South West Hospital and Health Service · on modern web technologies including a responsive design that enables ease-of-access to more focused and interactive content. The motivation

South West Hospital and Health Service

Communication ObjectiveThis Annual Report aims to:

• describe our performance by communicating ourachievements and performance for 2017-18; and

• be accountable and transparent by enabling the Ministerfor Health and Minister for Ambulance Services and theQueensland Parliament to assess our efficiency and effectiveness.

Public Availability StatementCopies of this publication can be obtained at: http://www.health.qld.gov.au/southwest

Copies of the report in paper form can be obtained by phoning (07) 4505 1544

Additional information to accompany this Annual Report can be accessed at http://publications.qld.gov.au

Interpreter Service StatementThe Queensland Government is committed to providing accessible services to Queenslanders from all culturally and linguistically diverse backgrounds. If you have difficulty in

understanding the annual report, you can contact us on (07) 4505 1544 and we will arrange an interpreter to effectively communicate the report to you.

Licence:This annual report is licensed by the State of Queensland (South West Hospital and Health Service)

under a Creative Commons Attribution (CC BY) 4.0 International licence.

CC BY Licence Summary Statement:In essence, you are free to copy, communicate and adapt this annual report, as long as you attribute the work to the South West Hospital and Health Service.

To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/

AttributionContent of this annual report should be attributed as:

The State of Queensland (South West Hospital and Health Service) Annual Report 2017-18.

ISSN: 2202-7143 (Print)

ISSN: 2202-7181 (Online)

CopyrightSouth West Hospital and Health Service 2017-18 Annual Report

© South West Hospital and Health Service 2018

Contact UsPrincipal business addressExecutive and Support Services, South West Hospital and Health Service44 – 46 Bungil StreetROMA QLD 4455Post: PO Box 1006

Roma QLD 4455Phone: (07) 4505 1544Email: [email protected]: www.health.qld.gov.au/southwest/

ABN 22 8770 419 39

http://www.health.qld.gov.au/southwest

http://publications.qld.gov.au

http://creativecommons.org/licenses/by/4.0/

Letter of compliance

The Honourable Steven Miles MP Minister for Health and Minister for Ambulance Services GPO Box 48BRISBANE QLD 4001

Dear Minister

I am proud to present the Annual Report 2017-18 and Financial Statements for the South West Hospital and Health Service.

I certify that this Annual Report complies with:

• The prescribed requirements of the Financial Accountability Act 2009 (Qld) and the Financial and PerformanceManagement Standard 2009 (Qld), and

• The requirements set out in the Annual report requirements for Queensland Government agencies for the 2017-18reporting period.

A checklist outlining the annual reporting requirements can be found at page 96 of this Annual Report or accessed at www.health.qld.gov.au/southwest/

Yours sincerely

Jim McGowan AMBoard ChairSouth West Hospital and Health Service

27 August 2018

Annual Report 2017-18 | 1

Letter of Compliance 1Fast facts 3Organisation

Message from the Board Chair and Chief Executive 4Safety and quality 4About our hospital and health service 7Government’s objectives for the community 12

PerformanceOperational performance 15Financial performance 21Open data 23

PeopleOur people and the future 24A highly engaged, flexible and diversified workforce 26Promoting employee health and wellbeing 31Learning and development 31Health and safety 32

GovernanceLeadership structure 33The Board 34The Executive Leadership Team 41Risk management 42Internal audit 43External scrutiny 43Information Systems and Records Management 45

FinancialsFinancial Statements 2017-2018 47Glossary 95Compliance Checklist 96

ContentsAcknowledgment The South West Hospital and Health Service acknowledges the traditional custodians of the lands upon which health services are provided in South West Queensland and acknowledges Elders; past, present and future and pays its respect to the wisdom, knowledge and leadership of the Elders.

We are proud to recognise the cultural diversity of our communities and workforce.

In 2017-18 we reconfirmed our commitment to the Closing the Gap Initiative targets: • to close the gap in Aboriginal and Torres Strait Islander

life expectancy within a generation (by 2033); and• to halve the gap in mortality rates for Aboriginal

and Torres Strait Islander children under five within a decade (2018).

Mandandanji Traditional Welcome to Country: Following the January 2018 Board Meeting, Board Members and staff were privileged to be invited to share the Mandandanji Traditional Welcome to Country ceremony held at the Yarning circle.

2 | South West Hospital and Health Service

Fast factsSouth West Hospital and Health Service (South West HHS) performs a key role in the delivery of quality public health services in South West Queensland. We work in partnership with our staff, community and key stakeholders to plan and deliver services that are focused on what matters most to the people and communities of the South West.

We deliver health services to over 26,000 people who live in our catchment area and rely on the quality care that our 900 plus employees provide. We are responsible for the delivery of medical, surgical, emergency, obstetrics, paediatrics, specialist outpatient clinics, mental health, critical care and clinical support services in an area spanning over 319,000 square kilometres.

Augathella

Mitchell

Injune

Roma

Surat

Wallumbilla

Dirranbandi

Mungindi

St George

CharlevilleMorven

Cunnamulla BollonThargomindah

Quilpie

Hospitals

Multipurpose Health Services

Community Clinics

Residential Aged Care facilitiesare located with the hospitalsat Charleville and Roma.


STAFF (FTE) INVESTMENT IN CARE

MULTIPURPOSE HEALTH SERVICE

CENTRES

COMMUNITY CLINICS

AGED CARE FACILITIES

MENTAL HEALTH PROVISIONS OF

SERVICE

ORAL HEALTH CLIENT CONTACTS WEIGHTED

OCCASIONS OF SERVICES (WOOS) AGAINST A TARGET OF 21,625

HOSPITAL ADMISSION

2017-18:

7,791

OUTPATIENT SERVICES 2017-18:

93,415:

SURGICAL OPERATIONS 2017-18:

1,829:

BIRTHS:2017-18:

205

X-RAY AND ULTRASOUND:

2017-18:

9,114

PHARMACY: 2017-2018:

9,049

4 2

15,347

35,386

74HOSPITALS

EMERGENCY PRESENTATIONS

2017-18:

38,267

812 $141.6m


Message from the Board Chair and Chief ExecutiveThe South West HHS Annual Report 2017-18 provides a moment of reflection on the past year; a chance to celebrate our milestones, openly and transparently disclose our performance and reconfirm our commitment to serving the South West Queensland community health needs into the future. When you read our Annual Report, you will learn how we performed against key performance targets, share in our accomplishments and understand how we are maximising our funds, with the emphasis always on the health of our communities.

This year, we focused on setting the South West HHS up to succeed and sustain into the future. We started to invest in and develop our people so that we can continuously improve and care for our future generations; we created strategies with a focus on agility and innovation to respond to the health challenges which our rural and remote communities are facing. We reconfirmed our commitment to safe, compassionate and person-centred care as the basis for all that we do.

Safety and Quality Our purpose is to provide safe, effective and sustainable rural and remote health services that people trust and value. In 2018, we developed our Safety and Quality Strategy 2018-2022, which mandates our vision for safe, individualised, person-centred and highly reliable care.

Eliminating preventable harm and unwanted variation in care, whilst continually improving patient experience and outcomes is the very core of our work. We have now established the ritual of a patient, family or staff story as the first standing agenda item of each Board Meeting and Executive Leadership Committee, so that we are always connected to our purpose. We are privileged to have had patients and staff willingly share their powerful stories, allowing our organisation to truly see through the eyes of those experiencing and delivering care.


As our Safety and Quality Strategy 2018-2022 matures, the intended path for the South West HHS is to take a lead role in sharing applied knowledge in safety and high-quality care with the broader rural healthcare community nationally.

How we make a differenceWith excitement and pride, we launched the South West HHS’s own set of unique values: Quality, Compassion, Accountability, Engagement and Adaptability. Whilst they are not unlike the values of many other organisations, as a point of difference they were defined personally and locally by our people with a specific behaviour attached to each value. Our values define how everyone across our organisation can expect each other to behave. Importantly, it also lets our community know what they can expect from us and rely on us to do.

Community connection We are committed to meaningful consumer and community engagement so that we can build a resilient, locally responsive and self-determining community that takes ownership of its health service. It is our expectation that our consumers and community will be at the centre of health planning, design, delivery and improvement.

Driven by our desire to continuously improve how we connect and communicate with our local communities, the South West HHS joined social media this year. Activating our Facebook page allows another avenue to more effectively participate in contemporary and genuine community and staff engagement.

We also launched our new public facing website, hinged on modern web technologies including a responsive design that enables ease-of-access to more focused and interactive content. The motivation for this refresh was to improve our communities access to information and the services our health service provides. It is more aesthetically pleasing, easier to use, has up-to-date content and enables community members to access the content via any web-enabled device.

Our new Consumer and Community Engagement Strategy 2018-2022 which was developed in consultation with our community and key stakeholders will focus on:

• Forming connections that are diverse and inclusive to deliver a whole-of-health care system approach;

• Empowering and supporting our consumer and community members to shape the future, design and influence service delivery and improve the current quality of care; and

• Leading a continuously improving person-centred culture.

Engaging effectively with our consumers and community in a meaningful, accountable, responsive and equitable

way is not an obligation, but a necessity. This strategy acknowledges the complexities and challenges of delivering health care services in a rural environment and the need for active consumer and community engagement.

Design Involve GrowWe refocused on what is truly important in health care delivery – you. We have made movements to reshape our organisational structure to focus on the patient, and enable us to deliver great care, and be the safest we can be for the staff and the people we serve.

Together, we are embracing a growth mindset, which not only results in higher professional productivity, but a greater sense of personal satisfaction and sense of purpose and meaning in our work. We have focused our attention to how we lead, and how we ensure we live our values in a way that enables all staff to bring their best to work, and for the organisation as a whole to go from strength to strength.

An inspirational collective of leaders by choice has been formed – Village Connect. Driven by our mission and values this collective is committed to improving the health of people in the bush. Village Connect aims to achieve this by building locally designed solutions and personalised care experiences. More details on this initiative can be found further on in our Annual Report.

Leading cultural capability As a health service, improving Aboriginal and Torres Strait Islander people’s health is a key responsibility and we are deeply committed to closing the gap in health inequities. Aboriginal and Torres Strait Islander community members represent 13.7 per cent of the South West population and it is not acceptable that in Queensland the life expectancy gap is currently estimated at 10.8 years for males and 8.6 years for females.

This year, we established the Aboriginal and Torres Strait Islander Leadership Advisory Council, a peak advisory

Our compassionate, caring, committed and inspiring employees all come to work with one common

goal; to deliver high-quality, person-centred care to our patients,

families, carers and consumers. Every day, they dedicate themselves

to serving the community. ”

“


committee within our governance structure. It has been established to provide clinical leadership, engagement and expert advice to the highest level of management.

We must deliver person-centred culturally safe care and address the social, economic and political inequity and the inequality of health experienced by Aboriginal and Torres Strait Islander people. Closing the gap in health outcomes involves a collective effort from the health system, workforce, and primary health care sector. We are committed to the Queensland Government policy of Making Tracks toward closing the gap in health outcomes for Indigenous Queenslanders by 2033 and have commenced development of our Aboriginal and Torres Strait Islander Health Strategy 2018-2022 to guide us.

Future focus As a broad health community, we must collaborate with our local councils and partner with service providers to tap into the full potential of our local people and shared resources. We do this because we know we face several challenges in the coming years that we cannot do alone. In accordance with our commitments to broader community engagement in our strategic plan we must:

• Focus our attention on reducing the burden of disease and increasing our focus on prevention and brief interventions for healthy lifestyle changes;

• Increase services in primary and community and home settings, and tailor care more to the needs of each individual and their family;

• Concentrate heavily on chronic disease prevention and management care pathways and increase our focus on child and family health to support a healthy first 2,000 days of life; and

• Search for and find innovative technological solutions for how we can do things differently, by seeking new ways of delivering care in more places closer to home when it is safe to do so.

Our new Strategic Plan will assist us in not only meeting but overcoming the challenges we as a community face. The Strategic Plan 2018-2022 represents the efforts, knowledge and time of our people, our partners and our local communities; who all contributed to shape the future

direction of our hospital and health service. Because of this team effort, we now have a vision of where we want to be and the ability to transparently measure our progress and performance into the future.

The Strategic Plan 2018-2022 positions the South West HHS to be a person-centred, high-performing organisation, committed to being a national leader in the delivery of health services to rural and remote communities. We focus on four key priorities: Our Communities, Our Teams, Our Resources and Our Services, whilst recognising the opportunities for innovation, technology, integrated care models, partnerships and delivering services differently to better meet our patients’ needs.

Thank you to our staff, who choose to be a part of the South West community and their continued commitment to compassionate, person-centred care. Every day as Chair and Chief Executive we are inspired by our highly skilled and dedicated staff who commit to providing safe, effective and sustainable rural and remote health services that people trust and value. To our communities, it is an honour and a privilege to serve and care for you and your loved one’s health needs.

It is with pride that we present to you the South West HHS’s 2017-18 Annual Report.

Jim McGowan, AM ChairSouth West Hospital and Health Board

Linda PatatChief ExecutiveSouth West Hospital and Health Service


About our hospital and health serviceEstablished on 1 July 2012, the South West HHS is an independent statutory body overseen by a local Hospital and Health Board pursuant to the Hospital and Health Boards Act 2011 (Qld).

The South West HHS delivers person-centred, responsive and co-ordinated acute, primary and preventative care to our local communities. Our clinical services include medicine, surgery, women’s and newborn, aged care, mental health, oral health and community and allied health.

Shoulder to shoulderThe South West HHS understands the importance of partnerships and working shoulder to shoulder to develop innovative models for rural and remote healthcare; and seeks out all opportunities to foster and strengthen these relationships. Working in partnership will not only improve the sustainability of our healthcare system, community services, and aged care system, but will also increase productivity and contribute to economic inclusiveness for all our local towns.

We collaborate with our local Aboriginal Medical Services, the Western Queensland Primary Health Network, the Royal Flying Doctor Service, community healthcare providers, and other affiliated health services to be an innovative leader and partner, dedicated to enhancing the health outcomes and wellbeing of the South West community.

We recognise the steadfast support of all our Community Advisory Networks, stakeholders, auxiliaries, volunteers and community groups, who help us to provide safe, effective and sustainable health services that people trust and value.

As part of our commitment to providing enhanced health outcomes for our communities, several arrangements are in place with other primary care providers, including Aboriginal Medical Services, the Royal Flying Doctor Service and several private allied health service providers. A major part of providing and delivering excellent health services is our commitment to collaborate and partner with other services and providers to offer the very best service.

It is imperative that we collaborate with local government representatives within our region, as Councils help us to understand and respond to local needs. In 2017-18 through a renewed focus on consultation and collaboration we further strengthened our relationships with all six local government areas; Balonne Shire Council, Bulloo Shire Council, Maranoa Regional Council, Murweh Shire Council, Paroo Shire Council and Quilpie Shire Council and thank them for their valued partnership.

We thank all the organisations with whom we have ongoing, constructive, collaborative relationships with, including the leadership team of the Department of Health. We also thank the Minister for Health and Minister for Ambulance Services, the Honourable Dr Steven Miles MP, the Queensland Government, and the Federal Government for their support.


Closure of the Strategic Plan 2014-2018At the time of publishing this report, the South West HHS will have launched its Strategic Plan 2018-2022, which will

guide us over the next four years and ensure our patients are at the centre of everything we do.

The information on the pages throughout this report detail our considerable progress towards achieving the strategies identified in the Strategic Plan 2014-2018.

THE PERSON IS AT THE CENTRE

CLINICAL EXCELLENCE AND BETTER HEALTHCARE THROUGH REDESIGN, IMPROVEMENT, EFFICIENCY AND QUALITY

SUSTAINABLE RESOURCE AND INFRASTRUCTURE MANAGEMENT, SYSTEM PLANNING AND INTEGRATION

PEOPLE ARE EMPOWERED

IMPROVEMENT THROUGH THE USE OF TECHNOLOGY AND DATA

STAKEHOLDERS INFLUENCE ALL OF OUR EFFORTS

Vision: To be a respected innovative leader and partner organisation to enhance the health outcomes and wellbeing of our patients, our staff and our communities.


Closing the gap in Aboriginal and Torres Strait Islander people’s health inequalities is a key objective of the South West HHS now and into the future.

Closing the gap requires much more than the provision of clinical services, it requires us to have an understanding and respect of cultural differences and needs, and a commitment to applying this understanding across all areas of the health service.

Our Aboriginal and Torres Strait Islander community represent 13.7 per cent of the South West Queensland population and it is vital we improve the health outcomes of this community. We have been proactively working towards this goal, appointing several Aboriginal and Torres Strait Islander Liaison Officers in recent years who provide advocacy and support for patients.

The Liaison Officers are situated in St George, Charleville and Roma and deliver outreach services to the surrounding towns. Liaison Officers not only support our Aboriginal and Torres Strait Islander patients by ensuring they are provided with culturally appropriate care, but assess a patient’s health literacy to ensure they are well-informed when making important decisions.

Additionally, we employ Advanced Aboriginal Health Workers in Dirranbandi, Charleville and St George, who support clinicians in the delivery of health services through community engagement and promotion.

In 2017-18, the South West HHS established the Aboriginal and Torres Strait Islander Leadership Advisory Council to provide clinical leadership, engagement and expert advice to the highest level of operational management in the organisation.

The creation of the Aboriginal and Torres Strait Islander Leadership Advisory Council is a significant step forward in closing the health care gap in South West Queensland, as it brings together our local Aboriginal Medical Services and key community leaders. It will provide greater strategic direction on how we can better deliver quality outcomes for Aboriginal and Torres Strait Islander peoples.

The Aboriginal and Torres Strait Islander Leadership Advisory Council is led by South West HHS Indigenous Health Coordinator Mr Rodney Landers, with other representatives including our health partners from Charleville and Western Areas Aboriginal and Torres Strait Islander Community Health, Goondir Health Services and Cunnamulla Aboriginal Corporation for Health.

Empowering and growing our Aboriginal and Torres Strait Islander workforce is a critical success factor to closing the gap and building strong community trust. We can only improve these health outcomes through working together and continually striving to meet the specific needs of our Aboriginal and Torres Strait Islander community.

Closing the gapTHE PERSON IS AT THE CENTRE


Community led healthcare

The Community Advisory Networks provide an invaluable opportunity for two-way communication between the health service and the community.

The Board has committed to meaningful community engagement and empowering the Community Advisory Network as the peak community and consumer advisory committee to the Board. The South West HHS is focused on enabling our Community Advisory Networks to be localised, self-determining and self-managing. By providing a more flexible and customised approach to our engagement model, each community advisory network is empowered to be more locally responsive, have greater participation and influence health care planning and delivery more effectively.

A draft Community Advisory Network Charter was developed in consultation with our networks and was approved by the Board. The Community Advisory Networks play an integral role and are providing exceptional leadership in highlighting where health delivery can be enhanced and what is working well. As a hospital and health service, we are committed to open and transparent engagement with this special group of

people who give up their own time to assist to improve our health services.

The Charleville Community Advisory Network made considerable progress to enhancing person-centred care and alleviating the stress and discomfort of travel. Through the Community Advisory Network’s advocacy, a transit lounge has been established at Roma Hospital, so our patients now have somewhere safe and comfortable to wait during the time between arriving and their scheduled appointment and waiting for a return bus.

Members of the Charleville public also expressed a desire to be able to book in to see the same doctor, whenever that doctor was undertaking their rotation at the clinic. Thanks to this feedback and subsequent discussions, the Charleville Health Clinic now has access to all the doctors’ rosters thereby allowing the clinic to advise clients when a specific doctor will be available, so they can book an appointment.

The Board is always open to hearing about experiences and ways services may be improved on. When we work together, we can have far better outcomes.



Health in Men

Many men find it difficult to talk about their health, and Health in Men was created to help break down the barriers.

Our clinicians know that many men are reluctant to act when it comes to their health and this can have a really devastating effect in the long-term, not just for the men, but their entire families. In partnership with the Western Queensland Primary Health Network and the Prostrate Cancer Foundation of Australia the Health in Men initiative with legendary entertainer and rugby league authority Steve Haddan informed, screened and captivated audiences in the South West.

Heath in Men is a new initiative which combines comedy and health screening to improve the health and wellbeing of men in our communities. Each free event attracted great crowds, with many attendees taking the opportunity to be screened for diabetes, alcohol related health risk, blood pressure, cholesterol, smoking and to discuss their well-being. Every person who took part in the screening had their results

recorded and a referral provided to take to their general practitioner if a follow up was required.

Once the health screening was finished, Prostate Cancer Australia guest speaker Stephen Jackson provided an informative presentation to encourage men to be prostate cancer aware and shared his own personal experience of the disease. After taking questions and chatting with the crowd about prostate health, Stephen handed the show over to Steve Haddan who immediately had the audience in stitches with his hilarious recollections and tales of life in the television and rugby league industry.

Steve riveted audiences across the region until the very end of his performance, even sharing personal anecdotes about his own experiences with addiction and the impact on his family.

Data and surveys from each event will help us to provide more targeted health promotion and prevention programs into the future.



Launch of the Strategic Plan 2018-2022 A dynamic and determined plan to be a national leader in the delivery of health services to rural and remote communities; and to support our purpose of providing safe, effective and sustainable health services that people trust and value.

In mid-2017 the Board commenced the process of articulating our vision, not just for the next four years but beyond; setting the South West HHS to be a person-centred, high-performing organisation, committed to closing the gap on health inequities.

As part of our ongoing commitment to forward planning, and organisational improvement, we undertook a significant consultative process to review and close the Strategic Plan 2014-2018 and develop an innovative approach for a new era. As part of the development of the new strategic plan, we carefully considered our objectives and the potential rollover of strategies which were still required.

Our Strategic Plan 2018-2022 represents the efforts, knowledge and time of our people, our partners and our local communities; who all contributed to shape the future direction of our health service. Because of this collaborative effort, we now have a vision of where we want to be and the ability to transparently measure our progress and performance against headline measures.

We focus on four key priorities: Our Communities, Our Teams, Our Resources and Our Services, whilst recognising the opportunities for innovation, technology, integrated care models, partnerships and delivering services differently to better meet our patients needs.

Our patients, families, carers and our communities are at the heart of all that we do at the South West HHS. We live in an often-unforgiving landscape with vast geographical differences and distances with a diverse population; and our Strategic Plan 2018-2022 promotes innovative solutions to deliver the right service, at the right place, at the right time. People will always come first in everything that we do, from health planning, design and delivery to cultivating and inspiring healthy communities’ initiatives across the region.

Queensland Government’s objectives for the community The South West HHS’s new priorities and strategic objectives support the Department of Health’s commitment to providing better health outcomes for all Queenslanders through continuous improvement and innovation; and to deliver the greatest benefit with the available resources. Our Strategic Plan closely aligns with the Department of Health strategic objectives which are: Promoting wellbeing, delivering healthcare, connecting healthcare and pursuing innovation.

Our new Strategic Plan supports the ‘Our Future State, Advancing Queensland’s Priorities,’ specifically:

To the wonderful staff of St George Hospital...how can we express our

extreme thanks and appreciation for your incredible care for our precious

boy and birth of our son.

Words are not sufficient!”“


My health, Queensland’s future: Advancing health 2026 (Advancing health 2026) The My health, Queensland’s future strategy mandates that ‘By 2026, Queenslanders will be among the healthiest people in the world’. The strategy creates a common purpose and a framework for the health system in Queensland. It seeks to bring together government agencies, service providers and the community to work collaboratively. Five principles underpin this vision, directions and agenda:

Sustainability - We will ensure available resources are used efficiently and effectively for current and future generations.

Compassion - We will apply the highest ethical standards, recognising the worth and dignity of the whole person and respecting and valuing our patients, consumers, families, carers and health workers.

Inclusion - We will respond to the needs of all Queenslanders and ensure that, regardless of circumstances, we deliver the most appropriate care and service with the aim of achieving better health for all.

Excellence - We will deliver appropriate, timely, high quality and evidence-based care, supported by innovation, research and the application of best practice to improve outcomes.

Empowerment - We recognise that our healthcare system is stronger when consumers are at the heart of everything we do, and they can make informed decisions.

Leading the way in the State for nurse navigators

The Nurse Navigator service facilitates the journey of patients with complex healthcare needs through the increasingly complex health system.

The South West HHS is supporting the Government’s priority of ‘Delivering quality frontline services’ and is embarking on a research project with Central Queensland University to evaluate the Nurse Navigator service. This exciting research will allow our health service to implement evidence-based changes into the service and the Navigator Model of Care. The research will also look at the professional satisfaction and

resilience of our nurses within the navigation service.

Our own Nurse Navigator Jeanelle Everitt spoke to 150 nurse navigators from across the State about starting their service and engaging with key stakeholders at their inauguration in March 2018. ‘As Nurse Navigators, we work to help reduce fragmentation, mitigate barriers, educate and empower patients and coordinate patient care. Reasons for referral includes case coordination, coordination to appropriate services, linkage to appropriate services, improved health literacy and health education,’ Ms Everitt said.



Creation of the Village Connect

We are a collective of leaders by choice, driven by the South West HHS mission and values who are committed to improving the health of people in the bush. We aim to achieve this by building locally designed solutions and personalised care experiences.

The very nature of what we do and who we are is complex. Providing health care in the bush is full of challenges, however, it remains the most rewarding of human experiences. To work with rural and remote communities is a true privilege and the central passion for our life’s work. It is driven by our desire to make a difference, and to help others do the same. We endeavour to turnaround the health disparities and inequalities of living in the bush, and we know that it requires us to be solid and reliable partners, trusted advisors, locally connected, tapping into the talents of our people and communities.

Village Connect is South West HHS’s centre of excellence in innovation and research, leading the way in new developments, ideas and system solutions for rural and remote healthcare. The centre is at the forefront of advancing new systems and approaches the total health and wellness – individualised and personalised care and locally co-designed solutions in the bush.

