Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
National Health Performance Authority—Report for 2013-14


Download PDF Download PDF

Driving health system improvements through independent reporting

respect

independence

excellence

www.nhpa.gov.au

ANNUAL REPORT 2013-14

insight

www.nhpa.gov.au

ANNUAL REPORT 2013-14

Driving health system improvements through independent reporting

respect

independence

excellence

insight

If you have any queries about this annual report please contact:

National Health Performance Authority Communications Director GPO Box 9848 Sydney, NSW 2001 Australia Email: nhpaadmin@nhpa.gov.au Telephone: +61 2 9186 9210 Fax: +61 2 6289 9355 ABN: 19 620 357 003 www.nhpa.gov.au

© National Health Performance Authority 2014

The National Health Performance Authority licenses use of this report under Creative Commons Attribution-Non Commercial-No Derivatives Licence 3.0, Australia and the terms of this notice.

You are permitted to make fair use of the report consistent with the terms of the licence. You must not make use of the report in a misleading or deceptive manner or in a manner that is inconsistent with the context of the report.

Permissions beyond the scope of the licence may be available at nhpaadmin@nhpa.gov.au

Disclaimer This report is produced for health research, health care and health advocacy purposes. This report is not intended to provide guidance on particular health care choices. You should contact your medical advisors on particular health care choices.

Print ISSN: 2202-8897 Online ISSN: 2202-8900 Print ISBN: 978-1-74186-194-5 Online ISBN: 978-1-74186-195-2 Publications approval number: 10920

Suggested citation: National Health Performance Authority 2014, Annual Report 2013-14.

Further copies of this document can be downloaded from www.nhpa.gov.au

Published October 2014.

Please note that there is the potential for minor revisions of this report. Please check www.nhpa.gov.au for any amendments.

National Health Performance Authority | Annual Report 2013-14 i

Letter of transmittal Dear Minister

I am pleased to present the annual report of the National Health Performance Authority for the financial year ended 30 June 2014, pursuant to section 111 of the National Health Reform Act 2011.

This report has been prepared in accordance with the requirements for annual reports approved by the Joint Committee of Public Accounts and Audit under sections 63 and 70 of the Public Service Act 1999, which requires this annual report to be given to the Minister for presentation to the Parliament on or before 31 October 2014.

This report also contains information as required under other applicable legislation, including the Financial Management and Accountability Act 1997, the Freedom of Information Act 1982 and the Work, Health and Safety Act 2011.

I certify that I am satisfied the National Health Performance Authority has prepared fraud risk assessments and fraud control plans and has in place appropriate fraud prevention, detection, investigation, reporting and data collection procedures and processes that meet the specific needs of the agency, and comply with the Commonwealth Fraud Control Guidelines.

Yours sincerely

Dr Diane Watson Chief Executive Officer National Health Performance Authority

26 September 2014

ii National Health Performance Authority | Annual Report 2013-14

Letter of transmittal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .i

List of figures and tables . . . . . . . . . . . . . . . . . . . . . . . . . . . iv

About the Performance Authority . . . . . . . . . . . . . . . . . . . v

2013-14 at a glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .viii

Section 1: Agency overview 1

Role and function . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Outcome and objectives for 2013-14 . . . . . . . . . . . . . . . . . . 4

CEO review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Section 2: The Authority 9

Message from the Chairman . . . . . . . . . . . . . . . . . . . . . . . . 10

Authority members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Member profiles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Advisory committees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Section 3: Report on performance 23

Performance against Portfolio Budget Statements 2013-14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Performance Authority reports and products 2013-14 . 28 Performance against strategic objectives . . . . . . . . . . . . . . 30

Performance reporting . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Communications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Performance and Accountability Framework . . . . . . . . . 36 Engagement and consultation . . . . . . . . . . . . . . . . . . . . 37

Data and information management . . . . . . . . . . . . . . . . 38

Organisational capability and governance . . . . . . . . . . . 40

Table of contents

National Health Performance Authority | Annual Report 2013-14 iii

Section 4: Management and accountability 43

Corporate governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

External scrutiny . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

Management of human resources . . . . . . . . . . . . . . . . . . . 48

Overview of financial performance . . . . . . . . . . . . . . . . . . . . 53

Mandatory reporting information . . . . . . . . . . . . . . . . . . . . . 54

Section 5: Financial statements 57

Independent auditor’s report . . . . . . . . . . . . . . . . . . . . . . . . 58

Statement by the Chief Executive Officer and Chief Financial Officer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

Financial statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

Notes to financial statements . . . . . . . . . . . . . . . . . . . . . . . . 70

Appendices 123

Appendix 1: Acknowledgements . . . . . . . . . . . . . . . . . . . 124

Appendix 2: Conferences and events . . . . . . . . . . . . . . . . 126

Appendix 3: Resource summaries . . . . . . . . . . . . . . . . . . 127

Appendix 4: List of requirements . . . . . . . . . . . . . . . . . . . 129

Acronyms and abbreviations . . . . . . . . . . . . . . . . . . . . 133

Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135

Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139

Table of contents

iv National Health Performance Authority | Annual Report 2013-14

List of figures and tables Figure 1: National Health Performance Authority corporate structure . . . . . . . . . . . . . . . 3

Figure 2: Medicare Local peer group presentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Figure 3: Medicare Local unique health profile presentation . . . . . . . . . . . . . . . . . . . . . 34

Figure 4: The Performance Authority committee relationships . . . . . . . . . . . . . . . . . . . 45

Table 1: Authority meetings 2013-14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Table 2: Qualitative deliverables for Portfolio Budget Statement Program 1.1 . . . . . . . 26

Table 3: Qualitative key performance indicators for Portfolio Budget Statement Program 1.1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Table 4: Employment classification and overview of Performance Authority staff at 30 June 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

Table 5: Employment classification and overview of Performance Authority staff at 30 June 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

Table 6: Australian Public Service salary ranges at 30 June 2014 . . . . . . . . . . . . . . . . 51

Table 7: National Health Performance Authority presentations at stakeholder events, meetings and conferences in 2013-14 . . . . . . . . . . . . . . . . . . . . . . . 126

Table 8: National Health Performance Authority’s Resource Statement 2013-14 . . . 127

Table 9: National Health Performance Authority’s expenses and resources by outcome 2013-14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128

National Health Performance Authority | Annual Report 2013-14 v

About the Performance Authority About the Performance Authority provides summary information on the agency’s role and functions, vision, mission, values and journey during 2013-14.

Who we are The National Health Performance Authority (the Performance Authority) is an independent agency established under the National Health Reform Act 2011 to report regularly on the comparable performance of Local Hospital Networks, public and private hospitals, primary health care organisations and other bodies that provide health care services. The Performance Authority began operating in 2012.

What we do The Performance Authority reports on nationally consistent, locally relevant and comparable information about Australia’s health care organisations. Our reports provide credible, impartial and accessible information enabling Australians to compare how their local health care organisations are performing against similar organisations across the country. By reporting at the local level, our reports expose unwarranted variation in performance, in some instances for the first time. This level of analysis sheds light on the complex interplay of different points of the health system, and of non-health factors such as geography and socioeconomic status on health outcomes.

Our principal outputs are reports delivered in the form of print documents and information updates to the MyHospitals and MyHealthyCommunities websites. Our Hospital Performance reports focus on providing information on public and some private hospitals. Our Healthy Communities reports focus on Medicare Locals and other organisations that provide health care services to the community. We report information against performance indicators identified in the Council of Australian Governments’ Performance and Accountability Framework 2011.

vi National Health Performance Authority | Annual Report 2013-14

About the Performance Authority

Our mission is to monitor and report on the comparable performance of health care organisations to stimulate and inform improvements in the Australian health system, to increase transparency and accountability and to inform consumers.

Our mission

Our vision is to give the Australian community access to timely, impartial and user-friendly information on the comparable performance of health care organisations and local health care systems.

The Performance Authority will be recognised nationally and internationally for excellence in the provision of information about local health care systems and the equity, efficiency and effectiveness of health care organisations.

Our vision

We demonstrate the following values in our interaction with stakeholders and the community:

Independence - The Performance Authority is independent and reports information impartially.

Excellence - The Performance Authority is committed to producing timely, accurate and user-friendly information that compares and tracks performance of health care organisations over time.

Respect - The Performance Authority uses respectful and fair approaches to consult with stakeholders and compare performance.

Insight - The Performance Authority uses sound judgement to produce locally relevant and comparative information.

Our values

National Health Performance Authority | Annual Report 2013-14 vii

Our journey In December 2012, the Performance Authority began producing nationally consistent, locally relevant and independent performance reports on Australia’s health care services.

Much of the work undertaken by the Performance Authority has not previously been carried out in Australia. Establishing a strong foundation for meaningful reporting by the agency requires extensive planning and active involvement by a range of stakeholders, including state and territory governments that collect and report data, and the Australian Government, which also collects a range of data. The Performance Authority works with jurisdictions, Australian Government agencies, health system managers, clinicians and consumer representatives to ensure efficient processes are in place to support access to nationally consistent health and health services data.

We will continue working with these stakeholder groups and learning from international best practice to develop and improve methodologies for the interpretation and presentation of information on the comparable performance of health care organisations and local health systems.

Our longer-term objective is to inform, and also to act as a catalyst for change, providing insights that drive health system improvements.

In this report, the term ‘the Performance Authority’ refers to the agency and ‘the Authority’ refers to the governing members.

