$3.7m loss and more challenges ahead

Describing the financial result as disappointing after budgeting to “break even” board chair Christine Holland and chief executive officer said the loss was largely attributable to unforeseen closures of operating theatres during construction work, some staffing over-runs and a failure to achieve cost saving strategies.

Presenting the financial report at the annual meeting director Leanne Williams said depreciation after a revaluation of assets increased the group’s value by more than $3 million and other economic flows pushed the net loss out to $6.2 million.

Despite closure of the theatres for several months total revenues for the 2018-2019 year rose three per cent to $118.1 million.

But Ms Williams said the group would need to focus closely on cash management and its short-term liquidity position as it strives to meet growing needs of the community within a limited resource base.

An increase in employee expenses of more than $8.4 million, or 10.3 per cent on the previous year, was attributed to fixed salary costs while theatres were closed and the impact of a new nurses’ Enterprise Bargaining Agreement that took effect from last April.

The group received additional grant funding from the government related to the EBA.

Ms Holland and Mr Weeks said the board continued to be inspired and humbled by incredible support from the community with individual donations and fund-raising by community groups amounting to $1.35 million.

Construction of a third operating theatre, a much-needed short stay unit for the Emergency Department and a new driveway and extra car parking were major projects undertaken during the year.

Ms Holland and Mr Weeks said the board would continue to work with the government to secure the long-term future.

A new strategic plan covering the period up to 2023 is due to be released later this year, they said.

The WGHG operates the West Gippsland Hospital at Warragul, Cooinda Lodge Warragul and Andrews House Trafalgar aged care facilities, community health centres at Warragul and Rawson and the Warragul Linen Service.