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Department of Health
Annual Report 2004   2005

Government of South Australia

Department of Health

Department of Health
11 Hindmarsh Square
Adelaide, South Australia 5000
Telephone (08) 8226 0795
Facsimile (08) 8226 6778

Copies of the annual report can be obtained 
by contacting the department (see contact 
details above) or via the Department of 
Health internet site: www.health.sa.gov.au

D
ep

artm
ent of H

ealth
 A

nnual R
ep

ort 2004   2005



Department of Health
Annual Report
2004 05

  Government of South Australia, September 2005

ISSN 1833-0002

This annual report was prepared by Parliamentary and Executive Services, 
Offi ce of the Chief Executive, Department of Health.

Copies of the annual report can be obtained by contacting the department 
(see contact details below) or via the Department of Health internet site: 
http://www.health.sa.gov.au

Department of Health
11 Hindmarsh Square
Adelaide, South Australia 5000
Telephone (08) 8226 0795
Facsimile (08) 8226 6778

Government of South Australia

Department of Health

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1
Annual Report 2004   2005

Health 2004 05 at a Glance
On any day, on average
  955 people were admitted to public hospitals

  1 300 people were treated in accident and emergency departments

  5 765 people were seen in hospital outpatient clinics

  Ambulances responded to 580 incidents, of which 41% were life threatening events

Each week
  74 patients were transferred by Royal Flying Doctor Service aircraft between metropolitan 

and rural health units

  9 437 people were visited in metropolitan Adelaide by Royal District Nursing Service 
(RDNS) nurses

  3 128 women were screened for cervical cancer

  1 330 women attended breast screening

  182 people requested, and were sent, Quitpacks 

In a year
  798 people received dialysis, usually three times per week

  2 172 people undertook courses of chemotherapy

  17 137 babies were born

  670 families enrolled in the parenting support Sustained Home Visiting Program

  30 people donated their organs after death providing for 100 transplantations

  Australian Red Cross collected 69 969 units of blood from donors for use in public 
and private hospitals

  766 686 doses of vaccines were distributed

And to promote wellbeing, in the year
  11 586 calls were made to Quitline 131848 resulting in 883 referrals to health professionals 

over the year

  10 workshops on healthy eating guidelines for schools and preschools were conducted 
throughout South Australia

  326 radio and 409 television advertisements promoting fruit and vegetable consumption 
were screened during May and June as part of the national Go for 2&amp;5  fruit and 
vegetable campaign

  Public awareness of the gambling helpline rose from 16% in 2003 to 38% in June 2005

  98% of South Australian families with a new baby were offered a home visit within two 
weeks of the birth



2
Department of Health 

Table of Contents
Health 2004 05 at a Glance 1

Table of Contents 2

Letter of Transmittal 3

Chief Executive s Report 4

Portfolio Responsibilities and Structure 8

Achievements for 2004 05 10

  South Australia s Strategic Plan 10
  Highlights in the 2005 06 Budget Portfolio Statements 21
  Other Achievements 25

Promoting Independence: Disability Action Plans for South Australia 34

Reconciliation 36

South Australian Health Commission (SAHC) Annual Report 2004 05 38

Appendix 1: Hospital Activity Statements 39

Appendix 2: Ministerial Portfolio Responsibilities 43

Appendix 3: Boards and Committees 44

Appendix 4: Human Resource Summary 46

  Employment Numbers 48
  Leave Management 49
  Voluntary Flexible Working Arrangements 50
  Training and Development 51
  Equal Opportunity Employment Programs 51
  Fraud 51
  Occupational Health, Safety and Welfare (OHS&amp;W) and Rehabilitation  52
  Overseas Travel Report 2004 05 for Public Sector Management Act Employees 54
  Energy Effi ciency Action Plan Report 56
  Urban Design Charter 58
  Asbestos Management in Government Buildings 58
  Sustainability Reporting 60
  Regional Impact Assessment Statements (RIAS) 60
  Freedom of Information 60

Appendix 5: Financial Performance 63

  Account Payment Performance 63
  Contractual Arrangements 63
  External Consultancies 64

Appendix 6: Reports and Publications 65

Appendix 7: Acronyms and Abbreviations, Glossary of Terms 67

Appendix 8: Index of Achievements 69

Financial Statements 71



3
Annual Report 2004   2005

Letter of Transmittal

Hon Lea Stevens MP
Minister for Health
Minister Assisting the Premier in Social Inclusion

Dear Minister

I am pleased to present to you the annual report for the Department of Health and the South 
Australian Health Commission for 2004 05.

This annual report provides a summary of the achievements for the fi nancial year, reporting 
on progress against targets in South Australia s Strategic Plan and expanding on performance 
highlights for 2004 05 listed in the 2005 06 Budget Portfolio Statement.

This report complies with the Public Sector Management Act 1995, the Public Finance and Audit Act 
1987, and the South Australian Health Commission Act 1976.

On behalf of all of the staff of the department, I commend this report to you as a fair and accurate 
representation of the efforts and achievements of the past fi nancial year.

Jim Birch
Chief Executive
Chair, South Australian Health Commission

Adelaide, September 2005



4
Department of Health 

Chief Executive s Report
The Department of Health commenced operation on 1 July 2004, 
being one of two departments created from the split of the 
Department of Human Services. 

The Department of Health was formed 
to progress reforms outlined in the 
Generational Health Review and to develop 
strategies announced in First Steps Forward. 
The Generational Health Review can be 
accessed at: www.dh.sa.gov.au/generational-
health-review/

Health care systems around the world in 
developed countries are being reformed in 
response to population ageing, increasing 
life expectancy, the development of new and 
more expensive technologies and rapidly 
increasing expectations of the community. 
Reforming workforce and information systems 
and developing models of care, which achieve 
a greater level of cooperation between the 
primary health care and acute care sectors, 
in both the private and the public sector, are 
major challenges. The stresses placed upon staff 
and expectations of the community will not be 
resolved without fundamental changes to the 
way in which the health system operates.

In South Australia the reform process has 
improved governance, service networks and 
system support, increasing the capacity of our 
health system to deal with increased demand 
as a result of the ageing population and people 
living with chronic diseases for many years. 
The reform improves effi ciency and 
effectiveness through eliminating overlaps in 
services and focusing effort on areas which will 
make a difference in the longer term.

Service reform has focused on integrating 
hospital and primary health care systems 
for delivery of services closer to home and 
expansion of service models to encompass 
health promotion, prevention, early 
intervention and treatment strategies that 
target the broader determinants of health and 
wellbeing. Primary health care networks are 
being established across metropolitan Adelaide 
to coordinate care provided by general 
practitioners, hospitals and community services. 
The focus is on coordinating care around 
chronic disease, with the aim of providing 
services and support in the community.

The primary health care approach gives a 
greater focus to the social determinants of health 
and wellbeing, addressing health inequalities, 
health promotion and disease prevention. 

Primary health care strategies include:

  avoiding people entering the hospital 
system through early detection and 
provision of support and treatment 
outside the hospital setting;

  assisting people to leave hospital more 
quickly with an appropriate level of 
community support; and 

  preventing people going to hospital through 
early intervention, health promotion and 
improved access to services.

As more than one third of the costs in 
South Australian hospitals are attributable to 
chronic diseases like cardiovascular conditions, 
diabetes, respiratory disease and arthritis, and 
expenditure on hospitals accounts for two 
thirds of the health budget, the challenge is to 
reduce the demand on the hospital sector. The 
development of networks within the community 
will improve coordination of services and assist 
people to manage chronic conditions, reducing 
the need for hospital admission. In addition 
to improving care for people with chronic 
conditions our efforts are focused on expanding 
health promotion activities to improve the 
wellbeing of the population. These efforts are 
strongly linked to targets in South Australia s 
Strategic Plan (www.saplan.org.au).

The shift toward primary health and outpatient 
services, even within the acute setting, is a 
national and international trend seen in health 
reform across the developed world. This means 
that the traditional way of counting activity 
by referring to bed numbers and occupied 
bed days is less meaningful as an indicator 
of productivity. In country South Australia 
for example, the number of beds available has 
become largely irrelevant given that the average 
percentage of occupancy over the last decade 
has been approximately 55%. If the health 
system in its new arrangements was working 
more effectively in its enhancement 



5
Annual Report 2004   2005

of the primary health care sector, the number of 
admissions would actually be decreasing. Over 
time, the health sector will need to develop 
more relevant indicators to represent its work. 
Accordingly, small changes in the way that 
activity is reported have been introduced in this 
annual report. These can be seen in the hospital 
activity statements in Appendix 1.

Three projects of importance in 2004 05 are 
the Every Chance for Every Child initiative, 
mental health reform and the investment in 
Open Architecture and Clinical Information 
System (OACIS).

The Every Chance for Every Child initiative is a 
world class program. The Children Youth and 
Women s Health Service has responsibility for 
managing the implementation of the program. 
As part of this, the Universal Home Visiting 
Program operates across the state and 98% of 
South Australian families with a new baby have 
been offered a home visit within two weeks of 
the birth. Over 600 families are participating in 
the Sustained Home Visiting Program (32 visits 
over two years). This program is a fi ne example 
of collaboration across government with the 
Department for Families and Communities 
(DFC) and the Department of Education and 
Children s Services (DECS). Early childhood 
research details the benefi ts of positive 
parenting on early learning, literacy and in 
reducing the onset of later chronic disease. 
Improvements have also been made in services 
to children and young people who have been 
victims of abuse. The department has been very 
active in implementing Keeping Them Safe, the 
government s child protection strategy.

Another area of investment during the year 
has been mental health. The main focus of 
mental health reform was improving services 
in mainstream hospitals and in the community 
as well as mental health facilities. There is 
great concern in the community about mental 
health, however decades of neglect will not 
be immediately resolved, particularly whilst 

the burden of disease is increasing. Treating 
and preventing mental illness is not solely the 
responsibility of the health system. It requires a 
response from all sectors of society. The causes 
of mental illness are many, including drug 
and alcohol abuse, homelessness, stressors 
of life such as unemployment and low self 
esteem, child abuse, violence in families and 
in some instances where there are no obvious 
reasons. This year a number of grants were 
made to non-government organisations to 
increase the capacity within the primary health 
care sector to deliver promotion, prevention 
and early intervention of mental illness with 
support from specialist mental health services. 
In addition the construction of the Margaret 
Tobin Centre at Flinders Medical Centre 
(FMC) and the Repatriation General Hospital 
(RGH) mental health facility were commenced. 
A range of other construction projects will 
commence across the metropolitan area over 
the next few years to provide modern, safe 
and high quality acute treatment facilities as 
close to home as possible for people who are 
mentally ill.

There is also a growing importance in 
information technology to provide patient 
information and records across a variety of 
settings. Investment in the OACIS patient 
information system and the potential to 
provide electronic patient information, subject 
to privacy considerations, across primary 
health care and hospital acute care settings 
will be essential in the future. In addition the 
enormous quantities of clinical information 
needed by clinicians necessitates the use of 
information technology to ensure best practice 
care processes are available at all times. 

In 2004 05 the department commenced the 
process of Building a Better Organisation 
(BaBO) to create an organisational structure 
to support the ongoing reform of the health 
system and inform the allocation of resources 
to regional health entities.

Jim Birch, Chief Executive



6
Department of Health 

The BaBO process channelled our thinking 
into changing the way we work by shifting 
resources to areas of highest priorities and 
improving the functional linking of business 
operations. We focused on:

  quality and safety in health care;

  state disaster planning, including 
preparations for a pandemic infl uenza 
outbreak;

  development of standards and targets 
around specifi c chronic disease categories;

  a strategy to coordinate the primary 
health care networks and chronic disease 
management initiatives;

  medical workforce recruitment and retention 
strategies, and an Aboriginal workforce 
strategy;

  developing mechanisms to enhance 
best practice;

  reviewing and consolidating our information 
sources databases and creating simplifi ed 
information reporting for executive decision-
making; and

  an information technology strategic plan and 
associated business plan.

The BaBO process will be completed in 2005 06. 

Central Offi ce
Five divisions were created through the BaBO 
organisational reform of the department:

  Health System Improvement and Reform;

  Health System Management;

  Public Health and Clinical Coordination;

  Aboriginal Health Division; and

  Offi ce of the Chief Executive.

This divisional structure supports the new 
strategic focus of the department, complements 
regional organisational structures and avoids 
overlap of functions between divisions.

New Appointments
During March and April 2005, the following 
departmental executive appointments were 
announced:

  Dr David Filby, Executive Director, Health 
System Improvement and Reform;

  Dr Tom Stubbs, Executive Director, Health 
System Management;

  Professor Chris Baggoley, Executive Director, 
Public Health and Clinical Coordination (and 
Chief Medical Offi cer);

  Mr Brian Dixon was re-appointed to the 
position of Executive Director Aboriginal 
Health Division; and

  Ms Ingrid Haythorpe, Director, Offi ce of the 
Chief Executive.

In May 2005, Associate Professor Jonathan 
Phillips resigned as Director, Mental Health 
to pursue clinical medicine and his consulting 
practice. Dr John Brayley was seconded from 
the FMC and appointed to this position. 
Dr Brayley will continue the development of 
strong policy and statewide planning directions, 
the establishment of system wide standards and 
enhancing the response to quality and safety in 
mental health service provision.

Metropolitan Regional Boards
From 1 July 2004 three metropolitan regional 
health boards became fully operational, 
replacing 12 hospital and health service boards:

  Central Northern Adelaide Health Service 
(CNAHS) encompassing Adelaide Central 
Community Health Service, Modbury Public 
Hospital (MPH), The Queen Elizabeth 
Hospital (TQEH), Lyell McEwin Health 
Service (LMHS), Northern Metropolitan 
Community Health Service, Royal Adelaide 
Hospital (RAH), and South Australian 
Dental Service;

  Children Youth and Women s Health Service 
(CYWHS) encompassing Child and Youth 
Health and the Women s and Children s 
Hospital; and

  Southern Adelaide Health Service (SAHS) 
encompassing Drug and Alcohol Services 
SA, Flinders Medical Centre and Noarlunga 
Health Service.

The creation of regional boards means that 
decisions about funding, resourcing and service 
delivery are based on the health needs of local 
communities rather than individual health 
institutions. This should lead to better health 
outcomes for South Australians and improved 
health system integration.

Three metropolitan regional chief executives 
were appointed as follows:

  Ms Heather Gray   CYWHS   
6 September 2004



7
Annual Report 2004   2005

  Mr David Swan   SAHS   
13 September 2004

  Dr David Panter   CNAHS   
18 October 2004

Resource shifts identifi ed in 2004 05 through 
BaBO include 50 employees moving from 
central offi ce to the three regions, BreastScreen 
South Australia moved to Central Northern 
Adelaide Health Service and the Drugs and 
Population Strategies area moved to Drug 
and Alcohol Services South Australia. This 
represents a total shift of 155.4 FTE s from the 
department to the regions.

The RGH remains an independent entity but 
works in close cooperation with the SAHS. 
The Institute of Medical and Veterinary 
Science (IMVS) and Metropolitan Domiciliary 
Care also remain separately incorporated. 
The South Australian Ambulance Service 
(SAAS) is incorporated under the Associations 
Incorporations Act 1985. 

The Intellectual Disability Services Council 
(IDSC), Independent Living Centre and Julia 
Farr Services are all incorporated entities 
under the South Australian Health Commission 
Act 1976. The Minister for Health has 
delegated powers in relation to these bodies 
to the Minister for Families and Communities 
and the Chief Executive, Department for 
Families and Communities.

Country Health Reform
Six key reform sub-projects were undertaken 
to improve health outcomes for country 
South Australians:

  Population Health Funding   the 
development of a population based 
resource allocation methodology 
tailored to country needs based on 
non-metropolitan evidence;

  Clinical Networks   to improve the 
coordination of clinical services through 
cooperation, integration and interaction 
between service providers and other 
enabling stakeholders;

  Mental Health   to improve the mental 
health and wellbeing of country 
communities by increasing the focus on 
promotion of mental health, prevention 
of mental illness and improvement of 
treatment options consumers receive; 

  Aboriginal Health   to improve the health 
and wellbeing of Aboriginal people in 
country South Australia with an emphasis 
on improving access to mainstream 
health services; 

  Primary Health Care   to develop an 
action plan enabling the establishment of 
a sustainable country primary health care 
framework; and

  Workforce   to build the capacity of the 
country health system, incorporating 
recruitment, retention, workforce 
development, evidence-based workforce 
planning, supply and preparation, and 
workforce and workplace redesign, policies 
and practices. 

A community participation sub-project 
is also being undertaken to develop 
mechanisms for engaging the community 
in health reform. The project involves 
development of principles, a framework, 
processes, communication and mechanisms 
for ongoing monitoring and review. 

The fi nal reports of the working parties have 
been endorsed by the Country Health Reform 
Implementation Group and are available from 
the country health reform internet site at: 
http://www.countryhealthsa.sa.gov.au/
country-health-reform2.asp

Change Champions Network
The Change Champions Network is a key 
communications tool for the department and 
health service staff, peak bodies, consumers 
and non-government organisations throughout 
the state to promote and participate in health 
reform. Through workshops, regular emails 
and newsletters, change champions promote 
health reform within their workplaces, local 
communities and change champion groups.

In 2004 05 the department held eight 
workshops across metropolitan and country 
South Australia, four of which focused on 
Aboriginal health reform. Other workshops 
focused on: 

  building a population health approach;

  chronic disease prevention and 
management;

  innovations in general practice; 

  workforce reform; and

  process re-engineering   the case for change 
and lessons learnt.



8
Department of Health 

Portfolio Responsibilities and Structure
Introduction
The annual report of the SAHC is included 
in this report. Metropolitan health regions 
and country hospitals and health units 
incorporated under the South Australian Health 
Commission Act 1976 and the IMVS under the 
Institute of Medical and Veterinary Science Act 
1982 produce and distribute their own annual 
reports, as does the SAAS.

Functions and Objectives
The Department of Health is responsible for 
the policy, administration and operation of 
statewide health services including public 
hospitals, community health services and 
public health systems to promote and 
improve wellbeing. 

The Department of Health Strategic Directions 
to 2006 were launched in May 2005 with the 
following directions:

  increase community inclusion and 
participation;

  collaborate and work in partnerships;

  direct resources to ensure access and equity;

  strengthen and reorient resources for 
prevention, early intervention and primary 
health care; and

  improve the quality and safety of services.

These directions provide a framework for 
planning and prioritising actions across South 
Australia s health system to maximise the 
outcomes of the health reform agenda and 
meet the health targets of South Australia s 
Strategic Plan. 

Structure
The department s organisational structure at 
30 June 2005 is detailed on page 9.

Hon Lea Stevens, MP



9
Annual Report 2004   2005

Organisational Chart
Department of Health at 30 June 2005

Minister for Health

Minister Assisting 
the Premier in 

Social Inclusion

Hon Lea Stevens MP

Chief Executive 
Department of Health

Chair SA Health 
Commission

Jim Birch

Minister Assisting 
in Mental Health

Hon Carmel Zollo MLC

Offi ce of the
Chief Executive

Director

Ingrid Haythorpe

Health System 
Improvement 

&amp; Reform

Executive Director

Dr David Filby

Health System 
Management

Executive Director

Dr Tom Stubbs

Aboriginal Health

Executive Director

Brian Dixon

Public Health 
&amp; 

Clinical 
Coordination

Executive Director

Prof 
Chris Baggoley

Incorporating Offi ce 
of Health Reform

Incorporating 
Offi ce of 

Country Health



10

Department of Health 

Achievements for 2004 05
During 2004 05 the department worked toward achieving objectives 
outlined in South Australia s Strategic Plan, which was released in March 
2004 (www.saplan.org.au), and undertook initiatives in accordance with 
targets in the budget and to progress priority reforms.

Achievements are reported in three sections below:

1. South Australia s Strategic Plan;

2. Budget Portfolio Statement 2005 06 Budget Paper 4, Volume 2   programs and highlights; and

3. Other achievements   additional key achievements grouped under topic headings.

South Australia s Strategic Plan
South Australia s Strategic Plan is about working together to improve the 
wellbeing and economic prosperity of South Australians. It encompasses 
six objectives representing challenges facing South Australia. 

1. Growing prosperity;

2. Improving wellbeing;

3. Attaining sustainability;

4. Fostering creativity;

5. Building communities; and

6. Expanding opportunities.

Objectives 2, 5 and 6 are particularly relevant 
to the work of the Department of Health. The 
department is working with state and territory 
governments, the Australian Government 
and the non-government sector to progress 
these targets. 

The health reform agenda in South Australia 
intersects with the targets set by South 
Australia s Strategic Plan. The main focus is 
initiatives to prevent lifestyle based illnesses 
and improve quality of life particularly among 
high risk groups.

Examples of progress to date are listed below.

Objective 2: Improving Wellbeing
Increase healthy life expectancy of 
South Australians to lead the nation 
within 10 years (target 2.2)

This target requires South Australia to have 
the highest health adjusted life expectancy in 
Australia within 10 years. Health Adjusted Life 
Expectancy (HALE) summarises the expected 

number of years to be lived in the equivalent of 
 full health . The target is not just about living 
longer, but living with better health. Activities 
to prevent and improve the management of 
chronic diseases are health reform initiatives 
aligned to this target.

Contributing factors:

  chronic diseases, mental health conditions 
and cancer, attributable to a large extent 
to lifestyle and social factors (eg physical 
activity, obesity, smoking, nutrition).

Action:

  implementing home and community support 
programs to avoid hospital admissions;

  enrolling people who have (or who are at 
risk of) chronic diseases in metropolitan 
coordinated community support services;

  recruiting teams to provide coordinated 
services to people with chronic diseases; and

  electronic linking of health service 
information to provide immediate access 
to client records.

Achievements include:

Completed Stage 2 of South Australia 
Burden of Disease Study

Chronic conditions represent 70% of the overall 
burden of disease and disability in South 
Australia. More than 50% of South Australians 



11

Annual Report 2004   2005

have a chronic disease and many people have 
more than one condition.

The  South Australia Burden of Disease study 
used internationally recognised methods to 
measure population health status for South 
Australia. Stage 2 of the study was completed 
in 2004 05 providing a comprehensive range of 
population health estimates for 1999 2001 for 
geographical areas and target groups including 
the South Australian health regions, selected 
health subregions and the  South Australian 
Divisions of General Practice. These estimates 
allow for comparison of geographical regions 
and target groups of specifi ed illnesses, 
injuries and risk factors. They are available on 
the internet at http://www.health.sa.gov.au/
burdenofdisease/DesktopDefault.aspx 

A variety of workshops, seminars and 
professional presentations were undertaken 
to promote understanding of the methods, 
analysis of results and appropriate application 
of estimates. Work commenced on updating 
state and small area burden of disease estimates 
for 2000 2002.

Second wave of data collection for the North West 
Adelaide Health Study

The North West Adelaide Health Study is a 
longitudinal, biomedical, cohort study being 
undertaken in Adelaide s north western 
suburbs. In 2004 the second wave of data 
collection commenced. This data will provide 
an understanding of priority chronic diseases 
and risk factors, including diabetes, arthritis, 
osteoporosis, asthma and obesity across the 
continuum to improve capacity for prevention, 
early detection and management of chronic 
disease in line with the National Chronic 
Disease Strategy.

Increased investment in mental health, primary 
health care networks and community based 
support packages

Primary health care networks are being 
established to manage chronic diseases 
including mental health and depression. 
South Australia s Chronic Disease Strategy 
promotes increased system coordination and 
integration, self management approaches and 
primary health care capacity for prevention, 
early detection and management, in line with 
the National Chronic Disease Strategy.

Close working partnerships have been 
established with the South Australian Divisions 
of General Practice, general practitioners and 

the Australian Government to enhance the 
role of general practitioners in the delivery 
of primary mental health care services.

The government allocated $14 million for 
mental health non-government organisations 
to provide additional intensive support 
packages in the community. These packages 
involve support from specialist mental 
health services, disability support services 
and housing, and target those people who 
no longer require 24 hour clinical care in a 
hospital environment. The range and scope of 
support varies from minimum care up to eight 
hours per week, to moderate care up to 16 
hours per week and high care up to 32 hours 
per week.

Implemented the Community Based Information 
System (CBIS) across metropolitan Adelaide 
to improve continuity of care for mental 
health consumers

A number of separate systems were combined 
to create the CBIS, a central system recording 
assessments and treatments of mental 
health consumers.

CBIS helps support health agencies in the 
metropolitan area by storing administrative 
and clinical information related to client 
care, including client history, clients of 
concern notifi cation and discharge planning. 
Management of risk to staff and clients is 
improved by timely access to accurate, 
alert and legal order information. CBIS 
enables effi cient sharing of information across 
mental health intervention services 24 hours 
a day, seven days a week. It is part of the 
national mental health reform agenda and 
supports reporting of national minimum 
data set measures and national outcomes and 
casemix collection statistics. 

CBIS has been implemented across 
metropolitan mental health units and Southern 
Child and Adolescent Mental Health Services.

HealthConnect 

HealthConnect is a national program for secure 
information technology connectivity between 
health care providers and provides a statewide 
electronic care planning tool.

In 2004 05, the department established the 
HealthConnect Program Offi ce and negotiated 
$13 million in commonwealth funding for 
the implementation of HealthConnect in 
South Australia over three years. 



12

Department of Health 

Existing provider networks established through 
the Primary Health Care Networks will be used 
to facilitate the engagement of providers and 
assist in the fast-tracking of the HealthConnect 
deployment in South Australia. Initial 
deliverables include, but are not limited to:

  the deployment of secure broadband to up 
to 500 general practices, 200 pharmacies and 
600 other providers;

  the implementation and deployment of 
an electronic care planning system and 
referral system; and

  the development of linkages with 
South Australian state systems such as the 
Human Services Finder, the Child Health 
Information Management System (eCHIMS) 
and OACIS.

Infant Mortality   continue to be the best 
performing state in Australia (target 2.3) 

This target requires South Australia to 
continue to have the lowest infant mortality 
rate in Australia. The target was based on 
South Australia having, in 2000 01, the lowest 
rate amongst states, which had been the case for 
most of the 1990s. The target is supported by 
strategies that invest in the early years by:

  providing more effective support for families;

  strengthening the capacity of communities 
to be more supportive of families; and

  providing more effective and better 
coordinated programs and services for 
children and families.

Contributing factors:

  smoking and alcohol consumption 
during pregnancy;

  inadequate antenatal care;

  poor infant nutrition;

  not breastfeeding;

  low birth weight;

  inadequate preparation for post-birth care;

  social, economic and environmental 
factors that make post-birth care diffi cult; 
and

  other specifi c risk factors (eg dysfunctional 
families and failure to thrive).

Action:

  home visiting to South Australian families 
with a new baby;

  Sustained home visiting to  at risk  families;

  with the Department of Education and 
Children s Services, providing information 
and support to remote Aboriginal 
communities; and

  media campaigns to reduce smoking and 
alcohol consumption during pregnancy.

Achievements include:

Rolled out the Universal and Sustained Home 
Visiting Programs

The department has invested $2.7 million 
towards the establishment of universal home 
visiting and $3 million towards sustained 
home visiting programs as part of the Every 
Chance for Every Child commitment. 

The Universal Home Visiting and Sustained 
Home Visiting Program is an intervention to 
support positive parenting by facilitating parent 
and infant attachment and enhancing family 
capacity and resilience. Teenagers under 17 years 
of age and Aboriginal mothers are 
priority groups for the Sustained Home 
Visiting Program. By 30 June 2005, 670 
families were participating in the program.

The Universal Home Visiting Program offers 
families of newborn babies a home visit by a 
nurse. During 2004 05, 98% of all SA families 
with a new baby have been offered a home visit 
within two weeks of the birth.

Sustained home visiting provides assistance 
through nurse home visits to families with 
newborn children to support early parenting 
over the fi rst two years of life and initiate 
early referral to other services as appropriate. 
In 2004 05 sustained home visiting was 
implemented to families in outer northern 
metropolitan suburbs, outer southern 
metropolitan suburbs, the Riverland, Port 
Augusta and Whyalla. Enrolment and 
participation in family home visiting of the 
primary caregiver of Aboriginal children has 
been high. The acceptance rate for Aboriginal 
families is 84% (compared to 78% for non-
Aboriginal families) and a retention rate of 86% 
(compared to 79% for non-Aboriginal families). 

The Sustained Home Visiting Program responds 
to the particular needs of the child and 
family, such as housing and benefi ts, or early 
relationships with the child. Support may be 
provided for disability, post-natal depression, 
neglect and abuse, substance abuse and potential 
insecure attachment to the child.



13

Annual Report 2004   2005

CYWHS now has responsibility for 
these programs.

Progressed strategic service planning model for 
families with infants (0 2 years) identifi ed as being 
at risk of harm

Vulnerable infants and children are part 
of the population that Keeping Them Safe is 
aimed at protecting. Work has commenced in 
partnership with the Department for Families 
and Communities (DFC) to develop a strategic 
service planning model for families with 
infants (0 2 years) identifi ed as having risk 
factors and/or adversity that increases the 
child s vulnerability and risk of harm. This 
vulnerability extends to children that are 
notifi ed to Children Youth and Family Services 
as  high risk infants .

The service plan will be based on available 
evidence and produce a strategic model of 
service provision to meet the needs of 
vulnerable children and their families. The 
model will ensure agencies, both government 
and non-government have a networked and 
co-ordinated approach to identifi ed children.

Progressed the Healthy Ways project: Health 
Education Partnership Initiative to improve 
Aboriginal maternal and child health

Healthy Ways has four objectives identifi ed 
through community consultation and 
supported by senior women within the 
Aboriginal community:

  Mums to be   understanding pregnancy and 
looking after yourself and infant health 

  Growing Little Kids Up   increasing women s 
confi dence in supporting their infants  and 
children s growth and development; 

  Kids and Young Mums Learning   safe 
space and private time for kids and mums 
learning together; and

  The School Building Bridges   peer education 
and support in and out of school around 
Healthy Ways objectives. 

Seven communities are participating: 
Coober Pedy, Marree, Oodnadatta, Whyalla, 
Yalata, Oak Valley and Anangu Pitjantjatjara 
Yankunyjatjara (APY) Lands. In 2004 05:

  workforce capacity has increased with 
12 women having undertaken or undergoing 
health related training (eg childcare, nursing, 
midwifery, aged care, and community/
family services). This includes four women at 
Marree, two at Coober Pedy, one at Whyalla 
and fi ve on the APY Lands;

  women s health advisory groups have been 
established in Yalata, Whyalla, Coober Pedy, 
Marree and the APY Lands as a direct result 
of the Healthy Ways project;

  dietician support is now regularly provided 
to women and children in communities;

  safe gathering places for women and babies 
have been established; and

  school attendance has been increased in 
Coober Pedy and Yalata and skin conditions 
such as scabies have been reduced by the 
hygiene uniform and meals programs in 
Yalata and Oak Valley.

Developed the online training program Baby 
Friendly Hospital Initiative which trains midwives 
to encourage and support breastfeeding

The Baby Friendly Hospital Initiative (BFHI) 
is a quality improvement measure to assist 
hospitals to reorient policies and practices to 
support, encourage and promote breastfeeding. 
Evidence shows that hospitals with BFHI 
accreditation have higher rates of initiation of 
breastfeeding than non-accredited facilities.

To achieve accreditation hospitals and health 
services are required to educate all staff who 
have contact with women antenatally and 
following delivery to ensure they follow best 
practice in breastfeeding support for women. 
An online training program has been developed 
by CYWHS and Technical and Further 
Education (TAFE) South Australia and 1 500 



14

Department of Health 

free registrations have been provided to 
public hospitals and health services to support 
staff training. 

This project complements other breastfeeding 
activities including resources for Aboriginal 
health workers on breastfeeding, breastfeeding 
policy development, support for the 
Australian Breastfeeding Association to 
develop breastfeeding friendly public places 
and programs to support departmental 
staff returning to work whilst continuing 
breastfeeding.

Developed a statewide framework for improving 
Aboriginal and Torres Strait Islander birthing 
outcomes

The incidence of low birth weight among 
Aboriginal live births is two to three times 
higher than that of non-Aboriginal live 
births for 1997 2001. A statewide framework, 
Improving Aboriginal and Torres Strait Islander 
Birthing Outcomes is being developed to 
improve birthing outcomes through reducing 
perinatal mortality and low birth weight and 
increasing access to antenatal services.

Improving Aboriginal and Torres Strait 
Islander birthing outcomes addresses the 
incidence of low birth weight and perinatal 
mortality by increasing access to antenatal and 
maternity services.

The Healthy Ways project is an education/
health partnership to increase Aboriginal 
women s understanding of how to be healthy 
during pregnancy and have a healthy baby of 
healthy weight. 

Whyalla Indigenous Antenatal Program

The Whyalla Indigenous Antenatal Program 
is part of the wider statewide framework 
for improving Aboriginal and Torres Strait 
Islander birthing outcomes and its expansion 
to include post natal support was funded 
under the Healthy Ways project.

Students participating in the Whyalla 
Indigenous Antenatal Program built links 
with the local high school. Program objectives 
include:

  improve maternal and infant health and 
promote supportive environments for 
raising healthy children; and

  strengthen and further expand a functional 
referral network between service providers.

Developed evidence based best practice Perinatal 
Practice Guidelines

In December 2004 the Healthy Start Clinical 
Reference Group launched Perinatal Practice 
Guidelines and a guidelines website at 
http://www.health.sa.gov.au/ppg/

The guidelines were developed in collaboration 
with major metropolitan hospitals and in 
consultation with relevant stakeholders in 
the public and private sectors. They outline 
principles for managing pregnancy and newborn 
related conditions and procedures governed by 
medical authorisation. 

The Perinatal Practice Guidelines are designed as 
a guide for obstetricians, general practitioners, 
trainee medical offi cers, registered midwives and 
pharmacists. The guidelines enable clinicians 
throughout South Australia to have access to a 
uniform process of clinical assessment, decision-
making and practice. Clinicians are able to use 
them within the context of offering individual 
care for pregnant women and their babies.

Uniform statewide protocols of this nature have 
not previously been available in South Australia 
and are a fi rst in Australia. Interstate hospitals 
have their own protocols, but there are no 
uniform protocols in other states and territories 
that clinicians are able to refer to that have been 
collaboratively developed for universal use.

Psychological Distress   equal or lower 
than the Australian average within 10 years 
(target 2.4) 

This target requires that the level of 
psychological distress in the South Australian 
population, as measured by the Kessler 
Psychological Distress 10 item scale (K10) should 
be not greater than the Australian average. 

Contributing factors:

  social factors such as low income, 
unemployment, inability to work, 
low levels of education, living alone;

  clinical mental health problems;

  chronic health conditions 
(eg diabetes and asthma); and

  substance abuse.