The Village Connect initiative draws on evidenced based safety theory, community capacity building, customer and user experience techniques, and the natural laws of life as a way of building our approach in achieving individual and whole system designs, building capacity and connections. The Village Connect operates through an ideation and innovation framework built on strong fundamentals of consumer and community engagement, team engagement and person-centred care.

We act for the individual and learn for the system, engaging in continual feedback cycles through listening, developing improvement and spreading opportunities. We work as an agile organisation to develop and maintain this momentum.

The Village Connect platform supports large-scale change in the health and care system – and specifically for rural and remote healthcare - through acting as a catalyst and research enabler of locally led innovation. Spreading and scaling up innovations is our role and our value-add.

Rural and Remote communities are by nature resilient, diverse and respectful of the human experience. This base premise for living and working in the bush inspires and drives the vision for our Village.



South West Hospital and Health Service Notes 2017-18 Target/Est.

2017-18 Est. Actual

Service standardsEffectiveness measuresPercentage of patients attending emergency departments seen within recommended timeframes: 1

• Category 1 (within 2 minutes) 100% 90%





Percentage of emergency department attendances who depart within 4 hours of their arrival in the department 2 >80% 95%

Percentage of elective surgery patients treated within clinically recommended times: 3

• Category 1 (30 days) >98% 100%

• Category 2 (90 days) >95% 98%

• Category 3 (365 days) >95% 100%

Median wait time for treatment in emergency departments (minutes) 4 20 5

Median wait time for elective surgery (days) 5 25 81

Efficiency measure 6

Other measuresNumber of elective surgery patients treated within clinically recommended times: 7

• Category 1 (30 days) 150 164

• Category 2 (90 days) 170 224

• Category 3 (365 days) 820 712

Number of telehealth outpatient occasions of service events 8, 9 3,019 2,600

Total weighted activity units (WAUs): 10

Acute inpatient 4,802 4,802

• Outpatients 1,532 1,737

• Sub-acute 618 618

• Emergency department 2,730 2,730

• Mental health 131 131

• Prevention and primary care 430 430

Ambulatory mental health service contact duration (hours) 11 >5,410 5,302

Operational performanceThe South West HHS committed to continual improvement in 2017-18, with a focus on alignment of our strategic and operational priorities.

The Key Performance Indicators table below provides a summary of our performance against major key performance indicators described in the South West HHS’s service agreement with the Department of Health.


Notes:1. This is a measure of the access and timeliness of Emergency Department

(ED) services. It reports the number of minutes that patients waited to be seen for ED treatment. Data sourced for this measure is from the Queensland Health Emergency Department Data Collection and manual submissions from Hospital and Health Services. Estimated Actuals for 2017-18 are for the period 1 July 2017 to 30 April 2018. Variance in Category 1 2017-18 Estimated Actuals is a result of a data entry issue. Rural isolated data entry issues have been identified and are being corrected.

2. This is a measure of access and timeliness of ED services. Data sourced for this measure is from the Queensland Health Emergency Department Data Collection and manual submissions from Hospital and Health Services. Estimated Actuals for 2017-18 are for the period 1 July 2017 to 30 April 2018. The measure reflects the performance of the 90 performance reporting facilities across the State.

3. This is a measure of effectiveness that shows how hospitals perform in providing elective surgery services within the clinically recommended timeframe for each urgency category. Estimated Actuals for 2017-18 are for the period 1 July 2017 to 30 April 2018.

4. This measure indicates the length of time within which half of all people were seen in the ED (for all categories), from the time of presentation to being seen by a nurse or doctor (whichever was first). Estimated Actuals for 2017-18 are for the period 1 July 2017 to 30 April 2018. The target for this measure is to be removed from 2018-19. There is no nationally agreed target for this measure, and the median wait time varies depending on the proportion of patients in each urgency category.

5. This is a measure of effectiveness that reports on the number of days within which half of all patients received elective surgery. Estimated Actuals for 2017-18 are for the period 1 July 2017 to 30 April 2018. The target for this measure is to be removed from 2018-19. There is no national benchmark target for this measure, and the median wait time varies depending on the proportion of patients in each urgency category.

6. An efficiency measure is being investigated for this service area and will be included in a future Service Delivery Statement.

7. This is a measure of activity that reports the number of elective surgery patients who were treated within the clinically recommended time in each category. It shows the volume and timeliness of elective surgery services. Estimated Actuals for 2017-18 are based on the period 1 July 2017 to 30 April 2018 and are annualised to derive an estimate for the full financial year. The category 3 2017-18 Estimated Actuals have shown a declined performance, specifically in Ophthalmology services. This is due to the completion of targeted surgical initiatives ceasing in 2017-18, and changes to patient flow for Ophthalmology services.

8. This measure tracks the growth in non-admitted patient telehealth service events. Telehealth service events enable timely access to contemporary specialist services for patients from regional, rural and remote communities, and support a reduction in waiting times and costs associated with patient travel. Estimated Actuals for 2017-18 are based on the period 1 July 2017 to 28 February 2018 and are annualised to derive an estimate for full financial year.

9. The telehealth counting unit has been updated to cover ‘service events’ rather than ‘occasions of service’. Service events is considered to be a more informative measure. It is a narrower definition as it does not include occasions of service that do not involve the provision of clinical care. The reduction in Estimated Actual service events in 2017-18 has been impacted by redesign of specialist services across three hub facilities. The redesign has improved face-to-face specialist services delivered across sites.

10. A Weighted Activity Unit (WAU) provides a common unit of comparison so that all public hospital activity can be measured consistently. Activity is weighted based on the ‘efficient cost’ of care provided to patients, across various treatment types (including acute inpatient, emergency department, outpatient services, sub-acute care, mental health and prevention and primary care). Estimated Actuals for 2017-18 are based on 2017-18 service agreements as updated in amendment window three in May 2018 to incorporate HHS activity forecasts. 2018-19 Target/Estimates are based on the 2018-19 purchased activity. All activity is reported in the Q19 phase of the ABF model which underpins 2017-18 and 2018-19 service agreements. The service agreement category ‘Total WAUs – Interventions and procedures’ has been reallocated between ‘Total WAUs – Acute Inpatient Care’ and ‘Total WAUs – Outpatient Care’. ‘Total WAUs – Prevention and Primary Care’ is comprised of BreastScreen and Dental WAUs.

11. This measure counts the number of in-scope ambulatory mental health service contact hours, based on the national definition and calculation of service contacts and duration. Estimated Actuals for 2017-18 are based on the period 1 July 2017 to 30 April 2018 and are annualised to derive an estimate for the full financial year. It is important to note that not all ambulatory mental health service contact hours are in-scope for this measure, with most review and some service coordination activities excluded. In addition, improvements in data quality have impacted on this measure, with recent data more accurately reflecting the way in which services are delivered. The 2018-19 Target/Estimate is calculated based on available clinician hours multiplied by an agreed output factor, weighted for locality. Services may have a reduced 2018-19 Target/Estimate in comparison to 2017-18 due to movement in reported available clinician hours.

Telepharmacy making a positive difference to lives in the bush

Telehealth is being used to overcome the tyranny of distance for South West HHS patients requiring medication and prescriptions reviews.

Patients in need of a medication review can now visit their local health facility and video-conference with a pharmacist at their nearest hospital pharmacy, whether at Charleville, Roma or St George.

Telepharmacy is ideal for patients who have been recently hospitalised or are taking more than four medications and gives patients without a locally available pharmacist, the opportunity to have their medication reviewed without the stress of travel.

This innovative way of providing health care enables patients to speak directly with pharmacist and the stress of travel is eliminated.



Operational achievements The South West HHS continued its strong operational performance in 2017-18, achieving or exceeding the major key performance indicators of Emergency Access Targets and Elective Surgery Targets. Other notable highlights included:

• Patient and family accommodation at Charleville to support the maternity model of care opened in November 2017;

• Chemotherapy commenced at Roma and St George and our partnership with Darling Downs HHS is working effectively;

• Aboriginal and Torres Strait Islander liaison roles implemented at each hub site, and Making Tracks Funding submission to employ six liaison officers for a further 12-month period was approved in April 2018;

• The annual Community Advisory Network Forum was held in October 2017, providing a valuable opportunity for the Board to engage directly with our members and for our

members to learn with key topics including ‘Power tools for connection in Leadership’, ‘Speaking up for Safety’ and ‘Antimicrobial Stewardship’;

• The Palliative Care Service is operational at all sites;

• The Discharge Against Medical Advice Procedure was developed and released, further work will continue on this initiative in 2018-19 to co-design the decision-making framework around supportive discharge;

• Successful outcome post-accreditation survey;

• Financial Delegations have been reviewed and presented to the Board;

• A contemporary budget tool has been developed and implemented;

• Emergency Management Committee has been established; and

• The State-wide Nursing and Midwifery Exchange program was developed.


Improving patient accommodation

Designed for families with patients in hospital, or people having to travel long distances, we are dedicated to making the patient journey as comfortable as possible.

A brand new $450,000 patient and family accommodation complex has been completed at Charleville Hospital. The Board is determined to continue improving patient facilities throughout the South West.

The new facility at Charleville and a similar two-unit patient

accommodation complex opened at St George Hospital in July 2017, are part of an ongoing program of improvements. Like the St George project, the Charleville patient accommodation facility has delivered two by two-bedroom, fully outfitted units.

These units are just like apartment units, they have a bathroom and a full kitchen. They are also fully furnished, even down to TVs and DVD players. One of the units also is designed for full disabled access and use and has an access ramp up to the front door from the car park.


Operational focus areasDuring 2018-19, the South West HHS will focus efforts to:

• Strengthen access to health services and implement innovative models of care across the region;

• Sustainably increase the scope of clinical service capability based on current and future population health needs;

• Implement strategies to close the gap on health outcomes for local Indigenous communities;

• Increase investment in preventative health;

• Provide an endoscopy rural generalist model with advanced skills;

• Implement skin checks across all sites within the South West HHS and increase cancer screening rates;

• Develop and implement an integrated health system through strategic partnerships with the primary health care sector;

• Continue a paediatric development model of care in partnership with the Lady Cilento Children’s Hospital;

• Partner to progress healthy communities’ initiatives including implementing HOPE Projects (Harmony Opportunity Potential and Empowerment) for Cunnamulla and Charleville;

• Continue the partnership of providing integrated primary care centre services in Cunnamulla between South West HHS and Cunnamulla Aboriginal Corporation for Health (CACH);

• Increase investment in public surgical services of ophthalmology, urology and orthopaedics;

• Invest in technology and connectedness that supports innovation and personalised care;

• Continuously improve patient safety and quality and mature our clinical governance to deliver high quality services as close to home as possible;

• Empower our people through a strong culture of continuous learning and support staff in professional development;

• Strengthen the workforce through:• continuation of the nursing recognition program;• continuation of nurse navigator roles across the

South West HHS; and• participation of community and allied health

leaders in the Queensland Health Emerging Clinical Leaders Course.

THE PERSON IS AT THE CENTREPatient stories, our purpose

Commencing in 2017-18, each Board and Executive Leadership committee starts with a patient or staff story, to ensure we never lose sight of the purpose and meaning of our work. There has been patient stories and experiences which teach us how we can improve, how we excelled and how our care impacts every patient that walks through our doors.

Our staff stories encapsulate how each individual can make a difference – contributing in their own way. The passion and dedication of our staff to patient centred care is contagious and fuels all our staff to always do better. With our differences being respected and exploited as strengths, we are focused on creating a united whole.


THE PERSON IS AT THE CENTRE Achieving accreditation

In the closing meeting auditors remarked on what great pride and professionalism they encountered from staff committed to continual quality improvement in everything they do.

As a continuously learning, progressive and innovative health service, we demonstrate our commitment to excellence through external accreditation with a range of industry standards, including the National Safety and Quality Health Service Standards. It is a testament to the commitment of our highly skilled and dedicated staff that we achieved a glowing report from the external auditors from the Institute for Healthy Communities Australia Certification Pty Ltd (IHCAC).

The auditors visited from Monday 19 March – Friday 23 March to conduct the AS/NZS ISO 9001:2015 (Quality Management System) Standard annual surveillance audit and upgrade to ISO: 2015.

The health service was complimented for having implemented innovative and creative new practices, exceptional documentation across all operational services and the auditors urged staff to now reflect on the ISO journey with their teams.

The auditors remarked they had never come out of an audit without a comment about documentation, applauding clinical and non-clinical teams for this immense accomplishment.

They also commented that the positive change in culture was evident throughout multiple tiers of the organisations.

Whilst last year there were over 60 findings, this year there was less than 20, which is an incredible improvement. Our staff, who worked together to achieve the best performance that South West has ever had in an external accreditation audit can be extremely proud. This result provides a high degree of confidence to our community that their health services are of the highest quality.

I was very impressed with the professionalism of all staff, especially in

the theatre nurse.

”“


St George GP one of the nation’s best

‘I absolutely love the place, there is something very special about this town and its people, so in 2002, I returned and have enjoyed helping to look after them ever since.’

Long-serving St George doctor Adam Coltzau was named Queensland finalist in the 2017 Royal Australian College of General Practitioners (RACGP) General Practitioner of the Year Award.

Dr Coltzau, who divides his time between duties at the St George Hospital and work at a local medical centre, said he was honoured by the accolade. He thanked his family, colleagues and the great people of St George for the support and opportunities they have provided him.

Dr Coltzau first came to St George in 1999 during his final year as a medical student and returned as a Junior Medical Officer a few years later. After finishing advanced skills training in obstetrics and anaesthetics, Dr Coltzau completed most of his general practice training at St George

Hospital and with Goondir Health Services. The dedicated doctor is also a familiar face to many people in the nearby town of Bollon, where he provides a general practice outreach clinic.

Teaching and training medical students and GP registrars is another aspect of the profession Dr Coltzau is passionate about. He can pass on his learnings and encourage the next generation of younger doctors, with the hope they may be inspired to pursue a career in rural general practice.

Dr Coltzau is a senior lecturer at the University of Queensland, former president of the Rural Doctors Association of Queensland (RDAQ) and current Chair of the RDAQ Foundation.

We are privileged at South West HHS to have such a highly skilled and dedicated GP, committed to delivering person-centred care to our communities.



Financial performanceAlthough the South West HHS recorded a financial deficit of $1.1M in 2017-18, the result included an adjustment to the valuation of land of $1.4M, which impacted what was therefore an operational surplus of $0.3M.

The health service is combining an effective accountability framework with medium to long term financial modelling, to ensure our service continues to deliver the appropriate level of services to our community, backed by effective and efficient systems and processes.

Financial highlightsOur consistent financial performance reflects a commitment to delivering sustainable health services to our community. Surpluses from prior years are reinvested in capital and other projects which enhance our service capability.

WHERE THE FUNDS COME FROM

South West HHS income includes operational revenue which is sourced from five major areas:

• State Government contribution for health service activity for block funded services;

• Commonwealth contribution for health service activity for block funded services;

• Grants and contributions such as home and community care, nursing home revenue and specific purpose grants;

• State Government contribution for depreciation and amortisation; and

• Own-sourced revenue generated from private practice and inpatient bed fees.

The revenue chart in Figure 1 below indicates the extent of these funding sources for 2017-18.

Figure 1: Revenue by funding source

WHERE THE MONEY GOES

The total expenses for South West HHS were $152.1 million, averaging $417,000 per day on servicing clients in the South West. This is a 9% increase on 2016-17 levels, reflecting the increased investment in healthcare delivery.

Labour makes up the largest component of our operational budget, at 69% in total. Labour expenses increased in 2017-18, with an increase of 53 full-time equivalents compared to 30 June 2017.

Figure 2 provides a breakdown of expenditure of the main categories.

Figure 2: Expenditure by category

Block state $100,176,000

66%

Block Cwlth $23,472,000

Grants $8,529,000

Other $882,000

Own Source $11,509,000

Depreciation $6,466,000

Congratulations, you have all worked hard to have a first

class hospital in Roma.

I appreciated the high standard of care from the doctors and nursing staff.”

“4%

8%

1%6%

16%

Employee expenses

$8,287,000

Depreciation $6,466,000

Contractors $15,199,000

Revaluation decrement $1,418,000

Health Service labour expenses $81,602,000

Other expenses $3,286,000

Supplies & Services $35,912,000

4%2%1%

5%

24%

10%

54%


Community reinvestment

To consistently produce favourable financial results each fiscal year, requires a continued focus on the financial sustainability of HHS services.

Since 2012, the Board has completed $5.9 million in investments, as a community dividend, to improve local services including:

• $1.36 million refurbishment of Injune and St George Emergency Departments;

• $2.61 million project to build staffing accommodation at Roma, Injune, Surat and Dirranbandi for staff attraction and retention;

• $0.341 million for Patient accommodation at Charleville;

• $1.057 million in Building Infrastructure works at Cunnamulla and Charleville; and

• $0.341 million in Digital X-Ray equipment;

• $0.198 million in ICT projects at Charleville.

Figure 3: Major Components of supplies and services

Supplies & services include: FY2018 $000’s

FY2017 $000’s

Change $000’s

Building services 876 792 84

Clinical supplies 2,817 2,751 66

Electricity & other energy 2,441 2,128 313

Pharmaceutical supplies 2,408 1,584 824

Patient travel 2,600 2,055 545

Repairs & maintenance 4,771 5,030 -259


• Building services includes expenditure such as cleaning, rates and taxes, and other building related services.

• The cost of clinical supplies has remained constant across the two years.

• There has been an increase in some pharmaceutical supplies which are reimbursed through the Pharmaceutical Benefits Scheme (PBS).

• The increase in patient travel costs reflect the increase in travel claims submitted.

• Following a high level of investment in 2016-17, expenditure on repairs and maintenance reduced in 2017-18. Expenditure is linked to the asset replacement value of our buildings and land improvements.


Nursing to higher education

‘In today’s fast-changing and fast-paced world, we all need to keep abreast of the latest developments, no matter what profession or career stream we are in.’

The South West HHS has introduced an initiative as part of our nursing and midwifery workforce strategy to support any of our staff seeking to gain additional qualifications. This ensures our staff are gaining new knowledge and skills to put into practice in their local workplaces in the South West.

The acquisition of knowledge through inquisitive learning enables staff to learn how to acquire new evidenced-based principles that will ensure they know how to research new and current treatments. It will also help develop leadership and management skills in our nursing and midwifery workforce.

Congratulations to the first eight nursing staff who completed the program and all the best for our second round of staff.

Chief Finance Officer StatementFor the financial year ended 30 June 2018 the Chief Finance Officer provided a statement about the Service to the Board and Chief Executive in relation to financial internal controls, compliance with prescribed requirements for establishing and keeping the financial accounts and preparation of the financial statements to present a true and fair view, in accordance with accounting standards.

Open Data Additional annual report disclosures – relating to expenditure on consultancy, overseas travel and implementation of the Queensland Language Services Policy are published on the Queensland government’s open data website, available via: www.data.qld.gov.au



http://www.data.qld.gov.au

Our People The creation of innovative solutions to deliver the right service, at the right place, at the right time requires a skilled and capable workforce.

Our people and the futureThe South West HHS employs a workforce of 987 skilled and committed medical, nursing and allied health professionals supported by dedicated teams of administrative and operational staff across 17 facilities in South West Queensland.

Our Strategic Plan 2014-2018 and the introduction of the new Strategic Plan 2018-2022 form the basis for the development and implementation of strategies and initiatives that position the South West HHS workforce to not only become contemporary but also agile to deliver the best possible healthcare. The achievement of our vision of being a national leader in the delivery of health services to rural and remote communities is predicated on having a skilled, competent, dedicated and flexible workforce.

Over the coming years the forces of change will significantly impact the health sector and ultimately South West HHS’s employment landscape, requiring the service like other health sectors and industries, to reassess the way we have traditionally viewed work, our workers and workplaces. Every aspect of how the South West HHS operates – from our services, to our customers, to our workplaces and practices will be impacted.

The Queensland Government 10 Year Human Capital Outlook and Roadmap provides the Queensland public sector with a plan for our future workforce and has been developed to reshape thinking and prepare organisations

for the major shifts coming as they relate to and impact the issue of human capital investment.

To meet these challenges the South West HHS, during 2017-18 commenced positioning itself to integrate the levers for change and the strategic imperatives identified in the 10 Year Human Capital Outlook and Roadmap; with some of our achievements reflected in this report.

How we make a differenceOur values unite us in our shared core beliefs and commitment to, the bush and the local communities we serve.

The South West HHS is a family in the workplace, and our communities rely on us to make a strong link between our culture and the services we deliver. We do this by nurturing our person-centred care philosophy to support our future vision and our priorities. We are privileged to have highly skilled and committed staff, who bring their best self to work – and have the clarity, energy, enthusiasm, confidence and belief, to create the best workplace conditions for themselves and each other.

In June 2018, we launched our own South West Values which guide our behaviour and our decisions.

Our values align with the Queensland Public Service Values, and in 2017-18 our staff upheld and were accountable for the following five values:

• Customers first; • Ideas into action;

• Unleash potential; • Be courageous; and

• Empower people.


Quality pharmacy services to the bush

We cover a vast geographic area and one of the exciting challenges is ensuring we deliver the same level of health care to all people in an area which covers 21 per cent of Queensland.

The South West HHS appointed a new Director of Pharmacy in 2017-18, Mr Greg Brylski. With a passion for rural and remote health care, Mr Brylski is well-suited to his role which involves coordinating the supply, safety and delivery of medication to 17 individual facilities.

We have pharmacists based at Charleville, Roma and St George Hospitals who provide outreach to surrounding communities.

Mr Brylski, who most recently worked at the Prince Charles Hospital in Brisbane, said it was his desire to help the community which led him to study pharmacy at university and pursue a career in public health.

We also welcomed Ms Stephanie Newsham as Clinical Pharmacist at Roma Hospital this year. Working as

a registered pharmacist for five years, Ms Newsham spent seven weeks working as the locum pharmacist in Cunnamulla. With a connection to our community, her mum being a teacher at Cunnamulla and her dad growing up on a sheep property near Eulo, Ms Newsham is now living somewhere integral to her family’s history.

Ms Newsham brings a wealth of experience to the health service, having previously worked as an intern in community pharmacy at Stanthorpe and at John Flynn Private Hospital on the Gold Coast as a Clinical and Oncology Pharmacist.

Access to certain medications and stock can be more difficult outside of metropolitan areas, which can lead to having to be a bit more creative. Our pharmacists are resourceful and maintain good working relationships with other health professionals in the area.

Pharmacy in the city can sometimes mean a more transient customer base so you might not have such a large number of regular patients. Building rapport and a solid relationship with patients is core to all of our pharmacists in the South West.



Ethics and Code of ConductSouth West HHS continued to uphold the principles of the Public Sector Ethics Act 1994 (Qld); integrity and impartiality, promoting the public good, commitment to the system of government and accountability and transparency.

All staff employed are required to undertake training in the Code of Conduct for the Queensland Public Service during their orientation and re-familiarise themselves with the Code of Conduct through their annual Capability, Development and Learning Agreement process.

A highly engaged, flexible and diversified workforce At South West HHS we believe in the power of difference and being flexible by design and we have worked diligently to build and support high performing and diverse teams. We have instilled in our workplaces an understanding of the importance of values, teamwork, cultural diversity and inclusiveness. We have also sought to create workplaces that are collaborative, engaging and allow employees to reach their full potential.

We have committed to achieving better organisational outcomes by empowering employees and finding ways to reduce bureaucratic processes and improved utilisation of modern technologies that support our rural and remote staff in the delivery of our healthcare services.

We particularly recognise the importance of Aboriginal and Torres Strait Islander employment in embedding culturally safe health care. One of our key strategic initiatives in our Strategic Plan 2018-2022 is building cultural capability and we intend to focus on increasing our workforce diversity levels in line with state-wide targets.

We value the diversity of our workforce across all professional groups and are committed to establishing a workforce that is reflective of our communities. Our diversity profile is:

• 32 - 3.5% of all employees identify as Aboriginal and Torres Strait Islander;

• 44 - 4.1 % of all employees identify as from a non-Englishspeaking background; and

• 21 - 2.21% of all employees identify as people withdisabilities.

Our Aboriginal and Torres Strait Islander people are employed in nursing, managerial and clerical and operational roles.

Employee engagementThe South West HHS’s Clinician and Employee Engagement Plan 2018 – 2022 was approved in May 2018 and has commenced implementation to strengthen engagement. There is growing evidence that effective employee engagement is related to overall business performance which depends on discretionary effort, creative thinking and innovation.

Our newsletter The Pulse is the cornerstone of our internal communication and employee engagement initiatives. Together with other internal communication tools we have strengthened our communication and engagement with staff. The Pulse showcases the wonderful things that happen across our facilities including special projects, innovations and celebratory events. Key messages from the Board Chair and Health Service Chief Executive are shared with staff along with milestones and achievements.

Reward and recognitionOur Recognition and Reward Framework is central to the recognition of staff and the celebration of their achievements and high performance. Our staff feel valued for their contribution and inspired to continue working towards our vision and purpose.

Staff performance is formally and informally recognised, both at the organisational and service level with monthly activities such as barbeques and employee recognition awards occurring in each facility.

The #swSpirit introduced in March 2018, is an initiative to acknowledge the great work undertaken by our staff in the workplace daily and who make a real difference to the delivery of quality healthcare services.

Our annual Staff Excellence Awards, ‘Building better health in the bush’ provide an excellent opportunity to recognise the outstanding contributions of our staff across the service in reflecting the organisations values, promoting leadership, closing the gap and improving health service delivery.

Employee relationsWe are committed to continuing a mature, respectful and transparent relationship with the unions which represent our workforce; and we actively encourage our staff to engage with their representative associations or industrial bodies. The People and Culture, Human Resources Unit promotes an open relationship with local union organisers with the aim of early resolution of any issues or concerns that may arise.

Workforce resourcingOur workforce is fundamental to our success and is at the heart of everything we do. Throughout the year we have invested in their engagement, health, safety and wellbeing, retention and development.

