annual report - Ballarat Health Services

3Ballarat Health Services ANNUAL REPORT 2006 - 2007Mel Harris, Radiology Clerk and Claire Thompson,Clerical Assistant, are part of the BHS team which iscommitted to safety, quality and performance.Australian Council ofHealthcare StandardsaccreditationThe hard work and commitment of staff from acrossBallarat Health Services has been acknowledged bythe Australian Council on Healthcare Standards withthe service receiving four years accreditation.This significant result follows the Organisational WideReview held in October 2006.The review survey team indicated that the systems wehave developed are effective and that Ballarat HealthServices continues to improve the quality and safetyof services provided.The surveyors commented on the strong collegialapproach among managers and staff, reflecting theleadership which emanates from the Board andExecutive Management team.This achievement sends a clear message to thecommunity that Ballarat Health Services is committedto excellence in health care with a strong andcontinuing focus on safety, quality and performance.The challenge will now be to uphold theachievements and to further improve services soBallarat Health Services continues as a leader acrossthe state in line with our Vision - Leadership andExcellence in Healthcare.FluoridationBallarat Health Services has commenced a strategicpublic awareness campaign advocating for thebenefits of fluoridated water.Fluoride plays a crucial role in the prevention of dentaldecay.Fluoridated water supplies have long been recognisedas an effective method of preventing dental diseasewith the overwhelming weight of scientific evidencesupporting the safety and effectiveness of waterfluoridation.Ballarat Health Services has been an advocate for thefluoridation of Ballarat’s water supply for some timeand is concerned about the significant public dentalwaiting lists and poor oral health within theGrampians Region.The Primary Care and Population Health AdvisoryCommittee, a sub-committee of the Ballarat HealthServices Board, includes representatives from the Cityof Ballarat, Ballarat Community Health Centre,Central Highlands Primary Care Partnership, theBallarat and District Division of General Practice andthe Department of Human Services.This committee has identified the need to improve theoral health of the community as its first priorityincluding advocating for fluoridation of Ballarat’swater supply.Melbourne’s water supply has been fluoridated for 30years and as a result the incidence of dental decay in12 year old children living in Melbourne is about 40per cent less than 12 year olds in the GrampiansRegion.The public dental waiting list in Ballarat is increasing -a routine dental check-up is almost a five-year wait.There are currently 80 preschool aged childrenwaiting for a general anaesthetic to treat dentaldecay, due to the severity and complexity of theirdental need. Many of these children will require theextraction of multiple teeth and may also requireantibiotics to manage infection and pain whilst theywait.Fluoridation of the water supply is an effective way todeliver fluoride to all members of the community,regardless of age, socioeconomic status and theavailability of dental care.Ballarat Health Services will continue to inform thecommunity of the benefits of fluoridated water andthe positive impact it will have on the health ofresidents throughout the Ballarat district.

Base Hospital celebrates150 years serviceAn historic event occurred for Ballarat Health Servicesin September 2006 with the Base Hospital celebratingits 150th anniversary.The foundation stone of the original Miners’ Hospitalwas laid one year after Eureka Stockade on ChristmasDay 1855.On that day 7000 people, being one quarter of thepopulation of Ballarat, marched up the Sturt Streethill behind a Masonic band and witnessed theWarden of the Court of Mines and Chairman of thehospital committee, James Daly JP, lay the foundationstone.The community worked for the next nine months toraise funds to build a hospital and for the next 150years the people of Ballarat followed this lead andtheir support has been instrumental in establishing ahealth service that we can well be proud of.The hospital started from humble beginnings. Theoriginal Miners’ Hospital admitted 1033 patients inthe first year, paid their surgeon 400 pounds and theirmatron 100 pounds per annum.Professor Geoffrey Blainey, one of Australia's mostsignificant and popular historians was guest ofhonour at a dinner to mark this auspicious occasion.Professor Blainey spoke of the importance the BaseHospital had in Ballarat’s history and the significance ithas on the Grampians region today.Ballarat Health Services has exciting and challengingtimes ahead and will continue to improve communityengagement and constantly strive to enhance thequality of care provided.In November 2007 the Queen Elizabeth Centre willcelebrate its 150th anniversary and planning isunderway to commemorate this significant milestone.Board President Lynne McLennan and CEO AndrewRowe cut the 150th Anniversary cake.4Ballarat Health Services ANNUAL REPORT 2006 - 2007At the Base Hospital’s 150th AnniversaryDinner is Board member Dr Brian Hassett,Professor Geoffrey Blainey andDr David Morton.

5Ballarat Health Services ANNUAL REPORT 2006 - 2007Patient ThroughputBallarat Health Services treated a total of 30,309patients in 2006/07 representing an increase of 5.52per cent or an additional 1585 patients compared tothe previous year.Significant factors behind the increase can beattributed to same day elective procedures,emergency cases and births. Birth numbers continueto grow at Ballarat Health Services with the numberincreasing to 1199 representing an increase of 6.39per cent or an additional 72 babies compared to theprevious year.Comparing the number of births this year with thoserecorded five years ago we have seen an increase of37.5 per cent or an additional 327 births a year.A total of 72,444 bed days was achieved during2006/07 representing an increase of 0.34 per cent or248 bed days compared to the previous year. Theincrease in patient numbers together with theminimal increase in bed days highlights an increase insame day separations and improvements in averagelength of stay.The average length of stay for hospital inpatientscontinued to decline in 2006/07. The trend over thepast five years can be demonstrated as follows:YEARDAYS2002/03 2.862003/04 2.722004/05 2.592005/06 2.512006/07 2.39The continued decline in average length of stay wasmainly due to the increase in patients undergoingsame day surgery with preparatory tests andanaesthetic assessment being undertaken in thepre-admission clinic.Demands on the Emergency Department saw a slightdecline in the number of patients treated; however,there have been an increase in the complexity ofcases seen. The total number of attendancesachieved 40,027 representing a 0.09 per cent or 35patients less than the previous year.A majority of the shortfall occurred in category fourand five patients, however, category two and threepatient numbers increased, highlighting an increase inurgency and complexity of patients seen.Ballarat Health Services Residential Aged Careremained at 100 per cent capacity for the 2006/07Financial Year. Ballarat Health Services is the largestprovider of residential aged care in the SouthernHemisphere with 535 beds.A total of 722 patients were admitted to the AcutePsychiatric Unit representing a 0.42 per cent or threemore patients than the previous year.South African born Orthopedic Surgeon HansLombard moved to Ballarat with his family in June2007 to work at Ballarat Health Services.Financial resultsBallarat Health Services reported an operating surplusfor the 2006/07 year of $276,000 compared to anexpected break even operating result.The operating surplus achieved was another strongresult particularly in context of increasing demandsacross the service.The ability for Ballarat Health Services to continue toachieve an operating surplus helps underpin ourfinancial viability and allows for the continuedinvestment in new technology and facilities.Ballarat Health Services plays a major role as anemployer and purchaser of goods and services in theGrampians Region with $149 million paid toemployees during the year and $81 million of goodsand services purchased.Specific financial and operational initiatives havepositively enabled Ballarat Health Services to continueto achieve our expected budgetary results.These initiatives include the ongoing monitoring ofactivity to maximise throughput revenue andperformance bonus funding, effective leavemanagement, private consulting and diagnosticrevenue, administrative cost reviews and rostering andreviews of staffing costs.These initiatives and their status are regularlymonitored to maintain the focus on achieving desiredbudgetary outcomes.

Capital improvementsA number of capital projects commenced during theyear. Topping the list was $3 million of electricalinfrastructure upgrades at the Base Hospital andQueen Elizabeth Centre.The upgrades are vital for Ballarat Health Services asthe current power supply is at full capacity duringpeak periods, leaving limited room for serviceimprovements or future growth.New high voltage cabling and main electricalswitchboard have been installed and a second mainelectrical feeder line will provide power to the BaseHospital, while at the Queen Elizabeth Centre a largeremergency generator has been installed and a rangeof other works have taken place.In May 2007 the then Minister for Health, BronwynPike, announced $4.5m funding to reduce emergencydepartment waiting times and elective surgery waitinglists.The significant capital funding injection ensured thatthe sixth operating theatre was commissioned andredevelopment of the Central Sterile SupplyDepartment (CSSD) will be completed. The sixththeatre and additional works in CSSD will provide anadditional 15 per cent surgical capacity. The CSSD isexpected to be completed by late 2007.A medi-hotel will be fitted out within the hospital toprovide for patients travelling long distances forsurgery and will have the benefit of freeing uphospital beds. The planning process for establishmentof a short stay unit adjacent to the EmergencyDepartment has commenced and it is expected to bebuilt within the 2008/09 Financial Year.During the year $156,000 was allocated to redevelopthe Emergency Department. The project has seensignificant renovations undertaken on the physicallayout of the waiting room, the entrance foyer onMair Street, improved communication systems,signage and information available to patients. TheEmergency Department waiting room receivednecessary refurbishments to ensure patient comfortand safety while waiting for treatment was assured.Ballarat Health Services has installed new signagethroughout the Base Hospital and Queen ElizabethRehabilitation Centre sites to improve ease of accessfor all clients.In addition, a further $68,000 has been allocated viathe Improving Care Initiative for Patients and OlderVisitors initiative to install hand rails along corridorsand additional seating at the Base Hospital andQueen Elizabeth Centre sites.Other significant projects that have commenced thisyear include:• Upgrades to negative pressure rooms in theEmergency Department and on each floor ofthe Base Hospital. Cost $594,000.• Upgrades to the Base Hospital Cafeteria.Cost $34,000.• Capital works at residential care facilities.Cost $500,000.• Upgrades to piped oxygen in the inpatientrehabilitation ward at the Queen ElizabethRehabilitation Centre. Cost $94,000.Dr Nigel Beck, Emergency Department, Chris Lockett,Major Programs and Infrastructure Director andJos Wynen, Engineer, check out the redevelopmentsof the Base Hospital’s main entrance and EmergencyDepartment.Decommissioning ofPleasant HomesBallarat Health Services informed residents, carers andstaff of Pleasant Homes, in May this year, that theprocess of decommissioning the facility hadcommenced.Although Pleasant Homes currently meetsCommonwealth certification standards it is notconsidered reasonable as a long term residential agedcare option for the Ballarat community.The move to relocate residents from the low carefacility is part of a program of reform for residentialaged care services, identified in Ballarat HealthServices’ five-year Strategic Service Plan and Model ofCare report.BHS is commencing a master planning process, whichwill determine the optimal mix of aged care servicesand provide residents with modern and comfortablestate-of-the-art facilities consistent with theirindividual care needs.Pleasant Homes was built in the early 1900’s and dueto its ageing infrastructure, Ballarat Health Servicesmade the decision to decommission the facility andrelocate the residents.Existing residents were offered relocation intoalternate Ballarat Health Services residential facilities.The future of the facility will be determined by themaster planning process.6Ballarat Health Services ANNUAL REPORT 2006 - 2007

7Ballarat Health Services ANNUAL REPORT 2006 - 2007Smoke-free WorkplacePolicyAs part of Ballarat Health Services continuedintroduction of its smoke-free workplace strategy, allfacilities, grounds and vehicles will be totally smokefreeas of 1 September 2007.BHS has progressively moved towards this goal overrecent years, and has worked with staff and thecommunity to progressively introduce the smoke-freepolicy.All patients, staff, and visitors have been advised ofthe changes through a comprehensivecommunications program and the health service willcontinue to work with patients and staff during theinitial stages.Nicotine-dependent patients will be offered nicotinereplacement therapy prescriptions, monitored fornicotine withdrawal symptoms and offered Quit packswhilst at BHS.The Smoke-Free Workplace Policy will be introducedacross Ballarat Health Service facilities with the aim to:• reduce the health risks associated with tobaccouse by staff, patients, visitors and the community,especially through passive smoking;• provide a clear and consistent message aboutthe health risks of smoking;• provide leadership to reduce the harmassociated with smoking; and• comply with Occupational Health and SafetyAct regulations.Psychiatric Services -Community BasedIntegrated TeamsBallarat Health Services - Psychiatric Services criticallyevaluated itself against National and State MentalHealth Plans and quality aspects of The VictorianStrategy for Quality and Safety in Public MentalHealth Services 2004-2008 as an on-going initiative tocontinually improve standards.The findings mirrored public opinion that the existingstructure did not deliver optimal client services.The previous team functions of triage; crisisassessment and treatment; continuing care; andmobile intensive support and treatment were shownto inhibit capacity to consistently deliver optimal clientservices.As a result of the review, the organisation identifiedthat clients were receiving care from a multitude ofclinicians, creating concern that changes in theirhealth could be missed, and progress inhibited withindividual needs overlooked.The re-organisation of the clinical workforce andprocesses to support their endeavours ensures clientsand their families/carers receive a comprehensive,seamless treatment program from the same cliniciansregardless of fluctuations in health status.This initiative, implemented in April 2006, has provenits sustainability through improved staff morale,enhanced professionalism and staff development.Reduced acute bed occupancy and re-establishmentrates indicate that the health status of clients hasimproved overall, and that clients are more effectivelymanaging fluctuations in their health status.The new integrated structure ensures that the serviceis user-friendly for clients, their families and carers andputs Ballarat Health Services in strong position tocontinue to meet the needs of the community.Russell Hardy, Ballarat Health Services CateringManager, proudly displays the International CateringCertificate.Catering AwardA commitment towards producing a quality producteach and every time has seen Ballarat Health Services’Catering Department awarded internationallyrecognised accreditation.Increased food safety standards, introduced by theState Government, motivated the Ballarat team of120 staff to work towards achieving the HazardAnalysis and Critical Control Point (HACCP)Accreditation.It is believed that Ballarat Health Services Catering isthe only Victorian public hospital kitchen to havegained the accreditation, which is a recognised worldstandard of food safety management.Ten tonnes of food is prepared in the kitchen eachweek and this award is recognition of the fantasticefforts of the catering staff who work hard to ensurethat all food and meals are of a consistently highstandard.

Sixth Operating TheatreThe sixth operating theatre was commissioned duringthe year thanks to generous community support andState Government.A successful fundraising appeal raised more than $1million for the necessary equipment to fit out thetheatre.Generous gifts and bequest were received from:• Percy Baxter Charitable Trust ($250,000);• Ballarat Health Services Foundation ($100,000);• Joe White Bequest;• Hilton White Bequest;• Collier Charitable Fund; and• William Angliss Charitable Trust.FoundationThe Ballarat Health Services Foundation achieved asignificant outcome during the year when it reached$1 million investment level.The interest earned on this substantial investment isused to fund projects and equipment at BallaratHealth Services.During the year Foundation funds have supported anumber of vital projects at both the Queen ElizabethRehabilitation Centre and the Base Hospital sitesincluding:• $100,000 for the Sixth Operating Theatre;• a prosthetics alignment jig to aid accuratefitting of artificial limbs;• a patient and visitor lounge on the Oncologyward;• optical equipment aids in the EmergencyDepartment, and;• resuscitation equipment across Ballarat HealthServices.8Ballarat Health Services ANNUAL REPORT 2006 - 2007Celebrating the sale of the charity house is GerardCosgrave, Cosgrave Real Estate; Joy Taylor, BHS;Andrew Rowe, BHS; John King, JG King Homes; JanMillar, Cosgrave Real Estate; Don Robinson, CuthbertsBarristers and Solicitors; and Geoff Millar, BHS.Support from the community business sector andprivate individuals was outstanding.J.G. King Homes led the way with a charity houseauction conducted by Cosgrave Real Estate.Fundraising from events conducted by the SelkirkRoosters, the Golf House Hotel and Blue Bell HotelGolf Day, the Ballarat Health Services Charity Golf Dayand fundraising by many other clubs andorganisations contributed to the operating theatreequipment purchases.Ballarat Health Services volunteer groups, the M2MBike Riders, the Base Hospital Kiosk and the VIPFlowershop, collectively raised more than $300,000, aremarkable effort by our valued supporters.Significantly more than 10 per cent of funds werecontributed by past donors, grateful patients andmembers of the community who had seen ourservices first hand and appreciated the need for thenew operating theatre which will be a wonderfulasset in meeting increasing demands from withinBallarat and the Grampians Region.Consulting and DiagnosticSuite opens for businessBallarat Health Services' $1.8 million Consulting andDiagnostic suite was officially opened in December2006. The redevelopment of the former Eildon Houseon Drummond Street North has seen the co-locationof a number of clinical services, dealt with spaceshortages and growing demand, and rejuvenated adepleted entrance to the east side of the BaseHospital.Bringing a range of services under the one umbrellahas significantly improved conditions for specialistmedical staff and greatly improved public access tothe services.The project began in 2005 to establish ambulatorydiagnostic services and private consulting rooms formedical staff. The opening of the facility allows theconsolidation of diagnostic services ensuring services,technicians and specialists are able to interactefficiently.The state-of-the-art facility provides private consultingsuites, medical procedure rooms for specialists such asgastroenterology, general medicine, gynaecology anda range of diagnostictesting such as ECG,EEG and pulmonaryfunction monitoring.Marion Ritchie, Private Consulting Receptionist enjoys the new surroundsin the Consulting and Diagnostic Suite.

9Ballarat Health Services ANNUAL REPORT 2006 - 2007Carol Trusler, Midwife, speaks with a new mum at theBallarat and District Aboriginal Cooperative as part ofthe Aboriginal Midwife Program.Aboriginal Health TaskforceThe Aboriginal Health Taskforce developed to overseethe implementation of initiatives of the partnershipagreement between Ballarat and District AboriginalCooperative (BADAC) and Ballarat Health Servicescelebrated significant achievements in its first year.A major success of the partnership has been theimproved communication and dialogue betweenBADAC, BHS and the Indigenous community.Initiatives implemented through the partnershipagreement include:• the Aboriginal midwife program with a midwifeworking from BADAC and BHS to improve theexperience of Indigenous women throughouttheir pregnancy and post birth.• the appointment of Aboriginal Mental HealthLiaison Officer positions in Ballarat and Horsham.• Tours and presentations from the EmergencyDepartment, Psychiatric Services and Outpatientshave assisted to improve understanding andknowledge of BHS by BADAC and the Aboriginalcommunity.• A ceremony to raise the Aboriginal and Australianflags to promote Aboriginal health was held atthe Mair Street entrance of the Base Hospitalduring NAIDOC week.• BADAC is working with BHS to provide culturalawareness training for all BHS staff and is due tocommence in the near future.The partnership agreement aims to reduce barriers toaccess health services for Aboriginal people living inBallarat and surrounding districts. These barriers canbe financial, geographic, personal or cultural.The 17 year life expectancy gap between Aboriginaland other Australians can be attributed to the inabilityof indigenous people to access health services due tosome or all of these barriers.The partnership also aims to raise cultural awarenessfor BHS staff to enable them to better understand theissues faced by the Aboriginal community.Community AdvisoryCommitteeThe Community Advisory Committee (CAC), a subcommitteeof the Board of Management, achievedsignificant outcomes throughout the year.Ballarat Health Services recognises the importance oflistening to community views and consumer feedbackin order to make sure the organisation is providingsafe, quality and appropriate services.The CAC considers priority areas and key initiatives tomore effectively strengthen community participationat all levels of the service.Key achievements of the Community AdvisoryCommittee for the past year have included:• Implementation of the BHS CommunityParticipation Plan;• Participation in the development of this 2006/07Quality of Care Report;• Development of the BHS Consumer ParticipationPolicy which will underpin consumer involvement;• Working with various BHS services on ConsumerParticipation Service Reviews considering howclinical teams work with patients to identifyopportunities for improvement;• Providing consumer and community perspective ofpatient information booklet, Going to hospital:A practical guide ensuring it is user friendly andhelpful; and• Development of a webpage on the BHS internet(www.bhs.org.au) for the Community AdvisoryCommittee in order to promote the work of thecommittee and consumer involvement in general.Strategic planningIn September 2006 the Board of Managementadopted the Strategic Services Plan and Model ofCare final report outlining the key directions andstrategic priorities to be pursued over the next fiveyears.The intention of the report is to identify strategicpriorities to assist BHS to achieve its vision, at thesame time as continuing to provide and improvehealth services for the communities of Ballarat andthe broader Grampians region.Priorities have been identified on the basis of need toaddress urgent service development needs, thepotential to positively shape the nature of theorganisation and enhance the ability of BHS toachieve its mission.The next stage of the strategic service plan and modelof care is a master planning process. This process willoutline emerging priorities and propose a physicalinfrastructure enabling the delivery of services into thefuture. It is anticipated that master plan developmentwill commence in September 2007.