Action:

  focusing upon health promotion, early 
detection of mental illness and intervention 
and providing support to enable those with 



15

Annual Report 2004   2005

a mental illness to avoid hospitalisation and 
receive treatment within the community; 

  working across government to provide a 
coordinated system of care;

  provided $25 million grant funding to 
non-government organisations for intensive 
support and assistance to mental health 
consumers and forensic patients and to 
expand programs under beyondblue   
the national depression initiative;

  provided $5 million recurrent funding to 
increase staffi ng in Assessment and Crisis 
Intervention Services;

  improving links between community mental 
health clinicians and general practice to 
prevent hospital admission and improve 
treatment; 

  expanding and redeveloping mental health 
inpatient facilities;

  funding support services to develop 
independent living skills and enable people 
to exit residential systems; and

  increased respite care and supported 
accommodation.

Achievements include:

Monitoring the level of psychological distress

The monitoring of psychological distress 
using the K10 is being undertaken by the 
Department of Health using the South 
Australian Monitoring and Surveillance System 
(SAMSS) conducted by the Population Research 
and Outcome Studies Unit. 

$25 million funding for mental health services

The $25 million funding for mental health 
services includes:

  $14 million allocated to non-government 
organisations to provide extra packages of 
care to enable mental health consumers and 
forensic patients to receive more intensive 
support and assistance in the community;

  $2 million for group-based day rehabilitation 
programs   programs run by non-government 
organisations incorporating specialist 
mental health expertise which will focus on 
relapse prevention, illness and medication 
management; 

  $3.25 million for general practitioner 
partnership programs using the Divisions 
of General Practice, including: 

  $1.25 million for shared care programs, 
where care will be coordinated between 
general practitioners and specialist 
services; and 

  $2 million to employ allied mental health 
professionals (nurses, social workers, 
occupational therapists) to work with 
general practitioners and specialist mental 
health services.

  $1 million to expand the General Practitioner 
Access Program   operating in the western 
suburbs, the program will be expanded to the 
outer southern suburbs. It targets additional 
support for people with a psychiatric 
disability but who are generally not ongoing 
clients of mental health services;

  $1 million for peer support workers   training 
and employment of peer support workers to 
work alongside mental health services; 

  $2.25 million for carers   includes $1 million 
for in-home respite for carers of people with 
mental illness and consumers of mental 
health services, and $1.25 million to non-
government organisations to increase support 
and assistance to carers; 

  $1 million for beyondblue programs focused 
on prevention, early intervention and 
reduction of stigma; and 

  $500,000 for programs targeting mums 
and young babies and people with 
multiple needs. 

$5 million recurrent funding allocated for clinical 
mental health services

$5 million recurrent funding has been 
invested in clinical mental health services. 
These funds will: 

  provide a joint mental health and SAAS 
response to crisis management by increasing 
the numbers of staff within Assessment 
and Crisis Intervention Services. This will 
ensure better integration of services, avert 
demand away from emergency departments 
and provide people with better support at 
home; and

  bolster the hospital-at-home program to 
further prevent hospital admission and 
enable quicker recovery from illness. In 
addition post hospital intensive community 
treatment and support will be enhanced by 
improving links between community mental 
health clinicians and general practice. 



16

Department of Health 

Additional funding in 2004 05

In 2004 05 the following funding 
was provided:

  $2.75 million for general practice to 
implement chronic disease self-management 
and physical wellbeing programs, 

  $1 million for non-government 
organisations, specialist mental health and 
general practice to provide coordinated 
clinical and psychosocial support services 
for mental health consumers with 
vulnerable housing status;

  $500 000 to improve community based 
supports relating to perinatal and infant 
health by supporting young people at risk 
of post natal depression; and

  $300 000 to improve the capacity of 
specialist mental health services to 
prevent suicide and deliberate self harm 
among mental health consumers with low 
prevalence disorders.

Undertook a Review of Mental Health Legislation 
in South Australia

The review of mental health legislation 
commissioned by the Department of Health 
in 2004 was completed. The review involved 
extensive consultation in metropolitan and 
country areas with carer and consumer 
groups, Aboriginal organisations, professional 
organisations and government agencies. The 
review committee considered 60 submissions.

In April 2005 the report Paving the Way, Review 
of Mental Health Legislation in South Australia 
was fi nalised and circulated to stakeholders.

Finalised the Forensic Mental Health Policy 
and began work towards service modelling and 
infrastructure requirements

In late 2004, a four year plan was initiated to 
design and build a new high security forensic 
facility and a new secure rehabilitation facility. 
The service model for a high security extended 
care forensic facility is complete. The facility 
will provide a humane, highly supervised and 
supportive secure environment with active 
treatment and rehabilitation programs for 
forensic patients.

Development of a service care model for the 
provision of mental health assessment and 
treatment services to prisoners and forensic 
patients commenced.

A Mental Heath Impairment Reference 
Committee has been established to address 
coordination of services across government 
portfolios and improve mental health outcomes 
for prisoners and offenders.

Reduce the percentage of young cigarette 
smokers by 10% within 10 years (target 2.5) 

This target requires a 10% reduction in cigarette 
smoking by young people (considered to be 
15 29 year olds for purposes of target 
monitoring and reporting) within 10 years.

Contributing factors:

  availability of tobacco products;

  addictive properties and lack of product 
chemical regulation;

  continued exposure to tobacco marketing 
(eg through movies, the internet, nightclubs 
and through packet displays in stores);

  peer pressure;

  adult role models (eg parents who smoke); 
and

  psychological distress.

Action:

  smoke-free legislation;

  enforcement of smoking regulations. 
Department staff carry out random 
surveillance and respond to complaints in 
relation to the tobacco laws in South Australia;

  assisting high-risk groups to quit smoking;

  alternative treatment programs trials such as 
Quit SA/nicotine replacement therapy trials 
providing nicotine patches or lozenges to 
disadvantaged populations;

  media campaigns promoting risks of smoking 
and encouraging cessation; 

  provided funding to Quit SA to provide 
Quitline, self help booklets and media 
campaigns; and

  involving the communities where there 
is a high prevalence of tobacco use 
(eg Aboriginal communities and people 
with a mental illness) in the development 
of messages and services.

Achievements include:

Amendments to Tobacco Products Regulation 
Act 1997

In October 2004 amendments to the Tobacco 
Products Regulation Act 1997 were passed. 



17

Annual Report 2004   2005

These amendments included the banning of 
smoking in all enclosed workplaces and public 
places in South Australia from 6 December 
2004. Liquor licensed hospitality venues will 
phase in smoking bans until a complete ban 
comes into effect from 31 October 2007. A 
communication campaign was developed to 
inform businesses and the general public of 
these changes. 

On 31 March 2005 reforms to the selling and 
advertising of tobacco products commenced:

  retail tobacco merchants (including hotels) 
must remove all forms of tobacco advertising, 
including tobacco branded posters or signs, 
bunting, light boxes, clocks and counter mats;

  liquor licensed premises can only have one 
vending machine;

  tobacco vending machines will be restricted 
to gaming rooms, or must be set up so that 
they can only be operated by obtaining 
assistance from staff;

  tobacco retail outlets will have limited 
points of tobacco sale under their licence 
conditions; and

  when licences are renewed each tobacco 
retail outlet must have their own tobacco 
merchant s license. Licenses must be 
displayed next to each point of sale.

From 30 June 2005, venues and individuals who 
do not comply with the new laws will be fi ned. 
Retailers who do not comply with tobacco 
advertising bans will also be fi ned. Fines will 
vary depending on the offence and can be up 
to $200 for individuals and $1 250 for 
employers and hospitality operators.

Developed South Australia Tobacco Control 
Strategy 2005 2010

The Ministerial Reference Group on Tobacco 
developed the South Australia Tobacco Control 
Strategy 2005 2010 to improve the health of 
South Australians by reducing the harm 
caused by tobacco smoking, especially 
among high prevalence groups. The Minister 
for Health released the draft for consultation 
on World No Tobacco Day (31 May 2005).

In 2004 05 the daily smoking rate in 
South Australia was 16.5%, compared to the 
national average of 17.4% (AIHW 2004 Survey).

Launched the Smoking in the Movies Campaign

The Smoking in the Movies Campaign 
was launched on 16 March 2005 as part of 

National Youth Tobacco Free Day. The movie 
advertisement, originally produced by the 
Cancer Council of NSW, is aimed at deterring 
young people from taking up smoking and 
urges them not to be  sucked in  by any 
smoking in movies they are about to see. 
A recent Australian study found that tobacco 
use was portrayed as socially acceptable in 
95% of all smoking scenes in movies. Research 
also shows eight out of 10 new smokers are 
children or adolescents. It also shows that most 
people start smoking in their teens and if they 
have not started smoking by the time that they 
are 18 they are unlikely to take up the habit. 

Reduce the percentage of South Australians 
who are overweight or obese by 10% within 
10 years (target 2.6) 

This target requires, within 10 years, a 10% 
reduction of South Australians who are either 
overweight or obese. This target relates to all 
South Australians. Baseline and monitoring 
data is for South Australians aged 18 years 
and over. Promoting healthy weight and 
reducing levels of overweight and obesity (and 
hence chronic disease) requires a whole of 
government (departments of health, education, 
planning, local government, agriculture, 
families and communities at local, state and 
national levels) approach involving policy, 
legislation, program, workforce development 
and social marketing strategies.

Contributing factors:

  poor nutrition;

  insuffi cient physical activity;

  environments that support unhealthy foods 
and inactivity;

  excessive promotion of unhealthy food 
choices;

  obesity in childhood leading to adult 
obesity; and

  overweight during pregnancy.



18

Department of Health 

Action:

  promoting the community s understanding 
of issues around obesity through marketing;

  working with schools and communities 
to develop healthy eating and physical 
activity solutions;

  providing resources to develop healthy 
eating and physical activity solutions for 
young children; and

  improving food labelling through 
national regulation.

Achievements include:

Developed healthy eating guidelines for schools 
and preschools

The department worked in collaboration with 
DECS to develop the Healthy Eating Guidelines 
for Schools and Preschools. The guidelines were 
launched on 6 September 2004 following 
extensive consultation with school canteen 
networks, parents, the Cancer Council, the 
Health Foundation and state, independent 
and Catholic schools. 

The guidelines provide advice to schools and 
preschools about how to promote healthy eating 
in the curriculum, the school environment and 
in relationships with families, communities 
and businesses. The guidelines contribute 
to reducing the number of people who are 
overweight, improving nutrition for children, 
increasing fruit and vegetable consumption, 
and promoting food safety. 

The benefi ts of healthy eating include greater 
life expectancy, less fi nancial cost to the health 
system and greater productivity.

Launched the national fruit and vegetable campaign 
  Go for 2&amp;5 . 

In April 2005 the department launched the 
national fruit and vegetable consumption 
campaign, Go for 2&amp;5 . The campaign aims to 
encourage people to include more fruit and 
vegetables in their diet and highlights how 
easy it is to eat the recommended two serves 
of fruit and fi ve serves of vegetables each day. 
A diet high in fruit and vegetables is an 
essential part of maintaining a healthy weight 
as well as having other health benefi ts. 
Increasing fruit and vegetable intake is a 
nutrition priority and may be the single most 
important dietary change needed to reduce 
the risk of major diseases such as coronary 
heart disease, type 2 diabetes and obesity. 

The campaign features television, print and 
radio advertising throughout shopping 
centres, schools and at community events. 

Launched State Physical Activity Strategy

The department plays a key role in the 
whole of government strategy promoting 
physical activity to the community. The 
State Physical Activity Strategy was launched 
in September 2004 and is a key part of the 
government s commitment to addressing 
the lack of physical activity by over half of 
all adult South Australians. Physical activity 
is a major factor contributing to healthy 
weight. The strategy provides a framework 
for a coordinated, collaborative and effi cient 
approach to this issue across government 
and for associations and community groups 
that play a role in addressing physical 
activity levels.

Launched Be Active   Take Steps

Be Active   Take Steps was launched by the 
Minister for Health on 18 November 2004. 
The program was developed by the Centre 
of Health Promotion at the Women s and 
Children s Hospital (W&amp;CH) and funded 
by the department. The program is based 
on research conducted in partnership with 
the University of South Australia and eight 
primary schools. The program ran for eight to 
10 weeks and encourages children to reach the 
National Physical Activity recommendations 
of accumulating at least 60 minutes of physical 
activity every day. Schools were provided with 
a resource package containing a pedometer 
and diary for children and a resource book for 
teachers containing ideas for practical physical 
activity, information and activity sheets. 
Children were asked to count and record their 
steps and then set personal goals to increase 
their physical activity. 

The study found that the number of daily steps 
taken by children aged 10 12 years ranged 
from 8 000 to 15 000. The average number of 
daily steps taken was 12 000 with boys taking 
more steps than girls.

Certifi cates awarded to older South Australians 
who fi nished a pilot physical activity program

The $5 500 pilot project targeted at older 
people ran for 10 weeks and had 14 
participants. It involved three physical activity 
sessions each week including a mall walk, a 
falls prevention class and a weights/circuit 



19

Annual Report 2004   2005

session. These sessions incorporated aerobic, 
strengthening/fl exibility, posture, core control 
and balance exercises. Regular physical 
activity is the most signifi cant way for people 
to infl uence their health. By keeping fi t you 
maintain your mobility and minimise the 
risk of future ill health and this is particularly 
benefi cial in preventing falls.

The program was supported by the 
Department of Health, Active Ageing, 
Northern Division of General Practitioners 
and The Lodge Fitness Centre.

Ongoing monitoring of overweight, obesity, 
physical activity and nutrition

Ongoing monitoring of overweight, obesity, 
physical activity and nutrition among 
South Australians is being conducted by 
the Population Research and Outcome 
Studies Unit using the SAMSS. As part of 
the State Physical Activity Strategy, a survey 
of South Australian adults was undertaken 
to determine the levels of suffi cient physical 
activity. The report is available at 
http://www.dh.sa.gov.au/pehs/PROS/
physical-activ-sa-adults05.pdf

Objective 5: Building Communities
Increase the number of women on all State 
Government boards and committees to 50% 
on average by 2006 (target 5.1)

At 30 June 2005 there were 66 health portfolio 
boards registered on the Premier s Boards 
and Committees Information System, 
comprising 28 boards governed by legislation, 
29 incorporated health unit boards and nine 
advisory boards. 

Appointment processes are defi ned within 
legislation, constitutions or terms of reference. 
The Minister is responsible for appointing 
a number of positions on these boards, 
generally to achieve a balance of knowledge, 
skills and experience amongst directors. 
At 30 June 2005 the percentage of females 
holding positions on health portfolio boards 
and committees was 46.98%, compared to 
43.48% at 30 June 2004.

Have 50% on average of State Government 
boards and committees chaired by women 
by 2008 (target 5.2)

There are 67 chair positions across health 
portfolio boards, the Gay and Lesbian 
Health Ministerial Advisory Council having 

appointed two co-chairpersons. At 30 June 
2005, when two boards were without formally 
appointed chairs, the percentage of females 
holding chair positions was 43.1% compared 
to 33.33% as at 1 October 2004.

Objective 6: Expanding 
Opportunity
Reduce the gap between the outcomes for 
South Australia s Aboriginal population 
and those of the rest of South Australia s 
population, particularly in relation to 
health, life expectancy, employment, school 
retention rates and imprisonment (target 6.1) 

Developed a Training and Employment 
Action Plan

A Training and Employment Action Plan has 
been developed for the Marree community, 
building on the Healthy Ways health/education 
Aboriginal maternal and child health 
community development initiative. The plan 
is based on community consultation that 
identifi ed the skills and training required 
to improve health, life expectancy and 
employment. The plan includes:

  an Aboriginal health worker position 
for Marree;

  vocational education and training in 
schools. One student is undertaking a 
pathway to nursing placement with support 
through the Port Augusta Hospital;

  two enrolled nursing cadetships. These have 
been made available for Marree through the 
2005 program, commencing at Pika Wiya 
Learning Centre at Port Augusta;

  fi rst aid training through Futures Connect;

  nutrition training through the CYWHS and 
the Northern and Far Western Regional 
Health Service, which commenced in 
February 2005; and

  Aboriginal Apprenticeship Scheme with 
offers in all fi elds made available for 
participants in February 2005.

Funding provided for a 12-seater vehicle for 
Pangula Mannamurna   South East Aboriginal 
Social and Emotional Wellbeing Centre

Pangula Mannamurna   South East Aboriginal 
Social and Emotional Wellbeing Centre 
received funding for a 12-seater vehicle 
to provide transport for members of the 



20

Department of Health 

South East Aboriginal and Torres Strait 
Islander community. This will result in 
increased member participation in health 
and social welfare programs operating from 
Pangula Mannamurna and increased access 
to services in Mt Gambier and surrounding 
districts and improve Aboriginal wellbeing.

Developing Regional Aboriginal Health Plan

The department is working collaboratively 
with the South East Regional Health Service, 
South East Aboriginal Health Advisory 
Committee and the Pangula Mannamurna 
Social and Emotional Wellbeing Centre to 
develop a regional Aboriginal health plan. 
A gap analysis of Aboriginal access to 
South East hospitals and health units was 
conducted and service audits and community 
consultations were facilitated by an Aboriginal 
steering committee.

Increase the percentage of the Aboriginal 
population in the South Australian public 
sector from 1.2% to 2% within fi ve years 
(target 6.2)

Aboriginal Primary Health Care Certifi cates

The department jointly funds the Aboriginal 
Health Council of South Australia to deliver 
the program for certifi cates in Aboriginal 
Primary Health Care. 303 Aboriginal students 
are studying towards Certifi cate III, Certifi cate 
IV and the Diploma.

Extension of exemption under the Equal 
Opportunity Act 1984

The department successfully gained a further 
three year extension from the South Australian 
Equal Opportunity Tribunal to continue to 
only employ Aboriginal and Torres Strait 
Islander people as Aboriginal health workers.

Health Service Performance Agreements

Annual performance agreements between 
the Minister and regional health services 
will include specifi c performance targets to 
progressively increase Aboriginal and Torres 
Strait Islander people s participation in the 
public health sector workforce, appropriately 
distributed across the range of services and 
functions provided.

Regional Aboriginal Employment Strategies

The Wakefi eld and Mid North Health Regions 
have developed and are implementing 
regional Aboriginal employment strategies.

CYWHS, SAHS and the CNAHS are developing 
regional Aboriginal employment strategies.

Aboriginal students   training and graduations

  10 enrolled nurse students graduated 
in December 2004.

  10 aged care students commenced training 
in March 2005.

  24 enrolled nurse cadets commenced training 
in April 2005.

  13 Indigenous environmental health workers 
commenced in Yalata/Oak Valley/Ceduna.

Aboriginal Scholarships

The department funds two scholarship 
initiatives to increase the numbers of 
professionally qualifi ed Aboriginal and 
Torres Strait Islander people within its 
workforce. Three Aboriginal scholarship 
recipients graduated in 2004 with 
qualifi cations in medicine, midwifery 
and podiatry. 35 Aboriginal students 
are currently being sponsored through 
these initiatives.

Aboriginal Health Action Plan

As part of the Healthy Ways Aboriginal 
Maternal and Infant Health initiative, 
Marree has developed and is implementing 
an Aboriginal health action plan, with a 
strong emphasis on increasing Aboriginal 
employment.

Developed a course promotional tool 

The Department of Health and Adelaide 
University jointly funded the development of a 
promotional tool to attract Aboriginal students 
to health related courses.

Representation at the Croc Festival

The department jointly funded the Croc 
Festival in Port Augusta in September 2004. 
The Aboriginal Health Division of the 
department attended the festival and 
an employment expo to deliver health 
promotion material.

Nursing and Midwifery Excellence Awards

In May 2005, at the Nursing and Midwifery 
Excellence Awards, the department 
acknowledged and paid tribute to South 
Australia s fi rst seven Aboriginal registered 
nurses: Linda Jackson, Lowitja O Donoghue, 
Grace Sopar, Muriel Olsson, Faith Thomas, 
Margaret Lawrie and the late Nellie Nihill.



21

Annual Report 2004   2005

Highlights in the 2005 06 Budget 
Portfolio Statements
Departmental highlights for 2004 05 are listed in the 2005 06 Budget 
Portfolio Statement. Details of progress against each highlight are 
listed below and have been reported under the department s Strategic 
Directions 2004 06, which set a broad framework for progressing health 
and wellbeing in South Australia. The initiatives reported here support 
the health reform agenda with its overall aim to improve the quality and 
safety of health services for all South Australians.

Increase Community Inclusion and 
Participation
Extended the Healthy Ways Project for 
Aboriginal communities on the APY Lands

APY Lands communities participating in the 
Healthy Ways project include Pukatja, Amata, 
Kalka and Watarru. These communities were 
selected by Anangu women. Each of these 
communities are focusing on developing the 
Early Intervention, Child and Family Support 
Program, a strategy used to improve mothers  
confi dence in child rearing and provide 
education about nutrition and tobacco use.

The Family Support Program focused on 
the recruitment and training of Anangu 
family support workers in the participating 
communities. A training curriculum was 
developed and is being delivered through TAFE.

Coordinated the establishment of the Offi ce 
of Health and Community Services 
Complaints Commissioner

On 8 July 2004 Parliament assented to the 
Health and Community Services Complaints 
Act 2004. The Act will be proclaimed and the 
Offi ce of Health and Community Services 
Complaints Commissioner will be operational 
in October 2005.

On 31 March 2005 the Governor appointed 
Ms Leena Sudano as the Health and Community 
Services Complaints Commissioner for a seven 
year term.

Since her appointment, the Commissioner 
has been:

  negotiating the transfer of active fi les from the 
State Ombudsman;

  drafting protocols with the State Ombudsman, 
health professional registration boards, and 
other complaints resolution bodies;

  holding consumer, provider and other 
stakeholder briefi ngs;

  establishing a complaints handling 
database;

  appointing project staff   administration 
and communications;

  drafting regulations; and

  negotiating a service level agreement with 
the Department of Health.

Once the Act commences, the Commissioner 
will have powers to investigate complaints 
covering public, private and non-government 
health and community service sectors. 

She will also have powers to identify, 
investigate and report on systemic issues 
concerning the delivery of health and 
community services and will play a signifi cant 
role in contributing to the quality of services 
provided and ensuring accountability to 
the public. 

Collaborate and Work in 
Partnerships
Conducted a review identifying future 
directions and priorities for acute cardiac 
services and commenced development 
of a State Cancer Plan

The Clinical Senate established an Acute 
Cardiac Services Working Group to identify 
future directions for cardiac services in 
South Australia and recommend priorities for 
implementation. The working group made 
recommendations to the Clinical Senate to 
enhance acute coronary syndrome treatment 
services, cardiac surgery, community care of 
heart failure and cardiac rehabilitation. The 
Clinical Senate has considered the report and 
requested further work be undertaken.



22

Department of Health 

Under the auspices of the Clinical Senate, the 
Department of Health and the Cancer Council 
SA commenced work with health professionals 
and community representatives to develop a 
statewide cancer plan.

Secured funding to expand the Transition 
Care Program from 90 to 176 places in 
South Australia

The Transition Care Program provides 
intensive post acute rehabilitation for older 
people within either a specialised unit, 
residential setting or community program. 
The program is a joint Australian and state/
territory governments  initiative to provide 
a better transition for older people from 
hospital back into the community and reduce 
the chance of inappropriate admission (or re-
admission) to hospital or residential care. 
The department s role in this initiative is 
focused on the provision of rehabilitation 
and therapy services.

South Australia has been allocated 176 fl exible 
care places based on its population profi le. 90 
of these will be rolled out during 2005 06 and 
the remaining 86 places during 2006 07.

Contracted with non-government agencies to 
provide community based support services 
through individual packages of care

In 2004 05 the department entered into the 
second year of a three year contract with 
the Advanced Community Care Association 
(ACCA) to provide Hospital Avoidance Program 
care packages. ACCA is a collaboration of 
non-government organisations comprising 
Metropolitan Domiciliary Care, the Royal 
District Nursing Service, South Australian 
Divisions of General Practice, the Aged Care 
and Housing Group, Resthaven, Helping 
Hand Aged Care, Uniting Care Wesley 
  Adelaide; Southern Cross Care, Australian 
Restorative Care Services, Masonic Homes and 
Life Care.

Packages of care are tailored around the 
individual client and their family s needs. 
They are provided on a short-term basis, one 
to three weeks maximum, and are initiated 
by hospital emergency departments, ward 
staff and general practitioners. Services 
provided include personal care, medication 
management, allied health, home nursing care, 
transportation and shopping assistance.

In 2004 05 ACCA delivered 3 813 packages 
of care to avoid hospital admissions and 

2 673 packages of care to facilitate early 
discharge from metropolitan hospitals and 
avoid re-admission.

Implemented specialist anaesthetic and 
surgical support networks for country areas 
including anaesthetic clinical networks in the 
northern areas of the state and anaesthetic and 
surgical networks in the South East region

Work is continuing between CNAHS and 
country regional health services to develop 
anaesthetic network support for country 
areas including supporting the South East, 
Riverland, Mid North, and Northern &amp; 
Far Western regions.

Support for surgery in the South East has been 
achieved via a network arrangement between 
the Mt Gambier and Districts Health Service 
and TQEH.

Direct Resources to Ensure Access 
and Equity
Provision of an additional $71.5 million over 
four years to country regions commencing 
2004 05 

Additional funds were provided in 2004 05 
to meet the rising recurrent costs of providing 
rural health services. $55.7 million was 
allocated to meet increased costs for rural 
doctors and nurses.

Rural patient transport also received additional 
funding, with an additional $6 million being 
allocated over the period for the Patient 
Assistance Transport Scheme and $7.1 million 
for increased inter-hospital patient 
transport costs.

Obtained commonwealth funding to improve 
the delivery of palliative care services to 
Aboriginal and Torres Strait Islander people

Under the National Palliative Care Program, 
South Australia received funding to undertake 
activities to improve access to palliative care 
services for Aboriginal and Torres Strait 
Islander people.

Work commenced to adapt the national 
Aboriginal palliative care resource kit for 
South Australia. A South Australian Aboriginal 
palliative care resource kit is being developed 
to assist mainstream palliative care workers 
to provide culturally safe palliative care in 
South Australia.

In 2005 additional funding was provided to 
develop a companion resource to the resource 



23

Annual Report 2004   2005

kit, which is to include locally relevant 
cultural information. 

Funding was also provided to undertake 
initiatives such as community awareness 
programs on palliative care for Aboriginal 
and Torres Strait Islander people and a series 
of palliative care workshops for Aboriginal 
health service workers.

Opened the new renal dialysis satellite 
centre at the Hampstead Centre

In August 2004 the Minister for Health 
opened the new renal dialysis satellite unit 
at Hampstead Rehabilitation Centre.

The unit has eight dialysis chairs providing 
for 32 patients. The unit is staffed by the RAH 
North Terrace Campus on a rotational basis, 
providing staff with additional experience 
and variety. This facility is also trialling some 
new dialysis machines.

Developed initiatives which specifi cally 
target Aboriginal and Torres Strait Islander 
communities, including having Aboriginal 
mental health workers employed by 
relevant agencies and on specifi c projects

$100 000 was allocated for specialist 
Aboriginal mental health workers across 
the state, including services to children 
and young people and improved liaison 
between rural and remote inpatient services 
and country services for people from 
Aboriginal communities.

An Aboriginal mental health liaison service 
and primary health care for Aboriginal people 
in the western metropolitan area have been 
established at the Noarlunga Health Service.

In 2004 the South Australian Aboriginal 
Prisoner Health Service was established as 
a recurrently funded extension of the South 
Australian Prisoner Health Service (SAPHS). 
It operates under a Service Agreement 
by Nunkuwarrin Yunti, an Aboriginal 
community controlled health service based 
in Adelaide.

This service provides a culturally specialist 
assessment, advisory, treatment and 
liaison service in close cooperation with 
Nunkuwarrin Yunti community services, 
SAPHS and Department of Correctional 
Services Aboriginal liaison offi cers from 
within Adelaide metropolitan prisons 
(ie Yatala, Adelaide Remand Centre and 
Northfi eld Women s Prison).

Aboriginal mental health workers have been 
appointed within the Aboriginal Youth Mental 
Health partnership project and Cavan and 
Magill Youth Training Centres to work with 
young people who are part of the juvenile 
justice system.

Developed Aboriginal primary health 
care services in both the inner city and the 
western metropolitan area

New primary health care services have been 
developed in Adelaide s inner city to identify 
and engage with homeless Indigenous people 
when they present at health services. These 
services are based at settings frequented by 
homeless people and allow for follow up and 
referral into community and health services 
in collaboration with other government and 
non-government service providers.

Examples of these services include: 

  the Visiting Health Service which 
undertakes general practitioner and nurse 
visiting of inner city day centres, the 
sobering up unit, the city parklands and 
streets of Adelaide;

  the Public Intoxication Act Facility which 
is located within the City Watch House 
comprising doctors, nurses and case 
managers working in collaboration with 
the police to assess and treat people 
apprehended under the Public Intoxication 
Act 1984; and

  community liaison workers within the 
emergency department of the RAH who 
identify, engage with and link homeless 
people to health and community support 
services and brokerage funds.

Updated service delineation profi les across 
all country regions

Service delineation is a framework that 
specifi es the minimum level of service for a 
clinical speciality within six possible levels 
where level zero is no service and level six is 
most complex service. It identifi es the support 
services which are required for the level of 
service to be provided safely in compliance 
with current professional standards. It also 
provides communities with an agreed set of 
services that they could reasonably expect to 
receive if living within particular population 
sizes or geographical areas.

Country service delineation profi les have been 
conducted at the regional level. It is intended 



24

Department of Health 

that service delineation will form part of the 
country regional health service agreements 
for 2005 06. 

Strengthen and Reorient 
Resources for Prevention, 
Early Intervention and Primary 
Health Care
Completed Coober Pedy Sobering Up Centre

The Coober Pedy Alcohol Strategy is 
supported by a number of state government 
departments to address the effects of alcohol 
misuse within the Coober Pedy community. 
The strategy has included the development 
of a number of harm minimisation programs 
and the establishment of a purpose built 
sobering up centre.

This centre complements the existing mobile 
assistance patrol and enables up to six people 
to have a safe place to stay while they are 
recovering from the immediate effects of 
alcohol consumption.

Held Gambling Awareness Week 
in March 2005

During Gambling Awareness Week in 
March 2005 the department, in partnership 
with the Department for Families &amp; 
Communities, highlighted the issues 
associated with problem gambling. The 
highly successful Think Of What You re Really 
Gambling With problem gambling advertising 
campaign was replayed during that week. A 
variety of events and promotional activities 
were held across the state including a 
community education expo and workshops for 
professionals, an information stall in Rundle 
Mall, and local community information stalls 
and shopping centre displays.

Improve the Quality and Safety 
of Services
Conducted the fi rst South Australian based 
Clinical Practice Improvement (CPI) course 
for 50 clinical leaders

CPI is a key patient care improvement 
initiative in which clinical processes are 
redesigned. 

In August 2004 the fi rst South Australian 
based course to train clinical leaders in CPI 
methodology was held. 

In February 2005, the following CPI projects 
were showcased to a wide audience:

  changing nursing handover   use of an 
Excel spreadsheet and bedside handover;

  implementation of a fractured neck of 
femur pathway;

  best practice in transfusion specimen 
labelling   positive patient identifi cation;

  prevention of chemotherapy induced 
nausea and vomiting;

  improving transitional care for patients 
with psychotic illness;

  appropriate transfusion in patients with 
upper gastrointestinal tract bleeding;

  Barrett s oesophagus surveillance project; 
and

   Code Green  in obstetrics   improving 
decision to delivery time in caesarean 
section.

Trained over 300 health professionals in root 
cause analysis

To improve patient safety, safety and 
quality must be incorporated into everyday 
practice in healthcare planning, delivery 
and evaluation. The department has 
targeted programs to assist clinicians to use 
methodologies for improving safety and 
quality in their clinical work. In 2004 05 
over 300 senior clinicians, managers and 
administrators in South Australia undertook 
patient safety training.

Implemented Australian Incident 
Management System (AIMS) across 
country health units

All country health regions have been trained 
in the use of the AIMS and connected to the 
system. Users are supported to maximise 
their use of the system in order to make 
safety and quality improvements in patient 
health care.

Conducted patient evaluation of hospital 
services survey

Evaluation of hospital services surveys were 
undertaken by the Population Research and 
Outcome Studies Unit in order to determine 
an overall satisfaction score and satisfaction 
within care and service areas. Survey results 
indicate areas that should be targeted 
for improvement.



25

Annual Report 2004   2005

Other Achievements
During 2004 05, the department delivered other achievements in addition 
to those reported in the 2005 06 Budget Portfolio Statements. Some of 
these are listed below, grouped under topic headings. 

Aboriginal Health
Aboriginal and Torres Strait Islander health 
policies and frameworks

The department progressed three key 
informing documents addressing the 
effectiveness of the state s health system 
for Aboriginal people including the 
Implementation Plan for the National Strategic 
Framework for Aboriginal and Torres Strait 
Islander Health (2003 2013), Aboriginal 
Impact Statement and the Department of 
Health Aboriginal Health Policy.

National Strategic Framework for Aboriginal 
and Torres Strait Islander Health (2003 2013)

The South Australian Implementation Plan 
for the National Strategic Framework for 
Aboriginal and Torres Strait Islander Health 
(2003 2013) allows the state to report against 
the key priorities contained in the national 
framework including: 

  strengthening comprehensive primary 
health care;

  emotional and social wellbeing:

  mental health problems and suicide;

  the protection of children from abuse and 
violence, including sexual abuse;

  responses to alcohol, smoking, substance 
and drug misuse; and

  male health.

  addressing the pre-determinants of chronic 
disease:

  nutrition and physical activity;

  child and maternal health; and

  oral health.

  improving the health of Aboriginal and 
Torres Strait Islander people in custodial 
settings; and

  data availability and quality.

All jurisdictions approved the national 
framework and are required to report against 
these priorities. The Standing Committee on 

Aboriginal and Torres Strait Islander Health 
which the Chief Executive of the department, 
Jim Birch chairs has developed a reporting 
proforma for the State Implementation Plan 
which will be used by the department to 
provide information back to the Australian 
Health Ministers  Advisory Council.

The department collected data on Aboriginal 
health performance indicators using 
Australian Institute of Health and Welfare 
standards, providing information on areas 
such as Aboriginal hospital separations and 
workforce for national analysis.

Aboriginal and Torres Strait Islander 
Health and Wellbeing Regional Resource 
Package 2005 2010

On 26 November 2004 the South Australian 
Aboriginal Health Partnership (SAAHP) 
Aboriginal and Torres Strait Islander Health 
and Wellbeing Regional Resource Package 
2005 2010 was launched by the Minister for 
Health at Tauondi College. The package is 
a strategic health improvement planning 
tool for state, regional, organisational and 
community stakeholders. It provides a 
holistic, collaborative and coordinated 
approach to the provision of health and 
wellbeing services with measurable and 
meaningful outcomes for Aboriginal 
communities, families and individuals.