About the Performance Authority

viii National Health Performance Authority | Annual Report 2013-14

2013-14 at a glance

12 June 2014 Standing Council on Health agreed to the Performance Authority’s Data Plan 2014-15 with minor amendments

29 May 2014

Release of Hospital Performance: Time patients spent in emergency departments in 2012 and 2013. Update to MyHospitals website: Time spent in emergency departments, elective surgery waiting times, and emergency department waiting times by urgency category

1 May 2014

Determination under section 24(1) of the Public Service Act 1999 renewed

27 March 2014 Release of Healthy Communities: Immunisation rates for children in 2012-13

13 March 2014 Release of Hospital Performance: Healthcare-associated Staphylococcus aureus bloodstream infections in 2012-13

21 January 2014 Advisory Committee on Private Hospitals convened

12 December 2013

Release of Healthy Communities: Avoidable deaths and life expectancies in 2009-2011. Update to MyHealthyCommunites website: GP-type service use, after-hours services, and allied health and specialist service use

28 November 2013 Release of Hospital Performance: Cancer surgery waiting times in public hospitals in 2011-12

7 November 2013

Release of Hospital Performance: Length of stay in public hospitals in 2011-12

Release of Healthy Communities: Selected potentially avoidable hospitalisations in 2011-12

24 October 2013

Release of Healthy Communities: Tobacco smoking rates across Australia, 2011-12

Release of Healthy Communities: Overweight and obesity rates across Australia, 2011-12

25 July 2013

Update to MyHospitals website: Time spent in emergency departments, elective surgery waiting times, and emergency department waiting times by urgency category

2014

2013

Section 1:

Agency overview

This section presents an overview of the agency’s role and functions, establishment and organisational structure, and outcome and objectives for 2013-14. The Review by the CEO summarises the agency’s strategic priorities, significant issues and major developments for the agency in 2013-14, and presents an outlook for 2014-15.

2 National Health Performance Authority | Annual Report 2013-14

Role and function

Establishment of the Performance Authority The National Health Performance Authority (the Performance Authority) was established in October 2011 under the National Health Reform Act 2011 (the Act), and is a prescribed agency under the Financial Management and Accountability Act 1997 (FMA Act). It is also subject to the Auditor-General Act 1997, and its staff are employees of the Australian Public Service under the Public Service Act 1999 (PS Act).

The main function of the Performance Authority is to monitor and report on the performance of the following:

(a) Local hospital networks

(b) Public hospitals

(c) Private hospitals

(d) Primary health care organisations

(e) Other bodies or organisations that provide health care services.

The foundation of the Performance Authority’s work is the Performance and Accountability Framework (the Framework) that was endorsed by the Council of Australian Governments (COAG) in December 2011. The Framework identifies performance measures of safety and quality, access and efficiency, and financial performance for hospitals and other health care organisations.

Our reports are split into two streams - Hospital Performance and Healthy Communities. The reports we publish provide, often for the first time, comparable health performance information at a local level across Australia. By reporting in this way, the Performance Authority aims to empower clinicians and service providers to drive improvements, and increase transparency and accountability within the health system.

National Health Performance Authority | Annual Report 2013-14 3

Organisational structure The Performance Authority is led by a Chief Executive Officer (CEO) as the head of the agency.

The agency’s business units include a Hospital Performance Group, Healthy Communities Group, Information Management and Strategy Unit, Communications Unit, Corporate Services Unit, Executive Unit and Finance Unit.

… the Performance Authority aims to empower clinicians and service providers to drive improvements, and increase transparency and accountability within the health system.

Agency overview: Role and function

The CEO is supported by an Executive Committee comprising the Executive Director of the Hospital Performance Group, Executive Director of the Healthy Communities Group, Chief Financial Officer, Director of Information Management and Strategy, Director of Communications, Director of Corporate Services and Director of the Executive Unit.

Figure 1: National Health Performance Authority corporate structure

Executive Director, Healthy Communities

Director, Information Management and Strategy

Chief Financial Officer

Director, Executive Unit

Executive Director, Hospital Performance

Director, Communications

Director,

Corporate Services

CEO

4 National Health Performance Authority | Annual Report 2013-14

Outcome and objectives for 2013-14 The Performance Authority’s work in the reporting period focused on the following outcome as identified in the Portfolio Budget Statements 2013-14:

Contribute to transparent and accountable health care services in Australia, including through the provision of independent performance monitoring and reporting; the formulation of performance indicators; and conducting and evaluating research.

The Portfolio Budget Statements identify three program objectives for the Performance Authority in 2013-14:

• Produce health system performance reports

• Undertake comprehensive planning

• Improve access to performance information.

Further information about the Performance Authority’s achievements against the Portfolio Budget Statements outcome can be found in Section 3: Report on performance, with reference to the following six strategic objectives as identified in the Strategic Plan 2012-15.

1. Performance reporting Regularly monitor and report timely, accurate and locally-relevant information that compares and tracks performance of health care organisations and local health care systems.

2. Communications Design and disseminate comparable information to stimulate and inform efforts to improve the health system, improve transparency and accountability, and inform consumers.

3. Performance and Accountability Framework Regularly review and assess the Performance and Accountability Framework to ensure that it remains relevant to the needs of the community.

4. Engagement and consultation Build and maintain relationships with stakeholders to support the Authority’s role and enhance its impact.

5. Data and information management Develop effective processes and tools to support data availability, collation, analyses and information management.

6. Organisational capability and governance Pursue excellence in the governance, management and operations of the Performance Authority.

National Health Performance Authority | Annual Report 2013-14 5

CEO review The Performance Authority has had an exciting and productive second year reporting on the performance of health care organisations across Australia.

In 2013-14, we increased the number of reports released, providing Australians with information on nine additional performance measures not previously reported at local levels, and on performance over time in relation to measures previously reported.

This information is valuable as it allows hospitals, primary health care organisations and local communities to compare their performance with that of their peers across the country and across time. In doing so, our reports reveal where efforts to improve care will yield the highest return.

The Performance Authority has publicly named local communities where improvements in immunisation rates would almost certainly prevent sickness, hospitalisation or premature death. We have named local communities where avoidable hospitalisations for the treatment of chronic health conditions are at least 10 times higher than in other similar communities, and named hospitals with the longest waiting times for life-saving surgery or the highest rates of serious yet preventable infections. We have also identified local communities and hospitals where performance in these areas is exemplary.

Dr Diane Watson Chief Executive Officer

This kind of reporting on variations in service delivery and costs is just the first step in Australia’s move to unlock the power of data to drive improvements in quality, safety and efficiency.

6 National Health Performance Authority | Annual Report 2013-14

Other new information with a particularly strong potential to drive change was our report that revealed marked variation in the average length of time patients were spending in hospital after being admitted for any of 16 common procedures or medical conditions. Together, these conditions account for almost 10% of hospital bed supply nationally. In the case of hip replacements, the report showed that the average length of stay varied across major metropolitan hospitals - from fewer than four days, up to 15 days. These findings are significant given the high cost of acute care hospital beds, which for hip replacement patients can easily exceed a few thousand dollars for each extra day.

This kind of reporting on variations in service delivery and costs is just the first step in Australia’s move to unlock the power of data to drive improvements in quality, safety and efficiency. The Performance Authority’s reports now generate significant attention - our reports generated more than 1,200 media items in 2013-14 and our new MyHealthyCommunities website was cited as “one of the most useful health innovations in 2013” by the Australian Associated Press. The first step is to reveal opportunities in local communities; the next step is to track whether efforts to improve are making a difference.

The Performance Authority has begun reporting on shifts in performance across time. In March 2014, we released our second reports on child immunisation, and healthcare-associated Staphylococcus aureus bloodstream infections. In May 2014, we released our second report on time spent in emergency departments. Together, information in these reports features local areas or hospitals where performance has markedly improved or where efforts are still required. In May 2014, it was exciting to see that the emergency department that had most improved over time was the major metropolitan hospital with the lowest performance in our first report.

Agency overview: CEO review

National Health Performance Authority | Annual Report 2013-14 7

The value of our information at driving improvements is directly related to the substantial engagement activities we undertake with health care professionals and consumers. The contribution of these individuals has ensured that the content and presentation of our reports are appropriate for target audiences. I look forward to continued engagement with these stakeholders in 2014-15.

Outlook for 2014-15 Looking forward, the Performance Authority will continue to be guided by the priorities of health ministers, the wisdom of Authority members and our Strategic Plan 2012-15. In the year ahead we will work on a number of key areas as articulated in the Message from the Chairman (see page 10).

I would like to acknowledge the contribution of the Authority, our committee members and staff in ensuring the organisation continues to meets its objectives and remains a valued resource in driving health improvements in Australia.

Dr Diane Watson Chief Executive Officer

September 2014

Agency overview: CEO review

8 National Health Performance Authority | Annual Report 2013-14

Obesity crisis exposed

Agency overview: CEO review

Healthy Communities: Overweight and obesity rates across Australia, 2011-12 Report released 24 October 2013

• Almost 300 media stories were published across print, radio, TV and online over the 30-day period after release

• Front page of one of Australia’s most read newspapers - Sydney Morning Herald

• Audience reach of over 5.3 million over 30 days.

The impact

What’s next?

The Council of Australian Governments has set a target by 2018 to increase the proportion of the population in the healthy weight range by 5 percentage points over the 2009 baseline, from 37% to 42%.

10.8 million Australians overweight or obese

Almost 80% overweight or obese in some communities

overweight or obese 50% in wealthy urban communities

Typically higher rates are seen in

lower socioeconomic or more remote areas

Report findings

Section 2:

The Authority

This section provides a report on 2013-14 by the Authority’s Chairman, as well as profiles for Authority members. This section also provides an overview of the roles, responsibilities and membership of the Authority’s advisory committees - the Jurisdictional Advisory Committee, the Primary Health Care Advisory Committee, the Advisory Committee for Private Hospitals and the Performance Assessment Working Group.

10 National Health Performance Authority | Annual Report 2013-14

Message from the Chairman It is with pleasure that I present the National Health Performance Authority annual report for 2013-14.

The Performance Authority delivered on its statutory responsibility to publicly report on the performance of hospitals and primary health care organisations by issuing 12 reports in the year ended June 2014.

In the Australian health landscape there is a need for, and a call for, access to reliable longitudinal data for benchmarking purposes. The Performance Authority takes great care in developing and implementing approaches that support benchmarking of similar organisations and shifts in their performance across time.

By providing independent, relevant, comparable and timely information on the performance of health care organisations, our reports have highlighted where improvement in the Australian health care system is possible. This was highlighted in our report on the time patients spent in emergency departments in 2012 and 2013, where significant improvement was reported by the lowest performing major metropolitan hospitals, despite an increase in their patient presentations during the period.