11ValeBallarat Health Services ANNUAL REPORT 2006 - 2007During the year Ballarat Health Services was greatlysaddened by the passing of the following staff andgenerous supporters:• Rev Ronald Traill, Life Governor and formerchaplain for 19 years.• Dr W.L. Sloss, former Board President, Chairmanof the Professional Staff Group and practitionerover a period of 40 years in gynaecology andobstetric services.• Ms June Vague, Life Governor and formervolunteer at the Queen Elizabeth Centre.• Mr Ian McIntyre, Counsellor for Alzheimer’sAssociation of Victoria and member of theCognitive Dementia and Memory Service(CDAMS) team and Cognitive Identifier researchproject.• Ms Beverly Hunt, Administrative Assistant,Outpatient Services.Department ofHuman ServicesBallarat Health Services enjoys a very constructiverelationship with the Department of Human Services.Appreciation is extended to the staff of DHS for theirassistance and support.Life GovernorsAt the 2006 Annual General Meeting the followingLife Governors were appointed in recognition ofdedicated and loyal service to Ballarat Health Services:• Dr Therese Power• Ms Win Menadue• Ms Joyce Bainbridge• Ms Marlene Fry• Rev Ronald Traill• Ms Emma TraillCongratulations are extended to the recipients whohave given outstanding service to Ballarat HealthServices over many years.ConclusionBallarat Health Services is a very large and complexorganisation which in recent years has gone throughvery significant change.This change has been necessary to expand serviceprovision, improve responsiveness to the communityand constantly build a culture of quality andaccountability.The achievements of Ballarat Health Services in2006/07 have been very substantial and theimprovements are evident.A commitment exists to constantly strive to improveall aspects of our service provision.The achievements of 2006/07 would not have beenpossible without the support of staff throughoutBallarat Health Services as well as volunteers,auxiliaries and our many supporters.Ms. Lynne McLennanPresidentBoard of ManagementMr. Andrew R. RoweChief Executive Officer

BALLARAT HEALTH SERVICES BOARD OF MANAGEMENTBallarat Health Services was incorporated under theHealth Services Act 1988. The Incorporation cameinto effect on 1 January,1997. Ballarat Health Servicesis accountable, through its Board of Management, tothe Hon. Daniel Andrews MLA, Minister for Health.The Board of Management as at 30 June,2007President: Lynne McLennanBSc MBA MAICDCEO UFS DispensariesBoard Member Since: 2000Term of Appointment: 01.11.05 - 31.10.08Committees:AuditMedical Staff Appointments (Chair)Board Executive and Human Resources (Chair)Primary Care and Population HealthSt John of God LiaisonBoard Meetings attended: 11Vice President: Catherine LaffeyMM Med BA DipEd DipFMI JPHead of Programs, School of Human Services,University of BallaratBoard Member Since: 2000Term of Appointment: 01.11.05 - 31.10.08Committees:Audit (Chair)FinanceBoard Executive and Human ResourcesCapital Planning and WorksBoard Meetings attended: 8Leave of Absence granted: 1Vice President: Susanne McKenzieBA DipEd LLBLawyerBoard Member Since: 2004Term of Appointment: 10.08.05 - 30.06.09Committees:Quality Care (Chair)Human Research EthicsBoard Executive and Human ResourcesCredentials Appeal TribunalAboriginal Health TaskforceBoard Meetings attended: 11Chair of Finance: Peter DuffyFCPA MAICDRetired Managing Director,Australian Timken Pty LtdBoard Member Since: 2000Term of Appointment: 01.11.03 - 30.06.09Committees:Finance (Chair)AuditCapital Planning and WorksBoard Executive and Human ResourcesBoard Meetings attended: 8Leave of Absence granted: 1Brian HassettMBBS FRACGPMedical PractitionerBoard Member Since: 1997Term of Appointment: 01.11.04 - 31.10.07Committees:Human Research Ethics (Chair)Medical Staff AppointmentsQuality CareFinanceSt John of God LiaisonBoard Meetings attended: 9Leave of Absence granted: 1Julie RaeBACEO, Central Highlands Regional Library CorporationBoard Member Since: 2004Term of Appointment: 01.11.04 - 1.11.07Committees:Community Advisory (Co-Chair)Aboriginal Health TaskforceQuality CareBoard Meetings attended: 8Leave of Absence granted: 2Greg HainesBA DipEd DipFrontlineMgt GradCertLdrshipDevHead of School, Human Services,University of BallaratBoard Member Since: 2004Term of Appointment: 01.11.05 - 31.10.07Committees:FinanceCapital Planning and WorksCommunity Advisory (Co-Chair)FinancePrimary Care and Population Health (Chair)Board Meetings attended: 7Leave of Absence granted: 2Jim ElveyBA DipBusStudies (LocalGovt)Retired CEO Moorabool Shire Council and consultantBoard Member Since: 2006Term of Appointment: 07.05.06 - 31.10.08Committees:AuditCapital Planning and Works (Chair)St John of God LiaisonBoard Meetings attended: 11Medical Staff Association Representative:Andrew LoweMBBS FRACSThere were 11 Board of Management meetings heldin 2006/07.Members of the Board of Management are requiredto lodge declarations of pecuniary interest with thePresident. Members of the Board of Managementreceive remuneration as gazetted under the HealthServices Act 1988.12Ballarat Health Services ANNUAL REPORT 2006 - 2007

EXECUTIVE STAFF COUNCIL13Ballarat Health Services ANNUAL REPORT 2006 - 2007Andrew RoweBHA MHA AFCHSE CHEChief Executive OfficerAppointed June 2003The Chief Executive Officer is responsible to the Boardof Management for the efficient and effectivemanagement of Ballarat Health Services. Majorresponsibilities include the development andimplementation of service and strategic planning, thepromotion of quality care, optimising financialperformance and implementation of human resourcestrategies. The Chief Executive Officer chairs theExecutive Staff Council which comprises the seniorexecutive staff of Ballarat Health Services. Heprovides leadership through collaborativemanagement with staff and consultation with thecommunity.John GallichioMBBS FRACMA AFCHSE MBAExecutive Director - Medical ServicesAppointed March 2007The Executive Director has overall responsibility formedical services including direct service provision andongoing medical education, pharmacy, medicalrecords, the library, ethics and research as well asprofessional medical issues. John ensures all medicalstaff have appropriate credentials and activelyencourages the placement of medical students atBallarat Health Services. In conjunction with all theclinical executives, he has an active role developingclinical governance frameworks, embracing clinicalrisk management and continuous qualityimprovement.Geraldine WebsterRN BAAppScNsg BN(Mgt)GradCertGerontology FRCNA.Executive Director - Nursing ServicesAppointed July 2005The Executive Director has professional and leadershipresponsibility for nursing credentialing and standardsof practice for Acute, Sub-acute and ResidentialServices. Major management responsibilities includebusiness, resource management, service planning andprovision, and quality improvement and compliance.Wendy HubbardBAppSC(PT) MAppSc(HM) MBA AFCHSE CHEExecutive Director Allied HealthAppointed March 2000The Executive Director has responsibility for nine alliedhealth disciplines, carries executive responsibility forthe sub-acute services including rehabilitation, agedcare evaluation and palliative care, and hasresponsibility for community-based services. With aspecial interest and expertise in quality systems,Wendy has responsibility for the BHS Quality andSafety Unit, overseeing the Clinical Governancestructure and quality improvement and accreditationacross BHS.Ken BurnettMHA BSW BA AMGC RPNExecutive Director Psychiatric ServicesAppointed December 2003The Executive Director is responsible for the full rangeof psychiatric services provided by Ballarat HealthServices within the Grampians Region. These servicesinclude child and adolescent, adult, and aged personsmental health services both within the communityand as inpatient services. Ken has professionalresponsibility for all psychiatric staff. He has aparticular interest in the routine delivery of evidencebased‘best practice’ treatments to clients and theircarers, in the context of a family inclusive, recoveryorientated, model of integrated mental health care.Dale FraserMBA BBus CPA AFCHSE CHE MHSFMExecutive Director FinanceAppointed July 1997The Executive Director has responsibility for BallaratHealth Services integrated financial services includingaccurate and timely budget reports for the Board ofManagement and staff. Dale also has operationalresponsibility for finance, information technology,radiology, supply, fleet management, the print shop,insurance and taxation systems.Trevor OlssonBBus AIMM AFAHRIExecutive Director Human ResourcesAppointed October 1999The Executive Director’s responsibilities include allaspects of strategic human resource managementincluding recruitment, organisational change anddevelopment, payroll, industrial relations, equalemployment opportunity, occupational health andsafety, security services, as well as training anddevelopment.Steven JonesGradCertPubSecMgt AFCHSEExecutive Director Corporate ServicesAppointment May 2005The Executive Director Corporate Services hasresponsibility for engineering and environmentalservices as well as the business units, BHS Catering,Eureka Linen, and Safety Link. Steven also hasresponsibility for service planning and capitalresources, accommodation along with facilitiesmanagement and development.

BOARD OF MANAGEMENTEXECUTIVE STAFF COUNCIL14Lynne McLennanCatherine LaffeyAndrew RoweJohn GallichioBallarat Health Services ANNUAL REPORT 2006 - 2007Susanne McKenziePeter DuffyGeraldine WebsterWendy HubbardBrian HassettJulie RaeKen BurnettDale FraserGreg HainesJim ElveyTrevor OlssonSteven Jones

ORGANISATIONAL STRUCTURE15Ballarat Health Services ANNUAL REPORT 2006 - 2007Board CommitteesMedical Staff AssociationExecutiveDirectorHumanResourcesExecutiveDirectorAlliedHealthBOARD OFMANAGEMENTCHIEF EXECUTIVEOFFICERExecutiveDirectorCorporateServicesExecutiveDirectorFinanceExecutiveDirectorMedicalServices• Clinical Operations Group• Clinical Review Panel• Quality Leadership GroupExecutive Staff CouncilExecutiveDirectorPsychiatricServicesExecutiveDirectorNursingServices• ChiefInformationOfficer• Foundation andFundraising• Media andCommunications• PopulationHealth andStrategicPlanning• HumanResources• EmployeeRelations• Payroll• OccupationalHealth andSafety• EqualOpportunity• Training andDevelopment• SecurityServices• ServicePlanning andQuality• CommunityPrograms• Centre AgainstSexual Assault• Physiotherapy• OccupationalTherapy• Podiatry• Dietetics• SpeechPathology• Psychology• Social Work• ExerciseTherapy• Prosthetics/Orthotics• Accommodation• BHS Catering• EngineeringServices• EnvironmentalServices• SafetyLink• Asset andFacilitiesManagement• Eureka Linen• Capital Planningand Works• CorporateQuality• Finance• InformationTechnology• MedicalImaging• Contracts andTaxation• Supply• CasemixAnalyst• AmbulatoryDiagnostics• MedicalAdministration• Senior MedicalStaff (Acuteand Sub-Acute)• Registars /HMOs / Interns• Medico LegalServices• PharmacyServices• HealthInformationServices• Library• Mortuary• Clinical Services- Psychiatry• BallaratPsychiatricServices• HorshamPsychiatricServices• Ararat / StawellPsychiatricServices• AdultResidentialMental HealthServices• Child andAdolescentMental HealthServices(CAMHS)• Aged PersonsMental HealthServices• AcuteWards/Units• Sub AcuteWards• Clinical NurseConsultants• OperatingTheatres• Outpatients• After-hoursCo-ordinator• NursingEducation• Chaplains• ResidentialServices• Primary MentalHealth• Education,Training andDevelopment• Quality andPerformance

SENIOR STAFFCHIEF EXECUTIVE OFFICERAndrew RoweBHA MHA AFCHSE CHEEXECUTIVE SERVICESDirector, Foundation &FundraisingGeoff Millar BA BEd GradDipEdAdminDipTeach GradCertMgt AMFIAManager, Media andCommunicationsLuke Mullane BPRJournManager, Population Health andStrategic PlanningTracey Wilson DipAppSci MBAChief Information OfficerPaul Mannix BSc(Computer)MEDICAL SERVICESExecutive DirectorJohn GallichioMBBS FRACMA AFCHSE MBADeputy DirectorLinda DanversMBBS FRACGP DipRACOGManager Medical ResourcesDianne MayallADipBusMgt ADipComServQuality Co-ordinatorSusan SheaBAppSc(Pod) PhD FAAQHCInternal Medicine ServiceA/Clinical Director InternalMedicineChristoph GatzkaMBBS (Bonn) MD FRACPPhysiciansCardiologistsJack Gutman MBBS FRACP FCSANZChristopher Hengel MBBS FRACPJohn Stickland MBBS FRACP FRACRMJohn van den Broek MBBS FRACPGastroenterologistsIan Hamilton BSc (Hons) MBBS MRCPMD FRCP FRACPGrant Phelps MBBS FRACP MBA FAIMMaree Pekin MBBS FRACPGeneral (Sub-Specialty)Michael Giles MBBS FRCP (Neurology)Christoph Gatzka MBBS (Bonn)MD FRACPJames Hurley MBBS BMedSci PhDFRACP (Infectious Diseases)Anthony Kemp MBBS FRACP(Endocrinology)Brett Knight MBBS FRACP(Respiratory)John Richmond MBBS FRACP(Nephrology)Wayne Spring MBBS FRCP FRACP(Sleep Studies/Neurology)NeurologistJohn King MD FRACPOncologistsGeoffrey Chong MBBS FRACPKate Hamilton MBBS FRACPStephen Vaughan MBBS FRACPClinical Research Co-ordinatorCarmel Goss RNSub-Acute MedicineClinical Director of Sub-AcuteMedicineMark Yates MBBS FRACPPhysiciansSarah Abrahamson MBBS FAFRMJudith Adams MBBS DGM FRACPStephen Campbell MBBS FRACPJohn Hurley MBBS LRCP MRCS DObstRCOG MRCP FAFRMRosie Shea MBBS FRACPMichael Vagg MBBS FAFRM (RACP)Palliative CareDirector of Palliative CareDavid Brumley MBBS FRACGP MSCFAChPMPalliative care ClinicianKirrily Hartnell MBBS FRACGPSurgical ServicesChairman and Clinical DirectorDavid Cook MBBS FRACS (Urol)Clinical Supervisor AdvancedSurgical TrainingStephen Tobin MBBS FRACSSurgeonsGeneral:Ruth Bollard MB ChB FRCS (Gen)Lean Peng Cheah MBBS FRACS MRCSPeter Denton MBBS FRACASDavid Deutscher BSc MBBS FRACSStuart Eaton MBBS FRACSTom Fisher MBBS FRACSAndrew Lowe MBBS FRACSBruce Stewart MBBS FRACSStephen Tobin MBBS FRACS CIBGSRobert Ventura MBBS FRCS FRACSVascular SurgeonsMichael Condous MBBS FRACSRobert Ventura MBBS FRCS FRACSUrologistsDavid Cook MBBS FRACSLachlan Dodds MBBS FRACSRichard McMullin MBBS FRACSDonald Moss MBBS FRACS FACSOrthopaedic SurgeonsIstvan (Steve) Csongvay MBBS FRACSHans Lombard MB ChB FC ORTHO(SA)David Mitchell MBBS FRACSJohn Nelson MBBS FRACSJohn Patrikios MBBS FRACSPaul Plank MBBS FRACSOto-Rhino LaryngologistsPaul Donoghue MBBS FRCS (Otol)Mark Guirguis MBBS FRACSNiall McConchie MBBS FRACSOphthalmologistsDavid McKnightMBBS FRACO FRACSMichael Toohey MBBS FRACOFacio MaxilliaryGraeme Fowler MDSc FDSRCPSPlastic SurgeonRobert Sheen MBBS FRCS FRACSWomen and Children's ServicesChairman and Clinical DirectorPaul Davey MBBS FRACOGGynaecological OncologistTom Jobling MBBS FRACObstetricians andGynaecologistsRussell Dalton MBBS FRACOGMarilyn Fooks MBBS FRACOGDeepika Monga MBBS FRACOGAnna Rogers MBBS FRACOGPaediatriciansMaurice Easton MBBS FRACPBrendan McCann MBBS FRACPHarry Zehnwirth MBBS FRACPNeurologist (Paediatric)Michael Hayman MBBS FRACPCritical Care ServicesChairman of Critical Care andDirector of EmergencyDepartmentJaycen Cruickshank MBBS FACEMDirector of AnaesthesiaFred Rosewarne MBBS FANZCADeputy Director of AnaesthesiaJohn Oswald MBBS FANZCASupervisor of Training inAnaesthesiaMichael Shaw MBBS FRCA FANZCAAnaesthetistsBruce Christie MBBS FANZCAGraeme Clarke MBBS FANZCARob Gazzard MBBS FANZCAFFICANZCAGreg Henderson MBBS FANZCAGreg Hughes MBBS FANZCATony Keeble MBBS FANZCARoss Phillips MBBS FANZCARobert Ray MBBS FANZCAAngus Richardson MBBS FANZCASanjay Sharma MBBS MDMichael Shaw MBBS FRCA FANZCANeil Shorney MBChB FRCAPeep Toom MBBS FANZCAMark Tuck MBBS FANZCAMichael Whitehead MBBS FANZCADirector of Intensive CareTony SutherlandMBBS FANZCA FFICANZCADeputy Director ofIntensive CareRob GazzardMBBS FANZCA FFICANZCAAnaesthetists/IntensivistsBruce Christie MBBS FANZCAGreg Henderson MBBS FANZCARobert Ray MBBS FANZCAMark Tuck MBBS FANZCACraig Mitchell MBBS FANZCAEmergency DepartmentDirector of Emergency MedicineJaycen Cruickshank MBBS FACEMDeputy Director ofEmergency MedicineSteve Pincus MBBS FACEM (DEMT)Heather Crook MBBS FACEMEmergency PhysiciansNigel Beck MBBS FACEMDavid Bruce MBBSJoanne Brown MBBS FACEMPauline Chapman MBBS FACEMAndrew Crellin MBBS FACEMMark Harris MBBSAmanda Lishman MBBS FACEMVince Russell MBBSSpiro Tsipouras MBBS FACEMAmanda Wilkin MBBS FACEMSenior Medical Officers(Emergency Medicine)Ahmed Alwan MBBSWaad Elias MBBSRadiologyDirector of RadiologyRobert House MBBS FRACR DDURadiologistsRoss Breadmore MBBS MMed FRACRAlIstair Firkin MBBS FRACRMolly House MBBS FRANZCRChien-Ping Ho MBBS FRANZCRAlex Meakin MBBS FRACRJim Mullany MBBS FRACRRoss Wilkie MBBS FRACR FRCR DMRDDorevitch PathologyPathologistsAnthony Roberts MBBS FRCPA FRC(Path) MIACDavid Clift MBBSVanaja Muthurajah MBBS FRCPALaboratory ManagerMichael Phyland BAppScForensic AssistantCharles HarpurPharmacyDirectorGeoff McCurdyBPharm GradDipBusMgt FSHPHealth Information ServicesManager Clinical InformationServicesPauline Basilio BAppSc (MRA)Manager, LibrariesNorma Worswick AALIAPSYCHIATRIC SERVICESExecutive Director PsychiatricServicesKen BurnettMHA BSW BA AMGC RPNDirector of Clinical ServicesAbdul Khalid (A/Prof) MBBS FRANZCPMD(Psych) CCSTConsultant PsychiatristsPraveen ThottappililMBBS MD(Psych)Rajul Tandon MBBS MD(Psych)Rajneesh Singh MBBS MD(Psych)Anupam Pokharel MBBS MD(Psych)Ram Singh MBBS MD(Psych)Manisha Mishra MBBS MD(Psych)Vinit Mathur MBBS DPM MD(Psych)Ramesh Chandra MBBS MD(Psych)Suneel Chamoli MBBS MD(Psych)Sonia Ghai MBBS DPM(Psych)DNB(Psych)David Barton MBBS(UNSW) FRANZCPMRACMARichard Kefford MBBS FRANZCPCert.Acc.Trng C&A Psychiatry (RANZCP)Service ManagersManager Ballarat PsychiatricServicesMichael Struth MHSM RPNGradCertHlthSci (HSM).Manager Ballarat NorthernAdult Community PsychiatricServicesTamara Irish RN RM RPNManager Ballarat SouthernAdult Community PsychiatricServicesFrancis Maher RN RPNBAppSc(NsgAdmin) BNsg FRCNAManager Horsham PsychiatricServices (Acting)Michael Fryar RPN BAppSc (NsgAdmin)GradDip (PsychNsg)Manager Ararat/StawellPsychiatric ServicesMichael Fryar RPN BAppSc (NsgAdmin)GradDip (PsychNsg)Manager Child and AdolescentMental Health ServicesJoy Nicholls RN RPN BN GradDipMgtGradDipFamilyTherapyManager Aged Persons MentalHealth ServicesDarren Gannon Psychologist BA(Hon)MBMManager Primary Mental Healthand Early Intervention ServicesNiki Reeve RN RPN PGradHRMgtManager Education, Trainingand DevelopmentJulia Hailes RPN B.Ed Dip Ass&TrngSystems M.EdManager Quality andPerformanceMario Santilli RPN GradDipPsychNsgNURSING SERVICESExecutive Director NursingServicesGeraldine WebsterRN BAppScNsg BN(Management),GradCertGerontology FRCNADirector Nursing SupportServicesMick Kirby RN BAppScNsg CCRNDirector Nursing Education &Practice DevelopmentDenielle BeardmoreMEd GradDipEdTGradDipAdvClinicalNsgOnc/PallCareBN DipHlthSci Cert IVAss&TngService Director, InternalMedicine & Critical CareAngie Spencer RN GradDipBus(e-Bus&Mrktng)16Ballarat Health Services ANNUAL REPORT 2006 - 2007

