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VHA statement on VAGO report: Public Hospitals 2014–15 Audit Snapshot

Posted 12 November 2015

Thursday 12 November 2015

The below can be attributed to Tom Symondson, CEO Victorian Healthcare Association

Victorian hospitals run very efficiently while meeting the health needs of Victorians. In fact of the $10.9 billion received by the government in 2014-15 to deliver healthcare services, hospitals managed a very modest operating surplus of $61 million, which is about 0.5% of their operating revenue received from government.

The $700 million deficit reported by the Acting Auditor-General is a consequence of comparing all expenses (including capital depreciation) with operating revenue, which does not include funding received by government for health capital.

Capital funding is provided separately, however as the Acting Auditor-General notes, the ability for hospitals to fund depreciation as well as maintain and replace medical equipment and infrastructure to meet growing demand is a significant challenge.

Better health equipment and infrastructure creates more efficiencies and ultimately helps to improve the quality of care our hospitals deliver.

That is why we support the Government’s intention to develop a 20-year health capital and service plan, which we hope will transparently set out a plan to allocate and deliver health capital based on need.

Media contact: Rachel White – 03 9094 7777 rachel.white@vha.org.au

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