Accrual-based financial statements enable an assessment of whether public hospitals are generating sufficient surpluses from operations to maintain services, fund asset maintenance and retire debt.
This Part analyses the financial results of Victoria’s public hospitals and their associated entities for the year-ended 30 June 2012.
The combined financial results for public hospitals in 2011–12 included:
Independent audit opinions add credibility to financial reports by providing reasonable assurance that the information reported is reliable. The quality of an entity’s reporting can be measured by the timeliness and accuracy of the preparation of the reports. This Part covers the results of the 2011–12 audits of the 87 public hospitals and their 26 associated entities. It also compares financial reporting practices in 2011–12 against better practice, legislated time lines and 2010–11 performance.
Public hospitals provide a range of services across metropolitan, regional and rural areas. Metropolitan and regional public hospitals largely provide acute health services, as well as a mix of mental health, subacute, community health services and aged care programs. Rural public hospitals generally offer a higher proportion of aged care and community health services.
This report includes the results of the financial audits of 87 Victorian public hospitals and their 26 associated entities, as set out in Figure 1A.
This report presents the results of our financial audits of 113 entities within the public hospital sector, comprising 87 public hospitals and 26 associated entities. It provides a detailed analysis of public hospital financial reporting, financial results, financial sustainability and internal controls. It informs Parliament about significant issues arising from the audits and complements the assurance provided through individual audit opinions included in the entities’ annual reports.
Ordered to be printed
VICTORIAN GOVERNMENT PRINTER November 2012
PP No 193, Session 2010–12
In accordance with section 16(3) of the Audit Act 1994 a copy of this report was provided to the Department of Health, Austin Health, Eastern Health, St Vincent’s, the Department of Treasury and Finance and the Environment Protection Authority with a request for submissions or comments.
The submission and comments provided are not subject to audit nor the evidentiary standards required to reach an audit conclusion. Responsibility for the accuracy, fairness and balance of those comments rests solely with the agency head.
Responses were received as follows:
As significant energy users and greenhouse gas emitters, it is important that health services improve energy efficiency. Achieving these improvements requires a planned approach that is effectively implemented.
As demand for health services has increased, so too has energy consumption. Several programs have operated for over a decade which aim to improve energy efficiency. Greater consideration has also been given to the environment and energy use in health service capital works. There is an expectation that efficiencies in health service energy use will be achieved.
Victorian public sector facilities account for around 1.5 per cent of Victoria’s total electricity and gas consumption. The sector's largest users are healthcare providers—health services and hospitals—which account for around 26 per cent of public sector energy consumption.
Figure 1A
Energy use distribution in the Victorian public sector