using Capital Purpose Income 3 - - - - 

NET RESULT FOR THE YEAR 3,124 (15,909) 3,178 (15,614) 

Other Comprehensive Income 

Net fair value revaluation on Non Financial Assets 12 - 25,782 - 25,782 

COMPREHENSIVE RESULT FOR THE YEAR 3,124 9,873 3,178 10,168 

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


Page 2 of 52



Balance Sheet 

As at 30 June 2010 


2010 2009 2010 2009 

$'000 $'000 $'000 $'000 

Current Assets 

Cash and Cash Equivalents 6 920 3,830 1,382 4,361 

Receivables 7 6,717 7,953 6,717 7,962 

Inventories 9 909 873 909 873 

Non-Financial Assets Classified as Held For Sale 10 377 1,659 377 1,659 

Other Current Assets 11 216 76 216 76 

Total Current Assets 9,139 14,391 9,601 14,931 

Non-Current Assets 

Receivables 7 2,580 2,309 2,580 2,309 

Other Financial Assets 8 - 1,440 - 1,440 

Property, Plant & Equipment 12 292,665 286,212 292,665 286,221 

Intangible Assets 13 554 968 554 968 

Total Non-Current Assets 295,799 290,929 295,799 290,938 

TOTAL ASSETS 304,938 305,320 305,400 305,869 

Current Liabilities 

Payables 14 20,930 25,619 20,934 25,734 

Interest Bearing Liabilities 15 144 144 144 144 

Employee Benefits and Related On-Costs Provisions 16 39,251 38,086 39,251 38,086 

Other Liabilities 17 5 8 5 8 

Total Current Liabilities 60,330 63,857 60,334 63,972 

Non-Current Liabilities 

Payables 14 - 46 - 46 

Interest Bearing Liabilities 15 711 747 711 747 

Employee Benefits and Related On-Costs Provisions 16 6,037 5,964 6,037 5,964 

Total Non-Current Liabilities 6,748 6,757 6,748 6,757 

TOTAL LIABILITIES 67,078 70,614 67,082 70,729 

NET ASSETS 237,860 234,706 238,318 235,140 

EQUITY 

Property, Plant & Equipment Revaluation Surplus 18a 104,432 104,432 104,432 104,432 

Restricted Specific Purpose Reserve 18a 370 340 646 646 

Contributed Capital 18b 161,634 161,634 161,634 161,634 

Accumulated Deficits 18c (28,576) (31,700) (28,394) (31,572) 

TOTAL EQUITY 18d 237,860 234,706 238,318 235,140 

Contingent Liabilities and Contingent Assets 22 

Commitments for Expenditure 21 



Page 3 of 52



Statement of Changes in Equity 


Note Equity at 1 July 

2009 

Comprehensive 

Result 

Transactions with 

owner in capacity 

as owner 

Equity at 30 June 

2010 

2010 

Consolidated $'000 $'000 $'000 $'000 

Accumulated Surplus/ (Deficit) 18c (31,572) 3,178 - (28,394) 

Transfer (to)/ from Restricted Specific Purpose Reserve 18c - - - - 

(31,572) 3,178 - (28,394) 

Contribution by Owners 18b 161,634 - - 161,634 

161,634 - - 161,634 

Reserves 

Property Plant & Equipment Revaluation Surplus 18a 104,432 - - 104,432 

Restricted Specific Purpose Reserve 18a 646 - - 646 

105,078 - - 105,078 

TOTAL EQUITY AT THE END OF THE FINANCIAL YEAR 235,140 3,178 - 238,318 


2008 

Comprehensive 

Result 



as owner 


2009 

2009 

Consolidated $'000 $'000 $'000 $'000 

Accumulated Surplus/ (Deficit) 18c (16,031) (15,614) - (31,645) 

Transfer (to)/ from Restricted Specific Purpose Reserve 18c - 73 - 73 

(16,031) (15,541) - (31,572) 

Contribution by Owners 18b 152,013 - 9,621 161,634 

152,013 - 9,621 161,634 

Reserves 

Property Plant & Equipment Revaluation Surplus 18a 78,650 25,782 - 104,432 

Restricted Specific Purpose Reserve 18a 719 (73) - 646 

79,369 25,709 - 105,078 

TOTAL EQUITY AT THE END OF THE FINANCIAL YEAR 215,351 10,168 9,621 235,140 



Page 4 of 52



Statement of Changes in Equity 



2009 

Comprehensive 

Result 



as owner 


2010 

2010 

Parent $'000 $'000 $'000 $'000 

Accumulated Surplus/ (Deficit) 18c (31,700) 3,124 - (28,576) 

Transfer (to)/ from Restricted Specific Purpose Reserve 18c - - - - 

(31,700) 3,124 - (28,576) 

Contribution by Owners 18b 161,634 - - 161,634 

161,634 - - 161,634 

Reserves 

Property Plant & Equipment Revaluation Surplus 18a 104,432 - - 104,432 

Restricted Specific Purpose Reserve 18a 340 - - 340 

Transfer to and from Internal Entities - - 30 

104,772 - - 104,802 

TOTAL EQUITY AT THE END OF THE FINANCIAL YEAR 234,706 3,124 - 237,860 


2008 

Comprehensive 

Result 



as owner 


2009 

2009 

Parent $'000 $'000 $'000 $'000 

Accumulated Surplus/ (Deficit) 18c (16,030) (15,909) - (31,939) 

Transfer (to)/ from Restricted Specific Purpose Reserve 18c - 239 - 239 

(16,030) (15,670) - (31,700) 

Contribution by Owners 18b 152,013 - 9,621 161,634 

152,013 - 9,621 161,634 

Reserves 

Property Plant & Equipment Revaluation Surplus 18a 78,650 25,782 - 104,432 

Restricted Specific Purpose Reserve 18a 579 (239) - 340 

79,229 25,543 - 104,772 

TOTAL EQUITY AT THE END OF THE FINANCIAL YEAR 215,212 9,873 9,621 234,706 



Page 5 of 52



Cash Flow Statement 



2010 2009 2010 2009 

$'000 $'000 $'000 $'000 

CASH FLOWS FROM OPERATING ACTIVITIES 

Operating Grants from Government 258,783 240,275 258,783 240,285 

Patient and Resident Fees Received 10,515 10,709 10,522 10,956 

Private Practice Fees Received 709 (427) 709 (427) 

Donations and Bequests Received 369 292 526 226 

GST Received from/(paid to) ATO 1,905 (263) 1,907 (264) 

Recoupment from private practice for use of hospital facilities 1,833 1,590 1,833 1,590 

Interest Received 1,787 676 1,799 691 

Other Receipts 14,549 11,966 14,550 12,517 

Employee Benefits Paid (188,597) (175,474) (188,698) (175,581) 

Non Salary Labour Costs (10,301) (9,801) (10,301) (10,213) 

Payments for Supplies & Consumables (62,258) (50,439) (62,376) (50,374) 

Finance Costs (33) (67) (33) (67) 

Other Payments (30,841) (29,814) (30,883) (29,731) 

Cash Generated from Operations (1,580) (777) (1,662) (392) 

Capital Grants from Government 21,690 5,395 21,690 5,395 

Capital Donations and Bequests Received - - - - 

NET CASH INFLOW FROM OPERATING ACTIVITIES 19 

20,110 4,618 20,028 5,003 

CASH FLOWS FROM INVESTING ACTIVITIES 

Payments for Non-Financial Assets (27,508) (16,574) (27,495) (16,645) 

Proceeds from sale of Financial Assets 2,697 - 2,697 - 

Proceeds from sale of Non-Financial Assets 1,925 20 1,925 20 

NET CASH OUTFLOW FROM INVESTING ACTIVITIES (22,886) (16,554) (22,873) (16,625) 

CASH FLOWS FROM FINANCING ACTIVITIES 

Proceeds from Borrowings - - - - 

Repayment of Borrowings (131) (202) (131) (202) 

Contributed Capital from Government - 9,621 - 9,621 

NET CASH INFLOW FROM FINANCING ACTIVITIES 

(131) 9,419 (131) 9,419 

NET DECREASE IN CASH HELD (2,907) (2,517) (2,976) (2,203) 

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 3,822 6,339 4,353 6,556 

CASH AND CASH EQUIVALENTS AT END OF PERIOD 6 915 3,822 1,377 4,353 

This Statement should be read in conjunction with the accompanying notes 


Page 6 of 52

Note 1: Statement of Significant Accounting Policies 

Notes To and Forming Part of the Financial Statements 


(a) Statement of compliance 

The financial report is a general purpose financial report which has been prepared on an accrual basis in accordance with the Financial Management Act 1994 and applicable Australian 

Accounting Standards (AASs) and Australian Accounting Interpretations. AASs includes Australian equivalents to International Financial Reporting Standards. 

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

by the Minister for Finance. 

The entity is a not-for profit entity and therefore applies the additional Aus paragraphs applicable to “not-for-profit” entities under the AAS’s. 

(b) Basis of preparation 

The financial report is prepared in accordance with the historical cost convention, except for the revaluation of certain non-financial 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 AASs management is required to make judgments, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other 

sources. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, 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. 

Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the 

substance of the underlying transactions or other events is reported. 

The accounting policies set out below have been applied in preparing the financial report for the year ended 30 June 2010, and the comparative information presented in these financial 

statements for the year ended 30 June 2009. 

(c) Going Concern 

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

The Department of Health has provided assurances to support the on-going operations and financial requirements of Northern Health and to provide Northern Health with adequate cash flow 

support to enable Northern Health to meet its current and future obligations as and when these fall due for a period up to September 2011 should this be required. 

(d) Reporting Entity 

The financial statements include all the controlled entities of Northern Health. 

The principle address is: 

185 Cooper Street 

Epping 

VIC 3076 

(e) Rounding Of Amounts 

All amounts shown in the financial report are expressed to the nearest $1,000 unless otherwise stated. 

(f) Principles of Consolidation 

The assets, liabilities, incomes and expenses of the Controlled Entities of Northern Health have been included at the values shown in their audited Annual Financial Reports. Subsidiaries are 

entities controlled by Northern Health; control exists when Northern Health has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In 

assessing control, potential voting rights that presently are exercisable are taken into account. Any inter-entity transactions have been eliminated on consolidation. The consolidated financial 

statements include the audited financial statements of the controlled entities listed in note 26. 

(g) Cash and Cash Equivalents 

Cash and cash equivalents comprise cash on hand and cash at bank, deposits at call and highly liquid investments with an original maturity of 3 months or less, which are readily convertible to 

known amounts of cash and are subject to insignificant risk of changes in value. 

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


Page 7 of 52




(h) 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. Bad debts are written off when identified. 

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

(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 excludes land held for sale and 

depreciable assets. 

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

realisable value. 

Bases used in assessing loss of service potential for inventories held for distribution include current replacement cost and technical or functional obsolescence. Technical obsolescence occurs 

when an item still functions for some or all of the tasks it was originally acquired to do, but no longer matches existing technologies. Functional obsolescence occurs when an item no longer 

functions the way it did when it was first acquired. 