17 Director of OutpatientsHelen Watt RN RN MHN CertHDGradDipHMDirector of OperationsFiona Brew RN CertPeriopNsgGradDipAcuteCareNsg MBANurse Unit Managers4 South/Day Oncology:Louise Taylor RN BN CertCritCareCertHlthServicesMgt DipBus DipBus(HR)4 North/4 West:Vicki Thomas RN BNCertHlthServicesMgtDialysis UnitCathy Thomas RN BN Cert HlthServicesMgtEmergency DepartmentPhil Catterson RN BN CCRN MBAIntensive Care UnitSue Garner RN BN CCRNGradCertTryEd MEd CertIVAss&Tng(01/07/05 to 19/02/06)Sophia Jasiowiski RN(27/03/06 to 30/06/06)Service Director, SurgicalJoan ScarffRN GradDipAdmin(Hlth)Clinical Nurse ConsultantsInfection ControlSue Flockhart RN BNGradDipInfectnCntrl GradDipMgt RGNCMRCNAStomal Therapy/Breast CancerSupportLeeanne White RN RM BN,StomalTherapyCert AccredBCN MRCNAPain ManagementLouise Humble RNGradDipAcuteCareNsg ICU/CCUCertMRCNA GradDipSciMedicine(PainMgt)CognitionMeredith Theobold RN RPN CRRNMRCNA GradCertNsg(MentalHlth)Nurse Unit ManagersMedical Assessment PlanningUnit/3 NorthAnnette MacFarlane RNGradDipBusMgt GradDipHlthSrvMgt3 South:Janine Harris RN RM EmergCertBHlthSc(Nsg) GradDipNEd GradCertMgtMN2 North:Danelle Klein RN BN CertOrthopaedicsNonnie Tennant RN CertRehabCertMgtService Director,Women & ChildrenDesley Beechey RN RM BN MMGradDipMidwifery GradCertMgt JPBed Management/Nurse BankJon Haynes RN BN Grad Dip Periop NGrad Cert CCAfter Hours Co-ordinatorsMarlene Monck RN CertCCareGradDipBusMgtRita Coad RN RMLiana Besenghi RN RM BN BA BTeachGradDipAdmin(Hlth)Cheryl Allen RN RMSofia Jasiowski RN CertCritCare &CardioThoracicNsgVal Livitsanis RN GradDipHlthSc(Ed)Jenny Wallace RNNurse Unit ManagersMaternity Services ClinicalServicesHelen Leonard RN RM BNGradDipMgtMaternity Services AmbulatoryServicesSue McRae RN RM GradDipCommHlthPaediatric & Adolescent UnitSusan Skinner RN RSCNBallarat Health Services ANNUAL REPORT 2006 - 2007Perioperative ManagerJoy Taylor RN CertPerioperativeNsgGradDipMgt MRCNANurse Unit ManagersOperating SuiteLeena Stephens RN Cert Periop NsgPerioperative and Day ProcedureUnitJill O'Flynn BN(PostReg)CertOrthopaedicNsgCertAnaesth&RcvryRmNsg GradCertMgtSusanne Lockyer RN (Maternity Leave)(01/07/06-07/02/07)Marianne Crowe RN BN (Post Reg)Certificate of Stomal Therapy(12/02/07-30/06/07)CSSDDenise Jackson RN BN(PostReg)GradCertInfctnCntrl MRCNARadiologyFiona Muller RN GradDipEDGradDipBusMgtDirector of NursingQueen Elizabeth CentreDot Rogers RNDiv1 RPN CRRNBHlthSci(Nsg) GradDipAdmin(Hlth)MNS MRCNA AAIMNurse Unit ManagersJim Gay Unit (GEM)Glenn Taylor RN BNPsychNsgTalbot PlaceMarie Dell RN PBGNCBill Crawford LodgeBarbara Delmenico RN PPGNCCertBusMgtGandarra Palliative Care UnitMaree Kewish RNDiv1 BN(PostReg)Inpatient RehabilitationLinda Govan BN MHlthAdminGradDipNsgMgtDirector of Nursing, QueenElizabeth Village & Hailey HousePat Erwin RNDiv1 RGNC BNMRCNA GradCertMgtFacility ManagersPS HobsonKathy Pollard RN PBGNCGradDipHlthSci(Gerontics)Shirley Madden RN PBGNCWB MesserSue Hall RNDiv2 GradCertMgtHailey HouseDiane Howell CertIII CommServices &AgedCareDirector of Nursing EurekaComplexRoss McPhersonRN RPN GradDipMgtFacility ManagersGeoffrey CutterMargaret Walsh RN RM BNGradDipMgt GradCertAgedCarePat Sharp RNEureka Village HostelLee Prentice RNDiv2Director of Nursing SebastopolComplex and Pleasant HomesHostelChristine Sloman RN Psych NsBHlthSci(Nsg) (26/02/07-30/06/07)Facility ManagersPleasant HomesAllan Carter RNDiv2Jack Lonsdale LodgeSue Paine RN RM PostGradGerionticJenny Relouw RN PostGradGerionticJames Thomas Court and JessieGillett CourtKay Wheeler RN RMChemotherapyCert GradDipBusMgtPastoral Care CoordinatorBruce Eldridge BSW FCResidential Services QualityManagerClaudio Dellore RPN RNBAppSc(NurseEd&Admin)PostGradDip(Nsg)FINANCEExecutive DirectorDale Fraser MBA BBus CPA AFCHSECHE AHSFMADeputy DirectorMick Smith BCom AHSFMA ASA CPAMedical Imaging ChiefRadiographerRichard van Dreven M.I.S.R.R.T. M.I.R.DipAppSc (Med Radiation)GradDipAdmin.Director Information TechnologyPaul Jurman BBus PMP AAIPMManager SupplyRussell King MAHSPO MCIPSAHUMAN RESOURCESExecutive DirectorTrevor Olsson BBus AIMM AFAHRIDeputy Director/ EmployeeRelations ManagerKevin Stewart BAppSc(PT) GradDipErgAAIMManager, Payroll ServicesLauren WrightManager, Human ResourcesRod Beaumont PNIAManager, Occupational Healthand SafetySteve Romeo DipHlth(OHS) DipBMgtHuman Resources ConsultantMegan Ali BMgt(HR)Recruitment and ContractsManagerFiona McMeekin BMgt(HR)Manager, SecurityAllan McColleyALLIED HEALTHExecutive DirectorWendy Hubbard BAppSc(PT)MAppSc(HM) MBA AFCHSE CHEManager, Service Planning andQualitySue Gervasoni RN RPN BN CertCritCareMBACoordinator Clinical GovernanceKeren Day RN BNGradDipAdvNsg/WomensHlthCertContPromotionCoordinator, Risk ManagementLois Abraham RN MRCNGradCertOnc/PallCare DipBusMgtManager, Centre Against SexualAssaultShireen Gunn BSW BEdClinical Manager DieteticsMeredith Atkinson BAppSc(Nut)GradDipDiet MPHClinical Manager ExerciseTherapyKerry Walsh BEd(PE)Clinical Manager PhysiotherapyJenny Fitzgerald BAppSci(PT)GradDipPhysio(Neuro) MBA AFACHSEAIMMClinical Manager PodiatryMargaret Dawson BAppSc(Pod)GradDip(Pod) MBAClinical Manager Prosthetics/OrthoticsMichelle Janssen BAppSc(P&O)DipBusMgtClinical Manager PsychologyRobert Moss DPsych BA(Psych) RPNGradDipBehavMan MAPsS CCNClinical Manager OccupationalTherapyMichele Pearson BAppSc(OT)GradDip(HSM)Clinical Manager SpeechPathologyAcushla Thompson BAppSc(SP)CradCert(Mgt) MSPAA CPSPCoordinator, Allied HealthQuality and SafetyCathy Caruso BAppSci(OT)GradDipHlthSci(HEd) MAAOTManager, Community ProgramsMarianne Hubbard BA(Psych)GradDip(Psych)Business Manager, CommunityProgramsJenny Paulson Grad Dip BusinessManagement MBAManager, Aged Care AssessmentServicesJannine Rigby RN RPN BA(Nursing)Grad.Dip. Business Management MBAManager, Carer's ProgramsCheryl Hines Dip Welfare Adv. Dip.Business ManagementManager, Hospital AdmissionRisk ProgramLinda Govan RN Grad Dip (NursingManagement) Masters in HealthAdministrationManager, LinkagesMichelle Veal RN BN Grad.Cert.(Business Admin)Manager, Planned ActivityGroupsJan Stewart B App Sci-Phys Ed; GradDip (Health Sci)Manager, Rehabilitation in theHomeRoslyn McIntyre RN BN post regAdvanced Continence NurseSpecialist, Grampians RegionalContinence ServiceShirley Whitaker RN BNCertContPromotion Grad.Cert.HealthCoordinator, GrampiansRegional Palliative Care TeamJade Odgers RN Grad Dip (Pall Care)Grad Dip (Psych) Grad DipManagement Cert IV Workplace &Assessment & TrainingCoordinator, Hospital In TheHomeTrish Twaits RN RM MRCNA GradDip(Management) Stomal TherapyCoordinator, Post Acute CareHelen Jarvis RN RM BN GradCertMgtMRCNAAllied Health Ambulatory CareCoordinatorClaire Bridson B Applied SC OT GradCert ManagementDomiciliary Services CoordinatorMargaret Dawson BAppSc(Pod)GradDip(Pod) MBACORPORATE SERVICESExecutive DirectorSteven Jones GradCertPubSecMgtAFCHSEDirector, Major Projects &InfrastructureChris Lockett GradDipBusManager, Engineering ServicesRay Isaac DipMechEng GradCertMgtManager, BHS CateringRussell Hardy GradCertMgtCertIV(FoodTech) PTC MIHHCGeneral Manager, Safety LinkPeter LatchfordManager, Eureka LinenPaul Robinson MasterDrycleanerCertMgtManager, EnvironmentalServicesDon Colbert GradCertMgt

YEAR IN REVIEWFINANCIAL 2005/06 2006/07 %change18Total Revenue 201,194 211,926 5.33%Total Expenditure 202,332 212,744 5.15%Total Assets 224,161 228,279 1.84%Total Liabilities 60,389 65,211 7.98%Performance IndicatorsInpatients treatedAcute Hospital 28,724 30,318 5.55%Extended Care 845 907 7.34%Psychiatric Care 719 722 0.42%ALOS (Acute) 2.51 2.39 -4.93%Bed DaysAcute 72,196 72,444 0.34%Extended Care 20,672 20,766 0.45%Psychiatric 10,666 16,896 58.41%Ballarat Health Services ANNUAL REPORT 2006 - 2007Non-admitted Patient ServicesMedical Outpatients 37,561 35,709 -4.93%Allied Health 11,109 11,093 -0.14%Psychiatric Community 75,094 92,448 23.11%ACAS 2,835 2,696 -4.90%Community Rehabilitation 9,928 10,455 5.31%Emergency 40,062 40,014 -0.12%Numbers of Births 1127 1199 6.39%Waiting List (average)Acute 1242 1140 -8.21%Residential 49 58 18.37%OtherFundraising Income 893,000 945,000 5.82%Selene Tang Registrar Anaesthesiamonitors a patient during an operation.

ADMITTED PATIENTS19 ADMITTED PATIENTS Acute Mental Health Aged TotalBallarat Health Services ANNUAL REPORT 2006 - 2007SeparationsSameday 17,018 28 6 17,052Multiday 13,300 694 901 14,895Total Separations 30,318 722 907 31,947Emergency 10,957 434 4 11,395Elective 16,373 234 851 17,458Other inc Maternity 2,988 54 52 3,094Total Separations 30,318 722 907 31,947Total WIES 20,260Total Bed Days 72,444 16,896 20,766 110,106Source: VAEDNON ADMITTED PATIENTS Acute Mental Health Aged TotalEmergency Department Presentations 40,014 40,014Outpatient Services - occasions of services(VACS and Non VACS clinics) 35,709 92,448 128,157Other Services - occasions of services 11,093 11,093Total occasions of service 86,816 92,448 179,264Victorian Ambulatory Classification System -Number of Encounters 39,136 39,136Source: AIMS1. ELECTIVE SURGERY PERFORMANCE 2007 2006Category 1 proportion of patients waiting less than 30 days % 100% 100%Category 2 proportion of patients waiting less than 90 days % 96% 88%Category 3 proportion of patients waiting less then 365 days % 83% 91%Source: ESIS (Excludes PPP 500 codes)2. EMERGENCY DEPARTMENT PERFORMANCE 2007 20062a. Percentage of Triage category 1 emergency patients seen immediately 100% 100%2b. Percentage of emergency patients admitted to an inpatient bed withineight hours 83% 87%2c. Percentage of operating time on hospital bypass N/A N/A2d. Percentage of non-admitted emergency patients with a length of stay (LOS)of less than 4 hours 89% 90%2e. Number of patients with an emergency department length of stay greaterthan 24 hours 0 0Source: VEMD

BALLARAT HEALTH SERVICES REVENUE INDICATORS 2006/07Under 31-60 61-90 Over Total Total Total Total30 Days Days Days 90 Days 30/06/07 30/06/06 30/06/05 30/06/0420Privates 958,633 108,020 40,122 90,074 1,196,850 1,189,339 1,072,199 1,014,471TAC 12,363 1,542 10,831 8,109 32,846 37,729 4,466 0VWA 77,049 5,236 11,785 18,730 112,799 38,791 35,838 56,456Nursing Home 55,995 21,966 11,728 77,829 167,518 72,833 71,557 102,900Total 1,104,041 136,764 74,467 194,742 1,510,014 1,338,692 1,184,061 1,173,828Total Total Total TotalPrivate TAC W/C N/HAverage MonthlyRaisings 601,205 13,321 39,464 546,916Debtor 1,196,850 32,846 112,799 167,518Ballarat Health Services ANNUAL REPORT 2006 - 2007Average Collection Days30/06/2007 60.6 75.0 86.9 9.3Average Collection Days30/06/2006 57.5 169.1 56.9 4.2Average Collection Days30/06/2005 62.3 20.9 61.7 4.1Average Collection Days30/06/2004 68.9 N/A 23.1 6.5WORKFORCE DATA2003 2004 2005 2006 2007Total Staff Employed 2822.00 2932.00 2674.00 2836.00 2949.00Nursing 854.37 832.34 839.28 868.43 874.25Doctors 99.78 97.81 122.58 122.40 134.07Allied Health 188.35Ancillary Support 127.84 136.52 158.71 157.19Administration/ Clerical 250.67 268.93 281.75 301.76 328.81Hotel Allied 439.83 316.23 304.18 383.56 388.26Medical Support 222.79 218.40 145.79 152.46Total Staff Employed EFT 1833.00 1865.94 1902.71 1980.65 2035.04

21Caring for the EnvironmentBallarat Health Services ANNUAL REPORT 2006 - 2007Ballarat Health Services has continued its proactiveapproach towards a sustainable environment throughits effective waste management program and, in amore holistic way, through the establishment and careof sensory gardens around the residential sites.The key to reducing the amount of wastage producedhas been separating different types of waste“streams” together with the “3Rs” program ofReduce, Re-use and Recycle. Waste volumes andrecycling percentages have remained consistent whilethere have been significant increases to productionWASTE MANAGEMENTand organizational growth. Our overall waste volumeis up 40,232kg or 7.06 per cent on last year.In the 2006/07 Financial Year we recycled 37.42 percent up 0.46 per cent from 2005/06 figures. Wecontinue to recycle food waste, paper, cardboard,glass, cans and we donate equipment to 3rd WorldCountries.Total waste costs $ 2003 2004 2005 2006 2007Base Hospital 102,511 105,696 115.771 104,228 116,456QEC 23,726 25,516 27,951 28,852 30,581Recycling Volumes kgFood & waste to worm farm 128,960 131,040 119,120 136,980 144,540Paper and cardboard 53,980 57,680 59,650 55,915 60,360Cans, glass and plastics 2,759 3,046 3,913 5,140 6,819Document destruction 9,039 11,162 11,571 12,652 13,265Medical Scrap Metal 2,169Printer Cartridges 1,170Total 193,738 202,928 194,254 210,687 228,323Landfill kgGeneral Waste 263,070 256,050 266,370 285,450 301,470Incineration kgBio medical waste 61,017 60,903 68,272 73,753 80,329Waste Total kg 324,087 316,953 334,642 359,203 381,799Combined Total kg 517,825 519,881 528,896 569,890 610,122Recycling % 37.6 39.04 36.73 36.96 37.42WASTE PERCENTAGES FOR THEQUEEN ELIZABETH CENTRE ANDBASE HOSPITAL DURING 2006 - 2007FINANCIAL YEARGeneral Waste 49.41%Medical Metals / Cartridges 0.54%Biomedical Waste 13.17%Bottles, Cans and Plastics 1.12%Worm Farm 23.69%Paper and Cardboard 9.89%Document Destruction 2.19%