The package contains fi ve strategic planning 
frameworks around:

  diabetes;

  social and emotional wellbeing;

  substance misuse;

  health data and information; and

  health workforce development.

The package represents a sustained 
effort of SAAHP partner organisations 
including the Department of Health, the 
Commonwealth Department of Health and 
Ageing, and the Aboriginal Health Council 
of South Australia.



26

Department of Health 

Capital Works
Major construction activities undertaken 
include:

  The RAH stage 2/3 redevelopment 
was completed In January 2005 at a cost 
of $78 million providing a major upgrade 
and expansion of critical care, emergency, 
imaging, theatres, and associated 
clinical facilities.

  The redevelopment stage A at LMHS costing 
$91.2 million opened on 28 April 2005. It 
provides a women s health centre, intensive 
care, critical care and 18 bed cardiac step 
down units, supply and engineering 
departments, kitchen and staff cafeteria.

  In February 2005, work commenced at FMC 
on the Margaret Tobin Mental Health Centre. 
This $17 million facility will provide 40 
adult acute mental health beds, including 
10 intensive care beds and is targeted for 
completion in June 2006.

  work commenced in January 2005 at the 
Repatriation General Hospital (RGH) on a 
30 bed aged acute mental health facility 
which is targeted for completion by 
June 2006 at a cost of $10.54 million.

  In June 2005 the $3.55 million paediatric 
intensive care redevelopment was completed 
at the W&amp;CH in order to create a safer and 
more private atmosphere for the nursing 
of critically ill infants and children, and to 
rectify signifi cant occupational health and 
safety issues.

  Several country hospital redevelopments 
were completed. At Renmark $3.1 million 
was spent on the redevelopment of the 
operating theatre, birthing unit and acute 
services, in order to provide services 
and facilities that meet modern clinical 
standards. Work commenced at Murray 
Bridge in September 2004 on the upgrade 
and redevelopment of ageing hospital 

infrastructure, the extension of day surgery, 
the construction of new acute inpatient 
accommodation, and the extension 
of the community health facility. This 
$11.33 million project is programmed 
for completion by January 2006.

  Sustainment works costing $2.62 million 
were also undertaken to upgrade building 
and internal and external infrastructure to 
numerous country health units in order to 
maintain function, integrity and appearance. 
This included fi re protection works and air 
conditioning replacement to conform to 
current infection control standards.

  Several major aged care projects 
commenced including: 

  Bordertown Aged Care at a cost of 
$1.87 million to provide 15 new 
commonwealth aged care beds; 

  Millicent Aged Care at a cost of 
$5.74 million to provide 30 aged care 
beds and related upgrade works; 

  Kapunda Hospital and Aged Care 
redevelopment at a cost of $2.47 million 
to provide six new aged care beds, a day 
surgery suite and a laundry; and 

  Kangaroo Island Aged Care at a cost 
of $893 000 to provide six new aged 
care beds in a new extension and 
minor renovations to existing aged 
care facilities.

Country Health
Country Medical Workforce

In November 2004 a reference group 
comprising representatives of the Rural 
Doctors Association of South Australia, the 
Rural Doctors Workforce Agency, the South 
Australian Divisions of General Practice and 
the Australian Medical Association (SA) was 
established to investigate rural doctor issues. 



27

Annual Report 2004   2005

The reference group visited 38 sites and met 
with 185 doctors.

Strategies identifi ed to assist in the retention 
and recruitment of doctors in rural areas were 
launched by the Minister for Health in May 
2005. The package Recognising the past, rewriting 
the future   a new partnership with rural doctors 
provides an investment of $27.2 million over 
four years to support, enhance and stabilise the 
country doctor workforce in South Australia. 
This package represents signifi cant 
enhancements for doctors currently practising 
in rural and remote South Australia and begins 
to address the longer-term workforce issues 
that will confront rural medicine in the coming 
years. Key features of the package include:

  increased on-call and other allowances;

  improved locum (relief) services for 
overworked doctors; and

  increased further development and training 
support for country general practitioners 
and specialists, and scholarships for country 
students, as well as country-based hospital 
internships.

South Australian Development Program for 
Midwives

In May 2005 the Minister for Health launched 
the South Australian Development Program 
for Midwives, a distance education program 
allowing midwives to enhance and update their 
knowledge and skills. Through the program, 
midwives are encouraged to develop and 
enhance their understanding and use of the 
Australian College of Midwives Competency 
Standards for Midwives. Midwives work through 
a three module program. In the fi rst module 
they work through case studies and additional 
reading and support texts. The second 
module includes topics on legal issues, ethics 
and policy, quality improvement, evidence 
based midwifery practice, and professional 
accountability. The third module is midwifery 
practice, helping midwives to identify any skills 
and knowledge they may need to focus on 
during a clinical placement.

Country Mental Health

Mental health services to regional 
South Australia were enhanced by: 

  South Australia providing funding to the 
Central Northern Area Mental Health Service 
(Alice Springs) to employ an additional 

mental health worker and increase the 
visiting service it provides to the APY Lands; 

  the Rural and Remote Mental Health Service 
developing its capacity to provide a more 
responsive service to Aboriginal people, and 
to increase its support of country regions; 

  an additional $1 million per annum allocated 
to non-government organisations to contract 
a range of support services; 

  upgrading video conference facilities at 
30 sites throughout the country to replace 
ageing systems; 

  visiting psychiatry services being increased 
with the aim of developing a mental health 
clinical network in the country; and

  funding being provided for further 
development of safe assessment areas 
in Gawler, Berri, Port Lincoln and 
Port Pirie hospitals.

A country suicide prevention initiative has 
also been established with Social Inclusion 
Board funding in each of the seven country 
health regions. This initiative aims to improve 
access to suicide prevention and postvention 
(eg counselling and other support services 
for people impacted by suicide) services and 
general mental health awareness programs 
for individuals, families and communities in 
regional and remote South Australia. 

Country Aboriginal Health

Services on the APY Lands have been improved 
through the provision of health and wellbeing 
services such as petrol sniffi ng rehabilitation, 
environmental health, aged care and family 
support workers. One-to-one training and 
mentoring has also been conducted with 
Nganampa health workers at Watarru and 
Kenmore Park.

The relationship between the Aboriginal health 
advisory committees and each of the country 
health regions has been improved through 
regular meetings. In addition, country health 
regions are progressing regional responses 
to the National Cultural Respect Framework for 
Aboriginal and Torres Strait Islander Health in 
order to deliver more culturally appropriate 
services to their community.

Rural Scholarships

In 2005 the department continued to 
provide rural undergraduate scholarships 
to South Australian rural students studying 



28

Department of Health 

relevant health profession courses on 
the understanding that these students 
would return to rural South Australia 
for employment.

32 undergraduate scholarships were 
awarded to: 

  14 nursing students; 

  14 allied health students (including 
dentistry, medical radiation, nutrition and 
dietetics, occupational therapy, pharmacy, 
physiotherapy, social work and speech 
pathology); 

  one medicine student; 

  two commerce students; and 

  one Aboriginal policy and 
management student.

50 postgraduate scholarships were awarded in 
2005 from 84 applications. Of the successful 50, 
22 were allocated for nursing studies 
with the remaining 28 supporting allied 
health applicants. Two Professor Margaret 
Tobin Awards were presented supporting 
a doctoral research paper into youth suicide, 
and a Graduate Certifi cate in Mental 
Health Sciences.

In 2005 a review of the undergraduate and 
postgraduate scholarship schemes was 
conducted. Key stakeholders interviewed rural 
secondary school students, past recipients, 
and the regional general managers and human 
resource managers of country health regions. 
The review recommends a more proactive 
promotion of scholarships and health careers 
to schools, revision of the publicity and 
promotion for postgraduate scholarships, 
as well as the restructure of payments and 
the commitment made by both employers 
and scholarship recipients.

Emergency Management
Eyre Peninsula Bushfi re (January 2005)

Teams from across South Australia were 
mobilised under the guidance of the lead 
agency Emergency Management Australia 
and dispatched to the Eyre Peninsula region 
to assist local staff in the recovery effort.

Effort focused on providing extra 
mental health services for Eyre Peninsula 
residents affected by the fi res. The public 
was informed of counselling services in a 
series of media interviews.

Response to the Tsunami Disaster

The SAAS medical director Dr Hugh 
Grantham led a medical team to Banda 
Aceh in Indonesia in the weeks following 
the Boxing Day tsunami to provide hospital 
and health services for victims. The team 
included rescue paramedics, surgeons, 
anaesthetists, operating room nurses and 
other medical and emergency experts. 
As a direct result of this work, emergency 
deployable equipment kits suitable for 
total self-suffi ciency are ready and in stock 
at Supply SA.

In June 2005 SAAS donated four 
decommissioned ambulances to the Maldive 
Islands, one of the regions worst affected 
by the tsunami. The four ambulances 
previously served in rural South Australia in 
Waikerie, Woomera, Elliston and Maitland. 

Legislation
Reform of Health Practitioner Acts

South Australia has an obligation to reform 
health practitioner Acts under the National 
Competition Policy Agreement. During 
2004 05, the Medical Practice Act 2004, 
Podiatry Practice Act 2005, Physiotherapy 
Practice Act 2005 and Chiropractic and 
Osteopathy Practice Act 2005 were passed 
by Parliament. 

The primary purpose of the Acts is to protect 
the health and safety of the public through 
the registration of health professionals. 

The Medical Practice Act 2004 was adopted as 
the template for the other health practitioner 
legislative reform providing consistency 
in the functions and obligations across 
all health registration boards and the 
professions. The new Acts also provide for 
greater transparency of board processes, 
consumer involvement and accountability of 
providers of services who are not registered 
professionals.

The following Bills have been drafted and 
are in the process of consultation. 

  Occupational Therapy Practice Bill 2005;

  Psychological Practice Bill 2005; 

  Optometry Practice Bill 2005; and 

  Pharmacy Practice Bill 2005.



29

Annual Report 2004   2005

Men s Health
Men s Health Taskforce

The Men s Health Taskforce was announced 
in March 2005 to encourage men to think more 
about their health and to act earlier to reduce 
health problems. Men access approximately 
32% of community health services and 40% 
of general practice activity.

The taskforce will identify why there is 
relatively poor use by men of general 
practitioners, health clinics and other early 
intervention services and aim to understand 
the needs and motivations of men in seeking 
health care. 

Metropolitan Hospitals
Redesigning Care/Process Re-Engineering 
  Lean Principles Approach

In March 2005 the world leaders in  lean 
thinking  came to Adelaide for the fi rst 
Australasian Summit on Redesigning Care. 
 Lean thinking  offers a powerful and practical 
approach to making sustainable improvements 
in patient fl ow and the provision of safer care. 
To effect lasting change within health care it is 
vital to go beyond crisis management and focus 
on continual improvement for the patient and 
reengineer all aspects of service delivery.

During 2004 05 the department held workshops 
with the redesigning care team from FMC on 
the lean principles approach to healthcare, 
which is being implemented at FMC. This 
program, and a similar initiative at the RAH, 
have led to considerable improvement in 
patient care in the emergency departments of 
those hospitals. Redesigning care has helped 
the hospital to reduce waiting times for elective 
care and to accommodate an increased demand 
for emergency care.

Elective Surgery

A four year elective surgery plan has been 
established and commenced in July 2004. The 
 Four Year Plan for Elective Surgery 2003 04   
2007 08  outlines short and long-term initiatives 
to improve the management of metropolitan 
hospital waiting lists and meet national waiting 
time targets by June 2008 as follows:

  a maximum waiting time of 12 months for 
non urgent patients;

  a maximum waiting time of three months for 
semi-urgent patients; and

  a maximum waiting time of one month for 
urgent patients.

In addition to the base casemix allocation, 
$4 million was also allocated in the 2004 05 
budget for elective surgery. A further 
$10 million was released in August 2004 
to boost surgery and $9.25 million for the 
purchase of surgical equipment. 

The strategies to improve the management of 
the elective surgery waiting list include:

  providing surgery for patients who had been 
waiting more than three years for surgery;

  improving the timeliness of urgent and 
semi-urgent patient admissions;

  introducing Checklist software to 
metropolitan hospitals;

  implementing Elective Surgery Managers 
at hospitals; 

  providing country patients on metropolitan 
waiting lists the opportunity to have their 
surgery undertaken in their local community;

  updating the current Elective Surgery Policy, 
and development of consistent procedural 
guidelines and internet site;

  improving links between general 
practitioners and hospitals;

  implementing local initiatives at the regional 
level to improve the management of waiting 
lists; and

  holding a workshop for surgeons to gain 
their input into the strategy.

The elective surgery strategy achieved an 
additional 2 352 operations performed by 
metropolitan and rural hospitals during 
2004 05. Performance as at 30 June 2005 
(when compared to the same time last year) 
demonstrates the success of the 2004 05 elective 
surgery strategy as follows:

  number of patients waiting for surgery 
in metropolitan public hospitals reduced 
to 10 094, compared to 11 078;

  patients (on the list) waiting longer than 
one year for surgery reduced by 45%;

  number of patients (on the list) waiting 
longer than two years reduced by 82%; 

  patients (on the list) waiting longer than three 
years for surgery reduced by 90%; and the

  number of overdue urgent patients (on the 
list) reduced by 25%.



30

Department of Health 

Overall, there was a 1% increase in the 
number of admissions in 2004 05 compared 
with 2003 04.

Checklist Project

Checklist is a computer software package 
designed in the United Kingdom to assist 
hospitals to analyse waiting list data and 
better manage their elective surgery through 
improved scheduling.

The introduction of Checklist in South Australia 
is seen as a strategic way to assist hospitals 
to manage waiting times. The tool has been 
implemented at FMC, Modbury Public Hospital 
(MPH), RAH, RGH, TQEH and W&amp;CH, and 
Checklist project offi cers/elective surgery 
managers have been recruited for each site to 
analyse the data and implement improvement 
strategies in conjunction with clinicians.

Nursing Workforce
Recruitment of Graduate Nurses 

On graduation nurses may choose to work 
in the public, private and/or aged care sectors 
in community or hospital environments. 
They may also choose to be employed by 
nurse agencies who broker their services. 
Nurses frequently submit applications to 
multiple employers. 

Some graduates do not seek registration with 
the Nurses Board and some seek registration 
but do not take up employment as clinical 
nurses choosing further study or employment 
in different fi elds. 

The department provides 400 funded places to 
promote recruitment within the public sector. 
Funding is attached to the nurse teaching grant 
and provides a set number of places at health 
units based on historical quotas. 

All nurses applying for positions within the 
public sector are eligible to be considered 
through a selection process for one of the 
funded places. 

In 2004 05 there were 400 funded positions 
(327 metropolitan and 73 country). 453 positions 
were fi lled (378 metropolitan and 75 country), 
resulting in 54 additional graduates within the 
public sector (51 metropolitan and 3 country).

Nursing/Midwifery Agency Tender Panel 

In March 2004 the department announced 
the 10 panel members of its new Nursing 
and Midwifery Agency Panel. 

The panel ensures that nursing/midwifery 
agencies within South Australian public 
hospitals will operate under single contract 
management. The contract is for two years with 
an optional one year extension and ensures: 

  quality of care for patients;

  an agreed pricing model for agency nurses and 
midwives within public hospitals with pricing 
being fi xed for 12 months;

  an agreed set of key performance indicators 
and management reports;

  a standard cancellation fee and notifi cation 
times; and

  a standard risk management approach such 
as offender checks and occupational health 
and safety assessments for all agency nursing 
and midwifery staff before placements 
are negotiated.

Primary Health 
Primary Health Care Networks

In 2004 05 $3.2 million was provided for 
expenditure in 2004 2006 to develop three 
primary health care networks to support 
systems of integrated care and engage a range 
of primary health care partners including 
general practitioners, hospitals, aged care 
providers and community health services.

In 2004 05, CNAHS established two Primary 
Health Care Networks (western and north/
north-east) and SAHS established the 
Southern Primary Health Care Network. 

Secure broadband connectivity has been 
completed for 110 general practitioner clinics 
in the north, north-eastern, western and 
southern suburbs.

The initial focus of network activity is on 
improving the coordination of care for people 
with chronic disease by providing more services 
and support in the community. Another key 
focus is reducing the morbidity associated with 
uncontrolled chronic disease and controlling 
the risk factors that are precursors to the 
development of chronic disease.

Palliative Care Training Initiatives

The Program of Experience in the Palliative 
Approach (PEPA) commenced in 2003 with 
funding received under the National Palliative 
Care Program.

PEPA is a workforce education initiative offering 
primary health care providers the opportunity 



31

Annual Report 2004   2005

to undertake a short clinical placement with a 
specialist palliative care service. The program 
also includes an allied health palliative care 
education program.

In 2005 South Australia received an additional 
$387 000 from the Australian Government 
to extend this program to provide general 
practitioners and rural and remote medical 
offi cers the opportunity to undertake a clinical 
placement with a specialist palliative care 
service. The clinical placement opportunities 
were extended to enable palliative care clinicians 
to further develop their skills pertaining to 
palliative care in other specialty settings 
(eg, rural palliative care coordinators are able to 
undertake a clinical placement in a metropolitan 
palliative care service). A series of palliative 
approach workshops for workers in Aboriginal 
health services were also undertaken.

The program will continue until June 2006.

National Award to Pharmaceutical Services

The Pharmaceutical Services group within the 
Drugs Policies and Programs Branch won the 
Health Professional Quality Use of Medicines 
Award at the National Quality Use of Medicine 
Awards for its Reducing the Use of Benzodiazepines 
in Insomnia Management project.

In 2000 a pilot project conducted in the Southern 
Fleurieu region led to a 16% reduction in the 
dispensing of benzodiazepines in the region. 
This was followed in 2001 by a further 8% 
reduction and the program being rolled out 
across the state. 

The Insomnia Management Kit, available 
through general practitioners and pharmacists 
outlines alternatives to sleep medication in 
dealing with causes of insomnia and promotes 
these as more likely to be successful in the 
long term. 

Research
Health and medical research is an integral part 
of the South Australian public health system. 

Applied research on population and social 
health issues is supported by the department 
through the Human Services Research and 
Innovation Program. Research undertaken 
in 2004 05 includes:

  a study looking at the health, housing, 
and automotive impacts on workers as 
a result of the closure of the Mitsubishi 
automotive plant;

  a study of obesity rates in young 
South Australian children;

  a project to develop a model for the 
measurement of social inclusion and social 
exclusion in northern Adelaide; and

  the North West Adelaide Health cohort 
study examining the patterns of health and 
illness in this region. 

The department also supports collaborative 
research involving health units and universities 
and outside funding sources like the National 
Health and Medical Research Council. A 
seminar program providing a venue for 
discussion of research fi ndings was conducted 
throughout the year.

The South Australian Health and Medical 
Research Advisory Council, a body set up by 
the Minister and supported by the department 
considered strategies to strengthen health and 
medical research in South Australia and ways 
research can be used to maximise the health 
and wellbeing of the state.

Safety and Quality

Projects to reduce harm to patients focus on:

  improving effi ciency, appropriateness, and 
safety in the administration of blood products;

  increasing information technology support for 
safety improvement;

  reducing the risk of medication errors;

  reducing the risk of communication problems;

  supporting the establishment of Patient 
Safety Managers;



32

Department of Health 

  improving the utilisation of incident 
management systems;

  implementing the South Australian 
Perioperative Mortality Audit;

  reducing the risk of injury of hip fractures 
from falls;

  pressure ulcer prevention;

  increasing consumer contribution to safety 
and quality improvement; and

  identifying vulnerabilities in the healthcare 
system and taking corrective actions.

In 2004 05 the framework for safety and 
quality improvements was directed at health 
care delivery. Incidents were investigated 
using root cause analysis and system 
changes to prevent future medical error 
were identifi ed. Overall a culture of safety 
and quality within health care teams 
was enhanced. 

Drugs of Misuse Surveillance 
Information System

A new database for the surveillance of the 
use of drugs of dependence in South Australia 
was commissioned in June 2005. 

The database replaces the outdated system 
which had limited functionality. It records 
details of prescribing and dispensing drugs 
of dependence and is used for surveillance 
purposes. It is based on a program developed 
for the Tasmanian Department of Health and 
Human Services. 

Doctors are required, under the Controlled 
Substances Act 1984, to obtain an  Authority 
to Prescribe  from the department when 
ordering drugs of dependence for extended 
treatment often in the management of pain, 
Attention Defi cit Disorder, or dependence 
as part of an opioid substitution program. 
By recording the prescribing and dispensing 
details the department is able to monitor 
the use of drugs of dependence in South 
Australia and minimise the extent to which 
these drugs are misused or diverted for 
illegal use in the community. Prior to issuing 
an authority department offi cers are able to 
discuss the management of the patient and 
the proposed drug treatment. Pharmacists are 
required to send reports on the dispensing of 
these drugs and all cancelled prescriptions 
so that the department is aware of the use of 
drugs of dependence within the state.

Medication Safety and Quality

Adverse events associated with medication 
are major contributors to poor patient 
outcomes and injury within health systems. 
The department s commitment to continuous 
improvement in the safety of medication is 
evidenced by the following initiatives:

  Anticoagulants (blood thinning agents);

 Best practice guidelines for management 
of anticoagulation were developed and 
disseminated to prescribers leading to the 
following improvements: 

  increased use of Deep Vein Thrombosis 
preventative treatment (53% to 67%);

  reduced time to effective anticoagulation 
(13 hours to seven hours);

  improved management of over-
anticoagulation (48% to 74%); and

  timely follow up of test results 
(49% to 62%).

  Renally cleared medications (drugs 
removed from the body by the kidneys);

 These medications predispose patients 
to serious side effects and problems with 
calculating dosage are common. The 
department developed an internet-based 
decision support tool for prescribers linked 
to laboratory results. Prescribers are alerted 
when their patients have acute renal failure 
or other signifi cant biochemical changes. 

  Electronic Medication Management 
Project;

 Electronic medication management, when 
implemented with online decision support, 
has been shown to reduce medication 
error and improve patient outcomes. 
The Pharmacy Order Management 
(POM) system within OACIS, a clinical 
information system provides single point 
access to patient demographics, hospital 
encounters, laboratory results, radiology 
reports and outpatient appointments. The 
POM system is integrated with an external 
drug knowledge database and provides 
decision support including:

  checking for interactions between drugs, 
drug allergies, dose range and duplicate 
treatments; 

  providing drug warnings based on 
specifi c groups (eg drugs in pregnancy, 



33

Annual Report 2004   2005

drugs in lactation, drugs in the elderly 
and drugs in childhood); and

  providing consumer medicines 
information.

Pressure Ulcer Prevention Practices 
  Integration of Evidence

In 2004 05 the department worked to 
improve pressure ulcer prevention and 
management frameworks. Resources 
developed to help clinicians implement 
 Best Practice  guidelines into their 
workplace include:

  tools linking identifi cation of patients at 
risk and action to prevent pressure ulcers;

  pressure ulcer auditing protocols;

  staff and patient education resources;

  posters/charts describing best practice 
interventions; and

  practical information for clinicians 
setting up pressure ulcer prevention and 
management frameworks within their 
own organisations.

South Australian Ambulance 
Service (SAAS)
Transition to Health

In April 2004, responsibility for the SAAS 
transferred to the Minister for Health, 
paving the way for ambulance services to 
be integrated into the overall health system 
to improve health care to the community. 
In 2004 05 the department commenced 
consultation and planning to develop 
models for governance, fi nance and 
workforce relations that will better suit 
the ambulance service s role within the 
health system.

Funding for new ambulance stations

In April 2005 the government approved 
$17.2 million over fi ve years for the 

construction of three new ambulance 
stations to replace existing facilities 
at Murray Bridge, Port Adelaide and 
Elizabeth. This includes information 
technology upgrades to improve 
ambulance dispatch systems.

The upgrades will improve the facilities 
available to paramedics and ambulance 
staff with the new stations to include 
garage bays for ambulance vehicles, 
dedicated crew rooms, training rooms and 
study areas, an offi ce area for the team 
leader, locker rooms, an operational store, 
equipment re-processing area and other 
general amenities. 

Women s Health
South Australian Women s Health Policy

In March 2005, the Minister for Health 
launched the South Australian Women s 
Health Policy, overseen by the Women s 
Health Ministerial Advisory Council. The 
policy provides a foundation for building 
a new approach to women s health and 
the delivery of health services. It guides 
reform of the health system to become more 
accessible, safer, equitable, fl exible and 
responsive to women s lives.

The policy focuses in particular on 
women who have the least access to health 
services and experience the worst health 
outcomes (eg Aboriginal and Torres Strait 
Islander women).

The policy will require health services and 
regions to take women s needs into account 
when developing specifi c strategies for 
managing health issues like cancer, diabetes, 
arthritis, cardiovascular health and mental 
health and report regularly on their progress 
in targeting programs. The department and 
the CYWHS will lead the implementation of 
this policy across the state.



34

Department of Health 

Promoting Independence: 
Disability Action Plans for South Australia
Promoting Independence Disability Action Plans for South Australia 
(2000) provides a framework for South Australian government 
departments to meet their requirements under the Commonwealth 
Disability Discrimination Act 1992 and the South Australian Equal 
Opportunity Act 1984. 

The department s progress against 
the fi ve Key Outcome Areas is 
detailed below.

Outcome 1: Portfolios and their agencies 
ensure accessibility to their services to 
people with disabilities

The department developed a Health 
Portfolio Disability Action Plan, which is 
to be endorsed in August 2005.

The plan provides direction for the 
department and the health regions in 
developing strategies and actions to 
eliminate practices that discriminate 
against people with disabilities who use 
their services or are employed by them.

The plan provides guidelines for the 
department and the health regions to 
achieve the following outcomes:

  greater accessibility to health services 
for people with disabilities;

  demonstrated awareness and 
understanding by staff and volunteers 
of the needs of people with disabilities;

  improved physical access for people 
with disabilities to buildings and 
facilities where health services and 
programs are provided;

  that all communications regarding 
services are made available in the full 
range of formats and promoted via 
a specifi c disability communication 
strategy;

  improve equity and equal opportunity 
for people with disabilities in the 
health portfolio; and

  appropriate access for people with 
disabilities to complaint handling 
procedures within services and to 
independent complaint authorities.

Outcome 2: Portfolios and their agencies 
ensure information about their services 
and programs is inclusive of people 
with disabilities

The department promotes its services 
via telephone, electronic information and 
internet advertising. To increase accessibility 
to people with disabilities, the department 
promotes the provision of information in 
audio-cassette, braille, diskette, large and 
illustrated print, plain english, internet 
(utilising non-discriminatory information 
technology), radio, video (including 
captions), free call telephone numbers, 
telephone typewriter, and National Relay 
Service. People who are deaf or have 
hearing impairment also have access 
to appropriate interpreters.

Outcome 3: Portfolios and their agencies 
deliver advice or services to people 
with disabilities with awareness and 
understanding of issues affecting people 
with disabilities

The department has been actively involved 
in the development of the Disability 
Awareness and Discrimination Training 
Framework, which identifi es minimum 
requirements for training in disability 
awareness and discrimination and highlights 
curriculum, learning outcomes and 
implementation strategies. The draft Health 
Portfolio Disability Action Plan requires all 
regions to implement the framework in all 
locations in accordance with their needs 
and responsibilities.

Outcome 4: Portfolios and their agencies 
provide opportunities for consultation with 
people with disabilities in decision-making 
processes regarding service delivery and 
in the implementation of complaints and 
grievance mechanisms



35

Annual Report 2004   2005

The department has assisted in establishing 
the Offi ce of the Health and Community 
Services Complaints Commissioner. 
Once proclaimed consumers of public, 
non-government and private health or 
community services, including consumers 
with a disability will be able to make 
complaints to the Commissioner. There 
will also be a statutory obligation for the 
Commissioner to develop a Charter of 
Health and Community Services Rights 
in consultation with consumers 
and providers.

The Draft Health Portfolio Disability 
Action Plan includes specifi c actions that 
service providers have to address including 
the coverage, information available and 
adequacy of existing complaints handling 
mechanisms, as well as satisfaction and 
access to these processes by consumers, 
including those people with disabilities.

The plan encourages service providers to 
promote appropriate internal complaints 
handling mechanisms that are accessible 
and provide support and advocacy for 
people with disabilities.

Outcome 5: Each portfolio chief executive 
will ensure that their portfolio has 
met the requirements of the Disability 
Discrimination Act 1992 and the Equal 
Opportunity Act 1984

The draft Health Portfolio Disability Action 
Plan has been developed to bring the 
department into line with health regions  
governance arrangements. 

Accountability for implementing actions 
will occur at all levels across the portfolio 
and will include initiatives to improve 
collaboration and integration in decision 
making processes and planning of services.



36

Department of Health 

Reconciliation
The Department of Health recognises Aboriginal people as the fi rst 
Australians, with a unique culture and spiritual relationship to the land 
and the seas. The department is strongly committed to improving the 
cultural, spiritual, health, emotional and economic wellbeing 
of Indigenous people.

The department is committed to informing 
Aboriginal people of their right to access and 
receive equitable services and of avenues to 
redress any grievances experienced by them. 

The department s commitment to 
reconciliation is expressed by:

  working to increase the number of 
Aboriginal people employed within the 
portfolio and the number of Aboriginal 
people in decision-making positions;

  working to eliminate systemic racism 
in the workplace;

  incorporating Aboriginal needs, issues 
and positive outcomes in all planning, 
including consultation with key 
constituents and Aboriginal communities;

  increasing the understanding of 
Aboriginal identity and experience in the 
portfolio and the community;

  promoting the needs of Aboriginal people 
across government and in the community; 
and

  providing leadership in the reconciliation 
process between Aboriginal and non-
Aboriginal South Australians. 

The Department of Health Strategic Directions 
2004 06, consistent with Aboriginal 
wellbeing targets in South Australia s 
Strategic Plan, lists the following 
reconciliation outcomes for the department:

  reduce the gap between the outcomes 
for South Australia s Aboriginal 
population and those of the rest of 
South Australia s population, particularly 
in relation to health and life expectancy 
(target 6.1); and

  increase representation of Aboriginal 
people in the Department of Health 
(target 6.2   to increase the percentage 
of Aboriginal people in the public sector 
from 1.2% to 2% within fi ve years).

The former Department of Human Services 
Reconciliation Committee disbanded in 
August 2004 and reformed in January 2005 
as the Reconciliation Working Group (RWG) 
with representation from all divisions.

Reconciliation initiatives progressed during 
2004 05 include:

Reconciliation Plan

The RWG is reviewing the department s 
reconciliation plan, endorsed by the 
Department for Aboriginal Affairs and 
Reconciliation and the Council of Aboriginal 
Elders, to determine its suitability for the new 
departmental structure.

Reconciliation Statement

The RWG is developing a reconciliation 
statement for the department to further 
promote reconciliation and the department s 
ongoing response and commitment 
to reconciliation. 

Aboriginal Impact Statement 

An Aboriginal impact statement is being 
developed to assist staff to consider and 
express the needs of Aboriginal people at 
every stage of policy development. It is 
envisaged that the impact statement will 
accompany all senior executive submissions. 

The statement will include a checklist to help 
staff assess whether:

  appropriate Aboriginal representation, 
consultation/negotiation and endorsement 
have occurred in the development of the 
policy, program, strategy or initiative;

  the effects of the initiative on Aboriginal 
health and wellbeing outcomes and services 
have been identifi ed and addressed;

  links have been made between the 
proposed initiative and existing policies, 
strategies and programs; 

  suffi cient consideration has been given to 
the resources needed for addressing the 



37

Annual Report 2004   2005

identifi ed Aboriginal issues in the proposed 
policy or program; and 

  a complementary Aboriginal-specifi c policy, 
strategy or program is required, in addition 
to the policy initiative under consideration. 

Statement of Acknowledgement

In 2004 05 a statement of acknowledgement 
card and protocols for use at internal and 
external meetings was produced and 
distributed to staff. 

Board of Management Training for 
Aboriginal Community Controlled 
Organisations Project

The Department of Health is undertaking 
a project to provide training to Boards 
of Aboriginal community controlled 
organisations. Training, identifi ed as a primary 
objective in the Aboriginal Health Council s 
Strategic Plan 2004 06, lays the foundation for 
more equitable access to essential services in 
particular health, education and infrastructure. 

It aims to:

  provide clarity of the roles of the board;

  address legal responsibilities;

  address organisational responsibilities;

  address the importance of quality assurance 
and evaluation in health services; and

  support board of management members 
through ongoing training and development 
opportunities.

A training program, project offi cer, project 
team and steering group were established in 
2004 05. Progress to date includes:

  completion of a literature review; 

  two communities (the South East and Yorke 
Peninsula) identifi ed to trial the project; and 

  establishment of a working relationship 
with the Offi ce for Aboriginal and 
Torres Strait Islander Health to strengthen 
project by building on common experiences.

The project team has developed an 
approach which brings the strengths of 
cultural obligations together with other 
management training (such as fi nancial 
management) to enhance the effectiveness 
of board performance.

The project gained strong support from the 
Aboriginal Health Council Board.

National Aboriginal Islander Day 
Observance Committee (NAIDOC) 
week 2004

NAIDOC week ran from 4   11 July 2004 with 
the theme Self-determination: Our Community   
Our Future   Our Responsibility. 

The celebrations were launched with a 
traditional Kaurna welcome, entertainment 
and speeches.

Department events during the week provided 
an opportunity for staff to learn about 
NAIDOC history and Aboriginal culture 
and included:

  a display in the foyer of the Citi Centre 
building;

  artwork from the artists in residence; and 

  screenings of Aboriginal movies.

Reconciliation Week 2005

National Reconciliation Week was held 
27 May   3 June 2005. The theme was 
Reconciliation: take the next step. 

Department activities included:

  daily movies exploring Indigenous themes 
and celebrating Indigenous culture;

  a visual display in the foyer of 
the Citi Centre building featuring 
Indigenous artwork;

  free reconciliation lanyards for staff 
members; and

  participation in the public sector 
casual day.



38

Department of Health 

South Australian Health Commission (SAHC) 
Annual Report 2004 05
Amendments to the South Australian Health Commission Act 1976 came 
into effect on 6 July 2000, transferring a number of functions to the 
department and the Minister. This left the SAHC with a largely advisory 
function to the Minister, providing information as requested and being 
responsible for public health matters under Section 16(1)I(e), (f), (i), (l) 
and (m) of the Act.

The SAHC met fi ve times during 2004 05 and 
conducted the following activities:

  considered and approved licences to use or 
handle radioactive substances and licences 
to operate X-Ray apparatus under Sections 
28, 31 and 35 of the Radiation Protection and 
Control Act 1982;

  considered draft amendments to the 
Radiation Protection and Control Act 1982;

  noted the implications of the Statutes 
Amendment (Honesty and Accountability 
in Government) Bill 2003;

  maintained a register of annual reports 
received from incorporated hospitals and 
health centres for the 2003 04 annual 
reporting period;

  considered the Kujani Native Title Claim in 
relation to the Orroroo and Districts Health 
Service; and

  considered private hospital licensing 
arrangements.