In 2017-18 the South West HHS employed 987 staff (812 FTE) across a variety of professions with females constituting 50 per cent membership of the South West Hospital and Health Board, 40 per cent of our Executive Leadership Team 76 per cent of Senior Officer roles and 86 per cent of all employees.

The following data, utilising Minimum Obligatory Human Resource Information (MoHRI), shows the disbursement of staff by employment status.


Early retirement, redundancy and retrenchmentNo redundancy, early retirement, retrenchment packages were paid during the period.

Graduate nurse retention in the South West HHS During 2017-18, 43 graduate nurses commenced across the health service exposing them to rural nursing experiences. 88 per cent of these graduate nurses were retained by the South West HHS after their graduate year.

Student placementsThe South West HHS further supported professional education and training, increasing the total of nursing, medical, and allied health student placements across the service throughout the year.

In 2017-18, there were 117 nursing placements, 38 medical placements and 15 allied health student placements across the service from a range of educational providers.

Talent attraction, retention and succession During 2017-18 we improved the attraction, recruitment and retention of skilled employees. This was achieved through reviewing and improving our talent management and succession planning approaches. With a focus on attracting high performing people whilst identifying key staff and roles to fill critical leadership roles in the future, we are setting the South West HHS for a sustainable future.

The understanding of the importance of leadership skills for the current and future workforce resulted in the drafting of South West HHS’s first Succession Planning Framework and Leadership Development Program.

Employment status

Student placements supported by SWHHS

Medical Nursing TAFE

2017-182016-172015-16

3542 44

14

41 4236

21 22 21 2112 12

80

160

14

38

117

1518

3

2014-152013-142012-132011-12

Casual 86.16

Permanent 770.35

Temporary 131.3

9%

13%

78%


Strengthening medical services at Charleville

The South West HHS is committed to delivering high-quality medical and other health services to Charleville and surrounding local communities.

In 2017-18, the South West HHS introduced three new doctors to Charleville, strengthening our medical services at Charleville, whilst working closely with our local partners to deliver sustainable health care to meet the current and future needs of the community.

New doctor Sonya Manwaring did a rotation in Charleville as a medical student in 2012, during the floods, and really enjoyed her time in the community; returning to serve the health needs of Charleville in 2018. Dr Manwaring is no stranger to the South West having spent a year working as a doctor at Dirranbandi and St George from early February 2016 to January 2017.

Since January 2017, Dr Manwaring has been working at Ipswich General Hospital as a Principal House Officer (Anaesthetics) and now brings this skill to the South West.

In March 2018, Charleville welcomed Dr Katie Chang and Dr Paul Chang who brought additional advanced medical skills in addition to their general practice experience – anaesthetics in the case of Katie and emergency medicine in the case of Paul. With a keen interest in Indigenous Health, both doctors have recently been working at Katherine Hospital in the Northern Territory and are no strangers to working in rural areas.

As with other towns in the South West, the doctors deliver GP services at the local GP practice – the Charleville Health Clinic – as well as delivering services at the hospital.



Celebrating staff excellence

Achievements, innovation and a commitment to building better health in the bush and performance excellence were recognised at the annual South West HHS Staff Excellence Awards.

These awards acknowledge the exceptional talent that exists within the South West HHS and recognises high performance, innovation and excellence. The 2017-18 Awards attracted more than 70 nominations across six categories. It is a privilege to be recognised and nominated by your colleagues, and the strong number of nominations is a clear indicator of the exceptional and dedicated staff we have delivering rural and remote healthcare.

Five of the award categories are based on our former values which included customer’s first, ideas into action, unleash potential, be courageous and empower people. The sixth category is the traditional Jim and Jill Baker award, presented to the employee or team who demonstrates excellence in their chosen field. Award winners received funding to pursue further education or professional development.

The winners were:

Customers first – appreciates the employee/team who are responsive and empathetic to clients’ needs; when challenges arise, takes responsibility and accountability to find solutions. Winner: Bridget Dickinson (Clinical Nurse – Charleville Hospital)

Ideas into action – recognises employee/team who embraces new and innovative methods of service delivery or leading edge clinical practice; identifies opportunities and develops and leads innovative solutions. Winner: Dr John Lancashire (Medical Superintendent – Mungindi Multipurpose Health Service)

Unleash potential – acknowledges the employee/team who consistently evaluates performance for improvement by evaluating work practices, seeks feedback, makes suggestions and acts on it. Winner: Dr John Lancashire (Medical Superintendent – Mungindi Multipurpose Health Service)

Empower people – aims to encourage the staff member that inspires participation; delegates responsibilities and accountabilities to the benefit of the development of the service; coaches and develops others. Winner: Christine McDougall (Service Director - Mental Health and Alcohol and Other Drugs Service)

Jim and Jill Baker – awarded to the employee/team who demonstrates excellence in their chosen field. Winner: Anna Cross (Nurse Unit Manager - Mitchell Multipurpose Health Service)



Record number of nurse graduates to join South West

A record number of new nurse and midwifery graduates started their careers with the South West HHS in February 2018.

The level of interest shown by new graduates in joining the health service is steadily growing and is reflective of the fact the South West HHS is an attractive area to pursue a career.

This is a tremendous effort for any rural health service and – along with our high retention rate (86 per cent for 2017 after completion of the 12-month graduate transition program) – shows how committed the health service is to helpingdevelop the rural nursing and midwifery workforce of the future, as well as expanding our permanent nursing and midwifery workforce.

The February graduates went to work at health facilities throughout the South West, including Roma, Charleville, Cunnamulla, St George, Dirranbandi, Mitchell, Surat, Quilpie, Mungindi and Augathella.

They are working in a variety of areas, including acute medical, surgical, maternity, emergency, aged care, community and primary health.

As a health service, we are committed to providing training opportunities for graduate nurses, who are such an important and valuable part of our team.



Promoting employee health and wellbeingDuring this past year South West HHS has continued to build a workplace culture and environment that understands the importance of workplace safety and supports employees across the organisation in their physical, emotional, social and financial wellbeing.

In 2017-18 strategies and activities were developed in alignment with the Queensland public sector Be healthy, be safe, be well framework for a more contemporary understanding of staff health, safety and wellbeing. A Healthy Lifestyles program where employees were encouraged to take control of their own health was launched throughout the health service with considerable staff participation in the organised events. This initiative was supported by site visits promoting the healthy lifestyles program, obtaining staff feedback and providing promotional material on work life blend.

Other achievements during the year included:

• Programs being developed to provide our people with theknowledge and skills needed to address mental healthand stress mastery in the workplace;

• Healthy Lifestyles communication boards (funded by QSuper) being established in all facilities;

• Completion of the 8 Week Steps Challenge which saw 180staff making up 45 four-person teams participating in thestep challenge walking a total of 65,147 kilometres;

• ‘My Health for Life’ health checks and employees wereprovided information around exercise, nutrition, Quit smoking, alcohol and other drugs and mental health;

• Pulse articles with information for staff and the provisionof healthy recipes via emails; and

• Provision of physical health checks.

Employee learning and developmentIn 2017-18 we focussed on the continual development of our employees, not only to ensure that they have the knowledge and skills that support best practice and quality health care, but also to enhance their personal growth, career satisfaction and innovation.

In keeping with best practice, our Workforce Development Unit implemented educational programs and emerging teaching strategies aimed at improving our employee’s professional competencies and collaborative practice to optimise patient safety.

One such program involved the adoption of insitu simulation-based training. Insitu training provides staff with a safe, structured learning in their local environment. This blending of learning and the work environment provides a unique multi professional method for continuing professional education.

Other important initiatives undertaken during the year were the Simulation Education Event Design (SEED) Program and the introduction of EDIE Virtual Reality Technology. Simulation Education Event Design development was provided by the Clinical Skills Development Service, Brisbane for education staff.

The course provided members of the Workforce Development Unit with the instructional design process of course development, practical tools and templates. It also allowed educators to enhance their skills and knowledge regarding the development of educationally sound simulation-based education as well as the opportunity to improve the quality of simulation training within the South West HHS.

EDIE uses virtual reality technology to give those working with people who have dementia the experience and greater understanding of the challenges faced by people living with dementia and their families.


Healthy lifestyles steps challenge

In teams of four, an amazing 180 staff took just over 81 million steps (a total of 65,147 kilometres) during the eight-week steps challenge which kicked off on 5 March 2018 and finished on 29 April 2018.

Whether they were pounding the pavement or grassy streets at the crack of dawn, circling the block during lunch breaks or hitting the walking tracks after work and on the weekend - South West HHS staff embraced the eight-week Steps Challenge with great gusto and cheer.

As a health service we continually encourage our communities to live a healthier lifestyle, and this challenge ensured we stepped up to the task. Many participants remarked on how much they enjoyed the experience and how they have felt the positive impact of increasing their daily steps in many aspects of their lives.

Increasing daily steps can help people lose weight, reduce the risk of heart disease and stroke, fend off diabetes by improving the body's ability to use insulin, walk away pain and stiffness from arthritis, keeps bones strong, improves sleep, builds strength and stamina, encourages mental functions and counteracts anger, depression and anxiety.

As well as the many health benefits, it was also a brilliant team bonding experience for participants, with teams forming great new habits together.

A special mention to the team with the highest recorded steps, The Green Team, who achieved 3.5 million steps (a total of 2,878 kilometres) during the challenge. Congratulations to Angie Gorry, Jodie Turvey, Katrina Coltzau and Laura McVey for this phenomenal achievement.

The EDIE experience explores a moment in time as Edie, a person living with dementia, faces difficulties undertaking simple activities of daily life.

Dementia Australia’s ‘Enabling EDIE Virtual Reality Technology’ arrived in Queensland in May 2018 and it was the South West HHS that experienced EDIE first.

Southern Queensland Rural HealthEstablished in late 2017, the Southern Queensland Rural Health (SQRH) is a collaboration between the University of Queensland, the University of Southern Queensland, Darling Downs HHS and South West HHS.

As a University Department of Rural Health, SQRH works with its partners, stakeholders and local communities to engage, educate and support nursing, midwifery and allied health students toward enriching careers in rural and remote health regions.

Workplace Health and SafetyThe Workplace Health and Safety team focussed on reducing health and safety risks in the workplace and promoting an environment to enable our employees to thrive. With the support of line managers and supervisors across all facilities the Workplace Health and Safety team

were assisted to meet health and wellbeing legislative compliance requirements. This is achieved by the continuation of the internal audit process as well as pro-active case management for WorkCover and QSuper claims.

In 2017-18 the Workplace Health and Safety team completed over 520 audits across all facilities including 225 audits completed on employer provided accommodation. There was a continued commitment to building strong working relationships with health and safety representatives, line managers and employees.

A total of 311 incidents were reported by staff for the past 12 months, and 117 of those related to Occupational Violence, either physical or verbal. Occupational Violence Prevention training continues to be delivered to staff through our ongoing agreement with Darling Downs HHS. A total of 126 staff were trained in early intervention and de-escalation during the year.

An external audit against AS/NZS 4801:2001 – Occupational health and safety management systems, was completed in early 2018. The outcome of the audit was that we received 24 conformances out of 25 audit criteria, with only one non-conformance relating to contractor management. The Safety and Wellbeing team were commended for their successful working relationship both within the team and with South West HHS staff.



Our leadership structureGood governance is fundamental to achieving performance excellence and continuous learning. Our leadership structure must be focused on meeting the needs of the community, future sustainability and always person-centred. Formal consultation and discussion commenced in June 2018 to ensure our health service is appropriately aligned to achieve the desired outcomes of our new Strategic Plan 2018-2022.

The leadership structure for 2017-18 is detailed below.


The BoardThe South West Hospital and Health Board (the Board) is the governing body of the South West HHS. A statutory body defined under the Hospital and Health Boards Act 2011 (Qld), the Board, comprised of eight members, was appointed by the Governor in Council, as recommended by the Minister for Health and Minister for Ambulance Services.

The Board is responsible for setting the strategic direction and providing oversight of the South West HHS. This is to ensure strategic objectives are met, quality healthcare services are provided, compliance and performance is monitored, financial performance is achieved, and effective systems are maintained and community engagement through meaningful consultation and collaboration is strengthened. The key focus is on patient-centred care and meeting the needs of the community in line with government health policies and directives and national standards.

The Board reports to the Minister for Health and Minister for Ambulance Services and must perform its functions and exercise its powers in accordance with any direction given by the Minister for Health and Minister for Ambulance Services subject to the provisions of the Hospital and Health Boards Act 2011 (Qld).

Section 19 of the Hospital and Health Boards Act 2011 (Qld) sets out the functions the Board must perform to ensure the delivery of hospital and health services is in accordance with the terms of the service agreement with the Department of Health. The Board has control of health service delivery and local decision making to ensure the needs of our communities are better able to be met and that its functions are exercised in the best interests of users of the public health sector service.

Our Board consists of eight independent members who bring a wealth of experience and knowledge in public, private and not-for-profit sectors, as well as a range of clinical, health and business experience. This professional skills-based board contributes to the governance of the South West HHS collectively as a Board through attendance at monthly meetings at various locations across the South West in line with the two-year rolling plan to hold Board meetings at every facility across South West Queensland.

During the reporting period, terms of office of five member expired on 17 May 2018 with all five members reappointed by the Governor in Council. These members were Ray Chandler, Fiona Gaske, Stewart Gordon, Dr John Scott and Karen Tully.

There is no doubt that Karen will provide leadership to the Board and support to the Board Chair.

Local Charleville resident Ms Karen Tully was appointed Deputy Board Chair of the South West Hospital and Health Board. Her appointment further strengthens the leadership and direction within the Board. With significant leadership and management skills and experience, particularly in the public sector, Ms Tully has spent her career bettering the lives of rural and remote Queenslanders.

Ms Tully currently is Chair of South West Rural Financial Counselling Service and the Director of South West Natural Resource Management. She is also the current Director of Mulga Solutions and was the former Deputy Chair of the Red Ridge Foundation. Prior to becoming the Mulga Solutions Director, Ms Tully was a school principal and deputy principal for more than 15 years.



About our Board MembersJIM McGOWAN, AM - CHAIRAppointed 18 May 2017. Current term 18 May 2017 to 17 May 2019.

Mr Jim McGowan, AM was appointed Chair of the South West Hospital and Health Board on 18 May 2017. Jim has significant high level public administration experience, specialising in the areas of governance, accountability, service delivery improvement and performance management. With strong leadership skills, and a history of achievement Mr McGowan is focused on overseeing the delivery of exceptional health care to the communities of the South West.

Jim is a former Director-General of the Department of Community Safety, Department of Emergency Services and Justice and Attorney General; led the Taskforce on Occupational Violence for Queensland’s Hospital and Health Services which reported in June 2016; and currently Adjunct Professor, School of Government and International Relations at Griffith University.

On Australia Day, 2012, Jim was made a member of the Order of Australia (AM) ‘for service to public administration in Queensland through the development and implementation of public sector management and training reforms and to improved service delivery’.

Jim holds a Bachelor of Economics, University of Queensland; and a Diploma of Education, University of Queensland.

KAREN RIETHMULLER TULLY – DEPUTY CHAIRAppointed 18 May 2017. Current term 18 May 2018 to 17 May 2021.

Ms Karen Riethmuller Tully is a self-employed advocacy, facilitation, leadership and governance expert based in Charleville. With substantial directorship experience, and a background in education, Karen is skilful in strategic planning and brings her ability of future thinking to the South West Hospital and Health Board.

Karen understands the distinct lifestyle that living and working in a rural community offers, and has always been keen to provide her skills, energy and direction to add value to rural communities. Karen is currently Chair of the South West Rural Financial Counselling Service, which provides free, impartial, confidential and responsive rural financial counselling services across Southern Queensland.

Karen also holds a directorship with South West Natural Resource Management, a community-based organisation which is the designated regional body for natural resource management in South West Queensland.

Karen holds a Bachelor of Education, Master of Education, Graduate Diploma of Financial Markets, Certificate IV in Business (Governance), Certificate IV in Training and

Assessment, Queensland Leadership Program Graduate, Australian Institute Company Directors (AICD) Company Directors Course and Company Chairman’s Course and is a Justice of the Peace.

CLAIRE ALEXANDER Appointed 26 June 2015. Current term 18 May 2016 to 17 May 2019.

Ms Claire Alexander is a highly experienced, analytical and strategic professional in the specialist field of strategic financial management, in both public and private sectors. Claire is a certified practising accountant (CPA) and brings extensive knowledge in accounting principles and Australian Accounting standards to the South West Hospital and Health Board.

Claire graduated from Griffith University in 1995 with a Bachelor of Business – Accounting, and received a Masters of Business Administration from the University of New England in 2004. Claire was also awarded a Public Practice Certificate CPA Australia in 2012.

Claire has worked extensively with company and organisational boards, chief executive officers and audit committees applying her skills and knowledge to streamline budget preparation processes, producing long-term financial models including projecting future revenue flows and financial positions and preparing annual financial statements.

With the experience of a diverse career geographically, starting in Noosa in 2000 and providing services throughout Queensland as a financial consultant for Cook, Murweh, Boulia, Bulloo, Quilpie, Paroo and Georgetown Shire Councils, Claire brings a great understanding of financial management in regional areas.

Currently Claire is contracted to Maranoa Regional Council, Murweh and Paroo Shire Councils as a Strategic Financial Consultant.

RAY CHANDLER Appointed 18 May 2017. Current term 18 May 2018 to 17 May 2020.

Mr Ray Chandler has over 29 years’ experience in executive, corporate services, finance, human resource, infrastructure, project and operations management roles in the private and public sectors; with 21 of those years in Queensland Health. Ray’s health service delivery knowledge at both the strategic and operational level will prove invaluable to the South West Hospital and Health Board and the future direction of the health service.

Ray is currently the General Services Manager (Facilities Management) of Medirest at the Lady Cilento Children’s Hospital. Medirest provides specialist food, hospitality and support services in hospitals. Ray has been instrumental in the planning, preparation and transition to provide this service to the single specialist children’s hospital for the state.


As an experienced public health executive, Ray has previously worked for the West Moreton Health Service District. In a number of executive director roles, he led financial turnarounds across the District resulting in significant recurrent savings.

Ray holds Master of Public Sector Management, Griffith University, Bachelor of Business (Acctg), Queensland University of Technology, AICD Company Directors Course (Order of Merit Award), October 2012, CPA Program, CPA Australia, 2006.

FIONA GASKEAppointed 18 May 2014. Current term 18 May 2018 to 17 May 2021.

Ms Fiona Gaske is Deputy Mayor for Balonne Shire Council, an active member of the St George community and a highly-experienced Speech Pathologist. Fiona brings her passion and advocacy for public health services in rural and remote communities to the South West Hospital and Health Board.

Fiona was elected as a Councillor for Balonne Shire Council in 2012 and was re-elected in 2016 as Deputy Mayor. Fiona maintains a diverse range of portfolios including economic development, public health, asset management, disaster management and arts and culture, as well as chairing several committees including information communication technology and parks and gardens. Fiona also sits on the Boards of the South West Regional Economic Development Association and Regional Development Australia Darling Downs and South West.

Commencing her career in the health field as a Speech Pathologist in 2004 and working in the St George Primary Health Care Unit from 2008 until 2013, Fiona is a highly experienced rural generalist practitioner.

Fiona’s leadership and networking skills were most recently acknowledged having been chosen for the Australian Rural Leadership Program.

Fiona holds a Master of Speech Pathology Studies and a Bachelor of Music and is a Graduate of the AICD.

STEWART GORDON Appointed 18 May 2017. Current term 18 May 2018 to 17 May 2020.

Mr Stewart Gordon is a workplace lawyer and has 15 years’ experience in senior management and executive director roles. Stewart brings substantial knowledge of health in the South West, having formerly been a District Manager of the former Roma Health Service District, South West Health Service District and an Executive Director of Rural Health with the Darling Downs West Moreton Health Service District.

Stewart is a practising lawyer with Anderson Gray Lawyers, working primarily in employment law. He has strong advocacy and drafting skills, with the ability to achieve

successful results in an often-difficult field. With strong attention to detail and a personable nature Stewart can calmly and respectfully guide clients with his sound knowledge of employment and industrial law.

Stewart holds a Graduate Diploma in Legal Practice, The College of Laws, Bachelor of Laws, University of Southern Queensland and Bachelor of Business (Marketing and Human Resource Management), University of Southern Queensland.

HEATHER HALL Appointed 27 July 2012. Current term 18 May 2017 to 17 May 2019.

Heather has had extensive experience working in the healthcare sector for community and government organisations in Western Queensland. Her innovative healthcare management skills and experience in regional settings has been developed over the past 25 years.

Working in community healthcare, nursing and currently being the Manager of the My Health Record Expansion Program for the Western Queensland Primary Health Network has allowed Heather to develop knowledge, skills and networks across Western Queensland.

Prior to this Heather was the Services Manager for Anglicare SQ Rural and Remote Services.

Previously she worked as a clinical nurse and acting clinical nurse coordinator at Roma Hospital, and as a community nurse for Blue Care in Roma.

Heather holds a Bachelor of Health Science in Nursing, Advanced Diploma of Business Management, Certificate of Palliative Care, APHRA registration as a general nurse, and a Graduate Diploma in Business Management. She also holds memberships of the AICD, Member of the Australian College of Nursing and is also Associate Fellow of the Australasian College of Health services Managers.

DR JOHN SCOTTAppointed 18 May 2014. Current term 18 May 2018 to 17 May 2020.

Dr John Scott is a Brisbane-based doctor who has worked as a general practitioner, in managerial roles and for a short time as a tertiary educator. He brings a wealth of medical, managerial and fiscal skills and experience to the South West Hospital and Health Board.

John has worked in health service redesign as a Senior Medical Advisor, Queensland Country Practice from 2014 to 2018. Previously John worked as a locum in general practice in mostly rural and remote locations from 2008 to 2014, and because of his experience is acutely aware of the challenges and opportunities of delivering health care in South West Queensland.

John brings a great understanding of the Queensland Health system, having held senior roles with Queensland Health, including Senior Executive Director of Health Services and State Manager of Public Health Services.


John holds an MBBS, a Bachelor of Economics, a Master of Applied Epidemiology, and Fellowships of the Royal Australian College of General Practitioners and the Faculty of Public Health Medicine of the Royal Australian College of Physicians.

Board attendanceThe Board meets monthly, except for in December and rotates its meetings around areas of the South West. During

the 2017-18 year there were 12 Board Meetings held at Mitchell, Charleville, Roma, Morven/Augathella and St George. There was 1 extraordinary Board Meeting which was held by teleconference. The Chief Executive attends all board meetings, with other Executive Leadership Team members attending segments of the meetings as required.

The following table summarises the attendance of Board members at Board meetings and prescribed committee meetings, which was exemplary:

Board Member Jim McGowan

Claire Alexander

Ray Chandler

Fiona Gaske

Karen Tully

Stewart Gordon

Heather Hall

Dr John Scott

Board 12/12 11/12 11/12 10/12 11/12 10/12 11/12 11/12

Executive 19/19 17/19 14/19* 18/19 18/19

Finance 4/4 4/4 4/4

Audit and Risk 5/5 5/5 5/5 5/5

Safety and Quality 5/5 5/5 4/5 5/5

*Appointed to Executive Committee commencing 11 September 2017.

Our board committeesUnder the Hospital and Health Boards Act 2011 (Qld) the Board has established those committees prescribed and may, from time to time, establish such other committees as it considers necessary to assist in carrying out its functions.

The committees support the Board in its functions and individual Board members contribute to the governance of the South West HHS by participating in or chairing the various committees of the Board. The role of committees is to advise and make recommendations to the Board about matters, within the scope of the Board’s functions, referred by the Board to the Committee.

The committee structure contributes to the efficient and effective governance of the South West HHS and assists the Board in discharging its responsibilities through transparency of decision making and management of risk.

All committees of the Board operate in accordance with their approved terms of reference. Each committee is required to report to the Board through its minutes and may make recommendations and provide advice to the Board. The Board, at its meetings deliberates and discusses the committee minutes that are introduced by the Committee Chair.

The following committees have been established by South West Hospital and Health Board and continue to operate:

• Audit and Risk Committee;• Executive Committee; • Finance Committee; and• Safety and Quality Committee.

AUDIT AND RISK COMMITTEEChair: Karen TullyMembers: Jim McGowan, Stewart Gordon and Heather Hall

The purpose of the Audit and Risk Committee is to assist the Board in fulfilling its oversight responsibilities and to provide independent assurance to the Board on audit and risk matters.

In accordance with the Act it is responsible for assessing the integrity of the financial statements; monitoring compliance with legal and regulatory requirements; performance of the internal audit function; monitoring compliance with internal control structures and risk management systems and external accountability responsibilities as prescribed in the Financial Accountability Act 2009 (Qld), Auditor-General Act 2009 (Qld), Financial Accountability Regulation 2009 (Qld) and Financial and Performance Management Standard 2009 (Qld).

The Audit and Risk Committee has observed the terms of its charter and has had due regard to Treasury’s Audit Committee Guidelines throughout the year.

EXECUTIVE COMMITTEEChair: Jim McGowanMembers: Fiona Gaske, Heather Hall, Dr John Scott and Karen Tully

The purpose of the Executive Committee is to support the Board with its governance responsibilities and make recommendations to the Board. This is achieved by overseeing the strategic planning, strategic non-clinical matters and engagement strategies of the South West HHS and working


with the Health Service Chief Executive to progress the delivery of strategic objectives and by strengthening the relationship between the Board and the Chief Executive to ensure accountability in the delivery of services.

The Executive Committee also assists the Board by monitoring the performance of South West HHS having regard to the Strategic Plan objectives, performance measures stated in the Service Agreement, progress and measures in protocols with primary healthcare organisations and engagement strategies.

FINANCE COMMITTEE Chair: Claire AlexanderMembers: Ray Chandler, Heather Hall and Karen Tully

The purpose of the Finance Committee is to advise the Board on matters pertaining to the financial performance of the South West HHS. This is achieved by providing oversight, setting the strategic financial direction, monitoring financial sustainability, financial frameworks, and financial compliance improvements; assessing financial risks and making any recommendations to the Board.