Cost is assigned to land for sale (undeveloped, under development and developed) and to other high value, low volume inventory items on a specific identification of cost basis. 

Cost for all other inventory is measured on the basis of weighted average cost. 

Inventories acquired for no cost or nominal considerations are measured at current replacement cost at the date of acquisition. 

(j) 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. 

Northern Health classifies its other financial assets between current and non-current assets based on the purpose for which the assets were acquired. Management determines the classification 

of its other financial assets at initial recognition. 

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

Available-for-sale financial assets 

Other financial assets held by the entity 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 the cumulative gain or loss previously recognised in equity is included in profit or loss for the period. 

Fair value is determined in the manner described in Note 20. 

Held-to-maturity investments 

Where the Health Service has the positive intent and ability to hold investments to maturity they are measured at amortised cost less impairment losses. 

Loans and receivables 

Trade receivables, loans and other receivables are recorded at amortised cost, using the effective interest method, less impairment. Term deposits with maturity greater than three months are 

also measured at amortised cost, using the effective interest rate method, less impairment. 

The effective interest rate method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the 

rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or where appropriate, a shorter period. 

(k) Intangible Assets 

Intangible Assets represent identifiable non-monetary assets without physical substance such as patents, trademarks, computer software and development costs (where applicable). 

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

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

Amortisation is allocated to intangible assets with finite useful lives on a systematic (typically straight-line) basis over the asset’s useful life. Amortisation begins when the asset is available for 

use, that is, when it is in the location and condition necessary for it to be capable of operating in the manner intended by management. The amortisation period and the amortisation method for 

an intangible asset with a finite useful life are reviewed at least at the end of each annual reporting period. In addition, an assessment is made at each reporting date to determine whether 

there are indicators that the intangible asset concerned is impaired. If so, the assets concerned are tested as to whether their carrying value exceeds their recoverable amount. 


Page 8 of 52




Intangible Assets with indefinite useful lives are not amortised, but are tested for impairment annually or whenever there is an indication that the asset may be impaired. The useful lives of 

intangible assets that are not being amortised are reviewed each period to determine whether events and circumstances continue to support an indefinite useful life assessment for that asset. 

In addition, the entity tests all intangible assets with indefinite useful lives for impairment by comparing its recoverable amount with its carrying amount: 

annually, and 

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

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

Intangible assets with finite useful lives are amortised over a 3 year period (2009: 3 years). 

(l) Property, Plant and Equipment 

Crown Land is measured at fair value with regard to the property’s highest and best use after due consideration is made for any legal or constructive restrictions imposed on the asset, public 

announcements or commitments made in relation to the intended use of the asset. Theoretical opportunities that may be available in relation to the asset(s) are not taken into account until it is 

virtually certain that any restrictions will no longer apply. 

Land and Buildings are recognised initially at cost and subsequently measured at fair value less accumulated depreciation and impairment. Depreciated historical cost is generally a 

reasonable proxy for depreciated replacement cost because of the short lives of the assets concerned. 

Plant, Equipment and Vehicles are recognised initially at cost and subsequently measured at fair value less accumulated depreciation and impairment. Depreciated historical cost is generally 

a reasonable proxy for depreciated replacement cost because of the short lives of the assets concerned. 

Cultural, Collections, Heritage Assets and Other Non-Current Physical Assets that the State intends to preserve because of their unique historical, cultural or environmental attributes 

are measured at the cost of replacing the asset less, where applicable, accumulated depreciation calculated on the basis of such cost to reflect the already consumed or expired future economic 

benefits of the asset. 

Restrictive nature of cultural and heritage assets, Crown land and infrastructure assets 

During the reporting period, the entity may hold cultural assets, heritage assets, Crown land and infrastructure assets. 

Such assets are deemed worthy of preservation because of the social rather than financial benefits they provide to the community. The nature of these assets means that there are certain 

limitations and restrictions imposed on their use and/or disposal. 

(m) Revaluations of Non-current Physical Assets 

Non-current physical assets measured at fair value are revalued in accordance with FRD 103D. This revaluation process normally occurs every five years, based upon the asset’s Government 

Purpose Classification, but may occur more frequently if fair value assessments indicate material changes in values. Revaluation increments or decrements arise from differences between an 

asset’s carrying value and fair value. 

Revaluation increments are credited directly to the asset revaluation 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 income in the net result. 

Revaluation decrements are recognised immediately as expenses in the net result, except that, to the extent that a credit balance exists in the asset revaluation 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 an asset class 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. 

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

(n) Non Current Assets Classified as Held for Sale 

Non-current assets (including disposal groups) classified as held for sale are measured at the lower of carrying amount and fair value less costs to sell, and are not subject to depreciation. 

Non-current assets and disposal groups and related liabilities are treated as current and are classified as held for sale if their carrying amount will be recovered through a sale transaction rather 

than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset's sale (or disposal group) is expected to be completed within 12 months from 

the date of classification. 

(o) Depreciation and Amortisation 

Assets with a cost in excess of $1,000 (2008-09 and 2009-10) 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 and depreciation method for all assets are reviewed at least annually. This depreciation charge is 

not funded by the Department of Health. 


Page 9 of 52




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

2009 2010 

Buildings 22 - 45 Years 22 - 45 Years 

Plant & Equipment 10 Years 10 Years 

Medical Equipment 10 Years 10 Years 

Computers & Communication 3 Years 3 Years 

Non-Medical Equipment 10 Years 10 Years 

Motor Vehicles 4 Years 4 Years 

Furniture & Fittings 10 Years 10 Years 

In undertaking the valuation as at 30 June 2009 the valuers determined components of the building in determining depreciated replacement cost as follows: 

2009 2010 

Structure Shell / Building Fabric 

Site Engineering Services and Central Plant 

Fit Out 

Trunk Reticulated Building Systems 

(p) Net Gain/(Loss) on Non-Financial Assets 

Net gain/(loss) on Non-Financial Assets includes realised and unrealised gains and losses from revaluations, impairments and disposals of all physical assets and intangible assets. 

Disposal of Non-Financial Assets 

Any gain or loss on the sale of Non-Financial Assets is recognised at the date that control of the asset is passed to the buyer and is determined after deducting from the proceeds the carrying 

value of the asset at that time. 

Impairment of Non-Financial Assets 

Intangible Assets with indefinite useful lives (and Intangible Assets not yet available for use) are tested annually for impairment (i.e. as to whether their carrying value exceeds their 

recoverable amount, and so require write-downs) and whenever there is an indication that the asset may be impaired. All other assets are assessed annually for indications of impairment, 

except for: 

inventories; 

assets arising from construction costs; 

assets arising from employee benefits; 

financial instrument assets; 

non-current physical assets held for sale; 

If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their possible recoverable amount. Where an asset’s carrying value exceeds 

its recoverable amount, the difference is written-off as an expense except to the extent that the write-down can be debited to an asset revaluation reserve amount applicable to that class of 

asset. 

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. 

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. 

(q) Net Gain/(Loss) on Financial Instruments 

Net gain/(loss) on financial instruments includes realised and unrealised gains and losses from revaluations of financial instruments that are designated at fair value through profit or loss or 

held-for-trading, impairment and reversal of impairment for financial instruments at amortised cost, and disposals of financial assets. 

Revaluations of Financial Instruments at Fair Value 

The revaluation gain/(loss) on financial instruments at fair value excludes dividends or interest earned on financial assets, which is reported as part of income from transactions. 


Page 10 of 52


Impairment of Financial Assets 

Bad and doubtful debts are assessed on a regular basis. Those bad debts considered as written off are classified as an expense. 



Financial Assets have been assessed for impairment in accordance with Australian Accounting Standards. Where a financial asset’s fair value at balance date has reduced by 20 per cent or 

more than its cost price; or where its fair value has been less than its cost price for a period of 12 or more months, the financial instrument is treated as impaired. 

In order to determine an appropriate fair value as at 30 June 2010 for its portfolio of financial assets, Northern Health obtained a valuation based on the best available advice using an estimated 

market value through a reputable financial institution. This value was compared against valuation methodologies provided by the issuer as at 30 June 2010. These methodologies were 

explored and considered to be consistent with standard market valuation techniques. 

Prices obtained from both sources were compared and were generally consistent with the full portfolio. The above valuation process was used to quantify the level of impairment on the 

portfolio of financial assets as at year end. 

(r) Payables 

These amounts consist predominantly of liabilities for goods and services. 

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

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

The normal credit terms are usually Net 30 days. 

(s) Provisions 

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

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties 

surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows. 

(t) 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 when the transferee obtains control over them, irrespective of whether restrictions 

or conditions are imposed over the use of the contributions, unless received from another entity or agency as a consequence of a restructuring of administrative arrangements. In the latter 

case, such transfer will be recognised at carrying value. Contributions in the form of services are only recognised when a fair value can be reliably determined and the services would have been 

purchased if not donated. 

(u) Interest Bearing Liabilities 

Interest bearing liabilities in the Balance Sheet are recognised at fair value upon initial recognition. Subsequent to initial recognition, interest bearing liabilities are measured at amortised cost 

with any difference between the initial recognised amount and the redemption value being recognised in profit and loss over the period of the interest bearing liability using the effective interest 

rate method. Fair value is determined in the manner described in Note 20. 

(v) Functional and Presentation Currency 

The presentation currency of Northern Health is the Australian dollar, which has also been identified as the functional currency of Northern Health. 

(w) Goods and Services Tax 

Income, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of 

the cost of acquisition of the asset or as part of the expense. 

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

receivables or payables in the balance sheet. 

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

presented as operating cash flow. 

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


Page 11 of 52




(x) Employee Benefits 

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

Liabilities for wages and salaries, including non-monetary benefits, annual leave accumulating sick leave and accrued days off expected to be settled within 12 months of the reporting date are 

recognised in the provision for employee benefits in respect of employee’s services up to the reporting date, classified as current liabilities and measured at nominal values. 

Those liabilities that Northern Health are not expected to be settled within 12 months are recognised in the provision for employee benefits as current liabilities, measured at present value of 

the amounts expected to be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement. 

Long Service Leave 

Current Liability – unconditional LSL (representing 10 or more years of continuous service) is disclosed as a current liability even where Northern Health does not expect to settle the 

liability within 12 months because it will not have the unconditional right to defer the settlement of the entitlement should an employee take leave within 12 months. 

The components of this current LSL liability are measured at: 

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

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

Non-Current Liability – conditional LSL (representing less than 10 years of continuous service) is disclosed as a non-current liability. There is an unconditional right to defer the settlement 

of the entitlement until the employee has completed the requisite years of service. Conditional LSL is required to be measured at present value. 

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

Commonwealth Government guaranteed securities in Australia. 

Superannuation 

Defined contribution plans 

Contributions to defined contribution superannuation plans are expensed when incurred. 

Defined benefit plans 

The amount charged to the Operating Statement in respect of defined benefit superannuation plans represents the contributions made by the entity to the superannuation plans in respect of the 

services of current entity staff. Superannuation contributions are made to the plans based on the relevant rules of each plan. 