Members of the Commission during 
2004 05 were:

  Mr Jim Birch, Chair (appointed 
11 April 2002)

  Ms Ingrid Haythorpe, Deputy Chair 
(appointed December 2004)

  Mr Brian Dixon (appointed 12 April 2001)

  Dr David Filby (appointed 5 August 2002)

  Ms Roxanne Ramsey (appointed 
25 July 1999)

  Professor Brendon Kearney (appointed 
1 December 1998 to December 2004)



39

Annual Report 2004   2005

Appendix 1: Hospital Activity Statements
The hospital activity statements for 2004 05 are detailed in the 
tables below.

The fi rst table reports total beds for 
metropolitan Adelaide. There are three 
components to the hospital bed count: 
overnight beds (including acute and 
emergency extended care beds), same-day 
beds and hospital-at-home beds. Calculating 
the annual hospital bed count is complex 
as the number of beds varies depending 
on the day of the week and the time of the 
year. The total bed fi gure represents the 
average of staffed and available beds for 
the fi nancial year. 

The way beds are classifi ed changed in 
2004 05. In order for trends and comparisons 
to be made, the classifi cation system for 

2004 05 has been applied to data from 
previous years. This means that the fi gures 
for fi nancial years published in previous 
annual reports may differ from the fi gures 
listed for the same fi nancial year periods 
reported in the tables below.

Total bed count is only meaningful when 
considered in relation to occupancy rate. The 
average occupancy for the fi ve years since 
2000 01 is 86.6% for metropolitan Adelaide 
and 54.8% for country South Australia. Due 
to the low occupancy rate in country hospitals, 
the bed count for country is not considered a 
useful measure of activity and is not presented 
in this report.

Time Series Summary Data for Metropolitan Adelaide
2000 01 2001 02 2002 03 2003 04 2004 05

Hospital Activity Statistics (1)

Total Beds  (2) 3 050 3 071 3 077 3 168 3 206

Some procedures previously classifi ed as  same day procedures  were excluded from the same day 
classifi cation in 2004 05. In order for trends and comparisons to be made, the activity statistics 
for previous fi nancial years have been adjusted in the following tables. This means that fi gures 
reported below differ from fi gures reported for the same periods in previous annual reports. 

Time Series Summary Data for Metropolitan Adelaide
2000 01 2001 02 2002 03 2003 04 2004 05

Hospital Activity Statistics (1)

Admissions
Overnight stay patients 126 126 127 241 130 886 134 540 137 727

  Average length of stay 6.6 6.6 6.5 6.4 6.3

Same day patients 110 328 112 730 113 657 114 830 112 822

Total admissions 236 454 239 971 244 543 249 370 250 549

% Same day admissions 46.7% 47.0% 46.5% 46.0% 45.0%

Non-inpatients
Casualty 311 452 314 244 310 257 302 940 310 661

Outpatients (3) 1 346 563 1 355 018 1 324 433 1 318 639 1 373 503



40

Department of Health 

Time Series Summary Data for Country South Australia
2000 01 2001 02 2002 03 2003 04 2004 05

Hospital Activity Statistics
Admissions
Overnight stay patients 53 755 51 946 49 959 53 250 51 831

  Average length of stay 7.4 7.6 7.5 7.2 7.1

Same day patients 32 388 32 635 34 633 36 974 37 250

Total admissions 86 143 84 581 84 592 90 224 89 081

% Same day admissions 37.6% 38.6% 40.9% 41.0% 41.8%

Non-inpatients
Casualty 164 157 154 652 162 068 158 390 163 020

Outpatients (3) 141 510 135 398 138 636 127 918 133 252

Important Notes: 

  All data are subject to adjustments at a 
later date without notice as updates or 
other corrections become applicable.

  Adjustments have been made to the years 
2000 01 onwards to remove inappropriate 
same-day admissions identifi ed by the 
Department of Health. These adjustments 
permit valid comparisons of hospital 
admissions over time. The admissions are 
for relatively minor procedures that are 
more appropriately classifi ed as outpatient 
attendances. This change is necessary to 
provide more consistent and equitable 
funding to hospitals under the Casemix 
funding system.

  On 1 July 2003 Gawler moved out of the 
Department of Health s Central Northern 
Adelaide planning region and into the 
Wakefi eld Regional Health Service. Thus 
all of the measures (apart from bed count) 
from 2003 04 refl ect the shift of Gawler 
from metropolitan Adelaide to Country 
South Australia.

  Mental health beds and activity in stand 
alone units (Glenside and Oakden) have 
been excluded from the above tables.

Footnotes:
(1) This table contains data for all recognised 

public hospitals, including the Pregnancy 
Advisory Centre and Torrens House.

(2) Bed numbers include same-day, hospital-
at-home beds and other government 
initiatives aimed at increasing health 
system capacity.

(3) Excludes private outpatients.

Sources:

  Hospital Activity Data: Monthly 
Management Summary System, 
Department of Health

  Hospital-at-home beds and other 
funded beds: Metropolitan Division, 
Department of Health.

Activity trends
The increase in hospital activity is 
illustrated in the following graphs. Health 
reform initiatives, for example demand 
management strategies, assist hospitals to 
meet the increased demand by providing 
complementary care in the community.

Demand management strategies are an 
essential component of a contemporary 
health care system. They are effective in 
reducing presentations to and admissions 
from emergency departments and assisting 
early discharge to  free up  hospital beds 
for other patients. These care packages are 
provided in the patient s own home and 
can be considered equivalent to inpatient 
care. Examples of services include: 
showering and personal care; medication 
management; physiotherapy; intravenous 
therapy; acute wound care; tracheostomy 
care, peg care and care planning.

The following graphs plot the movement 
in activity over time. The line of best 
fi t is an estimate of the underlying 
trend. It provides an estimate of the 
degree of change which is attributable 
to actual change in activity rather than 
circumstantial variations, which may 
occur because of changes in natural 



41

Annual Report 2004   2005

322,000

324,000

326,000

328,000

330,000

332,000

334,000

336,000

338,000

340,000

2000 01 2001 02 2002 03 2003 04 2004 05

State Total Admissions

Linear
Trend
Line

circumstances, such as a mild winter or less 
infl uenza virus in circulation, or organisational 
circumstances such as ward closures during a 
hospital redevelopment.

State total admissions are shown in graph 1.  
The trend line shows an underlying annual 
growth of 4 910 additional admissions 
per year.

Graph 1

Improvements in clinical technologies 
and procedures, better discharge 
planning and increased availability of 
community care packages have led to a 
reduction in the average length of stay 
for overnight admissions. In particular 
hospital-at-home packages facilitate early 
discharge and replace expensive hospital 
care with more individualised services. 
Graph 2 shows the decline in length of 
stay for overnight patients across the 
fi ve years. 

6.2

6.4

6.6

6.8

7.0

7.2

7.4

7.6

2000 01 2001 02 2002 03 2003 04 2004 05

Metropolitan Overnight 6.6
Country Overnight 7.4

Overnight Patient Average Length of Stay

Graph 2

Graph 3

143,000

144,000

145,000

146,000

147,000

148,000

149,000

150,000

151,000

152,000

2000 01 2001 02 2002 03 2003 04 2004 05

Linear
Trend
Line

State Total Same Day Admissions

As demand for admission to hospital has 
increased, the capacity of the system has 
increased in parallel. Overnight patient beds, 
same day beds, hospital-at-home packages, 
hospital avoidance packages (community 

New technologies and improved services 
allow for more conditions to be treated on 
a day only basis. This means the patient 
is admitted and discharged on the same 
day and avoids the need to stay in hospital 
overnight. Most same day patients receive 
their care in facilities that are specifi cally 
designed for such treatment. Graph 3 
shows the underlying trend of 2 115 
additional same day cases per year across 
South Australia.



42

Department of Health 

care packages that provide equivalent care in 
non hospital settings) and low acuity beds all 
add to the capacity of the system to provide 
a range of services to patients that would 
previously been provided in an overnight 
care setting.

Graph 4 shows the growth and underlying 
trend in equivalent bed capacity from 2000 01 
to 2004 05 for the metropolitan area. The 
underlying trend line reveals an annual 
increase in equivalent beds of 40.9 beds 
per annum.

Graph 4

3,040

3,060

3,080

3,100

3,120

3,140

3,160

3,180

3,200

3,220

2000 01 2001 02 2002 03 2003 04 2004 05

Overnight Patient Capacity
Metropolitan Hospitals

Linear
Trend
Line

Beds

Equivalent bed capacity includes hospital 
based overnight and same day beds, lower 
acuity and rehabilitation beds in designated 
units and hospital-at-home packages.



43

Annual Report 2004   2005

Appendix 2: Ministerial Portfolio Responsibilities 
Hon Lea Stevens MP, 
Minister for Health

Acts administered: 

Ambulance Services Act 1992

Blood Contaminants Act 1985

Chiropodists Act 1950

Chiropractors Act 1991

Consent to Medical Treatment and Palliative Care 
Act 1995

Controlled Substances Act 1984

Dental Practice Act 2001

Drugs Act 1908

Food Act 2001

Gene Technology Act 2001

Health and Community Services Complaints 
Act 2004

Health Professionals (Special Events Exemption) 
Act 2000

Hospitals Act 1934

Institute of Medical and Veterinary Science 
Act 1982

Medical Practice Act 2004 

Medical Practitioners Act 1983

Mental Health Act 1993

Nurses Act 1999

Occupational Therapists Act 1974

Optometrists Act 1920

Pharmacists Act 1991

Physiotherapists Act 1991

Prohibition of Human Cloning Act 2003

Psychological Practices Act 1973

Public and Environmental Health Act 1987

Public Charities Funds Act 1935

Public Intoxication Act 1984

Reproductive Technology (Clinical Practices) 
Act 1988

Research Involving Human Embryos Act 2003

Sexual Reassignment Act 1988, Part 21

South Australian Health Commission Act 1976

Tobacco Products Regulation Act 1997 

Transplantation and Anatomy Act 1983

Footnotes:
1 Powers and functions under Part 2 of this 

Act were conferred on the then Minister for 
Human Services pursuant to Section 6(1) 
of the Administrative Arrangements Act 1994 
(Gaz 17.8.00 No 129 p 498).



44

Department of Health 

Appendix 3: Boards And Committees
Boards and committees in the health portfolio at 30 June 2005

Balaklava and Riverton Districts Health 
Service Inc 

Barossa Area Health Services Inc 

Booleroo Centre District Hospital and Health 
Services Inc 

Bordertown Memorial Hospital Inc

Burra Clare Snowtown Health Service Inc 

Ceduna District Health Services Inc

Ceduna Koonibba Aboriginal Health 
Service Inc

Central Northern Adelaide Health Service Inc

Central Yorke Peninsula Hospital Inc

Child Health Advisory Committee 

Children, Youth and Women s Health 
Service Inc

Chiropody Board of South Australia

Chiropractors Board of South Australia

Commissioners of Charitable Funds

Coober Pedy Hospital and Health Services 

Controlled Substances Advisory Council

Crystal Brook District Hospital Inc

Dental Board of South Australia

Dental Professional Conduct Tribunal

Eastern Eyre Health and Aged Care Inc

Eudunda &amp; Kapunda Health Service Inc

Eyre Aboriginal Health Advisory Committee

Eyre Regional Health Service Inc

Gawler Health Service Inc 

Gay and Lesbian Health Ministerial 
Advisory Council

Hawker Memorial Hospital Inc

Health and Medical Research Advisory 
Council of South Australia

Hills Mallee Southern Regional Health 
Service Inc

Independent Living Centre of 
South Australia Inc

Institute of Medical and Veterinary 
Science Council 

Intellectual Disability Services Council Inc

The Jamestown Hospital and Health 
Service Inc

Julia Farr Services 

Kangaroo Island Health Service

Kingston Soldiers  Memorial Hospital Inc

Leigh Creek Health Services Inc

Lower Eyre Health Services Inc

Loxton Hospital Complex Inc

Mallee Health Service Inc

The Mannum District Hospital Inc

Medical Board of South Australia

Medical Practitioners Professional 
Conduct Tribunal

Meningie and Districts Memorial Hospital and 
Health Services Inc

Metropolitan Domiciliary Care

Mid North Regional Health Service Inc

Mid West Health

Millicent and District Hospital and Health 
Services Inc

Ministerial Reference Group on Tobacco

Mount Barker District Soldiers  Memorial 
Hospital Inc

Mount Gambier and Districts Health 
Service Inc

The Murray Bridge Soldiers  Memorial 
Hospital Inc

Naracoorte Health Service Inc

Northern Adelaide Hills Health Service Inc

Northern and Far Western Regional Health 
Service Inc

Northern Medical Community Health Services

Northern Yorke Peninsula Health Service 

Nurses Board of South Australia

Occupational Therapists Registration Board of 
South Australia

Optical Dispensers Registration Committee

Optometrist Board of South Australia



45

Annual Report 2004   2005

Orroroo and District Health Service Inc

Penola War Memorial Hospital Inc

Peterborough Soldiers  Memorial Hospital and 
Health Service Inc

Pharmacy Board of South Australia

Physiotherapists Board of South Australia

Pika Wiya Health Service 

Port Augusta Hospital and Regional Health 
Services Inc

Port Broughton District Hospital and Health 
Services Inc

Port Lincoln Health Services Inc 

Port Pirie Regional Health Service Inc

Public and Environmental Health Council

Quorn Health Services Inc 

Renmark Paringa District Hospital Inc

Repatriation General Hospital Inc

Reproductive Technology Eligibility 
Review Panel

Riverland Health Authority 

Riverland Regional Health Service Inc

Rocky River Health Service Inc

Rural Health Advisory Council

SA Ambulance Service Development Fund

SA St John Ambulance Service Inc

South Australian Council on Reproductive 
Technology

South Australian Health Commission

South Australian Psychological Board

South Coast District Hospital Inc

South East Regional Health Service Inc

Southern Adelaide Health Service Inc

Southern Yorke Peninsula Health Service Inc

Strathalbyn &amp; District Health Service

Tailem Bend District Hospital

Waikerie Health Services Inc

Wakefi eld Regional Health Service Inc 

The Whyalla Hospital and Health Services Inc

Womens  Health Ministerial Advisory Council



46

Department of Health 

Appendix 4: Human Resource Summary
To achieve best practice in human resource management, the department 
focused on enhancing the capacity of the organisation to manage 
change by supporting staff and adopting strategic policies and programs 
targeted to the reform process, including the development of:

  Change Management Framework;

  Human Resource Management Principles 
and Procedures for the Implementation of 
the New Organisational Structure; and

  Vacancy Management Procedures.

An account management model was 
introduced, with each division within 
the department being allocated a senior 
human resource management consultant as 
opposed to merely seeking human resource 
management consultancy services from the 
Workforce Consulting Unit. The consultants 
have developed a sound working 
knowledge of the divisions  directions and 
business objectives thereby enhancing their 
capacity to provide valued and responsive 
consultancy services. This focus has enabled 
more reliable and effective human resource 
management support across the department.

Recruitment and Selection
Job and person specifi cations were revised 
to include:

  a statement of values; 

  criminal screening requirements for 
identifi ed positions in accordance with 
child protection principles; and

  Risk Management AS/NZS 4360 as an 
essential minimum requirement for all 
leadership and management positions.

Appointment Procedures
Executive appointment procedures and 
employment processes were reviewed and 
made consistent with Department of Premier 
and Cabinet recommendations regarding 
the role and functions of the Offi ce for the 
Commissioner for Public Employment.

Organisational Development

The department progressed towards 
becoming a Values Based Learning 
Organisation, building on the foundations 
laid in 2003 04. 

Key achievements and milestones include:

  Learning Framework

The Learning Framework rolled out nationally 
accredited training in a number of key strategic 
areas at a range of levels across the department. 
Topic areas include:

  leadership;

  change management;

  basic project management;

  complex project management;

  coaching and mentoring;

  managing confl ict;

  dealing with confl ict;

  risk management;

  writing skills;

  working in government;

  leading and managing work teams; and

  basic information technology skills.

The department has contracted a panel 
of preferred providers to deliver training, 
development, recognition and assessment 
services aligned to national Vocational 
Education and Training (VET) and Higher 
Education standards. A Virtual Learning Centre 
was established to deliver online resources, 
information and self-assessment tools to guide 
development of staff.

  National and State Recognition of Work

The department s Learning Framework and 
Values Based Learning Organisation (VBLO) 
activities were recognised at the national and 
state level receiving an award of merit, The 
Commissioner s Award for Human Resource 
Achievement 2004. The activities were presented 
at the Australian Institute of Management, 
Umanage 2004 conference, the Meeting the 
Challenges Workshop   Australian Public 
Services Commission 2005 and more recently at 
the VET Quality Forum 2005   Using Training 
Packages to meet Future Challenges. Private and 



47

Annual Report 2004   2005

public sector organisations have expressed 
interest in the department s program.

  Performance Development

The Performance Development Policy 
and Guidelines were reviewed and training 
of managers instigated. Staff are now 
required to ensure that participation in 
development activities associated with 
the Learning Framework link to their 
performance development plans. This is 
creating individual ownership and shared 
responsibility between individuals and 
managers for performance development. 

An on-line self assessment tool has been 
created for staff to evaluate their current level 
of competency in specifi c technical areas against 
national standards. The tool is also available 
for managers to assist them in enrolling staff 
in appropriate development activities.

Communication and Behaviour

A code of commitment to leadership excellence 
has been developed and adopted by Health 
Executive. Change management workshops 
and support resources have been instigated to 
support change processes within the department.

Workforce Planning and Development

Labourforce profi les and reports on workforce 
strategy and policy were developed for nursing 
and midwifery, medical and medical physicists 
workforce groups and are available at 
www.dh.sa.gov.au/nursing, and 
www.health.sa.gov.au/medicaloffi cer.

The human resource data warehouse is in fi nal 
stages of development and testing and will 
become fully operational in 2005 06.

The Education Liaison Forum   a meeting 
of senior department offi cers and the three 
Pro-Vice Chancellors from the South Australian 
universities with responsibility for health science 
programs   has agreed to undertake a research 
project addressing the clinical placement 
aspects of the educational courses for all 
health professionals.

Negotiations with the Department of 
Further Education, Employment, Science and 
Technology have made it possible to extend 
access to a wider range of traineeships and new 
apprenticeship arrangements including allied 
health assistance, nutrition and dietetics support, 
community and hospital pharmacy assistants 
and health technicians.

South Australian Government Wages Parity 
(Salaried) Enterprise Agreement 2004

On 29 October 2004 the South Australian 
Government (Public Sector Salaried 
Employees) Salaries Interim Award 2004 came 
into effect providing an interim salary increase 
of 3.5% and maintaining status quo conditions 
of the existing enterprise agreement. The Full 
Commission also awarded 12 weeks paid 
maternity/adoption leave operative from 
5 May 2005. 

South Australian Government Wages Parity 
(Federal) Enterprise Agreement

On 8 April 2005 the Full Bench issued an 
Award that operates for one year and provides 
for a $30 per week wage increase operative 
from the date of the decision. The scope of 
the Award was confi ned to electricians.

South Australian Government Wages Parity 
(Weekly Paid) Enterprise Agreement 2004

The South Australia Government Wages 
Parity Enterprise Agreement 2001 expired on 
22 November 2003. The Industrial Relations 
Commission (IRC) of South Australia certifi ed 
the South Australian Government Wages 
Parity (Weekly Paid) Enterprise Agreement on 
28 October 2004 to operate until 27 October 
2006. Key outcomes of the agreement include: 

  two $30 per week salary increases over 
the life of the agreement; eight weeks paid 
maternity/adoption leave; 

  adoption of a new classifi cation structure 
for plumbers and gasfi tters; and 

  an increase of on-call/recall allowances. 
Over the life the Agreement a review of 
the classifi cation criteria contained within 
the South Australian Government Health 
Etc Ancillary Employees Award will be 
undertaken. 

Nurses (South Australian Public Sector) 
Enterprise Agreement 2004

The Nurses (South Australian Public Sector) 
Enterprise Agreement 2001 expired on 31 
March 2004. The Australian IRC certifi ed the 
Nurses/Midwives (South Australian Public 
Sector) Enterprise Agreement on 1 October 
2004. The Agreement operates until 30 June 
2007. Key outcomes of the Agreement include: 

  16.5% salary increases over the life 
of the Agreement; 



48

Department of Health 

  reintroduction of qualifi cation allowances 
of between 3.5% and 5.5% of the RN/
RM 1 salary; 

  cash incentives up to a maximum of $4 000 
per annum for rural and remote nurses; 

  an average of 3 days per week set aside for 
non-clinical duties for RN-3 s (who have 
clinical duties); and 

  an increase of the night shift penalty rate 
from 15% to 17%. Over the life of the 
agreement, a review of the career structure 
and review of workloads and staffi ng 
methodologies in community health and 
community mental health areas will be 
undertaken and standard 10 hour night shifts 
will be introduced unless otherwise agreed.

Salaried Medical Offi cers 
Enterprise Bargaining

The Department of Human Services Salaried 
Medical Offi cers Enterprise Agreement 2003 
expired 14 April 2005. The Government made 
an offer to the South Australian Salaried 
Medical Offi cers Association (SASMOA) for 
a new Enterprise Agreement on 14 April 2005, 
which was rejected. At the Government s 

request, the matter was referred to the IRC 
of South Australia for conciliation. The 
conciliation process commenced on 31 May 
2005 before Deputy President Bartel.

Clinical Academics Enterprise Bargaining

The Department of Health Clinical Academics 
Enterprise Agreement 2005 (CAEA) was 
approved as a provisional enterprise 
agreement by the IRC of SA on 5 November 
2005 for a period of six months (expiring 
5 May 2005). The CAEA allowed health units 
to employ clinical academics for the fi rst time 
and they commenced employment with heath 
units from early 2005. 

Agreement was reached with SASMOA to 
continue the provisions in the CAEA until 
5 August 2005. Negotiations for a new CAEA 
formally commenced 4 May 2005.

Visiting Medical Specialists Agreement

The department and SASMOA completed 
a review of on-call and recall arrangements 
pursuant to clause 35 of the DHS Visiting 
Medical Specialists Agreement 2003, reaching 
agreement for improved arrangements.

Employment Numbers 
Figures are at 30 June 2005. They do not include employees on leave without pay in June 2005. 
Figures prior to 2004 05 are refl ected as Department of Human Services.

Persons 801
FTE s 742.4
Number of persons separated from the agency during the 2004 05 fi nancial year 280
Number of persons recruited to the agency during the 2004 05 fi nancial year 128
Number of persons on leave without pay at 30 June 2005 30

Number of Employees by Salary Bracket

Salary Bracket Male Female Total

$0   $38 599 23 114 137
$38 600   $49 999 53 125 178
$50 000   $65 999 113 190 303
$66 000   $85 999 62 73 135
$86 000+ 31 17 48
Total 282 519 801



49

Annual Report 2004   2005

Status of Employees in Current Position

FTE s

Sex Ongoing
Short-term 

contract
Long-term 

contract Casual Total

Male 189.78 45.4 41 0.72 276.9
Female 316.67 103.03 45.8 0 465.5
Total 506.45 148.43 86.8 0.72 742.4

Persons

Sex Ongoing Short-term 
contract

Long-term 
contract

Casual Total

Male 192 46 43 1 282
Female 349 119 51 0 519
Total 541 165 94 1 801

Number of Executives by Status in Current Position, Gender and Classifi cation

Ongoing
Contract 
Tenured

Contract 
Untenured Total

Classifi cation Male Female Male Female Male Female Male Female Total

EL0101 2 0 0 0 0 0 2 0 2
EXEC0A 0 0 5 1 1 0 6 1 7
EXEC0B 0 0 2 3 1 2 3 5 8
EXEC0C 0 0 3 0 2 0 5 0 5
EXEC0D 0 0 0 0 4 1 4 1 5
EXEC0F 0 0 0 0 1 0 1 0 1

Leave Management
Average Days Leave Taken Per Full Time Equivalent Employee

Leave Type 2000 2001 2001 2002 2002 2003 2003 2004 2004 2005

Sick leave taken 6.5 6.3 6.9 7.57 5.65
Family carer s leave 
taken 

N/A 0.16 0.32 0.39 0.32

Special leave with pay N/A N/A 1.04 2.95 4.29



50

Department of Health 

Workforce Diversity
Number of Employees by Age Bracket by Gender

Age Bracket Male Female Total % of Total

15   19 1 0 1 0.12
20   24 9 29 38 4.74
25   29 23 74 97 12.11
30   34 30 48 78 9.74
35   39 35 54 89 11.11
40   44 35 77 112 13.98
45   49 49 97 146 18.23
50   54 45 81 126 15.73
55   59 40 45 85 10.61
60   64 13 14 27 3.37
65+ 2 0 2 0.25
Total 282 519 801 100

Number of Aboriginal and/or Torres Strait Islander Employees

Male Female Total % of Agency

Aboriginal/Torres Strait Islander 5 14 19 2.37

Cultural and Linguistic Diversity

Name Male Female Total % of Agency

Number of employees born overseas 32 80 112 13.98
Number of employees who speak 
language(s) other than English at 
home

14 35 49 6.12

Number of Employees with Ongoing Disabilities Requiring Workplace Adaptation

Male Female Total

Total 2 6 8

Voluntary Flexible Working Arrangements
Number of Employees Using Voluntary Flexible Working Arrangements by Gender

Leave Type Male Female Total

Purchased leave 1 3 4
Flexitime 243 480 723
Compressed weeks 1 1 2
Part-time job share 0 7 7
Working from home 8 16 24



51

Annual Report 2004   2005

Training and Development
The department provide management and development opportunities to staff through a number 
of programs including the Self Study and Infl uential Leadership Programs and access to a 
Virtual Learning Centre. 

Documented Individual Performance Development Plan 

Salary Bracket

% with 
a plan 

negotiated 
within the 

past 12 
months

% with a 
plan older 

than 12 
months

% no 
agreement

$0   $38 599 25.68 1.35 72.97
$38 600   $49 999 33.33 6.43 60.23
$50 000   $65 999 29.66 7.24 63.1
$66 000   $85 999 22.48 6.98 70.54
$86 000+ 31.82 9.09 59.09

% Of Training Expenditure Relative to Total Remuneration Costs

1999 00 7.2%
2000 01 8.3%
2001 02 6.3%
2002 03 3.1%
2003 04 3.9%
2004 05 3.8%

Equal Opportunity Employment Programs
State Government Youth Initiatives

The graduate and trainee programs continued in 2004 05 with 14 graduates and 65 trainees 
being recruited (13 graduates and 41 trainees recruited in the metropolitan area, one graduate 
and 24 trainees in regional locations).

2001 02 2002 03 2003 04 2004 05

Graduate program 36 26 23 14
Trainee program 145 80 78 65

Fraud
No instances of fraud were reported or detected within the department during the 2004 05. The 
department has a Fraud Policy and Procedure Document and Whistleblower Protection Policy. 

During 2004 05, internal audits were performed to detect instances of fraud within the 
department and ensure internal controls were adequate.



52

Department of Health 

Occupational Health, Safety and Welfare (OHS&amp;W) and Rehabilitation

2004 05 2003 04 2002 03

1 OHS legislative requirements

Number of notifi able occurrences 
pursuant to OHS&amp;W Regulations 
Division 6.6

Nil Nil Nil

Number of notifi able injuries 
pursuant to OHS&amp;W Regulations 
Division 6.6

Nil Nil 1

Number of notices served pursuant 
to OHS&amp;W Act s35, s39 and s40

Nil Nil Nil

2 Injury Management legislative 
requirements

Total number of employees who 
participated in the rehabilitation 
program

3 16 6

Total number of employees 
rehabilitated and reassigned to 
alternative duties

2 1 2

Total number of employees 
rehabilitated back to their original 
work

1 7 5

3 WorkCover Action Limits

Number of open claims as at 
30 June

16 33 27

Percentage of workers compensation 
expenditure over gross annual 
remuneration1

0.6% 0.5% 0.5%

4 Number of claims

Number of new workers 
compensation claims in the fi nancial 
year

25 25 29

Number of fatalities, (F)
lost time injuries, (LTI)
medical treatment only (MTO)

0
20
5

0
8
17

1
21
7

Total number of whole working 
days lost

104 498 53

5 Cost of workers compensation

Cost of new claims for fi nancial year2 $26 154.92 $121 084.85 $301 810.81
Cost of all claims excluding lump 
sum payments3

$388 990.004 $338 981.00 $145 783.00

Amount paid for lump sum  s42
payments (s42, s43, s44) s43

s44

0
0
0

$900.00
$27 786.55

0

$53 000.00
0

$193 462.505

Total amount recovered from 
external sources (s54)

$562.40 $70.00 $3 145.45

Budget allocation for workers 
compensation6

$232 557.00 N/A N/A



53

Annual Report 2004   2005

6 Trends

Most frequent cause (mechanism) 
of injury

Sprain/Strain Sprain/Strain Sprain/Strain

Most expensive cause (mechanism) 
of injury

Mental stress Mental stress Death

7 Meeting the organisation s 
strategic targets7

 Strategy

Department of Health 
Central Offi ce

EvaluationTarget June 2005

1 Workplace Fatalities 0 0 ?
2 New Workplace Injury Claims 23 25 X
3 Lost Time Injury Frequency Rate 0.99 1.4 X
4 Rehabilitation

  Assessment within 2 days 80% 8% X
  Commencement within 5 days 80% 52% X

5 Claim Determination
  Determined within 10 days 80% 84% ??
  Determined within 3 months 95% 85.7% x

6 Average Days Lost 22 4 ??
7 Return to work

  Return to work within 5 days 70% 36% X
  Return to work within 3 months 95% 52% X

Notes
1 Percentage of workers compensation expenditure over gross annual remuneration calculated 

as follows:
 2004 05 2003 04 2002 03
 388 989.69 354 001.00 388 663.00
 68 306 737.00 71 231 569.00 77 057 601.00
2 Claims costs for 2002 03 and 2003 04 have been amended from the previous annual reports to 

refl ect data that were reported incorrectly.
3 Claims costs for 2002 03 and 2003 04 were previously reported for Department of Human 

Services. These have been adjusted to refl ect only the Department of Health component to 
facilitate accurate comparative analysis for 2004 05 and have been amended to refl ect data 
that were reported incorrectly.

4  The Workers Compensation (IDEAS) reporting system indicates a total cost of $434 626.00 for 
2004 05. This fi gure includes costs from the Pika Wiya Health Service, Port Augusta Community 
Health Centre and BreastScreen SA, all of which have traditionally been listed under the 
Department of Health s WorkCover registration for ease of processing. The costs for these 
services have been excluded to facilitate accurate comparative analysis for 2004 05.

5 Payment of death benefi t (pursuant to Section 44 of the Workers Rehabilitation and 
Compensation Act, 1986) was previously listed as Section 43 payment.

6 Initial budget allocation as at June 2004
7 The Department of Health Central Offi ce has met or surpassed three of the 10 prevention and 

injury management targets set by Cabinet. The results indicate an improvement in claims 
management processes. However further improvement is required in injury prevention 
strategies and rehabilitation processes.



54

Department of Health 

Other Activities
Training 

Injury management training for managers and supervisors was completed as scheduled, with 
44 managers/supervisors from health central offi ce attending in 2004 05. 

Policies, Procedures, Guidelines and Forms

Documents developed and/or reviewed during 2004 05 include:

  Safe Driving Policy;

  OHS&amp;W Committee Terms of Reference and Procedures;

  OHS&amp;W Roles and Responsibilities;

  OHS&amp;W and Injury Management Policy Statement; and

  OHS&amp;W documents were converted from DHS to Department of Health branding and updated 
the documents in accordance with any relevant legislative changes.

The OHS&amp;W induction documents were modifi ed to include the Premier s Commitment Statement 
and to clearly describe reporting processes.

Overseas Travel Report 2004 05 for Public Sector Management Act 
employees 

Number of 
Employees Destination/s Reasons for Travel

Total Cost 
to Agency

1 China Attendance at the Annual International Association of 
Cancer Registries (IACR) Conference and an Executive 
Meeting of the IACR Council as Oceania representative.

$3 600

1 China Attendance at the 11th Annual Conference of the 
International Society of Quality of Life Research.

$3 400

1 Singapore Presentation of paper at the International Government 
Online 2004 Conference on the Human Services Finder 
application.

$560

1 United 
Kingdom

Attendance at the Mainstreaming Action on Health 
Inequalities Health Development Agency Conference 
2004 and Consultations with the National Health 
Service and UK Medical Research Council.

$5 000

1 Italy and 
United 
Kingdom

Attendance at the 47th Conference of the International 
Council of Alcohol and Addictions (ICAA) and ICAA 
board meetings.

$12 214

1 Canada Study tour with a delegation from DECS examining 
the integration of health and education services and 
to examine child protection initiatives in health.

$5 320

1 Malaysia Study tour examining emergency planning and 
response to a bio-terrorist attack.

$0

1 Canada and 
United States

Attendance at Integrated Chronic Disease Prevention 
Conference and site visit to the Framingham 
Heart Study.

$4 655

1 United States Attendance at the ProSight Customer Summit 2004 
Conference and ProSight (Portfolio Management) 
client site visits.

$4 734



55

Annual Report 2004   2005

1 United 
Kingdom

Study tour to  Modernisation Agency in London, in 
order to gain insight of how change processes have been 
introduced within the English health care system.

$5 400

1 Denmark Attendance at the WHO Global Salm-Surv Strategic 
Meeting for Regional Centres and Training Sites in 
Copenhagen.

$2 755

1 Switzerland Attendance at a meeting on revision of the WHO 
Guidelines for Drinking Water Quality in Geneva.

$0

1 United States Attendance at the NAED Navigator Conference 
in Baltimore USA and visit to New York 
communication centre.

$8 900

1 United 
Kingdom

To present to the World Congress of Disaster Medicine, 
in Scotland, regarding the recent Tsunami mission and 
the role of the team leader of an Australian relief team.

$6 520

1 Sweden 
and United 
Kingdom

Study tour to Linkoping Sweden to complete a training 
session in the Emergotrain System and attendance at the 
International AMBEX Conference held in London.

$14 850

2 Canada Attendance at the OACIS Quality Council &amp; Users  
Group in Ottawa.

$11 295

1 Canada Attendance at the 15th World Conference on Disaster 
Management in Toronto.

$5 863

1 Italy Attendance at the Social Epidemiology: Embodiment, 
Life Course and Contest Course, part of the European 
Educational Programme in Epidemiology in Florence.

$3 000

1 United 
Kingdom, 
Canada and 
United States

To update and familiarise with primary health care 
practices and systems in the United Kingdom, Canada 
and the United States.