RESEARCH, ETHICS AND PUBLICATIONSThe Ballarat Health Services and St John of GodHealth Care, Ballarat joint Human Research EthicsCommittee (HREC) has continued to receiveapplications for single centre, multi-centre andinternational projects from a broad range of researchcategories, as shown below:Research CategoryNo of ApplicationsClinical (drug/device) trials 14Clinical Research 4Public Health 4Psychological 3Social Science 2Quality Management 2This year all applications submitted received ethicalapproval, generally conditional upon acceptance ofthe Committee's requests for amendments orfollowing clarification of matters of concern. Again,no complaints were received by the HREC in relationto ethical conduct of research approved by theCommittee and the NHMRC also made a positiveassessment of the HREC’s activities for the precedingtwelve months. Our annual report to the PrivacyCommissioner on the application of the HealthRecords Act (2001) in relation to Research wassimilarly well received.The projects listed below are those submitted byBallarat Health Services staff or Visiting MedicalOfficers and subsequently approved.• ALTERNATE: A Long Term Non-interventionalStudy to Evaluate the Effectiveness of Aranespin Dialysis Patients when Administered OnceEvery two-Weeks.Dr John Richmond, Specialist Physician andDirector of Dialysis• Developing rehabilitation techniques forimpulsivity and distractibility after frontal lobedamage in traumatic brain injury (TBI).Mr Chris Waters, Psychologist• The MAX study: A randomized Phase II/iiistudy to evaluate the role of Mitomucin C,Avastin and Xeloda in patients with metastaticcolorectal cancer.Dr Geoff Chong, Medical Oncologist• QUASAR: Multicentre international study ofcapecitabine +/- bevacizumab as adjuvanttreatment of colon cancer.Dr Geoff Chong, Medical Oncologist• Effects of Ivabradine on cardiovascular eventsin patients with moderate to severe chronic heartfailure and left ventricular systolic dysfunction.Dr John Stickland, Cardiologist• A Randomized, Double Blind, Placebo-Controlled, Multicentre, Dose-Escalation and DoseConfirmation Study to Evaluate the Safety andEfficacy of Rivaroxaban in Combination withAspirin Alone or with Aspirin and Thienopyridinein Subjects with Acute Coronary Syndromes(ATLAS ACS TIMI 46 Trial).Dr John Stickland, Cardiologist• (i) A Phase III, Multi-Centre, Randomized,Placebo-Controlled Withdrawal Study to evaluatethe Clinical Efficacy and Safety of MaintenanceTherapy with Abatacept in Subjects with ActiveCrohns Disease who have had an InadequateClinical Response and/or Intolerance to MedicalTherapy.(ii) A Phase III, Multi-Centre, Randomized,Placebo-Controlled Withdrawal Study to evaluatethe Clinical Efficacy and Safety of MaintenanceTherapy with Abatacept in Subjects withUlcerative Colitis who have had an InadequateClinical Response and/or Intolerance to MedicalTherapy.Dr Ian Hamilton, Gastroenterologist• A randomised, double-blind, parallel-group,multicentre, phase III study to assess the effectof Esomeprazole 20 and 40 mg od versus placeboin the occurrence of peptic ulcers during 26weeks in subjects on continuous low-doseacetylsalicylic acid (ASA).Dr Grant Phelps, Gastroenterologist• A (Phase IV) clinical study investigating the longterm efficacy and safety of Zometa®(Zolendronic Acid) Therapy in Patients withBone Metastases from Breast Cancer or HormoneResistant Prostate Cancer, or Bone Involvementfrom Multiple Myeloma, Assessing Long-termEfficacy and Safety.Dr Kate Hamilton, Medical Oncologist• The Saline Albumin Fluid Evaluation Translationof Research Into Practice Study.Dr Rob Gazzard, Deputy Director Intensive Care• Evaluating evidence-based treatment ofdepression in adolescents using Acceptance andCommitment Therapy delivered in rural/regionalservices.Dr Louise Hayes, CAMHS Clinician• Effectiveness, efficiency and acceptability ofgroup versus individual therapy for theremediation of expressive phonologicaldisorders in children: A pilot study.Dr Michelle O'Brien, Senior Lecturer andProject Supervisor• Venous Thromboembolism Taskforce Audit(Sanofi).Dr Grant Phelps, Gastroenterologist• A randomised Phase III Study comparingPemetrexed-Carboplatin with Docetaxel-Carboplatin as first line treatment for patientswith locally advanced or metastatic-non-smallcell lung cancer.Dr Kate Hamilton, Medical Oncologist• Randomised Phase III trial of De Gramontschedule 5-fluorouracil and Leucovorin plusIrinotecan in patients with previously treatedmetastatic colorectal cancer (Da Vinci trial).Australasian Gastro-intestinal Trials Group/PfizerProtocol AG0103CR/CEL-3-3.Dr Geoff Chong, Medical Oncologist22Ballarat Health Services ANNUAL REPORT 2006 - 2007Ballarat Health Services continues to be grateful to the HREC, and particularly the external members who volunteertheir time to continue the vital task of safeguarding our patients and staff as potential participants in research.

23 PUBLICATIONS & PRESENTATIONSBallarat Health Services ANNUAL REPORT 2006 - 2007• Baker, H and Gardner, T. ‘Teaching theFuture Generation of Social Workers’.5th International Conference on Social Workin Health & Mental Health.Hong Kong, December 2006• Brumley, D. ‘Pain & Symptom Management’.1st Grampians Regional Palliative CareConference - Ballarat, May 2007.• Brumley, D. ‘Suffering and Regeneration:Rivers and Sassoon’. ANZ Society of PalliativeMedicine Conference, Newcastle, October, 2006.• Brumley, D., Fisher, J., Robinson, H.,Ashby, M. (2006) Improving access to clinicalinformation in after hours community palliativecare. Australian Journal of Advanced Nursing,24(1):27-32.)• Cruickshank, J et al. Early computerisedtomography accurately determines thepresence or absence of scaphoid and otherfractures. Emergency Medicine Australasia.2007 (19): 223-228.• Fisher, J.W. (2006) Using secondary students’views about influences on their spiritual wellbeingto inform pastoral care. InternationalJournal of Children's Spirituality, 11(3):347-356.• Fisher, J.W. (2007) It’s time to wake up andstem the decline in spiritual well-being inVictorian schools. International Journal ofChildren's Spirituality, 12(2):165-177.• Fisher, J.W. ‘Understanding, Assessing andAttending to Palliative Care Patients’. ANZSociety of Palliative Medicine Conference,Newcastle, October, 2006.• Hubbard, M. ‘Improving the Waiting ListExperience for Community Care Clients.’ 16thAnnual Tri-State Conference, Aged &Community Care Victoria. February 2007.• Hurley JC. Epidemiology of Ventilatorassociated pneumonia among publishedstudies. Is there evidence of outbreaks? (Minorthesis accepted for the degree Master ofEpidemiology, University of Melbourne.June 2007).• Hurley, JC. Antibiotic based studies ofventilator associated pneumonia prevention: anovel approach to the evaluation of control grouprates using funnel plots. Presented at TheAustralian Society of Anti-microbials, Melbourne,August 2006.• Hurley, JC. Hazards of thrombolytic therapy forstroke: the real world experience. Intern Med.J. 2007;37:348-349.• McKenzie, K. J., Walsh, K., Livy, M.,Payne, W.R., Moss, R. , Atkinson, M.,Hubbard, W., Harvey, J.T.Bridging the gap between evidence-basedrecommendations and implementingbehavioural change: The use of cognitive andbehavioural strategies in a Diabetes PreventionPilot Initiative.29th Australian Association for Cognitive andBehaviour Therapy National Conference, Manly,NSW, October 2006.• McKenzie, K. J., Walsh, K., Livy, M.,Payne, W.R., Moss, R., Atkinson, M.,Hubbard, W., & Harvey, J.T.Changing Behaviour: Ballarat Health ServicesDiabetes Prevention Pilot Initiative.Australian Podiatry Association, Victoria, StateConference, Melbourne, November 2006.• Madas, E, Shea, SJ, & Gruner, L (2007)Clinical Governance Knowledge AndCompetencies Required By Victorian PublicHospital Medical Administrators - A Survey OfMedical Administrators Currently Woking InVictorian Public Hospitals. Proceedings of the5th Australasian Conference on Safety andQuality in Health Care. August 6 - 8, pp 83Brisbane Australia.• O'Brien, M., Dodd, K.J., and Bilney, B.(in press) A Qualitative analysis of a progressiveresistance exercise programme for people withParkinson's disease, Disability and Rehabilitation.• Peach, H G. ‘Religion, spirituality and health’.VMPF meeting, Central Gippsland Health Service,Sale, November 2006.• Peach, H G. ‘Researching hospital and familyhistories and patient biographies’. AnnualGeneral Meeting and Reunion, Ballarat BaseHospital Trained Nurses' League, November, 2006.• Peach, H G. Australia’s Vietnam Veterans.Australian Family Physician 2006; 35 (August):619-621.• Peach, H G. Spirituality. In Loris and Lucy’sLater Life Guide. Lorilu Press, Melbourne, 2007.• Phelps, G. ‘Junior Medical Workforce in a ruralHospital: Building capacity through physiciantraining’. To be presented as a poster atInternal Medicine Society of ANZ AnnualScientific meeting, Adelaide, September 2007.• Phelps, G. Credentialing and defining scope ofpractice for senior doctors. Vicdoc: July 2007.• Phelps, G. Gruner L., Watters DA.‘Engaging Rural Doctors in Quality Improvement -a collegiate first step’. To be presented at InternalMedicine Society of ANZ Annual ScientificMeeting, Adelaide, September 2007.• Phelps, G., Gruner L. ‘Quality ImprovementTraining: is this the promised land of DoctorEngagement?’ to be presented at the RoyalAustralasian College of Medical AdministratorsAnnual Scientific Meeting, Gold Coast, August2007.• Phelps, G., Gruner L., Watters D‘Making it better’. A series of one day workshopsthroughout regional Australia teaching qualityimprovement and team development skills toPhysicians, Surgeons and other specialists.Supported by the Support Scheme for RuralSpecialists 2006/2007.

STATUTORY REQUIREMENTS• Phelps, G., Gruner L., Watters D.‘Improving clinical quality by enhancingorganisational collaboration and skilldevelopment’. Presented at the SupportScheme for Rural Specialists Annual Forum,Melbourne, March 2007.• Phelps, G., Shea S. ‘Assessing Service Qualityin an outpatient setting: the patient viewpoint’.Accepted for publication in Journal of theAustralasian Association for Quality in HealthCare. November 2007.• Shea, SJ, Phelps, G & Ahern, S (2007)Working Towards Engaging And SupportingClinicians In Healthcare Delivery, QualityImprovement And Organisational ActivitiesThrough Standardised And Automated DataReporting. Proceedings of the 5th AustralasianConference on Safety and Quality in Health Care.August 6 -8, pp 60 Brisbane Australia.• Tasheen, S., Reid, PC., Charan, P.Short-term complications of the trans-obturatorforamen procedure for urinary stress incontinence.Journal of Obstetrics and Gynaecology, July 2007;27(5): 500-502.• Theobald, M. ‘Dementia Care in HospitalsProgram’. Geriaction National Conference 2007:Caring for the Aged in all contexts: Models Mythsand Magic.• Townsend, A. ‘Alternative Methods in ClinicalSupervision’. Keynote Speech: ClinicalSupervision Conference, Austin Health,Melbourne, April 2007.LEGISLATIVE COMPLIANCEBallarat Health Services has introduced a web basedcompliance software package to record and managerisks and compliance obligations in line withAustralian Standards.WHISTLEBLOWERS PROTECTION ACT 2001There were no disclosures received during 2006/07.Disclosures of improper conduct by Ballarat HealthServices or its employees can be made to theProtected Disclosure Officer in writing to BallaratHealth Service PO Box 577 Ballarat Vic 3353 or bytelephone 5320 4093.FREEDOM OF INFORMATION REQUESTSApplications received:2003 2004 2005 2006 2007282 252 200 215 293FEESAll fees charged by Ballarat Health Services areregulated by the Commonwealth Department ofHealth and Aged Care, the CommonwealthDepartment of Family Services and the Hospitals andCharities (Fees) Regulations 1986, or as otherwisedetermined by the Department of Human Services.NATIONAL COMPETITION POLICYBallarat Health Services complied with all governmentpolicies regarding competitive neutrality with respectto all tender applications.24Ballarat Health Services ANNUAL REPORT 2006 - 2007VICTORIAN INDUSTRY PARTICIPATION POLICYACT 2003Ballarat Health Services abides by the principles of theVictorian Industry Participation Policy. In 2006/07there were no contracts commenced or completed byBHS under this act.CONSULTANCIESThere were no consultancies in excess of $100,000 atBallarat Health Services during the year. There werefour consultancies less than $100,000 totaling$124,473.COMPLIANCE WITH BUILDING ACTThe following report describes the extent to whichBallarat Health Services complies with the Building Act1993 - Guidelines issued by the Minister for Financefor publicly owned buildings.

BUILDING STANDARDS AND CONDITION25 ASSESSMENTSBallarat Health Services has instituted a system ofannual building inspections to comply with theMinister for Finance’s guidelines for maintainingstandards of publicly owned buildings to determinecompliance with the building owner’s duty of care.Minor works are addressed using the Health Servicesmaintenance budget. Capital works are referred tothe Capital Planning and Works Committee forprioritisation and for funding approval to the FinanceCommittee as part of the Capital Budget.Interim works identified in the initial fire audits acrossthe Base Hospital site are scheduled to be completedearly in 2007/08.The works to address all issues raised in the re-auditsof the fire safety at all Ballarat Health Services siteswere completed in October, 2007.During the Financial Year the following works andmaintenance were undertaken to ensure compliancewith relevant standards.Ballarat Health Services ANNUAL REPORT 2006 - 2007BUILDING WORKS• Occupancy permits issued 1• Works in construction and the subject 3of mandatory inspectionsMAINTENANCE• Notice issued for rectification of sub-standard 0building requiring urgent attention• Involving major expenditure and 0urgent attentionESSENTIAL SAFETY MEASURESBallarat Health Services buildings constructed afterJuly 1994 have been designed to conform to TheBuilding Act 1993 and its Regulations, as well as tomeet other statutory regulations that relate to healthand safety matters. All have been issued withOccupancy Permits. All building practitioners engagedby Ballarat Health Services are required to produceevidence of current registration on commencing aproject, as well as evidence that their registered statuswill be maintained throughout the year.Buildings constructed prior to July 1994 were notsubject to issue of Occupancy Permits. However,regardless of the age of each building Ballarat HealthServices is obliged to maintain essential safetymeasures, as far as is practical, in accordance with theBuilding Regulations 2006.Compliance involves ensuring that all essential safetymeasures covered by the Regulations are beingmaintained to fulfil their purpose. It also involveskeeping records of maintenance checks, completingan Annual Essential Safety Measures Report, andretaining records and reports on the premises forinspection by the Municipal Building Surveyor or theChief Fire Officer on request.Safety Measures Reports (Form 10) are preparedannually for properties owned by Ballarat HealthServices to confirm that all of the essential services areoperating at the required level of performance.A number of capital projects commenced during theyear and toping the list was $3 million worth ofelectrical infrastructure upgrades at the Base Hospitaland Queen Elizabeth Centre.

ACCOUNTABLE OFFICER'S, CHIEF FINANCE OFFICER'S AND MEMBEROF RESPONSIBLE BODY'S DECLARATIONWe certify that the attached financial statements forBallarat Health Services have been prepared inaccordance with Part 4.2 of the Standing Directionsof the Minister for Finance under the FinancialManagement Act 1994, applicable Financial ReportingDirections, Australian Accounting Standards and othermandatory professional reporting requirements.We further state that, in our opinion, the informationset out in the operating statement, balance sheet,statement of recognised income and expense, cashflow statement and notes to the forming part of thefinancial statements, presents fairly the financialtransactions during the year ended 30 June 2007 andfinancial position of the Ballarat Health Service as at30 June 2007.We are not aware of any circumstances which wouldrender any particulars included in the financialstatements to be misleading or inaccurate.26Ballarat Health Services ANNUAL REPORT 2006 - 2007ChairpersonMs H L McLennanChief Executive OfficerMr A R RoweChief Finance OfficerMr D J FraserDated the 21st day of August, 2007 at Ballarat.

27Ballarat Health Services ANNUAL REPORT 2006 - 2007

28Ballarat Health Services ANNUAL REPORT 2006 - 2007

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 200729Ballarat Health Services ANNUAL REPORT 2006 - 2007BALLARAT HEALTH SERVICESOPERATING STATEMENT FOR THE YEAR ENDED 30 JUNE 2007Note Parent Parent Consolidated ConsolidatedEntity Entity2007 2006 2007 2006$000 $000 $000 $000Revenue from Operating Activities 2,2(a) 202,332 194,073 202,433 194,126Revenue from Non-Operating Activities 2,2(a) 625 180 687 229Employee Benefits 151,071 143,625 151,071 143,625Supplies and Consumables 18,382 17,056 18,382 17,056Other Expenses from Continuing Operations 33,347 32,706 33,383 32,755Finance Costs 4 8 45 8 45NET RESULT BEFORE CAPITAL & SPECIFIC ITEMS 149 821 276 874Capital Purpose Income 2,2(a) 8,806 6,839 8,806 6,839Capital Purpose Expense 2(c) 946 694 946 694Depreciation 3 8,954 8,157 8,954 8,157(1,094) (2,012) (1,094) (2,012)NET RESULT FOR THE YEAR 17 (945) (1,191) (818) (1,138)*This statement should be read in conjunction with the accompanying notes.The sixth operating theatre wascommissioned during the year,which will enable a 15 per centincrease on surgical cases to beperformed.

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007BALLARAT HEALTH SERVICESBALANCE SHEET AS AT 30 JUNE 2007Note Parent Parent Consolidated ConsolidatedEntity Entity2007 2006 2007 2006$000 $000 $000 $000ASSETSCurrent AssetsCash and Cash Equivalents 5,18 2,834 3,456 2,961 3,502Inventory 8 1,084 1,066 1,084 1,066Receivables 6,18 5,374 7,033 5,374 7,073Other Financial Assets 7,18 14,193 9,223 14,193 9,223Prepayments 9 766 880 766 880Total Current Assets 24,251 21,658 24,378 21,74430Ballarat Health Services ANNUAL REPORT 2006 - 2007Non Current AssetsReceivables 6,18 1,683 1,972 1,683 1,972Other Financial Assets 7,18 11,942 10,965 12,844 11,781Property, Plant and Equipment 10(a) 188,662 187,674 188,663 187,675Intangible Assets 10(b) 729 982 729 982Prepayments 9 - 7 - 7Total Non Current Assets 203,016 201,600 203,919 202,417TOTAL ASSETS 227,267 223,258 228,297 224,161LIABILITIESCurrent LiabilitiesPayables 11,18 10,351 9,681 10,351 9,681Employee Benefits 13 30,002 27,303 30,002 27,303Other Liabilities 14 19,424 16,778 19,424 16,778Interest Bearing Liabilities 12,18 - 379 - 379Total Current Liabilities 59,777 54,141 59,777 54,141Non Current LiabilitiesEmployee Benefits 13 4,792 5,132 4,792 5,132Other Liabilities 14 642 1,116 642 1,116Total Non Current Liabilities 5,434 6,248 5,434 6,248TOTAL LIABILITIES 65,211 60,389 65,211 60,389NET ASSETS 162,056 162,869 163,086 163,772EQUITYSpecific Purpose Reserve 15,16 16,800 22,608 16,800 22,608Contributed Capital 15 147,914 147,914 147,914 147,914Asset Revaluation Reserve 15 17,126 16,994 17,126 16,994Retained Earnings 15 (19,784) (24,647) (18,754) (23,744)TOTAL EQUITY 15 162,056 162,869 163,086 163,772*This statement should be read in conjunction with the accompanying notes.

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 200731 BALLARAT HEALTH SERVICESSTATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2007Ballarat Health Services ANNUAL REPORT 2006 - 2007Note Parent Parent Consolidated ConsolidatedEntity Entity2007 2006 2007 2006$000 $000 $000 $000Inflows Inflows Inflows Inflows(Outflows) (Outflows) (Outflows) (Outflows)TOTAL EQUITY AT BEGINNING OF 162,869 164,060 163,772 164,910FINANCIAL YEARGain/(Loss) on Asset Revaluation 15 132 - 132 -NET INCOME RECOGNISED DIRECTLY IN EQUITY 132 - 132 -Net result for the year (945) (1,191) (818) (1,138)TOTAL RECOGNISED INCOME AND EXPENSE (813) (1,191) (686) (1,138)FOR THE YEARCLOSING BALANCE 162,056 162,869 163,086 163,772BHS employs almost 3000 staff injecting $149 million into the Ballarat and Grampians region economy.*This statement should be read in conjunction with the accompanying notes.