Our Finance Committee has a focus on assessing our budgets, ensuring they are consistent with the objectives of the Health Service, monitoring our cashflow having regard to revenue and expenditure and continually monitoring the adequacy of our financial systems pursuant to the obligations of the Financial Accountability Act 2009 (Qld).

The Finance Committee makes recommendations to the Board regarding our financial performance, financial commitments, budget principles and financial policy. It actively identifies and monitors financial risks or concerns that may impact on the financial performance and reporting obligations of our health service. The committee has assisted the Board to exercise its financial governance throughout the year.

SAFETY AND QUALITY COMMITTEEChair: Fiona GaskeMembers: Ray Chandler, Stewart Gordon and Dr John Scott

The purpose of the Safety and Quality Committee is to advise the Board on matters pertaining to the appropriateness, quality, effectiveness and safety of health services provided by the South West HHS. This is achieved by providing oversight, setting the strategic safety and quality direction; monitoring safety and quality governance arrangements; collaborating with other safety and quality committees, the department and quality assurance committees; promoting safety and quality, education, a culture of compliance and the continuous improvement of patient care.

The focus of the Safety and Quality Committee and indeed the health service is always on minimising preventable harm and ensuring robust systems are in place to reduce unjustifiable variation in clinical care, with the core outcome being an optimal health care experience for both patient, carers and families. The Safety and Quality Committee monitors performance through a quarterly Safety and Quality Report which identifies key performance indicators.

The committee has assisted the Board to exercise its clinical governance responsibility throughout the year.

Board remuneration The Governor in Council approves the remuneration arrangements for the Board Chair, Deputy Chair and Board Members. The annual fees paid by the South West HHS are consistent with the remuneration procedures for part-time chairs and members of Queensland Government bodies, namely $68,243 for the Chair and $35,055 for the Deputy Chair and Members. In accordance with this government procedure, annual fees are paid per statutory committee membership ($2,000) or committee chair role ($2,500).

Several board members were reimbursed for out of pocket expenses during 2017-18. The total value reimbursed was $18,681.

I would like to commend the Roma Hospital Staff in

all areas for the exceptional care and treatment given to

Mervyn during his admission in November 2017.

We are very fortunate to have such wonderful staff in

a small community. ”

“


An allied health led fracture clinic

Evaluations for the Roma Hospital Allied Health led Fracture Clinic to date have reported positive impacts on patient care through improved access, efficiency, workforce productivity and patient experience. Based on the evidence generated in Roma, this service is planned to be accessible across the South West HHS in the future.

For residents of rural and remote communities who fracture a bone, access to orthopaedic specialist assessment and follow up is limited. The process of management usually involves driving and waiting. Driving and waiting at their local ED for initial management; days later at their local fracture clinic and/or undergoing a long painful drive to their nearest tertiary facility.

The nature of common occupational tasks in rural areas (i.e. manual or farming) means that successful rehabilitation of these injuries is imperative to ensure the productivity and well-being of this population.

A recent study has evaluated the implementation of the Transdisciplinary Allied health delivered Fracture Follow-up Clinic (TRAFFIC) in which allied health staff worked in an advanced scope of practice role to deliver fracture clinic follow up care. This was provided under the clinical guidance of an external orthopaedic consultant (20 minutes / week case review meeting). Comparison of service efficiencies between the traditional model and TRAFFIC was conducted over a 17-week period.

Prior to TRAFFIC 72% of patients were lost to follow-up after leaving ED. With the TRAFFIC, this was reduced to only 6%. The TRAFFIC model has led to a significant reduction in demand for local medical officer involvement in follow up fracture care (100% to 6%), without any loss in fracture healing or functional recovery.

The establishment of allied health clinicians as care providers in fracture clinic means there is reduced delay to access therapy (see table below) and improved continuity of care between acute services and outpatient departments; preventing unnecessary appointments for patients. Other benefits included:

• improved access to orthopaedic consultant level fracture management and timely specialist allied health rehabilitation services closer to home reducing the need for patient and families to travel; and

• high patient satisfaction; 95% of patients seen were satisfied or very satisfied with their review appointments. Staff also provided positive feedback.

These findings highlight a safe and efficient fracture clinic model of providing ongoing fracture care in rural context.


DATA 17 weeks

Clinical expertise

Patients seen

Time to fracture clinic /follow up care

Appt. type

Clinical management Referrals

Before TRAFFIC

Local medical officer

54 (72% confirmed Fracture)

> 10 days on average Face to face only Casting only

No coordinated system of referral management

After TRAFFIC

Orthopaedic surgeon + Trained AH

52 (100% confirmed Fracture)

All seen in < 7 days 7 days max.

Face to face, Phone

Splints, moonboots, mobilisation techniques

GPs, ED, other hospitals

Study Authors: Hannah Christensen, Senior Physiotherapist, South West HHS, Dr Petra Cornwell, Allied Health Research Collaborative, The Prince Charles Hospital; and Menzies Health Institute Queensland, Griffith University Dr Elizabeth Ward, Centre for Functioning and Health Research, Metro South HHS; and The University of Queensland.



New doctors for Surat and St George

‘I grew up in a small town where it was always difficult finding a permanent doctor. That’s why I went into medicine. I always wanted to be the permanent doctor in a small country community’ – Dr Trigger.

Dr Talia Trigger joined the Surat Multipurpose Health Service in early April, and Dr Ashleigh Walker arrived in St George in May, with the aim of building upon the existing medical services in the two towns.

Dr Trigger, from her base at Surat, is delivering a permanent outreach medical service to Surat Multipurpose Health Service for two weeks each month and working at Roma Hospital for the other fortnight. Regular visiting locum Dr Graham Michael continues to deliver his existing service to Surat as normal during the time when Dr Trigger is at Roma.

Dr Trigger has advanced skills in emergency medicine that are of great benefit to the local community. Dr Trigger is no stranger to country areas, having grown up on a cattle property at Biggenden in the Wide Bay area.

Dr Walker’s appointment at St George expands the medical establishment in the town from four senior doctors to five. The increase in the number of doctors at St George will help meet local demand for services, both at the hospital and at the local bulk-billing general practice – the St George Medical Centre – where they also work when not delivering services at the hospital.

In addition to her general practice experience, Dr Walker has advanced skills in obstetrics which will help further support the provision of the low-risk birthing services at St George. Dr Walker will also expand the capacity of St George Hospital and Medical Centre to provide supervision and training for junior doctors undertaking placements in the town.

This is a great way of introducing the future generation of doctors to the benefits and advantages of working in rural practice. Once these young doctors complete their training, they may well be much more inclined to consider coming back and continuing their careers with the South West HHS in the future.

Dr Talia Trigger

Dr Ashley Walker


Our Executive Leadership TeamLeadership renewalThe South West HHS Executive Leadership underwent a process of renewal in 2017-18, with the Board fostering a time of reinvigoration, energy and innovation. The Board has promoted an environment of recruiting for excellence and succession planning for key leadership roles.

Outgoing Health Service Chief Executive, Ms Glynis Schultz achieved significant milestones in her four years; securing the funding for the construction of Roma Hospital, establishing an integrated model of care at Cunnamulla and developing the HOPE project. We thank Ms Schultz, and our other outgoing Executive Directors; Mr Craig Walker, Executive Director Finance and Business Services and Mr Josh Freeman, Executive Director for Community and Allied Health for their contribution to health and the communities we serve in South West Queensland.

On 22 March 2018, the Board announced the appointment of Ms Linda Patat, as Health Service Chief Executive. Ms Patat had been acting as Chief Executive from 30 October 2017 until 1 April 2018 and is an accomplished senior executive with a strong background in delivering quality healthcare in both regional and metropolitan settings across Queensland.

Ms Patat is qualified as a Registered Nurse and an Associate Fellow of the Australasian College of Health Service Management and is particularly committed to regional and rural healthcare. Her passion for improving health services in rural and remote centres is obvious to all, as is her empathy and compassion for the people who need our services.

Leading to better health in the bush Our Executive Leadership Team is responsible for governance excellence, ensuring that there are correct systems and processes in place to maximise the organisational performance of the South West HHS. The Health Service Chief Executive is responsible for the day-to-day management of the health service and for operationalising the Board’s strategic objectives.

To guide the operation of the organisation, a strategic level committee system has been implemented. Each committee has terms of reference clearly describing their respective

purpose, functions and authority. These committees, known as Tier 1 committees are all chaired by an Executive Leadership Team member who has the appropriate sub delegation relevant to the function and purpose of the committee.

Our Tier 1 committees meet monthly and provide governance, leadership, management and an essential integration and uniformity of approach to health service planning, patient safety and quality, continuous improvement, resource management, cultural capability, and performance management and reporting and include:

• Executive Planning and Performance Committee • Executive Business Improvement Committee • Executive Finance, Activity and Infrastructure Committee • Executive Safety and Quality Committee • Executive Workforce Committee• Executive Digital Transformation Committee • Aboriginal and Torres Strait Islander Local Advisory Council • Clinical Advisory Council

The Executive Leadership Team as at 30 June 2018 comprises:

Health Service Chief Executive Linda Patat

Acting Chief Operations Officer Linda Patat

Acting Executive Director Finance and Business Services Rod Margetts

Director People and Culture Rob Mander

Executive Director Medical Services Dr Chris Buck

Executive Director Nursing and Midwifery Chris Small

Acting Executive Director of Community and Allied Health Wendy Jensen

Detailed Executive Leadership Team biographies can be found at: http://www.southwest.health.qld.gov.au/about-us/our-executive-leadership-team/


http://www.southwest.health.qld.gov.au/about-us/our-executive-leadership-team/

http://www.southwest.health.qld.gov.au/about-us/our-executive-leadership-team/

Managing our risk The South West HHS takes a balanced approach to risk management to ensure systematic identification, analysis, recording and reporting of risks and opportunities important to the achievement of our strategic objectives.

In November 2017, the Board reviewed the Risk Appetite, Strategic Plan and Strategic Risk Register to provide guidance to the Executive Leadership Team on the effective management of risk within tolerances. The revised strategic risks include:

Workforce: The capacity and capability of the workforce could limit our ability to meet service needs.

Policy: Policy changes at Federal / State level are magnified at local levels in rural areas and have the potential to disrupt health service planning and delivery.

Financial: The changing funding environment may impact on the financial sustainability of the service.

Infrastructure: Ageing buildings and equipment constrain the delivery of contemporary models of care.

Information Communication and Technology: Inadequate ICT infrastructure impacts on our ability to keep pace with

digital innovations to deliver health services to rural and remote communities.

Health status: Low levels of health literacy and the burden of disease across a dispersed population, especially in Aboriginal and Torres Strait Islander and other vulnerable population groups, contribute to poor outcomes.

Sole service provider: Withdrawal of service by other service providers escalates demands on South West HHS to avoid interruption and /or cessation of services in local communities.

In February 2018, a newly developed Risk Management Policy, Risk Management Procedure and revised Risk Analysis Matrix was prepared to align with the Board’s most recent Risk Appetite Statement. Robust management of organisational risk is essential for good governance and to effectively meet the needs of our communities in alignment with our strategic plan and Board risk appetite. We are committed to creating a culture where our employees manage the risks they can manage, and report and escalate those that they cannot.

With a consistent risk management process across the South West HHS, risk is now considered when undertaking formal decision-making processes, planning, budgeting, programs and projects.

Youth health a focus for St George community leaders

Focusing on young people’s health now will lead to greater efficiencies in the long term and, the South West HHS and Balonne Shire Council teamed up in February 2018 to discuss a range of issues including drug and alcohol abuse impacting on young people in the St George area.

All community stakeholders directly involved in the provision of young services for young people were invited to this critical information sharing forum. Health service providers and other organisations with a direct interest in the health issues affecting young people in St George, the Royal Flying Doctor Service (RFDS), Goondir, Western Queensland Primary Health Network (PHN), Queensland Police Service, Queensland Ambulance Service, St George

State High and Primary School, St Patrick’s School, Department of Communities, National Disability Insurance Scheme Local Area Co-ordinator / Provider all provided a valuable insight to enhancing health outcomes for our youth.

The forum was a remarkable success, with organisations committing to the objective of avoiding any unnecessary and unknown duplication of services and to identify any service gaps.

Sharing resources, communicating more effectively and integrating service provision will enable more effective service delivery and will benefit the St George community and particularly its young people into the future.



Internal auditThe South West HHS has an internal audit function to facilitate the maintenance and development of a strong internal control environment; which conducts scheduled reviews of prioritised risk areas and key activities. For the year end 30 June 2018, this function was undertaken using an outsourced model, with the engagement of an accounting firm with specialised internal audit experience.

The Board has an approved Internal Audit Charter, which is reviewed annually and in accordance with the Institute of Internal Auditors Professional Practices Framework. The Internal Audit Charter identifies the functional and organisational framework within which the internal audit function operates. It details how it ensures independence and objectivity by reporting functionally to the Chief Executive and having a direct reporting line to the Audit and Risk Committee. The Internal Audit function is independent of management and the external auditors.

An Annual Internal Audit Plan is developed taking into consideration the risk profile of our organisation and was designed to add value and enhance our operations. The Annual Internal Audit Plan is approved by the Executive Leadership Team, Audit and Risk Committee and Board at the start of each financial year. The identified priority areas for 2017-18 included:

• Infrastructure and maintenance activities;

• Procurement decision making;

• Project management; and

• Clinical Governance Framework.

As agreed by the Audit and Risk Committee and ratified by the Board, the following Internal Audits were postponed:

• Quarter 3 - Medical and nursing professional development leave – Postponement; and

• Quarter 4 – Business continuity planning – Postponement.

All audit reports are presented to the relevant operational manager for management responses and then submitted to the Chief Executive and Audit and Risk Committee. Internal Audit follows-up implementation of all review recommendations, and presents updates on implementation to senior management, the Chief Executive and the Audit and Risk Committee.

Visit from Auditor-GeneralAt the May 2018 Board Meeting, Mr Brendan Worrall, Auditor-General and Mr Poopalasingam Brahman, Assistant Auditor-General addressed the Board as part of their client engagement process. It was an opportunity to hear about the organisation, its concerns and how things may be improved.

The Board welcomed the visit, and the information shared and is committed to ensuring the highest of integrity, transparency and accuracy when liaising with the Auditor-General.

External scrutinyThe South West HHS’s operations are subject to regular scrutiny from external oversight bodies. These include, but are not limited to:

• Australian Council on Healthcare Standards (ACHS);

• Australian Health Practitioner Regulation Authority;

• Consumer feedback;

• Coronial investigations;

• Crime and Corruption Commission (Queensland);

• Division of Workplace Health and Safety;

• Medical Colleges;

• National Association of Testing Authorities Australia;

• Office of the Health Ombudsman;

• Patient feedback;

• Population Health;

• Public Service Commission;

• Queensland Audit Office;

• Queensland Ombudsman; and

• Queensland Prevocational Medical Accreditation.

Consumer feedback As a patient, a resident or carer, a visitor, or a friend or family member, we encourage you to share your experiences. If the feedback is positive, it helps us to make sure that we do that more often to help others as well, and if it is not such positive feedback, it allows us to quickly try and resolve the issue.


In 2017-18, we received 209 compliments, with most compliments relating to humanness/caring, professional conduct and treatment. All compliments were shared with individual staff and clinical teams mentioned.

The number of complaints received was 114, a slight increase from 98 in 2016-17. Of the 114 complaints received 8 complaints were anonymous. The South West HHS considers that all complaints involve taking action even if the complaint involves an apology. With anonymous complaints the action is that these are noted by the relevant areas and further action taken if required.

Feedback helps to shape service delivery and provides an opportunity for us to review our practices and make enhancements where necessary. We thank everyone who took the time to provide feedback in 2017-18.

Queensland Audit Office In 2017-18, the Queensland Audit Office (QAO) conducted cross-service audits which included coverage of our health service. Those relevant to our hospital and health service were:

• Report 2: 2017-18 Managing the mental health of Queensland Police employees;

• Report 7: 2017-18 Health: 2016-17 results of financial audits;

• Report 11: 2017-18 Queensland state government: 2016-17 results of financial audits; and

• Report 14: 2017-18 The National Disability Insurance Scheme.

The South West HHS considered the findings and recommendations contained in these reports and, where appropriate, has commenced acting to implement recommendations or address issues raised.

Community Advisory Network influences health service delivery

The South West HHS partnered with screening provider MeasureUp to introduce the new Bone Dexa Screening Clinics in Mitchell and Injune in March 2018, following requests for the service from dedicated members of the Community Advisory Network.

A simple bone density scan helped Mitchell and Injune residents detect osteoporosis, a chronic disease which causes bones to become brittle, increasing the risk of fractures. Our Community Advisory Networks are volunteer groups which provide consultation and feedback on the planning, development and delivery of health services for their local community. This service is a fitting example of the value and influence our Community Advisory Networks provide.

Bulk-billed screening was offered to those with a referral from their general practitioner (GP) aged over 70-years and patients of all ages with certain health conditions. Other patients interested in attending the clinic were able to attend with a GP referral and were required to pay an upfront cost to the partner organisation conducting the screening.

The scan was a quick, easy and painless opportunity to detect a common condition. Appointments took only 10

minutes and was operated by our partner organisation which brings a mobile laboratory to the medical centres. The earlier osteoporosis is detected, the better we can assist patients with their bone health and prevent fractures from occurring in the future.

Using x-ray technology, the scans measure the density of bones in certain places, usually at the hip and spine, and help estimate the chance of breaking a bone. The clinics had been developed in response to enquiries from Community Advisory Network members passionate about the early detection of the disease. The benefit to these communities will be long lasting, as those who attend the clinics will receive follow-up appointments to ensure continuity of care.



Information systems and record keepingRight to Information Our Health Service values the right of people to access their personal information, as well as to access information about our operations that will give them a better understanding of the decisions we make. We are working to make it easier to access information about our services, finances, policies, registers and lists, as well as information released through Right to Information requests.

The Right to Information Act 2009 (Qld) is a mechanism by which the public may apply for administrative, financial, personnel documents not normally available to them.

For further information about applying, please follow the following link: https://www.health.qld.gov.au/system-governance/contact-us/access-info/rti-application

Whilst your medical record is the property of the South West HHS, you can access your information under the provisions of the Information Privacy Act 2009 (Qld).

For further information about privacy and confidentiality, or to access your information, please follow the following link: https://www.health.qld.gov.au/system-governance/contact-us/access-info/privacy-contacts#sw

Public interest disclosure In accordance with section 160 of the Hospital and Health Boards Act 2011, the health service is required to include a statement in its Annual Report detailing the disclosure of confidential information in the public interest. There were no disclosures under the provision during 2017-2018.

PrivacyPersonal information has and will continue to have a tremendous impact on our society. The South West HHS recognises that the value of data and the need to protect it will continue to grow.

We are committed to protecting the privacy of our clients and staff, which includes meeting the challenge of cybersecurity and personal data protection in a digital world.

We adhere to the National Privacy Principles contained in the Information Privacy Act 2009 (Qld) (IP Act) when

managing personal information. Our Privacy Policy outlines how we meet our obligations under the IP Act. At South West HHS we are moving beyond merely complying with the IP Act and instead embedding good privacy practices into our culture.

Records management The South West HHS creates, receives and keeps clinical and business records to support legal, community, and stakeholder requirements. Business and clinical records exist in physical and digital formats.

In late June 2018, the Queensland State Archivist released the Records Governance Policy.

This new policy was developed following a review of the existing Information Standards IS31 Retention and Disposal of Public Records and IS40 Recordkeeping and included widespread consultation with all public authorities. The policy is released under the Queensland Government Chief Information Office (QGCIO) Queensland Government Enterprise Architecture (QGEA) and is applicable to all public authorities covered by the Public Records Act 2002 (Qld).

The Records Governance Policy provides a more flexible and simplified approach to records and information management recognising the diversity of Queensland Government public authorities.

The fit-for-purpose policy comprises of six key requirements which replaces the combined nine principles of the previous Information Standards:

• Agencies must ensure records management is supported at all levels of the business;

• Agencies must systematically manage records using governance practices that are integrated and consistent with broader agency frameworks;

• Agencies must create complete and reliable records;

• Agencies must actively manage permanent, high-value and high-risk records and information as a priority;

• Agencies must make records discoverable and accessible for use and re-use; and

• Agencies must dispose of records in a planned and authorised way.


https://www.health.qld.gov.au/system-governance/contact-us/access-info/rti-application

https://www.health.qld.gov.au/system-governance/contact-us/access-info/rti-application

https://www.health.qld.gov.au/system-governance/contact-us/access-info/privacy-contacts#sw

https://www.health.qld.gov.au/system-governance/contact-us/access-info/privacy-contacts#sw

The South West HHS is committed to implementing the Records Governance Policy to improve efficiency and enhance our approach to records and information management and transform records management from an operational function to a strategic enabler.

Clinical recordsSystems are in place to ensure paper records are appropriately stored, secured from unauthorised access and protected from environmental threats. In addition, Health Information Services now have procedures and work instructions in place that ensure compliance with the Health Sector (Clinical Records) Retention and Disposal Schedule, QDAN 683 Version 1.

Improving diagnostics in our smaller communities

In 2017-18 we implemented a program to give local doctors improved emergency access tools, with a specific focus on our smaller communities.

Cunnamulla, Mungindi, Mitchell and Injune Multipurpose Health Services now have ultrasound machines to assist local doctors in gauging the extent of injuries and other trauma in a patient. This service-wide program is set to be extended to other small facilities in the South West that have doctors on site.

The information obtained from using the ultrasound will help our doctors decide whether the patient can continue to be treated locally or whether they require transfer to a larger centre within the South West or outside our region.

All rural and emergency doctors, along with anaesthetists,

nowadays receive basic training in the use of ultrasound equipment for emergency assessment of patients and it makes sense to have this equipment available for them to use.

Using ultrasound equipment for emergency assessment is not the same as using it for detailed diagnostic purposes, such as ultrasounds to investigate organ or tissue functions. However, the machines we are introducing can be used for the full range of assessment and diagnostic functions if required.

Using technology, we can now upload imagery from the ultrasounds electronically to send to diagnostic specialists at a larger facility within the South West or further afield for further interpretation and analysis that can then be fed back to the treating doctor on-site.



Financial StatementsSouth West Hospital and Health Service

Financial Statements – 30 June 2018



Contents

30 June 2018

1

Contents

Statement of Comprehensive Income

Statement of Financial Position

Statement of Changes in Equity

Statement of Cash Flows

Notes to the Financial Statements

Management Certificate

Independent Auditor's Report

General Information

These financial statements cover the South West Hospital and Health Service (South West HHS).

The South West Hospital Health Service was established on 1 July 2012 as a statutory body under the Hospital and Health Boards Act 2011.

The Hospital and Health Service is controlled by the State of Queensland which is the ultimate parent.

The head office and principal place of business of South West HHS is:

44-46 Bungil Street Roma QLD 4455

For information in relation to the Hospital and Health Service's financial statements please visit the website www.health.qld.gov.au/southwest/ .


Contents

30 June 2018

1

Contents





Notes to the Financial Statements

Management Certificate

Independent Auditor's Report

General Information

These financial statements cover the South West Hospital and Health Service (South West HHS).

The South West Hospital Health Service was established on 1 July 2012 as a statutory body under the Hospital and Health Boards Act 2011.

The Hospital and Health Service is controlled by the State of Queensland which is the ultimate parent.

The head office and principal place of business of South West HHS is:

44-46 Bungil Street Roma QLD 4455

For information in relation to the Hospital and Health Service's financial statements please visit the website www.health.qld.gov.au/southwest/ .