$7 800

1 United 
Kingdom

To meet with potential candidates from the United 
Kingdom for the SA Ambulance Service Deputy Chief 
Executive position and attendance at the International 
AMBEX Conference in London.

$11 100

1 United States To attend the Wharton &amp; Wharton Fellows Program 
in Management for Nurse Executives in Philadelphia.

$0

1 Paris, Rome 
and London

To attend World Health Conference (Paris), Children s 
Health Executive Conference (Rome); European Quality 
and Safety Conference (London).

$17 919

23 $134 885

Note: Cost to agency excludes employee related expenditure.



56

Department of Health 

Energy Effi ciency Action Plan Report
In November 2001 Cabinet approved the Government Energy Effi ciency Action Plan, a comprehensive 
whole of government energy management program to improve energy effi ciency across all sectors 
of the government s operations. This initiative is an integral part of the National Greenhouse Strategy 
and incorporates the South Australian Government s target of reducing energy use in government 
buildings by 15% by 2010 (the base year being 2000 01). In March 2004 the State Government 
released the South Australia Strategic Plan in which it increased the target to a 25% reduction from 
the 2000 01 baseline by 2014 (target 3.2). 

The Department of Health is a very large consumer of gas and electricity accounting for 
approximately 50% of all building energy consumed by the government sector in South Australia. 
As such it is one of the key departments determining whether this target will be achieved.

The table below provides energy use information for all energy (other than transport energy) 
consumed by the department in the three years between the base year 2000 01 and this reporting 
period 2004 05. 

Energy (Gj*) Expenditure $ CO2 Tonnes Gj (% Change 
from Baseline)

Base Year 2000 01

DHS Building Energy 1 257 634 $18 045 922 205 717

2001 02

DHS Building Energy 1 244 267 $20 762 259 201 546 98.94%

Portfolio Target 
( 1.5% from 2000 01) 1 225 603 198 523

2002 03

DHS Building Energy 1 254 901 $21 713 256 208 954 99.78%

Portfolio Target 
( 3% from 2000 01) 1 206 939 195 499

2003 04

DHS Building Energy 1 305 172 $22 733 705 217 819 103.78%

Portfolio Target ( 4.5% from 
2000 01) 1 188 275 192 476

2004 05

DH Building Energy 1 280 479 $23 304 661 214 175 101.82%

Portfolio Target 
( 6% from 2000 01) 1 169 611 189 453

2009 10 Portfolio Target

( 15%) 1 068 989 174 859

2013 14 Portfolio Target

( 25%) 943 225 154 288

*GJ includes all fuel types used.



57

Annual Report 2004   2005

Energy Reduction Targets:

In 2004 05 the department s energy 
consumption decreased by approximately 2% 
from the previous year. However, the energy 
consumption remains approximately 1.8% 
above the 2000 01 baseline and is 9% behind 
its interim 2004 05 energy reduction target.

There are many reasons the consumption 
for 2004 05 is above our baseline:

  the department commissioned a number 
of new facilities and substantially 
increased the fl oor area of a number of 
existing facilities in the period between 
2000 01 and 2004 05. Floor area within 
the department s jurisdiction increased by 
approximately 8.5% during the preceding 
four years;

  energy consumption in South Australia s 
public hospitals (which account for 93% of 
all building energy use by the department) 
has grown by 2.5   3% per annum over the 
last decade; and

  the department is actively pursuing several 
major energy reduction projects (most 
notably cogeneration) as part of a strategic 
approach. It will take some years before 
these projects are fully operational and 
therefore effective in achieving targets. 

As such, progress towards the 15% target 
is not expected to be linear, even though 
individual health units are achieving 
incremental reductions. Given the reasons 
outlined above, a 0.68% increase in 
department energy use over the last 
four years is considered an acceptable 
interim result.

Major initiatives to assist in reducing 
energy consumption:

  Cogeneration: During 2003 04 and 2004 05 
the department undertook extensive 
investigations into the feasibility of 
installing large gas fi red cogeneration 
systems at FMC and the RAH. These 
investigations revealed that in addition to 
greatly enhancing the security of supply 
at RAH and FMC, cogeneration has the 
potential to signifi cantly reduce total 
departmental energy use. Documentation 
is now being developed to obtain 
appropriate approvals to proceed 
with this initiative.

  Greenstar: During 2004 05 the department 
in consultation with the Department of 
Administrative and Information Services 
provided substantial funding to the 
Australian Green Building Council to 
develop a health sector specifi c building 
and design environmental assessment 
tool to be known as Greenstar Health. 
The department is currently assisting in 
the development of this tool by trialling 
a pilot version of this tool as part of 
the TQEH redevelopment. This tool is 
expected to be available for use nationally 
in late 2006.

  TQEH: In addition to assisting in the 
development of the Greenstar Health tool, 
the TQEH redevelopment teams have 
committed themselves to building a 
highly energy effi cient facility that will 
consume 25% less energy than the current 
facility; this would deliver a further 
2.8% reduction in total department 
building energy use. 

  RGH: During the previous three years 
the RGH (formerly one of the most 
energy ineffi cient public hospitals in 
South Australia) implemented a number 
of projects resulting in a 19% reduction 
in site wide energy use. Key initiatives 
included installation of a large solar hot 
water system (delivering a 50% reduction 
in site wide gas consumption) installation 
of lighting voltage reduction technology 
(a 20% reduction in site wide lighting 
energy) and a major redesign of the air 
conditioning system to operating theatres 
resulting in improved user comfort while 
signifi cantly reducing electricity demand. 
These initiatives have reduced RGH 
greenhouse gas emissions by 1 039 tonnes; 
equivalent to taking 250 cars off the road. 

  FMC &amp; RGH Mental Health Units: During 
2004 05 construction of the Mental Health 
facilities at FMC and RGH commenced. 
Both facilities are designed to be highly 
energy effi cient and are designed to 
deliver the equivalent of a fi ve star energy 
performance standard. Innovations 
include solar hot water, high effi ciency 
glazing, high effi ciency air-conditioning 
solution including an economy cycle, 
extensive use of best practice passive 
design techniques, including extensive 



58

Department of Health 

provision of access to natural light, high 
effi ciency lighting fi xtures, automated 
lighting controls, heat recovery, low fl ow 
plumbing fi xtures to reduce hot water 
energy consumption and provision of state 
of the art building management systems 
that will assist in minimizing energy use 
in these facilities while maintaining 
user comfort.

Urban Design Charter
Although the Charter was only adopted 
in 2004 05, major public projects that have 
signifi cant impacts upon urban design and 
incorporate important public spaces have 
been developed in a manner fully consistent 
with the Charter s principles. Current 
and future projects will proceed with full 
reference to the Charter and to the need for 
annual reporting.

Asbestos Management in 
Government Buildings
The health portfolio has 178 buildings 
comprising 82 hospital sites and 96 primary 
health and other agency accommodation. 
The department uses the Strategic Asset 
Management Information System to record all 
portfolio built assets. The register does not yet 
include the asbestos status of all buildings. This 
will be rectifi ed over time as data are collected 
on sites to provide annual reports of the asbestos 
removal program for each year of recording. In 
2004 05, the department assessed 64 sites for the 
presence of asbestos and determined asbestos 
status according to fi ve categories. During the 
year asbestos was removed from 20 sites as 
detailed on the asbestos risk reduction table on 
page 84. It is routine practice to scope asbestos 
assessment and removal in every health 
redevelopment project.

Section 1: Priority and Removal Activities

Site 
Asbestos 
Presence 
Status

Priority for 
Site Risk 

Assessment

No of sites 
in Priority 

Group
Risk Reduction Program: Activities 
Conducted During 2004 05

Quantifi cation 
of Activities 
(By item/By 
Area/By $)

No data 114 Yet to be assessed

Unstable, 
Accessible; 
or Unstable, 
Damaged 
or Decayed

Urgent 9   Tailem Bend   asbestos pipe 
insulation removed in ceiling space

  Murray Bridge   asbestos removed 
as part of redevelopment

  Repatriation General   asbestos 
removed as part of steam system 
decentralisation

  Whyalla   asbestos removed as part 
of air conditioning upgrade

Removal work 
undertaken at 

4 sites

Unstable, 
Inaccessible; 
or Unstable, 
Partly 
Accessible

High 10   Kangaroo Island   asbestos removed 
as part of Aged Care works

  Bordertown   asbestos removed 
as part of Aged Care Project

  Jamestown   asbestos removed 
as part of Aged Care Project

  Naracoorte   asbestos removed 
as part of Aged Care Project

  Pt Pirie   asbestos removed as part 
of Hummel House upgrade

  Royal Adelaide   asbestos removed 
in current building works

Removal work 
undertaken at 

6 sites



59

Annual Report 2004   2005

Stable, 
Accessible; 
or Stable, 
Accessible, 
Initial Signs 
of Decay

Medium 37   Angaston   asbestos tiles and 
vinyl removed

  Burra   asbestos pipe insulation 
removed

  Ceduna   asbestos removed as 
part of current sustainment works

  Clare   asbestos removed as 
part of redevelopment works

  Eudunda   asbestos removed 
as part of Aged Care Project

  Kapunda   asbestos removed 
as part of current building works

  Millicent   asbestos removed 
as part of Aged Care Project

  Renmark   asbestos removed 
as part of redevelopment project

Removal work 
undertaken at 

8 sites

Stable, 
Inaccessible; 
or Stable, 
Partly 
Accessible

Low 6   Laura   asbestos removed as 
part of Aged Care redevelopment

  Cummins   asbestos removed 
as part of fi re upgrade works

Removal work 
undertaken at 

2 sites

Asbestos 
Free

Not 
applicable

2 No activities required

Section 1: Priority and Removal 
Activities
Site Asbestos Presence Status

  Indicates what types of asbestos containing 
materials (ACMs) can be present at each 
site, as recorded in the Asbestos Register.

Priority for Site Risk Assessment

  Indicates the associated priority for further 
whole of site risk assessment, based on 
type of ACM present at each site.

No of Sites in Priority Group

  Indicates how many sites have at least one 
item of ACM of that type present.

  This provides an initial summary of what 
ACM items are present over a portfolio, 
and how further whole of site risk 
assessment should be prioritised.

Risk Reduction Program: Activities 
Conducted During 2004 05 (Commentary)

  A brief, qualitative description of 
planning/analysis and removal works 
undertaken over the elapsed year, 

indicating: analysis work being or 
to be undertaken, what ACMs have 
been targeted (such as roofi ng/eaves, 
equipment fi ttings such as insulation or 
gaskets, or damaged cladding on walls, 
partitions or ceilings).

  Site names can be used but are 
not mandatory.

Quantifi cation of Activities: ACMs 
Removed (By Item/By Area/By $)

  Quantitative totals of how many items 
(as recorded in the Asbestos Register), 
and/or how many square metres (or linear 
metres, cubic metres etc), and/or level 
of expenditure for removal of ACMs over 
the elapsed year.

Defi nitions
  ACM: Asbestos Containing Material

  Unstable: Denotes Non-Friable ACMs 
of Poor Condition, or Friable ACMs of 
Medium or Poor Condition, as recorded 
in the Asbestos Register



60

Department of Health 

  Stable: Denotes Non-Friable ACMs or 
Good or Medium Condition, or Friable 
ACMs of Good Condition, as recorded in 
the Asbestos Register

Sustainability Reporting
The Greening of Government Steering 
Committee is developing a  Greening 
Of Government Scorecard  which is 
intended to form the template for future 
departmental sustainability reporting. 
A pilot GoGO (Greening of Government 
Operations) Score card is scheduled for 
release for agency consultation in late 2005. 
Offi cers from Asset Services are keeping 
abreast of these developments and are 
putting in place processes to gather the 
primary data necessary for completing 
the scorecard. 

Regional Impact Assessment 
Statements (RIAS)
There were no RIAS undertaken during 
2004 05.

Freedom of Information 
Information Statement 

The Freedom of Information Act 1991 gives 
members of the public a legally enforceable 
right to access information held by the 
South Australian Government, subject 
to certain restrictions.

The internet site at www.health.sa.gov.au 
provides an overview of the department s 
roles and functions and contains media 
releases, service provider details, 
publications and news items.

Structure and functions of the Department 
of Health 

The Department of Health sets directions, 
formulates policy and monitors the 
performance of South Australia s health 
services and systems.

In 2004 05 the department announced a 
new structure designed on principles of 
operational functionality. Five divisions 
report to the Chief Executive:

  Aboriginal Health

  Health System Improvement and Reform

  Health System Management

  Offi ce of the Chief Executive

  Public Health and Clinical Coordination

Functions of the department affecting the public

The major interface of the department with the 
public involves setting the policy framework 
for health care and delivering services in 
public and environmental health, health 
prevention and promotion and hospital and 
community services.

Public participation

The public can contribute to policy 
development within the Department of 
Health in a number of ways. External 
expertise and policy advice is sought through 
statutory and non-statutory advisory 
committees, comprising both government 
and non-government representatives. 
Advice is taken from peak non-government 
organisations and a consultative process 
may be undertaken in the planning, 
development and implementation of policy. 
The department consults with major consumer 
groups, circulates discussion papers, calls 
for submissions on particular topics and 
convenes public meetings regarding legislative 
reform and impacts within metropolitan and 
country areas. Community input is sought 
prior to implementation of decisions relating 
to planning development and evaluation of 
services. These processes facilitate access 
to services and assist informed decisions 
about health.

Types of documents held 

The Department of Health holds various 
health publications including administrative 
fi les, books, discussion and background 
papers, reports, reviews, serial publications, 
pamphlets, codes of practice, surveys, 
guidelines, policies, programs, strategies, 
directories, evaluations and assessments and 
proposals. Other documents held include 
procedure manuals, administrative circulars 
on general management, fi nance, staffi ng, 
plant and equipment, property, motor vehicles 
and industrial circulars. 

The Tobacco Surveillance Unit has a small 
range of free anti-smoking stickers, leafl ets 
and information sheets available 
(telephone: 1300 363 703). 

The constitutions of hospitals and 
health centres incorporated under the 
South Australian Health Commission Act 1976 



61

Annual Report 2004   2005

may be inspected in the Legal and Governance 
Unit, 10th fl oor, 11 Hindmarsh Square, 
Adelaide (telephone: 8226 6178).

The departmental library is the fi rst point of 
contact for policies and documents. The library 
keeps information on where publications are 
stored and whether they are free, for sale, or 
accessible for inspection. Access to documents 
can be arranged by contacting the library. The 
address of the Department of Health library is:

Department of Health Library
Level 2, 162 Grenfell Street
Adelaide South Australia 5000 
Telephone: 8226 7043
Facsimile: 8226 6677 
www.health.sa.gov.au/library

Arrangements and Procedures for seeking access 
to records and policies

Applications for access to information under 
the Freedom of Information Act, 1991 legislation 
including purchase costs, or amendment 
of Department of Health records should 
be addressed to:

FOI Offi cer
Department of Health
PO Box 287 Rundle Mall
Adelaide SA 5000
Telephone: 8226 0721

Policy documents

Policy documents affecting the public 
are listed on the next page.



62

Department of Health 

Department of Health Policy Index
Mental Health

  New Millennium   A New Beginning: Mental 
Health in SA   Implementation Plan 2000 2005 

  A New Millennium   A New Beginning: Action 
plan for reform of Mental Health Services 

  Country Mental Health Commitment 
2001 2005 

  EDM P8 02: Emergency Demand 
Management and the Assessment and 
Crisis Intervention Service 

  EDM P3 02: Admission, Care, Utilisation and 
Discharge in Psychiatric Intensive Care Units 

  EDM P2 02: Admission, Care, Utilisation 
and Discharge in Acute Mental Health 
Inpatient Units 

  EDM P1 02: Mental Health Emergency Demand 
Management Best Practice for South Australia

  EDM P7 02: Emergency Transport of Mental 
Health Consumers from Country Areas

  EDM P6 02: Restraint and Seclusion in Health 
Units (Including Mental Health Situations) 

  EDM P5 02: Mental Health Emergency Demand 
Management Contingency 

  EDM P4 02: Mental Health Emergency Demand 
Management for Children and Young People 

  Effective Communication and Protection of 
Privacy: Achieving the balance in Mental 
Health Services

  Initiating Glenside Campus Reform: 
The First Steps 

  Master Plan for Reform of the Mental 
Health System

  Mental Health First Aid 

Aboriginal Health 

  Rekindling Family Relationships: Framework 
for Action 2001 2006 

  South Australian Aboriginal Substance Misuse 
Policy and Strategic Framework

  Agreement on Aboriginal and Torres Strait 
Islander Health

  Improving Indigenous Birthing 
Outcomes  Strategy

Departmental

  Code of Fair Information Practice for the 
Department of Human Services

  Department of Health Strategic Directions 
2003 2006

  Healthy Start Implementation Plan 2000 2011

  Primary Health Care Policy Statement 
2003 2007

  Research and Evaluation Framework and Social 
Research Agenda 2002 2005

  Reconciliation   DHS Statement 
of Acknowledgement   Protocols

  Your Rights and Responsibilities: 
A Charter for a Public Health System

  Women s Health Policy

Health

  Ambulance Diversion Policy

  Authorisation of Non-Coronial (hospital) 
Autopsies

  Diabetes Strategic Plan and Strategies 
2003 2006

  Emergency and Trauma Services 
Implementation Plan 2000 2011

  Guidelines for the Assessment of Clinical 
Privileges for the Purpose of Granting 
Admitting Privileges for Nurses and Midwives 
in South Australia

  Management of Elective Surgery

  Operational Policy, Guidelines and Standards 
for Maternal and Neonatal Services in 
South Australia

  Protocol for the Police Investigations into 
Unnatural or Suspicious Deaths and Injuries 
and/or Major Criminal Activities in Public 
Health Care Facilities

  Regionalisation of Paediatric Trauma 
Management

  Renal and Urology Services Implementation 
Plan 2000 2011

  South Australian Nursing and Midwifery 
Recruitment and Retention Strategic Directions 
Plan 2002 2005 

  South Australian Nursing and Midwifery 
Recruitment and Retention Strategic Directions 
Plan 2002 2005: Implementation Plan 

  South Australian Drug Strategy 2005 2010

  Strategic Plan for Palliative Care Services 
1998 2006



63

Annual Report 2004   2005

Appendix 5: Financial Performance
Account Payment Performance

Particulars
Number of 
accounts paid

Percentage of 
accounts paid 
(by number)

Value in $A of 
accounts paid 

Percentage of 
accounts paid 
(by value)

Paid by due date 35 145 80.07% $2 510 236 021.32 97.38%
Paid late but paid within 
30 days of due date

6 146 14.00% $47 695 602.33 1.85%

Paid more than 30 days 
from due date

2 604 5.93% $19 799 573.18 0.77%

Contractual Arrangements
There were three contracts greater than $4 million, which extend beyond a single year:

Contract Key Objectives

Private 
sector 

Participant
Duration of 

arrangements

Details 
of assets 

transferred

Contingent 
and other 
liabilities

General 
funding

The provision of a broad 
range of sexual and 
reproductive health and 
education services for the 
South Australian community

Sexual 
Health 

Information 
Networking 

and 
Education 

South 
Australia 

Incorporated

1 October 
2004   30 June 

2007

Nil Nil

Metropolitan 
Home Link 
Service

The provision of the 
Metropolitan Home Link 
Service which aims to reduce 
hospital admissions to 
metropolitan public hospitals 
from hospital emergency 
departments and general 
practices

Advanced 
Community 

Care 
Association

1 July 2003 
  31 June 2006

Nil Nil

Modbury 
Public 
Hospital 
Torrens 
Valley 
Private 
Hospital 
Amending 
Agreement

To amend agreements, 
executed 3 February, 1995, 
that provided for the 
management and operation 
by Healthscope of the MPH, 
the Head Lease of the site 
of MPH from the SAHC to 
the MPH Board (Board), an 
underlease of a portion of the 
site of MPH from the Board 
to Healthscope and for the 
design, construction and 
commissioning of a 65 bed 
acute medical, surgical and 
obstetrics hospital adjacent 
to MPH

Healthscope 
Limited

The term of 
the amending 
agreement is 
the term of 

the agreement 
it amends 
(19 August 

1997 
  5 February 

2010)

Nil Nil



64

Department of Health 

External Consultancies 
South Australian Health Commission

The SAHC did not engage any staff or consultants specifi cally to perform any of the activities 
undertaken in 2004 05.

Department of Health

There were 44 consultancies in 2004 05 with total expenditure of $1 309 771.
Range No. of Consultants Expenditure
Below $10 000 20 $91 129
$10 000   $50 000 17 $319 067
Above $50 000 7 $900 575

Details of consultancies above $10 000 are below:

Consultant Consultancy $
PSI Consulting Probity Advice   Clinical Management &amp; Nursing Admin 

System
10 759

MA International Review of Postgraduate Medical Council 11 000
PSI Consulting Probity Audit Services for the Alternative Care Tender Process 11 591
PSI Consulting Probity Advice   Mental Health Packages Provider Panel 12 253
Precise Media 
Management

South Australian Women s Health Policy Booklet 12 766

Central Sydney Area 
Health Services

Strategic Review Repatriation General Hospital   in 
conjunction with Helen Chalmers

13 457

Materne Pennino Hoare Accommodation Review of SADS &amp; ACCHS 13 590
Kate Barnett &amp; Assoc Strategic Directions for Women s Health 17 845
KPMG Forensic Accounting &amp; Service Review 18 000
Michael Forwood Services Planning in the South Australian Health System 18 900
PricewaterhouseCoopers Tax Consulting Services 19 515
Health Outcomes 
International

Population Based Planning for Mental Health Services   
South Australia 

20 000

Healthcare Management 
Advisors

Compile &amp; analyse health costs in non-metropolitan areas 20 000

Ernst &amp; Young Further work on Post Implementation Review of Component 
Parts of the OACIS Program

23 000

ISM Assoc Security Audit on Hospitals 28 891
University of South 
Australia

Advice on Asylum Seekers in The Immigration Detention 
Project

31 500

University of South 
Australia

Clinical Care Pathways Consultancy. Develop model of mental 
health pathways of care illustrating treatment alternatives

36 000

Des Semple &amp; 
Associates

Review of the structure, Functions and Roles of the Mental 
Health Services &amp; Program Unit

57 607

Ian Bidmeade 2004 Mental Health Legislation Review 70 909
Helen Chalmers Strategic Review Repatriation General Hospital 76 694
Checklist Partnership Acute Care &amp; Clinical Services   SAM (Bed Modelling) 89 531
Ernst &amp; Young Review of Financial Management 215 344
Cogent Business 
Solutions

Hotel Services Audit 169 814

PKF Accounting PBT Review of hospital  Hotel Services  220 676
Total 1 219 642



65

Annual Report 2004   2005

Aboriginal and Torres Strait 
Islander People
Aboriginal Health, Everybody s Business: regional 
resource package: a South Australian Strategy for 
Aboriginal &amp; Torres Strait Islander people 2005 
2010. Adelaide: South Australian Aboriginal 
Health Partnership, 2004.

Inequality in South Australia: key determinants of 
wellbeing. Adelaide: Dept. of Health, 2004.

Dept of Health
Strategic Directions 2004 06. Adelaide: 
Dept of Health, 2004.

Family Violence
Seeing Red Facilitation Manual: a group program 
for working with young men (ages 12 15) around 
issues of anger and their use of violence/compiled 
by Tara-Lee Baohm. Adelaide: Northern 
Metropolitan Community Health Service, 
Shopfront Youth Health and Information 
Service, 2004.

Funding
Casemix Funding for Health: hospitals, 2004 05/
Department of Health. Adelaide: Department 
of Health, 2004.

Health Promotion
Life s Breath 2003 2004: tobacco awareness 
project. Adelaide: SA Dept. of Health, 2004.

Mental Health Promotion Storybook: summaries of 
various mental health promotion projects conducted 
by government and non-government organisations 
in the Hills Mallee Southern Region/prepared 
by Janet Chambers. Murray Bridge, S. Aust.: 
Hills Mallee Southern Regional Health 
Service, 2004.

Tobacco Wars: a comic for new arrivals from 
culturally and linguistically diverse backgrounds. 
Adelaide: Migrant Health Service, Adelaide 
Central Community Health Service, 2004.

Health Services
Developing a Clinical Priority Setting 
Framework/ Sandra G. Leggat. Adelaide: 
Dept. of Health, 2005.

A Guide to Mental Health Services in South 
Australia 2004. Adelaide: Dept. of Health, 2004.

Midwifery skills enhancement project for rural &amp; 
remote midwives of South Australia: fi nal report/
Marcia Hakendorf. Adelaide: Dept. of 
Health, 2004.

Paving the Way: review of mental health 
legislation in South Australia: report/prepared 
by Ian Bidmeade on behalf of the Review 
Committee on Mental Health Legislation for 
the Mental Health Unit, Department of Health. 
Adelaide: Dept. of Health, 2005.

Recognising the past   rewriting the future: 
a new partnership with rural doctors. 
Adelaide: Department of Health, 2005.

Overview: Strategic Directions for Country Health, 
2005 2010. Adelaide: Dept. of Health, 2004.

Strategic Directions for Country Health, 
2005 2010/Dept. of Health, Country Health 
Division. Adelaide: Dept. of Health, 2004.

Strengthening Support for Women with Breast 
Cancer in rural and remote South Australia: 
evaluation report 2004. Adelaide: Dept. 
of Health, 2004.

Law &amp; Legislation
An Explanation of a Medical Power of Attorney 
and an Anticipatory Direction. Adelaide: Dept. 
of Health, 2004.

A Guide for those Completing a Medical Power of 
Attorney. Adelaide: Dept. of Health, 2004.

Professional Indemnity: medical malpractice 
program. Adelaide: Department of Health, 2005.

OHS&amp;W
Employees Engaged in High Risk Maintenance 
and Trade Related Work in the Department of 
Health. Adelaide: Department of Health, Injury 
Prevention and Management Services, 2004.

Public Health
Baseline Biomedical and Self-report Data/ Janet 
Grant[et al.]. Adelaide: Dept. of Health, 2005.

Guide to the Labelling of Packaged Food for 
Retail Sale/produced by the Food Section, 
Environmental Health Services, Department 
of Health. Adelaide: Dept. of Health, 2004.

Appendix 6: Reports And Publications



66

Department of Health 

Guidelines on the Safe and Hygienic Practice 
of Skin Penetration/South Australian Health 
Commission. Adelaide: Dept. of Health, 2004.

Healthy Mouths, Healthy Lives: Australia s 
national oral health plan 2004 2013/prepared 
by the National Advisory Committee on Oral 
Health. Adelaide: Dept. of Health, 2004.

Physical Activity in South Australian Adults, 
September 2004/prepared for the Physical 
Activity Council by Tiffany Gill, Anne Taylor. 
Adelaide: Population Research and Outcome 
Studies Unit, SA Department of Health, 2005.

What Works?: a systematic review of the evidence 
for the effectiveness of community health in 
Adelaide/Gwyn Jolley [et al.]. Bedford Park, 
S. Aust.: South Australian Community Health 
Research Unit, 2004.

Public Hospitals
Hospital Avoidance and Demand Management: 
business case: summary document. Adelaide: 
Dept. of Health, Metropolitan Health 
Division, 2004.

Refugees
Awakenings: 2003   2004 report. Adelaide: 
Migrant Health Service, c2004.

Newly Arrived Children s Art Story Book 2004/
by Ibrahim Sefer. Adelaide: Migrant Health 
Service 2004.

Women s Health
South Australian Women s Health Policy. 
Adelaide: Dept. of Health, 2005.



67

Annual Report 2004   2005

Appendix 7: Acronyms and Abbreviations, 
Glossary of Terms

Acronyms and abbreviations
ACCA Advanced Community 

Care Association

ACM Asbestos Containing Materials

AIHW Australian Institute of 
Health and Welfare

AIMS Australian Incident 
Management System

APY Anangu Pitjantjatjara 
Yankunyjatjara

BaBO Building a Better Organisation

BFHI Baby Friendly Hospital Initiative

CAEA Clinical Academics Enterprise 
Agreement 2005

CBIS Community Based 
Information System

CNAHS Central Northern Adelaide 
Health Service

CPI Clinical Practice Improvement

CYWHS Child, Youth and Women s 
Health Service

DAIS Department of Administrative 
and Information Services

DASSA Drug and Alcohol Services 
South Australia

DECS Department of Education 
and Children s Services

DFC Department for Families 
and Communities

DH  Department of Health

DHS Department of Human Services

eCHIMS Child Health Information 
Management System

FMC Flinders Medical Centre

HALE Health Adjusted Life Expectancy

IDSC Intellectual Disability Services 
Council

IMVS Institute of Medical and 
Veterinary Science

IRC Industrial Relations Commission

LMHS Lyell McEwin Health Service

MPH Modbury Public Hospital

NAIDOC National Aboriginal Islander Day 
Observance Committee

NHS Noarlunga Health Service

OACIS Open Architecture and Clinical 
Information System

OHS&amp;W Occupational Health, Safety 
and Welfare

PEPA Program of Experience in the 
Palliative Approach

POM Pharmacy Order Management

RAH Royal Adelaide Hospital

RDNS Royal District Nursing Service

RGH Repatriation General Hospital

RIAS Regional Impact Assessment 
Statements

RWG Reconciliation Working Group

SAAHP South Australian Aboriginal 
Health Partnership

SAAS South Australian Ambulance 
Service

SAHC South Australian Health 
Commission

SAHS Southern Adelaide Health Service

SAMSS South Australia Monitoring and 
Surveillance System

SAPHS South Australian Prisoner 
Health Service

SASMOA South Australia Salaried Medical 
Offi cers Association

TAFE Technical and Further Education

TQEH The Queen Elizabeth Hospital

VBLO Values Based Learning 
Organisation

VET Vocational Education and Training

W&amp;CH Women s and Children s Hospital



68

Department of Health 

Glossary of Terms
Acute care hospital services

A hospital that provides at least minimum 
medical, surgical or obstetric services 
for inpatient treatment and/or care, 
and around-the-clock, comprehensive, 
qualifi ed nursing services, as well as other 
necessary professional services.

Governance

The acts and rules by which an 
organisation is managed and directed.

Partnership

A collaborative approach between parties, 
for example community groups, state and 
local government agencies etc, to achieve 
an agreed outcome in the best interest of 
the community, individuals and families.

Primary care

Refers to community-based services 
delivered by a wide range of providers 
across the entire spectrum of human 
services. The primary care system is 
seen as the usual point of contact for 
people seeking assistance with health or 
social problems, support for living and 
chronic illness or disability, housing and 
accommodation and advice.

Primary health care

It is generally referred to non-institutional 
health care services, including medical 
treatment and advice provided by general 
practitioners. It includes:

  services provided by community 
pharmacies; 

  therapy and treatment services such as 
counselling, allied health services and 
community nursing in non-institutional 
settings or in the home; 

  preventive strategies such as health 
promotion, early identifi cation, early 
prevention and information services; 
and

  community health services.

Values

Our preferred way of working, ie 
what constitutes a good working 
environment, including our relationship 
with colleagues. The way we behave is 
underpinned by our values.

Wellbeing

Refers to the physical and social 
wellbeing of people. Wellbeing is affected 
by inter-relationships with other people 
and their environment.



69

Annual Report 2004   2005

Appendix 8: Index of Achievements

Topic Pg

Generational Health Review 4

Building a Better Organisation 5

Metropolitan Regional Boards 6

Country Health Reform 7

Change Champions Network 7

Organisational Chart 9

Life expectancy 10

South Australia s Strategic Plan 10

Burden of Disease Study 10

North West Adelaide Health Study 11

Community Based 
Information System

11

Community based support packages 11

Healthconnect 11

Infant mortality 12

Universal Home Visiting Program 12

Sustained Home Visiting Program 12

Strategic service planning model 
for families with infants (0 2 years) 
identifi ed as being at risk of harm

13

Healthy Ways 13

Aboriginal maternal and child health 13

Baby Friendly Hospital Initiative   
online training program

13

Aboriginal and Torres Strait Islander 
Birthing Outcomes

14

Whyalla Indigenous 
Antenatal Program

14

Perinatal Practice Guidelines 14

Psychological distress 14

Mental health funding 15

Mental health legislation 16

Forensic Mental Health policy 16

Smoking 16

Overweight/obesity 17

Topic Pg

Smoking in the movies campaign 17

Healthy Eating Guidelines 18

Physical Activity Strategy 18

Be Active   Take Steps 18

Physical Activity Program for 
older people

18

Women on state government boards 
and committees

19

Overweight, obesity, physical activity 
and nutrition monitoring

19

Women chairing state government 
boards and committees

19

Aboriginal Training and Employment 
Action Plan

19

Aboriginal primary health care 
certifi cates

20

South East Social and Emotional 
Wellbeing Centre (Pangula 
Mannamurna)

19

Regional Aboriginal Health Plan 20

Aboriginal Workforce 20

Health Service Performance 
Agreements

20

Regional Aboriginal Employment 
Strategies

20

Aboriginal students   training and 
graduation

20

Aboriginal Scholarships 20

Aboriginal Health Action Plan 20

Aboriginal Health Courses 20

CrocFestival 20

Nursing and Midwifery 
Excellence Awards

20

Offi ce of Health and Community 
Complaints Commissioner

21

Healthy ways project   Aboriginal 
communities on APY Lands

21

State Cancer Plan 21



70

Department of Health 

Topic Pg

Transition care program 22

Individual packages of care 22

Acute Cardiac Services 21

Nursing/Midwifery Agency Tender 
Panel

30

Specialist anaesthetic and surgical 
support networks for country areas

22

Country health funding 22

Renal Dialysis Satellite Centre   
Hampstead Centre

23

Palliative care services to Aboriginal 
and Torres Strait Islander people

22

Aboriginal Mental Health Workers 23

South Australia Aboriginal 
Prisoner Health Service

23

Aboriginal Primary Health Care 
Services

23

Country service delineation profi les 23

Gambling Awareness Week 24

Coober Pedy sobering up centre 24

Clinical practice improvement course 24

Root cause analysis 24

Nurse graduate recruitment 30

Australian Incident Management 
System across country health units

24

Patient Evaluation of Hospital 
Services Survey

24

Aboriginal health 25

Aboriginal and Torres Strait Islander 
health policies and frameworks

25

Capital works 26

Country health 26

Country medical workforce 26

South Australia Development 
Program for Midwives

27

Country Mental Health 27

Country Aboriginal Health 27

Rural Scholarships 27

Topic Pg

Emergency management 28

Eyre Peninsula Bushfi re 28

Reform of health practitioner acts 28

Tsunami disaster 28

Men s health taskforce 29

Redesigning Care/Process 
Re-Engineering

29

Elective Surgery 29

Checklist Project 30

Primary Health Care Networks 30

Palliative Care Training Initiatives 30

National Award to Pharmaceutical 
Services

31

Research 31

Safety and Quality 31

Drugs of Misuse Surveillance 
Information System

32

Medication Safety and Quality 32

Pressure ulcer prevention practices 33

SAAS   transition to health 33

SAAS   funding for new ambulance 
stations

33

Women s health policy 33

Disability Action Plans 34

Reconciliation 36

National Strategic Framework for 
Aboriginal and Torres Strait Islander 
Health Commission (2003 2013)

25

Tobacco Control Strategy 2005 2010 17

ATSIH and Wellbeing Regional 
Resource Package 2005 2010

25

Fruit and Vegetable Campaign   
Go for 2&amp;5 

18

Equal Opportunity Act 1984 36

Tobacco Products Regulation Act 1997 16



Financial Statements
for the year ended 30 June 2005

For the Department of Health and 
the South Australian Health Commission

71



72

Department of Health 

Statement by the Chief Executive and Principal 
Accounting Offi cer

We certify that:

  The attached fi nancial statements are in accordance with the accounts and records and give an 
accurate indication of the fi nancial transactions for the Department of Health for the year ended 
30 June 2005;

  The attached fi nancial statements present fairly, in accordance with the Treasurer s Instructions 
promulgated under the provisions of the Public Finance and Audit Act 1987, applicable Accounting 
Standards and other mandatory professional auditing requirements in Australia, the fi nancial 
position of the entity as at the reporting date and the result of its operations and its cash fl ows for 
the year then ended; and

  Internal controls over fi nancial reporting have been effective throughout the reporting period.

