Victorian Auditor-General's Office

1 Background

1.1 Introduction

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.

Audit summary

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.

Appendix A. Audit Act 1994 section 16—submissions and comments

In addition to progressive engagement during the course of the audit, in accordance with section 16(3) of the Audit Act 1994 a copy of this report was provided to the Department of Health and four audited health services 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.

1 Background

1.1 Introduction

All of us, at some time, interact with public health services, as patients, family members or carers. In 2011, Victorian public hospitals admitted 1.55 million patients, with a further 930 000 patients seen in emergency departments, but not admitted. In 2011–12, the Victorian Government spent just under $9 billion, 21 per cent, of its total expenditure on acute public hospitals. As consumers and funders of public health services, Victorians should be able to be involved in making sure this essential service meets their needs.

Audit summary

Consumers should be meaningfully involved in decision-making about their health care and treatment, and broader health policy, planning and service delivery. There is growing recognition and evidence that consumer participation:

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