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Contents30 June 2018




For the year ended 30 June 2018

The accompanying notes form part of these statements. 2

Note 2018 2017

$'000 $'000

Revenue

User charges 2 11,509 10,290

Public health services funding 3 130,114 122,372

Grants and other contributions 4 8,529 7,174

Other revenue 5 882 1,156

Total revenue 151,034 140,992

Expenses

Employee expenses 6 8,287 9,565

Health service employee expenses 7 81,602 74,876

Supplies and services 10 51,111 46,746

Depreciation and amortisation 6,466 6,314

Revaluation increment/decrement 11 1,418 -

Other expenses 12 3,286 1,891

Total expenses 152,170 139,392

Operating result (1,136) 1,600

Other comprehensive income

Items that will not be reclassified subsequently to operating result

Increase/(decrease) in asset revaluation surplus 17 61,502 29

Other comprehensive income for the year 61,502 29

Total comprehensive income for the year 60,366 1,629





Note 2018 2017

$'000 $'000

Revenue

User charges 2 11,509 10,290





Expenses















Statement of Comprehensive IncomeFor the year ended 30 June 2018




As at 30 June 2018


Note 2018 2017

$'000 $'000

Assets

Current assets

Cash and cash equivalents 13 15,793 16,721

Receivables 14 2,503 2,422

Inventories 960 743

Total current assets 19,256 19,886

Non-current assets

Property, plant and equipment 15 152,186 92,000

Total non-current assets 152,186 92,000

Total assets 171,442 111,886

Liabilities

Current liabilities

Payables 16 10,820 10,245

Total current liabilities 10,820 10,245

Total liabilities 10,820 10,245

Net assets 160,622 101,641

Equity

Contributed equity 78,744 80,129

Asset revaluation surplus 17 66,785 5,283

Retained surplus 15,093 16,229

Total equity 160,622 101,641





Note 2018 2017

$'000 $'000

Revenue

User charges 2 11,509 10,290





Expenses















Statement of Financial PositionAs at 30 June 2018






Contributed

equity

Asset revaluation

surplus Retained

surplus Total

equity

$’000 $’000 $’000 $’000

Balance at 1 July 2016 83,157 5,254 14,629 103,040

Operating result for the year - - 1,600 1,600

Other comprehensive income for the year - 29 - 29

Total comprehensive income for the year - 29 1,600 1,629

Transactions with owners in their capacity as owners: Net assets received (transferred during year via machinery-of-Government change) 1,080 - - 1,080

Equity injections (Minor Capital Works) 2,206 - - 2,206

Equity withdrawals (Depreciation funding) (6,314) - - (6,314)

Balance at 30 June 2017 80,129 5,283 16,229 101,641

Contributed

equity

Asset revaluation

surplus Retained

surplus Total

equity

$’000 $’000 $’000 $’000

Balance at 1 July 2017 80,129 5,283 16,229 101,641

Operating result for the year - - (1,136) (1,136)

Other comprehensive income for the year - 61,502 61,502

Total comprehensive income for the year - 61,502 (1,136) 60,366

Transactions with owners in their capacity as owners: Net assets received (transferred during year via machinery-of-Government change) 5 - - 5

Equity injections (Minor Capital Works) 5,076 - - 5,076

Equity withdrawals (Depreciation funding) (6,466) - - (6,466)

Balance at 30 June 2018 78,744 66,785 15,093 160,622





Note 2018 2017

$'000 $'000

Revenue

User charges 2 11,509 10,290





Expenses















Statement of Changes in EquityFor the year ended 30 June 2018






2018 2017

Note $'000 $'000

Cash flows from operating activities

Inflows

User charges 10,047 11,040

Public health services funding 123,924 116,225

Grants and other contributions 6,935 7,168

GST input tax credits from ATO 3,896 2,101

GST collected from customers 88 63

Other receipts 1,807 1,592

Outflows

Employee expenses (8,200) (10,676)

Health service employee expenses (81,435) (73,304)

Supplies and services (51,426) (46,347)

GST paid to suppliers (3,811) (2,358)

GST remitted to ATO (82) (78)

Other payments (1,106) (1,609)

Net cash from/(used by) operating activities 18 637 3,817

Cash flows from investing activities

Inflows

Proceeds from sale of property, plant and equipment 14 11

Outflows

Payments for property, plant and equipment (6,655) (7,569)

Net cash from/(used by) investing activities (6,641) (7,558)

Cash flows from financing activities

Inflows

Equity injections 5,076 2,206

Net cash from/(used by) financing activities 5,076 2,206

Net increase/(decrease) in cash held (928) (1,535)

Cash and cash equivalents at the beginning of the financial year 16,721 18,256

Cash and cash equivalents at the end of the financial year 15,793 16,721





Note 2018 2017

$'000 $'000

Revenue

User charges 2 11,509 10,290





Expenses















Statement of Cash FlowsFor the year ended 30 June 2018



Notes to the financial statements


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Note 1. Basis for preparation and other accounting policies ........................................................................................ 7

Note 2. User charges ................................................................................................................................................. 10

Note 3. Public health services funding ....................................................................................................................... 11

Note 4. Grants and other contributions ...................................................................................................................... 11

Note 5. Other revenue ................................................................................................................................................ 11

Note 6. Employee expenses ...................................................................................................................................... 12

Note 7. Health service employee expenses ............................................................................................................... 13

Note 8. Key management personnel disclosures ....................................................................................................... 14

Note 9. Related Party Transactions ........................................................................................................................... 23

Note 10. Supplies and services .................................................................................................................................. 24

Note 11. Revaluation increment/decrement ............................................................................................................... 24

Note 12. Other expenses ........................................................................................................................................... 25

Note 13. Cash and cash equivalents ......................................................................................................................... 25

Note 14. Receivables ................................................................................................................................................. 26

Note 15. Property, plant and equipment .................................................................................................................... 26

Note 16. Payables ...................................................................................................................................................... 32

Note 17. Asset revaluation surplus by class .............................................................................................................. 32

Note 18. Reconciliation of operating result to net cash provided by operating activities ........................................... 32

Note 19. Financial instruments ................................................................................................................................... 33

Note 20. Contingencies .............................................................................................................................................. 35

Note 21. Commitments ............................................................................................................................................... 35

Note 22. Restricted assets ......................................................................................................................................... 35

Note 23. Fiduciary trust transactions and balances ................................................................................................... 36

Note 24. Associates ................................................................................................................................................... 36

Note 25. Budget vs actuals comparison ..................................................................................................................... 37

Note 26. Subsequent events ...................................................................................................................................... 41

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Notes to the financial statementsFor the year ended 30 June 2018





7

Note 1. Basis for preparation and other accounting policies

Basis of Financial Statement preparation

Statement of compliance

The South West Hospital and Health Service has prepared these financial statements in compliance with section 62 (1) of the Financial Accountability Act 2009 and section 43 of the Financial and Performance Management Standard 2009.

These financial statements are general purpose financial statements, prepared on an accrual basis in accordance with Australian Accounting Standards and Interpretations. In addition, the financial statements comply with Queensland Treasury’s Minimum Reporting Requirements for the year ended 30 June 2018, and other authoritative pronouncements.

With respect to compliance with Australian Accounting Standards and Interpretations, as the South West Hospital and Health Service is a not-for-profit statutory body it has applied those requirements applicable to not-for-profit entities.

The reporting entity

The financial statements include the value of all revenues, expenses, assets, liabilities and equity of South West Hospital and Health Service (South West HHS). South West HHS does not control any other entities (see Note 24 – Associates).

Issuance of Financial Statements

The financial statements are authorised for issue by the Chair of the South West Hospital and Health Board, the Chief Executive and the Executive Director Finance and Business Services of South West HHS.

Rounding and comparatives

Amounts included in the financial statements are in Australian dollars and have been rounded to the nearest $1,000 or, where that amount is $500 or less, to zero, unless disclosure of the full amount is specifically required. Comparative information has been reclassified where required for consistency with the current year’s presentation.

Current/Non-current classification

Assets and liabilities are classified as either 'current' or 'non-current' in the Statement of Financial Position and associated notes.

Assets are classified as 'current' where their carrying amount is expected to be realised within 12 months after the reporting date. Liabilities are classified as 'current' when they are due to be settled within 12 months after the reporting date, or South West HHS does not have an unconditional right to defer settlement to beyond 12 months after the reporting date.

All other assets and liabilities are classified as non-current.

Basis of measurement

Historical cost is used as the measurement basis in this financial report except for the following:

• Land and buildings which are measured at fair value; and

• Inventories which are measured at the lower of cost and net realisable value.

Historical Cost

Under historical cost, assets are recorded at the amount of cash or cash equivalents paid or the fair value of the consideration given to acquire assets at the time of their acquisition. Liabilities are recorded at the amount of proceeds received in exchange for the obligation or at the amounts of cash or cash equivalents expected to be paid to satisfy the liability in the normal course of business.

Fair Value

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions (i.e. an exit price) regardless of whether that price is directly derived from observable inputs or estimated using another valuation technique. Fair value is determined using one of the following two approaches in South West HHS:

• The market approach uses prices and other relevant information generated by market transactions involving identical or comparable (i.e. similar) assets, liabilities or a group of assets and liabilities, such as a business; or

• The cost approach reflects the amount that would be required currently to replace the service capacity of an asset. This method includes the current replacement cost methodology.

Where fair value is used, the fair value approach is disclosed.



Note 1. Basis for preparation and other accounting policies





8

Note 1. Basis for preparation and other accounting policies (continued)

Present Value

Present value represents the present discounted value of the future net cash inflows that the item is expected to generate (in respect of assets) or the present discounted value of the future net cash outflows expected to settle (in respect of liabilities) in the normal course of business.

Net Realisable Value

Net realisable value represents the amount of cash or cash equivalents that could be obtained by selling an asset in an orderly disposal.

Other accounting policies

Administrative arrangements

Transfer of assets on practical completion

In 2014-15, the Minister for Health signed an enduring designation of transfer for property, plant and equipment between Hospital and Health Services and the Department of Health. This transfer is recognised through equity when both entities agree in writing to the transfer. During the 2017-18 financial year the financial impact of assets transfers was not significant. (Refer Note 15).

2018 2017

$'000 $'000

Transfer in - practical completion of projects from the Department of Health* - 1,146

Net transfer of property, plant and equipment to/from the Department of Health 5 (66)

5 1,080

* Construction of major health infrastructure continues to be managed and funded by the Department of Health. Upon practical completion of a project, assets are transferred from the Department of Health to South West HHS. This note relates to transfers to/from Department of Health only – transfers to departments other than Department of Health are not included.

Inventories

Inventories consist mainly of medical supplies held for distribution in hospitals and are provided to public admitted patients free of charge except for pharmaceuticals which are provided at a subsidised rate. Inventories are valued at the lower of cost and net realisable value. Cost is assigned on a weighted average cost, adjusted where applicable, for any loss of service potential.

Taxation

South West HHS is a State body as defined under the Income Tax Assessment Act 1936 and is exempt from Commonwealth taxation with the exception of Fringe Benefits Tax (FBT) and Goods and Services Tax (GST). The Australian Taxation Office has recognised the Queensland Department of Health and the sixteen Hospital and Health Services as a single taxation entity for reporting purposes.

First year application of new accounting standards or changes in policy

Changes in accounting policy

South West HHS did not voluntarily change any of its accounting policies during 2017-18.

Accounting standards early adopted

There have been no Australian Accounting Standards early adopted for 2017-18.

Accounting standards applied for the first time in 2017-18

AASB 2016-4 Amendments to Australian Accounting Standards – Recoverable Amount of Non-Cash Generating Specialised Assets for not-for-Profit Entities simplified and clarified the impairment testing requirements under AASB 136 for non-cash generating assets held by NFP entities. This amendment has not changed any reported amounts. No other accounting standards applied for the first time in 2017-18 had any effect on South West HHS.








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Future impact of accounting standards not yet effective

At the date of authorisation of the financial report, the expected impacts of new or amended Australian Accounting Standards issued but with future commencement dates are set out below:

AASB 9 Financial Instruments

This standard will first apply to South West HHS’s financial statements for 2018-19. The main impacts of these standards on South West HHS are that they will change the requirements for the classification, measurement and disclosures associated with South West HHS financial assets. AASB 9 will introduce different criteria for whether financial assets can only be measured at amortised cost or fair value.

South West HHS has reviewed the measurement of its financial assets held at 30 June 2018 against the new AASB 9 classification and measurement requirements. There will be no change to the classification of South West HHS cash or cash equivalents under the new standard. South West HHS receivables will be measured at amortised cost which is similar to the current classification of loans and receivables. None of South West HHS’s financial assets are expected to be remeasured in 2018-19 as a result of the new standard.

Another impact of AASB 9 relates to calculating impairment losses for South West HHS receivables. As South West HHS receivables don’t include a significant financing component, impairment losses will be determined according to the amount of lifetime expected credit losses. On initial adoption of AASB 9, South West HHS will need to determine the expected credit losses for its receivables by comparing the credit risk at that time to the credit risk that existed when those receivables were initially recognised. South West has reviewed the impairment of receivables as at 30 June 2018 and, as the receivables are short term in nature, the expected impact of applying the new impairment model is minimal. In accordance with transition guidance from Queensland Treasury, any changed amounts will form the opening balance of those items on the date AASB 9 is adopted, however comparative figures for financial instruments will not be restated.

Under AASB 9 South West HHS financial liabilities will continue to be measured at amortised cost.

AASB 1058 Income for Not-for-Profit Entities and AASB 15 Revenue from Contracts with Customers

These standards will first apply to South West HHS’s financial statements in 2019-20.

South West HHS has commenced analysing the new revenue recognition requirements under these standards and is yet to form conclusions about significant impacts. South West receives over 85% of its revenue as public health services funding through the Service Agreement with the Department of Health (see Note 3). South West HHS initial assessment indicates that the recognition of revenue received under this contract is unlikely to change as a result of the new standard. Further analysis will be done in coming months to validate this assessment.

Potential future impacts on other revenue sources identifiable at the date of this report are as follows:

• grants received to construct a HHS non-financial asset will be recognised as a liability, and subsequently progressively recognised as revenue as South West HHS satisfies its performance obligations under the grant. At present, such grants are recognised as revenue upfront. These types of grants are not common within the HHS as most funding for non-financial asset construction is received as equity injection.

• under the new standards, other grants currently recognised as revenue upfront may be required to be recognised as revenue progressively as the associated performance obligations are satisfied, but only if the associated performance obligations are enforceable and sufficiently specific. Grants with performance obligations that are not enforceable and/or sufficiently specific will not qualify for deferral and will continue to be recognised as revenue as soon as they are controlled. The HHS is yet to evaluate existing grant agreements to determine whether any revenue could be deferred under the new requirements.

• depending on the specific contractual terms, the new requirements may potentially result in a change to the timing of revenue from user charges such that some revenue may need to be deferred to a later reporting period to the extent that the HHS has received cash but has not met its associated obligations (such amounts would be reported as a liability in the meantime). South West HHS is yet to complete its analysis of current arrangements for sale of goods and services and the impact, if any, on revenue recognition has not yet been determined.

• a range of new disclosures will also be required by the new standards in respect of the HHS revenue. Comparative information will not be restated on transition in accordance with Queensland Treasury policy for government agencies, however AASB 15 and AASB 1058 will be applied retrospectively to all contracts, including completed contracts, ensuring all deferred revenue can be recognised on transition. Under this approach Queensland Treasury will require the cumulative effect of applying this standard to be recognised as an adjustment to the opening balance of Accumulated Surpluses. Where assets have been acquired for significantly less than value prior to 1 July 2019, these assets are not required to be remeasured on transition to the new standards.








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AASB 16 Leases

This standard will first apply to South West HHS’s financial statements for 2019-20. When applied, the standard supersedes AASB 117 Leases, AASB Interpretation 4 Determining whether an Arrangement contains a Lease, AASB Interpretation 115 Operating Leases – Incentives and AASB Interpretation 127 Evaluating the Substance of Transactions Involving the Legal Form of a Lease.

Unlike AASB 117 Leases, AASB 16 introduces a single lease accounting model for lessees. Lessees will be required to recognise a right-of-use asset (representing rights to use the underlying leased asset) and a liability (representing the obligation to make future lease payments) for all leases with a term of more than 12 months, unless the underlying assets are of low value.

In effect, the majority of operating leases (as defined by the current AASB 117) will be reported on the Statement of Financial Position under AASB 16. There will be a significant increase in assets and liabilities for agencies that lease assets. The impact on the reported assets and liabilities would be largely in proportion to the scale of the agency’s leasing activities.

The right-of-use asset will be initially recognised at cost, consisting of the initial amount of the associated lease liability, plus any lease payments made to the lessor at or before the commencement date, less any lease incentives received, the initial estimate of restoration costs and any initial direct costs incurred by the lessee. The right-of-use asset will give rise to a depreciation expense.

The lease liability will be initially recognised at an amount equal to the present value of the lease payments during the lease term that are not yet paid. Current operating lease rental payments will no longer be expensed in the Statement of Comprehensive Income. They will be apportioned between a reduction in the recognised lease liability and the implicit finance charge (the effective rate of interest) in the lease. The finance cost will be recognised as an expense.

AASB 16 allows a ‘cumulative approach’ rather than full retrospective application to recognising existing operating leases. Comparative information will not be restated on transition in accordance with Queensland Treasury policy for government agencies. All adjustments arising from the recognition and measurement of right-of-use assets and lease liability balances will be processed through equity on 1 July 2019. Contracts not previously identified as containing a lease, and entered into prior to 1 July 2019, will not be subject to this standard.

Presently South West HHS leases commercial and residential property and motor vehicles from the Department of Housing and Public Works. Whole of Government guidance on the treatment of these leases is currently being developed. South West HHS also has short term non-cancellable leases over residential and commercial property with private lessors. South West HHS is still assessing the specific terms of these contracts but given the low value of these leases it is not anticipated that the impact of changes to the accounting standards for leases will be material to South West HHS Statement of Financial Position.

All other Australian Accounting Standards and interpretations with future commencement dates are either not applicable to South West HHS activities, or not expected to have a material impact on the financial statements.

Note 2. User charges

2018 2017

$'000 $'000

Sale of goods and services 2,449 1,979

Pharmaceutical Benefit Scheme 1,587 1,034

Hospital fees 7,473 7,277

11,509 10,290

Significant accounting policies

Revenue in this category primarily consists of hospital fees, reimbursements of pharmaceutical benefits, charges for private patients and private practice fees which are recognised based on either invoicing for related services or goods provided and/or the recognition of accrued revenue based on estimated volumes of goods or services delivered.




Note 2. User charges





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Note 3. Public health services funding

2018 2017

$'000 $'000

Block funding 68,139 63,755

Depreciation funding 6,466 6,314

General purpose funding 55,509 52,303

130,114 122,372


Public health services funding

Funding is provided predominantly from the Department of Health for specific public health services purchased by the Department in accordance with a service agreement. The Australian Government pays its share of national health funding directly to the Department of Health, for on forwarding to the Hospital and Health Service. The service agreement is reviewed periodically and updated for changes in activities and prices of services delivered by South West HHS. Cash funding from the Department is received fortnightly for State payments and monthly for Commonwealth payments and is recognised as revenue on receipt. At the end of the financial year, an agreed technical adjustment between Department of Health and South West HHS may be required for the level of services performed above or below the agreed levels. The majority of services are block funded. South West HHS does not receive any health, teaching, training and research funding.

The service agreement between the Department of Health and South West HHS dictates that the funding provided by the Department for depreciation charges incurred by the HHS are a non-cash revenue. This is achieved through a withdrawal of funds from equity refer Statement of Changes in Equity.

Note 4. Grants and other contributions

2018 2017

$'000 $'000

Australian Government grants

Nursing home grants 4,492 4,410

Home and community care grants 1,264 1,248

Specific purpose 638 1,029

Total Australian Government grants 6,394 6,687

Other

Services received at below fair value* 1,594 -

Donations 33 7

Other grants 508 480

8,529 7,174


Grants, contributions, donations and gifts are non-reciprocal in nature and do not require anything to be provided in return. Revenue from these items is recognised in the year in which the Hospital and Health Service obtains control over them.

Contributed assets are recognised at their fair value. Contributions of services are recognised only if the services would have been purchased if they had not been donated and their fair value can be measured reliably. Where this is the case, an equal amount is recognised as revenue and an expense.

South West HHS receives corporate services support from the Department of Health for no cost. Corporate services received include payroll services, accounts payable services, finance transactional services, taxation services, supply services and information technology services.

*This is the first year that services received below fair value have been recognised by South West HHS.

Note 5. Other revenue

2018 2017

$'000 $'000

Recoveries 417 218

Other 465 938

882 1,156



Note 3. Public health services funding

Note 4. Grants and other contributions

Note 5. Other revenue





12

Note 6. Employee expenses

2018 2017

$'000 $'000

Employee benefits

Wages and salaries 6,869 8,070

Annual leave levy 590 479

Employer superannuation contributions 621 600

Long service leave levy 165 163

Employee related expenses

Redundancies 11 169

Other employee related expenses 31 84

8,287 9,565

2018 2017

Staff No. Staff No.

Number of employees 19.6 25.7

The number of employees includes full-time employees and part-time employees measured on a full-time equivalent basis as at 30 June 2018.


Employees include health executives directly engaged in the service of the South West HHS in accordance with section 70 of the Hospital and Health Boards Act 2011 (HHBA). The basis of employment for health executives is in accordance with section 74 of the HHBA. In addition, South West HHS directly engages senior medical officers who enter into individual contracts with South West.

Wages and salaries due but unpaid at reporting date are recognised in the Statement of Financial Position at current salary rates. As South West HHS expects such liabilities to be wholly settled within 12 months of reporting date, the liabilities are recognised at undiscounted amounts.

Workers Compensation

Workers’ compensation insurance is a consequence of employing staff, but is not counted in an employee’s total remuneration package. It is not an employee benefit and is recognised and included as part of Health Service Employee Expenses (Note 7) and not separated between Health Service and Board employees.

Employee Benefits and On-Costs

Annual leave and long service leave

Under the Queensland Government’s Central Schemes for Annual Leave (ALCS) and Long Service Leave (LSLS), levies are paid throughout the year by South West HHS to cover the cost of an employee’s annual leave and long service leave entitlements (including leave loading and on-costs).

The levies are expensed in the period in which they are payable. Amounts paid to employees for annual leave are claimed from the scheme quarterly in arrears.

Sick leave

Prior history indicates that on average, sick leave taken each reporting period is less than the entitlement accrued. This is expected to continue in future periods. Accordingly, it is unlikely that existing accumulated entitlements will be used by employees and no liability for unused sick leave entitlements is recognised. As sick leave is non-vesting, an expense is recognised for this leave as it is taken.

Superannuation

Employer superannuation contributions are paid to QSuper, the superannuation scheme for Queensland Government employees, at rates determined by the Treasurer on the advice of the State Actuary. Contributions are expensed in the period in which they are paid or payable and the South West HHS obligation is limited to its contribution to QSuper. The QSuper scheme has defined benefit and defined contribution categories. The liability for defined benefits is held on a whole-of-government basis and reported in those financial statements pursuant to AASB 1049 Whole of Government and General Government Sector.



Note 6. Employee expenses





13

Note 7. Health service employee expenses

2018 2017

$'000 $'000

Department of Health 81,602 74,876

81,602 74,876

The Hospital and Health Service through service arrangements with the Department of Health has engaged 792 (2017: 739) full time equivalent persons at 30 June 2018. As well as direct payments to the Department, premium payments made to WorkCover Queensland representing compensation obligations of 2018: $0.536 million (2017: $0.541 million) and other employee expenses (including training) of $0.921 million (2017: $0.617million) are included in this category.


In accordance with the Hospital and Health Boards Act 2011, the employees of the Department of Health are referred to as Health service employees. Under this arrangement:

- The Department provides employees to perform work for the South West HHS and acknowledges and accepts its obligations as the employer of these employees.

- South West HHS is responsible for the day to day management of these departmental employees.

- South West HHS reimburses the Department for the salaries and on-costs of these employees. This is disclosed as Health service employee expense.








13


2018 2017

$'000 $'000

Department of Health 81,602 74,876

81,602 74,876

The Hospital and Health Service through service arrangements with the Department of Health has engaged 792 (2017: 739) full time equivalent persons at 30 June 2018. As well as direct payments to the Department, premium payments made to WorkCover Queensland representing compensation obligations of 2018: $0.536 million (2017: $0.541 million) and other employee expenses (including training) of $0.921 million (2017: $0.617million) are included in this category.


In accordance with the Hospital and Health Boards Act 2011, the employees of the Department of Health are referred to as Health service employees. Under this arrangement:

- The Department provides employees to perform work for the South West HHS and acknowledges and accepts its obligations as the employer of these employees.

- South West HHS is responsible for the day to day management of these departmental employees.

- South West HHS reimburses the Department for the salaries and on-costs of these employees. This is disclosed as Health service employee expense.




14

Note 8. Key management personnel disclosures

Key management personnel (KMP) include those positions that had authority and responsibility for planning, directing and controlling the activities of the HHS during the year. This includes South West HHS’s responsible Minister (Minister of Health and Minister for Ambulance Services).

South West HHS has determined that individuals acting in these positions on a temporary or relieving basis are only considered to be KMP where they acted in the role for greater than four weeks during the year.

Section 74 of the Hospital and Health Boards Act 2011 provides that the contract of employment for health executive staff must state the term of employment, the person's functions and any performance criteria as well as the person's classification level and remuneration package.

Remuneration policy for the South West HHS key executive management personnel is set by direct engagement common law employment contracts. The remuneration and other terms of employment for the key executive management personnel are also addressed by these common law employment contracts. The contracts provide for other benefits including motor vehicles and expense payments such as rental or loan repayments. South West HHS does not have any key executive management personnel employed under an arrangement which includes the potential for performance payments.

For the 2017-18 year, the remuneration of key executive management personnel increased by 2.5 per cent in accordance with government policy. Remuneration packages for key executive management personnel comprise of the following:

Short-term employee benefits Long-term employee benefits

Ministerial remuneration

Ministerial remuneration entitlements are outlined in the Legislative Assembly of Queensland’s Members’ Remuneration Handbook. South West HHS does not bear any cost of remuneration of the Minister. The majority of Ministerial entitlements are paid by the Legislative Assembly, with the remaining entitlements being provided by Ministerial Services Branch within the Department of the Premier and Cabinet. As all Ministers are reported as KMP of the Queensland Government, aggregate remuneration expenses for all Ministers is disclosed in the Queensland General Government and Whole of Government Consolidated Financial Statements, which are published as part of Queensland Treasury’s Report on State Finances.

Base salary, allowances and leave entitlements expensed for the period

during which the employee occupied the specified position.

Non-monetary benefits including of the provision of motor vehicles and housing

and fringe benefit taxes applicable to other benefits.

Long term employee benefits including long service leave accrued.

Post-employment benefits including superannuation benefits.

Termination benefits. Employment contracts only provide for notice periods

or payment in lieu on termination, regardless of the reason for termination.



Note 8. Key management personnel disclosures


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ded

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ana

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en

t an

d o

ve

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ht o

f th

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ou

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HS

fin

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fra

me

wo

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clu

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l co

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sys

tem

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o a

ccoun

tab

le f

or

the

pro

mo

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of th

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ng

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rm v

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ility

of th

e H

osp

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l an

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S 2

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h W

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the

finan

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sta

tem

ents

For t

he ye

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nded

30

June

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Note

8. K

ey m

anag

emen

t per

sonn

el d

iscl

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ontin

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West

Ho

sp

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an

d H

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h S

erv

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No

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o t

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l sta

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en

ts

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r th

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ear

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ded

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un

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Me

dic

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erv

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s (

ED

MS

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Str

ate

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an

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rofe

ssio

na

l re

sp

onsib

ility

fo

r S

ou

th W

est H

HS

med

ica

l w

ork

forc

e, a

nd

clin

ica

l gove

rnan

ce

. T

he

ED

MS

lea

ds th

e d

eve

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d im

ple

men

tatio

n o

f H

osp

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nd

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rvic

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ide

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gie

s tha

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medic

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wo

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ma

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pp

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plo

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t D

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ctiv

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m 2

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rd

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) ($

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Ex

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Nu

rsin

g &

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wif

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DO

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Resp

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an

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rofe

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ad

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of th

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deve

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ple

men

tatio

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osp

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l an

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ea

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wid

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t w

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wo

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with

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de

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nee

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he

ED

ON

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nsu

res a

n a

pp

rop

ria

tely

qu

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and

com

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ten

t n

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d m

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wo

rkfo

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is m

ain

tain

ed

, le

ad

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to

the

ach

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en

t o

f clin

ica

l e

xce

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th

roug

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men

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.