Employees of Northern Health are entitled to receive superannuation benefits and Northern Health contributes to both the defined benefit and defined contribution plans. The defined benefit 

plan(s) provide benefits based on years of service and final average salary. 

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

Fund 

Contributions Paid or Payable for the year 

2010 2009 

$’000 $’000 

Defined benefit plans: 

Health Super 602 588 

Defined contribution plans: 

Health Super 11,119 10,825 

HESTA 3,605 3,167 

Other 72 45 

Total 15,398 14,625 

Northern Health does not recognise any unfunded defined benefit liability in respect of the superannuation plans because the entity 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. 

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. 

On-Costs 

Employee benefits on-costs (workers compensation, superannuation, annual leave and LSL accrued while on LSL taken in service) are recognised separately from provisions for employee 

benefits. 


Page 12 of 52




(y) Finance Costs 

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

Finance costs include: 

interest on bank overdrafts and short-term and long-term borrowings; 

amortisation of discounts or premiums relating to borrowings; 

amortisation of ancillary costs incurred in connection with the arrangement of borrowings; and 

finance charges in respect of finance leases recognised in accordance with AASB 117 Leases . 

(z) Residential Aged Care Service 

The Northern Health Residential Aged Care Service operations are an integral part of Northern Health and shares its resources. An apportionment of land and buildings has been made based on 

floor space. The results of the two operations have been segregated based on actual revenue earned and expenditure incurred by each operation in note 2b to the financial statement. 

(aa) Intersegment Transactions 

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

(ab) Leases 

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

leases are classified as operating leases. 

Finance Leases 

Entity as lessor 

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

Entity as lessee 

Finance leases are recognised as assets and liabilities at amounts equal to the fair value of the lease property or, if lower, the present value of the minimum lease payment, each determined at 

the inception of the lease. The lease asset is depreciated over the shorter of the estimated useful life of the asset or the term of the lease. Minimum lease payments are allocated between the 

principal component of the lease liability, and the interest expense calculated using the interest rate implicit in the lease, and charged directly to the operating statement. 

Operating Leases 

Operating lease payments, including any contingent rentals, are recognised as an expense in the operating statement on a straight line basis over the lease term, except where another 

systematic basis is more representative of the time pattern of the benefits derived from the use of the leased asset. 

(ac) Income Recognition 

Income is recognised in accordance with AASB 118 Revenue and is recognised as 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 income when the entity gains control of the underlying assets in accordance with AASB 1004 Contributions. For reciprocal grants, Northern Health is deemed to have 

assumed control when the performance has occurred under the grant. For non-reciprocal grants, Northern Health is deemed to have assumed control when the grant is received or receivable. 

Conditional grants may be reciprocal or non-reciprocal depending on the terms of the grant. 

Indirect Contributions 

– Insurance is recognised as revenue following advice from the Department of Health. 

– Long Service Leave (LSL) – Revenue is recognised upon finalisation of movements in LSL liability in line with the arrangements set out in the Metropolitan Health and Aged Care Services 

Division Hospital Circular 14/2009. 

Patient and Resident Fees 

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

Private Practice Fees 

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


Page 13 of 52




Donations and Other Bequests 

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

Interest Revenue 

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

(ad) Fund Accounting 

Northern Health operates on a fund accounting basis and maintains three funds: Operating, Specific Purpose and Capital Funds. Northern Health's Capital and Specific Purpose Funds include 

unspent capital donations and receipts from fund-raising activities conducted solely in respect of these funds. 

(ae) Services Supported By Health Services Agreement and Services Supported By Hospital and Community Initiatives 

Activities classified as Services Supported by Health Services Agreement (HSA) are substantially funded by the Department of Health and includes Residential Aged Care Services (RACS) and 

are also funded from other sources such as the Commonwealth, patients and residents, while Services Supported by Hospital and Community Initiatives (Non HSA) are funded by the Health 

Service's own activities or local initiatives and/or the Commonwealth. 

(af) Comparative Information 

Where necessary the previous year’s figures have been reclassified to facilitate comparisons. 

(ag) Property, Plant & Equipment Revaluation Reserve 

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

(ah) Specific Restricted Purpose Reserve 

A specific restricted purpose reserve is established where the entity has possession or title to the funds but has no discretion to amend or vary the restriction and/or condition underlying the 

funds received. 

(ai) Contributed Capital 

Consistent with Australian Accounting Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities and FRD 119 Contributions by Owners , appropriations for 

additions to the net asset base have been designated as contributed capital. Other transfers that are in the nature of contributions or distributions that have been designated as contributed 

capital are also treated as contributed capital. 

(aj) Commitments 

Commitments are not recognised in the balance sheet. Commitments are disclosed at their nominal value and are inclusive of the GST payable. 

(ak) Contingent assets and contingent liabilities 

Contingent assets and contingent liabilities are not recognised in the Balance Sheet, but are disclosed by way of note,. and if quantifiable, are measured at nominal value. Contingent assets and 

contingent liabilities are presented inclusive of the GST receivable or payable respectively. 

(al) Net Result Before Capital & Specific Items 

The subtotal entitled ‘Net result Before Capital & Specific Items’ is included in the Comprehensive Operating Statement to enhance the understanding of the financial performance of Northern 

Health. This subtotal reports the result excluding items such as capital grants, assets received or provided free of charge, depreciation, and items of an unusual nature and amount such as 

specific revenues and expenses. The exclusion of these items are made to enhance matching of income and expenses so as to facilitate the comparability and consistency of results between 

years and Victorian Public Health Services. The Net result Before Capital & Specific Items is used by the management of Northern Health, the Department of Health and the Victorian 

Government to measure the ongoing result of Health Services in operating hospital services. 

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

Capital purpose income, which comprises all tied grants, donations and bequests received for the purpose of acquiring non-current assets, such as capital works, plant and equipment 

or intangible assets. It also includes donations of plant and equipment (refer note 1 (t)). Consequently the recognition of revenue as capital purpose income is based on the intention of 

the provider of the revenue at the time the revenue is provided. 


Page 14 of 52


Specific income/expense, comprises the following items, where material: 

Voluntary departure packages 

Write-down of inventories 

Non-current asset revaluation increments/decrements 

Diminution in investments 

Restructuring of operations (disaggregation/aggregation of health services) 

Litigation settlements 

Non-current assets lost or found 

Forgiveness of loans 

Reversals of provisions 



Voluntary changes in accounting policies (which are not required by an accounting standard or other authoritative pronouncement of the Australian Accounting Standards 

Board) 

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

(p) and (q) 

Depreciation and amortisation, as described in note 1 (k) and (o) 

Assets provided or received free of charge, as described in note 1 (t) 

Expenditure using capital purpose income, comprises expenditure which either falls below the asset capitalisation threshold (note 1 (k) and (l), or doesn’t meet asset recognition 

criteria and therefore does not result in the recognition of an asset in the balance sheet, where funding for that expenditure is from capital purpose income 

(am) Category Groups 

Northern Health has used the following category groups for reporting purposes for the current and previous financial years. 

Admitted Patient Services (Admitted Patients) comprises all recurrent health revenue/expenditure on admitted patient services, where services are delivered in public hospitals, or free 

standing day hospital facilities, or alcohol and drug treatment units or hospitals specialising in dental services, hearing and ophthalmic aids. 

Outpatient Services (Outpatients) comprises all recurrent health revenue/expenditure on public hospital type outpatient services, where services are delivered in public hospital outpatient 

clinics, or free standing day hospital facilities, or rehabilitation facilities, or alcohol and drug treatment units, or outpatient clinics specialising in ophthalmic aids or palliative care. 

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

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

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

Off Campus, Ambulatory Services (Ambulatory) comprises all recurrent health revenue/expenditure on public hospital type services including palliative care facilities and rehabilitation 

facilities, as well as services provided under the following agreements: Services that are provided or received by hospitals (or area health services) but are delivered/received outside a hospital 

campus, services which have moved from a hospital to a community setting since June 1998, services which fall within the agreed scope of inclusions under the new system, which have been 

delivered within hospital’s i.e. in rural/remote areas. 

Residential Aged Care including Mental Health (RAC incl. Mental Health) referred to in the past as psychogeriatric residential services, comprises those Commonwealth-licensed 

residential aged care services in receipt of supplementary funding from DHS under the mental health program. It excludes all other residential services funded under the mental health 

program, such as mental health funded community care units (CCUs) and secure extended care units (SECs). 

Other Services excluded from Australian Health Care Agreement (AHCA) (Other) comprises revenue/expenditure for services not separately classified above, including: Public health 

services including Laboratory testing, Blood Borne Viruses / Sexually Transmitted Infections clinical services, Kooris liaison officers, immunisation and screening services, Drugs services 

including drug withdrawal, counselling and the needle and syringe program, Dental Health services including general and specialist dental care, school dental services and clinical education, 

Disability services including aids and equipment and flexible support packages to people with a disability, Community Care programs including sexual assault support, early parenting services, 

parenting assessment and skills development, and various support services. Health and Community Initiatives also falls in this category group. 


Page 15 of 52




(an) New Accounting Standards and Interpretations 

Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2010 reporting period. As at 30 June 2010, the following standards and 

interpretations had been issued but were not mandatory for financial years ending 30 June 2010. Northern Health has not and does not intend to adopt these standards early. 

Standard / Interpretation Summary 

AASB 9 Financial instruments This standard simplifies requirements for the 

classification and measurement of financial assets 

resulting from Phase 1 of the IASB’s project to replace 

IAS 39 Financial instruments: recognition and 

measurement (AASB 139 financial Instruments: 

recognition and measurement). 

Applicable for reporting periods beginning on or 

ending on 

Impact on Entities Annual Statements 

Beginning 1 Jan 2013 Detail of impact still being assessed. 

AASB 2009-11 Amendments to Australian Accounting 

Standards arising from AASB 9 [AASB 1, 3, 4, 5, 7, 

101, 102, 108, 112, 118, 121, 127, 128, 131, 132, 

136, 139, 1023 and 1038 and Interpretations 10 and 

12] 

AASB 2009-5 Further amendments to Australian 

Accounting Standards arising from the annual 

improvements project (AASB 5, 8, 101, 107, 117, 

118, 136 and 139) 

This gives effect to consequential changes arising from 

the issuance of AASB 9. 

Some amendments will result in accounting changes 

for presentation, recognition or measurement 

purposes, while other amendments will relate to 

terminology and editorial changes. 

Beginning 1 Jan 2013 Detail of impact still being assessed. 

Beginning 1 Jan 2010 Terminology and editorial changes. Impact minor. 


Standards – additional exemptions for first-time 

adopters [AASB 1] 

Applies to Health Services adopting Australian 

Accounting Standards for the first time, to ensure 

Health Services will not face undue cost or effort in 

the transition process in particular situations. 

Beginning 1 Jan 2010 No impact. Relates to first time adopters of Australian 

Accounting Standards. 