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007BALLARAT HEALTH SERVICESCASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2007Note Parent Parent Consolidated ConsolidatedEntity Entity2007 2006 2007 2006$000 $000 $000 $000Inflows Inflows Inflows Inflows(Outflows) (Outflows) (Outflows) (Outflows)CASH FLOWS FROM OPERATING ACTIVITIESReceiptsOperating Grants from Government 179,163 165,679 179,163 165,679(inclusive of goods and services tax)Patient Fees 12,199 13,327 12,199 13,327Interest Received 2,290 932 2,352 981Other (inclusive of goods and services tax) 29,650 30,215 29,690 30,20832Ballarat Health Services ANNUAL REPORT 2006 - 2007PaymentsEmployee Benefits (148,712) (141,416) (148,712) (141,416)Goods and Services Tax Paid (11,610) (10,308) (11,610) (10,308)Other (inclusive of goods and services tax) (56,691) (52,267) (56,728) (52,316)CASH GENERATED FROM OPERATIONS 6,289 6,162 6,355 6,155Capital Development Funds 2,455 3,336 2,455 3,336Capital Grants 3,946 2,592 3,946 2,592Proceeds from Donations and Bequests 945 946 1,046 999NET CASH INFLOWS/(OUTFLOWS) FROM 17 13,635 13,036 13,802 13,082OPERATING ACTIVITIESCASH FLOWS FROM INVESTING ACTIVITIESPurchase of Property, Plant and Equipment (12,987) (13,590) (12,987) (13,591)Purchase of Investments (24,750) (20,758) (24,836) (21,459)Sale of Investments 18,935 19,865 18,935 19,865Proceeds from Sale of Property, Plant and Equipment 2,760 2,975 2,760 2,975NET CASH INFLOWS/(OUTFLOWS) FROM (16,042) (11,508) (16,128) (12,210)INVESTING ACTIVITIESCASH FLOWS FROM FINANCING ACTIVITIESInterest on Borrowings (8) (45) (8) (45)Repayment of Borrowings (379) (620) (379) (620)Repayment of Monies Held in Trust (6,146) (6,092) (6,146) (6,092)Proceeds from Monies Held in Trust 8,318 8,020 8,318 8,020NET CASH INFLOWS/(OUTFLOWS) FROM 1,785 1,263 1,785 1,263FINANCING ACTIVITIESNET INCREASE/(DECREASE) IN CASH HELD (622) 2,791 (541) 2,135CASH AND CASH EQUIVALENTS AT 3,456 665 3,502 1,367BEGINNING OF PERIODCASH AND CASH EQUIVALENTS AT 5 2,834 3,456 2,961 3,502END OF PERIOD*This statement should be read in conjunction with the accompanying notes.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FORTHE YEAR ENDED 30 JUNE 200733 NOTE 1: STATEMENT OF SIGNIFICANTACCOUNTING POLICIESThe general purpose financial report of Ballarat HealthServices has been prepared on an accrual basis inaccordance with the Financial Management Act 1994,Australian Accounting Standards, Statements ofAccounting Concepts and other authoritativepronouncements of the Australian AccountingStandards Board, and Urgent Issues GroupInterpretations.The Financial statements were authorised for issue byA. R. Rowe, Chief Executive Officer on 21 August2007.Ballarat Health Services ANNUAL REPORT 2006 - 2007BASIS OF PREPARATIONThe financial report is prepared in accordance withthe historical cost convention, except for therevaluation of certain non-current assets and financialinstruments, as noted. Cost is based on the fairvalues of the consideration given in exchange forassets.In the application of A-IFRS management is requiredto make judgements, estimates and assumptionsabout carrying values of assets and liabilities that arenot readily apparent from other sources. Theestimates and associated assumptions are based onhistorical experience and various other factors that arebelieved to be reasonable under the circumstance, theresults of which form the basis of making thejudgements. Actual results may differ from theseestimates.The estimates and underlying assumptions arereviewed on an ongoing basis. Revisions toaccounting estimates are recognised in the period inwhich the estimate is revised if the revision affectsonly that period; or in the period of the revision andfuture periods if the revision affects both current andfuture periods.Accounting policies are selected and applied in amanner which ensures that the resulting financialinformation satisfies the concepts of relevance andreliability, thereby ensuring that the substance of theunderlying transactions or other events is reported.The accounting policies set out below have beenapplied in preparing the financial statements for theyear ended 30 June 2007, and the comparativeinformation presented in these financial statementsfor the year ended 30 June 2006.(a) Reporting EntityThe financial statements include all the controlledactivities of Ballarat Health Services. Ballarat HealthServices is a not-for profit entity and therefore appliesthe additional AUS paragraphs applicable to "not-forprofit"entities under the Australian equivalents toIFRS.(c) Principles of ConsolidationThe assets, liabilities, incomes and expenses of allcontrolled entities of Ballarat Health Services havebeen included at the value shown in their auditedAnnual Financial Report. Any inter-entity transactionshave been eliminated on consolidation. Theconsolidated Financial Statements included theaudited Financial Statements of the controlled entitieslisted in Note 24.(d) Cash and Cash EquivalentsCash and cash equivalents comprise cash on handand in banks and investments in money marketinstruments, net of outstanding bank overdrafts. Bankoverdrafts are shown within borrowings in currentliabilities in the Balance Sheet.(e) ReceivablesTrade debtors are carried at nominal amounts dueand are due for settlement within 30 days from thedate of recognition. Collectability of debts isreviewed on an ongoing basis, and debts which areknown to be uncollectible are written off. A provisionfor doubtful debts is raised where doubt as tocollection exists. Bad debts are written off whenidentified.(f) InventoriesInventories include goods and other property heldeither for sale or for distribution at no or nominal costin the ordinary course of business operations. Itincludes land held for sale and excludes depreciableassets.Inventories held for distribution are measured at thelower of cost and current replacement cost. All otherinventories, including land held for sale, are measuredat the lower of cost and net realisable value.Cost for all other inventory is measured on the basisof weighted average cost.(g) Other Financial AssetsOther financial assets are recognised andderecognised on trade date where purchase or sale ofan investment is under a contract whose termsrequire delivery of the investment within thetimeframe established by the market concerned, andare initially measured at fair value, net of transactioncosts. Other financial assets are classified betweencurrent and non current assets based on the Board ofManagement's intention at balance date with respectto the timing of disposal of each asset.Dividend revenue is recognised on a receivable basis.Interest revenue is recognised on a time proportionatebasis that takes into account the effective yield on thefinancial asset.(b) Rounding OffAll amounts shown in the Financial Statements areexpressed to the nearest thousand dollars.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FORTHE YEAR ENDED 30 JUNE 2007(h) Intangible AssetsIntangible assets represent identifiable non-monetaryassets without physical substance such as patents,trademarks, goodwill, computer software anddevelopment costs.Intangible assets are recognized at cost. Costsincurred subsequent to initial acquisition arecapitalized when it is expected that additional futureeconomic benefits will flow to Ballarat HealthServices.Amortization is allocated to intangible assets withfinite useful lives on a systematic basis over the asset’suseful life. Amortization begins when the asset isavailable of use, that is, when it is in the location andcondition necessary for it to be capable of operatingin the manner intended by management. Theamortization period and the amortization method foran intangible asset with a finite useful life arereviewed at least at the end of each annual reportingperiod. In addition, an assessment is made at eachreporting date to determine whether there areindicators that the intangible asset concerned isimpaired. If so, the assets concerned are tested as towhether their carrying value exceeds their recoverableamount.Intangible assets with indefinite useful lives are notamortised. The useful life of intangible assets that arenot being amortised are reviewed each period todetermine whether events and circumstancescontinue to support an indefinite useful lifeassessment for that asset. In addition, Ballarat HealthServices tests all intangible assets with indefiniteuseful lives for impairment by comparing itsrecoverable amount with its carrying amount:• annually, and• whenever there is an indication that theintangible asset may be impaired.Any excess of the carrying amount over therecoverable amount is recognized as an impairmentloss.(i) Property Plant and EquipmentFreehold and Crown Land is measured at fair valuewith regard to the property's highest and best useafter due consideration is made for any legal orconstructive restrictions imposed on the land, publicannouncements or commitments made in relation tothe intended use of the land. Theoreticalopportunities that may be available in relation to theasset(s) are not taken into account until it is virtuallycertain that any restrictions will no longer apply.Buildings are measured at fair value less accumulateddepreciation and impairment.Plant, Equipment and Vehicles are measured atcost less accumulated depreciation and impairment.(j) Revaluations of Non Current AssetsFinancial Reporting Direction (FRD) 103B Non-currentPhysical Assets, prescribes that non-current physicalassets measured at fair value are revalued withsufficient regularity to ensure that the carryingamount of each asset does not differ materially fromits fair value. This revaluation process normally occursevery five years as dictated by timelines in FRD103Bwhich sets the next revaluation for the Health,Welfare and Community Purpose Group to occur onthe 30 June 2009, or earlier should there be anindication that fair values are materially different fromthe carrying value. Revaluation increments ordecrements arise from differences between an asset'scarrying value and fair value.Revaluation increments are credited directly to theasset revaluation reserve, except that, to the extentthat an increment reverses a revaluation decrement inrespect of that class of asset previously recognised atan expense in net result, the increment is recognisedas revenue in the net result.Revaluation decrements are recognised immediatelyas expenses in the net result, except that, to theextent that a credit balance exists in the assetrevaluation reserve in respect of the same class ofassets, they are debited directly to the assetrevaluation reserve.Revaluation increases and revaluation decreasesrelating to individual assets within a class are offsetagainst one another within that class but are notoffset in respect of assets in different classes.Revaluation reserves are not transferred toaccumulated funds on derecognition of the relevantasset.(k) DepreciationAssets with a cost in excess of $2,000 (2006: $2,000)are capitalised and depreciation has been provided ondepreciable assets so as to allocate their cost orvaluation over their estimated useful lives using thestraight-line methodology. Estimates of the remaininguseful lives for all assets are reviewed at leastannually. This depreciation charge is not funded bythe Department of Human Services. Depreciationrates are reviewed on an annual basis. Linen used inthe Linen Service is considered a fixed asset of BallaratHealth Services and depreciated accordingly.The following table indicates the expected useful livesof non current assets on which depreciation chargesare based.Building works currently in progress are notdepreciated until the completion of the buildingproject.2007 2006Buildings 30 to 50 years 30 to 50 yearsPlant & Equipment 8 to 10 years 8 to 10 yearsMedical Equipment 4 to 10 years 4 to 10 yearsComputers & 3 to 5 years 3 to 5 yearsCommunicationsFurniture & Fittings 3 to 10 years 3 to 10 yearsMotor Vehicles 2 to 7 years 2 to 7 yearsIntangible Assets 3 to 5 years 3 to 5 yearsOther 3 to 5 years 3 to 5 years34Ballarat Health Services ANNUAL REPORT 2006 - 2007

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FORTHE YEAR ENDED 30 JUNE 200735 (l) PayablesThese amounts represent liabilities for goods andservices provided prior to the end of the FinancialYear and which are unpaid. Normal credit terms arenet 30 days.Ballarat Health Services ANNUAL REPORT 2006 - 2007(m) ProvisionsProvisions are recognised when Ballarat HealthServices has a present obligation, the future sacrificeof economic benefits is probable, and the amount ofthe provision can be measured reliably.The amount recognised as a provision is the bestestimate of the consideration required to settle thepresent obligation at reporting date, taking intoaccount the risks and uncertainties surrounding theobligation. Where a provision is measured using thecashflows estimated to settle the present obligation,its carrying amount is the present value of thosecashflows.(n) Interest Bearing LiabilitiesInterest bearing liabilities in the Balance Sheet arerecognised at fair value upon initial recognition.Subsequent to initial recognition, all financial liabilitiesare recognised at amortised cost using the effectiveinterest method.Long Service LeaveCurrent Liability - unconditional LSL (representing10 or more years of continuous service) is disclosed asa current liability regardless of whether Ballarat HealthServices does not expect to settle the liability within12 months as it does not have the unconditional rightto defer the settlement of the entitlement should anemployee take leave.The components of this current LSL liability aremeasured at:• Present value - component that BallaratHealth Services does not expect to settle within12 months; and• Nominal value - component that Ballarat HealthServices expects to settle within 12 months.Non-Current Liability - conditional LSL(representing less than 10 years of continuous service)is disclosed as a non-current liability. There is anunconditional right to defer the settlement of theentitlement until 10 years of service has beencompleted by an employee. Conditional LSL isrequired to be measured at present value.Consideration is given to expected future wage andsalary levels, experience of employee departures andperiods of service. Expected future payments arediscounted using interest rates of nationalGovernment guaranteed securities in Australia.(o) Employee BenefitsWages and Salaries, Annual Leave and AccruedDays OffLiabilities for wages and salaries, including annualleave and accrued days off expected to be settledwithin 12 months of the reporting date arerecognised in the provision for employee benefits inrespect of employee's services up to the reportingdate, classified as current liabilities and measured atnominal values.Those liabilities that Ballarat Health Services does notexpect to settle within 12 months are recognised inthe provision for employee benefits as currentliabilities, measured at present value of the amountsexpected to be paid when the liabilities are settledusing the remuneration rate expected to apply at thetime of settlement.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FORTHE YEAR ENDED 30 JUNE 2007SuperannuationDefined contribution plansContributions to defined contribution superannuationplans are expenses when incurred.Defined benefit plansThe amount charged to the Operating Statement inrespect of defined benefit plan superannuationrepresents the contributions made by Ballarat HealthServices to the superannuation plan in respect to thecurrent services of current Ballarat Health Services'staff. Superannuation contributions are made to theplans based on the relevant rules of each plan.Employees of Ballarat Health Services are entitled toreceive superannuation benefits and the HealthService contributes to both the defined benefit anddefined contribution plans. The defined benefit plan(s)provide benefits based on years of service and finalaverage salary.Ballarat Health Services made contributions to thefollowing major superannuation plans during theyear:Defined benefit plans:• Health Super Defined Benefit• State Employees Retirement Benefit Scheme(SERB)• Emergency Services Super Revised Scheme• Emergency Services Super New SchemeBallarat Health Services does not recognise anydefined benefit liability in respect of thesuperannuation plan because Ballarat Health Serviceshas no legal or constructive obligation to pay futurebenefits relating to its employees; its only obligation isto pay superannuation contributions as they fall due.The Department of Treasury and Finance has assumedresponsibility for the defined benefit liability of theHealth Service, and administers and discloses theState's defined benefit liabilities in its financial report.Termination BenefitsLiabilities for termination benefits are recognisedwhen a detailed plan for the termination has beendeveloped and a valid expectation has been raisedwith those employees affected that the terminationswill be carried out. The liabilities for terminationbenefits are recognised in other creditors unless theamount or timing of the payments is uncertain, inwhich case they are recognised as a provision.On-CostsEmployee benefit on-costs are recognised andincluded in employee benefit liabilities and costswhen the employee benefits to which they relate arerecognised as liabilities.(p) Finance CostsFinance costs are recognised as expenses in the periodin which they are incurred.(q) Intersegment TransactionsTransactions between segments within Ballarat HealthServices have been eliminated to reflect the extent ofBallarat Health Service's operations as a group.(r) Joint VenturesInterests in jointly controlled operations and jointlycontrolled assets are accounted for by recognising inBallarat Health Services' financial statements, its shareof assets, liabilities and any revenue and expenses ofsuch joint ventures. Details of the joint venture are setout in note 21.(s) Leases (Leased Property and Equipment)Leases of property, plant and equipment are classifiedas finance leases whenever the terms of the leasetransfer substantially all the risks and rewards ofownership to the lessee. All other leases are classifiedas operating leases.Assets held under a finance lease are recognised asnon current assets at their fair value or, if lower, atthe present value of the minimum lease payments,each determined at the inception of the lease. Theminimum lease payments are discounted at theinterest rate implicit in the lease. A correspondingliability is established and each lease payment isallocated between the principal component and theinterest expense.Finance leased assets are amortised on a straight linebasis over the shorter of the estimated useful life ofthe asset or the term of the lease.Contingent rentals associated with finance leases arerecognised as an expense in the period in which theyare incurred.Operating lease payments, including any contingentrentals, are recognised as an expense in the operatingstatement on a straight line basis over the lease term,except where another systematic basis is morerepresentative of the time pattern of the benefitsderived from the use of the leased asset.36Ballarat Health Services ANNUAL REPORT 2006 - 2007