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ma

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ni M

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ay 2

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to

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uly

20

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to

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17

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8 S

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be

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4

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Ex

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Resp

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of

lead

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hip

and

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rsig

ht

of hum

an

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pa

tio

na

l hea

lth a

nd

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fety

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ork

forc

e p

lan

nin

g a

nd

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lopm

en

t, Ind

ige

no

us tra

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g a

nd

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lopm

en

t, a

nd

cu

ltu

ral a

wa

ren

ess p

rog

ram

s fo

r th

e

Hosp

ital a

nd

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alth

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rvic

e.

DS

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pe

rma

ne

ntly a

ppo

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d u

nd

er

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sp

ital a

nd

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lth

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ct 2

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ly 2

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ho

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ne

fits

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) O

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mp

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en

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ts (

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po

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e

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ne

tary

ex

pe

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ry

ex

pe

nse

s

Lo

ng

te

rm

ex

pe

nse

s

Po

st

em

plo

ye

e

ex

pe

nse

s

Te

rmin

ati

on

be

ne

fits

T

ota

l

Robe

rt M

an

de

r fr

om

22

Ma

rch

20

17

(A

ctin

g).

Pe

rman

en

tly a

pp

oin

ted

3 J

uly

20

17

14

5

15

3

17

- 1

80

Sout

h W

est H

ospi

tal a

nd H

ealth

Ser

vice

Note

s to

the

finan

cial

sta

tem

ents

For t

he ye

ar e

nded

30

June

201

8

Note

8. K

ey m

anag

emen

t per

sonn

el d

iscl

osur

es (c

ontin

ued)


So

uth

West

Ho

sp

ital

an

d H

ealt

h S

erv

ice

No

tes t

o t

he f

inan

cia

l sta

tem

en

ts

Fo

r th

e y

ear

en

ded

30 J

un

e 2

01

8

17

201

8

Ex

ec

uti

ve

Dir

ec

tor

Co

mm

un

ity

an

d A

llie

d H

ea

lth

(E

DC

AH

)

Pro

vid

es s

ing

le p

oin

t a

ccou

nta

bili

ty a

nd

le

ad

ers

hip

fo

r th

e p

ort

folio

of C

om

mun

ity a

nd

Alli

ed

Hea

lth w

ithin

th

e H

osp

ital a

nd

He

alth

Se

rvic

e. T

he

positi

on

pro

vid

es h

igh

leve

l le

ad

ers

hip

, str

ate

gic

dire

ctio

n a

nd

advoca

cy in

th

e p

rofe

ssio

na

l

man

ag

em

en

t o

f com

mun

ity a

nd

alli

ed

he

alth

se

rvic

es a

cro

ss the

Hosp

ital a

nd

Hea

lth

Se

rvic

e, in

clu

din

g c

on

trib

utio

n to

sta

te-w

ide

in

itia

tives.

Ap

po

inte

d u

nd

er

Dis

tric

t H

ea

lth S

erv

ices A

wa

rd -

Sta

te 2

01

2 in

co

nju

nctio

n w

ith

Qu

ee

nsla

nd

He

alth

Fra

me

wo

rk A

wa

rd -

Sta

te 2

012

and

the

He

alth

Pra

ctit

ion

ers

' (Q

ue

en

sla

nd

He

alth

) C

ert

ifie

d A

gre

em

en

t (n

o 2

) 2

01

1 (

HP

EB

2).

S

ho

rt-t

erm

be

ne

fits

($

'000

) O

the

r e

mp

loye

e b

en

efi

ts (

$'0

00

) ($

'000

)

Ap

po

inte

e

Mo

ne

tary

ex

pe

nse

s

No

n-m

on

eta

ry

ex

pe

nse

s

Lo

ng

te

rm

ex

pe

nse

s

Po

st

em

plo

ye

e

ex

pe

nse

s

Te

rmin

ati

on

be

ne

fits

T

ota

l

Josh

Fre

em

an

fro

m 5

Ja

nu

ary

20

15

, re

sig

ne

d 7

Ja

nu

ary

20

18

76

6

1

5

4

92

An

nm

arie

McE

rla

in 1

to

9 J

uly

201

7,

6 to

12

Se

pte

mb

er

20

17

, 20

Novem

be

r to

1 D

ecem

be

r 20

17

an

d 2

Jan

ua

ry to

9

Ma

rch

20

18

(A

ctin

g)

34

-

1

4

- 3

9

Nu

rsin

g D

ire

cto

r Q

ua

lity

an

d S

afe

ty (

ND

QS

)

Resp

onsib

le fo

r le

ad

ing

So

uth

West H

HS

in th

e p

rovis

ion

of a

clin

ica

l gove

rnan

ce

fra

me

wo

rk in

clu

din

g a

ccre

dita

tio

n, risk m

an

ag

em

en

t, r

ese

arc

h, m

ed

ico

-le

ga

l a

nd

mo

rta

lity r

evie

w p

rocesses a

nd c

linic

al p

erf

orm

an

ce

re

po

rtin

g. L

ea

ds

the

Qu

alit

y a

nd

Sa

fety

Un

it in

th

e S

ou

th W

est H

HS

to

en

su

re a

cu

lture

of sa

fety

, co

ntin

uo

us q

ua

lity im

pro

ve

men

t, c

linic

al p

ractic

e s

tan

da

rdis

atio

n a

nd

th

e im

ple

me

nta

tion

an

d s

usta

ina

bili

ty o

f th

e N

atio

na

l S

afe

ty a

nd

Qu

alit

y H

ea

lthca

re

Sta

nd

ard

s.

NG

R9

.2 (

1)

Qu

ee

nsla

nd

Hea

lth N

urs

es &

Mid

wiv

es A

wa

rd -

Sta

te 2

01

2 -

Sectio

n B

Pub

lic H

osp

ita

ls. T

his

positi

on

ceased

to

be

a m

em

be

r o

f th

e E

xecu

tive

Le

ad

ers

hip

Te

am

(an

d th

ere

fore

KM

P)

on

1 J

an

ua

ry 2

01

8.

S

ho

rt-t

erm

be

ne

fits

($

'000

) O

the

r e

mp

loye

e b

en

efi

ts (

$'0

00

) ($

'000

)

Ap

po

inte

e

Mo

ne

tary

ex

pe

nse

s

No

n-m

on

eta

ry

ex

pe

nse

s

Lo

ng

te

rm

ex

pe

nse

s

Po

st

em

plo

ye

e

ex

pe

nse

s

Te

rmin

ati

on

be

ne

fits

T

ota

l

Rob

yn

Bru

mp

ton

fro

m 2

4 A

ugu

st 2

00

9 (

pa

ymen

ts o

nly

fo

r th

e p

erio

d th

is p

ositi

on

wa

s c

onsid

ere

d a

KM

P)

70

-

1

8

- 7

9

Jan

e P

ee

ters

11

Se

pte

mbe

r to

8 O

cto

be

r 2

01

7 (

Actin

g)

14

-

- 1

- 1

5

Sout

h W

est H

ospi

tal a

nd H

ealth

Ser

vice

Note

s to

the

finan

cial

sta

tem

ents

For t

he ye

ar e

nded

30

June

201

8

Note

8. K

ey m

anag

emen

t per

sonn

el d

iscl

osur

es (c

ontin

ued)


So

uth

West

Ho

sp

ital

an

d H

ealt

h S

erv

ice

No

tes t

o t

he f

inan

cia

l sta

tem

en

ts

Fo

r th

e y

ear

en

ded

30 J

un

e 2

01

8

18

201

7

Hea

lth

Se

rvic

e C

hie

f E

xe

cu

tive

(H

SC

E)

Resp

onsib

le fo

r th

e o

ve

rall

lea

de

rsh

ip a

nd

ma

na

gem

en

t o

f th

e S

ou

th W

est H

HS

to

ensu

re th

at S

ou

th W

est H

HS

mee

ts it

s s

tra

teg

ic a

nd

ope

ratio

na

l o

bje

ctiv

es.

Th

e H

SC

E is

accou

nta

ble

to

the

Boa

rd fo

r m

akin

g a

nd

imp

lem

en

ting

decis

ions a

bou

t th

e H

osp

ita

l an

d H

ea

lth

Se

rvic

e b

usin

ess w

ithin

th

e s

tra

teg

ic fra

me

wo

rk s

et b

y the

Boa

rd.

s24

& s

70

appo

inte

d b

y B

oa

rd u

nd

er

Ho

sp

ital a

nd

Hea

lth

Boa

rds A

ct 2

01

1 (

Sectio

n 7

(3

)). A

pp

oin

ted

to

5 y

ea

r co

ntr

act in

Au

gu

st 2

01

4.

S

ho

rt-t

erm

be

ne

fits

($

'000

) O

the

r e

mp

loye

e b

en

efi

ts (

$'0

00

) ($

'000

)

M

on

eta

ry

ex

pe

nse

s

No

n-m

on

eta

ry

ex

pe

nse

s

Lo

ng

te

rm

ex

pe

nse

s

Po

st

em

plo

ye

e

ex

pe

nse

s

Te

rmin

ati

on

be

ne

fits

T

ota

l

Gly

nis

Schu

ltz fro

m 1

1 N

ovem

be

r 2

01

3

26

0

20

5

23

- 3

08

Mic

hae

l K

erin

: 3

Octo

be

r 20

16

to

2 D

ecem

be

r 20

16

(A

ctin

g)

48

8

1

3

- 6

0

Ch

ief

Op

era

tio

ns

Off

ice

r (C

OO

)

Pro

vid

es s

ing

le p

oin

t a

ccou

nta

bili

ty fo

r th

e fu

nctio

ns o

f in

fra

str

uctu

re a

nd

pla

nn

ing

inclu

din

g s

erv

ice

pla

nn

ing

, cap

ita

l w

ork

s p

lann

ing

an

d d

eliv

ery

, fa

cili

ty e

ng

ine

erin

g a

nd

ma

inte

nance

. T

his

positi

on

is a

lso

accou

nta

ble

fo

r th

e functio

n o

f

the

pro

fessio

na

l, o

pe

ratio

na

l and

adm

inis

tra

tive

sup

po

rt s

erv

ices.

HE

S 2

a

pp

oin

ted

un

de

r H

osp

ita

l a

nd

He

alth

Bo

ard

s A

ct 20

11

S

ho

rt-t

erm

be

ne

fits

($

'000

) O

the

r e

mp

loye

e b

en

efi

ts (

$'0

00

) ($

'000

)

M

on

eta

ry

ex

pe

nse

s

No

n-m

on

eta

ry

ex

pe

nse

s

Lo

ng

te

rm

ex

pe

nse

s

Po

st

em

plo

ye

e

ex

pe

nse

s

Te

rmin

ati

on

be

ne

fits

T

ota

l

Me

ryl B

rum

pto

n fro

m 1

7 N

ovem

be

r 200

8 to

19

Fe

bru

ary

2017

76

1

1

1

4

167

259

We

nd

y J

ense

n: 1

Au

gust 2

01

6 to

19

Ma

rch

2017

(A

ctin

g)

then

pe

rman

en

tly a

ppo

inte

d f

rom

20

Ma

rch

20

17

16

5

14

3

12

- 1

94

Ex

ec

uti

ve

Dir

ec

tor

Fin

an

ce

an

d B

us

ine

ss

Se

rvic

es

(E

DF

BS

)

Resp

onsib

le fo

r m

ana

gem

en

t an

d o

ve

rsig

ht o

f th

e S

ou

th W

est H

HS

fin

ance

fra

me

wo

rk in

clu

din

g fin

ancia

l a

ccou

ntin

g p

rocesses, fin

ancia

l ris

k m

an

ag

em

en

t, b

ud

ge

t a

nd

reven

ue

syste

ms, a

ctiv

ity m

ea

su

rem

en

t a

nd

re

po

rtin

g, p

erf

orm

ance

man

ag

em

en

t fr

am

ew

ork

s a

nd

fin

an

cia

l co

rpo

rate

gove

rna

nce

sys

tem

s. T

he

ED

FB

S is

als

o a

ccoun

tab

le f

or

the

pro

mo

tion

of th

e lo

ng

te

rm v

iab

ility

of th

e H

osp

ita

l an

d H

ea

lth S

erv

ice

.

HE

S 2

app

oin

ted

un

de

r H

osp

ita

l an

d H

ea

lth B

oa

rds A

ct 20

11

fro

m 1

1 A

pril 2

01

6.

S

ho

rt-t

erm

be

ne

fits

($

'000

) O

the

r e

mp

loye

e b

en

efi

ts (

$'0

00

) ($

'000

)

M

on

eta

ry

ex

pe

nse

s

No

n-m

on

eta

ry

ex

pe

nse

s

Lo

ng

te

rm

ex

pe

nse

s

Po

st

em

plo

ye

e

ex

pe

nse

s

Te

rmin

ati

on

be

ne

fits

T

ota

l

Cra

ig W

alk

er

pe

rman

en

tly a

pp

oin

ted

fro

m 1

1 A

pril 2

01

6

18

5

32

4

18

- 2

39

Sout

h W

est H

ospi

tal a

nd H

ealth

Ser

vice

Note

s to

the

finan

cial

sta

tem

ents

For t

he ye

ar e

nded

30

June

201

8

Note

8. K

ey m

anag

emen

t per

sonn

el d

iscl

osur

es (c

ontin

ued)


So

uth

West

Ho

sp

ital

an

d H

ealt

h S

erv

ice

No

tes t

o t

he f

inan

cia

l sta

tem

en

ts

Fo

r th

e y

ear

en

ded

30 J

un

e 2

01

8

19

201

7

Ex

ec

uti

ve

Dir

ec

tor

Me

dic

al S

erv

ice

s (

ED

MS

)

Str

ate

gic

an

d p

rofe

ssio

na

l re

sp

onsib

ility

fo

r S

ou

th W

est H

HS

med

ica

l w

ork

forc

e, a

nd

clin

ica

l gove

rna

nce

. T

he

ED

MS

lea

ds th

e d

eve

lopm

en

t an

d im

ple

men

tatio

n o

f H

osp

ital a

nd

He

alth

Se

rvic

e w

ide

str

ate

gie

s tha

t w

ill e

nsu

re th

e m

edic

al

wo

rkfo

rce

is a

lign

ed

with

id

en

tifie

d s

erv

ice

de

livery

nee

ds, an

d a

n a

pp

rop

ria

tely

qu

alif

ied

, co

mpe

ten

t a

nd

cre

de

ntia

led w

ork

forc

e is

ma

inta

ined

.

ME

DF

C2

(01

) a

pp

oin

ted

un

de

r H

ea

lth

Em

plo

ymen

t D

ire

ctiv

e N

o. 7

/14

effectiv

e fro

m 2

2nd

Ap

ril 2

01

4. M

ed

ica

l Offic

ers

(Q

ue

ensla

nd

He

alth

) A

wa

rd -

Sta

te -

Mo

de

rn A

wa

rd

S

ho

rt-t

erm

be

ne

fits

($

'000

) O

the

r e

mp

loye

e b

en

efi

ts (

$'0

00

) ($

'000

)

M

on

eta

ry

ex

pe

nse

s

No

n-m

on

eta

ry

ex

pe

nse

s

Lo

ng

te

rm

ex

pe

nse

s

Po

st

em

plo

ye

e

ex

pe

nse

s

Te

rmin

ati

on

be

ne

fits

T

ota

l

Dr

Nova

Evans: 4

Ap

ril 2

01

6 to

2 O

cto

be

r 2

016

(T

em

po

rari

ly a

pp

oin

ted

ME

DC

2 (

03

))

94

1

1

2

7

- 1

14

Dr

Ch

risto

ph

er

Buck p

erm

an

en

tly a

ppo

inte

d fro

m16

Se

pte

mbe

r 2

01

6

34

0

31

7

24

- 4

02

Ex

ec

uti

ve

Dir

ec

tor

Nu

rsin

g &

Mid

wif

ery

(E

DO

NM

)

Resp

onsib

le fo

r str

ate

gic

an

d p

rofe

ssio

na

l le

ad

ers

hip

of th

e n

urs

ing

wo

rk fo

rce. T

he

ED

ON

M le

ads the

deve

lopm

en

t a

nd

im

ple

men

tatio

n o

f H

osp

ita

l an

d H

ea

lth S

erv

ice

wid

e s

tra

teg

ies tha

t w

ill e

nsu

re th

e n

urs

ing

an

d m

idw

ifery

wo

rkfo

rce

is a

lign

ed

with

id

en

tifie

d s

erv

ice

de

livery

nee

ds. T

he

ED

ON

M e

nsu

res a

n a

pp

rop

ria

tely

qu

alif

ied

and

com

pe

ten

t n

urs

ing

an

d m

idw

ifery

wo

rkfo

rce

is m

ain

tain

ed

, le

ad

ing

to

the

ach

ievem

en

t o

f clin

ica

l e

xce

llen

ce

th

roug

h

edu

ca

tio

n, p

rofe

ssio

na

l deve

lop

men

t an

d r

esea

rch

.

NR

G1

1.3

(1

) Q

ue

ensla

nd

He

alth

Nu

rses &

Mid

wiv

es A

wa

rd -

Sta

te 2

012

- S

ectio

n B

Pu

blic

Hosp

itals

.

S

ho

rt-t

erm

be

ne

fits

($

'000

) O

the

r e

mp

loye

e b

en

efi

ts (

$'0

00

) ($

'000

)

M

on

eta

ry

ex

pe

nse

s

No

n-m

on

eta

ry

ex

pe

nse

s

Lo

ng

te

rm

ex

pe

nse

s

Po

st

em

plo

ye

e

ex

pe

nse

s

Te

rmin

ati

on

be

ne

fits

T

ota

l

Ch

ris S

ma

ll fr

om

14

Aug

ust 20

09

17

8

- 3

19

- 2

00

To

ni M

urr

ay: 1

9 S

ep

tem

be

r to

2 O

cto

be

r 2

01

6 a

nd

5 D

ecem

be

r 20

16

to

18

De

cem

be

r 20

16

(A

ctin

g)

15

1

5

- 1

- 3

1

Ex

ec

uti

ve

Dir

ec

tor

Pe

op

le &

Cu

ltu

re (

form

erl

y D

ire

cto

r P

eo

ple

an

d C

ult

ure

) (E

DP

AC

)

Resp

onsib

le fo

r p

rovis

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21

Note 8. Key management personnel disclosures (continued) Board Remuneration

The South West HHS is independently and locally controlled by the South West Hospital and Health Board (Board). The Board appoints the Health Service Chief Executive and exercises significant responsibilities at a local level; including controlling the financial management of the Service and the management of the HHS land and buildings (section 7 Hospital and Health Boards Act 2011).

In accordance with the Hospital and Health Boards Act 2011, the Governor in Council appoints Board members, on the recommendation of the Minister, for a period not exceeding 4 years. Board members are paid an annual salary based on their position as well as fees for membership on sub-committees. Remuneration is calculated in accordance with the guidance statement issued by the Department of Premier and Cabinet, titled “Remuneration procedures for part-time chairs and member of Queensland Government bodies”. Under the procedure, Hospital and Health Services are assessed as ‘Governance’ entities and grouped into different levels of a remuneration matrix based on a range of indicators including: revenue/budget, net and total assets, independence, risk and complexity.

Composition of the Board and remuneration paid to Board members was as follows:

2018 Short-term benefits

Monetary

expenses*

Non-

monetary

expenses

Post-

employment

expenses Total

($'000) ($'000) ($'000) ($'000)

Chairperson

Mr Jim McGowan AM: 18 May 2017 - 17 May 2019 73 - 7 80

Deputy Chairperson (Board Member)

Ms Karen Tully 18 May 2017 - 17 May 2021 45 - 4 49

Board member

Ms Heather Hall: 27 July 2012 - 17 May 2019 39 - 4 43

Board member

Ms Claire Alexander: 26 June 2015 - 17 May 2019 41 - 4 45

Board member

Dr John Scott: 18 May 2014 - 17 May 2020 38 - 4 42

Board member

Ms Fiona Gaske: 18 May 2014 - 17 May 2021 42 - 4 46

Board member

Mr Ray Chandler: 18 May 2017 - 17 May 2020 39 - 4 43

Board member

Mr Stewart Gordon: 18 May 2017 - 17 May 2020 43 - 4 47

* Monetary expenses include travel reimbursement.



Note 8. Key management personnel disclosures (continued)





22

Note 8. Key management personnel disclosures (continued) Board Remuneration (continued)

2017 Short-term benefits

Post-

employment

expenses

Monetary

expenses*

Non-

monetary

expenses Total

($'000) ($'000) ($'000) ($'000)

Chairperson

Mr Jim McGowan AM: 18 May 2017 - 17 May 2019 8 - 1 9

Chairperson

Mr Lindsay Godfrey: 18 May 2013 - 17 May 2017 71 - 6 77

Deputy Chairperson (Board Member)

Mr Richard Moore: 29 June 2012 - 17 May 2017 36 - 4 40

Board member

Ms Heather Hall: 27 July 2012 - 17 May 2019 39 - 4 43

Board member

Ms Claire Alexander: 26 June 2015 - 17 May 2019 46 9 4 59

Board member

Dr John Scott: 18 May 2014 - 17 May 2018 39 - 4 43

Board member

Ms Fiona Gaske: 18 May 2014 - 17 May 2018 41 - 4 45

Board member

Mr Ray Chandler: 18 May 2017 - 17 May 2018 4 - - 4

Board member

Ms Karen Tully: 18 May 2017 - 17 May 2018 5 - - 5

Board member

Mr Stewart Gordon: 18 May 2017 - 17 May 2018 4 - 1 5

Board member

Mr James Hetherington: 7 September 2012 - 17 May 2017 39 - 4 43

Board member

Mrs Karen Prentis: 29 June 2012 - 17 May 2017 36 - 3 39

* Monetary expenses include travel reimbursement.



Note 8. Key management personnel disclosures (continued)





23

Note 9. Related Party Transactions

Transactions with people/entities related to Key Management Personnel

South West HHS did not have any material transactions with people or entities related to Key Management Personnel during 2017-18.

Transactions with Queensland Government controlled entities

South West HHS is controlled by its ultimate parent entity, the State of Queensland. All State of Queensland controlled entities meet the definition of a related party in AASB 124 Related Party Disclosures.

2018 2017

$'000 $'000

Entity - Department of Health

Revenue 130,114 122,372

Expenditure 92,063 86,998

Asset 816 1,104

Liability 2,656 2,689

Entity - Department of Public Works and Housing

Expenditure 1,659 1,499

Liability - -

Department of Health

South West HHS receives funding in accordance with a service agreement with the Department of Health as outlined in Note 3. The Department of Health receives its revenue from the Queensland Government (majority of funding) and the Commonwealth. South West HHS is funded for eligible services through block funding.

The funding from Department of Health is provided predominantly for specific public health services purchased by the Department from South West HHS in accordance with a service agreement between the Department and South West HHS. The service agreement is reviewed periodically and updated for changes in services delivered by Hospital and Health Service.

The Hospital and Health Service, through service arrangements with the Department of Health, has engaged 792 (2017: 739) full time equivalent persons. In accordance with the Hospital and Health Boards Act 2011, the employees of the Department of Health are referred to as health service employees. In 2018, $81.602 million (2017: $74.876 million) was paid to the Department for health service employees. The terms of this arrangement are fully explained in Note 7.

The Department of Health centrally manages, on behalf of Hospital and Health Services, a range of services including pathology testing, pharmaceutical drugs, clinical supplies, patient transport, telecommunications and technology services. These services are provided on a cost recovery basis. In 2018, these services totalled $11.917 million (2017: $13.280 million).

In addition to services provided on a cost recovery basis, the Department of Health also provides a range of corporate support services to South West HHS at no cost as outlined in Notes 4 and 12. The value of these services in 2018 totalled $1.594 million.

Queensland Treasury Corporation

South West HHS has accounts with the Queensland Treasury Corporation (QTC) for general trust monies and aged care refundable deposits. South West HHS receives interest on these deposits from QTC as outlined in Note 13.

Department of Housing and Public Works

South West HHS pays rent to the Department of Housing and Public Works for a number of properties used for employee accommodation, offices etc. In addition, the Department of Housing and Public Works provides vehicle fleet management services (Qfleet) to South West HHS.

Inter HHS

Payments to and receipts from other Hospital and Health Services occur to facilitate the transfer of patients, drugs, staff and other incidentals. These transactions are not individually significant.

Other

Grants are also received from other governments departments and related parties but they are not individually significant transactions.



Note 9. Related Party Transactions





24

Note 9. Related Party Transactions (continued)

Transactions with non-Queensland Government controlled entities

As disclosed in Note 24, South West HHS is a participant in the Western Queensland Primary Health Network and is a shareholder of Western Queensland Primary Care Collaborative Ltd (WQPCC).

During the 2017-18 financial year the WQPCC and South West HHS continued the service agreements whereby WQPCC provided funds for the delivery of a Healthy Ageing program at various locations within the South West HHS area and provision of visiting Physiotherapy services in the communities of Cunnamulla and Wallumbilla. During the year South West HHS received revenue of $61,000 (2017: $61,000) for the delivery of physiotherapy services and $263,468 (2017: $263,468) for the provision of the Healthy Ageing program. WQPCC and South West HHS also entered into new service agreements whereby the WQPCC provided funds for the delivery of alcohol and drug first aid training in Roma, Charleville, Cunnamulla and St George and the delivery of the ‘Trilogy’ youth suicide prevention program. South West HHS received revenue of $20,214 and $21,989 respectively in relation to these program (2017: Nil). There were no amounts receivable or payable by either party in relation to any of these agreements at 30 June 2018 (2017: Nil).