AASB 124 Related party disclosures (Dec 2009) Government related Health Services have been 

granted partial exemption with certain disclosure 


Standards [AASB 5, 8, 108, 110, 112, 119, 133, 137, 

139, 1023 and 1031 and Interpretations 2, 4, 16, 

1039 and 1052] 

AASB 2009-14 Amendments to Australian 

Interpretation – Prepayments of a minimum funding 

requirement [AASB Interpretation 14] 

requirements. 

This standard amends AASB 8 to require an entity to 

exercise judgement in assessing whether a 

government and Health Services known to be under 

the control of that government are considered a single 

customer for purposes of certain operating segment 

disclosures. This standard also makes numerous 

editorial amendments to other AASs. 

Amendment to Interpretation 14 arising from the 

issuance of Prepayments of a minimum funding 

requirement 

Beginning 1 Jan 2011 Impact expected to be insignificant. 

Beginning 1 Jan 2011 AASB 8 does not apply to Health Services therefore no 

impact expected. Otherwise, only editorial changes 

arising from amendments to other standards, impact 

insignificant. 

Beginning 1 Jan 2011 Impact expected to be insignificant. 


Page 16 of 52

Note 2: Revenue 



Parent Consolidated 

HSA HSA Non HSA Non HSA Total Total HSA HSA Non HSA Non HSA Total Total 

2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 

$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 

Revenue from Operating Activities 

Government Grants 

- Department of Health 245,323 229,253 - - 245,323 229,253 245,323 229,254 - - 245,323 229,254 

- Commonwealth Government 

- Residential Aged Care Subsidy 2,190 2,080 - - 2,190 2,080 2,190 2,080 - - 2,190 2,080 

- Other 5,693 5,445 61 64 5,754 5,509 5,693 5,445 61 74 5,754 5,519 

Total Government Grants 253,206 236,778 61 64 253,267 236,842 253,206 236,779 61 74 253,267 236,853 

Indirect Contributions by Department of Health 

- Insurance 3,943 3,562 - - 3,943 3,562 3,943 3,562 - - 3,943 3,562 

- Long Service Leave 271 1,550 - - 271 1,550 271 1,550 - - 271 1,550 

Total Indirect Contributions by 

Department of Health 4,214 5,112 - - 4,214 5,112 4,214 5,112 - - 4,214 5,112 

Patient and Resident Fees 

- Patient and Resident Fees (refer note 2b) 9,231 9,014 242 - 9,473 9,014 9,231 9,014 242 237 9,473 9,251 

- Residential Aged Care (refer note 2b) 502 427 - - 502 427 502 427 - - 502 427 

Total Patient & Resident Fees 9,733 9,441 242 - 9,975 9,441 9,733 9,441 242 237 9,975 9,678 

Business Units & Specific Purpose Funds 

- Private Practice and Other Patient Activities 

Fees - - 729 65 729 65 - - 729 65 729 65 

- Pharmacy Services - - 1,661 1,869 1,661 1,869 - - 1,661 1,869 1,661 1,869 

- Catering - - 272 386 272 386 - - 272 386 272 386 

- Cafeteria - - 255 227 255 227 - - 255 227 255 227 

- Car Park - - 1,564 1,628 1,564 1,628 - - 1,564 1,628 1,564 1,628 

- Property Income - - 4,430 3,035 4,430 3,035 - - 4,430 3,035 4,430 3,035 

- Research - - 146 86 146 86 - - 146 86 146 86 

Total Business Units & Specific Purpose 

Funds - - 9,057 7,296 9,057 7,296 - - 9,057 7,296 9,057 7,296 

Donations & Bequests 5 36 364 166 369 202 5 36 521 191 526 227 

Recoupment from Private Practice for Use of 

Hospital Facilities 1,818 1,568 14 23 1,832 1,591 1,818 1,568 14 23 1,832 1,591 

Other Revenue from Operating Activities 4,227 3,212 1,378 2,816 5,605 6,028 4,227 3,212 1,378 3,276 5,605 6,488 

Sub-Total Revenue from Operating 

Activities 273,203 256,147 11,116 10,365 284,319 266,512 273,203 256,148 11,273 11,097 284,476 267,245 


Page 17 of 52



Note 2: Revenue (Continued) 



2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 

$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 

Revenue from Non-Operating Activities 

Interest & Dividends 501 674 1 - 502 674 501 674 15 16 516 690 

Sub-Total Revenue from Non-Operating 

Activities 501 674 1 - 502 674 501 674 15 16 516 690 

Revenue from Capital Purpose Income 

State Government Capital Grants 

- Targeted Capital Works and Equipment - - 22,557 5,396 22,557 5,396 - - 22,557 5,396 22,557 5,396 

Residential Accomodation Payments (refer note 

2b) - - 78 73 78 73 - - 78 73 78 73 

Donations & Bequests - - 4 91 4 91 - - 4 - 4 - 

Net Gain on Disposal of Financial Assets - - 1,257 - 1,257 - - - 1,257 - 1,257 - 

Net Gain on Disposal of Non-Financial Assets 

(refer note 2c) - - 618 21 618 21 - - 618 21 618 21 

Sub-Total Revenue from Capital Purpose 

Income - - 24,514 5,581 24,514 5,581 - - 24,514 5,490 24,514 5,490 

Total Revenue (refer to note 2a) 273,704 256,821 35,631 15,946 309,335 272,767 273,704 256,822 35,802 16,603 309,506 273,425 

Indirect contributions by Department of Health: Department of Health makes certain payments on behalf of the Health Service. These amounts have been brought to account in determining the 

operating result for the year by recording them as revenue and expenses. 


Page 18 of 52

Note 2a: Analysis of Revenue by Source 

(based on the consolidated view of note 2) 



Admitted 

Patients Outpatients EDS 

Ambulatory 

Other Total 

2010 2010 2010 2010 2010 2010 2010 2010 2010 

$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 

Revenue from Services Supported by Health 

Services Agreement 

Government Grants 159,788 16,012 15,095 51,644 2,190 7,577 135 765 253,206 

Indirect contributions by Department of Health 4,214 - - - - - - - 4,214 

Patient & Resident Fees 5,498 351 28 3,275 502 79 - - 9,733 

Donations & Bequests (non capital) - - - - - - - 5 5 

Recoupment from Private Practice for Use of Hospital 

Facilities 1,817 - - - - - - 1 1,818 

Other Revenue from Operating Activities 1,080 20 25 481 - 31 - 2,590 4,227 

Interest & Dividends - - - - - - - 501 501 

Sub-Total Revenue from Services Supported by 

Health Services Agreement 172,397 16,383 15,148 55,400 2,692 7,687 135 3,862 273,704 

RAC incl. 

Mental 

Health 

Aged Care 

Primary 


Revenue from Services Supported by Hospital and 

Community Initiatives 


Business Units & Specific Purpose Funds - - - - - - - 9,057 9,057 

Other - - - - - - - 1,710 1,710 

Capital Purpose Income (refer note 2) - - - - - - - 24,514 24,514 


Hospital and Community Initiatives - - - - - - - 35,802 35,802 

Total Revenue 172,397 16,383 15,148 55,400 2,692 7,687 135 39,664 309,506 




Page 19 of 52

Note 2a: Analysis of Revenue by Source (Continued) 

(based on the consolidated view of note 2) 



Admitted 

Patients 

Outpatients EDS Ambulatory 

Other Total 

2009 2009 2009 2009 2009 2009 2009 2009 2009 

$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 

Revenue from Services Supported by Health 

Services Agreement 

Government Grants 148,675 14,351 13,137 50,935 2,080 7,196 200 205 236,779 

Indirect contributions by Department of Health 5,112 - - - - - - - 5,112 

Patient & Resident Fees 4,704 17 - 4,254 427 39 - - 9,441 


Recoupment from Private Practice for Use of Hospital 

Facilities 1,566 2 - - - - - - 1,568 

Other Revenue from Operating Activities 1,612 17 35 768 - 70 - 710 3,212 

Interest & Dividends - - - - - - - 674 674 


Health Services Agreement 161,669 14,387 13,172 55,957 2,507 7,305 200 1,625 256,822 

RAC incl. 

Mental 


Aged Care 

Primary 


Revenue from Services Supported by Hospital and 

Community Initiatives 


Business Units & Specific Purpose Funds - - - - - - - 7,296 7,296 

Other - - - - - - - 3,626 3,626 

Capital Purpose Income (refer note 2) - - - - - - - 5,490 5,490 



Total Revenue 161,669 14,387 13,172 55,957 2,507 7,305 200 18,228 273,425 




Page 20 of 52

Note 2b: Patient and Resident Fees 



Parent Entity Parent Entity Consol'd Consol'd 

2010 2009 2010 2009 

$'000 $'000 $'000 $'000 

Patient and Resident Fees Raised 

Recurrent: 

Acute 

– Inpatients 9,122 8,997 9,122 8,997 

– Outpatients 351 17 351 254 

Residential Aged Care 

– Generic 502 427 502 427 

Total Recurrent 9,975 9,441 9,975 9,678 

Capital Purpose: 

Residential Accomodation Payments* 78 73 78 73 

Total Capital 78 73 78 73 

(*) This includes accommodation charges, interest earned on accommodation bonds and retention amount. 

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


2010 2009 2010 2009 

$'000 $'000 $'000 $'000 

Proceeds from Disposals of Non-Current Assets 

Land & Buildings 1,818 - 1,818 - 

Medical Equipment 1 2 1 2 

Motor Vehicles 106 19 106 19 

Total Proceeds from Disposal of Non-Current Assets 1,925 21 1,925 21 

Less: Written Down Value of Non-Current Assets Sold 

Land & Buildings 1,307 - 1,307 - 

Medical Equipment - - - - 

Motor Vehicles - - - - 

Total Written Down Value of Non-Current Assets Sold 1,307 - 1,307 - 

Net Gains/(Losses) on Disposal of Non-Current Assets 618 21 618 21 


Page 21 of 52

Note 3: Expenses 





2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 

$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 

Employee Benefits 

Salaries & Wages 166,731 159,173 2,352 1,590 169,083 160,763 166,828 159,173 2,355 1,697 169,183 160,870 

WorkCover Premium 1,827 1,524 - 14 1,827 1,538 1,827 1,524 - 14 1,827 1,538 

Departure Packages 340 155 - - 340 155 340 155 - - 340 155 

Long Service Leave 4,310 4,379 48 24 4,358 4,403 4,310 4,379 48 24 4,358 4,403 

Superannuation 15,062 14,202 170 115 15,232 14,317 15,062 14,202 170 115 15,232 14,317 

Total Employee Benefits 188,270 179,433 2,570 1,743 190,840 181,176 188,367 179,433 2,573 1,850 190,940 181,283 

Non Salary Labour Costs 

Fees for Visiting Medical Officers 1,595 1,609 3 (1) 1,598 1,608 1,595 1,609 4 - 1,599 1,609 

Agency Costs - Nursing 3,247 4,996 1 1 3,248 4,997 3,247 4,996 1 289 3,248 5,285 

Agency Costs - Other 4,122 2,185 1,338 1,013 5,460 3,198 4,122 2,185 1,338 1,137 5,460 3,322 

