Sunshine Coast Hospital and Health Service Annual Report 2016-2017

Sunshine Coast Hospital and Health Service

Page 2 Sunshine Coast Hospital and Health Service 2016 –2017 Annual Report Page 2

The Sunshine Coast Hospital and Health Service is committed to providing accessible services to Queenslanders from all culturally and linguistically diverse backgrounds. If you have difficulty in understanding the annual report, you can contact us on (07) 5470 6600 and we will arrange an interpreter to effectively communicate the report to you.

© (Sunshine Coast Hospital and Health Service) 2017

This annual report fulfils Sunshine Coast Hospital and Health Service’s reporting requirement to the community and to the Minister for Health and Minister for Ambulance Services. It summarises the Hospital and Health Service’s results, performance, outlook and financial position for 2016-2017.

In particular, the report outlines Sunshine Coast Hospital and Health Service’s performance against objectives identified in the Sunshine Coast Hospital and Health Service Strategic Plan 2016-2020, as well as the Queensland Government’s objectives for the community.

Open data:

We are committed to the Queensland Government’s open data strategy and have published additional information to form part of our 2016-2017 annual report. This information is published at: www.qld.gov. au/data

Sunshine Coast Hospital and Health Service has published the following data on the government’s Open Data website:

• consultancy expenditure

• overseas travel expenditure

• Queensland Language Services Policy.

Licence:

This annual report is licensed by the State of Queensland (Sunshine Coast Hospital and Health Service) under a Creative Commons Attribution (CC BY) 3.0 Australia licence.

CC BY Licence Summary Statement:In essence, you are free to copy, communicate and adapt this annual report, as long as you attribute the work to the State of Queensland (Sunshine Coast Hospital and Health Service).

To view a copy of the licence, visit: http://creativecommons.org/licenses/by/3.0/au/ deed.en

Attribution:

Content from this annual report should be attributed as: Sunshine Coast Hospital and Health Service Annual Report 2016–2017.

ISSN: 2202-5200

Public availability statement:

Copies of this publication can be obtained by:

• visiting www.health.qld.gov.au/sunshinecoast/ annual-reports

• phoning the Communications and Corporate Affairs Unit on (07) 5202 0085

• emailing SC-Communications@health.qld.gov.au

For enquiries or further information please visit our website at www.health.qld.gov.au/sunshinecoast

Feedback can be provided through the Department of Premier and Cabinet’s website Get Involved at www.qld/gov.au/annualreportfeedback

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Commitment to Reconciliation

Collaboration

The Sunshine Coast Hospital and Health Service acknowledges and pays respect to the Traditional Custodians, the Gubbi Gubbi people, their elders, past, present and future on whose lands and waters we provide health services.

Achieving sustainable health gains for Aboriginal and Torres Strait Islander people on the Sunshine Coast and Gympie regions is a core responsibility and high priority for our ealth ervice and is a guiding principle of Making Tracks towards closing the gap in health outcomes for Indigenous Queenslanders by 2033.

VisionWe will:• Keep reconciliation and Closing the Gap as a reference for planning and

decision making.

• Promote the service’s commitment as everyone’s commitment.

We will: • Walk alongside each other• Value family and community• Together build capacity that puts Aboriginal and Torres Strait Islander people

at the centre of decision making• Assist people to make decisions regarding their own health and wellbeing.

IntegrityWe will: • Promote a culturally safe and sensitive approach to service delivery• Recognise and value diversity and how it can enrich our work and community.

We will:• Be a source of inspiration for ourselves and others• Bring our practice wisdom and lifelong learnings to our actions• Be creative, innovative and forever evolving in our wellness and holistic healing• Allow an inclusive environment for people to thrive• Celebrate success.

ResilienceWe will:• Respect Aboriginal and Torres Strait Islander culture and heritage.• Ensure the next footprints are ours for a better future.• Acknowledge that connection to culture and spirituality are key components

through which healing takes place.• Acknowledge the diversity of Aboriginal and Torres Strait Islander cultures

and circumstances.

Statement of

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5 September 2017

The Honourable Cameron Dick MPMinister for Health and Minister for Ambulance ServicesGPO Box 48Brisbane QLD 4000

Dear Minister

I am pleased to present the Annual Report 2016-2017 and financial statements for Sunshine Coast Hospital and Health Service.