Note 10. Supplies and services

2018 2017

$'000 $'000

Building services 876 792

Catering and domestic supplies 1,622 1,538

Clinical supplies and services 2,817 2,751

Communications 1,494 659

Computer services 1,234 1,918

Consultants and contractors 15,199 13,226

Electricity and other energy 2,441 2,128

Minor works including plant and equipment 976 429

Motor vehicles 199 160

Operating lease rentals 1,905 1,885

Other travel 2,632 2,345

Outsourced supplies and services 2,138 2,268

Pharmaceutical supplies 2,408 1,584

Pathology, blood and parts 1,450 1,406

Patient transport 4,216 4,494

Patient travel 2,600 2,055

Repairs and maintenance 4,771 5,030

Other 2,133 2,078

51,111 46,746

Note 11. Revaluation increment/decrement

2018 2017

$'000 $'000

Revaluation decrement* 1,418 -

1,418 - Significant accounting policies Any revaluation increment arising on the revaluation of an asset is credited to the asset revaluation surplus of the appropriate class, except to the extent it reverses a revaluation decrement for the class previously recognised as an expense. A decrease in the carrying amount on revaluation is charged as an expense, to the extent it exceeds the balance, if any, in the revaluation surplus relating to that asset class. Further detail in the application of fair value measurement can be found in Notes 1 and 15.

*This is the first year that land revaluation decrements have exceeded the asset revaluation reserve held for land.



Note 9. Related Party Transactions (continued)

Note 10. Supplies and services

Note 11. Revaluation increment/decrement





25

Note 12. Other expenses

2018 2017

$'000 $'000

Audit fees 360 421

Insurance 720 766

Inventory written off 76 57

Losses from the disposal of non-current assets 91 25

Other 354 467

Legal costs 85 154

Services received free of charge* 1,594 -

Special payments - ex-gratia payments 4 1

3,286 1,891


The Department of Health insures property and general losses above a $10,000 threshold through the Queensland Government Insurance Fund (QGIF). Medical indemnity (formerly known as health litigation) payments above a $20,000 threshold and associated legal fees are also insured through QGIF. For the 2017-18 year, the premium was allocated to each HHS according to the underlying risk of an individual insured party. South West HHS is required to pay the excess of $10,000 or $20,000 per event for property and general losses or medical indemnity claims respectively. The Under-Treasurer’s approval has been obtained for entering into insurance contracts.

Other includes miscellaneous hardware supplies and sundry expenditure across all sites, along with facility fee payments to Private Medical Practices.

Special payments represent ex-gratia payments that South West HHS is not contractually or legally obliged to make to other parties. South West HHS did not make any payments over $5,000 during the 2017-18 financial year.

Total external audit fees payable to the Queensland Audit Office relating to the 2017-18 financial year are estimated to be $153,000 (2017: $143,000) including out of pocket expenses. There are no non-audit services included in this amount.

South West HHS does not have an Internal Audit team and outsources this function to an external agency. Internal audit fees for 2017-18 were $148,919 (2017: $145,790). Other audit fees during 2017-18 also included the annual ISO surveillance audit and coding audits.

*This is the first year that services received below fair value have been recognised by South West HHS.

Note 13. Cash and cash equivalents

2018 2017

$'000 $'000

Imprest accounts 7 7

Cash at bank* 14,705 16,034

QTC cash funds* 1,081 680

15,793 16,721

*Refer Note 22 Restricted assets.

South West HHS operating bank accounts are grouped as part of a Whole-of-Government (WoG) banking arrangement, and do not earn interest on surplus funds nor is it charged interest or fees for accessing its approved cash debit facility. Any interest earned on the WoG arrangement accrues to the Consolidated Fund.

General trust bank accounts and term deposits, included in QTC cash funds above, do not form part of the WoG banking arrangement and incur fees as well as interest. Cash deposited with Queensland Treasury Corporation earns interest, calculated on a daily basis reflecting market movements in cash funds as determined by Queensland Treasury Corporation. Rates achieved throughout the year range between 2.20% to 2.85% (2017: 2.47% to 2.93%).


For the purposes of the Statement of Financial Position and the Statement of Cash Flows, cash assets include all cash and cheques receipted but not banked at 30 June as well as deposits at call with financial institutions and cash debit facility.

Debit facility

South West HHS has access to a $1 million debit facility approved by Queensland Treasury which was fully un-drawn at 30 June 2018 (2017: $1 million).



Note 12. Other expenses

Note 13. Cash and cash equivalents





26

Note 14. Receivables

2018 2017

$'000 $'000

Trade debtors 1,350 885

Payroll receivables 1 4

Less: Allowance for impairment (152) (182)

1,199 707

GST receivables 499 583

GST payable (14) (7)

485 576

Public health services funding 785 1,104

Other 34 35

2,503 2,422


Receivables are measured at amortised cost which approximates their fair value at reporting date. Trade debtors are recognised at the amount due at the time of sale or service delivery i.e. the agreed purchase/contract price. The recoverability of trade debtors is reviewed on an ongoing basis at an operating unit level. Trade receivables are generally settled within 120 days (refer Note 19). No interest is charged and no security is obtained.

Movement in the allowance for impairment 2018 2017

$'000 $'000

Opening balance 182 156

Amounts written off during the year (57) (55)

Increase/(Decrease) in allowance recognised in operating result 27 81

Closing balance 152 182

Note 15. Property, plant and equipment

Balances and reconciliations of carrying amount

2018 Land Land Buildings Buildings Plant and

equipment

Capital works in progress Total

(Level 2) (Level 3) (Level 2) (Level 3) (at cost) (at cost)

$’000 $’000 $’000 $’000 $’000 $’000 $’000

Gross value 145 3,985 455 213,667 18,611 4,160 241,023

Less: Accumulated depreciation - - - (79,347) (9,490) - (88,837)

Carrying amount at 30 June 2018 145 3,985 455 134,320 9,121 4,160 152,186

Represented by movements in carrying amount:

Carrying amount at 1 July 2017 311 5,288 392 75,074 8,772 2,163 92,000

Reclassification between Level 2 & Level 3 (60) 60 - - - - -

Acquisitions major infrastructure transfers - -

Acquisitions 1,878 4,777 6,655

Disposals - - - - (92) - (92)

Revaluation increments/(decrements) (106) (1,363) 84 61,469 - - 60,084

Transfers in from Department of Health - - - - 5 - 5

Transfers out - Machinery of Government (MoG) - - - - - - -

Transfers between classes - - - 2,780 - (2,780) -

Depreciation expense - - (21) (5,003) (1,442) - (6,466)




Note 14. Receivables

Note 15. Property, plant and equipment





27

Note 15. Property, plant and equipment (continued)

2017 Land Land Buildings Buildings Plant and

equipment

Capital works in progress Total

(Level 2) (Level 3) (Level 2) (Level 3) (at cost) (at cost)

$’000 $’000 $’000 $’000 $’000 $’000 $’000

Gross value 311 5,288 426 210,099 19,086 2,163 237,373

Less: Accumulated depreciation - - (34) (135,025) (10,314) - (145,373)


Represented by movements in carrying amount:

Carrying amount at 1 July 2016 311 5,320 413 76,005 7,305 311 89,665

Acquisitions - - - - 2,800 4,775 7,575

Disposals - - - - (35) - (35)

Revaluation increments/(decrements) - - - 29 - - 29

Transfers in from Department of Health - - - 1,146 - - 1,146

Transfers out - Machinery of Government (MoG) - (32) - (18) (16) - (66)

Transfers between classes - - - 2,923 - (2,923) -

Depreciation expense - - (21) (5,011) (1,282) - (6,314)



South West HHS holds property, plant and equipment in order to meet its core objective of providing quality healthcare that Queenslanders value. Items of property, plant and equipment with a cost or other value equal to or more than the following thresholds and with a useful life of more than one year are recognised at acquisition.

Class Threshold

Buildings and Land Improvements $10,000 Land $1 Plant and Equipment $5,000

Items below these values are expensed. Land improvements undertaken by South West HHS are included in the building class. South West HHS has an annual maintenance program for its buildings. Expenditure is only added to an asset’s carrying amount if it increases the service potential or useful life of the existing asset. Maintenance expenditure that merely restores the original service potential (lost through ordinary wear and tear) is expensed.

Acquisition of assets

Historical cost is used for the initial recording of all non-current physical asset acquisitions. Historical cost is determined as the value given as consideration plus costs incidental to the acquisition, including all other costs incurred in getting the assets ready for use, including architects’ fees and engineering design fees. However, any training costs are expensed as incurred. Items or components that form an integral part of an asset are recognised as a single (functional) asset.

Purchases of clinical equipment, furniture and fittings associated with capital works projects are managed by South West HHS. These outlays are funded by the State through the Department of Health as cash equity injections throughout the year. In 2017-18 the value of these injections was $5.076 million ($2.206 million in 2016-17). Refer to Statement of Changes in Equity.

Where assets are received free of charge from another Queensland Government entity (whether as a result of a machinery-of-Government change or other involuntary transfer), the acquisition cost is recognised as the carrying amount in the books of the other agency immediately prior to the transfer. Assets acquired at no cost or for nominal consideration, other than from another Queensland Government entity, are recognised at their fair value at the date of acquisition.

Measurement using historical cost

Plant and equipment, is measured at historical cost net of accumulated depreciation and accumulated impairment losses in accordance with Queensland Treasury’s Non-Current Asset Policies for the Queensland Public Sector (NCAP). The carrying amounts for plant and equipment at cost do not materially differ from their fair value.

Measurement using fair value

Land and buildings are measured at fair value in accordance with AASB 116 Property, Plant and Equipment, AASB 13 Fair Value Measurement and Queensland Treasury’s Non-Current Asset Policies for the Queensland Public Sector (NCAP).








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These assets are reported at their revalued amounts, being the fair value at the date of valuation, less any subsequent accumulated depreciation and accumulated impairment losses where applicable. Separately identified components of assets are measured on the same basis as the assets to which they relate. In respect of the abovementioned asset classes, the cost of items acquired during the financial year has been judged by management to materially represent their fair value at the end of the reporting period.

Revaluation of property measured at fair value

Land and building classes measured at fair value, are assessed on an annual basis either by comprehensive valuations or by the use of appropriate and relevant indices undertaken by independent qualified valuers. For financial reporting purposes, the revaluation process for South West HHS is managed by the finance unit with input from the infrastructure team and Executive Director Finance & Business Services.

Comprehensive revaluations are undertaken with sufficient regularity to ensure the carrying value and fair value of the assets do not materially differ, with specific appraisals undertaken at least once every five years. However, if a particular asset class experiences significant and volatile changes in fair value, that class is subject to specific appraisal in the reporting period, where practical, regardless of the timing of the last specific appraisal. Where assets have not been specifically appraised in the reporting period, their previous valuations are materially kept up-to-date via the application of relevant indices. South West HHS uses indices to provide a valid estimation of the assets’ fair values at reporting date.

Materiality is considered in determining whether the differences between the carrying amount and the fair value of an asset warrant revaluation.

The fair values reported by South West HHS are based on appropriate valuation techniques that maximises the use of available and relevant observable inputs and minimise the use of unobservable inputs.

Reflecting the specialised nature of health service buildings for which there is not an active market, fair value is determined using current replacement cost. Current replacement cost is the price that would be received for the asset, based on the estimated cost to a market participant buyer to acquire or construct a substitute asset of comparable utility, adjusted for functional and economic obsolescence. Buildings are measured at fair value by applying either, a revised estimate of individual asset's depreciated replacement cost, or an interim index which approximates movement in market prices for labour and other key resource inputs, as well as changes in design standards as at reporting date. These estimates are developed by independent quantity surveyors.

Indices used are also tested for reasonableness by applying the indices to a sample of assets, comparing the results to similar assets that have been valued by an independent qualified valuer, and analysing the trend of changes in values over time. Through this process, which is undertaken annually, management assesses and confirms the relevance and suitability of indices provided based on South West HHS's own particular circumstances.

For assets revalued using a cost valuation method (e.g. current replacement cost) - accumulated depreciation is adjusted to equal the difference between the gross amount and the carrying amount, after taking into account accumulated impairment losses and changes in remaining useful life. This is generally referred to as the ‘gross method’. For assets revalued using a market or income-based valuation approach – accumulated depreciation and accumulated impairment losses are eliminated against the gross amount of the asset prior to restating for the revaluation. This is generally referred to as the ‘net method’.

Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions (i.e. an exit price) regardless of whether that price is directly derived from observable inputs or estimated using another valuation technique.

Observable inputs are publicly available data that are relevant to the characteristics of the assets/liabilities being valued, and include, but are not limited to, published sales data for land and residual dwellings. Unobservable inputs are data, assumptions and judgements that are not available publicly, but are relevant to the characteristics of the assets/liabilities being valued.

Significant unobservable inputs used by South West HHS include, but are not limited to, subjective adjustments made to observable data to take account of the specialised nature of health service buildings and on hospital site residential facilities, including historical and current contracts (and/or estimates of such costs), and assessments of physical condition and remaining useful life. Unobservable inputs are used to the extent that sufficient relevant and reliable observable inputs are not available for similar assets/liabilities.

A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefit by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.








29


Fair value measurement hierarchy

All assets and liabilities of the HHS for which fair value is measured or disclosed in the financial statements are categorised within the following fair value hierarchy, based on the data and assumptions used in the most recent specific appraisals:

Level 1 represents fair value measurements that reflect unadjusted quoted market prices in active markets for identical assets and liabilities;

Level 2 represents fair value measurements that are substantially derived from inputs (other than quoted prices included within level 1) that are observable, either directly or indirectly; and

Level 3 represents fair value measurements that are substantially derived from unobservable inputs.

Refer to the table Balances and reconciliation of carrying amount in this note for disclosure of categories for assets and liabilities measured at fair value.

Significant valuation inputs and impact on fair value

Land

Effective date of last specific appraisal 30 June 2018 by APV Valuers & Asset Management

Valuation approach Market based assessment

Fair value hierarchy Level 2 (freehold residential properties)

Level 3 (properties zoned either reserve or restricted freehold)

Inputs Publicly available data on sales of similar properties in nearby localities obtained from PDSLive. Where market evidence was limited or new sales were yet to be processed in PDSLive, additional enquiries were made with local real estate agents. Adjustments were made to the sales data to take into account the location, size, street/road frontage and access, and any significant restrictions for each individual land parcel. Subjective adjustments are made to observable data for land classified as reserve (by the Minister for a community purpose). Reserve land parcels are not sold and therefore there are no directly observable inputs. This land can only be sold when un-gazetted and converted to freehold by the State.

Buildings - residential


Valuation approach Market based assessment

Fair value hierarchy Level 2

Inputs Publicly available data on sales of similar properties in nearby localities obtained from PDSLive. Where market evidence was limited or new sales were yet to be processed in PDSLive, additional enquiries were made with local real estate agents. Adjustments were made to take into account the location, size, street/road frontage and access, and any significant restrictions for each individual land parcel.








30


Significant valuation inputs and impact on fair value (continued)

Buildings – specialised for delivery of health services


Valuation approach Current replacement cost (CRC)

Fair value hierarchy Level 3

Inputs Replacement cost is estimated through the use of APV’s construction cost database which uses local construction/or purchase prices paid, recent construction projects across the region, and construction cost guidelines such as Rawlinson’s and Cordell. Key cost drivers include the asset type (Hospital, Multipurpose Heath Service etc), the standard of the facility (basic, standard or superior), construction material type and the gross floor area (GFA) or building footprint.

The estimate has been compiled by measuring quantities using drawings obtained from South West Hospital and Health Service and verified on site or by completing a site measurement. Cost estimates are benchmarked against other valuations.

Fair value has been determined by calculating for each major building component it’s remaining service potential at valuation date, based on a consumption rating. Significant judgement is used to assess the remaining service potential of the facility, given local climatic and environmental conditions and records of the current condition of the facility. Physical site inspections by APV, combined with refurbishment history, local knowledge of asset performance, obsolescence and future planned asset replacement programs were used to inform these assumptions.

Valuations assume a nil residual value.

Impact from valuation program

All land holdings were comprehensively revalued by APV Valuers and Asset Management at 30 June 2018. This resulted in a decrement of $1.468 million (2017: Nil) to the carrying amount of land, reflecting the continued decline in mining activity and impact of droughts on agricultural land values.

In 2017-18, South West HHS engaged independent experts, APV Valuers and Asset Management to undertake comprehensive building revaluations of 99.89% of South West HHS’ building portfolio with an effective date of 30 June 2018, in accordance with the fair value methodology. This resulted in an increment of $61.552 million (2017: $29 thousand) to the carrying amount of buildings.

Increases in fair value were a result of a combination of normal inflationary considerations (11%) during the year and refinements to the methodology applied in determining current replacement cost and fair value. The application of obsolescence in determining fair value includes functional (technical), economic (external) or permanent surplus capacity in line with the requirements of AASB 13 Fair Value Measurement. Physical deterioration is captured through revision to total useful life and future maintenance costs. If a component’s current condition is better (or worse) than previously anticipated, its estimated total useful life is extended (reduced), resulting in a higher (lower) fair value. The valuation utilised componentisation of buildings, and the splitting of components into long and short life portions. This has given more granular assessments of building conditions and useful lives and had a significant impact on fair values and depreciation expense going forward for buildings.

Depreciation

Property, plant and equipment are depreciated on a straight-line basis. Annual depreciation is based on fair values and South West HHS assessments of the useful remaining life of individual assets. Land is not depreciated as it has an unlimited useful life.

Key judgement: Straight line depreciation is used reflecting the progressive, and even, consumption of service potential of these assets over their useful life to South West HHS.

Assets under construction (work-in-progress) are not depreciated until they reach service delivery capacity. Service delivery capacity relates to when construction is complete and the asset is first put to use or is installed ready for use in accordance with its intended application. These assets are then reclassified to the relevant classes within property plant and equipment.

Where assets have separately identifiable components that are subject to regular replacement, these components are assigned useful lives distinct from the asset to which they relate and are depreciated accordingly. In accordance with Queensland Treasury’s Non-Current Asset Policy Guideline 2, South West HHS has determined material specialised health service buildings are complex in nature.








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Key estimate: For each class of depreciable assets, the following depreciation rates were used:

Class Depreciation rates

Buildings and improvements 1.02% - 3.33%

Plant and equipment 5.0% - 20.0%

Change in estimate

Queensland Treasury's Non-Current Asset Policies for the Queensland Public Sector No 2 requires where significant components of a building are replaced at varying intervals i.e. different useful lives, and the impact is material to depreciation expense, componentisation is to be applied. An assessment of the actual replacement cycle for components within special purpose buildings and the impact on depreciation expense was undertaken in 2017-18 by APV valuers as part of their valuation process and found to be material.

At the request of the Board, the useful lives of buildings were reassessed by APV as part of the revaluation. Remaining useful life (RUL) has increased significantly for all buildings, reflecting 2017-18 physical building condition assessments and asset replacement/refurbishment practices within South West HHS. Previously, useful life was determined based on a standard model applied across the State. In 2017-18, these assumptions were modified to reflect historical experience and current asset replacement plans within South West HHS facilities.

Indicators of impairment and determining recoverable amount

Key judgement and estimate: All property, plant and equipment are assessed for indicators of impairment on an annual basis or, where the asset is measured at fair value, for indicators of a change in fair value/service potential since the last valuation was completed. Where indicators of a material change in fair value or service potential since the last valuation arise, the asset is revalued at the reporting date under AASB 13 Fair Value Measurement. If an indicator of possible impairment exists, management determines the asset’s recoverable amount under AASB 136 Impairment of Assets. Recoverable amount is equal to the higher of the fair value less costs of disposal and the asset’s value in use subject to the following:

• As a not-for profit equity, certain property, plant and equipment of South West HHS is held for the continuing use of its service capacity and not for the generation of cashflows. Such assets are typically specialised in nature. In accordance with AASB 136, where such assets measured at fair value under AASB 13, that fair value (with no adjustment for disposal costs) is effectively deemed to be the recoverable amount. As a consequence, AASB136 does not apply to such assets unless they are measured at cost;

• For other non-specialised property, plant and equipment measured at fair value, where indicators of impairment exist, the only difference between the asset’s fair value and its fair value less costs of disposal, is the incremental costs attributable to the disposal of the asset. Consequently, the fair value of the asset determined under AASB 13 will materially approximate its recoverable amount where the disposal costs attributable to the asset are negligible. After the revaluation requirements of AASB 13 are first applied to these assets, applicable disposal costs are assessed and, in the circumstances where such costs are not negligible, further adjustments to the recoverable amount are made in accordance with AASB 136.

For all other remaining assets measured at cost, and assets held for the generation of cash flows, recoverable amount is equal to the higher of the fair value less costs of disposal and the asset’s value in use.

Value in use is equal to the present value of the future cash flows expected to be derived from the asset, or where South West HHS no longer uses an asset and has made a formal decision not to reuse or replace the asset, the value in use is the present value of net disposal proceeds.

Any amount by which the assets carrying amount exceeds the recoverable amount is considered an impairment loss. An impairment loss is recognised immediately in the Statement of Comprehensive Income, unless the asset is carried at a revalued amount, in which case the impairment loss is offset against the asset revaluation surplus of the relevant class to the extent available. Where no asset revaluation surplus is available in respect of the class of asset, the loss is expensed in the Statement of Comprehensive Income as a revaluation decrement.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years.

For assets measured at cost, impairment losses are reversed through income. For assets measured at fair value, to the extent the original decrease was expensed through the Statement of Comprehensive Income, the reversal is recognised as income; otherwise the reversal is treated as a revaluation increase for the class of asset through the asset revaluation surplus. When an asset is revalued using a market valuation approach, any accumulated impairment losses at that date are eliminated against the gross amount of the asset prior to restating for the revaluation.








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Note 16. Payables

2018 2017

$'000 $'000

Trade creditors 6,724 6,756

Unearned revenue - 200

Accrued health service labour - Department of Health 2,656 2,489

Other payables 1,440 800

10,820 10,245


Payables are recognised for amounts to be paid in the future for goods and services received. Trade creditors are measured at the agreed purchase / contract price, net of applicable trade and other discounts. The amounts are unsecured and normally settled within 30-60 days.

Note 17. Asset revaluation surplus by class

2018 Land Buildings Total

$’000 $’000 $’000

Carrying amount at start of period 50 5,233 5,283

Asset revaluation increment/(decrement) (50) 61,552 61,502

Carrying amount at end of period - 66,785 66,785

2017 Land Buildings Total

$’000 $’000 $’000

Carrying amount at start of period 50 5,204 5,254

Asset revaluation increment/(decrement) - 29 29

Carrying amount at end of period 50 5,233 5,283

The asset revaluation surplus represents the net effect of revaluation movements in assets.

Note 18. Reconciliation of operating result to net cash provided by operating activities

2018 2017

$'000 $'000

(Deficit)/Surplus for the year (1,136) 1,600

Adjustments for:


Depreciation grant funding (6,466) (6,314)

Services free of charge 1,594 -

Services received below fair value (1,594) -

Revaluation decrement 1,418 -

Net (gain)/loss on disposal of non-current assets 78 18

Reversal of impairment loss receivables - -

Changes in assets and liabilities:

(Increase)/Decrease in receivables (172) 1,055

(Increase)/Decrease in GST receivables 78 (257)

(Increase)/Decrease in inventories (217) (20)

Increase/(Decrease) in accounts payable 608 822

Increase/(Decrease) in accrued contract labour 167 414

Increase/(Decrease) in GST payable 13 (15)

Increase/(Decrease) in unearned funding revenue (200) 200

Net cash from operating activities 637 3,817



Note 16. Payables

Note 17. Asset revaluation surplus by class

Note 18. Reconciliation of operating result to net cash provided by operating activities





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Note 19. Financial instruments

Categorisation of financial instruments

Financial assets and financial liabilities are recognised in the Statement of Financial Position when South West HHS becomes party to the contractual provisions of the financial instruction. South West HHS has the following categories of financial assets and financial liabilities:

2018 2017

Note $'000 $'000

Category

Financial assets

Cash and cash equivalents 13 15,793 16,721

Receivables 14 2,469 2,387

Total financial assets 18,262 19,108

Financial liabilities

Financial liabilities measured at amortised cost:

Payables 16 10,820 10,045

Total financial liabilities 10,820 10,045

No financial assets and financial liabilities have been offset and presented net in the Statement of Financial Position.

Financial risk management

South West HHS activities expose it to a variety of financial risks - credit risk, liquidity risk and market risk. Financial risk management is implemented pursuant to Government and South West HHS policy. These policies focus on the unpredictability of financial markets and seek to minimise potential adverse effects on the financial performance of South West HHS. South West HHS measures risk exposure using a variety of methods as follows:

Risk exposure Measurement method

Credit risk Ageing analysis, cash inflows at risk

Liquidity risk Monitoring of cash flows by active management of accrual accounts

Market risk Interest rate sensitivity analysis

Credit risk exposure

Credit risk is the potential for financial loss arising from a counterparty defaulting on its obligations. The maximum exposure to credit risk at balance date is equal to the gross carrying amount of the financial asset, inclusive of any allowance for impairment.

Credit risk is considered minimal given all South West HHS deposits are held by the State through the Commonwealth Bank of Australia and Queensland Treasury Corporation.

No collateral is held as security and no credit enhancements relate to financial assets held by South West HHS. In terms of collectability receivables will fall into one of the following categories:

- within terms and expected to be fully collectible - within terms but impaired - past due but not impaired - past due and impaired

Throughout the year, South West HHS assess whether there is objective evidence that a financial asset or group of financial assets is impaired. Objective evidence includes financial difficulties of the debtor, changes in debtor credit ratings and current outstanding accounts over 120 days. The allowance for impairment reflects South West HHS’s assessment of the credit risk associated with receivables balances and is determined based on historical rates of bad debts (by category) over the past three years and management judgement. All known bad debts are written off when identified.