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FORTHE YEAR ENDED 30 JUNE 200737 (t) Revenue RecognitionRevenue is recognised in accordance with AASB 118Revenue and is recognised as to the extent it isearned. Unearned income at reporting date isreported as income received in advance.Amounts disclosed as revenue are, where applicable,net of returns, allowances and duties and taxes.Government GrantsGrants are recognised as income when Ballarat HealthService gains control of the underlying assets inaccordance with AASB 1004 Contributions. Wheregrants are reciprocal, revenue is recognised asperformance occurs under the grant. Non-reciprocalgrants are recognised as income when the grant isreceived or receivable. Conditional grants may bereciprocal or non-reciprocal depending on the termsof the grant.Indirect Contributions• Insurance is recognised as revenue followingadvice from the Department of Human Services.• Long Service Leave (LSL) - Revenue is recognisedupon finalisation of movements in LSL liability inline with the arrangements set out in the AcuteHealth Division Hospital Circular 16/2004.Patient FeesPatient fees are recognised as revenue at the timeinvoices are raised.Private Practice FeesPrivate practice fees are recognised as revenue at thetime invoices are raised.Donations and Other BequeathsDonations and bequests are recognised as revenuewhen received. If donations are for a special purpose,they may be appropriated to a reserve, such asspecific restricted purpose reserve.Ballarat Health Services ANNUAL REPORT 2006 - 2007(u) Fund AccountingBallarat Health Services operates on a fundaccounting basis and maintains three funds:Operating, Specific Purpose and Capital Funds.Capital and Specific Purpose Funds include unspentcapital donations and receipts from fund raisingactivities conducted solely in respect of these funds.(v) Services Supported By Health ServicesAgreement and Services Supported byHospital and Community InitiativesThe activities classified as Services Supported byHealth Services Agreement (HSA) are substantiallyfunded by the Department of Human Services andincludes Residential Aged Care Services (RACS) andare also funded from other sources such as theCommonwealth, patients and residents, while ServicesSupported by Hospital and Community Initiatives (NonHSA) are funded by Ballarat Health Services' ownactivities or local initiatives.(w) Comparative InformationThere have been no changes to previous year's figuresother than detailed below.Revenues and Expenses by source in notes 2a and 2bhave been reclassified to accord with thegovernment's requirements for reporting under theAustralian Health Care Agreement with theCommonwealth government. The reclassification is toreflect the new category groups detailed in note 1(ae)as follows:2005/06 Reclassified to:Acute Admitted Outpatients EDS AmbulatoryPatients$'000 $'000 $'000 $'000 $'000Revenue - HSA 109,543 78,115 9,000 5,631 16,797Expense - HSA 112,594 77,693 9,074 8,277 17,550(x) Functional and Presentation CurrencyThe presentation currency of Ballarat Health Servicesis the Australian dollar, which has also been identifiedas the functional currency of Ballarat Health Services.(y) Patient Trust AccountBallarat Health Services holds deposits in trust onbehalf of residents. As Ballarat Health Services has noclaim on these funds they have been shown in thebalance sheet as a liability.(z) Goods and Services TaxIncome, expenses and assets are recognised net ofthe amount of associated GST, unless the GSTincurred is not recoverable from the taxationauthority. In this case it is recognised as part of thecost of acquisition of the asset or as part of theexpense.Receivables and Payables are stated inclusive of theamount of GST receivable or payable. The net amountof GST recoverable from, or payable to, the taxationauthority is included with payables in the balancesheet.Cash flows are presented on a gross basis. The GSTcomponents of cash flows arising from investing orfinancing activities which are recoverable from, orpayable to the taxation authority, are presented asoperating cash flow.(aa) Economic DependencyBallarat Health Services is dependent upon the Stateof Victoria, via the Department of Human Services, forthe funding of a significant proportion of itsoperations.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FORTHE YEAR ENDED 30 JUNE 2007(ab) Going ConcernThese accounts are prepared on a going concernbasis. After due consideration of the results of theoperations of Ballarat Health Services for the yearended 30 June, 2007, and the forecast cash flows ofBallarat Health Services for the next 12 months, theBoard of Management have determined thatpreparing the accounts on a going concern basis isappropriate.(ac) Contributed CapitalConsistent with UIG Interpretation 1038Contributions by Owners Made to Wholly-OwnedPublic Sector Entities and FRD 2A Contributions byOwners, appropriations for additions to the net assetbase have been designated as contributed capital.Other transfers that are in the nature of contributionsor distributions, that have been designated ascontributed capital are also treated as contributedcapital.(ad) Net Result Before Capital & Specific ItemsThe subtotal entitled ‘Net result Before Capital &Specific Items’ is included in the Operating Statementto enhance the understanding of the financialperformance of Ballarat Health Services. This subtotalreports the result excluding items such as capitalgrants, assets received or provided free of charge,depreciation, and items of unusual nature andamount such as specific revenues and expenses. Theexclusion of these items are made to enhancematching of income and expense so as to facilitatethe comparability and consistency of results betweenyears and Victorian Public Health Services. The Netresult Before Capital & Specific Items is used by themanagement of Ballarat Health Services, theDepartment of Human Services and the VictorianGovernment to measure the ongoing result of HealthServices in operating hospital services.Capital and specific items, which are excluded fromthis sub-total, comprise:• Capital purpose income, which comprises alltied grants, donations and bequests receivedfor the purpose of acquiring non-currentassets, such as capital works, plant andequipment. Consequently the recognition ofrevenue as capital purpose income is based onthe intention of the provider of the revenue atthe time the revenue is provided.• Specific income/expense, comprises thefollowing items, where material:- Voluntary departure packages- Write-down of inventories- Non-current asset revaluationincrements/decrements- Diminution in investments- Restructuring of operations(disaggregation/aggregation of healthservices)- 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 accountingstandard or other authoritative pronouncementof the Australian Accounting Standards Board).• Depreciation and amortisation, as described innote 1(j) and (r).• Expenditure using capital purpose income,which comprises expenditure which either fallsbelow the asset capitalisation threshold or doesnot result in the recognition of an asset in thebalance sheet, where funding for thatexpenditure is from capital purpose income. Theasset capitalisation threshold is set at $2,000(2006: $2,000).(ae) Category GroupsBallarat Health Services has used the followingcategory groups for reporting purposes for thecurrent and previous Financial Years.Admitted Patient Services (Admitted Patients)comprises all recurrent health revenue/expenditure onadmitted patient services, where services are deliveredin public hospitals, or free standing day hospitalfacilities, or palliative care facilities, or rehabilitationfacilities, or alcohol and drug treatment units orhospitals specialising in dental services, hearing andophthalmic aids.Mental Health Services (Mental Health) comprisesall recurrent health revenue/expenditure on specialisedmental health services (child and adolescent, generaland adult, community and forensic) managed orfunded by the state or territory healthadministrations, and includes: Admitted patientservices (including forensic mental health), outpatientservices, emergency department services (where it ispossible to separate emergency departmental mentalhealth services), community-based services, residentialand ambulatory services.Outpatient Services (Outpatients) comprises allrecurrent health revenue/expenditure on publichospital type outpatient services, where services aredelivered in public hospital outpatient clinics, or freestanding day hospital facilities, or rehabilitationfacilities, or alcohol and drug treatment units, oroutpatient clinics specialising in ophthalmic aids orpalliative care.Emergency Department Services (EDS) comprisesall recurrent health revenue/expenditure onemergency department services that are available freeof charge to public patients.38Ballarat Health Services ANNUAL REPORT 2006 - 2007

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FORTHE YEAR ENDED 30 JUNE 200739 Aged Care comprises revenue/expenditure fromHome and Community Care (HACC) programs, AlliedHealth, Aged Care Assessment and support services.Primary Health comprises revenue/expenditure forCommunity Health Services including healthpromotion and counselling, physiotherapy, speechtherapy, podiatry and occupational therapy.Off Campus, Ambulatory Services (Ambulatory)comprises all recurrent health revenue/expenditure onpublic hospital type services, provided under thefollowing agreements: Services that are provided orreceived by hospitals (or area health services) but aredelivered/ received outside a hospital campus, serviceswhich have moved from a hospital to a communitysetting since June 1998, services which fall within theagreed scope of inclusions under the new system,which have been delivered within hospitals i.e. in rural/ remote areas.Residential Aged Care including Mental Health(RAC incl. Mental Health) referred to in the past aspsychogeriatric residential services, comprises thoseCommonwealth-licensed residential aged care servicesin receipt of supplementary funding from theDepartment of Human Services under the mentalhealth program. It excludes all other residentialservices 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 HealthCare Agreement (AHCA) (Other) comprisesrevenue/expenditure for services not separatelyclassified above, including: Public health servicesincluding Laboratory testing, Blood Borne Viruses/Sexually Transmitted Infections clinical services, Koorisliaison officers, immunisation and screening services,Drugs services including drug withdrawal, counsellingand the needle and syringe program, Dental Healthservices including general and specialist dental care,school dental services and clinical education, Disabilityservices including aids and equipment and flexiblesupport packages to people with a disability,Community Care programs including sexual assaultsupport, early parenting services, parentingassessment and skills development, and varioussupport services. Health and Community Initiativesalso falls in this category group.Ballarat Health Services ANNUAL REPORT 2006 - 2007Defibrillators valued at $110,000 were purchased for the BaseHospital, Queen Elizabeth Centre and Psychiatric Services duringthe year. Tony Sutherland, Intensive Care Unit Director, attends toa patient while Peter McLennan, Intensive Care Unit, watches on.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FORTHE YEAR ENDED 30 JUNE 2007(af) New Accounting Standards and InterpretationsCertain new accounting standards and interpretations have been published that are not mandatory for 30 June2007 reporting period. As at 30 June 2007, the following standards and interpretations had been issued but werenot mandatory for Financial Years ending 30 June 2007. Ballarat Health Services has not and does not intend foradopted these standards early.STANDARD / SUMMARY APPLICABLE FOR IMPACT ON HEALTHINTERPRETATION REPORTING PERIODS SERVICES' ANNUALBEGINNING ON OR STATEMENTSENDING ONAASB 7 Financial New standard replacing Beginning 1 Jan 2007. AASB 7 is a disclosure standardInstruments: Disclosures disclosure requirements so will have no direct impactof AASB 132.on the amounts included inthe Ballarat Health Services'financial statements. However,the amendments will result inchanges to the financialinstrument disclosures includedin the Ballarat Health Services'annual report.40Ballarat Health Services ANNUAL REPORT 2006 - 2007AASB 2005-10, Amendments arising from Beginning 1 Jan 2007. Amendments may resultAmendments to Australian the release in Aug 05 in changes to theAccounting Standards of AASB 7 Financial financial statements.(AASB's 132, 101, 114, Instruments: Disclosures117, 133, 139, 1, 4, 1023& 1038.AASB 101 Presentation of Removes Australian specific Beginning 1 Jan 2007. Amendments may resultFinancial Statements requirements from AASB in changes to the(revised). 101, including the financial statements.Australian illustrativeformats of the incomestatement, balance sheet,and the statement ofchanges in equity whichHealth Services werepreviously 'encouraged' toadopt in preparing theirfinancial statements.AASB 2007-1 Amendments Additional paragraphs 1 March 2007. Amendments may resultto Australian Accounting added underneath in changes to theStandards arising from transitional payments. financial statements.AASB Interpretation 22(AASB 2).

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FORTHE YEAR ENDED 30 JUNE 200741 NOTE 2: REVENUEBallarat Health Services ANNUAL REPORT 2006 - 2007PARENTHSA HSA Non HSA Non HSA Total Total2007 2006 2007 2006 2007 2006$000 $000 $000 $000 $000 $000Revenue from Operating ActivitiesRecurrentGovernment Grants- Department of Human Services 137,841 131,025 - - 137,841 131,025- Commonwealth Government- Residential Aged Care Subsidy 16,563 16,073 - - 16,563 16,073- Other 6,203 5,647 - - 6,203 5,647Indirect contributions by Department ofHuman Services- Insurance 2,462 2,099 - - 2,462 2,099Patient and Resident Fees - [Note 2(d)] 12,300 12,254 - - 12,300 12,254Private Practice Fees - - 379 510 379 510Recoupment from Private Practice for Use ofHospital Facilities - - 165 104 165 104Donations & Bequests 443 776 - - 443 776Business Units - - 13,940 13,598 13,940 13,598Other Services 1,632 1,698 10,404 10,289 12,036 11,987Sub-Total Revenue from Operating Activities 177,444 169,572 24,888 24,501 202,332 194,073Revenue from Non-Operating ActivitiesInterest - - 625 180 625 180Sub-Total Revenue from Non-Operating - - 625 180 625 180ActivitiesRevenue from Capital Purpose IncomeGovernment Grants- Department of Human Services - - 3,864 2,862 3,864 2,862- Commonwealth Government - - 1,614 1,577 1,614 1,577Residential Accommodation Payments - - 841 768 841 768Capital Interest - - 1,903 1,516 1,903 1,516Donations and Bequests - - 502 116 502 116Other Capital Purpose Income - - 82 - 82 -Sub-Total Revenue from Capital Purpose - - 8,806 6,839 8,806 6,839IncomeTotal Revenue [refer to note 2(a)] 177,444 169,572 34,319 31,520 211,763 201,092Indirect contributions by Department of Human Services:Department of Human Services makes certain payments on behalf of Ballarat Health Service.These amounts have been brought to account in determining the operating result for the year by recording them as revenue and expenses.

42CONSOLIDATEDHSA HSA Non HSA Non HSA Total Total2007 2006 2007 2006 2007 2006$000 $000 $000 $000 $000 $000137,841 131,025 - - 137,841 131,02516,563 16,073 - - 16,563 16,0736,203 5,647 - - 6,203 5,6472,462 2,099 - - 2,462 2,09912,300 12,254 - - 12,300 12,254- - 379 510 379 510Ballarat Health Services ANNUAL REPORT 2006 - 2007- - 165 104 165 104544 829 - - 544 829- - 13,940 13,598 13,940 13,5981,632 1,698 10,404 10,289 12,036 11,987177,545 169,625 24,888 24,501 202,433 194,126- - 687 229 687 229- - 687 229 687 229- - 3,864 2,862 3,864 2,862- - 1,614 1,577 1,614 1,577- - 841 768 841 768- - 1,903 1,516 1,903 1,516- - 502 116 502 116- - 82 - 82 -- - 8,806 6,839 8,806 6,839177,545 169,625 34,381 31,569 211,926 201,194

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FORTHE YEAR ENDED 30 JUNE 200743 NOTE 2(a): ANALYSIS OF REVENUE BY SOURCEBallarat Health Services ANNUAL REPORT 2006 - 2007Admitted Outpatients EDS Ambulatory Mental RAC incl. Aged Other ConsolidatedPatients Health Mental CareHealth2007 2007 2007 2007 2007 2007 2007 2007 2007$000 $000 $000 $000 $000 $000 $000 $000 $000Revenue from Services Supportedby Health Service AgreementGovernment Grants- Department of Human Services 74,285 8,900 5,793 13,099 22,717 6,683 3,239 3,124 137,841- Commonwealth Government- Residential Aged Care Subsidy - - - - - 16,563 - - 16,563- Other 1,803 - - 33 83 - 2,715 1,569 6,203Indirect contributions by Department ofHuman Services- Insurance 1,327 159 103 234 406 119 58 56 2,462Patient and Resident Fees - [Note 2(d)] 3,735 115 - 2,019 182 6,060 189 - 12,300Other 550 144 4 530 101 66 180 57 1,632Sub-Total Revenue from Services 81,700 9,318 5,901 15,915 23,489 29,491 6,381 4,806 177,001Supported by Health ServicesAgreementRevenue from Services Supported byHospital and Community InitiativesSafety Link - - - - - - - 7,122 7,122Eureka Linen - - - - - - - 2,072 2,072Catering - - - - - - - 4,745 4,745Other ServicesRadiology - - - - - - - 4,353 4,353Investment Income - - - - - - - 2,590 2,590Private Practice Fees - - - - - - - 379 379Recoupment from Private Practicefor Use of Hospital Facilities - - - - - - - 165 165Salary Packaging - - - - - - - 1,121 1,121Accommodation - - - - - - - 389 389Education Services - - - - - - - 735 735Diabetic Shop - - - - - - - 201 201Pharmacuetical Sales - - - - - - - 123 123Car Parking - - - - - - - 136 136Print Shop - - - - - - - 200 200Grampians Intergrated CancerServices (GICS) - - - - - - - 722 722Residential AccommodationPayments [Note 2(d)] - - - - - - - 841 841Capital Purpose Income - - - - - - - 6,605 6,605Other - - - - - - - 2,425 2,425Sub-Total - - - - - - - 34,925 34,925Total Revenue All Sources 81,700 9,318 5,901 15,915 23,489 29,491 6,381 39,731 211,926Indirect contributions by Department of Human Services:Department of Human Services makes certain payments on behalf of Ballarat Health Service.These amounts have been brought to account in determining the operating result for the year by recording them as revenue and expenses.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FORTHE YEAR ENDED 30 JUNE 2007NOTE 2(a): ANALYSIS OF REVENUE BY SOURCE (CONTINUED)44Admitted Outpatients EDS Ambulatory Mental RAC incl. Aged Other ConsolidatedPatients Health Mental CareHealth2006 2006 2006 2006 2006 2006 2006 2006 2006$000 $000 $000 $000 $000 $000 $000 $000 $000Revenue from Services Supportedby Health Service AgreementGovernment Grants- Department of Human Services 70,973 8,595 5,542 14,223 20,869 5,152 3,123 2,548 131,025- Commonwealth Government- Residential Aged Care Subsidy - - - - - 16,073 - - 16,073- Other 1,403 - - - 121 - 2,627 1,496 5,647Indirect contributions by Department ofHuman Services- Insurance 1,137 138 89 228 334 83 50 41 2,099Patient and Resident Fees - [Note 2(d)] 4,119 100 - 1,775 178 5,867 215 - 12,254Other 483 167 - 571 140 78 206 53 1,698Sub-Total Revenue from Services 78,115 9,000 5,631 16,797 21,642 27,253 6,221 4,138 168,796Supported by Health ServicesAgreementBallarat Health Services ANNUAL REPORT 2006 - 2007Revenue from Services Supportedby Hospital and Community InitiativesSafety Link - - - - - - - 6,250 6,250Eureka Linen - - - - - - - 2,740 2,740Catering - - - - - - - 4,608 4,608Other ServicesRadiology - - - - - - - 4,236 4,236Investment Income - - - - - - - 1,745 1,745Private Practice Fees - - - - - - - 510 510Recoupment from Private Practicefor Use of Hospital Facilities - - - - - - - 104 104Salary Packaging - - - - - - - 1,008 1,008Accommodation - - - - - - - 732 732Education Services - - - - - - - 693 693Diabetic Shop - - - - - - - 196 196Pharmacuetical Sales - - - - - - - 259 259Car Parking - - - - - - - 153 153Print Shop - - - - - - - 211 211Grampians Intergrated CancerServices (GICS) - - - - - - - 625 625Residential AccommodationPayments [Note 2(d)] - - - - - - - 768 768Capital Purpose Income - - - - - - - 5,384 5,384Other - - - - - - - 2,176 2,176Sub-Total - - - - - - - 32,398 32,398Total Revenue All Sources 78,115 9,000 5,631 16,797 21,642 27,253 6,221 36,536 201,194Indirect contributions by Department of Human Services:Department of Human Services makes certain payments on behalf of Ballarat Health Service.These amounts have been brought to account in determining the operating result for the year by recording them as revenue and expenses.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FORTHE YEAR ENDED 30 JUNE 200745Ballarat Health Services ANNUAL REPORT 2006 - 2007NOTE 2(b): EXPENSESPARENTHSA HSA Non HSA Non HSA Total Total2007 2006 2007 2006 2007 2006$000 $000 $000 $000 $000 $000Services Supported by Health ServiceAgreementEmployee EntitlementsSalaries and Wages 121,875 116,256 - - 121,875 116,256Workcover 2,476 2,560 - - 2,476 2,560Superannuation 11,802 11,156 - - 11,802 11,156Long Service Leave 2,360 2,079 - - 2,360 2,079Departure Packages 211 391 - - 211 391Non Salary Labour CostsAgency Costs Other 953 645 - - 953 645Supplies and ConsumablesDrug Supplies 4,500 4,153 - - 4,500 4,153S100 Drugs 1,758 1,404 - - 1,758 1,404Medical and Surgical Supplies 7,556 7,014 - - 7,556 7,014Food Supplies 2,281 2,210 - - 2,281 2,210Other ExpensesPurchased Services 8,939 8,557 - - 8,939 8,557Energy Costs 2,148 2,095 - - 2,148 2,095Domestic Services 1,605 1,561 - - 1,605 1,561Repairs and Maintenance/Minor Equipment 4,251 4,902 - - 4,251 4,902Patient Transport 661 633 - - 661 633Administrative Expenses 5,900 5,717 - - 5,900 5,717Insurance Costs funded by DHS 2,462 2,099 - - 2,462 2,099Sub-Total Expenses from Services Supported 181,738 173,432 - - 181,738 173,432by Health Services AgreementServices Supported by Hospital andCommunity InitiativesEmployee EntitlementsSalaries and Wages - - 9,650 8,682 9,650 8,682Workcover - - 350 225 350 225Superannuation - - 930 840 930 840Long Service Leave - - 171 154 171 154Departure Packages - - 66 185 66 185Non Salary Labour CostsAgency Costs Other - - 227 452 227 452Supplies and ConsumablesMedical and Surgical Supplies - - 632 669 632 669Food Supplies - - 1,655 1,606 1,655 1,606Other ExpensesPurchased Services - - 1,894 1,643 1,894 1,643Energy Costs - - 128 178 128 178Domestic Services - - 235 235 235 235Repairs and Maintenance/Minor Equipment - - 1,012 1,348 1,012 1,348Safety Link Units - - 1,215 870 1,215 870Administrative Expenses - - 2,679 2,747 2,679 2,747Sub-Total - - 20,844 19,834 20,844 19,834Depreciation [Note 3] - - 8,954 8,157 8,954 8,157Audit FeesAuditor General - - 63 61 63 61Other - - 155 60 155 60Interest and Other Finance Charges [Note 4] - - 8 45 8 45Net Gain/(Loss) from Disposal of Non Current Asset - - 538 570 538 570Other - - 408 124 408 124Total Expenses from Ordinary Activities 181,738 173,432 30,970 28,851 212,708 202,283

46CONSOLIDATEDHSA HSA Non HSA Non HSA Total Total2007 2006 2007 2006 2007 2006$000 $000 $000 $000 $000 $000121,875 116,256 - - 121,875 116,2562,476 2,560 - - 2,476 2,56011,802 11,156 - - 11,802 11,1562,360 2,079 - - 2,360 2,079211 391 - - 211 391953 645 - - 953 645Ballarat Health Services ANNUAL REPORT 2006 - 20074,500 4,153 - - 4,500 4,1531,758 1,404 - - 1,758 1,4047,556 7,014 - - 7,556 7,0142,281 2,210 - - 2,281 2,2108,939 8,557 - - 8,939 8,5572,148 2,095 - - 2,148 2,0951,605 1,561 - - 1,605 1,5614,251 4,902 - - 4,251 4,902661 633 - - 661 6335,900 5,717 - - 5,900 5,7172,462 2,099 - - 2,462 2,099181,738 173,432 - - 181,738 173,432- - 9,650 8,682 9,650 8,682- - 350 225 350 225- - 930 840 930 840- - 171 154 171 154- - 66 185 66 185- - 227 452 227 452- - 632 669 632 669- - 1,655 1,606 1,655 1,606- - 1,930 1,692 1,930 1,692- - 128 178 128 178- - 235 235 235 235- - 1,012 1,348 1,012 1,348- - 1,215 870 1,215 870- - 2,679 2,747 2,679 2,747- - 20,880 19,883 20,880 19,883- - 8,954 8,157 8,954 8,157- - 63 61 63 61- - 155 60 155 60- - 8 45 8 45- - 538 570 538 570- - 408 124 408 124181,738 173,432 31,006 28,900 212,744 202,332