Total Non Salary Labour Costs 8,964 8,790 1,342 1,013 10,306 9,803 8,964 8,790 1,343 1,426 10,307 10,216 

Supplies & Consumables 

Drug Supplies 8,573 8,375 572 623 9,145 8,998 8,573 8,375 572 623 9,145 8,998 

S100 Drugs 1,266 1,827 1,040 1,260 2,306 3,087 1,266 1,827 1,040 1,260 2,306 3,087 

Medical, Surgical Supplies and Prosthesis 31,375 33,388 42 48 31,417 33,436 31,375 33,388 47 48 31,422 33,436 

Pathology Supplies 5,842 5,706 58 67 5,900 5,773 5,842 5,706 58 67 5,900 5,773 

Food Supplies 4,890 4,846 194 212 5,084 5,058 4,890 4,846 194 212 5,084 5,058 

Total Supplies & Consumables 51,946 54,142 1,906 2,210 53,852 56,352 51,946 54,142 1,911 2,210 53,857 56,352 

Other Expenses from Continuing 

Operations 

Domestic Services & Supplies 6,521 5,844 236 282 6,757 6,126 6,521 5,844 236 282 6,757 6,126 

Fuel, Light, Power and Water 1,927 2,112 264 41 2,191 2,153 1,927 2,112 264 41 2,191 2,153 

Insurance costs funded by DHS 3,943 3,562 - - 3,943 3,562 3,943 3,562 - - 3,943 3,562 

Motor Vehicle Expenses 352 302 33 37 385 339 352 302 33 39 385 341 

Repairs & Maintenance 2,259 2,721 258 188 2,517 2,909 2,259 2,721 258 188 2,517 2,909 

Maintenance Contracts 1,722 1,559 - 5 1,722 1,564 1,722 1,559 - 5 1,722 1,564 

Patient Transport 1,510 1,323 - 14 1,510 1,337 1,510 1,323 - 14 1,510 1,337 

Bad & Doubtful Debts 491 236 18 224 509 460 491 236 18 - 509 236 

Lease Expenses 659 690 7 2 666 692 659 690 7 39 666 729 

Other Administrative Expenses 9,294 7,706 1,195 2,920 10,489 10,626 9,294 7,706 1,202 2,934 10,496 10,640 

Audit Fees 

- VAGO - Audit of Financial Statements 69 73 - - 69 73 69 73 2 10 71 83 

- Other 261 257 - - 261 257 261 257 2 - 263 257 

Total Other Expenses from Continuing 

Operations 29,008 26,385 2,011 3,713 31,019 30,098 29,008 26,385 2,022 3,552 31,030 29,937 


Page 22 of 52

Note 3: Expenses (Continued) 





2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 

$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 

Expenditure using Capital Purpose Income 

Employee Benefits - - - - - - - - - - - - 

Non Salary Labour Costs - - - - - - - - - - - - 

Other Expenses - - - - - - - - - - - - 

Total Expenditure using Capital Purpose 

Income - - - - - - - - - - - - 

Impairment of Financial Assets 

- Held-to-Maturity Investments - - - 1,417 - 1,417 - - - 1,417 - 1,417 

Total Impairment of Financial Assets - - - 1,417 - 1,417 - - - 1,417 - 1,417 

Depreciation & Amortisation - - 20,160 9,763 20,160 9,763 - - 20,160 9,767 20,160 9,767 

Finance Costs 34 67 - - 34 67 34 67 - - 34 67 

Total 34 67 20,160 11,180 20,194 11,247 34 67 20,160 11,184 20,194 11,251 

Total Expenses 278,222 268,817 27,989 19,859 306,211 288,676 278,319 268,817 28,009 20,222 306,328 289,039 


Page 23 of 52

Note 3a: Analysis of Expenses by Source 

(based on the consolidated view) 



2010 2010 2010 2010 2010 2010 2010 2010 2010 

$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 

Services Supported by Health Services Agreement 

Employee Benefits 133,959 11,149 6,848 28,641 1,713 2,442 69 209 185,030 

Non Salary Labour Costs 5,557 2,303 1,539 1,720 476 855 32 819 13,301 

Supplies & Consumables 30,613 569 6,927 12,670 63 1,858 - 1,246 53,946 

Other Expenses from Continuing Operations 15,736 1,141 399 6,255 615 1,167 20 709 26,042 

Sub-Total Expenses from Services Supported by Health 

Services Agreement 185,865 15,162 15,713 49,286 2,867 6,322 121 2,983 278,319 

Services Supported by Hospital and Community 

Initiatives 

Admitted 

Patients Outpatients EDS Ambulatory 

RAC incl. 

Mental 

Health Aged Care 

Employee Benefits - - - - - - - 2,182 2,182 

Non Salary Labour Costs - - - - - - - 1,734 1,734 

Supplies & Consumables - - - - - - - 1,911 1,911 

Other Expenses from Continuing Operations - - - - - - - 2,022 2,022 

Depreciation & Amortisation (refer note 4) - - - - - - - 20,160 20,160 

Sub-Total Expense from Services Supported by 


Primary 


Other 

Total 

Services Supported by Capital Sources 

Impairment of Financial Assets (refer note 3) - - - - - - - - - 

Sub-Total Expenses from Services Supported by 

Capital Resources - - - - - - - - - 

Total Expenses 185,865 15,162 15,713 49,286 2,867 6,322 121 30,992 306,328 


Page 24 of 52

Note 3a: Analysis of Expenses by Source (Continued) 

(based on the consolidated view) 

Admitted 

Patients Outpatients EDS Ambulatory 



RAC incl. 

Mental 

Health Aged Care 

2009 2009 2009 2009 2009 2009 2009 2009 2009 

$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 

Services Supported by Health Services Agreement 

Employee Benefits 129,396 10,310 6,261 27,683 1,672 3,795 91 225 179,433 

Non Salary Labour Costs 5,430 270 1,293 1,081 520 170 26 - 8,790 

Supplies & Consumables 29,097 1,171 6,974 12,449 74 2,982 - 1,395 54,142 

Other Expenses from Continuing Operations 16,477 332 431 8,633 494 13 16 56 26,452 

Sub-Total Expenses from Services Supported by Health 

Services Agreement 180,400 12,083 14,959 49,846 2,760 6,960 133 1,676 268,817 

Primary 


Other 

Total 

Services Supported by Hospital and Community 

Initiatives 

Employee Benefits - - - - - - - 1,554 1,554 

Non Salary Labour Costs - - - - - - - 1,722 1,722 

Supplies & Consumables - - - - - - - 2,210 2,210 

Other Expenses from Continuing Operations - - - - - - - 3,552 3,552 

Depreciation & Amortisation (refer note 4) - - - - - - - 9,767 9,767 

Sub-Total Expense from Services Supported by 


Services Supported by Capital Sources 

Impairment of Financial Assets (refer note 3) - - - - - - - 1,417 1,417 

Sub-Total Expenses from Services Supported by 

Capital Resources - - - - - - - 1,417 1,417 

Total Expenses 180,400 12,083 14,959 49,846 2,760 6,960 133 21,898 289,039 


Page 25 of 52



Note 4: Depreciation and Amortisation 


2010 2009 2010 2009 

$'000 $'000 $'000 $'000 

Depreciation 

Buildings 15,724 5,508 15,724 5,508 

Plant & Equipment 182 132 182 132 

Medical Equipment 2,204 2,159 2,204 2,159 

Computers & Communication 1,038 927 1,038 931 

Furntiure & Fittings 79 51 79 51 

Motor Vehicles 253 280 253 280 

Non Medical Equipment 145 82 145 82 

Total Depreciation 19,625 9,139 19,625 9,143 

Amortisation 

Intangible Assets 535 624 535 624 

Total Amortisation 535 624 535 624 

Total Depreciation & Amortisation 20,160 9,763 20,160 9,767 

Note 5: Finance Costs 


2010 2009 2010 2009 

$'000 $'000 $'000 $'000 

Interest on Long Term Borrowings 34 67 34 67 

TOTAL 34 67 34 67 

Note 6: Cash and Cash Equivalents 

For the purposes of the Cash Flow Statement, cash assets includes cash on hand and in banks, and short-term deposits which are readily convertible to cash on hand, and are subject to an insignificant 

risk of change in value, net of outstanding bank overdrafts. 


2010 2009 2010 2009 

$'000 $'000 $'000 $'000 

Cash on Hand 32 33 32 33 

Cash at Bank 888 3,797 1,350 4,328 

TOTAL 920 3,830 1,382 4,361 

 

Cash for Health Service Operations (as per Cash Flow Statement) 915 3,822 1,377 4,353 

Cash for Monies Held in Trust 5 8 5 8 

TOTAL 920 3,830 1,382 4,361 


Page 26 of 52

Note 7: Receivables 




2010 2009 2010 2009 

$'000 $'000 $'000 $'000 

CURRENT 

Contractual 

Trade Debtors 2,254 2,668 2,254 2,668 

Patient Fees 3,257 3,601 3,257 3,608 

Accrued Investment Income 28 4 28 4 

Accrued Revenue - Other 480 258 480 258 

Less Allowance for Doubtful Debts 

Trade Debtors (150) (174) (150) (174) 

Patient Fees (549) (438) (549) (438) 

5,320 5,919 5,320 5,926 

Statutory 

GST Receivable 1,397 2,034 1,397 2,036 

1,397 2,034 1,397 2,036 

TOTAL CURRENT RECEIVABLES 6,717 7,953 6,717 7,962 

NON CURRENT 

Statutory 

Long Service Leave - DHS 2,580 2,309 2,580 2,309 

TOTAL NON-CURRENT RECEIVABLES 2,580 2,309 2,580 2,309 

TOTAL RECEIVABLES 9,297 10,262 9,297 10,271 


2010 2009 2010 2009 

(a) Movement in the Allowance for Doubtful Debts $'000 $'000 $'000 $'000 

Balance at beginning of year 612 634 612 634 

Amounts written off during the year (424) (482) (184) (258) 

Increase/(decrease) in allowance recognised in profit or loss 511 460 271 236 

Balance at end of year 699 612 699 612 

(b) Ageing analysis of receivables 

Please refer to note 20(b) for the ageing analysis of receivables 

(c) Nature and extent of risk arising from receivables 

Please refer to note 20(b) for the nature and extent of credit risk arising from receivables 


Page 27 of 52

Note 8: Other Financial Assets 



Operating Fund Specific Purpose Fund Capital Fund Parent Entity 

Consol'd 

2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 

$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 

NON CURRENT 

Available for Sale - At Fair Value - 1,440 - - - - - 1,440 - 1,440 

TOTAL - 1,440 - - - - - 1,440 - 1,440 

Represented by: 

Health Service Investments - 1,440 - - - - - 1,440 - 1,440 

TOTAL - 1,440 - - - - - 1,440 - 1,440 

(b) Ageing analysis of Other Financial Assets 

Please refer to note 20(b) for the ageing analysis of other financial assets 

(c) Nature and extent of risk arising from Other Financial Assets 

Please refer to note 20(b) for the nature and extent of credit risk arising from other financial assets 

(d) Available for Sale Investments are represented by: 

Beryl Finance Ltd Global Bank Credit Linked Notes maturing 20 September 2014. The cost base of these notes was $1.5m and an impairment charge for the full value of these notes has been 

recognised in prior years with the fair value recorded at Nil as at 30 June 2010. 