Jim Birch
Chief Executive
Department of Health
29 September 2005

Onno Van Der Wel
Acting, Director Financial Services
Department of Health
27 September 2005



73

Financial Report

Independent Audit Report

To the Chief Executive
Department of Health

Scope

As required by section 31 of the Public Finance and Audit Act 1987, I have audited the fi nancial report of 
the Department of Health for the fi nancial year ended 30 June 2005. The fi nancial report comprises:

  A Statement of Financial Performance;

  A Statement of Financial Position;

  A Statement of Cash Flows;

  A Program Schedule of Revenues and Expenses;

  Notes to and forming part of the Financial Statements;

  A Certifi cate by the Chief Executive and the Acting Director Financial Services.

The Chief Executive and the Acting Director Financial Services are responsible for the fi nancial report. 
I have conducted an independent audit of the fi nancial report in order to express an opinion on it to the 
Chief Executive.

The audit has been conducted in accordance with the requirements of the Public Finance and Audit Act 
1987 and Australian Auditing and Assurance Standards to provide reasonable assurance whether the 
fi nancial report is free of material misstatement.

Audit procedures included examination, on a test basis, of evidence supporting the amounts and other 
disclosures in the fi nancial report and the evaluation of accounting policies and signifi cant accounting 
estimates. These procedures have been undertaken to form an opinion whether, in all material respects, 
the fi nancial report is presented fairly in accordance with Treasurer s Instructions promulgated under 
the provisions of the Public Finance and Audit Act 1987, Accounting Standards and other mandatory 
professional reporting requirements in Australia so as to present a view which is consistent with my 
understanding of the Department of Health s fi nancial position, the results of its operations and 
cash fl ows.

The audit opinion expressed in this report has been formed on the above basis.

Audit Opinion

In my opinion the fi nancial report presents fairly in accordance with the Treasurer s instructions 
promulgated under the provisions of the Public Finance and Audit Act 1987, applicable Accounting 
Standards and other mandatory professional reporting requirements in Australia, the fi nancial position 
of the Department of Health as at 30 June 2005, the results of its operations and its cash fl ows for the 
year then ended.

29 September 2005 K I MacPherson
 Auditor-General



74

Department of Health 

Statement of Financial Performance
for the year ended 30 June 2005

Note
2005

$ 000
2004

$ 000

Expenses from Ordinary Activities:

Employee expenses 5 68 467 213 611
Supplies and services 6 141 921 191 569
Depreciation and amortisation 7 889 2 910
Grants, subsidies and client payments 8 2 215 103 2 504 283
Borrowing costs 9 3 000 3 033
Other 10 1 663 4 732
Total Expenses from Ordinary Activities 2 431 043 2 920 138

Revenues from Ordinary Activities:

Rent, fees and charges 11 96 652 142 242
Commonwealth Government grants 15 792 879 970 447
Dividends   HomeStart Finance 2.8   5 000
Interest 12 4 848 5 865
Net (loss) gain from disposal of non-current assets 13 (42) 935
Other 14 7 583 5 902
Total Revenue from Ordinary Activities 901 920 1 130 391
Net Cost of Services from Ordinary Activities (1 529 123) (1 789 747)

Revenues from SA Government:

South Australian Government Appropriations 16 1 415 310 1 628 516
Grants from South Australian Government Agencies 16 131 087 131 716
Net Result from Ordinary Activities 17 274 (29 515)

Decrease in net assets due to 
administrative restructure

30 (72 199)  

Net Result after Restructuring 27 (54 925) (29 515)

Non-owner Transaction Changes in Equity:

Increase (Decrease) in asset revaluation reserve 27 5 177 22 774
Increase (Decrease) in asset revaluation reserve from 
administrative restructure 27 (48 660)  
Total Revenues, Expenses and Valuation 
Adjustments Recognised Directly in Equity

(43 483) 22 774

Total Changes in Equity other than those Resulting 
from Transactions with the State Government 
as Owner (98 408) (6 741)



75

Financial Report

Statement of Financial Position
as at 30 June 2005

Note
2005

$ 000
2004

$ 000

Current Assets:

Cash 17 30 299 63 307
Receivables 18 43 146 47 422
Inventories 19 3 985 1 847
Other 21 7 050 2 932
Total Current Assets 84 480 115 508

Non-current Assets:

Receivables 18 40 117 40 080
Property, plant and equipment 20(a) 36 374 123 108
Capital works in Progress 20(b) 1 102 3 150
Other 21 485 531
Total Non-Current Assets 78 078 166 869
Total Assets 162 558 282 377

Current Liabilities:

Payables 22 23 332 35 677
Employee benefi ts 23(a) 7 116 18 517
Borrowings 24 566 396
Provisions 25 11 795 14 033
Other 26 2 329 9 110
Total Current Liabilities 45 138 77 733

Non-current Liabilities:

Payables 22 20 216 26 272
Employee benefi ts 23(a) 10 504 31 411
Borrowings 24 29 451 29 843
Provisions 25 83 512 99 051
Other 26 467 467
Total Non-Current Liabilities 144 150 187 044
Total Liabilities 189 288 264 777
Net Assets (26 730) 17 600

Equity:

Contributed capital 27 119 719 114 340
Accumulated defi cit 27 (166 446) (160 220)
Asset revaluation reserve 27 19 997 63 480
Total Equity (26 730) 17 600
Commitments for Expenditure 29
Contingent Liabilities 31



76

Department of Health 

Statement of Cash Flows
for the year ended 30 June 2005

Note

2005
Infl ows

(Outfl ows)
$ 000

2004
Infl ows

(Outfl ows)
$ 000

Cash Flows from Operating Activities:

Cash Outfl ows:
Employee payments (65 285) (208 216)
Supplies and services (161 485) (176 615)
Grants, subsidies and client payments (2 212 555) (2 500 199)
Borrowing costs (20) (19)
Goods and services tax payments on purchases (35 181) (48 112)
Goods and services tax paid to other 
grouped members (36 134) (1 142)
Interest on borrowings (3 330) (2 243)
Other (1)  
Total Outfl ows from Operating Activities (2 513 991) (2 936 546)

Cash Infl ows:
Receipts from Commonwealth 792 879 973 723
Dividends received   HomeStart Finance   5 000
Rent, fees and charges 91 088 129 241
Interest received 4 775 5 248
Goods and services tax receipts on receivables 5 584 5 341
Goods and services tax refund from the ATO 58 381 41 893
Goods and services tax collected from other 
grouped members 5 229 1 684
Other 7 616 5 722
Total Infl ows from Operating Activities 965 552 1 167 852

Cash Flows from SA Government:
South Australian Government appropriations 1 415 310 1 628 516
Grants from South Australian Government agencies 131 087 131 716
Total Cash Flows from SA Government 1 546 397 1 760 232
Net Cash Outfl ows from Operating Activities 32 (2 042) (8 462)

Cash Flows from Investing Activities:

Cash Outfl ows:
Purchase of Property, plant and equipment (6 319) (11 272)
Loans provided (1 500) (507)
Total Outfl ows from Investing Activities (7 819) (11 779)



77

Financial Report

Note

2005
Infl ows

(Outfl ows)
$ 000

2004
Infl ows

(Outfl ows)
$ 000

Cash Infl ows:
Proceeds from sale of property, plant and equipment 1 3 607
Repayment of Loans 1 325 878
Total Infl ows from Investing Activities 1 326 4 485
Net Cash Outfl ows from Investing Activities (6 493) (7 294)
Cash Flows from Financing Activities:

Cash Outfl ows:
Repayment of borrowings (396) (267)
Payments due to restructuring activities (29 456)  
Total Outfl ows from Financing Activities (29 852) (267)
Cash Infl ows:
Capital contributions from Government 5 379 25 618
Total Infl ows from Financing Activities 5 379 25 618
Net Cash (Outfl ows) Infl ows from Financing 
Activities

(24 473) 25 351

Net (Decrease) Increase in Cash Held (33 008) 9 595
Cash at 1 July 63 307 53 712
Cash at 30 June 32 30 299 63 307



78

Department of Health 

Program Schedule of Revenues and Expenses
for the year ended 30 June 2005

Programs (refer Note 4) S1
$ 000

S2
$ 000

S3
$ 000

S4
$ 000

S5
$ 000

Total
2005

$ 000

Expenses from Ordinary 
Activities:

Employee benefi ts 17 004 9 893 3 108 2 732 35 730 68 467
Supplies and services 20 339 25 783 2 212 924 92 663 141 921
Grants, subsidies and client 
payments

10 221 1 717 315 368 962 7 208 111 397 2 215 103

Depreciation and 
amortisation

591 9 10 2 277 889

Borrowing costs   2 980     20 3 000
Other expenses 1 402 1 155   105 1 663
Total Ordinary Expenses 48 156 1 756 382 375 447 10 866 240 192 2 431 043

Revenues from Ordinary 
Activities:

Rent, fees and charges 1 281 37 512 640 111 57 108 96 652
Interest         4 848 4 848
Commonwealth Government 
grants

27 373 622 505 141 889 125 987 792 879

Net Gain (Loss) from disposal 
of non-current assets

(3) (4)     (35) (42)

Other 548 190     6 845 7 583
Total Ordinary Revenue 29 199 660 203 142 529 236 69 753 901 920
Net Cost of Services from (18 957) (1 096 179) (232 918) (10 630) (170 439) (1 529 123)
Ordinary Activities

Revenues from Government:

SA Government 
appropriations

17 463 964 933 200 105 9 683 223 126 1 415 310

Grants from other SA 
Government agencies

838 96 736 23 743 509 9 261 131 087

Net Result from Ordinary 
Activities

(656) (34 510) (9 070) (438) 61 948 17 274

Less: Loss from restructure (136)       (72 063) (72 199)
Net Result after 
Restructuring

(792) (34 510) (9 070) (438) (10 115) (54 925)

Programs   Refer Note 4
S1. Population Health &amp; Well-being
S2. Metropolitan Health Services
S3. Country Health Services
S4. Aboriginal Health Services
S5. Shared Services   Health



79

Financial Report

Program Schedule of Expenses and Revenues
for the year ended 30 June 2004

Programs (refer Note 4) S1
$ 000

S2
$ 000

S3
$ 000

S4
$ 000

S5
$ 000

K1
$ 000

K2
$ 000

K3
$ 000

Expenses from 
Ordinary Activities:

Employee benefi ts 16 328 11 295 3 671 2 545 23 587 646 1 402 1 045
Supplies and services 20 592 24 187 2 506 879 80 925 214 847 651
Grants, subsidies and 
client payments 10 807 1 529 828 330 993 8 853 87 365 1 473 1 228 131
Depreciation and 
amortisation 651 8 6 1 197   9  
Borrowing costs   3 013     10      
Other expenses         2 366      
Total Ordinary 
Expenses 48 378 1 568 331 337 176 12 278 194 450 2 333 3 486 1 827

Revenues from 
Ordinary Activities:

Rent, fees and charges 780 28 419 576 67 40 370 79 4 29
Interest         6 271      
Dividends   
HomeStart Finance                
Commonwealth 
Government grants 23 380 611 984 146 907 356 1 516 6    
Net Gain (Loss) from 
disposal of non-current 
assets (14)       (173)      
Other 1 103 47 30 40 3 167 13 29  
Total Ordinary 
Revenue 25 249 640 450 147 513 463 51 151 98 33 29
Net Cost of Services 
from Ordinary 
Activities (23 129) (927 881) (189 663) (11 815) (143 299) (2 235) (3 453) (1 798)



80

Department of Health 

Program Schedule of Expenses and Revenues
for the year ended 30 June 2004 (continued)
Programs (refer Note 4) S1

$ 000
S2

$ 000
S3

$ 000
S4

$ 000
S5

$ 000
K1

$ 000
K2

$ 000
K3

$ 000

Revenues from 
Government:

SA Government 
appropriations 22 176 828 510 180 613 11 049 137 882 2 154 3 134 1 733
Grants from other SA 
Government agencies 548 83 404 5 796 570 2 932 43 263 35
Net Result from 
Ordinary Activities (405) (15 967) (3 254) (196) (2 485) (38) (56) (30)
Less: Loss from 
restructure                
Net Result after 
Restructuring (405) (15 967) (3 254) (196) (2 485) (38) (56) (30)

Programs   Refer Note 4
S1. Population Health &amp; Well-being
S2. Metropolitan Health Services
S3. Country Health Services
S4. Aboriginal Health Services
S5. Shared Services   Health
K1. Aboriginal Social Services
K2. Offi ce for Youth
K3. Offi ce for the Status of Women



81

Financial Report

Programs (refer Note 4) K4
$ 000

K5
$ 000

K6
$ 000

K7
$ 000

K8
$ 000

K9
$ 000

Total
2004

$ 000

Expenses from Ordinary 
Activities:

Employee benefi ts 50 790 3 651 2 271 4 883 71 056 20 441 213 611
Supplies and services 2 400 2 809 1 311 1 076 17 796 35 376 191 569
Grants, subsidies and 
client payments 248 122 208 151 31 974 27 350 15 883 2 125 2 504 283
Depreciation and amortisation 903 11 1 2 986 135 2 910
Borrowing costs           10 3 033
Other expenses           2 366 4 732
Total Ordinary Expenses 302 215 214 622 35 557 33 311 105 721 60 453 2 920 138

Revenues from Ordinary 
Activities:

Rent, fees and charges 50 503 24 15 164 1 151 20 061 142 242
Interest (480)         74 5 865
Dividends   HomeStart 
Finance 5 000           5 000
Commonwealth Government 
grants 71 601 70 407 24 515 16 069 3 680 26 970 447
Net Gain (Loss) from disposal 
of non-current assets           1 122 935
Other 10 4 290 4 286 879 5 902
Total Ordinary Revenue 126 634 70 435 24 820 16 237 5 117 22 162 1 130 391
Net Cost of Services from 
Ordinary Activities (175 581) (144 187) (10 737) (17 074) (100 604) (38 291) (1789 747)

Revenues from Government:

SA Government appropriations 167 393 137 470 8 443 11 782 79 586 36 591 1 628 516
Grants from other SA 
Government agencies 6 409 4 239 2 143 4 997 19 292 1 045 131 716
Net Result from Ordinary 
Activities (1 779) (2 478) (151) (295) (1 726) (655) (29 515)
Less: Loss from restructure              
Net Result after Restructuring (1 779) (2 478) (151) (295) (1 726) (655) (29 515)

Programs   Refer Note 4
K4. Housing Management Council
K5. Disability Services
K6. Ageing Services
K7. Community Based Services
K8. Family and Youth Services
K9. Shares Services   Social Justice



82

Department of Health 

Notes to and Forming 
Part of the Financial 
Statements
for the year ended 30 June 2005

1. Objectives and Functions 
of the Department
The vision of the Department of Health (the 
Department) is to build a health care system 
that is there when the public needs it, that is 
fair and trustworthy, that supports the public, 
families and the community to achieve full 
health potential; and that encourages individuals 
to have a say, listens to individuals and makes 
sure that their views are taken into account. 
To achieve this vision the Department is:

  Establishing and leading an agenda for 
health system development, innovation 
and reform

  Leading the development of state-wide 
policies, plans and targets

  Infl uencing and advocating on South 
Australian health issues with the State and 
Federal Government Departments

  Coordinating relations between Regions, 
Minister, other Government Departments 
and the Department of Health

  Funding services on behalf of State 
Government and overseeing the health 
system budget process

  Providing public and environmental 
health services

  Facilitating and being a focal point for 
system innovation and new state-wide 
initiatives

The Department is committed to ensuring 
the sound health and well being of all South 
Australians. It is responsible for setting 
directions, developing policies, funding 
and monitoring the performance of the 
South Australian public health, hospital and 
community based health care services. The 
Department has a strong commitment to 
reconciliation and improved health outcomes for 
Aboriginal people and communities. In order 
to fulfi l these commitments the Department 
is focusing on improving performance, 
organisational culture, systems and governance. 
The Department has responsibility for delivery 

of specifi c programs to the public with respect 
to activities assigned to the Department and 
the powers and functions performed under the 
South Australian Health Commission Act 1976, and 
other legislation as delegated by the Minister for 
Health, Minister Assisting the Premier for Social 
Inclusion (the Minister) to the Chief Executive of 
the Department.

1.1 Departmental Functions

One of the functions delegated to the Chief 
Executive of the Department under the South 
Australian Health Commission Act 1976 is to 
ensure that there is proper allocation and use 
of resources between Hospitals, Health Centres 
and Health Services incorporated under the Act.

The fi nancial affairs of incorporated hospitals 
and health centres do not form part of the 
Department s fi nancial report. As under the 
Act these bodies are required to maintain 
separate accounts of their respective fi nancial 
affairs and to have them separately audited by 
the Auditor-General or an auditor approved by 
the Auditor-General.

In 2003 04, the Department also functioned 
as a service provider to the South Australian 
Housing Trust (SAHT), South Australian 
Community Housing Authority (SACHA), 
Aboriginal Housing Authority (AHA), 
HomeStart Finance and various other non-
government organisations. In 2004 05 these 
agencies were no longer the responsibility of 
the Minister for Health. The fi nancial affairs 
of these organisations do not form part of the 
Department s fi nancial report.

1.2 Administered Items

The Department administered certain revenues, 
expenses, assets and liabilities on behalf of other 
government agencies and non-government 
entities. They are not controlled by the 
Department and are consequently not recognised 
in the Department s fi nancial statements. They 
are regarded as insignifi cant and disclosed in 
Note 34.

1.3 Administrative Restructures

A major restructure resulted in the former 
Department of Human Services (DHS) being 
retitled the Department of Health from 1 July 
2004 and certain asset and liabilities were 
transferred from DHS to the new Department 
for Families and Communities (DFC). On 
5 March 2004, the Governor established DFC 
and declared that for fi nancial accounting and 



83

Financial Report

reporting purposes the establishment of DFC 
would be taken to occur on 1 July 2004. Certain 
assets and liabilities were transferred from DHS 
to DFC effective from 1 July 2004. On 10 June 
2004, the Governor proclaimed that the title of 
DHS would be altered to the Department of 
Health. The proclamation came into effect on 
1 July 2004.

Effective 1 July 2004, the assets and liabilities of 
the Guardianship Board and the Offi ce of Public 
Advocate were transferred to the Attorney-
General s Department.

Comparative fi gures relate to the former DHS 
(see Note 2.3)

1.4 Funding for the Department

Funding for the Department comes from two 
main sources:

  Appropriation funding from State and 
Commonwealth Government sources. These 
funds are applied to both controlled and 
administered activities.

  Payment and recoveries from portfolio 
agencies for Business Service functions 
performed on behalf of the agencies, with 
fees for these services being determined on 
a cost recovery basis.

In addition to the main funding sources the 
Department receives amounts from other sources 
including interest on cash deposits.

2. Summary of Signifi cant 
Accounting Policies
2.1 Basis of Accounting

The fi nancial report is a general purpose 
fi nancial report. The accounts have been 
prepared in accordance with:

  Treasurer s Instructions (TIs) and 
Accounting Policy Statements (APS) 
promulgated under the provision of the 
Public Finance and Audit Act 1987

  Applicable Australian Accounting 
Standards

  Other mandatory professional reporting 
requirements in Australia.

The fi nancial report has been prepared in 
accordance with historic cost convention, except 
for certain assets that were valued in accordance 
with the valuation policy applicable.

The continued existence of the Department 
in its present form, and its present programs, 
is dependent on Government policy and on 
continuing appropriations by Parliament for 
the Department s administration and outputs. 
As stated in Note 1.3 the former DHS was 
restructured effective 1 July 2004 and the 
programs were divided between the 
Department and the new DFC.

2.2 Reporting Entity

The Department s fi nancial statements include 
both departmental and administered items. The 
Department s fi nancial statements include the 
use of assets, liabilities, revenues and expenses 
controlled or incurred by the Department in its 
own right. As administered items are insignifi cant 
to the Department s overall fi nancial performance 
and position, they have been disclosed in a 
schedule of administered items as notes to 
the accounts.

2.3 Comparative Figures

Where practicable, comparative fi gures have been 
adjusted to conform to changes in presentation 
in these fi nancial statements. As stated in Note 
1.3, in accordance with the requirements of 
accounting standards comparative fi gures are 
those as reported for the former DHS. During the 
restructure of DHS, certain assets and liabilities 
were transferred from DHS to DFC effective 1 
July 2004, and the title of DHS was altered to DH. 
This means that the reported 2003 04 comparative 
values are, in many cases higher than those 
reported for similar activities in 2004 05.

2.4 Rounding

All amounts in the fi nancial statements have been 
rounded to the nearest thousand dollars ($ 000).

2.5 Taxation

The Department is not subject to income tax. 
The Department is liable for payroll tax, 
fringe benefi ts tax, goods and services tax and 
emergency services levy. In accordance with the 
requirements of UIG Abstract 31  Accounting 
for Goods and Services Tax (GST) , revenues, 
expenses and assets are recognised net of the 
amount of GST except that:

  The amount of GST incurred by the 
Department as a purchaser that is not 
recoverable from the Australian Taxation 
Offi ce is recognised as part of the cost of 
acquisition of an asset or is part of an item 
of expenses.



84

Department of Health 

  Where appropriate, receivables and 
payables are stated with the amount 
of GST included.

2.6 Revenues and Expenses

Revenues and Expenses are recognised in 
the Department s Statement of Financial 
Performance when and only when the fl ow or 
consumption or loss of future economic benefi ts 
has occurred and can be reliably measured.

Revenue and Expenses have been classifi ed 
according to their nature in accordance with 
Accounting Policy Statement APS 13  Form and 
Content of General Purpose Financial Reports  
and have not been offset unless required or 
permitted by another accounting standard.

Revenue from fees and charges is derived from 
the provision of services to other SA Government 
agencies and to the public.

Revenue from disposal of non-current assets is 
recognised when control has passed to the buyer.

Resources received/provided free of charge 
are recorded as revenue/expenditure in the 
Statement of Financial Performance at their 
fair value. Goods and Services received free of 
charge are recorded as such with revenue being 
separately disclosed. Resources provided free 
of charge are recorded at their fair value in the 
expense line items to which they relate.

Grants that are received from other entities by 
the Department for general assistance or a 
particular purpose may be for capital, current or 
recurrent purposes and the name of the category 
refl ects the use of the grant. These entities may be 
other SA Government agencies, Commonwealth 
Government, or Non-Government Organisations. 
The grants given are usually subject to 
terms and conditions set out in the contract, 
correspondence, or by legislation.

Grants that are paid to other entities by the 
Department for general assistance or a particular 
purpose may be for capital, current or recurrent 
purposes and the name of the category refl ects 
the use of the grant. These entities may be other 
SA Government agencies, Non-Government 
Organisations or the public. The grants given are 

Notes to and Forming 
Part of the Financial 
Statements (continued)

usually subject to terms and conditions set out 
in the contract, correspondence, or by legislation.

2.7 Revenues from/Payments to 
SA Government

Appropriations from program funding are 
recognised as revenues when the Department 
obtains control over the assets. Control over the 
appropriations is normally obtained upon their 
receipt and are accounted for in accordance with 
Treasurer s Instruction 3  Appropriation .

Where money has been appropriated in the form 
of a loan, the Department has recorded a loan 
receivable.

Where money has been appropriated in the 
form of an equity contribution, the Treasurer has 
acquired a fi nancial interest in the net assets of 
the Department and the contribution is recorded 
as contributed equity.

2.8 Dividends

The Department did not receive any dividends.

2.9 Current and Non-Current Items

Assets and liabilities are characterised as 
either current or non-current in nature. The 
Department has a clearly identifi able operating 
cycle of 12 months. Therefore assets and 
liabilities that will be realised as part of the 
normal operating cycle will be classifi ed as 
current assets or current liabilities. All other 
assets and liabilities are classifi ed as non-current.

2.10 Cash

For the purposes of the Statement of Cash Flows, 
cash includes cash at bank and deposits at call 
that are readily converted into cash and are used 
in the cash management function on a day-to-
day basis. The defi nition of cash in relation to the 
Statement of Financial Position differs slightly 
as it does not take into account bank overdrafts. 
Cash is measured at nominal value.

In October 2003 the Government introduced 
a policy with respect to aligning agency cash 
balances with the appropriation and expenditure 
authority. During the fi nancial year the 
Department was not required to transfer any of 
its cash balance to the Consolidated Account.

2.11 Receivables

Trade receivables arise in the normal course 
of selling goods and services to other agencies 
and to the public. Trade receivables are payable 
within 30 days after the issue of an invoice or 
the goods/services have been provided under 
a contractual arrangement.



85

Financial Report

Other debtors arise outside the normal course of 
selling goods and services to other agencies and 
to the public.

Health Service defi cits are recognised in the 
Department s fi nancial statements as a receivable 
from Health Services. At each balance date 
the likelihood that Health Services may not 
be able to repay these amounts is assessed by 
the Department. As a consequence signifi cant 
provisions for doubtful debts have been 
recognised in the Department s fi nancial 
statements against Health Services  receivable 
balances which refl ect an assessment that there 
is no reasonable expectation that Health Services 
will be able to repay the monies owed with 
respect to budget overruns.

Receivables are recognised and carried at the 
original invoiced amount less a provision for any 
uncollectable debts. An estimate for doubtful 
debts is made when collection of the full 
amount is no longer probable. The Department 
determines the provision for doubtful debts 
based on a review of the balances within 
receivables that are unlikely to be collected.

Bad debts are written off only after all reasonable 
effort has been made to collect the debt.

2.12 Inventories

Inventories are stated at the lower of cost and 
their net realisable value. Inventories held for 
use by the Department are measured at cost, 
with cost being allocated in accordance with the 
fi rst-in, fi rst-out method. Net realisable value is 
determined using the estimated sale proceeds 
less costs incurred in marketing, selling and 
distribution to customers.

2.13 Non-Current Asset Acquisition and 
Recognition

Assets are initially recorded at cost plus any 
incidental cost involved with the acquisition. 
Where assets are acquired at no value, or 
minimal value, they are recorded at their fair 
value in the Statement of Financial Position. 
Where assets are acquired at no or nominal 
value as part of a restructuring of administrative 
arrangements then the assets are recorded 
at the value recorded by the transferrer prior 
to transfer.

Where the payment for an asset is deferred, and 
when material, the Department measures the 
asset at the present value of the future outfl ows, 
discounted using the interest rate of a similar 
interest rate borrowing.

The Department capitalises all non-current 
physical assets with a value of $5 000 or greater 
in accordance with Accounting Policy Statement 
2  Asset Recognition .

The Department s non-current assets include 
property, plant and equipment controlled by 
the Department.

Works in progress are projects physically 
incomplete as at reporting date.

2.14 Revaluation of Non-Current Assets

In accordance with Accounting Policy Statement 
3  Valuation of Non-Current Assets :

  All non-current physical assets are valued 
at written down current cost (a proxy for 
both the fair value and deprival method 
of valuation)

  Revaluation of non-current assets or group 
of assets is performed when its fair value 
at the time of acquisition is greater than 
$1 million and estimated useful life is 
greater than three years.

Every three years the Department revalues its 
land and buildings. However, if at any time 
management considers that the carrying amount 
of the asset materially differs from the fair value 
then the asset will be revalued regardless of 
when the last valuation took place. Non-current 
physical assets that are acquired between 
revaluations are held at cost until the next 
valuation, where they are revalued to 
fair value.

Asset classes that satisfi ed the criteria and are 
revalued include:

  Vacant Land

  Site Land

  Vacant Buildings

  Building and Improvements

The Department s land and buildings were last 
revalued using the fair value methodology, as at 
30 June 2003, based on independent valuations 
performed by:

  Rob Taylor   Associate Australian Property 
Institute (AAPI), Certifi ed Practising Valuer 
(CPV), FPD Savills (SA) Pty Limited

  Adrian Rowse   AAPI, CPV, FPD Savills 
(SA) Pty Limited

  Helen Dowling   Graduate Australian 
Property Institute (GAPI), Qualifi ed Valuer, 
FPD Savills (SA) Pty Limited



86

Department of Health 

  Alex Thamm   AAPI, Qualifi ed Valuer, 
McGees Valuation and Advisory Services

  Neil Bray   Valuer-General, Valuation SA

  Clinton Ramm   B. Bus. Prop. (Val), AAPI, 
Valuer, Knight Frank

  Jason Oster   B. Bus. Prop. (Val), GAPI, 
Valuer, Knight Frank

  Nick Bell   B. Bus. Prop. (Val), AAPI, CPV, 
Knight Frank

During the 2003 04 fi nancial year, management 
considered that land prices had materially 
appreciated and a desktop valuation was 
carried out on metropolitan land with a value 
of $800 000 or greater. As a result of the desktop 
valuation, an index of 38 percent was determined 
and applied to metropolitan land assets only. The 
desktop valuation was carried out by Rob Taylor 
Associate Australian Property Institute (AAPI), 
Certifi ed Practising Valuer (CPV), FPD Savills 
(SA) Pty Limited.

During the 2004 05 fi nancial year, management 
decided to review whether there had been a 
further material appreciation in land values. A 
desktop valuation was once again undertaken 
on the Department s metropolitan land with a 
value of $800 000 or greater. As a result of the 
desktop valuation, an index of 27.3 percent was 
determined and applied to metropolitan land 
assets only. The desktop valuation was carried 
out by Rob Taylor Associate Australian Property 
Institute (AAPI), Certifi ed Practising Valuer 
(CPV), FPD Savills (SA) Pty Limited.

Assets Deemed to be at Fair Value

For those classes of non-current assets where 
an independent revaluation has not been 
undertaken, as the criteria within Accounting 
Policy Statement 3  Revaluation of Non-Current 
Assets  have not been met, these classes of 
non-current assets are deemed to be at fair 
value as determined by APS 3  Revaluation 
of Non-Current Assets  as issued by the 
Department of Treasury and Finance.

Notes to and Forming 
Part of the Financial 
Statements (continued)

Asset classes that did not satisfy the criteria and 
are therefore deemed to be at fair value include:

  Leasehold Improvements

  Buildings and Improvements in Progress

  Medical, Surgical, Dental and 
Biomedical Equipment

  Computing Equipment/Systems 
Development

  Other Plant and Equipment

  Plant and Equipment in Progress

2.15 Depreciation and Amortisation of 
Non-Current Assets

All non-current assets, having a limited useful 
life, are systematically depreciated/amortised 
over their useful lives in a manner that refl ects 
the consumption of their service potential. 
Amortisation is used in relation to intangible 
assets, while depreciation is applied to physical 
assets such as property plant and equipment.

The useful lives of all major assets held by the 
Department are reassessed on an annual basis.

The value of leasehold improvements is 
amortised over the estimated useful life of each 
improvement, or the unexpired period of the 
relevant lease, whichever is shorter.

Depreciation/amortisation for non-current assets 
is determined as follows:

Class of Asset
Deprecation

Method
Useful Life

(Years)

Buildings and 
improvements

Straight Line 25 50

Leasehold 
improvements

Straight Line Life of 
lease

Computer 
equipment/systems 
development

Straight Line 3

Medical, surgical, 
dental and 
biomedical 
equipment

Straight Line 5 10

Other plant and 
equipment

Straight Line 3 15

2.16 Intangibles

The acquisition or internal development of 
software is capitalised when the expenditure 
meets the defi nition and recognition criteria of an 
asset and when the amount of the expenditure 



87

Financial Report

is greater than or equal to $5 000, in accordance 
with Accounting Policy Statement 2  Asset 
Recognition  paragraph 23.

Capitalised software is amortised over the useful 
life of the asset, with a maximum time limit of 
three years. As at 30 June 2005, all capitalised 
software was amortised to zero (zero).

2.17 Payables

Payables include creditors, accrued expenses 
and employment on-costs.

Creditors represent the amounts owing for goods 
and services received prior to the end of the 
reporting period that are unpaid at the end of the 
reporting period. Creditors include all unpaid 
invoices received relating to normal operations 
of the Department.

Accrued expenses represents goods and services 
provided by other parties during the period that 
are unpaid at the end of the reporting period and 
where an invoice has not been received.

All amounts are measured at their nominal 
amount and are normally settled within 30 days 
in accordance with Treasurer s Instructions 8 
 Expenditure for Supply Operations and Other 
Goods and Services  after the Department 
receives an invoice.

Employment on-costs include superannuation 
contributions and payroll tax with respect to the 
outstanding liabilities for salaries and wages, 
long service leave and annual leave.

The Department makes contributions to several 
superannuation schemes operated by the State 
Government. These contributions are treated as 
an expense when they occur. There is no liability 
for payments to benefi ciaries, as the South 
Australian Superannuation Board (SASB) has 
assumed these.

The only liability outstanding at balance date 
relates to any contributions due but not yet paid 
to the SASB.

2.18 Employee Benefi ts

These benefi ts accrue for employees as a result of 
services provided up to the reporting date, that 
remain unpaid.

Sick Leave

No provision has been made for sick leave as all 
sick leave is non-vesting and the average sick 
leave taken in future years is estimated to be less 
than the annual entitlement of sick leave.

Annual Leave

The liability for annual leave refl ects the value of 
total annual leave entitlements of all employees 
as at 30 June 2005 and is measured at the 
nominal amount.

Long Service Leave

The liability for long service leave was 
determined through an actuarial assessment 
undertaken by William M Mercer Pty Ltd, in 
accordance with AASB 1028  Employee Benefi ts . 
The following assumptions were made by the 
actuary when performing the assessment:

  salary increases of 3.5 percent per annum 
based on the current enterprise bargaining 
agreement and short-term forecasts;

  discounting of 5.12 percent per annum 
based on the pre-tax yield on the 10 year 
Commonwealth Government bonds at the 
valuation date.

