Public hospital financial performance and sustainability
Overview
The financial viability of its public hospital system is one of the state’s key risks. Victoria’s public hospitals had an annual turnover in excess of $7 billion in 2005–06, and managed assets totalling some $7 billion at June 2006. We have undertaken an assessment of Victoria’s public hospitals’ financial performance and sustainability, using indicators of short-term solvency and longer-term viability.
Since 2002–03, a period of significant financial challenge for public hospitals, the financial performance and position of public hospitals has generally improved. Nevertheless, several significant indicators of continuing financial challenge remain.
The Department of Human Services and public hospital boards share the responsibility for financial performance and management within the sector. While they have recognised the need to act on the financial challenges, and have done so, there remains the need to continue to build on and expand existing initiatives to establish greater financial sustainability across the sector.