Page 28 of 52

Note 9: Inventories 




2010 2009 2010 2009 

$'000 $'000 $'000 $'000 

Pharmaceuticals (at cost) 909 873 909 873 

TOTAL INVENTORIES 909 873 909 873 

Note 10: Non-Financial Assets Classified as Held-For-Sale 


2010 2009 2010 2009 

$'000 $'000 $'000 $'000 

Freehold Land 358 1,420 358 1,420 

Written Down Value of Buildings at cost 19 209 19 209 

Other costs of sale - 30 - 30 

TOTAL 377 1,659 377 1,659 

Note 11: Other Assets 


CURRENT 2010 2009 2010 2009 

$'000 $'000 $'000 $'000 

Prepayments 216 76 216 76 

TOTAL 216 76 216 76 


Page 29 of 52

Note 12: Property, Plant & Equipment 




2010 2009 2010 2009 

$'000 $'000 $'000 $'000 

Land 

Land at Valuation 33,449 33,449 33,449 33,449 

Total Land 33,449 33,449 33,449 33,449 

Buildings 

Buildings 29,990 - 29,990 - 

Less Acc'd Depreciation 191 - 191 - 

Buildings at valuation 226,480 226,480 226,480 226,480 

Less Acc'd Depreciation 15,533 - 15,533 - 

Total Buildings 240,746 226,480 240,746 226,480 

Plant and Equipment 

Plant and Equipment 1,923 1,483 1,923 1,483 

Less Acc'd Depreciation 739 557 739 557 

Total Plant and Equipment 1,184 926 1,184 926 

Medical Equipment 

Medical Equipment 23,583 22,042 23,583 22,042 

Less Acc'd Depreciation 13,164 10,960 13,164 10,960 

Total Medical Equipment 10,419 11,082 10,419 11,082 

Computers & Communication 

Computers & Communication 6,947 5,513 6,947 5,531 


Total Computers & Communication 2,125 1,742 2,125 1,739 

Furniture & Fittings 

Furniture & Fittings 1,913 564 1,913 564 


Total Furniture & Fittings 1,735 470 1,735 465 

Non-Medical Equipment 

Non-Medical Equipment 1,472 1,251 1,472 1,259 


Total Non Medical Equipment 1,054 977 1,054 985 

Motor Vehicles 

Motor Vehicles 1,754 1,774 1,754 1,774 


Total Motor Vehicles 292 561 292 561 

Assets Under Contruction / Work In Progress 1,661 10,525 1,661 10,534 

TOTAL 292,665 286,212 292,665 286,221 


Page 30 of 52

Note 12: Property, Plant & Equipment (continued) 



Reconciliations of the carrying amounts of each class of asset for the consolidated entity at the beginning and end of the previous and current financial year is set out below. 

Land Buildings Plant & Medical Assets Under Computers & Furniture & Non Medical Motor Total 

Equipment Equipment Construction Communication Fittings Equipment Vehicles 

$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 

Balance at 1 July 2008 37,489 200,417 620 13,220 1,470 1,391 436 196 606 255,845 

Additions - - 407 2,907 9,634 1,754 117 830 221 15,870 

Classified as held for sale (1,420) (209) - - - - - - - (1,629) 

Revaluation increments/(decrements) (2,523) 28,305 - - - - - - - 25,782 

Net Transfers between classes (97) 3,475 31 (2,886) (570) (475) (37) 41 14 (504) 

Depreciation and Amortisation (note 4) - (5,508) (132) (2,159) - (931) (51) (82) (280) (9,143) 

Balance at 1 July 2009 33,449 226,480 926 11,082 10,534 1,739 465 985 561 286,221 

Additions - 2,025 423 1,303 21,720 355 191 73 - 26,090 

Disposals - - - - - - - - (16) (16) 

Net Transfers between classes - 27,965 17 238 (30,593) 1,069 1,158 141 - (5) 

Depreciation and Amortisation (note 4) - (15,724) (182) (2,204) - (1,038) (79) (145) (253) (19,625) 

Balance at 30 June 2010 33,449 240,746 1,184 10,419 1,661 2,125 1,735 1,054 292 292,665 

Land and buildings carried at valuation 

An independent valuation of the Health Service's property, was performed by the Valuer-General Victoria to determine the fair value of the land and buildings. The valuation, which conforms to 

Australian Valuation Standards, was determined by reference to the amounts for which assets could be exchanged between knowledgeable willing parties in an arm's length transaction. The valuation 

was based on independent assessments. 

The effective date of the valuation is 30 June 2009. 

Plant and all other equipment 

 


Page 31 of 52

Note 13: Intangible Assets 




2010 2009 2010 2009 

$'000 $'000 $'000 $'000 

Development Costs Capitalised 2,775 2,655 2,775 2,655 

Less Acc'd Amortisation 2,221 1,687 2,221 1,687 

Total Written Down Value 554 968 554 968 

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

Development Total 

Costs 

$'000 $'000 

Balance at 1 July 2008 347 347 

Additions 741 741 

Net Transfers between classes 504 504 

Amortisation (note 4) (624) (624) 

Balance at 1 July 2009 968 968 

Additions 116 116 

Net Transfers between classes 5 5 

Amortisation (note 4) (535) (535) 

Balance at 30 June 2010 554 554 


Page 32 of 52

Note 14: Payables 




2010 2009 2010 2009 

$'000 $'000 $'000 $'000 

CURRENT 

Contractual 

Trade Creditors 3,780 7,074 3,780 7,074 

Accrued Expenses 9,570 9,889 9,572 9,888 

Salary Packaging 1,760 748 1,760 748 

Inter Health Services 3,410 6,507 3,410 6,621 

Income In Advance 476 - 476 - 

Other 347 477 349 479 

19,343 24,695 19,347 24,810 

Statutory 

Department of Human Services 1,587 924 1,587 924 

1,587 924 1,587 924 

TOTAL CURRENT 20,930 25,619 20,934 25,734 

NON CURRENT 

Statutory 

Department of Human Services - 46 - 46 

TOTAL NON CURRENT - 46 - 46 

TOTAL 20,930 25,665 20,934 25,780 

(a) Maturity analysis of Payables 

Please refer to Note 20c for the ageing analysis of payables. 

(b) Nature and extent of risk arising from Payables 

Please refer to note 20c for the nature and extent of risks arising from payables. 


Page 33 of 52

Note 15: Interest Bearing Liabilities 




2010 2009 2010 2009 

$'000 $'000 $'000 $'000 

CURRENT 

Treasury Corporation of Victoria 144 144 144 144 

Total Current 144 144 144 144 

NON CURRENT 

Treasury Corporation of Victoria 711 747 711 747 

Total Non-Current 711 747 711 747 

Total Interest Bearing liabilities 855 891 855 891 

(a) Maturity analysis of Interest Bearing Liabilities 

Please refer to note 20(c) for the ageing analysis of interest bearing liabilities. 

(b) Nature and extent of risk arising from Interest Bearing Liabilities 

Please refer to note 20(c) for the nature and extent of risks arising from interest bearing liabilities. 

(c) Defaults and breaches 

During the current and prior year, there were no defaults and breaches of any of the loans. 


Page 34 of 52

Note 16: Employee Benefits and Related On-Costs Provisions 




2010 2009 2010 2009 

$'000 $'000 $'000 $'000 

Current Provisions 

Employee Benefits 

- Unconditional and expected to be settled within 12 months 15,532 13,321 15,532 13,321 

- Unconditional and expected to be settled after 12 months 15,313 14,804 15,313 14,804 

Other 4,637 5,872 4,637 5,872 

35,482 33,997 35,482 33,997 

Provisions related to employee benefit on-costs 

- Unconditional and expected to be settled within 12 months (nominal value) 1,666 2,263 1,666 2,263 

- Unconditional and expected to be settled after 12 months (present value) 2,103 1,826 2,103 1,826 

3,769 4,089 3,769 4,089 

Total Current Provisions 39,251 38,086 39,251 38,086 

Non-Current Provisions 

Employee Benefits 5,441 5,344 5,441 5,344 

Provisions related to employee benefit on-costs 596 620 596 620 

Total Non-Current Provisions 6,037 5,964 6,037 5,964 

Current Employee Benefits 

Unconditional LSL entitlements 17,795 16,219 17,795 16,219 

Annual leave entitlements 16,473 15,670 16,473 15,670 

Accrued Wages and Salaries 4,637 5,872 4,637 5,872 

Accrued Days Off 346 325 346 325 

Non-Current Employee Benefits 

Conditional Long Service Leave entitlements (present value) 6,037 5,964 6,037 5,964 

Total Employee Benefits and Related On-Costs 45,288 44,050 45,288 44,050 

Movement in Long Service Leave: 

Balance at start of year 22,183 19,427 22,183 19,427 

Provision made during the year 

- Revaluations (145) 277 (145) 277 

- Expense recognising employee service 4,503 4,133 4,503 4,133 

Settlement made during the year (2,709) (1,654) (2,709) (1,654) 

Balance at end of year 23,832 22,183 23,832 22,183 


Page 35 of 52



Note 17: Other Liabilities 


2010 2009 2010 2009 

$'000 $'000 $'000 $'000 

CURRENT 

Monies Held in Trust* 

- Patient Monies Held in Trust 5 8 5 8 

TOTAL 5 8 5 8 

* Total Monies Held in Trust Represented by the following assets: 

Cash Assets (refer to Note 6) 5 8 5 8 

TOTAL 5 8 5 8 


Page 36 of 52

Note 18: Equity 

(a) Reserves 

Property, Plant & Equipment Revaluation Surplus 1 




2010 2009 2010 2009 

$'000 $'000 $'000 $'000 

Balance at the beginning of the reporting period 104,432 78,650 104,432 78,650 

Revaluation Increment/(Decrements) - 

- Land - (2,523) - (2,523) 

- Buildings - 28,305 - 28,305 

Balance at the end of the reporting period* 104,432 104,432 104,432 104,432 

* Represented by: 

- Land 25,104 25,104 25,104 25,104 

- Buildings 79,328 79,328 79,328 79,328 

104,432 104,432 104,432 104,432 

Restricted Specific Purpose Reserves 

Balance at the beginning of the reporting period 340 579 646 719 

Transfer to and from Internal Entities 30 - - 

Transfer to and from Restricted Specific Purpose Reserves - (239) - (73) 

Balance at the end of the reporting period 370 340 646 646 

Total Reserves 104,802 104,772 105,078 105,078 

(b) Contributed Capital 

Balance at the beginning of the reporting period 161,634 152,013 161,634 152,013 

Capital contribution received from Victorian Government - 9,621 - 9,621 

Balance at the end of the reporting period 161,634 161,634 161,634 161,634 

(c) Accumulated Deficits 

Balance at the beginning of the reporting period (31,700) (16,030) (31,572) (16,031) 

Net Result for the Year 3,124 (15,909) 3,178 (15,614) 

Transfer to and from Restricted Specific Purpose Reserve - 239 - 73 

Balance at the end of the reporting period (28,576) (31,700) (28,394) (31,572) 

(d) Total Equity at end of financial year 237,860 234,706 238,318 235,140 

(1) The Property, Plant & Equipment Asset Revaluation Surplus arises on the revaluation of property, plant & equipment. 