Accrued Salaries and Wages

The liability for accrued salaries and wages 
is measured as the amount unpaid at the 
reporting date at remuneration rates current 
at reporting date.

2.19 Provisions

Insurance

The Department is a participant in the State 
Government s Insurance Program. The 
Department pays a premium to SA Government 
Captive Insurance Corporation (SAICORP) for 
professional indemnity insurance and general 
public liability insurance, and is responsible for 
the payment of claim amounts up to an agreed 
amount (the deductible). SAICORP provides the 
balance of funding for claims in excess of the 
deductible. For Professional Indemnity claims 
after 1 July 1994 and General Public Liability and 
Property claims after 1 July 1999 the deductible 
per claim is $1 000 000. For claims incurred prior 
to these dates the deductible per claim is $50 000.

The determination of professional indemnity 
insurance provision was carried out through an 
actuarial assessment in accordance with AASB 
1023  Financial Reporting of General Insurance 
Activities  conducted by Brett &amp; Watson Pty 
Ltd. Current and non-current liabilities of the 
Department are determined by taking into 
account prudential margins, infl ation, taxes, 
claims incurred but not reported and claims 
incurred but not enough reported.



88

Department of Health 

The provision for claims for general public 
liability insurance and property is a management 
assessment.

Workers Compensation

The Department is an exempt employer under 
the Workers Rehabilitation and Compensation 
Act 1986. Under a scheme arrangement the 
Department and participating exempt Health 
Services are responsible for the management 
of workers rehabilitation and compensation.

The workers compensation liability recognised 
for the employees of the Department is 
based on an apportionment of an actuarial 
assessment of the whole-of-government workers 
compensation liability conducted by Taylor Fry 
Consulting Actuaries based on 31 May data. 
Taylor Fry Consulting Actuaries extrapolate 
this data to 30 June. For the 2004 05 fi nancial 
year the Department has refl ected a workers 
compensation provision of $1.4 million 
($10.1 million). Refer Note 25.

The actuarial assessment conducted by Taylor 
Fry Consulting Actuaries is based on the 
Payment Per Claim Incurred (PPCI) valuation 
method. The assessment has been conducted 
in accordance with AASB 1023  Financial 
Reporting for General Insurance Activities  
and the WorkCover Guidelines for Actuarial 
Assessments. The liability covers claims 
incurred but not yet paid, incurred but not 
reported and the anticipated direct and indirect 
costs of settling those claims. The liability for 
outstanding claims is measured as the present 
value of the expected future payments refl ecting 
the fact that all the claims do not have to be paid 
out in the immediate future.

Health Services participating in the scheme 
continue to be directly responsible for the 
cost of workers compensation claims and the 
implementation and funding of preventative 
programs. The Department has agreed to 
specifi cally fund safety net funded Health 
Services workers compensation expenditure 
and lump sum settlements and redemption 
payments. The Department also specifi cally 
funds non-safety net funded Health Services 

Notes to and Forming 
Part of the Financial 
Statements (continued)

workers compensation lump sum settlements 
and redemption payments. Accordingly, the 
Department recognises a payable to Health 
Services equivalent to the liability for these 
specifi cally funded items which Health Services 
recognise as a provision in their fi nancial 
statements. The workers compensation liability to 
Health Services as at 30 June 2005 is $25.99 million 
($30.68 million). Refer Note 22.

2.20 Leases

The Department has entered into fi nance leases 
that are immaterial and are classifi ed as plant 
and equipment, and has also entered into 
operating leases.

Operating Leases

In respect of operating leases, the lessor effectively 
retains substantially the entire risks and benefi ts 
incidental to the ownership of the leased items. 
Operating lease payments are charged to the 
Statement of Financial Performance on a basis 
which is representative of the pattern of benefi ts 
derived from the leased assets.

2.21 Government/Non-Government Disclosures

The Department has adopted for the fi rst time in 
the period 2004 05, the requirements of APS 13 
where the Department must disclose by way of 
Note whether transactions are with entities that 
are within or external to the South Australian 
Government. These transactions are classifi ed 
by their nature and relate to revenues, expenses, 
fi nancial assets and fi nancial liabilities. Where 
practicable comparative information has been 
provided.

2.22 Continuity of Operations

As at 30 June 2005 the Department has a net asset 
defi ciency of $26.7 million. The Government 
is committed to the ongoing funding of the 
Department to enable it to perform its functions.

3. Change in Accounting Policy
3.1 Impact of Adopting Australian Equivalents 
to International Financial Reporting Standards

Australia will be adopting Australian Equivalents 
to International Financial Reporting Standards 
(AIFRS) for reporting periods commencing on 
or after 1 January 2005. DH will adopt these 
standards for the fi rst time in the published 
fi nancial report for the year ended 30 June 2006.

AASB 1047  Disclosing the Impacts of Adopting 
Australian Equivalents to International Financial 



89

Financial Report

Reporting Standards , requires disclosure or 
any key differences in accounting policies, and 
known or reliably estimable information about 
the impact on this fi nancial report had this report 
been prepared using the AIFRS.

The Department has assessed the signifi cance of 
the adoption of the Standards for the purpose 
of their implementation. This has involved an 
assessment of accounting policies and topics in 
the existing Australian Accounting Standards 
and the AIFRS to determine any key differences 
and signifi cant fi nancial impacts.

This assessment identifi ed that the adoption 
of the AIFRS in 2005 will not result in any 
key differences or fi nancial impacts for the 
Department.

The Department is managing the transition 
through consultation with the Department 
of Treasury and Finance, training seminars 
provided by CPA Australia and external 
providers and the Department s own 
internal review.

4. Programs of the Department
In achieving its objective the Department 
provides a range of services classifi ed into 
the following programs:

Programs Reported Under the Minister 
for Health:

Program S1: Population Health and Well-being
Disease prevention and management, 
environmental health management and 
education and promotion of health and 
well-being.

Program S2: Metropolitan Health Services
Provision and management of grants for the 
delivery of health and related services for 
persons living within metropolitan Adelaide 
and persons from rural areas that need specialist 
treatment in metropolitan Adelaide.

Program S3: Country Health Services
Provision and management of grants for the 
delivery of health and related services across 
country South Australia.

Program S4: Aboriginal Health Services
Policy advice, programs and services, 
community development and workforce support 
and advice to the Department, Minister and the 
Aboriginal Community on aboriginal health 
related matters.

Program S5: Shared Services   Health
Shared Services support program delivery across 
the portfolio and do not directly relate to the 
provision of services to the public.

2003 04: Programs Reported Under the Minister 
For Social Justice, Minister for Housing, Minister 
for Youth, Minister for the Status of Women:

In 2003 04, the following programs were 
reported under the Minister For Social Justice, 
Minister for Housing, Minister for Youth, 
Minister for the Status of Women. As a result of 
the restructure these programs were transferred 
from the former DHS to DFC.

Program K1: Aboriginal Social Services
Policy advice, programs and services, 
community development and workforce support 
and advice to the Department, Minister and the 
Aboriginal Community on aboriginal social and 
emotional well-being matters.

Program K2: Offi ce for Youth
The Offi ce for Youth initiates, advocates and 
facilitates policies and strategies that create 
opportunities for positive outcomes for young 
people in South Australia.

Program K3: Offi ce for Women
Pursuit of the full and equal participation 
of women in the social and economic life 
of the State by providing innovative and 
balanced policy advice to Government. 
Providing high quality, state wide information 
and referral services through the Women s 
Information Service.

Program K4: Housing Management Council
The Housing Management Council provides for 
the management of grants for housing services 
and supported accommodation assistance to 
low-income households and people in crisis. 
This includes grants for the provision of public 
housing and private rental services by the 
South Australian Housing Trust, the provision 
of public housing and community managed 
housing by the Aboriginal Housing Authority, 
the funding and regulation of community 
housing by the South Australian Community 
Housing Authority, crisis accommodation and 
supported assistance programs managed by the 
South Australia Housing Trust and the provision 
of supported accommodation and community 
capacity building programs managed by 
the Department.



90

Department of Health 

Program K5: Disability Services
Provision and management of grants for the 
delivery of a range of services for people with a 
disability, their carers and families. This includes 
accommodation services, community support 
services to enable living in a non-institutional 
setting, community access services, respite care, 
advocacy and information services.

Program K6: Ageing Services
Provision and management of grants for the 
delivery of services to support frail older people, 
younger people with disabilities and their carers. 
This includes assessment for and provision of 
a comprehensive, co-ordinated, fl exible and 
integrated range of home and community care 
services to assist in promoting independence 

Notes to and Forming 
Part of the Financial 
Statements (continued)

within the community and avoiding premature 
or inappropriate admission to long term 
residential care. Home and Community 
Care services (including the associated 
Commonwealth revenue) which are provided by 
health and disability services are included also in 
the relevant programs, that is Disability Services, 
Country Health Services, Metropolitan Health 
Services and Aboriginal Health Services.

Program K7: Community Based Services
Community based care services to protect 
the health, social well-being and quality of life 
of the community.

Program K8: Family and Youth Services
Services provided to promote the safety and 
well-being of vulnerable families, children and 
young people.

Program K9: Shared Services   Social Justice
Shared Services support program delivery across 
the portfolio and do not directly relate to the 
provision of services to the public.

5. Employee Expenses

DH
2005

$ 000

DHS
2004

$ 000

Salaries and wages 48 702 152 843
TVSP (refer below)   2 198
Long service leave 2 516 6 269
Annual leave 4 270 14 733
Employment on-costs (superannuation) 6 587 29 371
Workers compensation 1 988 4 823
Other 4 404 3 374
Total Employee Expenses 68 467 213 611

Targeted Voluntary Separation Packages (TVSPs):
TVSPs paid to employees during the reporting period   2 198
Annual leave and long service leave accrued over the period   675
Recovery from the Department of the Premier and Cabinet   1 731
Number of employees that were paid TVSPs during the 
reporting period   39



91

Financial Report

Remuneration of Employees

The number of employees whose remuneration received or receivable falls
within the following bands:

DH
2005

Number of
Employees

DHS
2004

Number of
Employees

$100 000   $109 999 8 19
$110 000   $119 999 6 10
$120 000   $129 999 9 10
$130 000   $139 999 6 7
$140 000   $149 999 1 8
$150 000   $159 999 3 5
$160 000   $169 999 4 3
$170 000   $179 999 5 5
$180 000   $189 999 3 2
$190 000   $199 999   2
$200 000   $209 999 3  
$210 000   $219 999   2
$230 000   $239 999 1 3
$240 000   $249 999 2 1
$250 000   $259 999 1  
$260 000   $269 999 1  
$280 000   $289 999   1
$290 000   $299 999 1 1
$310 000   $319 999   1
Total Number of Employees 54 80

The table includes all employees who received remuneration of $100 000 or more during the 
year. Remuneration of employees refl ects all costs of employment including salaries and wages, 
superannuation contributions, fringe benefi ts tax and other salary sacrifi ce benefi ts. The total 
remuneration received by these employees for the year was $8.305 million ($11.641 million).

For the purpose of this Note remuneration does not include amounts in payment or reimbursement of 
out of pocket expenses incurred for the benefi t of the entity or a controlled entity.



92

Department of Health 

6. Supplies and Services
DH

2005
$ 000

DHS
2004

$ 000

Supplies and Services provided by entities within the SA Government:
Accommodation and property related 4 865  
Advertising and promotions 4  
Bad and doubtful debts 2 602  
Client related expenses 1  
Communication and computing 26 902  
Contractors and agency staff 6 876  
Consultants 371  
Drugs and medical supplies 215  
Internal Audit 488  
Insurance 904  
Managed payments 290  
Minor equipment 525  
Motor vehicles 818  
Seminars, courses and training 487  
Travel and accommodation (56)  
Other administration 1 703  
Total Supplies and Services   SA Government Entities 46 995  

Audit fees paid/payable to the Auditor-General s Department 173  
Total Audit Fees   SA Government Entities 173  

Supplies and Services provided by entities external to the 
SA Government:
Accommodation and property related 3 939  
Advertising and promotions 912  
Communication and computing 19 922  
Contractors and agency staff 12 585  
Consultants 940  
Drugs and medical supplies 14 773  
Insurance 14 096  
Interpreter and translator fees 29  
Interstate patient transfers 15 295  
Managed payments (176)  
Minor equipment 529  
Motor vehicles 105  
Printing, stationery, postage and periodicals 2 520  
Seminars, courses and training 1 525  
Travel and accommodation 1 815  
Other administration 5 944  
Total Supplies and Services   Non-SA Government Entities 94 753  
Total Supplies and Services 141 921 191 569



93

Financial Report

The number and dollar amount of consultancies paid/payable that fell within the following band:

DH DHS
2005

Number
2005

$ 000
2004

Number
2004

$ 000

Below $10 000 20 91 17 62
Between $10 000 and $50 000 17 319 29 679
Above $50 000 7 901 9 1 442
Total Paid/Payable to the 
Consultants Engaged 44 1 311 55 2 183

7. Depreciation and Amortisation
DH

2005
$ 000

DHS
2004

$ 000

Depreciation:
Buildings and improvements 150 1 768
Medical, surgical, dental and biomedical equipment 325 359
Other plant and equipment 145 211
Computing equipment/Systems development 31 62

651 2 400
Amortisation:
Leasehold improvements 238 510

238 510
Total Depreciation and Amortisation 889 2 910

8. Grants, Subsidies and Client Payments

Note

DH
2005

$ 000

DHS
2004

$ 000

Grants and subsidies paid/payable to entities within 
the SA Government:
Recurrent funding to Incorporated Health Services 8.1 1 977 970  
Housing assistance 162  
Capital funding to Incorporated Health Services 8.2 105 823  
Other 4 892  
Total Grant, Subsidies and Client Payments   
SA Government Entities 2 088 847  

Grants and subsidies paid/payable to entities external 
to the SA Government:
Funding to non-government organisations 8.3 92 707  
Patient assisted transport scheme 5 732  
National Blood Authority 14 884  
Concessions 1 136  
Other 11 797  
Total Grant, Subsidies and Client Payments   
Non-SA Government Entities 126 256  
Total Grant, Subsidies and Client Payments 2 215 103 2 504 283



94

Department of Health 

8. Grants, Subsidies and Client Payments (continued)
8.1 Recurrent Funding to Incorporated Health Services

Note

DH
2005

$ 000

DHS
2004

$ 000

Central Northern Adelaide Health Service: 919 953  
 Royal Adelaide Hospital   409 161
 North Western Adelaide Health Service   303 316
 Modbury Hospital   61 142
 South Australian Dental Service   40 296

Southern Adelaide Health Service: 320 983  
 Flinders Medical Centre   230 707
 Noarlunga Health Service   38 992
 Drug And Alcohol Services Council   17 544

Children s Youth and Women s Health Service: 212 913  
 Women s And Children s Hospital   170 813
 Child And Youth Health   26 136

Repatriation General Hospital 97 125 87 104
Northern And Far Western Regional Health Service 68 846 63 702
Hills Mallee Southern Regional Health Services 62 633 57 336
South East Regional Health Service 57 449 51 395
Wakefi eld Regional Health Service 54 820 51 409
Metropolitan Domiciliary Care 45 861 40 932
Mid North Regional Health Service 37 988 34 626
Eyre Regional Health Service 33 905 30 883
Riverland Health Authority 32 141 29 634
Institute Of Medical And Veterinary Science 30 312 26 806
Other 3 041 25 614
Intellectual Disability Services Council *   89 258
Julia Farr Service *   24 631
Total Recurrent Funding to Incorporated 
Health Services 1 977 970 1 911 437

* Effective 1 July 2004 the Minister of Health delegated responsibility for the Disability Health Services to the Minister for 
Families and Communities



95

Financial Report

8.2 Capital Funding to Incorporated Health Services
DH

2005
$ 000

DHS
2004

$ 000

Central Northern Adelaide Health Service: 55 399  
 North Western Adelaide Health Service   31 286
 Royal Adelaide Hospital   22 913
 Modbury Hospital   370
 South Australian Dental Service   1 061
 Adelaide Central Community Health Service   701
 Northern Metropolitan Community Health Services   585

Southern Adelaide Health Service: 11 139  
 Flinders Medical Centre   5 567
 Noarlunga Health Service   586

Children s Youth and Women s Health Service: 8 876  
 Women s And Children s Hospital   3 766
 Child And Youth Health   (9)

Northern And Far Western Regional Health Service 1 655 1 004
South East Regional Health Service 6 547 1 230
Hills Mallee Southern Regional Health Services 7 172 1 571
Mid North Regional Health Service 1 552 853
Wakefi eld Regional Health Service 3 890 1 610
Riverland Health Authority 2 508 2 558
Repatriation General Hospital 4 674 2 673
Institute Of Medical And Veterinary Science 750 1 018
Eyre Regional Health Service 1 181 729
Other 480 1 207
Intellectual Disability Services Council *   567
Total Capital Funding to Incorporate Health Services 105 823 81 846

*  Effective 1 July 2004 the Minister of Health delegated responsibility for the Disability Health Services to the Minister for 
Families and Communities



96

Department of Health 

8. Grants, Subsidies and Client Payments (continued)
8.3 Funding to Non-Government Organisations

DH
2005

$ 000

DHS
2004

$ 000

Australian Red Cross 86 30
Minda Incorporated   26 597
Royal District Nursing Service of SA Inc. 23 510 21 317
Crippled Children s Association   9 015
Anglicare SA 503 4 893
Uniting Care Wesley 4 714 2 171
Anagu Pitjantjatjara Council   1 650
Cancer Council SA   3 093
Barkuma Inc   1 016
Centacare 198 1 233
Neami Limited 3 710  
SHINE SA 4 539 3 528
Guide Dogs Association   1 731
Life Without Barriers 3 770  
The Richmond Fellowship of Victoria 3 165  
Aboriginal Health Council 1 706 2 708
SA Amputee Service 2 190 1 895
Royal Society for the Blind   2 020
South Australian Division of General Practice Inc 2 750  
Southern Cross Care (SA) Inc 1 570  
SA Rural and Remote Medical Support Agency (now Rural Doctors 
Workforce Agency) 1 535 1 612
Relationships Australia 1 708  
Nganampa Health Council 1 495 1 521
Royal Flying Doctor Service   1 233
Southern District War Memorial Hospital 1 206 1 182
Helping Hand Aged Care Inc 1 100  
Mental Illness Fellowship of SA 1 633  
Catholic Family Services 1 855  
Beyond Blue 1 000  
Calvary Hospital 952 933
Southern Cross Care   798
Port Adelaide Central Mission   294
Other 27 812 8 403
Total Funding to Non-Government Organisations 92 707 98 873



97

Financial Report

9. Borrowing Costs
DH

2005
$ 000

DHS
2004

$ 000

Borrowing Costs paid/payable to entities within the SA Government:
Interest on borrowings 2 980 3 014
Other 20 19
Total Borrowing Costs   SA Government Entities 3 000 3 033
Total Borrowing Costs 3 000 3 033

10. Other Expenses

Other Expenses paid/payable to entities within the 
SA Government:
Assets donated free of charge 1 557  
Prior period adjustments not assignable 81 4 732
Total Other Expenses   SA Government Entities 1 638 4 732

Other Expenses paid/payable to entities external to the 
SA Government:
Assets donated free of charge 13  
Prior period adjustments not assignable 12  
Total Other Expenses   Non-SA Government 25  
Total Other Expenses 1 663 4 732

11. Rent, Fees and Charges Received/Receivable

Rent, Fees and Charges received/receivable from entities within the 
SA Government:
Employee Services *    
Insurance recoveries from health services 24 306  
Recoveries 15 685  
Business services 13 458  
Fees, fi nes and penalties 299  
Rent    
Total Rent, Fees and Charges   SA Government 53 748  

Rent, Fees and Charges received/receivable from entities external to 
the SA Government:
Interstate patient transfers 36 158  
Insurance recoveries from health services 779  
Recoveries 5 389  
Business services 139  
Fees, fi nes and penalties 460  
Rent (21)  
Total Rent, Fees and Charges   Non-SA Government 42 904  
Total Rent Fees and Charges 96 652 142 242

*  Represents the recovery of costs in 2003 04 ($50.01 million) for the provision of employee related services to the SAHT, 
SACHA and AHA. Effective 1 July 2004, these employees were transferred to DFC as part of an administrative restructure.



98

Department of Health 

12. Interest Income

Note

DH
2005

$ 000

DHS
2004

$ 000

Interest from entities within SA Government:
Interest on funds held 1 632 2 630
Interest on loans 3 216 3 235
Total Interest Income 4 848 5 865

13. Net Gain/(Loss) from Disposal 
of Non-Current Assets

Land and Buildings:
Proceeds from disposal   3 650
Less: Net book value of assets disposed   2 511
Less: Other costs of disposal 10 175
Net Gain from Disposal of Land and Buildings (10) 964

General Plant and Equipment:
Proceeds from disposal 1 1
Less: Net book value of assets disposed 33 30
Net Loss from Disposal of General Plant 
and Equipment (32) (29)

Total Assets:
Total proceeds from disposal 1 3 651
Less: Total Value of assets disposed 33 2 541
Less: Total Other costs of disposal 10 175
Total Net Gain/(Loss) from Disposal of 
Non-Current Assets (42) 935

14. Other Revenue

Capital contributions 6 461 2 198
Assets received for nil consideration 14.1   180
Prior period adjustments not assignable 39  
Other 1 083 3 524
Total Other Revenue 7 583 5 902

14.1 Assets Received for Nil Consideration

During the reporting period the Department 
received the following assets free of charge or 
for nominal consideration:
Site land   130
Vacant buildings   50
Total Assets Received for Nil Consideration   180



99

Financial Report

15. Commonwealth Government Grants
DH

2005
$ 000

DHS
2004

$ 000

Australian Health Care Agreement   Base Funding Arrangement 664 400 632 568
Housing Assistance 29 73 688
Department of Veteran Affairs 67 887 63 720
Commonwealth State Disability Agreement   61 347
Home and Community Care   63 086
Highly Specialised Drugs 25 904 24 990
Supported Accommodation Assistance Program   16 069
Public Health Outcome Funding Agreement 11 996 11 761
Red Cross Blood Transfusion Service   39
Meningococcal C Vaccine 4 500 4 556
Essential Vaccines 10 318 6 274
Police Diversion 3 000  
Aged Care Assessment Program   4 389
Woomera Hospital 1 123 1 100
General 87 127
Mental Health Information   340
Other 3 635 6 393
Total Commonwealth Government Grants 792 879 970 447

16. Revenue from/Payments to 
South Australian Government

South Australian Government Appropriations:
Appropriations from consolidated account pursuant 
to the Appropriation Act
General appropriation 1 415 310 1 521 199
Tax equivalent regime reimbursement   SAHT   70 616
Tax equivalent regime reimbursement   HomeStart Finance   2 551
State housing assistance funds   34 150
Total South Australian Government Appropriations 1 415 310 1 628 516

Grants from South Australian Government Agencies:
Community Development Fund 6 500 9 900
Department of Treasury and Finance   Contingency Funds 58 607 113 206
TVSP recoveries   1 731
Department for Families and Communities   
Home and Community Care 54 177  
Other 11 803 6 879
Total Grants from South Australian Government Agencies 131 087 131 716
Total Revenue from South Australian Government 1 546 397 1 760 232



100

Department of Health 

17. Cash
DH

2005
$ 000

DHS
2004

$ 000

Special Deposit Account with the Treasurer * 29 528 62 168
Advance Account 771 1 104
Other deposits   33
Cash on hand   2
Total Cash 30 299 63 307

* The decrease in cash balances is a result of transferring $28.78 million to DFC as part of the administrative restructure. There 
has been no reduction in the level of cash held by the Department as a result of the cash alignment policy.

18. Receivables

Note

DH
2005

$ 000

DHS
2004

$ 000

Current:
Debtors 20 012 14 565
Health service budget over-runs 4 815 7 882
Employee related services recoverable   7 413
Grants   1 807
Interstate patient transfers 10 264 8 948
Loans 18.1 1 041 869
Interest 489 745
Overpaid salaries 25 116
Sundry 5 684
Goods and services tax receivable 6 872 4 751
Less: Provision for doubtful debts 377 358
Total Current Receivables 43 146 47 422

Non-Current:
Health service budget over-runs 52 735 50 312
Loans 18.1 38 976 38 644
Sundry 21 156
Less: Provision for doubtful debts 51 615 49 032
Total Non-Current Receivables 40 117 40 080
Total Receivables 83 263 87 502

Government/Non-Government Receivables

Receivables from SA Government Entities:
Debtors 14 296  
Health service budget over-runs 57 550  
Loans 40 017  
Interest 489  
Less: Provision for doubtful debts 51 634  
Total Receivable from SA Government Entities 60 718  



101

Financial Report

Note

DH
2005

$ 000

DHS
2004

$ 000

Receivables from Non-SA Government Entities:
Debtors 5 716  
Interstate patient transfers 10 264  
Overpaid salaries 25  
Sundry 26  
Goods and services tax receivable 6 872  
Less: Provision for doubtful debts 358  
Total Receivable from Non-SA Government Entities 22 545  
Total Receivables 83 263 87 502

18.1 Reconciliation of Inter-Health Loans

As at 30 June 2005 the balance of loans to Health 
Services and related movements is as follows:
Balance at 1 July 39 513 39 458
Add: Advances to health services 1 500 507
Capitalised interest charges 329 426
Total Repayable 41 342 40 391
Less: Principal repayments received 1 325 878
Balance at 30 June 40 017 39 513

The Department to 30 June 2005 has fi nanced the Health Services with loans amounting to $10.28 
million ($9.56 million) from Department funds and $29.73 million ($29.95 million) from back to back 
loan arrangements with the Department of Treasury and Finance.

The movements and status of the back to back loan arrangements are as follows:

Balance at 1 July 29 954 29 941
Add: Capitalised interest charges 174 280
Total Repayable 30 128 30 221
Less: Principal Repayments 396 267
Balance at 30 June 29 732 29 954

19. Inventories

Drug supplies 3 985 1 798
Other   49
Total Inventories 3 985 1 847



102

Department of Health 

20. (a) Property, Plant and Equipment

DH
2005

$ 000

DHS
2004

$ 000

Land and Buildings:
Vacant land at fair value 23 962 20 336
Site land at fair value 4 246 53 642
Vacant buildings at fair value 1 825 9 671
Buildings and improvements at fair value 5 142 73 555
Less: Accumulated depreciation   Buildings and 
improvements at fair value 3 178 37 981
Total Land and Buildings 31 997 119 223

Leasehold Improvements:
Leasehold improvements at cost (deemed fair value) 3 781 10 236
Less: Accumulated amortisation 3 274 8 275
Total Leasehold Improvements 507 1 961
Total Property and Leasehold Improvements 32 504 121 184

Plant and Equipment:
Medical, surgical, dental and biomedical equipment at 
cost (deemed fair value) 3 618 3 618
Less: Accumulated depreciation   Medical, surgical 
and biomedical equipment 3 180 2 855
Computing equipment/systems development at cost 
(deemed fair value) 5 309 3 238
Less: Accumulated depreciation   Computing 
equipment/systems development at cost 2 675 3 187
Other plant and equipment at cost (deemed fair value) 1 552 2 628
Less: Accumulated depreciation   Other plant and 
equipment 754 1 518
Total Plant and Equipment 3 870 1 924
Total Property, Plant and Equipment 36 374 123 108

(b) Capital Works in Progress

Buildings and improvements in progress at cost 
(deemed fair value) 1 102 3 150
Total Capital Works in Progress 1 102 3 150



103

Financial Report

Reconciliation of Property and Leasehold Improvements

The following table shows the movement of land, buildings and improvements, and leasehold 
improvements during 2004 05 for DH:

Vacant
Land
$ 000

Site Land
$ 000

Vacant
Buildings

$ 000

Buildings &amp;
Improvements

$ 000

Leasehold
Improvements

$ 000

Total Property
&amp; Leasehold

Improvements
$ 000

Carrying amount 
at 1 July 20 336 53 642 9 671 35 574 1 961 121 184
Purchases     1 350 1 557   2 907
Assets donated 
free of charge       (1 557)   (1 557)
Revaluation 
Increment 
(Decrement) 4 442 735       5 177
Depreciation and 
amortisation       (149) (238) (387)
Acquisition 
(Disposal) through 
administrative 
restructure (3 843) (50 131) (6 206) (33 461) (1 216) (94 857)
Acquisition 
(Disposal) from 
other classes 2 990   (1 963)     1 027
Other movements 37   (1 027)     (990)
Carrying Amount 
at 30 June 23 962 4 246 1 825 1 964 507 32 504

Reconciliation of Plant and Equipment

The following table shows the movement of plant and equipment during 2004 05 for DH:

Medical,
Surgical,

Dental and
Biomedical
Equipment

$ 000

Computing
Equipment

$ 000

Other Plant
and Equipment

$ 000

Total Plant and
Equipment 

$ 000

Carrying amount at 1 July 763 51 1 110 1 924
Purchases   62 161 223
Assets donated free of charge   (13)   (13)
Disposals     (21) (21)
Write-off non-current assets     (20) (20)
Depreciation and amortisation (325) (32) (145) (502)
Acquisition (Disposal) through 
administrative restructure   (3) (288) (291)
Acquisition (Disposal) from works 
in progress   2 569   2 569
Other movements     1 1
Carrying Amount at 30 June 438 2 634 798 3 870



104

Department of Health 

21. Other Assets
DH

2005
$ 000

DHS
2004

$ 000

Current:
Prepayments 7 050 2 932
Total Current Other Assets 7 050 2 932

Non-Current:
Prepayments 485 531
Total Non-Current Other Assets 485 531
Total Other Assets 7 535 3 463

22. Payables
Current:
Creditors 9 849 11 353
Health service workers compensation 7 636 9 242
Health service budget under-runs 3 429 4 650
Grants to non-government organisations 685 6 067
Grants to SAHT   Tax equivalent regime   624
Interest 259 783
Other accrued expenses 149 192
Employee benefi t on-costs 1 325 2 766
Total Current Payables 23 332 35 677

Non-Current:
Health service workers compensation 18 355 21 435
Grants to non-government organisations 181 1 294
Employee benefi t on-costs 1 680 3 543
Total Non-Current Payables 20 216 26 272
Total Payables 43 548 61 949

SA Government/Non-SA Government Payables

Payables to other SA Government Entities:
Creditors 5 734  
Health service workers compensation 25 991  
Health service budget under-runs 3 429  
Interest 259  
Employee benefi t on-costs 3 005  
Total Payables to Other SA Government Entities 38 418  

Payables to Non-SA Government Entities:
Creditors 4 115  
Grants to non-Government organisations 866  
Other accrued expenses 149  
Total Payable to Non-SA Government Entities 5 130  
Total Payables 43 548 61 949



105

Financial Report

23.(a) Employee Benefi ts
DH

2005
$ 000

DHS
2004

$ 000

Current:
Annual leave 4 134 11 387
Long service leave 2 212 5 037
Accrued salaries and wages 786 2 109
Other (16) (16)
Total Current Employee Benefi ts 7 116 18 517

Non-Current:
Long service leave 10 504 31 391
Other   20
Total Non-Current Employee Benefi ts 10 504 31 411
Total Employee Benefi ts 17 620 49 928

Costs that are a consequence of employing employees, but which are not employee benefi ts, such as 
payroll tax and superannuation on-costs, are recognised as liabilities and expenses when the employee 
benefi ts to which they relate are recognised. These employee benefi t on-costs are recognised as 
Payables in Note 22 as they do not accrue to employees.

(b) Employee Benefi ts and Related On-costs

Accrued Salaries and Wages:
On-costs included in payables   Current (Note 22) 135 313
Provision for employee benefi ts (accrued salaries and wages) 
  Current (Note 23(a)) 786 2 109

921 2 422
Annual Leave:
On-costs included in payables   Current (Note 22) 836 1 818
Provision for employee benefi ts (annual leave)   Current (Note 23(a)) 4 134 11 387

4 970 13 205
Long Service Leave:
On-costs included in payables   Current (Note 22) 354 636
Provision for employee benefi ts (long service leave)   Current 
(Note 23(a)) 2 212 5 037

2 566 5 673
On-costs included in payables   Non-current (Note 22) 1 680 3 543
Provision for employee benefi ts (long service leave)   Non-current 
(Note 23(a)) 10 504 31 391

12 184 34 934
Other:
On-costs included in payables   Current (Note 22)    
Provision for employee benefi ts (other)   Current (Note 23(a)) (16) (16)

(16) (16)
On-costs included in payables   Non-current (Note 22)    
Provision for employee benefi ts (other)   Non-current (Note 23(a))   20

  20
Total Employee Benefi t and Related On-Costs 20 625 56 238



106

Department of Health 

24. Borrowings
DH

2005
$ 000

DHS
2004

$ 000

SA Government/Non-SA Government Entities

Borrowings from SA Government Entities

Current:
Department of Treasury and Finance   Loans 566 396
Total Current Borrowings 566 396

Non-Current:
Department of Treasury and Finance   Loans 29 166 29 558
Advance   Treasury Imprest Account 285 285
Total Non-Current Borrowings 29 451 29 843
Total Borrowings from SA Government Entities 30 017 30 239
Total Borrowings 30 017 30 239

Repayable:
Not later than one year 566 396
Later than one year but not later than fi ve years 5 993 4 914
Later than fi ve years 23 458 24 929

30 017 30 239
Borrowings from Non-SA Government Entities

There were no borrowings from Non-SA Government Entities

25. Provisions

Note

DH
2005

$ 000

DHS
2004

$ 000

Current:
Insurance 25.1 11 165 10 347
Workers compensation 25.2 425 3 308
Other 205 378
Total Current Provisions 11 795 14 033

Non-Current:
Insurance 25.1 82 540 92 183
Workers compensation 25.2 972 6 868
Total Non-Current Provisions 83 512 99 051
Total Provisions 95 307 113 084



107

Financial Report

25.1 Reconciliation of Insurance

The following table shows the movement of insurance during 2004 05:

Medical
Malpractice

$ 000

Public 
Liability

$ 000 Property $ 000 Total $ 000

Carrying amount at 1 July 99 647 1 524 1 359 102 530
Transfer out to DFC at 1 July   (169) (16) (185)

99 647 1 355 1 343 102 345
Increase to provision due to 
new claims 13 513 1 704 1 300 16 517
Reduction due to payments (3 871) (842) (1 004) (5 717)
Net revision of estimates (19 761) 606 (285) (19 440)
Carrying Amount at 30 June 89 528 2 823 1 354 93 705

The following table shows the movement of insurance during 2003 04 for DHS:

Medical
Malpractice

$ 000

Public 
Liability

$ 000 Property $ 000 Total $ 000

Carrying amount at 1 July 89 917 1 098 991 92 006
Increase to provision due to 
new claims 15 003 340 858 16 201
Reduction due to payments (6 757) (1 344) (559) (8 660)
Net revision of estimates 1 484 1 430 69 2 983
Carrying Amount at 30 June 99 647 1 524 1 359 102 530

25.2 Reconciliation of Workers Compensation

The following table shows the movement of workers compensation during 2004 05:
DH

2005
$ 000

DHS
2004

$ 000

Carrying amount at 1 July 10 176 9 024
Transfers to DFC (8 826)  
Increase to provision due to revision of estimates 1 988 4 823
Reduction due to payments (1 941) (3 671)
Carrying Amount at 30 June 1 397 10 176

26. Other Liabilities

Current:
Unclaimed monies 978 906
Interstate patient transfers 484 7 701
Unearned revenue 776 412
Other 91 91
Total Current Other Liabilities 2 329 9 110

Non-Current:
Unearned revenue 467 467
Total Non-Current Other Liabilities 467 467
Total Other Liabilities 2 796 9 577



108

Department of Health 

27. Equity
DH

2005
$ 000

DHS
2004

$ 000

Contributed capital 119 719 114 340
Accumulated defi cit (166 446) (160 220)
Asset revaluation reserve 19 997 63 480
Total Equity (26 730) 17 600

Contributed Capital:
Balance at 1 July 114 340 88 722
Receipts of equity contribution from the 
Department of Treasury and Finance 5 379 25 618
Balance at 30 June 119 719 114 340

Accumulated Defi cit:
Balance at 1 July (160 220) (131 595)
Net result after restructuring (54 925) (29 515)
Prior period adjustment 39  
Transfers from asset revaluation reserve 48 660 890
Balance at 30 June (166 446) (160 220)

Asset Revaluation Reserve:
Balance at 1 July 63 480 41 596
Increment in site land due to revaluation 735 17 197
Increment in vacant land due to revaluation 4 442 5 577
Transfers from asset revaluation reserve (48 660) (890)
Balance at 30 June 19 997 63 480

28. Financial Instruments
(a) Terms, Conditions and Accounting Policies

Financial Assets

Cash deposits are recognised at their nominal amounts and interest is credited to revenue as it accrues. 
The Department invests surplus funds with the Treasurer at call. Interest is earned on the average 
monthly balance at rates based on the Department of Treasury and Finance 90 day bank bill rate and 
interest is paid at the end of each quarter.