As well as illuminating shifts in performance across time, one of our objectives is to generate discussion within the health care community and the Australian public about priorities for improvement in performance.

The Authority was encouraged to see the intense level of media coverage and public debate following the release of our reports on variation in local rates of smoking and obesity, and immunisation rates of Australian children.

Patricia Faulkner, AO Chairman

By providing independent, relevant, comparable and timely information on the performance of health care organisations, our reports have highlighted where improvement in the Australian health care system is possible.

National Health Performance Authority | Annual Report 2013-14 11

The Authority was also delighted to see a marked increase in the voluntary participation of private hospitals in its performance reporting associated with the release of reports on public hospitals. In our most recent report on healthcare-associated Staphylococcus aureus bloodstream infections, we published data on the MyHospitals website on 132 private and 586 public hospitals.

In terms of priorities for improvement, the Authority undertook important foundation work to develop a process, agreed to by all health ministers, to assess poor performance of public hospitals against select hospital level indicators. This is a prelude to a future body of work to establish criteria for the assessment of organisation-wide performance.

In the year ahead, the Authority will continue to focus on a number of key areas in our efforts to drive health care improvements, in an evolving health care environment:

• Reporting performance about Medicare Local catchments and preparing to transition to reporting on the performance of Primary Health Networks

• Reporting on comparable performance across time to identify where improvements have been made and where effort is still required

• Increasing the private hospital sector’s participation in public reporting

• Implementing nationally-agreed processes for assessing high and poor performance for Local Hospital Networks and public hospitals

• Reviewing Performance and Accountability Framework indicators that can better inform assessments of health system performance, especially at the intersection of acute and primary health care

The Authority: Message from the Chairman

12 National Health Performance Authority | Annual Report 2013-14

• Engaging with stakeholders to respond to the Australian Government’s proposal to establish a health productivity and performance commission.

We will also work in cooperation with other agencies to create the Government’s proposed health productivity and performance commission.

I would like to acknowledge members of the Authority for their insightful contribution to the reports of the Performance Authority. I also extend my appreciation to members for their role in chairing committees of the Authority, including the Jurisdictional Advisory Committee, the Primary Health Care Advisory Committee and the Advisory Committee on Private Hospitals.

I would also like to acknowledge the expertise of the Performance Authority staff, who work tirelessly to ensure reports produced are of the highest calibre.

Patricia Faulkner, AO Chairman

September 2014

The Authority: Message from the Chairman

National Health Performance Authority | Annual Report 2013-14 13

The Performance Authority is governed by seven Authority members, as prescribed by the National Health Reform Act 2011 (the Act).

The Authority is primarily responsible for the proper, effective and timely performance of the Performance Authority’s functions. In addition to setting and monitoring the agency’s strategic direction, members contribute their expert knowledge of Australia’s health care system to the development and dissemination of the Performance Authority’s reports.

Members include a chairman, deputy chairman and five other members. Members are appointed on a part-time basis by the Australian Government Minister for Health, in agreement with the Prime Minister and the first ministers of states and territories.

Authority members The Authority chairman and deputy chairman were appointed for a period of five years until 31 October 2016. Four additional Authority members were appointed for a period of five years until 31 December 2016. A seventh member was appointed on 3 June 2013 for a period of five years.

Authority members met on the following dates during the reporting period:

• 2 August 2013

• 17 September 2013

• 11 October 2013

• 27 November 2013

• 7 February 2014

• 28 March 2014

• 30 May 2014.

Table 1: Authority meetings 2013-14

Member Meetings eligible Meetings attended

Patricia Faulkner (Chairman) 7 7

John Walsh (Deputy Chairman) 7 7

David Filby 7 7

Claire Jackson 7 6

Michael Reid 7 4

Paul Torzillo 7 4

Bryant Stokes* 0 0

* Bryant Stokes took leave of absence effective 18 April 2013.

14 National Health Performance Authority | Annual Report 2013-14

In 2013-14 the Authority focused on the following:

• Finalisation of the Three-Year Rolling Data Plan 2014-15 to 2016-17

• Continuing development of the agency’s forward Reporting Plan and keeping ministers abreast of reporting intentions

• Oversight of the impartial portrayal of performance information in public reports

• Development of communication strategies for publications and strategies for stakeholder engagement

• Development of recommendations to ministers regarding guidelines and process for assessing different levels of performance

• Considering processes for reviewing the Performance and Accountability Framework.

The Authority established two new advisory committees in 2013-14 to advise it on matters relating to the performance of its functions. The Advisory Committee on Private Hospitals and the Performance Assessment Working Group provided advice to the Authority in relation to reporting on private hospitals and performance of public hospitals. An overview of these committees is provided later in this section (pages 19-21).

The Authority: Authority members

National Health Performance Authority | Annual Report 2013-14 15

Member profiles Ms Patricia Faulkner, AO Chairman

Ms Patricia Faulkner is the Chairman of the Telecommunications Industry Ombudsman Board, the National Health Performance Authority, and Jesuit Social Services, Deputy Chairman of St Vincent’s Healthcare Australia, and a Commissioner of the Commonwealth Grants Commission.

She has served on, and chaired, several boards including the Prime Minister’s Social Inclusion Board and the Peter MacCallum Cancer Institute Board.

Ms Faulkner has held health and social policy roles, including Secretary for the Department of Human Services, Victoria, where she was instrumental in establishing the National E-Health Transition Authority and was its first Chairman.

More recently, Ms Faulkner was a partner at KPMG, leading the firm’s global health care business and the state government sector.

In 2008 she was appointed a Member of the Order of Australia for her services in health and human services.

Mr John Walsh, AM Deputy Chairman

Mr John Walsh has expertise in the areas of social policy and funding across accident compensation, health and disability.

Mr Walsh is a board member of the National Disability Insurance Agency, having previously been a Productivity Commissioner during 2010 and in the reference committee which recommended a national disability insurance scheme.

Mr Walsh has also chaired the independent panel overseeing Caring Together: A Health Action Plan for NSW, and has held memberships of several boards including the NSW Motor Accidents Authority and the NSW Home Care Service.

Mr Walsh was a partner at PricewaterhouseCoopers Australia, where he has worked for 20 years. In 2011, Mr Walsh was appointed a Member of the Order of Australia and also received the Prime Minister’s Award for outstanding service to the disability sector.

16 National Health Performance Authority | Annual Report 2013-14

Dr David Filby, PSM

Dr David Filby has worked extensively across the Australian health care landscape in significant policy and executive roles. He is currently a part-time consultant for SA Health and the Australian Health Ministers’ Advisory Council, and has recently completed a six-year term as Chairman of the Council’s National Health Information Standards and Statistics Committee.

Dr Filby’s professional positions have included senior national health policy roles and significant placements in Queensland and South Australia. He was previously SA Health Executive Director, Policy and Inter-government Relations and Queensland Health Deputy Director-General, Policy and Outcomes.

Dr Filby is a board member of the Australian Institute of Health and Welfare and Chairman of Helping Hand Aged Care Inc. He holds an Adjunct Professorship in the Faculty of Health Sciences at the Flinders University of South Australia. In 2008 he was awarded a Public Service Medal. Previously, he was on the board of South Australia’s Child Health Research Institute Council.

Professor Claire Jackson

Professor Claire Jackson is Professor of Primary Care Research and Chairman of General Practice and Primary Health Care at the University of Queensland. She is the Clinical Director of two major Centres for Research Excellence in Primary Care Reform, is on several ministerial advisory committees at both state and national level, and is the Chairman of the Metro North Brisbane Medicare Local. Professor Jackson was previously an appointed member of the National Primary Care Strategy Expert Reference Group.

Professor Jackson has been active in general practice undergraduate and postgraduate education and research for many years, and has been extensively involved in health services research and reform for more than two decades. Her current primary area of research interest is in health system reform involving primary care, a topic on which she has published and presented internationally.

Professor Jackson completed her term as President of the Royal Australian College of General Practitioners in October 2012, and is an active clinician and GP supervisor in part-time general practice in Brisbane.

The Authority: Member profiles

National Health Performance Authority | Annual Report 2013-14 17

The Authority: Member profiles

Professor Michael Reid

Professor Michael Reid has many years’ experience in health care in both the public and private sectors. Professor Reid is Deputy Chairman and Independent Director of the Royal Flying Doctor Service National Board and Principal of Michael Reid and Associates.

Professor Reid has held positions as Director General of NSW Health, Director General of Queensland Health, and Director of the Policy and Practice Program at the George Institute for International Health, principally working with the Chinese Ministry of Health.

Professor Reid was Director General of the Ministry for Science and Medical Research in New South Wales from 2006-2008, and has also spent two years in Geneva at the World Health Organization working in the Global Program on AIDS.

He holds Adjunct Professorships in the Faculty of Medicine at the University of Sydney and the Faculty of Health Sciences at the University of Western Sydney.

Professor Paul Torzillo, AM

Professor Paul Torzillo is a clinical professor at Sydney Medical School and a leading advocate for the health care of Indigenous Australians.

He is a senior respiratory and intensive care physician based at Sydney’s Royal Prince Alfred Hospital (RPA). He also holds the positions of Head of Department in Respiratory Medicine, Executive Clinical Director of RPA and Clinical Director, Critical Care Services, Sydney Local Health District, where he currently serves on the board.

He is the Medical Director of Nganampa Health Council in the far north west of South Australia, a position he has held since 1991, and is a member of the National Aboriginal and Torres Strait Islander Health Equality Council.

Professor Torzillo has been a member of many national committees on research, policy and service implementation in Aboriginal health, and a consultant to the World Health Organization.

18 National Health Performance Authority | Annual Report 2013-14

The Authority: Member profiles

Professor Bryant Stokes, AM, RFD

Professor Bryant Stokes took leave of absence effective 18 April 2013.

National Health Performance Authority | Annual Report 2013-14 19

Advisory committees Four advisory committees have been established to assist in the performance of the Authority’s functions.