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FORTHE YEAR ENDED 30 JUNE 200747 NOTE 2(c): ANALYSIS OF EXPENSES BY SOURCEBallarat Health Services ANNUAL REPORT 2006 - 2007Admitted Outpatients EDS Ambulatory Mental RAC incl. Aged Other ConsolidatedPatients Health Mental CareHealth2007 2007 2007 2007 2007 2007 2007 2007 2007$000 $000 $000 $000 $000 $000 $000 $000 $000Services Supported byHealth Service AgreementEmployee EntitlementsSalaries and Wages 51,855 6,545 6,072 12,162 17,722 23,161 2,700 1,658 121,875Workcover 955 61 138 254 318 639 70 41 2,476Superannuation 5,012 594 612 1,152 1,721 2,282 240 189 11,802Long Service Leave 994 145 109 253 338 436 46 39 2,360Departure Packages - - - - 64 85 - 62 211Non Salary Labour CostsAgency Costs Other 568 - 3 2 61 145 - 174 953Supplies and ConsumablesDrug Supplies 3,552 - 521 176 211 40 - - 4,500S100 Drugs 1,703 - - - 55 - - - 1,758Medical and Surgical Supplies 5,017 160 329 582 108 365 19 976 7,556Food Supplies 673 135 24 362 247 748 53 39 2,281Other ExpensesPurchased Services 2,406 326 1,081 793 265 164 2,215 1,689 8,939Energy Costs 1,544 60 - 50 76 395 11 12 2,148Domestic Services 659 176 20 190 134 379 26 21 1,605Repairs and Maintenance/Minor Equipment 1,637 783 9 695 513 402 108 104 4,251Patient Transport 288 6 168 94 23 10 68 4 661Administrative Expenses 2,087 814 27 802 1,197 662 127 184 5,900Insurance Costs funded by DHS 1,048 132 123 246 358 468 55 33 2,462Sub-Total Expenses from Services 79,998 9,937 9,236 17,813 23,411 30,381 5,738 5,225 181,738Supported by Health ServicesAgreementServices Supported by Hospital andCommunity InitiativesEmployee EntitlementsSalaries and Wages - - - - - - - 9,650 9,650Workcover - - - - - - - 350 350Superannuation - - - - - - - 930 930Long Service Leave - - - - - - - 171 171Departure Packages - - - - - - - 66 66Non Salary Labour CostsAgency Costs Other - - - - - - - 227 227Supplies and ConsumablesMedical and Surgical Supplies - - - - - - - 632 632Food Supplies - - - - - - - 1,655 1,655Other ExpensesPurchased Services - - - - - - - 1,930 1,930Energy Costs - - - - - - - 128 128Domestic Services - - - - - - - 235 235Repairs and Maintenance/Minor Equipment - - - - - - - 1,012 1,012Safety Link Units - - - - - - - 1,215 1,215Administrative Expenses - - - - - - - 2,679 2,679Sub-Total - - - - - - - 20,880 20,880Depreciation [Note 3] 2,416 276 175 471 412 2,331 899 1,975 8,954Audit FeesAuditor General 28 3 3 6 8 11 2 2 63Other 68 8 8 15 20 26 5 4 155Interest and Other Finance Charges [Note 4] - - - - - - - 8 8Net Loss from Disposal of Non Current Asset - - - - - - - 538 538Other - - - - - - - 408 408Total Expenses from Ordinary Activities 82,510 10,225 9,421 18,305 23,851 32,748 6,643 29,041 212,744

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FORTHE YEAR ENDED 30 JUNE 2007NOTE 2(c): ANALYSIS OF EXPENSES BY SOURCE (CONTINUED)48Admitted Outpatients EDS Ambulatory Mental RAC incl. Aged Other ConsolidatedPatients Health Mental CareHealth2006 2006 2006 2006 2006 2006 2006 2006 2006$000 $000 $000 $000 $000 $000 $000 $000 $000Services Supported byHealth Service AgreementEmployee EntitlementsSalaries and Wages 50,788 5,840 5,349 11,755 16,590 22,117 2,497 1,320 116,256Workcover 972 85 118 277 346 658 63 41 2,560Superannuation 4,679 562 537 1,146 1,650 2,193 215 174 11,156Long Service Leave 889 103 99 211 303 403 39 32 2,079Departure Packages - - - - 239 74 - 78 391Non Salary Labour CostsAgency Costs Other 163 - 2 - 89 161 - 230 645Supplies and ConsumablesDrug Supplies 3,279 - 480 162 195 37 - - 4,153S100 Drugs 1,360 - - - 44 - - - 1,404Medical and Surgical Supplies 5,137 123 294 515 54 351 12 528 7,014Food Supplies 637 131 23 351 255 725 51 37 2,210Other ExpensesPurchased Services 2,122 303 1,035 944 162 169 2,242 1,580 8,557Energy Costs 1,316 90 - 121 75 454 26 13 2,095Domestic Services 693 168 24 188 98 345 26 19 1,561Repairs and Maintenance/Minor Equipment 2,228 868 25 787 402 478 82 32 4,902Patient Transport 295 7 131 98 21 10 67 4 633Administrative Expenses 2,237 765 41 770 999 600 100 205 5,717Insurance Costs funded by DHS 898 29 119 225 308 421 55 44 2,099Sub-Total Expenses from Services 77,693 9,074 8,277 17,550 21,830 29,196 5,475 4,337 173,432Supported by Health ServicesAgreementBallarat Health Services ANNUAL REPORT 2006 - 2007Services Supported by Hospital andCommunity InitiativesEmployee EntitlementsSalaries and Wages - - - - - - - 8,682 8,682Workcover - - - - - - - 225 225Superannuation - - - - - - - 840 840Long Service Leave - - - - - - - 154 154Departure Packages - - - - - - - 185 185Non Salary Labour CostsAgency Costs Other - - - - - - - 452 452Supplies and ConsumablesMedical and Surgical Supplies - - - - - - - 669 669Food Supplies - - - - - - - 1,606 1,606Other ExpensesPurchased Services - - - - - - - 1,692 1,692Energy Costs - - - - - - - 178 178Domestic Services - - - - - - - 235 235Repairs and Maintenance/Minor Equipment - - - - - - - 1,348 1,348Safety Link Units - - - - - - - 870 870Administrative Expenses - - - - - - - 2,747 2,747Sub-Total - - - - - - - 19,883 19,883Depreciation [Note 3] 2,157 249 155 464 349 2,088 877 1,818 8,157Audit FeesAuditor General 29 3 2 6 7 10 2 2 61Other 28 3 2 6 7 10 2 2 60Interest and Other Finance Charges [Note 4] - - - - - - - 45 45Net Gain/(Loss) from Disposal ofNon Current Asset - - - - - - - 570 570Other - - - - - - - 124 124Total Expenses from Ordinary Activities 79,906 9,329 8,437 18,026 22,193 31,304 6,356 26,781 202,332

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FORTHE YEAR ENDED 30 JUNE 200749 NOTE 2(d): PATIENT AND RESIDENT FEESBallarat Health Services ANNUAL REPORT 2006 - 2007Parent Entity Parent Entity Consolidated Consolidated2007 2006 2007 2006$000 $000 $000 $000Patient and Resident Fees RaisedAcuteInpatients 5,754 5,894 5,754 5,894Outpatients 115 100 115 100Residential Aged CareGeriatric 5,841 5,657 5,841 5,657Psychogeriatric 219 210 219 210Mental Health 182 178 182 178Aged Care 189 214 189 214Total 12,300 12,253 12,300 12,253Capital PurposeResidential Accommodation Payments 841 768 841 768Total Capital 841 768 841 768Ballarat Health Services charge fees in accordance with Department of Human Services directives.NOTE 2(e): NET GAIN/(LOSS) ON DISPOSAL OF NON CURRENT ASSETSParent Entity Parent Entity Consolidated Consolidated2007 2006 2007 2006$000 $000 $000 $000Proceeds from Disposal of Non-Current AssetsMotor Vehicles 2,760 2,799 2,760 2,799Buildings - 176 - 176Total Proceeds from Disposal of Non-Current Assets 2,760 2,975 2,760 2,975Less: Written Down Value of Non-Current Assets SoldPlant and Equipment 67 204 67 204Medical Equipment - 208 - 208Motor Vehicles 3,231 3,133 3,231 3,133Total Written Down Value of Non-Current Assets Sold 3,298 3,545 3,298 3,545Net Gain/(Loss) on Disposal of Non-Current Assets (538) (570) (538) (570)

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FORTHE YEAR ENDED 30 JUNE 2007NOTE 2(f): ANALYSIS OF EXPENSE FOR SERVICES SUPPORTED BYHOSPITAL AND COMMUNITY INITIATIVESParent Entity Parent Entity Consolidated Consolidated2007 2006 2007 2006$000 $000 $000 $000Business UnitsSafety Link 4,995 4,449 4,995 4,449Catering 3,553 3,454 3,553 3,454Eureka Linen 1,113 1,184 1,113 1,1849,661 9,087 9,661 9,087Other ServicesRadiology 4,839 4,330 4,839 4,330Education Services 1,068 798 1,068 798Grampians Intergrated Cancer Services (GICS) 590 249 590 249Private Practice 542 395 542 395Accommodation 372 314 372 314Diabetic Shop 294 292 294 292Salary Packaging 208 225 208 225Print Shop 176 158 176 158QEACS 130 155 130 155Car Parking 9 3 9 3Other 2,955 3,827 2,991 3,87611,183 10,747 11,219 10,79650Ballarat Health Services ANNUAL REPORT 2006 - 2007Total 20,844 19,834 20,880 19,883NOTE 3: DEPRECIATION AND AMORTISATIONParent Entity Parent Entity Consolidated Consolidated2007 2006 2007 2006$000 $000 $000 $000Buildings 3,018 2,974 3,018 2,974Plant and Equipment- Intangibles 337 - 337 -- Plant 4,602 3,885 4,602 3,885- Transport 718 742 718 742Linen Stock 279 556 279 556Total 8,954 8,157 8,954 8,157NOTE 4: FINANCE COSTSParent Entity Parent Entity Consolidated Consolidated2007 2006 2007 2006$000 $000 $000 $000Interest on Hire Purchase Agreements 8 45 8 45Total 8 45 8 45NOTE 5: CASH AND CASH EQUIVALENTSParent Entity Parent Entity Consolidated Consolidated2007 2006 2007 2006$000 $000 $000 $000Cash and cash at bank (1) 2,834 3,456 2,961 3,502Total 2,834 3,456 2,961 3,502(1) Cash on hand includes cash at bank and petty cash advances.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FORTHE YEAR ENDED 30 JUNE 200751 NOTE 6: RECEIVABLESBallarat Health Services ANNUAL REPORT 2006 - 2007Current Non Parent Parent Consolidated ConsolidatedCurrent Entity Entity2007 2006 2007 2006$000 $000 $000 $000 $000 $000Trade Debtors- Acute Inpatients 854 - 854 1,011 854 1,011- Aged and Psychiatric Services 701 - 701 443 701 443- Other 117 - 117 38 117 78- Eureka Linen 326 - 326 307 326 307- Sundry 2,469 - 2,469 3,521 2,469 3,521Accrued Investment Income 325 - 325 87 325 87Department of Human Services 754 1,683 2,437 3,712 2,437 3,712Total 5,546 1,683 7,229 9,119 7,229 9,159Less: Provision for Doubtful DebtsTrade Debtors 29 - 29 21 29 21Patient Fees 143 - 143 93 143 93Net Debtors and Accrued Revenue 5,374 1,683 7,057 9,005 7,057 9,045NOTE 7: OTHER FINANCIAL ASSETSSpecific Specific Trust Trust Capital Capital Parent Parent Consolidated ConsolidatedPurpose Purpose Fund Fund Fund Fund Entity EntityFund Fund2007 2006 2007 2006 2007 2006 2007 2006 2007 2006$000 $000 $000 $000 $000 $000 $000 $000 $000 $000CurrentTreasury Bills 2,326 864 11,867 8,359 - - 14,193 9,223 14,193 9,2232,326 864 11,867 8,359 - - 14,193 9,223 14,193 9,223Non CurrentTreasury Bills 2,814 1,000 8,199 9,000 - - 11,013 10,000 11,915 10,816Radiotherapy Joint Venture - - - - 929 965 929 965 929 9652,814 1,000 8,199 9,000 929 965 11,942 10,965 12,844 11,781Total 5,140 1,864 20,066 17,359 929 965 26,135 20,188 27,037 21,004Represented by:Health Service Investments 5,140 1,864 - - 929 965 6,069 2,829 6,069 2,829Monies held in Trust- Patient Monies - - 748 708 - - 748 708 748 708- Accommodation Bonds - - 17,974 15,770 - - 17,974 15,770 17,974 15,770- Regional IT Alliance - - 1,080 881 - - 1,080 881 1,080 881- GICS - - 264 - - - 264 - 264 -BHS Foundation - - - - - - - - 902 8165,140 1,864 20,066 17,359 929 965 26,135 20,188 27,037 21,004

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FORTHE YEAR ENDED 30 JUNE 2007NOTE 8: INVENTORY52Parent Entity Parent Entity Consolidated Consolidated2007 2006 2007 2006$000 $000 $000 $000General - at cost 631 553 631 553Pharmaceuticals - at cost 366 327 366 327Safety Link - at cost 87 186 87 186Total 1,084 1,066 1,084 1,066NOTE 9: PREPAYMENTSParent Entity Parent Entity Consolidated Consolidated2007 2006 2007 2006$000 $000 $000 $000Ballarat Health Services ANNUAL REPORT 2006 - 2007CurrentPrepayments 766 880 766 880766 880 766 880Non-CurrentPrepayments - 7 - 7- 7 - 7Total 766 887 766 887

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FORTHE YEAR ENDED 30 JUNE 200753 NOTE 10(a): PROPERTY, PLANT & EQUIPMENTBallarat Health Services ANNUAL REPORT 2006 - 2007Parent Parent Consolidated ConsolidatedGross Accumul. Written Written Written WrittenCost/ Dep'n Down Down Down DownValuation Value Value Value Value2007 2007 2007 2006 2007 2006$000 $000 $000 $000 $000 $000At CostLand 335 - 335 185 335 185Buildings 3,740 32 3,708 705 3,708 705Work in Progress 2,182 - 2,182 3,580 2,182 3,580Plant and Equipment 11,798 4,786 7,012 6,173 7,013 6,174Medical Equipment 16,141 10,106 6,035 6,125 6,035 6,125Information Technology 6,599 4,977 1,622 2,079 1,622 2,079Furniture & Fittings 1,372 88 1,284 482 1,284 482Kitchen & Catering 2,330 1,174 1,156 814 1,156 814PACS 9,904 5,244 4,660 3,527 4,660 3,527Linen Stock 1,652 834 818 844 818 844Motor Vehicles 4,837 995 3,842 4,164 3,842 4,164Total 60,890 28,236 32,654 28,678 32,655 28,679At ValuationLand 13,365 - 13,365 13,365 13,365 13,365Buildings 148,603 5,960 142,643 145,631 142,643 145,631Total 161,968 5,960 156,008 158,996 156,008 158,996Total Fixed Assets 222,858 34,196 188,662 187,674 188,663 187,675Land and Buildings were revalued as at June 30th, 2005. The basis of the valuation for buildings is depreciated replacement costand land is valued at current market value. The valuation was completed by Mr Shane Irwin of the Landlink Property Group, who isa Certified Practicing Valuer and an Associate of the Australian Property Institute. Operating Linen in circulation was calculated andverified, resulting in a linen stock write-off of $65K in 2006-2007.Reconciliations of the carrying amounts of each class of land, buildings, plant and equipment at the beginning and end of thecurrent and previous Financial Year are set out below.Land Buildings Plant & Medical Information Furniture & Kitchen && Work in Equipment Equipment Technology Fittings CateringProgress$000 $000 $000 $000 $000 $000 $0002007Carrying amount at start of year 13,550 149,916 6,174 6,125 2,079 482 814Additions 150 1,635 1,620 1,085 710 863 525Revaluations - - - - - - -Disposals - - - - 2 - -Depreciation expense - 3,018 781 1,176 1,165 62 183Carrying amount at end of year 13,700 148,533 7,013 6,034 1,622 1,283 1,1562006Carrying amount at start of year 13,365 150,057 6,086 6,671 570 - 975Additions 335 2,888 843 627 2,425 509 3Revaluations - - - - - - -Disposals 150 55 - - - - -Depreciation expense - 2,974 755 1,173 916 27 164Carrying amount at end of year 13,550 149,916 6,174 6,125 2,079 482 814

54Ballarat Health Services ANNUAL REPORT 2006 - 2007PACS Linen Stock Motor TotalVehicles$000 $000 $000 $0003,527 844 4,164 187,6752,368 318 3,629 12,903- - - -- 65 3,231 3,2981,235 279 718 8,6174,660 818 3,844 188,6632,407 1,304 4,353 185,7881,970 308 3,681 13,589- - - -- 212 3,128 3,545850 556 742 8,1573,527 844 4,164 187,675

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FORTHE YEAR ENDED 30 JUNE 200755 NOTE 10(b): INTANGIBLE ASSETSBallarat Health Services ANNUAL REPORT 2006 - 2007Parent Entity Parent Entity Consolidated Consolidated2007 2006 2007 2006$000 $000 $000 $000Computer Software 1,066 982 1,066 982Less: Accummulated Amortisation 337 - 337 -729 982 729 982NOTE 11: PAYABLESParent Entity Parent Entity Consolidated Consolidated2007 2006 2007 2006$000 $000 $000 $000Trade Creditors and Accrued Expenses 8,841 8,092 8,841 8,092Salary Packaging Held in Trust 558 493 558 493GST Payable 952 1,096 952 1,096Total 10,351 9,681 10,351 9,681NOTE 12: INTEREST BEARING LIABILITIESCurrent Non Parent Parent Consolidated ConsolidatedCurrent Entity Entity2007 2006 2007 2006$000 $000 $000 $000 $000 $000Hire Purchase Agreements - - - 379 - 379Total - - - 379 - 379Hire purchase borrowings are secured against the assets financed.NOTE 13: EMPLOYEE BENEFITSParent Entity Parent Entity Consolidated Consolidated2007 2006 2007 2006$000 $000 $000 $000CurrentUnconditional Long Service Leave 13,868 13,556 13,868 13,556Accrued Wages and Salaries 4,303 3,274 4,303 3,274Accrued Leave 11,443 10,115 11,443 10,115Accrued Days Off 388 358 388 358Total 30,002 27,303 30,002 27,303Non-CurrentConditional Long Service Leave 4,792 5,132 4,792 5,132Total 4,792 5,132 4,792 5,132Movement in Long Service Leave:Balance July 1 18,688 16,869 18,688 16,869Provision made during the year 2,739 4,359 2,739 4,359Settlement made during the year (2,767) (2,540) (2,767) (2,540)Balance June 30 18,660 18,688 18,660 18,688Provision for Long Service Leave in accordance with AASB 101: Presentation of Financial Statements, Provision for Long Service Leave isconsidered a current liability in respect to employees who have met the required qualification period, and therefore Ballarat Health Servicedoes not have an unconditional right to defer settlement of the liability for at least twelve months after the balance date.Refer Note 1(n) for details.The Long Service Leave settlement to be made in the 2007/08 Financial Year is expected to be consistent with prior years($2,767,000 2006/07 $2,540,000 2005/06).