I certify that this Annual Report complies with:

• the prescribed requirements of the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2009; and

• the detailed requirements set out in the Annual Report Requirements for Queensland Government agencies.

A checklist outlining the annual reporting requirements can be found at page 118 of this annual report or accessed at http://www.health.qld.gov.au/sunshinecoast/annual-reports/default.asp.

Yours sincerely

Dr Lorraine Ferguson AM

Chair, Sunshine Coast Hospital and Health Board

Letter of compliance

Page 6 Sunshine Coast Hospital and Health Service 2016 –2017 Annual Report

Contents

Letter of compliance ........................................................................5

Table of contents .............................................................................6

Board Chair’s overview ....................................................................7

Sunshine Coast Hospital and Health Service Chief Executive’s overview ............................................................8-9

Year in review ................................................................................10

Timeline of events .........................................................................11

Financial highlights ..................................................................12-13

1 Our organisation ..........................14Our biggest achievement this year..................................................16

SCUH staged opening sequence .....................................................17

SCUH patient activity from opening ................................................18

Accreditation for SCUH ...................................................................18

Our role and functions ...................................................................19

Vision, purpose and values ............................................................19

Our objectives, services and facilities .............................................20

Commitment to the government’s objectives...................................20

Growing population .......................................................................20

Aboriginal and Torres Strait Islander people ....................................21

Health service plan ........................................................................21

Strategic challenges and opportunities ...........................................21

Interpreter services .......................................................................21

Machinery of government ..............................................................21

Sunshine Coast Health Institute .....................................................22

Consumer engagement 2016-2017 ...........................................23-24

2 Our people ...................................25SCUH, a drawcard for specialist talent ............................................25

Clinician involvement in SCUH ........................................................26

Jean Haimes biography ..................................................................27

Leadership development ...............................................................28

Workforce profile ...........................................................................29

Employee recruitment, engagement and retention ..........................35

Work Health Safety and Wellbeing ..................................................36

3 Our performance ..........................37Service Delivery Statement .......................................................37-38

Performance against strategic objectives ........................................39

Spot ON ........................................................................................40

4 Our governance ............................41Hospital and Health Board .............................................................41

Organisational Structure ................................................................42

Board member profiles .............................................................43-46

Board committees .........................................................................47

Executive committees ....................................................................47

Audit and risk committee ...............................................................47

Finance and performance committee ..............................................47

Safety and quality committee .........................................................47

Hospital and Health Service Executive .......................................49-53

Strategic committees .....................................................................54

Ethics and code of conduct ............................................................54

Ethics awareness and fraud control ................................................54

Audit and risk management ...........................................................55

Right to information .......................................................................56

Administrative and functional records management ........................56

5 Our future ....................................57Continued growth for the health service .........................................57

New treatment targets cancer more closely .....................................58

Technology leads to more efficient care ..........................................58

6 Financial statements ....................59Statement of comprehensive income ..............................................61

Statement of financial position ......................................................62

Statement of changes in equity ......................................................63

Statement of cash flows ................................................................64

Notes to the financial statements ..................................................65

Management certificate ..............................................................108

Independent auditor’s report .......................................................109

Glossary .....................................................................................113

Compliance checklist ...................................................................120

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Dr Lorraine Ferguson AM

Sunshine Coast Hospital and Health Board Chair’s overview

It is with an immense sense of pride that I present the Sunshine Coast Hospital and Health Service (the health service) annual report for 2016/17, my second as Chair of the Hospital and Health Board (the Board).

Firstly, I wish to acknowledge the former Health Service Chief Executive Mr Kevin Hegarty, who following a commitment made to his family in 2012, chose not to renew his contract past 30 June 2017. I take this opportunity on behalf of the Board to sincerely thank Kevin for his significant contribution to the health service and the community of the Sunshine Coast over the past 13 and half years. His dedication, commitment and passion for improving the health and wellbeing of the entire community will long be remembered.

Without doubt, the greatest achievement for the health service this year was the successful and safe opening of the Sunshine Coast University Hospital in March 2017. The opening of a tertiary level healthcare facility will have far reaching benefits for the community we serve for decades to come and will ensure our patients receive the highest quality healthcare closer to home.