Page 37 of 52

Note 19: Reconciliation of Net Result for the Year to Net Cash Inflow/(Outflow) from Operating Activities 




2010 2009 2010 2009 

$'000 $'000 $'000 $'000 

Net Result for the Year 3,124 (15,909) 3,178 (15,614) 

Depreciation & Amortisation 20,160 9,763 20,160 9,767 

Impairment of Non-Current Assets - 1,417 - 1,417 

Provision for Doubtful Debts 511 460 511 236 

Change in Inventories (36) 31 (36) 31 

Transfer of Reserves within Consolidated Entity 30 - - - 

Net (Gain)/Loss from Sale of Investment (1,257) - (1,257) - 

Net (Gain)/Loss from Sale of Plant and Equipment (618) (21) (618) (21) 

Change in Operating Assets & Liabilities 

(Increase)/Decrease in Current Receivables 95 (543) 101 (218) 

Decrease in Non Current Receivables (271) 214 (271) 214 

Increase in Other Assets 637 (1,487) 637 (1,489) 

(Increase)/Decrease in Prepayments (140) (59) (141) (59) 

Increase in Payables (4,744) 5,117 (4,854) 5,103 

Increase in Employee Benefits 2,251 5,712 2,251 5,712 

Increase/(Decrease) in Other Liabilities 368 (77) 367 (76) 

NET CASH INFLOW FROM OPERATING ACTIVITIES 20,110 4,618 20,028 5,003 


Page 38 of 52

Note 20: Financial Instruments 



(a) Financial Risk Management Objectives and Policies 

Northern Health's principal financial instruments comprise of: 

- Cash Assets 

- Receivables (excluding statutory receivables) 

- Investment in Equities and Managed Investment Schemes 

- Payables (excluding statutory payables) 

Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, with 

respect to each class of financial asset, financial liability and equity instrument are disclosed in note 1 to the financial statements. 

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

Categorisation of financial instruments 

Note Carrying Amount Carrying Amount 

2010 2009 

$'000 $'000 

Financial Assets 

Cash and cash equivalents 6 1,382 4,361 

Recievables 7 5,320 5,926 

Other Financial Assets 8 - 1,440 

Total Financial Assets (i) 6,702 11,727 

Financial Liabilities 

Payables 14 19,347 24,810 

Interest Bearing Liabilities 15 855 891 

Other Liabilities 17 5 8 

Total Financial Liabilities (ii) 20,207 25,709 

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

(ii) The total amount of financial liabilities disclosed here excludes statutory payables (i.e. Taxes payables) 

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


Carrying Amount Carrying Amount 

2010 2009 

$'000 $'000 

Cash and cash equivalents (i) 516 690 

Available for sale (i) - (1,417) 

Total Financial Assets 516 (727) 

(i) For cash and cash equivalents, loans or receivables and available-for-sale financial assets, the net gain or loss is calculated by taking the interest revenue, plus or minus foreign exchange gains or 

losses arising from revaluation of the financial assets, and minus any impairment recognised in the net result; 

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

financial liabilities measured at amortised cost. 


Page 39 of 52

Note 20: Financial Instruments (continued) 



(b) Credit Risk 

Northern Health's exposure to credit risk and effective weighted average interest rate by ageing periods is set out in the following table. For interest rates applicable to each class of asset refer to 

individual notes to the financial statements. 

Ageing analysis of financial asset as at 30 June 

Consol'd 

Carrying 

Amount 

Not Past Due 

and Not 

Impaired 

Less than 1 

Month 

Past Due But Not Impaired 

1-3 Months 3 months - 1 

Year 

1-5 Years 

Impaired 


2010 $'000 $'000 $'000 $'000 $'000 $'000 $'000 


Cash and Cash Equivalents 1,382 1,382 - - - - - 

Receivables 5,320 3,897 548 451 372 52 - 

Total Financial Assets 6,702 5,279 548 451 372 52 - 

2009 


Cash and Cash Equivalents 4,361 4,361 - - - - - 

Receivables 5,926 2,967 1,146 940 640 233 - 

Other financial assets 

- Available for sale 1,440 - - - - - 1,440 

Total Financial Assets 11,727 7,328 1,146 940 640 233 1,440 

Ageing analysis of financial assets excludes statutory financial assets (i.e GST input tax credit) 


Page 40 of 52




(c) Liquidity Risk 

The following table discloses the contractual maturity analysis for Northern Health's financial liabilities. For interest rates applicable to each class of liability refer to individual notes to the financial 

statements. 

Maturity analysis of financial liabilities as at 30 June 

Carrying 

Amount 

Contractual 

Cash Flows 

Less than 1 

Month 

Maturity Dates 

1-3 Months 3 months - 1 

Year 

2010 $'000 $'000 $'000 $'000 $'000 $'000 

1-5 Years 


Payables 19,347 19,347 7,500 11,792 55 - 

Interest Bearing Liabilities 855 855 - - 144 711 

Other Financial Liabilities 5 5 - 5 - - 

Total Financial Liabilities 20,207 20,207 7,500 11,797 199 711 

2009 


Payables 24,810 24,810 10,950 10,894 2,966 - 

Interest Bearing Liabilities 891 891 12 36 96 747 

Other Financial Liabilities 8 8 - 8 - - 

Total Financial Liabilities 25,709 25,709 10,962 10,938 3,062 747 

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

(d) Fair Value 

Northern Health considers that the carrying amount of financial instrument assets and liabilities recorded in the financial statements to be a fair approximation of their fair values, because of the 

short-term nature of the financial instruments and the expectation that they will be paid in full. 

The aggregate net fair value of financial assets and liabilities, both recognised and unrecognised, at the balance date are equal to their carrying amount as per the balance sheet. 


Page 41 of 52




(e) Market Risk 

Northern Health's exposures to market risk are primarily through interest rate risk with only insignificant exposure to foreign currency and other price risks. Objectives, policies and processes used to 

manage each of these risks are disclosed in the paragraph below. 

Currency Risk 

Northern Health is exposed to insignificant foreign currency risk through its payables relating to purchases of supplies and consumables from overseas. This is because of a limited amount of 

purchases denominated in foreign currencies and a short timeframe between commitment and settlement. 

Interest Rate Risk 

Exposure to interest rate risk might arise primarily through Northern Health's interest bearing liabilities. Minimisation of risk is achieved by mainly undertaking fixed rate or non-interest bearing 

financial instruments. For financial liabilities, Northern Health mainly undertake financial liabilities with relatively even maturity profiles. 

Other Price Risk 

Northern Health's exposure to 'Other Price Risk' arises from its current investment portfolio. The investment portfolio has experienced a reduction in value due to the volatility of the global financial 

markets and there is an increasing expectation that due to the nature of these investments that the original face value may not be realised on maturity. 

As a consequence of these events, Northern Health has taken all possible steps to strengthen its financial policies and internal controls relating to the investment of surplus funds. 

Interest Rate Exposure of Financial Assets and Liabilities as at 30 June 

Weighted Carrying 

Average Amount Fixed Variable Non- 

Effective Interest Interest Interest 

Interest Rate Rate Bearing 

2010 Rate (%) $'000 $'000 $'000 


Cash and Cash Equivalents 3.23 1,382 - 1,349 33 

Recievables (i) 

- Trade debtors 0.00 2,104 - - 2,104 

- Other receivables 0.00 3,216 - - 3,216 


- Available for sale 4.33 - - - - 

6,702 - 1,349 5,353 


Payables (i) 0.00 19,347 - - 19,347 

Interest Bearing Liabilities 3.80 855 - 855 - 

Other financial liabilities 0.00 5 - - 5 

20,207 - 855 19,352 

2009 


Cash and Cash Equivalents 4.59 4,361 - 4,328 33 

Recievables (i) 

- Trade debtors 0.00 3,434 - - 3,434 

- Other receivables 0.00 2,492 - - 2,492 


- Available for sale 7.39 1,440 - 1,440 - 

11,727 - 5,768 5,959 


Payables (i) 0.00 24,810 - - 24,810 

Interest Bearing Liabilities 3.80 891 - 891 - 

Other financial liabilities 0.00 8 - - 8 

25,709 - 891 24,818 

(i) The carrying amount excludes statutory financial assets and liabilities (i.e. GST input tax credit and GST payable) 

Interest Rate Exposure 


Page 42 of 52




(e) Market Risk (cont) 

Sensitivity Disclosure Analysis 

Taking into account past performance, future expectations, economic forecasts, and management's knowledge and experience of the financial markets, Northern Health believes the following 

movements are 'reasonably possible' over the next 12 months (Base rates are sourced from the Reserve Bank of Australia) 

- A shift of +1% and -1% in market interest rates (AUD) from year-end rates of 4.1%; 

- A parallel shift of +1% and 1% in inflation rate from year-end rates of 2% 

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

changes in the relevant risk occur. 