Jurisdictional Advisory Committee The Jurisdictional Advisory Committee (JAC) was established in 2011-12 to provide advice to the Authority on methodological issues in relation to:

• The interpretation and comparability of jurisdictional data

• The presentation of information in relation to hospitals and Medicare Locals

• Peer grouping for the purposes of fairly comparing public hospitals.

The JAC also serves as an informal point of communication between government health departments and the Performance Authority.

Chaired by Authority member Dr David Filby, the JAC comprises representatives of each of the nine Australian Government, state and territory health departments, and the Performance Authority Chief Executive Officer.

Primary Health Care Advisory Committee The Primary Health Care Advisory Committee (PAC) was established in 2012-13 to provide advice to the Authority on primary health care reporting matters, including:

• Development and interpretation of performance information

• Methodological issues in relation to the interpretation and comparability of data

• The presentation of information in public reports.

The PAC also provides advice to the Authority on consultation with the primary health care community, and community engagement processes to optimise the beneficial impact of reports.

Chaired by Authority member Professor Claire Jackson, the PAC comprised 12 additional members appointed by the Authority on the basis of their individual skills, knowledge and expertise in the areas of performance measurement and/or data collection in primary health care.

20 National Health Performance Authority | Annual Report 2013-14

Membership of the PAC:

• Professor Claire Jackson (Chairman)

• Dr Evan Ackermann

• Ms Claire Austin (until 15 October 2013)

• Associate Professor Helena Britt

• Ms Jan Donovan

• Mr Phil Edmondson

• Terry Findlay (from 24 October 2013)

• Dr Rick McLean

• Ms Sinéad O’Brien

• Sean Rooney (from 10 November 2013)

• Mr David Stokes

• Ms Melissa Vernon

• Dr Mark Wenitong.

The PAC met five times during 2013-14.

Advisory Committee on Private Hospitals The Advisory Committee on Private Hospitals (ACPH) was established in 2013-14 to provide advice to the Authority in relation to:

• Engaging with the private hospital sector to enable the Performance Authority to fulfil its obligation to publicly report on the performance of private hospitals

• Providing advice on matters specific to the private hospital sector.

The ACPH also provided advice to the Authority on its consultation and engagement plan to increase the participation of private hospitals in performance reporting initially on the MyHospitals website. The ACPH serves as a designated point of communication between the private hospital sector and the Performance Authority.

Chaired by Authority member Professor Michael Reid, the ACPH comprises six additional members appointed by the Authority from associations representing most private hospitals in Australia.

Membership of the ACPH:

• Professor Michael Reid (Chairman)

• Ms Lucy Cheetham

• Mr Tony Geftakis

• Ms Jane Griffiths

• Mr Martin Laverty

• Mr Michael Roff

• Mr Patrick Tobin.

The ACPH met twice during 2013-14.

The Authority: Advisory committees

National Health Performance Authority | Annual Report 2013-14 21

Performance Assessment Working Group The Performance Assessment Working Group was established in 2013-14 as a time-limited working group to advise the Authority in relation to its work on progressing guidelines and a process for assessing different levels of performance, as per clause D27(a)(i) of the National Health Reform Agreement 2011.

The Working Group was chaired by the Chief Executive Officer of the Australian Commission on Safety and Quality in Health Care, Professor Debora Picone. Individuals were appointed by the Authority based on their high degree of interest and experience in issues relating to either governance of quality and safety issues, performance measurement and/or management of health care organisations.

Membership of the working group:

• Professor Debora Picone (Chairman)

• Professor Chris Baggoley

• Professor Justin Beilby

• Ms Jo-Ann Bourke

• Professor Jeffrey Braithwaite

• Dr Mary Foley

• Ms Susan Johnston

• Mr Tony Lawson

• Dr Harry Nespolon

• Mr David Swan

• Adjunct Professor Debra Thoms

• Professor David Watters.

The Performance Assessment Working Group met five times during 2013-14.

The Authority: Advisory committees

22 National Health Performance Authority | Annual Report 2013-14

Cancer surgery waits

Hospital Performance: Cancer surgery waiting times in public hospitals in 2011-12 Report released 28 November 2013

• High quality media coverage published across print, radio, TV and online

• New interactive search tool for cancer surgery waiting times launched - more than 500 views over 30 days

• Media releases issued by industry groups including Bowel Cancer Australia, Breast Surgeons Australia and New Zealand, Australian Healthcare and Hospitals Association, Cancer Council Queensland and Cancer Voices Australia.

The impact

Why report on this?

Cancer is responsible for nearly one-fifth of the total burden due to disease and disability in Australia. The report provides greater insight into hospital cancer surgery waiting times across Australia to highlight where there may be opportunities for improvement.

Report findings across 155 public hospitals in Australia

1,090

One-thirdof all deaths in Australia

are caused by cancer

patients waited less than 30 days for breast, bowel or lung cancer surgery

waited longer than 30 days

of 12,699 patients

90% over

30 days

576 of 4,345 bowel cancer patients had longest surgery waits

Section 3:

Report on performance

26

National Health Performance Authority Healthy Communities: Avoidable deaths and life expectancies in 2009-2011 www.myhealthycommunities.gov.au

Notes: Results for the Medicare Local catchment are presented relative to the average result for Medicare Local catchments in the same peer group. Each coloured band represents one standard deviation from the peer group average. For more information, refer to this report’s Technical Supplement. Source: Data sources for each of the measures are listed on page 22. For more information, refer to this report’s Technical Supplement at www.myhealthycommunities.gov.au

P re v e n tio n

E x p

e ri e

n ce s

w ith h

ea lth se

rvi ces

Use of health services

HIGHER USE LOWER USE

LESS DESIRABLE MORE DESIRABLE

Medicare Local catchment results relative to Metro 1 peer group results, 2011-12

Metro 1

Medicare Local catchment legend

Medicare Local catchment profile

Medicare Local results

These data are not available for publication for this Medicare Local catchment

Age standardised data

Not publishable NP

Medicare Local results

These data are not available for publication for this Medicare Local catchment

Age standardised data

Not publishable NP

Total population:

Indigenous population:

Age proportions:

Total land area:

Population split:

Socioeconomic status:

ML map reference: 101

15% (0-17 years) 72% (18-64 years) 13% (65+ years)

388,691

1.1%

106km

2

50.3% male, 49.7% female 9%

(low) 21% (medium) 70% (high)

PEER AVERAGE

PEER AVERAGE

Life expectancy at birth, 2009-2011 Result: 83.0 years

Adults who are overweight or obese Result: 49%

Adults who are obese Result: 15%

Adults who smoke daily Result: 11%

Immunisation of 1 year old children Result: 90%

Immunisation of 5 year old children Result: 84%

Average number of GP attendances Result: 5.3 per person

Average number of specialist attendances Result: 1.24 per person

People who saw an allied health professional or nurse Result: 30%

Adults who visited a hospital ED Result: 8%

Adults who were admitted to hospital Result: 10%

Potentially avoidable hospitalisations Result: 2,119 per 100,000 people

Adults facing long waiting times for GP appointments Result: 19%

Adults facing long waiting times for medical specialists Result: 26%

Adults facing cost barriers to GP care Result: 4%

Adults facing cost barriers to filling a prescription Result: 8%

Adults facing cost barriers to seeing a medical specialist Result: 6%

Potentially avoidable deaths, 2009-2011 Result: 129 per 100,000 people

Eastern Sydney

HC_ADLE_Report_2009_2011_FINAL_09dec13.indb 26

28/01/2014 16:06:12

This section summarises the agency’s performance against the targets and key performance indicators set out in the 2013-14 Portfolio Budget Statements. The section also outlines the Performance Authority’s operational activities, achievements and performance during the year against the six objectives identified in the Strategic Plan 2012-15.

24 National Health Performance Authority | Annual Report 2013-14

The Performance Authority’s work in the reporting period focused on the following outcome as identified in the 2013-14 Portfolio Budget Statements:

Outcome 1: Contribute to transparent and accountable health care services in Australia, including through the provision of independent performance monitoring and reporting; the formulation of performance indicators; and conducting and evaluating research.

Three program objectives were identified for the Performance Authority in the Portfolio Budget Statements 2013-14. In line with the first program objective, to produce high quality reports on health system performance, the Performance Authority released 12 public reports on performance against measures in the Performance and Accountability Framework, indicating measures of quality, safety, access and efficiency as well as health outcomes.

Six Hospital Performance reports were released focusing on the performance of public hospitals. Six Healthy Communities reports were also released focusing on primary health care services provided to the populations served by Medicare Locals.

In 2013-14 the Performance Authority developed and released the following products:

• Hospital Performance: Time patients spent in emergency departments in 2012 and 2013 (released 29 May 2014). Update to MyHospitals website including time spent in emergency departments, elective surgery waiting times, and emergency department waiting times by urgency category.

• Healthy Communities: Immunisation rates for children in 2012-13 (released 27 March 2014)

• Hospital Performance: Healthcare-associated Staphylococcus aureus bloodstream infections in 2012-13 (released 13 March 2014)

• Healthy Communities: Avoidable deaths and life expectancies in 2009-2011 (released 12 December 2013). Update to MyHealthyCommunities website including GP-type service use, after hours services, and allied health and specialist service use

• Hospital Performance: Cancer surgery waiting times in public hospitals in 2011-12 (released 28 November 2013)

• Healthy Communities: Selected potentially avoidable hospitalisations in 2011-12 (released 7 November 2013)

• Hospital Performance: Length of stay in public hospitals in 2011-12 (released 7 November 2013)

Performance against Portfolio Budget Statements 2013-14

National Health Performance Authority | Annual Report 2013-14 25

Report on performance: Performance against Portfolio Budget Statements 2013-14

• Healthy Communities: Tobacco smoking rates across Australia, 2011-12 (released 24 October 2013)

• Healthy Communities: Overweight and obesity rates across Australia, 2011-12 (released 24 October 2013)

• Update to MyHospitals website: Time spent in emergency departments, elective surgery waiting times, and emergency department waiting times by urgency category (released 25 July 2013).