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FORTHE YEAR ENDED 30 JUNE 2007NOTE 14: OTHER LIABILITIES56Parent Entity Parent Entity Consolidated Consolidated2007 2006 2007 2006$000 $000 $000 $000CurrentResident Monies Held in Trust 748 708 748 708Regional Information Technology Alliance 400 300 400 300Refundable Accommodation Bonds 17,974 15,770 17,974 15,770Grampians Intergrated Cancer Service (GICS) 264 - 264 -DHS Equipment Loan 38 - 38 -19,424 16,778 19,424 16,778Non-CurrentRegional Information Technology Alliance 516 1,116 516 1,116DHS Equipment Loan 126 - 126 -642 1,116 642 1,116Ballarat Health Services ANNUAL REPORT 2006 - 2007Total 20,066 17,894 20,066 17,894Represented by:Cash Deposit Account - 535 - 535Other Financial Assets 20,066 17,359 20,066 17,359Total 20,066 17,894 20,066 17,894Regional Information Technology Alliance Trustmovements:Opening Balance 1,416 1,893 1,416 1,893Grant Income received 987 1,072 987 1,072Salaries and Wages and other related expenditure (1,487) (1,549) (1,487) (1,549)Closing Balance 916 1,416 916 1,416

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FORTHE YEAR ENDED 30 JUNE 200757 NOTE 15: EQUITY AND RESERVESBallarat Health Services ANNUAL REPORT 2006 - 2007(a) ReservesAsset Revaluation Reserve (1)Parent Entity Parent Entity Consolidated Consolidated2007 2006 2007 2006Note $000 $000 $000 $000Balance at the beginning of the reporting period 16,994 16,994 16,994 16,994Revaluation Increments/(Decrements)- Investments 132 - 132 -Balance at the end of the reporting period 17,126 16,994 17,126 16,994Represented by:Land 6,815 6,815 6,815 6,815Buildings 10,179 10,179 10,179 10,179Investments 132 - 132 -17,126 16,994 17,126 16,994Specific Purpose ReserveBalance at the beginning of the reporting period 22,608 15,674 22,608 15,674Transfer from accumulated surplus (5,808) 6,934 (5,808) 6,934Balance at the end of the reporting period 16 16,800 22,608 16,800 22,608Total Reserves 33,926 39,602 33,926 39,602(b) Contributed CapitalBalance at the beginning of the reporting period 147,914 147,914 147,914 147,914Balance at the end of the reporting period 147,914 147,914 147,914 147,914(c) Accumulated Surpluses/(Deficits)Balance at the beginning of the reporting period (24,647) (16,522) (23,744) (15,672)Net Result for the Year (945) (1,191) (818) (1,138)Transfer to and from Reserve 5,808 (6,934) 5,808 (6,934)Balance at the end of the reporting period (19,784) (24,647) (18,754) (23,744)(d) Total Equity at the end of the Financial YearTotal Equity at the beginning of the reporting period 162,869 164,060 163,772 164,910Total Changes in Equity Recognised in the Statement ofFinancial Performance (813) (1,191) (686) (1,138)Total Equity at the end of the reporting period 162,056 162,869 163,086 163,772(1) The land, building and investment assets revaluation reserve arises on the revaluation of land, buildings and investments.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FORTHE YEAR ENDED 30 JUNE 2007NOTE 16: SPECIFIC PURPOSE RESERVE58Parent Entity Parent Entity Consolidated Consolidated2007 2006 2007 2006$000 $000 $000 $000Building & Equipment Fund 10,013 12,180 10,013 12,180Hostel Development 5,951 7,323 5,951 7,323Ward Funds 483 856 483 856Other 292 1,698 292 1,698Clinical Services 61 550 61 550Total 16,800 22,608 16,800 22,608The above Reserves are internally managed Special Purpose Funds, which are used to quarantine Capital income such as Donations, CapitalGrants and Interest Revenue. Once quarantined, this income is used to fund Capital Projects, Refurbishments, Equipment and Education.Ballarat Health Services ANNUAL REPORT 2006 - 2007NOTE 17: RECONCILIATION OF NET RESULTS FOR THE YEAR TO NET CASHINFLOW/(OUTFLOW) FROM OPERATING ACTIVITIESParent Entity Parent Entity Consolidated Consolidated2007 2006 2007 2006Note $000 $000 $000 $000Entity Deficit for the Year (945) (1,191) (818) (1,138)Non Operating Cash MovementsNet (Gain)/Loss on Sale of Fixed Assets 2(e) 538 570 538 570Interest on Borrowings 8 45 8 45Non Cash MovementsDepreciation and Amortisation 8,954 8,157 8,954 8,157Increase/(Decrease) in Payables 670 2,648 670 2,648Increase/(Decrease) in Employee Entitlements 2,359 2,208 2,359 2,208(Increase)/Decrease in Inventory (18) 158 (18) 158(Increase)/Decrease in Prepayments 121 (244) 121 (244)(Increase)/Decrease in Receivables 1,948 685 1,988 678Net Cash Inflows from Operating Activities 13,635 13,036 13,802 13,082

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FORTHE YEAR ENDED 30 JUNE 200759 NOTE 18: FINANCIAL INSTRUMENTSBallarat Health Services ANNUAL REPORT 2006 - 2007(a) Risk management policiesManagement of Ballarat Health Services investments are governed by applicable Board policies on Investment Managementand Risk Management. These policies are reviewed on an annual basis and are adjusted accordingly, to ensure thatappropriate risk management principles are in place for the proper management of financial instruments.(b) Significant accounting policiesFinancial assets are recognised and derecognised on trade date, where purchase or sale of an investment is under acontract whose terms require delivery of the investment within the timeframe established by the market concerned, andare initially measured at fair value, net of transaction costs. Other financial assets are classified between current and noncurrent assets, based on the Board of Management's intention at balance date with respect to the timing of disposal ofeach asset.Dividend revenue is recognised on a receivable basis. Interest revenue is recognised on a time proportionate basis that takesinto account the effective yield on the financial asset.(c) Credit risk exposureAll investments are governed by an Investment Policy which details the level of counter-party risk that is acceptable toBallarat Health Services. All such investments are rated by independent rating agencies, and are classified as havingadequate capacities to pay. Ballarat Health Services does not consider that it is materially exposed to any individual debtor.Credit risk represents the loss that would be recognised if counterparties fail to meet their obligations under the respectivecontracts at maturity. The credit risk on financial assets of the entity have been recognised on the Balance Sheet, as thecarrying amount, net any provisions for doubtful debts.INTEREST RATE EXPOSURE AS AT 30/06/2007Floating Fixed Interest Maturing in: Non-interest ConsolidatedInterestbearingRate 1 year 1 toor less 10 years$000 $000 $000 $000 $000Financial AssetsCash and Cash Equivalents 2,961 - - - 2,961Receivables - - - 7,057 7,057Other Financial Assets (1) 23,390 - 2,718 929 27,03726,351 - 2,718 7,986 37,055Weighted Average Interest Rate 6.46% n/a 7.25% n/a n/aFinancial LiabilitiesCreditors - - - 10,351 10,351Accommodation Bonds - - - 17,974 17,974Monies Held in Trust - - - 1,928 1,928DHS Equipment Loan - - - 164 164- - - 30,417 30,417Weighted Average Interest Rate n/a n/a n/a n/a n/a(1) BHS buys and sells investment funds to match short and long term cash needs.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FORTHE YEAR ENDED 30 JUNE 2007INTEREST RATE EXPOSURE AS AT 30/06/2006Floating Fixed Interest Maturing in: Non-interest ConsolidatedInterestbearingRate 1 year 1 toor less 10 years$000 $000 $000 $000 $000Financial AssetsCash and Cash Equivalents 3,502 - - - 3,502Receivables - - - 9,045 9,045Other Financial Assets (1) 17,198 116 2,724 965 21,00420,700 116 2,724 10,010 33,551Weighted Average Interest Rate 6.75% 5.70% 7.25% n/a n/aFinancial LiabilitiesCreditors - - - 9,681 9,681Accommodation Bonds - - - 15,770 15,770Monies Held in Trust - - - 2,124 2,124Other Borrowings - 379 - - 379- 379 - 27,575 27,95460Ballarat Health Services ANNUAL REPORT 2006 - 2007Weighted Average Interest Rate n/a 6.29% n/a n/a n/aThe following table details the fair value of financial assets and financial liabilities.Parent Entity Parent Entity Consolidated Consolidated2007 2006 2007 2006$000 $000 $000 $000Financial AssetsCash and Cash Equivalents 2,961 3,502 2,961 3,502Receivables 7,057 9,045 7,057 9,045Other Financial Assets (1) 26,007 20,101 27,037 21,00436,025 32,648 37,055 33,551Financial LiabilitiesCreditors 10,351 9,681 10,351 9,681Accommodation Bonds 17,974 15,770 17,974 15,770Monies Held in Trust 1,928 2,124 1,928 2,124DHS Equipment Loan 164 - 164 -Other Borrowings - 379 - 37930,417 27,954 30,417 27,954(d) Fair Value of Financial Assets and LiabilitiesThe carrying amount of financial assets and liabilities contained within these financial statements is representative of the fair value of eachfinancial asset or liability.(1) BHS buys and sells investment funds to match short and long term cash needs.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FORTHE YEAR ENDED 30 JUNE 200761Ballarat Health Services ANNUAL REPORT 2006 - 2007NOTE 19: COMMITMENTSParent Entity Parent Entity Consolidated Consolidated2007 2006 2007 2006$000 $000 $000 $000Capital Expenditure CommitmentsLand and Buildings 3,694 576 3,694 576Transport 75 - 75 -Total 3,769 576 3,769 576Operating Expenditure CommitmentsMedical Equipment - 103 - 103Total - 103 - 103Represented as:Not later than 1 year 3,769 671 3,769 671Later than 1 year and not later than 5 years - 8 - 83,769 679 3,769 679NOTE 20: SEGMENT REPORTINGAcute Care Acute Care Business Business RAC RACUnits Units2007 2006 2007 2006 2007 2006$000 $000 $000 $000 $000 $000RevenueExternal Segment Revenue 112,770 109,476 32,234 30,600 29,491 27,253Total Revenue 112,770 109,476 32,234 30,600 29,491 27,253ResultSegment Result (7,690) (6,222) 8,463 8,251 (3,257) (4,051)Net Result from Ordinary Activites (7,690) (6,222) 8,463 8,251 (3,257) (4,051)Interest Expense - - 8 45 - -Interest Income 683 305 275 184 1,290 1,051Share of Net Result of 64 66 - - - -Associates & Joint Venturesusing Equity ModelNet Result for Year (6,944) (5,851) 8,730 8,389 (1,967) (3,000)Other InformationSegment Assets 98,562 96,608 16,298 15,950 73,654 70,865Total Assets 98,562 96,608 16,298 15,950 73,654 70,865Segment Liabilities 16,551 15,620 8,531 8,017 27,372 24,368Total Liabilities 16,551 15,620 8,531 8,017 27,372 24,368Investments in associates and joint venture partnership 929 965 - - - -Acquisition of property, plant and equipment 6,497 7,559 1,097 1,029 3,522 3,202Depreciation and amortisation expense 3,337 3,025 1,975 1,818 2,331 2,088

62Ballarat Health Services ANNUAL REPORT 2006 - 2007Aged Care Aged Care Mental Mental Parent Parent Consolidated ConsolidatedHealth Health2007 2006 2007 2006 2007 2006 2007 2006$000 $000 $000 $000 $000 $000 $000 $00011,187 10,359 23,489 21,642 209,171 199,330 209,272 199,38311,187 10,359 23,489 21,642 209,171 199,330 209,272 199,383(682) (335) (362) (551) (3,529) (2,908) (3,464) (2,904)(682) (335) (362) (551) (3,529) (2,908) (3,464) (2,904)- - - - 8 45 8 4591 86 189 69 2,528 1,696 2,590 1,745- - - - 64 66 64 66(592) (249) (173) (482) (945) (1,191) (818) (1,138)25,018 27,685 13,730 12,150 227,262 223,258 228,297 224,16125,018 27,685 13,730 12,150 227,262 223,258 228,297 224,1616,475 6,659 6,282 5,725 65,211 60,389 65,211 60,3896,475 6,659 6,282 5,725 65,211 60,389 65,211 60,389- - - - 929 965 929 9651,196 1,251 656 549 12,968 13,590 12,968 13,590899 877 412 349 8,954 8,157 8,954 8,157

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FORTHE YEAR ENDED 30 JUNE 200763 NOTE 21: JOINTLY CONTROLLED OPERATIONS & ASSETSBallarat Health Services ANNUAL REPORT 2006 - 2007Ballarat Health Services has a joint interest in the Ballarat - Austin Radiotherapy Oncology Centre with the St John of GodHospital.The investment was used for the construction of the Radiation Oncology Centre, for which Ballarat Health Service has anentitlement to receive a share of property rental under a 20 year co-operation agreement to recoup its investment.No further amounts are receivable other than lease payments in respect of the investment. Ballarat Health Service isrequired to meet its share of the costs of maintaining the building over the term of the agreement. Lease paymentsreceived are allocated between the repayment of capital and rental income. The allocation of capital repaid is made so asto amortise the cost of the investment over the 20 year lease term. The carrying amount of the investment is as follows;2007 2006$000 $000Opening Balance 965 999New Investments - -Repayments 100 100Interest (64) (66)Capital Repaid 36 34Closing Balance 929 965Ownership Interest 47.67%Ballarat Health Services share of entitlement to lease receivables under the terms of the co-operation agreement are as follows;Less than 1 year 100 100Greater than 1 and less than 5 years 400 400Greater than 5 years 429 465929 965

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FORTHE YEAR ENDED 30 JUNE 2007NOTE 22: RESPONSIBLE PERSON RELATED DISCLOSURES64In 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:PeriodThe Honourable Bronwyn Pike, MLA, Minister for Health 1/07/2006 - 30/06/2007Governing Boards:Ms L McLennan 1/07/2006 - 30/06/2007Ms C Laffey 1/07/2006 - 30/06/2007Mr P Duffy 1/07/2006 - 30/06/2007Mr J Elvey 1/07/2006 - 30/06/2007Mr G Haines 1/07/2006 - 30/06/2007Dr B Hassett 1/07/2006 - 30/06/2007Mrs S McKenzie 1/07/2006 - 30/06/2007Ms J Rae 1/07/2006 - 30/06/2007Accountable OfficerMr A R Rowe - Chief Executive Officer 1/07/2006 - 30/06/2007Ballarat Health Services ANNUAL REPORT 2006 - 2007Remuneration of Responsible PersonsThe number of Responsible Persons are shown in their relevant income band;Parent Parent Consolidated Consolidated2007 2006 2007 2006No. No. No. No.Income Band$0 - $9,999 - 2 - 2$10,000 - $19,999 7 7 7 7$30,000 - $39,999 1 - 1 -$320,000 - $329,999 1 - 1 -$330,000 - $339,999 - 1 - 1Total Numbers 9 10 9 10Total remuneration received or due and receivableby Responsible Persons from the reporting entityamounted to:Amounts relating to the Responsible Ministers arereported in the financial statements of the Departmentof Premier and Cabinet 489,781 439,218 489,781 439,218Other Transactions of Responsible Persons and their Related Parties2007 2006$000 $000Ms L McLennan has an association with UFS Dispensary, who providedpharmacy goods and services on commercial terms and conditions.The total value of transactions with this entity was; 4 5

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FORTHE YEAR ENDED 30 JUNE 200765NOTE 22: RESPONSIBLE PERSON RELATED DISCLOSURES (CONTINUED)Ballarat Health Services ANNUAL REPORT 2006 - 2007Executive Officers' RemunerationThe numbers of executive officers, other than Ministers and Accountable Officers, and their total remuneration during thereporting period are shown in the first two columns in the table below in their relevant income bands. The baseremuneration of executive officers is shown in the third and fourth columns, Base remuneration is exclusive of bonuspayments, long-service leave payments, redundancy payments and retirement benefits.ParentConsolidatedTotal Remuneration Base Remuneration Total Remuneration Base Remuneration2007 2006 2007 2006 2007 2006 2007 2006No. No. No. No. No. No. No. No.$110,000 - $119,999 - - 1 - - - 1 -$120,000 - $129,999 1 - - - 1 - - -$130,000 - $139,999 - - - 1 - - - 1$140,000 - $149,999 1 1 2 2 1 1 2 2$150,000 - $159,999 1 1 1 - 1 1 1 -$160,000 - $169,999 - 2 - 2 - 2 - 2$170,000 - $179,999 - - 2 1 - - 2 1$180,000 - $189,999 2 1 1 - 2 1 1 -$190,000 - $199,999 2 1 - - 2 1 - -$220,000 - $229,999 - - - 1 - - - 1$240,000 - $249,999 - 1 - - - 1 - -Total Number 7 7 7 7 7 7 7 7Total Amount 1,194,738 1,256,402 1,103,313 1,169,361 1,194,738 1,256,402 1,103,313 1,169,361All payments made to Executives are governed by the Government Sector Executive Reumeration Panel. The changes from the previous yearreflect GSERP approved pay increases, as well as the payment of accumulated long service leave for a number of Executives.NOTE 23: REMUNERATION OF AUDITORS2007 2006$000 $000Audit Fees paid or payable to the Victorian Auditor-Generals Officefor audit of Ballarat Health Services' financial report 63 61Total Paid and Payable 63 61NOTE 24: CONTROLLED ENTITIESName of Entity Country of Incorporation Equity HoldingBallarat Health Services Foundation Ltd. Australia 100%

BALLARAT HEALTH SERVICES SPECIALTIES AND SERVICESAllied Health Services:• Dietetics• Exercise Therapy• Occupational Therapy• Physiotherapy• Podiatry• Prosthetics and Orthotics• Psychology• Social Work• Speech TherapyAcquired Brain InjuryBreast CareCardiologyCentral Sterile Supply Department (CSSD)Coronary Care UnitCognitive Impairment & Dementia ManagementCommunity NursingCommunity Programs including:• Adult Day Activity Centres• Aged Care Assessment Service (ACAS)• Allied Health Domiciliary Service• Commonwealth Carer Respite Centre -Carelink Centres• Domiciliary Care• Hospital Admission Risk Program (HARP)• Hospital in the Home• Linkages - Central Highlands Coordinated Care• Planned Activity Groups• Post Acute Care• Regional Continence Service• Regional Palliative Care Team• Rehabilitation in the HomeDiagnostic and Radiology (X-ray) Services:• Ultrasound• CT Scan• MRI• EEG• ECG• Breast ScreenCritical Care UnitDialysisEar, Nose and Throat SurgeryEmergency MedicineEndocrinology, including Diabetes ManagementFalls and BalanceGastroenterologyGeneral MedicineGeneral SurgeryGynaecologyInfection ControlIntensive Care Unit & Medical EmergencyResponse TeamLymphoedemaMedical OncologyNeonatalNephrologyNeurologyMaternity ServicesOperating SuiteOphthalmologyOrthopaedic SurgeryOtolaryngologyOutpatient ServicesPaediatric MedicinePerioperative Day Procedure UnitPain ManagementPalliative CarePlastic SurgeryPsychiatry including:• Child and Adolescent Mental Health Services• Acute Community and Inpatient Services• Aged Community and Inpatient ServicesRadiologyRehabilitation, (In-patient and Out-patient)Residential Aged CareRespite CareSafety LinkStroke ManagementStomal TherapyThoracic MedicineUrological SurgeryWound Management66Ballarat Health Services ANNUAL REPORT 2006 - 2007

Base HospitalDrummond Street NorthBallarat 3350Phone: (03) 5320 4000Fax: (03) 5320 4828Queen Elizabeth Centre102 Ascot Street SouthPO Box 199 Ballarat 3353Phone: (03) 5320 3700Fax: (03) 5320 3860Psychiatric ServicesSturt StreetPO Box 577 Ballarat 3353Phone: (03) 5320 4100Fax: (03) 5320 4028