Carrying 

Amount 

-1% 

Interest Rate Risk Other Price Risk 

+1% -5% +10% 

Profit Equity Profit Equity Profit Equity Profit Equity 

2010 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 


Cash and Cash Equivalents (i) 1,382 (14) (14) 14 14 - - - - 

Receivables 

- Trade debtors 2,104 - - - - - - - - 

- Other receivables 3,216 - - - - - - - - 


- Available for sale - - - - - - - - - 


Payables 19,347 - - - - - - - - 

Interest Bearing Liabilities 855 9 9 (9) (9) - - - - 

Other Financial Liabilities 5 - - - - - - - - 

(5) (5) 5 5 - - - - 

2009 


Cash and Cash Equivalents (i) 4,361 (44) (44) 44 44 - - - - 

Receivables 

- Trade debtors 3,434 - - - - - - - - 

- Other receivables 2,492 - - - - - - - - 


- Available for sale 1,440 (14) (14) 14 14 (72) (72) 144 144 


Payables 24,810 - - - - - - - - 

Interest Bearing Liabilities 891 9 9 (9) (9) - - - - 

Other Financial Liabilities 8 - - - - 

(49) (49) 49 49 (72) (72) 144 144 

(i) eg. Sensitivity of cash and cash equivalents to a +1% movement in interest rates: [$1,349k*0.051]-[$1,349k*0.041] = $14k. Similar for a -1% movement in interest rate, impact = $(14k) 

The carrying amount excludes statutory financial assets and liabilities (i.e. GST input tax credit and GST payable) 


Page 43 of 52

Note 21: Commitments for Expenditure 




2010 2009 2010 2009 

$'000 $'000 $'000 $'000 

Capital Expenditure Commitments 

Payable: 

Land and Buildings 51,972 22,056 51,972 22,056 

Plant and Equipment 934 1,839 934 1,839 

Total Capital Commitments 52,906 23,895 52,906 23,895 

Land and Buildings 

Not later than one year 32,172 20,565 32,172 20,565 

Later than 1 year and not later than 5 years 19,800 1,491 19,800 1,491 

Total 51,972 22,056 51,972 22,056 

Plant & Equipment 

Not later than one year 934 1,839 934 1,839 

Total 934 1,839 934 1,839 

Other Expenditure Commitments 

Payable: 

Pathology Services 13,378 5,776 13,378 5,776 

Radiology Services 23,064 30,427 23,064 30,427 

Food Services 12,126 17,827 12,126 17,827 

Laundry Services 3,175 9,869 3,175 9,869 

Mechanical Services 249 - 249 - 

Cleaning Services 8,847 912 8,847 912 

Total Other Commitments 60,839 64,811 60,839 64,811 

Not later than one year 26,455 23,126 26,455 23,126 

Later than 1 year and not later than 5 years 34,384 41,685 34,384 41,685 

TOTAL 60,839 64,811 60,839 64,811 

Lease Commitments 

Commitments in relation to leases contracted for at the reporting date: 

Operating Leases 1,352 1,273 1,352 1,273 

Total Lease Commitments 1,352 1,273 1,352 1,273 

Operating Leases 

Non-cancellable 

Not later than one year 614 558 614 558 

Later than 1 year and not later than 5 years 738 715 738 715 

Sub Total 1,352 1,273 1,352 1,273 

TOTAL 1,352 1,273 1,352 1,273 

Total Commitments for expenditure (inclusive of GST) 115,096 89,979 115,096 89,979 

less GST recoverable from the Australian Tax Office (10,463) (8,180) (10,463) (8,180) 

Total commitments for expenditure (exclusive of GST) 104,633 81,799 104,633 81,799 


Page 44 of 52

Note 22: Contingent Assets and Contingent Liabilities 



Consol'd 

2010 2009 

$'000 $'000 

Northern Health is not aware of any contingent assets. 

- - 

Northern Health notes the following recallable Department of Health capital grants as contingent liabilities. 

* Facilitate Provision Of Pathology Service (Initially Catheterisation Laboratory Equipment) 

1,200 1,200 

* Client Patient Folder - Electronic Medical Record 1,515 1,700 

Northern Health is not aware of any other contingent liabilities. 

- - 

Note 23: Segment Reporting 

RAC Other 

2010 2009 2010 2009 2010 2009 

$'000 $'000 $'000 $'000 $'000 $'000 

REVENUE 

External Segment Revenue 2,692 2,507 306,298 270,228 308,990 272,735 

Total Revenue 2,692 2,507 306,298 270,228 308,990 272,735 

EXPENSES 

External Segment Expenses (2,585) (2,616) (303,427) (286,212) (306,012) (288,828) 

Intersegment Expenses (282) (144) - - (282) (144) 

Total Expenses (2,867) (2,760) (303,427) (286,212) (306,294) (288,972) 

Net Result from Ordinary Activities (175) (253) 2,871 (15,984) 2,696 (16,237) 

Consol'd 

Interest Expense - - (34) (67) (34) (67) 

Interest Income - - 516 690 516 690 

Net Result for Year (175) (253) 3,353 (15,361) 3,178 (15,614) 

OTHER INFORMATION 

Segment Assets 76 69 292,589 286,152 292,665 286,221 

Unallocated Assets - - 12,735 19,648 12,735 19,648 

Total Assets 76 69 305,324 305,800 305,400 305,869 

Segment Liabilities - - - - - - 

Unallocated Liabilities - - 67,082 70,729 67,082 70,729 

Total Liabilities - - 67,082 70,729 67,082 70,729 

Acquisition of Property, Plant and Equipment and Intangible Assets 13 16 26,193 16,595 26,206 16,611 

Depreciation & Amortisation expense 15 16 20,145 9,751 20,160 9,767 

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

Business Segments Services 

Residential Aged Care Services (RACS) Provider of residential aged care beds 

Northern Health Provider of acute and Sub Acute patient care 

All inter-segment transactions are carried at cost. 

Geographical Segment 

Northern Health operates in the northern suburbs of Melbourne (Broadmeadows, Bundoora, Craigieburn, Epping and Preston) Victoria. All revenue, expenses and segment assets relate to operations 

in Melbourne, Victoria. 


Page 45 of 52

Note 24a: Responsible Persons Disclosures 



In accordance with the Ministerial Directions issued by the Minister for Finance under the Financial Management Act 1994, the following disclosures are made regarding responsible persons for the 

reporting period. 

Responsible Minister 

The Honourable Daniel Andrews, MLA, Minister for Health 

Period 

1/7/2009 - 30/06/2010 

Governing Boards 

Dr Sandra Hacker (Chair resigned 30 June 2010) 

Mr Stephen Black (Chair effective 1 July 2010) 


Mr Stephen Hay (Resigned 30 June 2010) 


Mr Ray Judd 

Prof. Vin Massaro 

Ms. Sue Renkin 

Ms. Marilyn Beaumont 

1/7/2009 - 30/06/2010 

1/7/2009 - 30/06/2010 

1/7/2009 - 30/06/2010 

1/7/2009 - 30/06/2010 

1/7/2009 - 30/06/2010 

1/7/2009 - 30/06/2010 

1/7/2009 - 30/06/2010 

1/7/2009 - 30/06/2010 

1/7/2009 - 30/06/2010 

New Board Members effective 1 July 2010 

Ian Dunn 

Leigh Hocking 

Accountable Officers: 


1/7/2009 - 30/06/2010 

Remuneration of Responsible Persons 

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

Parent Consol'd 

2010 2009 2010 2009 

Income Band No. No. No. No. 

$10,000 - $19,999 5 4 5 4 

$20,000 - $29,999 3 4 3 4 

$40,000 - $49,999 0 1 0 1 

$50,000 - $59,999 1 0 1 0 

$80,000 - $89,999 0 1 0 1 

$90,000 - $99,999 0 1 0 1 

$110,000 - $119,999 0 1 0 1 

$330,000 - $339,999 1 0 1 0 

Total Numbers 10 12 10 12 

Total remuneration received or due and receivable by Responsible Persons from the reporting entity 

amounted to: 

$570,989 $512,488 $570,989 $512,488 

Amounts relating to Responsible Ministers are reported in the financial statements of the Department of Premier and Cabinet. 

Other Transactions of Responsible Persons and their Related Parties. 

There were no other transactions of Responsible Persons and their Related Parties to report. 


Page 46 of 52

Note 24b: Executive Officer Disclosures 



Executive Officers' Remuneration 

The numbers of executive officers, other than Ministers and Accountable Officers, and their total remuneration during the reporting period are shown in the first two columns in the table below in their 

relevant income bands. 

The base remuneration of executive officers is shown in the third and fourth columns. Base remuneration is exclusive of bonus payments, long-service leave payments, redundancy payments and 

retirement benefits. Executive Officers with remuneration packages in excess of $100,000 who have commenced or ceased employment with Northern Health during the year are included in the 

following details. 

Parent 

Total Remuneration Base Remuneration 

Total Remuneration 

Base Remuneration 

2010 2009 2010 2009 2010 2009 2010 2009 

No. No. No. No. 

$30,000 - $39,999 0 0 2 0 0 0 2 0 

$110,000 - $119,999 0 0 0 1 0 0 0 1 

$130,000 - $139,999 0 1 0 0 0 1 0 0 

$140,000 – $149,999 0 3 1 4 0 3 1 4 

$150,000 – $159,999 0 1 1 1 0 1 1 1 

$160,000 – $169,999 2 1 2 3 2 1 2 3 

$170,000 – $179,999 0 2 1 0 0 2 1 0 

$180,000 – $189,999 3 1 0 0 3 1 0 0 

$190,000 – $199,999 1 0 1 1 1 0 1 1 

$200,000 – $209,999 0 1 0 0 0 1 0 0 

$210,000 – $219,999 1 0 0 0 1 0 0 0 

$240,000 – $249,999 1 0 0 0 1 0 0 0 

$310,000 – $329,999 0 0 1 0 0 0 1 0 

$320,000 – $329,999 1 0 0 0 1 0 0 0 

Total 9 10 9 10 9 10 9 10 

Consol'd 

Total Remuneration $1,850,781 $1,629,604 $ 1,384,797 $ 1,541,466 $ 1,850,781 $ 1,629,604 $ 1,384,797 $ 1,541,466 


Page 47 of 52

Note 25: Events Occurring after the Balance Sheet Date 



Northern Health is not aware of any events occurring after reporting date that would have a material impact on the financial statements. 

Note 26: Controlled Entities 

Name of entity 

Country of 

incorporation 

Equity Holding 

Northern Health Research, Training and Equipment Foundation Ltd Australia Limited by Guarantee 

Northern After Hours Clinic Ltd Australia Limited by Guarantee 

Note - The Northern After Hours Clinic Ltd ceased trading effective 30 June 2009 and was deregistered with the Australian Securities & Investment Commission (ASIC) on 17 September 2009. 

Note 27: Economic Dependency 

The financial statements have been prepared on a going concern basis as at 30 June 2010. Northern Health has: 

- A surplus from ordinary activities of $3.18 million for the year ended 30 June 2010 (deficit of $15.61 million for the year ended 30 June 2009). 

- A working capital deficiency of $50.73 million as at 30 June 2010 ($49.04 million as at 30 June 2009). 

Northern Health Management are committed to the continued review of its financial and operating performance with a view to identifying further cost saving initiatives and revenue generating 

opportunities and providing the most effective and efficient service delivery model without compromising patient care and quality of service delivery. 

An on-going budget strategy has been initiated by the Management of Northern Health which has identified a number of business initiatives to better manage the available financial resources. In 

addition, the strategy adopted by Northern Health also includes assurances by the Department of Health to support the on-going operations and financial requirements of Northern Health and to provide 

to Northern Health adequate cash flow support to enable Northern Health to meet its current and future obligations as and when they fall due for a period up to September 2011 should this be required. 


Page 48 of 52

Northern Health Financial Report Appendix to the 2009 - 2010 Annual Report Page 49 of 52


THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK 


THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK 


Broadmeadows Health Service 

35 Johnstone Street Broadmeadows Vic 3074 

Telephone (03) 8345 5000 Facsimile (03) 8345 5655 

Bundoora Extended Care Centre 

1231 Plenty Road Bundoora Vic 3083 


Craigieburn Health Service 

Craigieburn Road West Craigieburn Vic 3064 


Panch Health Service 

300 Bell Street Preston Vic 3072 


The Northern Hospital 

185 Cooper Street Epping Vic 3076 


www.nh.org.au

ANNUAL REPORT - Northern Health

Create successful ePaper yourself

Delete template?

Save as template?