In line with the second program objective, to ensure meaningful reporting through comprehensive planning, in 2013-14 the Performance Authority undertook planning in relation to improving the capacity to analyse and store data, maintain high-quality report production processes, maximise uptake and use of reports, and adhere to legislative requirements.

In support of the third program objective, to improve the Australian community’s access to performance information, the Performance Authority provided local-level and comparable information on the performance of hospitals and primary health care organisations on its MyHospitals and MyHealthyCommunities websites. To further enhance these websites and improve interactive functionality, continuous improvements were made throughout the year. In 2013-14, work commenced to release a MyReport function on the

MyHealthyCommunities website and to expand and improve the MyHospitals website. The result of this work will be released in early 2014-15.

The Performance Authority met its deliverables and key performance indicators as defined in the Portfolio Budget Statements. These are summarised on pages 26 and 27. As 2013-14 is the Performance Authority’s second full year of operation as an independent statutory agency, its key performance indicators differed slightly from those of the previous period, which reflected a focus on establishing the organisation.

The Performance Authority’s financial performance is outlined in Section 4: Management and accountability. A summary table showing the total resources of the agency by outcome can be found in Appendix 4 (page 129).

Highlights of the Performance Authority’s activities, achievements and performance against the Portfolio Budget Statement outcome, with reference to the six strategic objectives identified in the Strategic Plan 2012-15, are outlined later in this section.

The deliverables and targets for the Performance Authority in the Portfolio Budget Statements 2013-14 are outlined in tables 2 and 3 (pages 26 and 27).

26 National Health Performance Authority | Annual Report 2013-14

Report on performance: Performance against Portfolio Budget Statements 2013-14

Table 2: Qualitative deliverables for Portfolio Budget Statement Program 1.1

Undertake planning

Deliverable: Monitor and prepare reports on Local Hospital Networks, public hospitals, private hospitals, primary health care organisations and other bodies or organisations that provide health care services

Target: Publication of Hospital Performance reports and Healthy Communities reports

Performance against target: In 2013-14, the Performance Authority released six Hospital Performance reports and six Healthy Communities reports. Updates were made throughout the period to performance information on the MyHospitals and MyHealthyCommunities websites.

Ensure meaningful performance reporting through comprehensive planning

Deliverable: Develop and update annually a Three-Year Rolling Data Plan that delivers the data necessary for meaningful performance reporting

Target: The updated Three-Year Rolling Data Plan is agreed to by all states, territories and the Australian Government by the last quarter of 2013-14

Performance against target: States, territories and the Australian Government agreed to the Three-Year Rolling Data Plan.

Improve the Australian community’s access to performance information

Deliverable: Deliver accessible information on the performance of local health care organisations to the Australian public

Target: Development of MyHealthyCommunities website completed, and Healthy Communities reports released on the website

Performance against target: In 2013-14, the Performance Authority completed development of the MyHealthyCommunities website and continued to monitor and improve its functionality. Throughout the year, Healthy Communities reports were released via the MyHealthyCommunities website.

National Health Performance Authority | Annual Report 2013-14 27

Report on performance: Performance against Portfolio Budget Statements 2013-14

Table 3: Qualitative key performance indicators for Portfolio Budget Statement Program 1.1

Produce high quality reports on health system performance

Indicator: High quality, locally relevant, nationally consistent information about the performance of health care organisations is routinely delivered

Target: The Performance Authority produces written reports and interactive web products that are readily accessible to the public

Performance against target: The Performance Authority made available information to the public via its written reports and interactive web products. Updates to data on the MyHospitals website and MyHealthyCommunities website accompanied report releases to ensure the latest and most accurate data are readily accessible.

Ensure meaningful performance reporting through comprehensive planning

Indicator: Meaningful reports of performance against COAG-agreed indicators are produced each quarter

Target: The Reporting Plan progressively includes indicators in the Performance and Accountability Framework

Performance against target: In 2013-14, the Performance Authority reported in full or partially against an additional nine indicators not previously reported on, and provided new data on Hospital Performance and Healthy Communities indicators previously reported on.

Improve the Australian community’s access to performance information

Indicator: MyHealthyCommunities website and MyHospitals website are widely used by the public and health care organisations

Target: Feedback about the websites is positive; baseline data on website hits and downloads is collected to monitor user patterns and effectiveness of the websites

Performance against target: The Performance Authority implemented mechanisms in 2013-14 to monitor and track usage patterns of the corporate, MyHospitals and MyHealthyCommunities websites, and to track media coverage of the Performance Authority’s reports.

In addition to making improvements to its three websites to maximise their utility, the Performance Authority commenced redevelopment of MyHospitals in 2013-14 to improve content, usability and user experience of the site for all devices and browsers.

28 National Health Performance Authority | Annual Report 2013-14

Report on performance: Performance against Portfolio Budget Statements 2013-14

Hospital Performance: Cancer surgery waiting times in public hospitals 2011-12 28 November 2013 Most patients needing surgery to remove some common malignant cancers receive their operations in clinically appropriate time, with over 90% of patients being treated within 30 days.

Healthy Communities: Selected potentially avoidable hospitalisations in 2011-12 7 November 2013 Some people may be unnecessarily spending time in hospital when their health care could be managed in the community.

Healthy Communities: Tobacco smoking rates across Australia, 2011-12 24 October 2013 While smoking rates have been declining nationally, rates in some local areas are still worryingly high.

Hospital Performance: Length of stay in public hospitals in 2011-12 7 November 2013 The number of days patients stay in hospital for a range of common treatments can be up to four times higher at some big-city hospitals compared to hospitals of a similar size.

Healthy Communities: Overweight and obesity rates across Australia, 2011-12 24 October 2013 High rates of overweight and obesity are scattered across all local areas including wealthy inner-city suburbs, rural communities and disadvantaged communities.

Information updates on the MyHospitals website 25 July 2013 and 29 May 2013 The National Health Performance Authority released new data on time spent in emergency departments, elective surgery waiting times and emergency department waiting times by urgency category.

Performance Authority reports and products 2013-14

National Health Performance Authority | Annual Report 2013-14 29

Report on performance: Performance against Portfolio Budget Statements 2013-14

Healthy Communities: Immunisation rates for children in 2012-13 27 March 2014 The second report found the number of children not fully immunised was nearly 2,000 fewer than in the previous year (75,002 in 2012-13 compared to 76,769 in 2011-12).

Hospital Performance: Healthcare-associated Staphylococcus aureus bloodstream infections 2012-13 13 March 2014 Australia’s biggest public hospitals account for a disproportionate share of reported healthcare-associated S. aureus bloodstream infections.

Hospital Performance: Time patients spent in emergency departments in 2012 and 2013 29 May 2014 There are large variations between hospitals in the percentage of patients who leave emergency departments within four hours.

Healthy Communities: Avoidable deaths and life expectancies in 2009-2011 12 December 2013 In the three years 2009-2011, the average rate of avoidable deaths per year was more than three times higher in some local areas compared to others.

Information updates on the MyHealthyCommunities website 12 December 2013 The National Health Performance Authority released new data on GP-type service use, GP after-hours services, and allied health and specialist service use.

30 National Health Performance Authority | Annual Report 2013-14

Performance against strategic objectives

The following six strategic objectives, as identified in the Strategic Plan 2012-15, provided the foundation for assigning priorities during the year.

Performance reporting Strategic objective 1: Regularly monitor and report timely, accurate and locally relevant information that compares and tracks performance of health care organisations and local health care systems.

The Performance Authority provides timely, nationally consistent and comparable performance information and analysis that is locally relevant, and in many cases the first of its kind. Using robust methods, it assesses performance against COAG-agreed performance indicators by reporting at the hospital level for the hospital indicators, and Medicare Local catchment, or even smaller geographical levels for primary health care indicators.

This is important, as national and state-level figures by their nature prevent health care managers, clinicians and the public from seeing where are the ‘highs’ and the ‘lows’ on any given measure. These highs and lows may constitute either the areas where improvements are most needed, or those that highlight best practice others may wish to emulate.

Supporting fair comparisons

Through the Performance Authority reports, health care organisations and local communities are able to compare their performance with that of their peers across the country and across time. In doing so, its reports reveal where efforts to improve care will yield the highest return.

The Performance Authority allocated hospitals into peer groups which share similar characteristics. For hospitals, this means groups of hospitals that are of similar size (for example, taking into account patient admissions and medical services provided), geographic location and, for some reports, other factors (for example, the number of vulnerable patients).

For each Healthy Communities report, the Performance Authority publishes data at Medicare Local catchment level. There is a network of 61 Medicare Local catchments across Australia. For most reports, the Performance Authority has grouped the Medicare Local catchments into seven peer groups. These peer groups were determined according to socioeconomic status, remoteness and distance from hospitals.

National Health Performance Authority | Annual Report 2013-14 31

Report on performance:

Performance against strategic objectives

For some performance measures, the Performance Authority uses smaller geographic regions.

It has named local communities where avoidable hospitalisations for the treatment of chronic health conditions are at least 10 times higher than in other similar communities.

Assessment of performance

Since its first report was released in December 2012, the Performance Authority has reported in full or partially against 21 of 48 Performance and Accountability Framework indicators. Some of these indicators include more than one measure - for example, when reporting on potentially avoidable admissions to hospital (one indicator) the Performance Authority reported acute, chronic and total potentially avoidable admissions (three measures). The MyHealthyCommunities website now includes performance information against many Healthy Communities indicators and more than 70 health measures associated with these indicators.

The remaining 27 of 48 Performance and Accountability Framework indicators require extensive work, due to the lack of nationally consistent and/or comparable information to support local-level reporting. This work has commenced.