Trade account receivables are generally settled within 30 days, are carried at amounts due and credit 
terms are net 30 days. A provision is raised for any doubtful debts based on a review of all outstanding 
amounts at balance date and bad debts are written off in the period in which they are identifi ed.

Loans are recognised at the nominal amounts lent and collectability of amounts outstanding is 
reviewed at balance date. A provision is made for bad and doubtful loans where collection of the loan 
or part thereof is judged to be less likely rather than more likely. Loan repayments may be waived. 
Interest is credited to revenue as it accrues. Principal is repaid in accordance with the repayment 
schedule. Interest rates are fi xed and interest payments are due on the day of the scheduled agreed 
terms of payment.

Financial Liabilities

Trade accounts payable, including accruals not yet billed, are recognised when the Department becomes 
obliged to make future payments as a result of a purchase of assets or goods and services at their 
nominal amounts. Trade accounts payable are generally settled within 30 days.



109

Financial Report

Borrowings are recognised when issued at the amount of the net proceeds due and carried at cost until 
settled. Interest is recognised as an expense on an effective yield basis.

(b) Interest Rate Risk Exposure
2005

Fixed Interest Rate

Weighted
Average

Effective
Rate

Percent

Floating
Interest

Rate
$ 000

1 Year
or Less

$ 000

1 to 5
Years
$ 000

More
Than 5

Years
$ 000

Non
Interest
Bearing

$ 000
Total
$ 000

Financial Assets:
Cash and deposits 5.16 30 299         30 299
Loans 9.75 3 829 974 6 755 26 270 2 189 40 017
Health service budget 
over-runs           5 935 5 935
Receivables           37 311 37 311

34 128 974 6 755 26 270 45 435 113 562
Financial Liabilities:
Creditors and accruals           14 128 14 128
Borrowings 10.04   567 5 993 23 457 285 30 302
Health service budget 
under-runs           3 429 3 429
Health service workers 
compensation           25 991 25 991

  567 5 993 23 457 43 833 73 850

2004
Fixed Interest Rate

Weighted
Average

Effective
Rate

Percent

Floating
Interest

Rate
$ 000

1 Year
or Less

$ 000

1 to 5
Years
$ 000

More
Than 5

Years
$ 000

Non
Interest
Bearing

$ 000
Total
$ 000

Financial Assets:
Cash and deposits 5.02 63 307         63 307
Loans 9.75 2 407 828 4 747 29 343 2 188 39 513
Health service budget 
over-runs N/A         9 162 9 162
Receivables N/A         38 827 38 827

65 714 828 4 747 29 343 50 177 150 809
Financial Liabilities:
Creditors and accruals N/A         26 622 26 622
Borrowings 10.04   396 3 470 26 088 285 30 239
Health service budget 
under-runs N/A         4 650 4 650
Health service workers 
compensation N/A         30 677 30 677

  396 3 470 26 088 62 234 92 188



110

Department of Health 

28. Financial Instruments (continued)
(c) Net Fair Value of Financial Assets and Liabilities

The net fair value of cash and cash equivalents and non-interest bearing monetary fi nancial assets and 
fi nancial liabilities approximates their carrying value.

DH
2005

DHS
2004

Carrying
Amount

$ 000

Net Fair
Value
$ 000

Carrying
Amount

$ 000

Net Fair
Value
$ 000

Financial Assets:
Cash 30 299 30 299 63 307 63 307
Loans 40 017 48 568 39 513 43 755
Health service budget over-runs 5 935 5 935 9 162 9 162
Receivables 37 311 37 311 38 827 38 827

113 562 122 113 150 809 155 051
Financial Liabilities:
Payables 14 128 14 128 26 622 26 622
Borrowings 30 302 39 464 30 239 41 676
Health service budget under-runs 3 429 3 429 4 650 4 650
Health service workers compensation 25 991 25 991 30 677 30 677

73 850 83 012 92 188 103 625

(d) Foreign Exchange Risk

In accordance with Treasurer s Instruction 23  Management of Foreign Currency Exposures  the 
Department was required to enter into six forward exchange contracts through the South Australian 
Government Financing Authority, to cover the anticipated acquisition of hospital equipment in 
the 2004 05 and 2005 06 fi nancial years. The objective of these hedging contracts is to manage the 
likelihood of any foreign currency exposures that could arise during the period between approval 
for the acquisition and payment for delivery. The Department is not exposed to any movements in 
foreign exchange.

(e) Credit risk represents the loss that would be recognised if counter parties failed to perform 
as contracted

The credit risk on the Department s fi nancial assets excluding investments which have been recognised 
in the Statement of Financial Position, is the carrying amount, net of any provision for doubtful debts.

29. Commitments for Expenditure
(a) Capital Commitments

Capital expenditure contracted for by the Department at the reporting date, but not recognised as 
liabilities in the fi nancial report, are payable as follows:

DH
2005

$ 000

DHS
2004

$ 000

Not later than one year 10 810 12 437
Later than one year but not later than fi ve years 3 281  
Later than fi ve years    
Total Capital Commitments (including GST) 14 091 12 437



111

Financial Report

Included in Capital expenditure commitments above is $1.281 million ($1.131 million) which is the 
GST component of the Capital expenditure commitments.

(b) Other Commitments

Capital expenditure contracted for by the Department on behalf of Health Units, at the reporting date 
but not recognised as liabilities in the fi nancial report, are payable as follows:

DH
2005

$ 000

DHS
2004

$ 000

Not later than one year 54 029 34 874
Later than one year but not later than fi ve years 139 860 2 063
Later than fi ve years    
Total Other Commitments (including GST) 193 889 36 937

Included in the Other expenditure commitments above is $19.4 million ($3.357 million) which is the 
GST component of the Other expenditure commitments. The Department also has commitments to 
provide funding to various non-government organisations in accordance with negotiated service 
agreements. The value of these commitments as at 30 June 2005 has not been quantifi ed.

(c) Operating Lease Commitments

Commitments under non-cancellable operating leases at the reporting date not recognised as liabilities 
in the fi nancial report, are payable as follows:

DH
2005

$ 000

DHS
2004

$ 000

Not later than one year 6 558 10 457
Later than one year but not later than fi ve years 21 536 27 702
Later than fi ve years 4 984 4 642
Total Operating Lease Commitments (including GST) 33 078 42 801

Included in the operating lease commitments above is $3.007 million ($3.89 million) which is the GST 
component of the operating lease payments.

The Department has a number of lease agreements. These leases are for administrative purposes and 
vary in length. Lease payments are monthly and predominately paid in advance. Each lease agreement 
has renewal options for a determined period, exercisable by both the lessor and lessee. Contingent 
rental payments are determined using a set rate. In most cases this is either CPI or current market rate.

30. Transferred Functions
Transfers from the Department

On 5 March 2004, the Governor established the Department for Families and Communities (DFC) and 
declared that for fi nancial accounting and reporting purposes the establishment of DFC would occur 
on 1 July 2004. The assets and liabilities were transferred from the Department to DFC effective 
1 July 2004. In addition, effective 1 July 2004, the assets and liabilities of the Guardianship Board (GB) 
and the Offi ce of the Public Advocate (OPA) were transferred to the Attorney-General s Department 
(refer Note 1.3).

All the assets and liabilities transferred from the Department have been so in accordance with 
Australian Accounting Standard AAS 29  Financial Reporting by Government , Accounting Policy 
Statement 16  Entity Restructuring  and other relevant professional pronouncements.

In respect of the activities relinquished, the following assets and liabilities were transferred out of 
the Department.



112

Department of Health 

30. Transferred Functions (continued)
Transfers from the Department (continued)

GB
2005

$ 000

OPA
2005

$ 000

DFC
2005

$ 000

DH
Total
$ 000

DHS
Total
$ 000

Assets:
Current assets 3   37 230 37 233  
Non-current assets 13   97 765 97 778  
Total Assets 16   134 995 135 011  
Liabilities
Current liabilities 72 79 26 381 26 532  
Non-current liabilities 80 92 36 108 36 280  
Total Liabilities 152 171 62 489 62 812  
Net Assets (136) (171) 72 506 72 199  

Net Expenses from Restructuring of Administrative Arrangements

The net revenues (expenses) relating to the restructure of administrative arrangements recognised in 
the statement of Financial Performance are the following:

GB
2005

$ 000

OPA
2005

$ 000

DFC
2005

$ 000

DH 2005
Total
$ 000

DHS 2004
Total
$ 000

136 171 (72 506) (72 199)  

31. Contingent Liabilities
The Department does not have any contingent liabilities.



113

Financial Report

32. Cash Flow Reconciliations
2005

$ 000
2004

$ 000

Reconciliation of Cash   At year end as per:
Statement of Cash Flows 30 299 63 307
Statement of Financial Position 30 299 63 307

Reconciliation of Net Cash Infl ows (Outfl ows) from Operating Activities to Net Cost of Services

Net cash infl ows (outfl ows) from operating activities (2 042) (8 462)
South Australian Government Appropriations (1 415 310) (1 628 516)
Grants from South Australian Government Agencies (131 087) (131 716)

 (1 548 439) (1 768 694)

Add/Less Non-Cash Items:
Depreciation and amortisation (889) (2 910)
Assets received for nil consideration   180
Bad and doubtful debts (2 602)  
Assets written off/expensed   (601)
Asset donated free of charge (1 570)  
Prior period adjustment unassignable (42) (4 732)
Gain on sale of assets (42) 935
Capitalised interest on borrowings (174) (280)
Capitalised interest on loans 329 426

Changes in Assets and Liabilities:
(Decrease) Increase in receivables 5 412 13 689
Increase in other assets 6 434 222
Decrease (Increase) in payables (953) (3 146)
(Increase) in employee benefi ts (2 012) (5 611)
Decrease (Increase) in other liabilities 6 608 (7 832)
Decrease (Increase) in provisions 8 817 (11 393)
Net Cost of Services from Ordinary Activities (1 529 123) (1 789 747)

33. Events After Balance Date
In June 2001 the Minister for Health informed the Estimates Committee of the House of Assembly 
that the Women s and Children s Hospital, had prior to 1990 performed post-mortems and retained 
some organs and tissue specimens. A number of persons chose to seek compensation for psychological 
trauma suffered by them as a result of learning that the body of the deceased had not been buried 
intact. The investigation revealed that a number of these claims related to post mortems carried out 
at other hospitals. Since 30 June 2005 the Crown Solicitor has negotiated settlement for all but two 
claims. The details of settlement are unable to be publicly disclosed as all parties have agreed to 
keep them confi dential.



114

Department of Health 

34. Schedules of Administered Funds
The following Revenues, Expenditures, Assets and Liabilities were administered but not controlled 
by the Department and have not been included in the fi nancial statements. In accordance with 
the Department of Treasury and Finance Model Financial Statements, these items are regarded as 
insignifi cant to the Department s overall performance and are disclosed in the 
following Schedules.

They include activities associated with the establishment of the three new health services and the 
salary of the Chief Executive of DFC. The health services are Central Northern Adelaide Health Service, 
Southern Adelaide Health Service and Children, Youth and Women s Health Service.

Schedule of Administered Revenue and Expenses for the period ending 30 June 2005

2005

SA Amb
Service

$ 000
HCDSMC

$ 000

Gamb
Rehab*

$ 000

Conces
sions*

$ 000

Minist
Salary

$ 000

Comm-
unity

Service
Obligatn*

$ 000

Charitable
and Social

Welfare*
$ 000

Other
$ 000

Total
$ 000

Administered 
Expenses:

Employee 
benefi ts   345     207     982 1 534

Supplies and 
services   343           2 364 2 707

Grants, subsidies 
and client 
payments 43 617 15 099           1 116 59 832

Depreciation and 
amortisation   2           1 3

Total 
Administered 
Expenses 43 617 15 789     207     4 463 64 076

Administered 
Revenues:

Department 
appropriation   1 271             1 271

Commonwealth 
grants   9 190             9 190

Grants and 
contributions 43 617       205     4 050 47 872

User charges and 
fees   12 208           66 12 274

Interest   1 004             1 004

Other revenues   80             80

Total 
Administered 
Revenue 43 617 23 753     205     4 116 71 691

Administered 
Revenue Less 
Expenses   7 964     (2)     (347) 7 615



115

Financial Report

Schedule of Administered Revenue and Expenses for the period ending 30 June 2005 (continued)
2004

SA Amb
Service

$ 000
HCDSMC

$ 000

Gamb
Rehab*

$ 000

Conces
sions*

$ 000

Minist
Salary

$ 000

Comm-
unity

Service
Obligatn*

$ 000

Charitable
and Social

Welfare*
$ 000

Other
$ 000

Total
$ 000

Administered 
Expenses:

Employee 
benefi ts   331 3   404   18 538 1 294

Supplies and 
services   405 433       187 238 1 263

Grants, subsidies 
and client 
payments   6 012 3 073 86 586   9 017 3 290 564 108 542

Depreciation and 
amortisation   1             1

Total 
Administered 
Expenses   6 749 3 509 86 586 404 9 017 3 495 1 340 111 100

Administered 
Revenues:

Department 
appropriation     1 800 103 163   9 017   70 114 050

Commonwealth 
grants               162 162

Grants and 
contributions     1 630 1 840 399   4 015 714 8 598

User charges and 
fees   9 097           172 9 269

Interest   535 23         45 603

Other revenues   30         5 55 90

Total 
Administered 
Revenue   9 662 3 453 105 003 399 9 017 4 020 1 218 132 772

Administered 
Revenue Less 
Expenses   2 913 (56) 18 417 (5)   525 (122) 21 672

* Transferred to Department for Families and Communities on 1 July 2004.



116

Department of Health 

34. Schedules of Administered Funds (continued)
Schedule of Administered Assets and Liabilities for the period ending 30 June 2005

2005

SA Amb
Service

$ 000
HCDSMC

$ 000

Gamb
Rehab*

$ 000

Conces
sions*

$ 000

Minist
Salary

$ 000

Comm-
unity

Service
Obligatn*

$ 000

Charitable
and Social

Welfare*
$ 000

Other
$ 000

Total
$ 000

Administered 
Current Assets:

Cash   22 109             22 109

Receivables         205       205

Total 
Administered 
Current Assets   22 109     205       22 314

Administered 
Non-Current 
Assets:

Plant and 
equipment   17           11 28

Total 
Administered 
Non-Current 
Assets   17           11 28

Total 
Administered 
Assets   22 126     205     11 22 342

Administered 
Current 
Liabilities:

Payables   5 889     7     57 5 953

Bank overdraft         205     278 483

Employee 
benefi ts   107             107

Other current 
provisions   7             7

Total 
Administered 
Current 
Liabilities   6 003     212     335 6 550

Total 
Administered 
Liabilities   6 003     212     335 6 550

Net 
Administered 
Assets   16 123     (7)     (324) 15 792



117

Financial Report

Schedule of Administered Assets and Liabilities for the period ending 30 June 2005 (continued)

2004

SA Amb
Service

$ 000
HCDSMC

$ 000

Gamb
Rehab*

$ 000

Conces
sions*

$ 000

Minist
Salary

$ 000

Comm-
unity

Service
Obligatn*

$ 000

Charitable
and Social

Welfare*
$ 000

Other
$ 000

Total
$ 000

Administered 
Current Assets:

Cash   8 455 915 27 149     2 405 621 39 545

Receivables         33       33

Total 
Administered 
Current Assets   8 455 915 27 149 33   2 405 621 39 578

Administered 
Non-Current 
Assets:

Plant and 
equipment   6             6

Total 
Administered 
Non-Current 
Assets   6             6

Total 
Administered 
Assets   8 461 915 27 149 33   2 405 621 39 584

Administered 
Current 
Liabilities:

Payables   188   132       45 365

Bank overdraft         33     6 39

Employee 
benefi ts   107     5       112

Other current 
provisions   7   1 185       2 1 194

Total 
Administered 
Current 
Liabilities   302   1 317 38     53 1 710

Total 
Administered 
Liabilities   302   1 317 38     53 1 710

Net 
Administered 
Assets   8 159 915 25 832 (5)   2 405 568 37 874

* Transferred to Department for Families and Communities on 1 July 2004.



118

Department of Health 

34. Schedules of Administered Funds (continued)
Schedule of Administered Cash Flows for the period ending 30 June 2005

2005

SA Amb
Service

$ 000
HCDSMC

$ 000

Gamb
Rehab*

$ 000

Conces
sions*

$ 000

Minist
Salary

$ 000

Comm-
unity

Service
Obligatn*

$ 000

Charitable
and Social

Welfare*
$ 000

Other
$ 000

Total
$ 000

Cash Flows 
from Operating 
Activities:

Cash Infl ows:

Receipts from SA 
Government 43 617 1 271     17     4 050 48 955

Taxes, fees and 
charges               66 66

Grants and 
contributions   9 190             9 190

Interest revenue   1 004             1 004

Other revenue   12 289             12 289

Total Cash 
Infl ows 43 617 23 754     17     4 116 71 504

Cash Outfl ows:

Employee 
payments   345     205     970 1 520

Concessions                  

Grants and 
subsidies 43 617 9 382           1 116 54 115

Goods and 
services   359           2 364 2 723

Payments to the 
consolidated 
account                  

Other               1 1

Total Cash 
Outfl ows 43 617 10 086     205     4 451 58 359

Net Cash 
Infl ows/Cash 
Outfl ows 
  Operating 
Activities   13 668     (188)     (335) 13 145

Cash Flows 
from Investing 
Activities:

Cash Infl ows:

Restructuring 
activities                  

Total Cash 
Infl ows                  



119

Financial Report

Schedule of Administered Cash Flows for the period ending 30 June 2005 (continued)

2005

SA Amb
Service

$ 000
HCDSMC

$ 000

Gamb
Rehab*

$ 000

Conces
sions*

$ 000

Minist
Salary

$ 000

Comm-
unity

Service
Obligatn*

$ 000

Charitable
and Social

Welfare*
$ 000

Other
$ 000

Total
$ 000

Cash Outfl ows:

Payments for 
plant, equipment 
and investments   14           12 26

Total Cash 
Outfl ows   14           12 26

Net Cash 
Infl ows/Cash 
Outfl ow 
  Investing 
Activities   (14)           (12) (26)

Cash Flows 
from Financing 
Activities:

Cash Infl ows:

Bank overdraft         188     278 466

Total Cash 
Infl ows         188     278 466

Cash Outfl ows:

Repayment of 
borrowing                  

Total Cash 
Outfl ows                  

Net Cash 
Infl ows/Cash 
Outfl ows 
  Financing 
Activities         188     278 466

Net Increase 
(Decrease) in 
Cash Held   13 654           (69) 13 585

Cash at 1 July   8 455           69 8 524

Cash at 30 June   22 109             22 109



120

Department of Health 

34. Schedules of Administered Funds
Schedule of Administered Cash Flows for the period ending 30 June 2005 (continued)

2004

SA Amb
Service

$ 000
HCDSMC

$ 000

Gamb
Rehab*

$ 000

Conces
sions*

$ 000

Minist
Salary

$ 000

Comm-
unity

Service
Obligatn*

$ 000

Charitable
and Social

Welfare*
$ 000

Other
$ 000

Total
$ 000

Cash Flows 
from Operating 
Activities:

Cash Infl ows:

Receipts from SA 
Government     1 800 103 163 433 9 017   783 115 196

Taxes, fees and 
charges   9 133           175 9 308

Grants and 
contributions     1 630 1 840     4 015 162 7 647

Interest revenue   535 23         45 603

Other revenue             5 54 59

Total Cash 
Infl ows   9 668 3 453 105 003 433 9 017 4 020 1 219 132 813

Cash Outfl ows:

Employee 
payments   322 3   402   18 492 1 237

Concessions       85 269         85 269

Grants and 
subsidies   5 956 3073     9 017 3 290 564 21 900

Goods and 
services   392 433       187 238 1 250

Payments to the 
consolidated 
account                  

Other                  

Total Cash 
Outfl ows   6 670 3509 85 269 402 9 017 3 495 1 294 109 656

Net Cash 
Infl ows/Cash 
Outfl ows 
  Operating 
Activities   2 998 (56) 19 734 31   525 (75) 23 157

Net Cash 
Infl ows/Cash 
Outfl ows 
  Investing 
and Financing 
Activities                  

Net Increase 
(Decrease) in 
Cash Held   2 998 (56) 19 734 31   525 (75) 23 157

Cash at 1 July   5 457 972 7415 (64)   1 879 690 16 349

Cash at 30 June   8 455 916 27 149 (33)   2 404 615 39 506

* Transferred to Department for Families and Communities on 1 July 2004.



121

Financial Report

Transfer of Administered Items from Department of Human Services (now the Department of Health) 
to the Department for Families and Communities (DFC)

The following administered items were transferred to DFC 1 July 2004:

Gambler s Rehabilitation Fund
Concessions
Community Services Obligations
Charitable and Social Welfare
Alternative Car Fund
Family Maintenance Orders
Supported Residential Trust Fund
Duke of Edinburgh Trust
CRC Trust

(SAICORP, Public Health and Information Development Unit, Medical Defence Association, 
Roma Mitchell Trust Fund and CEO Families etc ceased to exist as at 1 July 2004.)

Administered Expenses and Administered Cash Outfl ows

The Department makes various transfer payments to eligible benefi ciaries in the capacity of an 
agent responsible for the administration of the transfer process. Amounts relating to these transfer 
payments are not controlled by the Department, since they are made at the discretion of Government in 
accordance with Government policy.

These transfers are disclosed as administered expenses and administered cash outfl ows.

Administered Revenues and Administered Cash Infl ows

The Department collects various revenues and grants on behalf of Government. The amounts are not 
controlled by the Department and are not recognised by the Department. These amounts are disclosed 
as administered revenues and administered cash infl ows.

Administered Contingent Assets and Liabilities

The Department has no administered contingent assets and liabilities.

Other Items Administered by the Department of Health

Beyond Blue
Central Northern Adelaide Health Service
Children, Youth and Women s Health Service
Southern Adelaide Health Service



122

Department of Health 

Statement by the Chairperson and the Principal 
Accounting Offi cer

We certify that:

  The attached fi nancial statements are in accordance with the accounts and records of the authority 
and give an accurate indication of the fi nancial transactions of the South Australian Health 
Commission for the year ended 30 June 2005;

  The attached fi nancial statements present fairly, in accordance with the Treasurer s Instructions 
promulgated under the provisions of the Public Finance and Audit Act 1987, applicable Accounting 
Standards and other mandatory professional reporting requirements in Australia, the fi nancial 
position of the entity as at the reporting date and the result of its operations and its cash fl ows for 
the year ended; and

  Internal controls over fi nancial reporting have been effective throughout the reporting period.

Jim Birch
Chairperson
South Australian Health Commission
29 September 2005

Onno Van Der Wel
Acting, Director Financial Services
South Australian Health Commission
29 September 2005



123

Financial Report

Independent Audit Report

To the Chairman
South Australian Health Commission

Scope

As required by section 31 of the Public Finance and Audit Act 1987 and Subsection 25(2) of the South 
Australian Health Commission Act 1976, I have audited the fi nancial report of the South Australian Health 
Commission for the fi nancial year ended 30 June 2005. The fi nancial report comprises:

  A statement of Financial Performance;

  A statement of Financial Position;

  A Statement of Cash Flows;

  Notes to and forming part of the Financial Statements;

  A Certifi cate by the Chairperson and the Acting Director, Financial Services.

The members of the Board of the South Australian Health Commission are responsible for the fi nancial 
report. I have conducted an independent audit of the fi nancial report in order to express an opinion on 
it to the Chairperson.

The audit has been conducted in accordance with the requirements of the Public Finance and Audit Act 
1987 and Australian Auditing and Assurance Standards to provide reasonable assurance whether the 
fi nancial report is free of material misstatement.

Audit procedures included examination, on a test basis, of evidence supporting the amounts and other 
disclosures in the fi nancial report and the evaluation of accounting policies and signifi cant accounting 
estimates. These procedures have been undertaken to form an opinion whether, in all material respects, 
the fi nancial report is presented fairly in accordance with Treasurer s Instructions promulgated under 
the provisions of the Public Finance and Audit Act 1987, Accounting Standards and other mandatory 
professional reporting requirements in Australia so as to present a view which is consistent with 
my understanding of the South Australian Health Commission s fi nancial position, the results of its 
operations and its cash fl ows.

The audit opinion expressed in this report has been formed on the above basis.

Audit Opinion

In my opinion, the fi nancial report presents fairly in accordance with the Treasurer s Instructions 
promulgated under the provisions of the Public Finance and Audit Act 1987, applicable Accounting 
Standards and other mandatory professional reporting requirements in Australia, the fi nancial position 
of the South Australian Health Commission as at 30 June 2005, the results of its operations and its cash 
fl ows for the year then ended.

30 September 2005 K I MacPherson
 Auditor General



124

Department of Health 

South Australian Health Commission

Statement of Financial Performance
For the year ended 30 June 2005

2005
$ 000

2004
$ 000

Revenues from Ordinary Activities

Corporate Policy, Planning and Administration    
Interstate Patient Transfers    
Interest on Loans    
Net Gain from Disposal of Non-Current Assets    
Commonwealth Specifi c Purpose Funds    
Net Revenues from Restructuring    
Total Ordinary Revenues    

Expenses from Ordinary Activities

Funding to Incorporated Health Services    
Funding to Non Government Organisations    
Corporate Policy, Planning and Administration    
Unincorporated Health Services    
Interstate Patient Transfers    
Interest on Loans    
Total Ordinary Expenses    
Net Cost of Services from Ordinary Activities    

Revenues From/Payments to SA Government

South Australian Government Appropriations    
Grants from South Australian Government Agencies    
Net Result from Ordinary Activities    
Total Changes in Equity other than those Resulting from 
Transactions with Owners as Owners    



125

Financial Report

South Australian Health Commission

Statement of Financial Position
As at 30 June 2005

2005
$ 000

2004
$ 000

Current Assets

Cash    
Receivables    
Other    
Total Current Assets    

Non-current Assets

Receivables    
Land and Improvements    
Plant and Equipment    
Total Non-Current Assets    
Total Assets    

Current Liabilities

Payables    
Borrowings    
Employee Benefi ts    
Provisions    
Other    
Total Current Liabilities    

Non-current Liabilities

Payables    
Borrowings    
Employee Benefi ts    
Provisions    
Other    
Total Non-Current Liabilities    
Total Liabilities    
Net Assets    
Equity

Accumulated Surplus/(Defi cit)    
Asset Revaluation Reserve    
Total Equity    
Commitments



126

Department of Health 

South Australian Health Commission

Statement of Cash Flows
For the year ended 30 June 2005

2005
$ 000

2004
$ 000

Cash Flows from Operating Activities

Cash Outfl ows

Funding Allocation to Incorporated Health Services    
Funding Allocation to Other Bodies    
Corporate Policy, Planning and Administration    
Unincorporated Health Services    
Interstate Patient Transfers    
Interest on Loans    
New Loans    
Total Outfl ows from Operating Activities    

Cash Infl ows

Corporate Policy, Planning and Administration    
Unincorporated Health Services    
Interstate Patient Transfers    
Interest on Loans    
Loan Principal Repayments    
SA Government Appropriation    
Commonwealth Specifi c Purpose Funds    
Grants from SA Government Agencies    
Total Infl ows from Operating Activities    
Net Cash from/(Used in) Operating Activities    

Cash Flows from Investing Activities

Purchase of Property, Plant and Equipment    
Proceeds from Sale of Property, Plant and Equipment    
Net Cash from/(Used in) Investing Activities    

Cash Flows from Financing Activities

Repayment of Borrowings    
Net Cash from/(Used in) Financing Activities    

Net Increase/(Decrease) in Cash Held    
Cash at the Beginning of the Reporting Period    
Cash at the End of the Reporting Period    



127

Financial Report

South Australian Health Commission

Notes to and Forming 
Part of the Financial 
Statements
For the year ended 30 June 2005

1 Functions of the South 
Australian Health Commission
The South Australian Health Commission (the 
Commission) is established as a body corporate 
under the South Australian Health Commission Act, 
1976, as amended (the Act). The Commission s 
function is to develop, foster or promote proper 
standards of public and environmental health, 
and to provide advice to the Minister for Health 
and Minister for Disability, and any person or 
body to whom the Minister s powers and/or 
functions have been delegated, on action to be 
taken to prevent or avert the spread of diseases 
that are a danger to the public or on other 
matters relevant to the protection or promotion 
of public health.

(a) Administrative Restructure

The functions of the Commission altered 
signifi cantly during the 2000 2001 fi nancial 
year. Amendments to the South Australian Health 
Commission Act, 1976, proclaimed on 6 July 2000, 
transferred many powers and functions formerly 
with the Commission to the Ministers . The 
Ministers  then delegated many of those 
powers and functions to the Chief Executive 
of the Department.

Powers and functions transferred to the 
Ministers  included those relating to the 
allocation of resources between hospitals, health 
centres and health services incorporated under 
the Act and the requirement to ensure that those 
hospitals, health centres and health services are 
operated in an effi cient and economical manner.

Transactions and balances that were formerly 
recognised by the Commission are now 
recognised by the Department.

Effective 1 July 2004, the Department ceased to 
operate in its current form. On 5 March 2004, 
the Governor established the Department 
for Families and Communities (DFC) and 
declared that for fi nancial accounting and 
reporting purposes the establishment of DFC 
would occur on 1 July 2004. Certain assets and 
liabilities were transferred from the Department 

to DFC effective 1 July 2004. On 10 June 2004, 
the Governor proclaimed that the title of the 
Department would be altered to the Department 
of Health (DH). The proclamation came into 
effect on 1 July 2004.

In addition, the Minister of Health delegated 
to the Minister for Disability and the Chief 
Executive of DFC certain powers under the South 
Australian Health Commission Act, 1976 for three 
incorporated disability health services, namely 
Julia Farr Services, Independent Living Centre 
and the Intellectual Disability Services Council.

2 Summary of Signifi cant 
Accounting Policies
(a) Basis of Accounting

The South Australian Health Commission 
Financial Statements are a general purpose 
fi nancial report that has been prepared on an 
accrual basis pursuant to:

  the Act

  Treasurer s Instructions and Accounting 
Policy Statements promulgated under the 
provision of the Public Finance and Audit 
Act, 1987

  applicable Australian Accounting Standards

  other mandatory professional reporting 
requirements in Australia

Where there are inconsistencies between the 
above requirements, the legislative provisions 
have prevailed.

(b) Services Provided Free of Charge

The fi nancial statements do not refl ect amounts 
for services provided free of charge. Some 
administrative services were provided to the 
Commission by the Department under the 
Memorandum of Understanding (refer Note 
1(a)). The monetary value of these services 
was insignifi cant.

(c) Rounding

All amounts are rounded to the nearest thousand 
dollars and expressed in Australian currency.



128

Department of Health 

3 Commissioners and Related 
Party Information
Commission members who have served during 
the course of the reporting period are:

  Mr James Birch, Chief Executive, 
Department of Health

  Ms Ingrid Haythorpe, Director, Offi ce of the 
Chief Executive, Department of Health

  Mr Brian Dixon, Executive Director, 
Aboriginal Health Division, Department 
of Health

  Professor Brendan Kearney, Executive 
Director, Clinical Systems, Department 
of Health

  Ms Roxanne Ramsey, Executive Director, 
Country Health, Department of Health

  Dr David Filby, Executive Director, 
Health System Improvement and Reform, 
Department of Health

Members of the Commission do not receive any 
remuneration for their services as members.

Members of the Commission use the services of 
the Commission under terms and conditions no 
more favourable than members of the public.



Department of Health
Annual Report
2004 05

  Government of South Australia, September 2005

ISSN 1833-0002

This annual report was prepared by Parliamentary and Executive Services, 
Offi ce of the Chief Executive, Department of Health.

Copies of the annual report can be obtained by contacting the department 
(see contact details below) or via the Department of Health internet site: 
http://www.health.sa.gov.au

Department of Health
11 Hindmarsh Square
Adelaide, South Australia 5000
Telephone (08) 8226 0795
Facsimile (08) 8226 6778

Government of South Australia

Department of Health

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Department of Health
Annual Report 2004   2005

Government of South Australia

Department of Health

Department of Health
11 Hindmarsh Square
Adelaide, South Australia 5000
Telephone (08) 8226 0795
Facsimile (08) 8226 6778

Copies of the annual report can be obtained 
by contacting the department (see contact 
details above) or via the Department of 
Health internet site: www.health.sa.gov.au

D
ep

artm
ent of H

ealth
 A

nnual R
ep

ort 2004   2005




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