With the opening of Sunshine Coast University Hospital and subsequent relocation of services, redevelopment activities have commenced at Caloundra Health Service and Nambour General Hospital to ensure the health service is equipped to meet the future health needs of our community. I thank the community for their support during these important changes to the way we deliver health services on the Sunshine Coast. The Board will continue to monitor all governance aspects within the health service to ensure the most efficient and effective use of resources in an environment of increasing demand for public health services.

The Board’s Committees continue to provide high level strategic guidance and support across their domains of Audit and Risk, Finance and Performance and Safety and Quality ensuring transparent and robust governance. I would like to thank the Chairs of the respective committees for their diligence in discharging their responsibilities and providing the Board with the necessary assurance and advice to facilitate sound decision making.

I would also like to acknowledge Professor Karen Woolley whose term expired in May 2017 for her service as a Board member and to welcome Ms Anita Phillips as the new member of the Board. I would like to commend the Executive Leadership Team for their unwavering commitment, diligence and strong leadership over the past year. Their guidance and support enabled staff to meet the many challenges faced and contributed significantly to the successful safe opening of Sunshine Coast University Hospital.

Finally, on behalf of the Board, I take this opportunity to thank all staff across the organisation for their professionalism and dedication to providing our community with high quality healthcare during what has been an exciting but challenging year and look forward to continuing the journey that will see the health service continue to transform and grow into the future.

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Sunshine Coast Hospital and Health Service Acting Chief Executive’s overview

2016-2017 has been a year of extraordinary achievement and change.

After years of preparation and planning, the Sunshine Coast University Hospital opened safely and successfully over a six-week period commencing in March 2017. This followed months of testing the equipment and services in the new building, recruiting more than 1000 people, training our teams, running scenarios, and planning the move of equipment, numerous staff and most importantly patients from our hospitals at Nambour and Caloundra.

Demonstrating the health service’s absolute commitment to the safety of patients and staff, the readiness for moving to the new hospital was tested with greater rigour than any other major hospital project. This included assessment of more than 1800 ‘go/no go’ indicators, covering all departments and units across the health service, and the oversight of the independent Clinical Readiness Advisory Group. This group of senior clinicians reviewed the ‘go/no go’ reports and the views of Service Group Directors to ultimately advise the Health Service Chief Executive of the health service’s readiness to move, independent to the project team. This process gave us a great deal of confidence that we were all ready for the major changes across the whole health service. This included the planned changing roles of Nambour and Caloundra hospitals, underpinned by the support provided by Maleny and Gympie hospitals, and our community health services.

Finally, to emphasise the success of the commissioning, the Australian Council on Healthcare Standards awarded interim accreditation to Sunshine Coast University Hospital on 9 May 2017 against the Australian Commission on Safety and Quality in Healthcare standards. Sunshine Coast University Hospital is the first new hospital to be accredited so close to service commencement.

Before patient care commenced at Sunshine Coast University Hospital, the Sunshine Coast Health Institute (the institute) opened on 9 January 2017, with approximately 1000 TAFE Queensland East Coast, University of Sunshine Coast and The University of Queensland staff and students commencing teaching and studying on the campus. This was the culmination

of many years of collaboration by all parties and the health service to establish this facility and partnership. The partnership will only improve now that the institute is operational, and the focus can turn to developing the health education and research capability on the Sunshine Coast. Disappointingly, despite announcements by the Federal Government during the year, engagement of the new medical school partner remains uncertain due to the need to allocate 15 extra Commonwealth-funded student places. It is hoped that this issue will be resolved through formal advice to the medical school partner early in 2017-2018 so that year one students can commence in time for the 2019 academic year. Along with our Sunshine Coast Health Institute partners, we are fortunate to have strong relationships with a number of other organisations without which we would not be able to provide excellent care. These include long-term partnerships with North Coast Aboriginal Corporation for Community Health, the Primary Health Network, the Sunshine Coast Local Medical Association, Ramsay Health Care and Exemplar Health. Added this year is the Florey Institute, which has come on board with the University of the Sunshine Coast and the health service to enhance our collective research capabilities, especially in neurosciences and mental health.

Our patients and staff also benefit from the substantial support received from Wishlist, our health service foundation, the extraordinary assistance of three auxiliaries at Nambour, Caloundra and Maleny hospitals, and hundreds of volunteers.