Note 19. Financial instruments





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Note 19. Financial instruments (continued)

The following table shows the value of South West HHS receivable balance separated into the time bands used by management in the monitoring of credit risk. South West HHS standard credit terms are payment within 30 days from the date of invoice. Any amounts which are less than 30 days from data of invoice are considered current. All amounts which are outstanding for 30 or more days after the date of invoice are considered to be overdue.

Current Overdue

Less than 30

days 30-60 days 61-90 days More than 90

days Total

($'000) ($'000) ($'000) ($'000) ($'000)

Financial assets 2018

Receivables 2,270 158 42 152 2,622

Total 2,270 158 42 152 2,622

Financial assets 2017

Receivables 1,542 209 57 185 1,993

Total 1,542 209 57 185 1,993

Current Overdue

Less than 30

days 30-60 days 61-90 days More than 90

days Total

($'000) ($'000) ($'000) ($'000) ($'000)

Individually impaired financial assets 2018

Receivables 2 150 152

Allowance for impairment (2) (150) (152)

Carrying amount - - - - -

Individually impaired financial assets 2017

Receivables 5 - - 177 182

Allowance for impairment (5) - - (177) (182)

Carrying amount - - - - -

Liquidity risk

Liquidity risk is the risk that South West HHS will not have the resources required at a particular time to meet its obligations to settle its financial liabilities. South West HHS is exposed to liquidity risk through its trading in the normal course of business and aims to reduce the exposure to liquidity risk by ensuring that sufficient funds are available to meet employee and supplier obligations at all times. All financial liabilities are current in nature and will be due and payable within twelve months. As such no discounting of cash flows has been made to these liabilities in the Statement of Financial Position.

Interest Rate Risk

The HHS is exposed to interest rate risk on its cash deposited in interest bearing accounts with Queensland Treasury Corporation. The HHS does not undertake any hedging in relation to interest rate risk. Changes in interest rate have a minimal effect on the operating result.

Fair value

South West HHS does not recognise any financial assets or liabilities at fair value. The fair value of trade receivables and payables is assumed to approximate the value of the original transaction, less any allowance for impairment.



Note 19. Financial instruments (continued)





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Note 20. Contingencies

Litigation in progress

As at 30 June 2018, the following cases were filed in the courts naming the State of Queensland acting through the South West Hospital and Health Service as defendant:

2018 2017

No. of cases No. of cases

Federal Court - -

Supreme Court - -

Magistrates Court - -

Tribunals, commissions and boards 5 5

5 5

Medical and general litigation is underwritten by the Queensland Government Insurance Fund (QGIF). South West HHS liability in this area is limited to an excess per insurable event of $20,000 for Medical Indemnity and $10,000 for General Liability claims. As at 30 June 2018, South West HHS has 2 Medical Indemnity (formerly known as Health Litigation), 2 General Liability and Personal Accident claims currently managed by QGIF. Some of these claims may never be litigated or result in payments to claimants (excluding initial notices under Personal Injuries Proceedings Act). South West HHS legal advisers and management believe it would be misleading to estimate the final amounts payable (if any) in respect of the litigation before the courts at this time.

Note 21. Commitments

At 30 June 2018 South West HHS had commenced capital projects with currently commitments cash flow of $1.591 million. These projects are largely funded by the Department of Health through the Priority Capital Program but also include some projects funded through retained earnings These capital projects will be completed during the 2018-19 financial year. By comparison, at 30 June 2017 South West HHS had committed to complete projects to the value of $0.822 million during the 2017-18 financial year. These projects were completed and capitalised this year.

South West HHS leases commercial and residential property from the Department of Housing and Public Works to an annual value of $850,233 on an ongoing basis (2017, $819,082). These leases have no fixed end date and are subject to periodic negotiated rental reviews. As such it is not possible to quantify the dollar value of South West HHS expenditure commitment in future years. Due to a lack of suitable alternative commercial and residential properties within the region, it is expected that South West HHS will to continue to lease these properties for the foreseeable future.

South West HHS also leases commercial and residential property on fixed term leases, usually from private landlords. Details of the South West HHS fixed term lease commitments are below.

2018 2017

$'000 $'000

Commitments - Leases

Committed at the reporting date but not recognised as liabilities, payable:

Not later than 1 year 241 100

Later than 1 year but not later than 5 years 309 144

Later than 5 years 114 127

Total Lease Commitments 664 371

Note 22. Restricted assets

Contributions are received from benefactors in the form of gifts, donations and bequests for stipulated purposes. South West HHS also holds Refundable Accommodation Deposits from aged care facility residents which form part of South West HHS cash balance but are refunded to residents when they leave the facility. At 30 June 2018, amounts of $1.2 million, (2017: $0.7 million), were set aside.



Note 20. Contingencies

Note 21. Commitments

Note 22. Restricted assets





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Note 23. Fiduciary trust transactions and balances

2018 2017

$'000 $'000

Receipts

Patient trust receipts 1,320 1,846

Total receipts 1,320 1,846

Payments

Patient trust related payments 1,359 1,878

Total payments 1,359 1,878

Increase/(decrease) in net patient trust assets (39) (32)

Patient trust assets opening balance 1 July 193 225

Patient trust assets

Current assets

Cash at bank and on hand 154 192

Patient trust and refundable deposits - 1

Total current assets 154 193

Significant Accounting Policy

South West HHS acts in a fiduciary trust capacity in relation to patient trust accounts. Consequently, these transactions and balances are not recognised in the financial statements. Although patient funds are not controlled by South West HHS, trust activities are included in the audit performed annually by the Auditor-General of Queensland.

Note 24. Associates

Western Queensland Primary Care Collaborative Limited (WQ PCC) was registered in Australia as a public company limited by guarantee on 22 May 2015. South West HHS is one of three founding members with North West Hospital and Health Service (North West HHS) and Central West Hospital and Health Service (Central West HHS), each holding one voting right in the company. The principal place of business of WQ PCC is Mount Isa, Queensland. Each founding member is entitled to appoint one Director to the Board of the company.

WQ PCC’s principal purposes as a not-for-profit organisation are to increase the efficiency and effectiveness of health services for patients in Western Queensland, particularly those at risk of poor health outcomes; and improve co-ordination to facilitate improvement in the planning and allocation of resources enabling the providers to provide appropriate patient care in the right place at the right time. These purposes align with the strategic objective of South West HHS to integrate primary and acute care services to support patient wellbeing.

Each member’s liability to WQ PCC is limited to $10. WQ PCC’s constitution legally prevents it from paying dividends to the members and also prevents the income or property of the company being transferred directly or indirectly to the members. This does not prevent WQ PCC from making loan repayments to South West HHS or reimbursing South West HHS for goods or services delivered to WQ PCC.

South West HHS’s interest in WQ PCC is immaterial in terms of the impact on South West HHS’s financial performance because it is not entitled to any share of profit or loss or other income of WQ PCC. Accordingly, the carrying amount of South West HHS’s investment and subsequent changes in its value due to annual movements in the profit and loss of WQ PCC are not recognised in the financial statements.

South West HHS does not have any contingent liabilities or other exposures associated with its interests in WQ PCC.

Note 24. Associates



Note 23. Fiduciary trust transactions and balances





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Note 25. Budget vs actuals comparison

This section discloses South West HHS original budgeted figures for 2017-18 compared to actual results, with explanations of major variances in respect of the Statement of Comprehensive Income, Statement of Financial Position and Statement of Cash Flows.

Variance

Notes

Original Budget

2018 Actual 2018 Variance

Variance % of

Budget

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

Income

User charges a 9,446 11,509 2,063 22%

Public health services funding 124,265 130,114 5,849 5%

Grants and other contributions b 7,368 8,529 1,161 16%

Other revenue 536 882 346 65%

Total revenue 141,615 151,034 9,419

Expenses

Employee expenses c 9,365 8,287 (1,078) (12%)

Health service employee expenses d 78,558 81,602 3,044 4%

Supplies and services e 46,078 51,111 5,033 11%

Depreciation and amortisation 6,236 6,466 230 4%

Revaluation increment/decrement - 1,418 1,418 -%

Other expenses f 1,378 3,286 1,908 138%

Total expenses 141,615 152,170 10,555

Operating result - (1,136) (1,136)

Other comprehensive income Items that will not be reclassified subsequently to operating result

Increase/(decrease) in asset revaluation surplus - 61,502 61,502 -%

Total other comprehensive income/(loss) - 61,502 61,502

Total comprehensive income/(loss) for the year - 60,366 60,366



Note 25. Budget vs actuals comparison





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Note 25. Budget vs Actual comparison (continued)

Variance

Notes

Original Budget

2018 Actual 2018 Variance

Variance % of

Budget

Assets $'000 $'000 $'000 $'000

Current assets

Cash and cash equivalents 17,169 15,793 (1,376) (8%)

Receivables 2,074 2,503 429 21%

Inventories 717 960 243 34%

Total current assets 19,960 19,256 (704)

Non-current assets

Property, plant and equipment g 86,151 152,186 66,035 77%

Total non-current assets 86,151 152,186 66,035

Total assets 106,111 171,442 65,331

Liabilities

Current liabilities

Payables h 9,870 10,820 950 10%

Total current liabilities 9,870 10,820 950

Total liabilities 9,870 10,820 950

Net assets 96,241 160,622 64,381

EQUITY

Total equity 96,241 160,622 64,381



Note 25. Budget vs actuals comparison (continued)





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Note 25. Budget vs Actual comparison (continued)

Variance Notes

Original Budget

2018 Actual 2018

Variance Variance

% of Budget

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

Cash flows from operating activities

Inflows

User charges i 9,385 10,047 662 7%

Public health services funding 124,265 123,924 (341) (0%)

Grants and other contributions 7,368 6,935 (433) (6%)

Interest receipts - - - -%

GST input tax credits from ATO 4,695 3,896 (799) (17%)

GST collected from customers - 88 88 -%

Other receipts 536 1,807 1,271 237%

146,249 146,697 448

Outflows

Employee expenses j (9,365) (8,200) 1,165 (12%)

Health service employee expenses (78,558) (81,435) (2,877) 4%

Supplies and services k (45,879) (51,426) (5,547) 12%

GST paid to suppliers (4,698) (3,811) 887 (19%)

GST remitted to ATO - (82) (82) -%

Other payments (1,308) (1,106) 202 (15%)

(139,808) (146,060) (6,252)

Net cash provided by (used in) operating activities 6,441 637 (5,804)

Cash flows from investing activities

Inflows:

Proceeds from sale of property, plant and equipment - 14 14 -%

Outflows

Payments for property, plant and equipment l (1,718) (6,655) (4,937) 287% Net cash provided by (used in) investing activities (1,718) (6,641) (4,923)

Cash flows from financing activities

Inflows:

Equity injections m 1,378 5,076 3,698 268%

Net cash provided by (used in) financing activities 1,378 5,076 3,698

Net increase/(decrease) in cash held 6,101 (928) (7,029) Cash and cash equivalents at the beginning of the financial year 17,304 16,721 (583) (3%) Cash and cash equivalents at the end of the financial year 23,405 15,793 (7,612)








40

Note 25. Budget vs Actual comparison (continued) Note a budget v actual comparison, and explanation of variances, has not been included for the Statement of Changes in Equity as major variances relating to that statement have been addressed in explanations of major variances for other statements.

The original budget has been reclassified to be consistent with the presentation and classification adopted on the financial statements.

For the purposes of these comparatives the “Original Budget” refers to the budget entered in May 2017 as part of the Service Delivery Statements (SDS) process which reflected the budget at that point in time. Since then there have been numerous adjustments to funding including, but not limited to:

• Enterprise bargaining agreements

• Deferred funding

• New funding for programs and initiatives per the Service Agreement

Explanations of major variances


a) The $2.06M (22%) increase in revenue is due to reimbursements for PBS drugs, specific purpose funding to implement ICT related projects, FSR project, strong private inpatient activity, growth in child dental benefit scheme and general practice billing in 2017-18.

b) The $1.1M (15%) increase in grant revenue is due to additional preventative health funding for Mens Health initiatives and Breast Care program in 2017-18. The increase is impacted by the inclusion of good and services received below fair value from the Department of Health, and the removal of the COAG 19-2 initiative at Roma Hospital.

c) The decrease in employee expenses of $0.987M (12%) represents the reclassification of actuals for Health service employee expenses in 2017-18.

d) The increased health services labour impact of $2.955M (4%) is due to expanded health services in South West HHS including increased SWHHS operated medical practices, mental health integration, medical services and the delivery of various nursing workforce enhancement programs.

e) The increase $5.03M (11%) in supplies and services is due to an increase in expenditure for e-health levies, electricity, high cost drugs, minor clinical equipment and travel.

f) The increase in other expenses $1.87M (138%) is largely due to the inclusion of good and services received below fair value from the Department of Health. This amount is a non-cash expense offset by additional non-cash revenue as detailed in note (b) above and was not included in budget.


g) The increase of $66.03M (77%) in property, plant and equipment is due to opening balance impact of revaluations and asset write-downs performed in 2016-17 and 2017-18 which were not included in the original 2017-18 Budget.

h) The increase in payables $0.95M (10%) is driven by increased health service labour expenses payable to DoH.


i) The increase in cash inflows from reimbursements for PBS drugs, specific purpose funding to implement ICT related projects, FSR project, strong private inpatient activity, growth in child dental benefit scheme and general practice billing in 2017-18 as detailed in note (a) above.

j) The decreased employee expenses impact of $1.07M (12%) is in line with the expenditure increases explained in notes (b) above and the decrease in health service labour mainly related to the reclassification of actuals for Health service employee expenses in 2017-18.

k) The increase $5.55M (12%) in supplies and services is due to expanded health services in South West HHS including increased SWHHS operated medical practices, mental health integration, medical services and the delivery of various nursing workforce enhancement programs as outlined in note (d) above.

l) The increased payments for property, plant and equipment of $4.93M (287%) is due the Capital projects delivered through Priority Capital Program and HHS capital projects undertaken by South West HHS. It includes medical equipment purchases through the Health Technology Equipment Replacement (HTER) program. These capital project works for 2017/18 include construction of patient accommodation, staff accommodation, kitchen replacements, ICT upgrades and CACH medical practice link.

m) The majority of the increase of $3.7M (268%) in equity injections is due to higher utilisation rate of Priority Capital Program and HTER funding. These programs are funded via equity injections.








41

Note 26. Subsequent events

There are no matters or circumstances that have arisen since 30 June 2018 that have significantly affected, or may significantly affect South West HHS operations, the results of those operations, or the HHS state of affairs in future financial years.



Note 26. Subsequent events


South West Hospital and Health ServiceFinancial Statements for the year ended 30 June 2018


INDEPENDENT AUDITOR’S REPORT

To the Board of South West Hospital and Health Service

Report on the audit of the financial report Opinion

I have audited the accompanying financial report of South West Hospital and Health Service.

In my opinion, the financial report:

a) gives a true and fair view of the entity's financial position as at 30 June 2018, and its financial performance and cash flows for the year then ended

b) complies with the Financial Accountability Act 2009, the Financial and Performance Management Standard 2009 and Australian Accounting Standards.

The financial report comprises the statement of financial position as at 30 June 2018, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes to the financial statements including summaries of significant accounting policies and other explanatory information, and the management certificate.

Basis for opinion

I conducted my audit in accordance with the Auditor-General of Queensland Auditing Standards, which incorporate the Australian Auditing Standards. My responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of my report.

I am independent of the entity in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to my audit of the financial report in Australia. I have also fulfilled my other ethical responsibilities in accordance with the Code and the Auditor-General of Queensland Auditing Standards.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Key audit matters

Key audit matters are those matters that, in my professional judgement, were of most significance in my audit of the financial report of the current period. I addressed these matters in the context of my audit of the financial report as a whole, and in forming my opinion thereon, and I do not provide a separate opinion on these matters.


Specialised buildings valuation ($134.8 million) Refer to Note 15 in the financial report.

Key audit matter How my audit addressed the key audit matter

Buildings were material to South West Hospital and Health Service at balance date, and were measured at fair value using the current replacement cost method. South West Hospital and Health Service performed a comprehensive revaluation of all its buildings this year.

The current replacement cost method comprises: Gross replacement cost, less Accumulated depreciation

South West Hospital and Health Service derived the gross replacement cost of its buildings at balance date using unit prices that required significant judgements for: identifying the components of

buildings with separately identifiable replacement costs

developing a unit rate for each of these components, including: o estimating the current cost for a

modern substitute (including locality factors and oncosts), expressed as a rate per unit (e.g. $/square metre);

o identifying whether the existing building contains obsolescence or less utility compared to the modern substitute, and if so estimating the adjustment to the unit rate required to reflect this difference.

The measurement of accumulated depreciation involved significant judgements for forecasting the remaining useful lives of building components. The significant judgements required for gross replacement cost and useful lives are also significant for calculating annual depreciation expense.

My procedures included, but were not limited to: Assessing the adequacy of management’s review of

the valuation process Assessing the appropriateness of the components of

buildings used for measuring gross replacement cost with reference to common industry practices.

Assessing the competence, capabilities and objectivity of the experts used to develop the models.

Reviewing the scope and instructions provided to the valuer, and obtaining an understanding of the methodology used and assessing its appropriateness with reference to common industry practices.

For unit rates associated with buildings that were comprehensively revalued this year: o On a sample basis, evaluating the relevance,

completeness and accuracy of source data used to derive the unit rate of the: modern substitute (including locality factors

and oncosts) adjustment for excess quality or

obsolescence. Evaluating useful life estimates for reasonableness

by: o Reviewing management’s annual assessment

of useful lives. o At an aggregated level, reviewing asset

management plans for consistency between renewal budgets and the gross replacement cost of assets.

o Testing that no asset still in use has reached or exceeded its useful life.

o Enquiring of management about their plans for assets that are nearing the end of their useful life.

o Reviewing assets with an inconsistent relationship between condition and remaining useful life.

Where changes in useful lives were identified, evaluating whether they were supported by appropriate evidence.


Other information

Other information comprises the information included in the entity’s annual report for the year ended 30 June 2018, but does not include the financial report and my auditor’s report thereon.

Those charged with governance are responsible for the other information.

My opinion on the financial report does not cover the other information and accordingly I do not express any form of assurance conclusion thereon.

In connection with my audit of the financial report, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or my knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact.

I have nothing to report in this regard.

Responsibilities of the Board for the financial report

The Board is responsible for the preparation of the financial report that gives a true and fair view in accordance with the Financial Accountability Act 2009, the Financial and Performance Management Standard 2009 and Australian Accounting Standards, and for such internal control as the Board determines is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error.

The Board is also responsible for assessing the entity's ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless it is intended to abolish the entity or to otherwise cease operations.

Auditor’s responsibilities for the audit of the financial report

My objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

As part of an audit in accordance with the Australian Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit. I also:

Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit

procedures that are appropriate in the circumstances, but not for expressing an opinion on the effectiveness of the entity's internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the entity.

Conclude on the appropriateness of the entity's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity's ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify my opinion. I base my conclusions on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the entity to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

I communicate with the Board regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

From the matters communicated with the Board, I determine those matters that were of most significance in the audit of the financial report of the current period and are therefore the key audit matters. I describe these matters in my auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, I determine that a matter should not be communicated in my report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on other legal and regulatory requirements In accordance with s.40 of the Auditor-General Act 2009, for the year ended 30 June 2018:

a) I received all the information and explanations I required. b) In my opinion, the prescribed requirements in relation to the establishment and keeping

of accounts were complied with in all material respects.

31 August 2018

C G Strickland Queensland Audit Office as delegate of the Auditor-General Brisbane


Other information

Other information comprises the information included in the entity’s annual report for the year ended 30 June 2018, but does not include the financial report and my auditor’s report thereon.

Those charged with governance are responsible for the other information.

My opinion on the financial report does not cover the other information and accordingly I do not express any form of assurance conclusion thereon.

In connection with my audit of the financial report, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or my knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact.

I have nothing to report in this regard.

Responsibilities of the Board for the financial report

The Board is responsible for the preparation of the financial report that gives a true and fair view in accordance with the Financial Accountability Act 2009, the Financial and Performance Management Standard 2009 and Australian Accounting Standards, and for such internal control as the Board determines is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error.

The Board is also responsible for assessing the entity's ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless it is intended to abolish the entity or to otherwise cease operations.

Auditor’s responsibilities for the audit of the financial report

My objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

As part of an audit in accordance with the Australian Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit. I also:

Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit

procedures that are appropriate in the circumstances, but not for expressing an opinion on the effectiveness of the entity's internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the entity.

Conclude on the appropriateness of the entity's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity's ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify my opinion. I base my conclusions on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the entity to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

I communicate with the Board regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

From the matters communicated with the Board, I determine those matters that were of most significance in the audit of the financial report of the current period and are therefore the key audit matters. I describe these matters in my auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, I determine that a matter should not be communicated in my report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on other legal and regulatory requirements In accordance with s.40 of the Auditor-General Act 2009, for the year ended 30 June 2018:

a) I received all the information and explanations I required. b) In my opinion, the prescribed requirements in relation to the establishment and keeping

of accounts were complied with in all material respects.

31 August 2018

C G Strickland Queensland Audit Office as delegate of the Auditor-General Brisbane


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ABF Activity Based Funding

ACHS The Australian Council on Healthcare Standards

Acute Care Care in which the clinical intent or treatment goal is to:• manage labour (obstetric)• cure illness or provide definitive

treatment of injury• perform surgery• relieve symptoms of illness or injury

(excluding palliative care)• reduce severity of an illness or injury• protect against exacerbation and/or

complication of an illness and/or injury• that could threaten life or normal

function• perform diagnostic or therapeutic

procedures.

AO Officer of the Order of Australia

AMS Aboriginal Medical Service

ATODS Alcohol, Tobacco and Other Drugs Services

BEMS Building, Engineering and Maintenance Services

CAN Community Advisory Network

DOH Department of Health

ED Emergency Department

FTE Full-time equivalent

GP General Practitioner

HiTH Hospital in the Home

HHS Hospital and Health Service / Health Service

HSCE Health Service Chief Executive

MOHRI Minimum obligatory human resource information

MS Multiple sclerosis

GlossaryNDIS National Disability Insurance Scheme

NEAT National Emergency Access Target

NEST National Elective Surgery Target

NSQHS National Safety and Quality Health Service Standards

OAM Medal of the Order of Australia

Outpatient Non-admitted health service provided or assessed by an individual at a hospital or health service facility

POST Patient Off Stretcher Time

Primary Health Care

The types of services delivered under primary health care are broad ranging and include: health promotion, prevention and screening, early intervention, treatment and management

QAO Queensland Audit Office

RACS Royal Australasian College of Surgeons

RFDS Royal Flying Doctor Service

Telehealth Delivery of health-related services and information via telecommunication technologies, including:• Live, audio and/or video inter-active

links for clinical consultations and educational purposes

• Store-and forward Telehealth, including digital images, video, audio and clinical (stored) on a client computer, then transmitted securely (forwarded) to a clinic at another location where they are studied by relevant specialists

• Teleradiology for remote reporting and clinical advice for diagnostic images

• Telehealth services and equipment to monitor people’s health in their home

WAU Weighted Activity Unit

WQPHN Western Queensland Primary Health Network

YTD Year to date


Summary of requirement Basis for requirement Annual report reference

Letter of compliance

A letter of compliance from the accountable officer or statutory body to the relevant Minister/s ARRs – section 7 1

Accessibility

Table of contents ARRs – section 9.1 2

Glossary ARRs – section 9.1 49

Public availability ARRs – section 9.2 Inside cover

Interpreter service statementQueensland Government Language Services PolicyARRs – section 9.3

Inside cover

Copyright notice Copyright Act 1968ARRs – section 9.4 Inside cover

Information LicensingQGEA – Information LicensingARRs – section 9.5

Inside cover

General information

Introductory Information ARRs – section 10.1 7

Agency role and main functions ARRs – section 10.2 7

Machinery of Government changes ARRs – section 31 and 32 N/A

Operating environment ARRs – section 10.3 8 – 18

Non-financial performance

Government’s objectives for the community ARRs – section 11.1 12

Other whole-of-government plans / specific initiatives ARRs – section 11.2 12

Agency objectives and performance indicators ARRs – section 11.3 15

Agency service areas and service standards ARRs – section 11.4 8 – 18

Financial performance Summary of financial performance ARRs – section 12.1 21

Governance – management and structure

Organisational structure ARRs – section 13.1 33

Executive management ARRs – section 13.2 41

Government bodies (statutory bodies and other entities) ARRs – section 13.3 N/A

Public Sector Ethics Act 1994Public Sector Ethics Act 1994ARRs – section 13.4

26

Queensland public service values ARRs – section 13.5 24

Compliance Checklist


Summary of requirement Basis for requirement Annual report reference

Governance – risk management and accountability

Risk management ARRs – section 14.1 42

Audit committee ARRs – section 14.2 37

Internal audit ARRs – section 14.3 43

External scrutiny ARRs – section 14.4 43

Information systems and record keeping ARRs – section 14.5 45

Governance – human resources

Strategic workforce planning and performance ARRs – section 15.1 24 – 32

Early retirement, redundancy and retrenchment

Directive 16/16 Early Retirement, Redundancy and RetrenchmentDirective 04/18 Early Retirement, Redundancy and Retrenchment ARRs – section 15.2

27

Open Data

Statement advising publication of information ARRs – section 16 23

Consultancies ARRs – section 33.1 https://data.qld.gov.au

Overseas travel ARRs – section 33.2 https://data.qld.gov.au

Queensland Language Services Policy ARRs – section 33.3 https://data.qld.gov.au

Financial statements

Certification of financial statements

FAA – section 62FPMS – sections 42, 43 and 50ARRs – section 17.1

89

Independent Auditor’s ReportFAA – section 62FPMS – section 50ARRs – section 17.2

90

FAA Financial Accountability Act 2009 (Qld)FPMS Financial and Performance Management Standard 2009ARRs Annual report requirements for Queensland Government agencies








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