Through its assessment of performance, the Performance Authority in 2013-14 revealed, for example:

• Local communities where potentially preventable deaths are almost four times higher than in other communities and potentially treatable deaths are almost three times higher. More than 30,000 Australians die prematurely each year and 66% of these deaths are from causes that could be avoided through better prevention or medical treatment

• Public hospitals with the shortest and longest waiting times for life-saving surgery for malignant lung, breast or bowel cancers

11 Healthy Communities: Selected potentially avoidable hospitalisations in 2011-12 National Health Performance Authority www.myhealthycommunities.gov.au

Figure 4: Number of potentially avoidable hospitalisations per 100,000 people in Medicare Local catchments by state and territory, age-standardised, 2011-12

0 1000 2000 3000 4000 5000 6000

2,193 1,866 1,281 1,264 1,302 1,152 1,252 1,026 1,093 1,072 1,055 1,083

746 689 819 834 643

1,437 1,444 1,476 1,144 1,332 1,433 1,407 1,300

1303 1,122 1,335 1,176 1,294 1,307 1,130 1,024

848

2,237 1,477 1,346 1,504 1,448 1,553 1,335 1,107 1,213 1,017 1,078

1469 1362 1318 1083

892

2087 1578 1174 1026 1053 1056

922 802

915

2111

857

4,734

3,885 3,150 3,054 2,991 2,886 2,764 2,500 2,445 2,438 2,417 2,373 2,119 2,016 2,009 1,963 1,891

4,240 3,521 3,253 3,178 3,174 3,148 3,131 3,092 3,051 2,967 2,913 2,866 2,815 2,803 2,535 2,477 2,178

5,342 3,606 3,499 3,422 3,370 3,072 3,063 2,707 2,664 2,604 2,583

3,710 3,230 2,992 2,568 2,345

5,149 3,645 2,852 2,694 2,649 2,564 2,518 2,430

2,007

4,662

2,055

New South Wales Far West NSW Murrumbidgee Western NSW North Coast NSW

New England

Illawarra - Shoalhaven Southern NSW Nepean - Blue Mountains Western Sydney

South Western Sydney Central Coast NSW Hunter Region Eastern Sydney

Sydney North Shore & Beaches South Eastern Sydney Inner West Sydney Northern Sydney

Victoria

Great South Coast Loddon - Mallee - Murray Lower Murray Grampians Frankston - Mornington Pen

South Eastern Melbourne Goulburn Valley Hume Gippsland Eastern Melbourne South Western Melbourne

Barwon

Macedon Ranges & NW Melb Northern Melbourne Inner NW Melbourne Bayside Inner East Melbourne

Queensland Central & NW Qld Far North Qld Central Qld

Wide Bay

Darling Downs - SW Qld West Moreton - Oxley Townsville - Mackay Sunshine Coast Greater Metro South Brisbane

Gold Coast

Metro North Brisbane

South Australia Country North SA Country South SA

Northern Adelaide

Southern Adelaide - Fleurieu Central Adelaide and Hills

Western Australia Kimberley - Pilbara Gold*elds - Midwest South West WA Perth Central and East Metro

Perth South Coastal Bentley - Armadale Perth North Metro Fremantle

Tasmania Tasmania

Northern Territory Northern Territory

Australian Capital Territory Australian Capital Territory

2,544

2,027 1,875 1,796 1,696 1,741 1,518 1,482 1,361 1,373 1,367 1,297 1,378 1,333 1,194 1,135 1,253

2,809 2,086 1,787 2,040 1,852 1,732 1,731 1,799 1,754 1,852 1,593 1,693 1,530 1,504 1,413 1,462 1,335

3,125 2,139 2,168 1,923 1,934 1,538 1,736 1,605 1,462 1,593 1,521

2,253 1,880 1,688 1,495 1,464

3,094 2,080 1,684 1,677 1,601 1,516 1,602 1,631

1,098

2,584

1,204

Total*

Number of potentially avoidable hospitalisations per 100,000 population, age standardised

Medicare Local catchments grouped by state/territory Chronic

Acute & vaccine- preventable

* Components may not add to totals as separations for vaccine-preventable conditions, gangrene and appendicitis with peritonitis are based on both principle diagnosis and additional diagnoses, and therefore may also count towards separations for other selected potentially avoidable hospitalisations. Notes: Patients with multiple separations for selected potentially avoidable hospitalisations during 2011-12 are counted for each separation. Source: Admitted Patient Care National Minimum Data Set 2011-12 and Australian Bureau of Statistics Estimated Resident Population 30 June 2011.

NHPA HC PAH DES02 POST EMBARGO 22oct13.indb 11 6/12/2013 10:24 am

Figure 2: Medicare Local peer group presentation

Source: Healthy Communities: Selected potentially avoidable hospitalisations in 2011-12

32 National Health Performance Authority | Annual Report 2013-14

Report on performance: Performance against strategic objectives

• Public hospitals where the average lengths of time patients were spending in hospital after being admitted for any of 16 common procedures or medical conditions are the longest. In the case of hip replacements, the report showed the average length of stay varied across major metropolitan hospitals - from fewer than four days up to 15 days. These findings are significant given the high cost of acute care hospital beds, which for hip replacement patients can easily exceed a few thousand dollars for each extra day.

In 2013-14, the Performance Authority also began work on assessing different levels of performance, with health ministers agreeing to a process for identifying poor performance of public hospitals against specific hospital indicators. In 2014-15, the Performance Authority will identify hospital poor performance in select clinical areas in a nationally consistent and comparable way. This will be a first for Australia.

Identifying trends

Identifying trends helps drive improvements in the health system and monitor the impact of efforts to improve care. In 2013-14 the Performance Authority began monitoring and reporting performance over time.

In 2013-14, the Performance Authority’s second report on immunisation rates for children highlighted nationally the percentage

of all children aged five years who were fully immunised. This increased by 1.5 percentage points between 2011-12 and 2012-13. Importantly, the report revealed immunisation rates right down to the postcode level where possible, enabling communities to see at the very local level whether rates were improving or declining.

In 2013-14, the Performance Authority also released a follow-up report on the time patients spend in emergency departments. Of significance, 18 major metropolitan hospitals reported improvements of 10 or more percentage points from January to December 2012 to January to December 2013. The biggest single improvement over this one-year period was at Princess Alexandra Hospital (Brisbane), which improved from 45% to 65% of patients leaving the emergency department within four hours. In its first report on this indicator, the Performance Authority had named this hospital as having the lowest percentage of patients leaving within four hours in comparison to all other major metropolitan hospitals nationally.

The Performance Authority will continue to monitor and report on trends over time so as to assist communities and health care organisations to understand what initiatives are helping improve outcomes and what opportunities remain to improve patient care.

National Health Performance Authority | Annual Report 2013-14 33

Report on performance:

Performance against strategic objectives

Stimulating community discussion

The Performance Authority releases credible, impartial and user-friendly information that stimulates important public discussion on public health issues.

In 2013-14, the Performance Authority released for the first time in Australia nationally comparable information on the prevalence of smoking and rates of overweight and obesity at the local level. These reports revealed that up to 28% of adults in one Medicare Local catchment smoked daily - more than four times higher than in the Medicare Local catchment with the lowest rate (6%). The proportion of obese or overweight adults is also as high as four out of five adults in some Medicare Local areas.

Combined, these two reports generated over 300 media stories within 30 days of their release. The accessibility of data in the report and on the MyHealthyCommunities website supports the initiatives of health professionals, health advocacy groups and local communities to reduce rates of smoking, overweight and obesity in communities most likely to benefit.

Similarly, this year’s immunisation report was covered by 286 media news items within 30 days.

Communications Strategic objective 2: Design and disseminate comparable information to stimulate and inform efforts to improve the health system, improve transparency and accountability, and inform consumers.

The Performance Authority develops, designs and disseminates its reports with a view to maximising uptake and comprehension of its findings by stakeholders. The Performance Authority presents complex data in ways that are meaningful and illuminating, to facilitate new knowledge and a ‘call to action’ among health professionals and, in some cases, the wider public.

In 2013-14, the Performance Authority developed and implemented a Communications Plan that supports the design and dissemination of reports and products. The Communications Plan has been published on the Performance Authority’s website at www.nhpa.gov.au

Report design

Report design enables information to be useful to and be used by the range of audiences to whom the Performance Authority pitches its reports. Each product presents findings in a way that caters to different learning styles and approaches to accessing information.

34 National Health Performance Authority | Annual Report 2013-14

To ensure accessibility, the Performance Authority uses language and graphics that are easy to understand and makes reports available in a variety of formats and platforms. Comprehensive summaries, custom-designed graphics and interactive web tools are examples of products that cater to different levels of health and statistical literacy, and enhance comprehension of the Performance Authority’s findings.

To further enhance the use of its information in 2013-14, the Performance Authority introduced new reporting formats including its ‘In Focus’ and ‘Update’ reports.

During 2013-14, the Performance Authority also developed a new data visualisation with multiple measures on a single diagram (see Figure 3). The graphics show a unique health profile for each Medicare Local catchment and how it fares on 18 measures of prevention, use of health services, experiences with care and health outcomes, allowing rapid understanding of where there are opportunities for improvement in each local community.

Report dissemination

The Performance Authority delivers its reports through effective, targeted and multi-channelled initiatives, tailoring pre- and post-release activities to maximise awareness and use among target audiences.

To engage its many stakeholders, the Performance Authority has continued to implement and refine a number of initiatives in the release process to ensure stakeholder groups and interested parties are appropriately informed, and to assist in the promotion and commentary of report topics. Reports are delivered and promoted in various forms including online PDF and print reports as well as interactive webpages, audio visual presentation and social media.