The 2016-2017 Annual Report provides evidence that, in addition to completing the most significant transformation of health services on the Sunshine Coast and Gympie, the health service continued to perform, meeting greater demand for services and improving many aspects of our performance. In the last three months of the year activity was higher than expected, with 11 per cent more patients admitted and presenting to emergency departments than the prior period. In addition, despite receiving around 1600 more referrals per month, the waiting list for outpatients has reduced by nine per cent since the start of the year, with a 19 per cent reduction in patients waiting over the recommended times since Sunshine Coast University Hospital opened. Despite a planned reduction

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Scott Lisle - Acting Health Service Chief Executive

in elective surgery during the Sunshine Coast University Hospital move period, the health service ended the year with 23 patients waiting outside the recommended period for elective surgery. Due to greater demand, emergency access performance deteriorated in the last few months of the year. Many changes are being implemented and this aspect of our performance is expected to improve during the next year.

I would like to thank all staff across the organisation for their professionalism, enthusiasm, commitment and resilience during the busiest year in the history of the health service. Special thanks also go to my colleagues on the Executive Leadership Team and the senior clinicians and other staff who all ensure that this health service continues to deliver for our communities.

I also take this opportunity to acknowledge the strategic direction and governance provided by the Hospital and Health Board, under the leadership of Dr Lorraine Ferguson AM.

Finally it is appropriate to acknowledge the contribution of our former chief executive, Kevin Hegarty, who led us through almost 14 years, finishing in what was one of our most successful. Kevin put this health service on very strong foundations that will help us continue our journey to provide more complex care and continue to deliver health and wellbeing through exceptional care.

Page 10 Sunshine Coast Hospital and Health Service 2016 –2017 Annual Report

Year in review

++

Infographic 1: Sunshine Coast Hospital and Health Service year in review 2016 - 2017.

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Infographic 1: Sunshine Coast Hospital and Health Service year in review 2016 - 2017.

June

July

Nov

Aug

Feb

Jan

Dec

Mar

April

May

June

2016

2017

Nurse navigator roles were implemented in Gympie and Maleny hospitals

Our Mental Health and Addiction Services lead the way developing a Mental Health Resources 4 Carers website

Gympie Hospital Director of Nursing Nicole White awarded the Dr HH (Barny) Moy Memorial Medal. The health service also recognised a collective length of service by staff of more than 8700 years Paediatric Audiologist Tania Sargent was nominated by medical students for the 2016 Teaching Award for Allied Health/Nursing education. The Geriatric Emergency Department Innovation (GEDI) team at Nambour General Hospital won the 2016 Premier’s Awards for Excellence in Customer Service.Three nurses awarded Outstanding Achievement in Nursing and Emerging Nurse Leader Awards at the 2016 Association of Queensland Nurse Leaders conference.

Gympie Hospital received six medical students for 12 months under the Griffith University Rural Longlook program.

2000 community members were given a sneak peek of Sunshine Coast University Hospital prior to its opening.

Four operational support service staff at Nambour General Hospital were recognised in the State Strategic Operational Services 2016 Excellence Awards.

Caloundra Health Service celebrated 50 years of caring for the community.

Gympie Hospital CT service commences.

The Sunshine Coast Health Institute hosted its first conference – the Queensland Critical Care Research Forum.

About 60 staff walked, jogged or ran the first SCUH2SCHI fun run.

Perioperative nurses Kim Armstrong and Julie-Ann Nicholls were awarded the Excellence in Perioperative Nursing and Novice awards at the Perioperative Nurses Association Queensland conference.

Dietitian Catherine Mc Farlane was awarded the Nutrition and Dietetics Emerging Researcher Award at the Dietitian’s Association of Australia’s National Conference.

Gympie hospital began a pilot for a diabetes education home service.

Sunshine Coast University Hospital opens to patients.

Child Health Access service celebrates 3rd birthday

Radiation oncology service begins at Sunshine Coast University Hospital.

Sunshine Coast University Hospital receives accreditation.

Technical completion awarded for Sunshine Coast University Hospital

Commercial acceptance awarded for Sunshine Coast University Hospital.

Sunshine Coast Health Institute opened successfully.

Official opening of Sunshine Coast University Hospital.

Infographic 2: Sunshine Coast Hospital and Health Service timeline of events 2016 - 2017.

Page 12 Sunshine Coast Hospital and Health Service 2016 –2017 Annual Report

Financial highlights

The Sunshine Coast Hospital and Health Service (”the health service”) reported total comprehensive income of $18.9M for the year incorporating a net revaluation increment of $11.6M

on land and buildings and an underlying operating surplus of $7.3M (from continuing operations).

The operating surplus result is an improvement of $6.3M from FY16 ($1.0M surplus) achieved from an operating revenue base of $997.4M. Key contributing factors include a combination of prudent fiscal management and non-cash revenue gains (predominantly land and building revaluations). The result

reflects the underlying delivery of agreed major services and is considered a good result for the health service, particularly given the complexities involved in the commissioning and opening of the Sunshine Coast University Hospital during the 2016-17 financial year.

Total operating income for 2016-17 was $997.4M, up 21% from 2015-16 ($826.6M), with the majority of this increase relating to additional activity purchased by the Department of Health associated with the opening of the Sunshine Coast University Hospital.

The following chart shows the major sources of total operating income by percentage, with the Queensland State Government (predominately the Department of Health) contributing the majority of the total source of funds.

Total operating expenditure for 2016-17 was $990.1M (averaging $2.7M a day), up $164.4M or 19% from 2015-16 ($825.7M). Major drivers of the increase include an 11% increase in delivered activity, combined with additional operating requirements of the Public, Private Partnership (PPP)

arrangement with Exemplar Health for the Sunshine Coast University Hospital. Chart 2 shows the breakdown of operating expenditure with labour and employment related expenses being the largest component.

High level operating result for the year ended 30 June 2017 $’000’s

Operating income 997,408

Operating expenditure (990,138)

Net surplus from operations 7,270

Operating income

Operating expenditure

Ope

ra

ting income

Commonwealth funding 27%

User charges 6%

Grants and contributions 2%

Other contributions 1%

Queensland State funding 64%

Total operating income = $997,408,000

Table 1: High level operating result for the year ended 30 June 2017

Chart 1: Operating income 2016 - 2017

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Total assets increased by $1.6B in 2016-17 to just over $2.0B ($407.5M in 2015-16) following the opening of the new Sunshine Coast University Hospital in March 2017 which saw approximately this value of assets being transferred to the HHS, including the main hospital building, car parks, major medical equipment, and fixtures and fittings.

Cash and InvestmentsAt balance date, the health service had $120.5 million in cash and investments. This balance includes the unspent portion of Stage 2 funding received for the information and communications technology assets for the Sunshine Coast University Hospital and the timing of payables including payroll. Depreciation expenditure is not cash funded however investment in non-current assets is.

Financial Sustainability RatiosCurrent ratio: At 30 June 2017, the health service had a current ratio of 1.40. This means for every $1.00 of current liabilities payable the health service held $1.40 in cash and receivables.

Average number of day’s cash available: At 30 June 2017, the SCHHS has cash available to cover 46.4 days of operating expenditure. The current target adopted by the health service is to have cash holdings equivalent to at least 14 days of operating cash outflows.

Operating surplus ratio —Net surplus/total revenue: As at 30 June 2017, the operating ratio was a positive 0.73 (extent to which operating revenue covers operating expenditure)

Future Financial OutlookThe health service is committed to providing better health outcomes for its community through redesign and innovation across the health service but also investment in its people and infrastructure. Financial year 2017-18 will be fiscally challenging for the health service with a strong focus on efficiency, particularly with the specific operational requirements of the new Sunshine Coast University Hospital and managing a larger cost base.

High level balance sheet as at 30 June 2017 $’000’s

Current assets 146,272

Non-current assets 1,892,032

Current liabilities (104,252)

Non-current liabilities (615,674)

Net assets (equity) 1,318,378

Total operating expenditure = $990,138,000

Chart 2: Operating expenditure 2016 - 2017

Table 2: High level balance sheet as at 30 June 2017

Ope

ratin

g expenditure

Supplies and services - 31%

Depreciation and amortisation - 4%

Interest expense - 2%

Other expenses - 1%

Labour and other employment related costs - 62%