The Performance Authority’s three websites are a key communication tool. On its MyHospitals and MyHealthyCommunities websites, the Performance Authority

26 National Health Performance Authority Healthy Communities: Avoidable deaths and life expectancies in 2009-2011 www.myhealthycommunities.gov.au

Notes: Results for the Medicare Local catchment are presented relative to the average result for Medicare Local catchments in the same peer group. Each coloured band represents one standard deviation from the peer group average. For more information, refer to this report’s Technical Supplement. Source: Data sources for each of the measures are listed on page 22. For more information, refer to this report’s Technical Supplement at www.myhealthycommunities.gov.au

P reve n tio n

E x p

e r i e

n c e

s w it

h h ea

lth s

er vi ce

s

Use of health services

HIGHER USE LOWER USE

LESS DESIRABLE MORE DESIRABLE

Medicare Local catchment results relative to Metro 1 peer group results, 2011-12

Metro 1

Medicare Local catchment legend Medicare Local catchment profile

Medicare Local results

These data are not available for publication for this Medicare Local catchment

Age standardised data

Not publishable NP

Medicare Local results

These data are not available for publication for this Medicare Local catchment

Age standardised data

Not publishable NP

Total population:

Indigenous population:

Age proportions:

Total land area:

Population split:

Socioeconomic status:

ML map reference: 101

15% (0-17 years) 72% (18-64 years) 13% (65+ years)

388,691

1.1%

106km2

50.3% male, 49.7% female

9% (low) 21% (medium) 70% (high)

PEER AVERAGE

PEER AVERAGE

Life expectancy at birth, 2009-2011 Result: 83.0 years

Adults who are overweight or obese Result: 49%

Adults who are obese Result: 15%

Adults who smoke daily Result: 11%

Immunisation of 1 year old children Result: 90%

Immunisation of 5 year old children Result: 84%

Average number of GP attendances Result: 5.3 per person

Average number of specialist attendances Result: 1.24 per person

People who saw an allied health professional or nurse Result: 30%

Adults who visited a hospital ED Result: 8%

Adults who were admitted to hospital Result: 10%

Potentially avoidable hospitalisations Result: 2,119 per 100,000 people

Adults facing long waiting times for GP appointments Result: 19%

Adults facing long waiting times for medical specialists Result: 26%

Adults facing cost barriers to GP care Result: 4%

Adults facing cost barriers to filling a prescription Result: 8%

Adults facing cost barriers to seeing a medical specialist Result: 6%

Potentially avoidable deaths, 2009-2011 Result: 129 per 100,000 people

Eastern Sydney

HC_ADLE_Report_2009_2011_FINAL_09dec13.indb 26 28/01/2014 16:06:12

Figure 3: Medicare Local unique health profile presentation

Source: Healthy Communities: Avoidable deaths and life expectancies in 2009-2011

Report on performance: Performance against strategic objectives

National Health Performance Authority | Annual Report 2013-14 35

Report on performance:

Performance against strategic objectives

provides comparable information for allowing health care organisations to compare their performance with that of their peers. Updates to data on both websites accompanied report releases during the year, ensuring the latest and most accurate data are available.

MyHospitals website

The MyHospitals website (www.

myhospitals.gov.au) is the online vehicle for the Performance Authority to report on the performance of individual hospitals.

During the reporting period, the Performance Authority continued to post regular updates to information on more than 1,000 public and private hospitals on the MyHospitals website. In 2013-14 the Performance Authority commenced a major expansion and improvement of the MyHospitals website to improve accessibility and consumer usability, and enhance the presentation of health data to the public.

MyHealthyCommunities website

The MyHealthyCommunities website (www.

myhealthycommunities.gov.au) is a first-of-its-kind interactive website delivering performance information on primary health care.

The MyHealthyCommunities website was cited as “one of the most useful health innovations of 2013” by the Australian Associated Press in December 2013.

In 2013-14, the Performance Authority commenced work to create a tool that enables users to create their own reports. This new MyReport functionality will be released in early 2014-15.

Corporate website

The Performance Authority’s corporate website (www.nhpa.gov.au) provides stakeholders with information on the agency’s past and forthcoming reports, corporate profile, reporting and governance framework and related activities.

Report release strategies

The Performance Authority provides confidential pre-release access to relevant health system managers and stakeholders before each report is released. Early embargoed access enables interested organisations to prepare informed comments in response to the Performance Authority’s findings.

Reports are promoted to specialist health journalists to ensure quality coverage and comprehension of report findings in the media. Widespread media coverage ensures the public becomes engaged in the findings and this provides motivation for clinicians and health services managers to respond. There was considerable media interest in all of the Performance Authority’s reports in 2013-14, with reports generating in total more than 1,200 media items related to report findings.

36 National Health Performance Authority | Annual Report 2013-14

Report on performance: Performance against strategic objectives

The Performance Authority established its Twitter account @nhpareporting in March 2013. It has grown significantly as a vehicle for dissemination of information. Now with more than 560 followers, the social media platform is a significant vehicle for publication of health performance information. This new approach to sharing graphics and images has also seen good uptake and sharing across the health community online.

The Performance Authority also established a subscription alert to highlight report release to interested stakeholders.

Performance and Accountability Framework Strategic objective 3: Regularly review and assess the Performance and Accountability Framework to ensure that it remains relevant to the needs of the community.

The Performance and Accountability Framework contains 48 indicators that guide the agency’s work with respect to indicators to be reported against, data sources to be secured, and indicator specifications to be developed.

Extensive data and methodological development work is required to enable reporting of some indicators and, for some high priority indicators, this work commenced in 2013-14.

The Performance Authority commenced work in 2013-14 on how to measure primary health care to distinguish immediate from intermediate and long-term outcomes. Immediate outcomes are those for which health care organisations have the most influence and, therefore, can be held most accountable.

Data specifications and standards

For every report and update that the Performance Authority has released, a specification for that indicator has been written and registered as a standard in METeOR, the repository of health metadata. The Performance Authority continues to use all applicable metadata standards in its reporting.

Where the Performance Authority has identified that existing specifications are not suitable for public performance reporting, it may initiate work on new specifications. For example, Performance Authority staff have commenced extensive research and development on specifications for the indicators regarding primary care type emergency department attendances, comparable costs of hospital care, and mortality in public hospitals, to determine specifications appropriate for nationally consistent and comparable, local-level reporting.

National Health Performance Authority | Annual Report 2013-14 37

Report on performance:

Performance against strategic objectives

Engagement and consultation Strategic objective 4: Build and maintain relationships with stakeholders to support the Authority’s role and enhance its impact.

In 2013-14, the Performance Authority finalised its Engagement and Consultation Plan which is available on the Performance Authority’s corporate website at www.nhpa.

gov.au

Guided by principles of consultation, respect and collaboration, the Performance Authority engages with various stakeholders in a range of different contexts and for different purposes. These stakeholders include health system managers, national data organisations, health professionals, industry bodies, professional associations and colleges, academics, non-government organisations, consumer groups, media and the general public.

Consultation with health system managers is conducted through a variety of mechanisms including the Standing Council on Health, the Australian Health Ministers’ Advisory Council, the Jurisdictional Advisory Committee (JAC) and with individual health ministers and health chief executives as the need arises.

Performance Authority senior staff presented at numerous stakeholder events, meetings and conferences during 2013-14. A summary of this participation is provided at Appendix 2.

Consultation through committees

Throughout the production cycle of each report, the Performance Authority undertakes stakeholder consultations, primarily through committees. The Authority members have established standing and time-limited committees and executive directors have established report specific advisory committees that engage health professionals, consumers and other stakeholders.

Advice from these committees assists in shaping the Performance Authority’s priorities for reporting and its work program, and ensures the technical and clinical relevance of the information presented within reports.

38 National Health Performance Authority | Annual Report 2013-14

Report on performance: Performance against strategic objectives

In addition to the Authority’s standing Jurisdictional Advisory Committee (JAC) and Primary Health Care Advisory Committee (PAC), one standing and one time-limited committee of the Authority were established in 2013-14. In October 2013, the Advisory Committee on Private Hospitals (ACPH) was established to provide the Authority with advice on the private hospital sector. In early 2014, the time-limited Performance Assessment Working Group was established to provide the Authority with advice in relation to developing guidelines and a process for assessing different levels of performance of Local Hospital Networks and the hospitals within them, as per clause D27(a)(i) of the National Health Reform Agreement (2011).

In 2013-14, the Performance Authority undertook a review of the function of the PAC. Findings of the review highlighted the enthusiasm of committee members to engage with the Performance Authority, and suggested mechanisms to enhance members’ contributions to primary health care reporting matters. The agency is using the review to inform how the Performance Authority can better engage and consult with a broad range of stakeholders.

Data and information management Strategic objective 5: Develop effective processes and tools to support data availability, collation, analyses and information management.

The effectiveness of the Performance Authority’s activities is dependent on developing and obtaining a sound evidence base and a reliable supply of high-quality data.

Data quality

Considerable effort goes into ensuring the information published by the Performance Authority allows the fairest possible comparisons among hospitals and local areas across different states. The agency has extensive procedures to ensure its calculations are accurate and that differences in data collection that could skew comparisons are detected and addressed or acknowledged.

The Performance Authority draws on the extensive technical capabilities of its team of methodological and statistical experts to ensure that its methodologies are robust and findings are accurate. Internal quality assurance practices are well established and rigidly adhered to. Data are validated internally and, where appropriate, externally by jurisdictions.

National Health Performance Authority | Annual Report 2013-14 39

Report on performance:

Performance against strategic objectives

In 2013-14, the Performance Authority focused on developing and implementing a more complete suite of data governance policies and procedures to support data collation, analysis and information management. In June 2014, an internal audit of this suite of data governance policies and procedures commenced to ensure they were sufficiently comprehensive and met legislative and other requirements.

The Performance Authority uses the Enterprise Data Warehouse (EDW) to access and store its data, and has used this warehouse to enable jurisdictions to securely access their data. The EDW is an Information Security Registered Assessors Program (IRAP) assessed secure data repository that is used for data storage and analysis. Access to data is strictly controlled on a needs basis by a registered data steward.

Data Plan

The Performance Authority’s Three-Year Rolling Data Plan sets out its immediate to mid-term reporting intentions and associated data requirements. Under the National Health Reform Agreement, the Performance Authority develops and updates its Data Plan each year. In 2013-14, the Performance Authority accessed and used data to create performance information under a Three-Year Rolling Data Plan: 2013-14 to 2016-17, endorsed by health ministers at the end of 2012-13.

The Performance Authority uses existing data flows where feasible, working to reduce the data burden on jurisdictions through single provision, multiple use of national health information. The Data Plan limits the requirement for new data to what is necessary to carry out statutory reporting functions.

The Performance Authority’s Three-Year Rolling Data Plan: 2014-15 to 2016-17 was developed in coordination with the Independent Hospital Pricing Authority and the Administrator of the National Health Funding Pool and submitted to health ministers for approval. Leading up to its submission, the Performance Authority provided opportunity for jurisdictions to consider the Data Plan via its JAC and National Health Information and Performance Principal Committee, a principal committee of the Australian Health Ministers’ Advisory Council.

The Three-Year Rolling Data Plan was approved by health ministers. The Performance Authority will continue to utilise the JAC for its consultations on further updates to the Data Plan.

The Performance Authority commenced work with the private hospital sector to develop a private hospital data plan.

40 National Health Performance Authority | Annual Report 2013-14

Report on performance: Performance against strategic objectives

Reporting Plan

The Performance Authority’s Reporting Plan outlines the agency’s reporting intentions.

In 2013-14, the Reporting Plan was provided to health ministers on a regular basis. The order and frequency of reports outlined in the Reporting Plan are determined by the availability and timeliness of quality data, national consistency in collection, and readiness of indicator specifications.

The Performance Authority’s reporting intentions are available on the Performance Authority’s website at www.nhpa.gov.au

Organisational capability and governance Strategic objective 6: Pursue excellence in the governance, management and operations of the Performance Authority.

Emerging from its establishment phase, the Performance Authority focused in 2013-14 on improving its capabilities and strengthening its existing governance mechanisms. To do this, the agency implemented a plan for completing and reviewing its suite of corporate governance documents and structures. It also completed the establishment of the initial suite of human resources and finance and procurement policies and procedures.

In reviewing its strategic and operational planning frameworks, policies and procedures, the Performance Authority consulted with its Audit Committee and internal auditors to help identify areas for improvement and best practice. It conducted one internal audit and commenced three internal audits. In addition, the agency focused on training staff in identifying, minimising and responding to operational and strategic risks.

Through its fraud and risk management framework documents, staff training, internal review and external audits, the Performance Authority has embedded and integrated a proactive approach to fraud control and risk management. The same is true in relation to the Strategic Risk Register and Business Continuity Plan.

The Performance Authority received a gold award for its 2012-13 annual report from the Institute of Public Administration Australia in the small FMA, print report category.

In 2013-14, considerable attention was also given to streamlining and documenting report production and quality assurance processes. These are now embedded in both data analysis and report writing.

National Health Performance Authority | Annual Report 2013-14 41

Report on performance:

Performance against strategic objectives

With the introduction of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) effective 1 July 2014, the Performance Authority undertook preparatory work to transition from an agency served by the Financial Management Act 1997 to a corporate Commonwealth entity under the PGPA Act. Such work included consultation with Australian Government departments, revising existing corporate governance documents and developing new documents as necessary, and continuously informing staff of the pending changes.

More information on the Performance Authority’s work with regards to governance and management can be found in Section 4: Management and accountability.

42 National Health Performance Authority | Annual Report 2013-14

Report on performance: Performance against strategic objectives

MyHospitals

MyHealthyCommunities

See how your hospital compares against other similar hospitals on a range of measures such as waiting times and safety and quality standards.

See how your local area compares for measures such as experiences with GPs and immunisation rates for children.

View individual hospital profiles, performance information, interactive data and more. Search for a service by postcode, hospital or location.

View health care performance information for local areas including Medicare Local catchments, statistical areas and postcodes.

Explore

Explore

Compare

Compare

www.myhospitals.gov.au Get the latest information and performance results for over 1,000 public and private hospitals in Australia.

www.myhealthycommunities.gov.au An interactive website that lets you see health information for your local area and how it compares against other similar areas across Australia.

Section 4:

Management and accountability

This section details the Performance Authority’s corporate governance arrangements, and the agency’s compliance with requirements such as purchasing and contracting, assets management and human resources management.

44 National Health Performance Authority | Annual Report 2013-14

Corporate governance

Corporate governance overview The Performance Authority’s governance framework provides the structure for informed decision-making, risk management and accountability. The framework has its foundation in the National Health Reform Act 2011 (the Act), which establishes a seven-member governing body referred to here as ‘the Authority’ (as distinct from the agency as a whole, which is referred to here as ‘the Performance Authority’).

The Authority is a body corporate comprising a chairman, deputy chairman and five other members. Members are appointed on a part-time basis by the Australian Government Minister for Health, in agreement with the Prime Minister and the first ministers of states and territories. The Authority is accountable to the Parliament of Australia through the Minister for Health and is responsible for setting the overall policy and strategic direction of the agency.

The CEO is appointed by the Authority chairman and is responsible for the daily administration of the Performance Authority. The CEO ensures the agency achieves its performance objectives in accordance with the strategies, policies, programs and performance requirements approved by Authority members and consistent with the Act and any relevant national agreement.

The CEO ensures that Authority members are consulted on matters that are sensitive, extraordinary or of a strategic nature. The CEO also ensures that members are provided with all necessary information to enable them to fulfil their governance responsibilities.

The CEO is accountable to the Minister for Health and also the Minister for Finance in relation to the Financial Management and Accountability Act 1997 (FMA Act). Under section 126 of the Act, the Authority is unable to direct the CEO’s performance of functions or exercise of powers under the FMA Act or the Public Service Act 1999 (PS Act).

Committee structure

The structure of management and advisory committees, as indicated at Figure 4, provides the Performance Authority with a transparent and rigorous capacity for effective governance across all areas of the agency’s operations.

The CEO has established three standing advisory committees to assist the Authority members in the performance of their functions. During 2013-14, a time-limited advisory committee was also established. An overview of the membership and role of these committees can be found in Section 2: The Authority. While established to provide advice to Authority members, the administration and remuneration of these committees are managed by the Performance Authority.

National Health Performance Authority | Annual Report 2013-14 45

Figure 4: The Performance Authority committee relationships

CEO

Jurisdictional Advisory Committee (JAC)

Advisory Committee for Private Hospitals (ACPH)

Work Health and Safety Committee

Audit

Committee

Executive Directors

Data Specifications and Standards Technical Committee

Information and Communications Technology (ICT) Steering Committee

Report Specific Advisory Committees

Report Specific Technical Committees

Other time-limited committees

The CEO has also established committees to assist in operational oversight of the Performance Authority’s work.

Executive Committee

The Executive Committee is a standing committee of the CEO. The Executive Committee collectively leads and takes oversight responsibility for the day-to-day performance of the Performance Authority, and supports the CEO in her role.

This includes, but is not limited to, performance of the organisation in relation to achieving the outcomes of the Portfolio Budget Statement, mission, strategies and objectives outlined in the Strategic Plan 2012-15, allocation of resources, management of enterprise-wide risks, legislative compliance, stakeholder relations and corporate governance principles and implementation. In 2013-14, the Executive Committee met monthly.

Management and accountability: Corporate governance

Primary Health Care Advisory Committee (PAC)

Time-limited committees

Performance Assessment Working Group

Executive Committee

Reporting Plan Committee

Authority members

46 National Health Performance Authority | Annual Report 2013-14

Audit Committee

The Performance Authority’s Audit Committee comprises three independent external members. The Audit Committee provides independent assurance and advice to the CEO on the Performance Authority’s governance arrangements, risk control and compliance framework, and financial statement responsibilities. In 2013-14, the Audit Committee met four times.

In 2013-14, the Audit Committee undertook a biennial review of its performance. Following the review, the Performance Authority has strengthened its interaction with the Audit Committee, particularly in relation to risk management.

Work Health and Safety Committee

The Work Health and Safety Committee provides assurance and assistance to the CEO and the Executive Committee on the health and safety of the Performance Authority’s staff. In 2013-14, this committee met quarterly.

Reporting Plan Committee

The Reporting Plan Committee reports to the CEO, and supports the Performance Authority by overseeing implementation of the Reporting Plan, specifically on the production of performance reports and products. In 2013-14, this committee met fortnightly.

The Committee hosts a forum for its members, directors of reports and relevant staff to gain an organisation-wide perspective on progress toward the production of reports and information products. It has one sub-committee - the Data Specifications and Standards Technical Committee.

Data Specifications and Standards Technical Committee

The Data Specifications and Standards Technical Committee develops and oversees organisation-wide implementation of the agency’s data governance. This includes developing, overseeing and coordinating data specifications for performance indicators, provision of contextual information in reports, and standards in relation to the access, use and disclosure of data and performance indicators. In 2013-14, this committee met at least once per month.

Report specific advisory and technical committees

Report-specific advisory and technical committees report to executive directors and provide timely advice in defining the scope of reports and interpreting the findings. In 2013-14, these committees were established for all reports.

Management and accountability: Corporate governance

National Health Performance Authority | Annual Report 2013-14 47

Information Communications and Technology (ICT) Committee

The ICT Committee reports to the Executive Committee and monitors the effectiveness and suitability of the agency’s ICT systems, enabling senior management to monitor, control and direct ICT frameworks, risk assessments, policies, procedures and projects. In 2013-14, this committee met on an as-needed basis.

External scrutiny The Audit Committee met four times during 2013-14 and provided independent assurance and advice to the CEO on risk control and compliance.

The Performance Authority engaged Callida Consulting Ltd to undertake one internal audit during 2013-14, on the migration of opening balances to Systems Applications Productions (SAP). The audit did not result in any significant findings.

The Performance Authority appointed Crowe Horwath as its internal auditor for the period to 30 June 2015, to complete the internal audit program. Three audits commenced in June 2014 on data governance, risk governance and procurement.

No judicial or tribunal decisions that could have a significant impact on Performance Authority operations have been made or are pending.

No reports have been released on the operations of the organisation by the Auditor-General, a Parliamentary Committee or the Commonwealth Ombudsman.

Management and accountability: External scrutiny

48 National Health Performance Authority | Annual Report 2013-14

Management of human resources The Performance Authority almost reached its full complement of staff in 2013-14, securing a number of permanent staff to fill corporate and specialist roles across the agency. As a new agency, 2013-14 represented the second full year of operations.

The Performance Authority managed its recruitment of vacancies in accordance with the Australian Public Service Commission Interim Recruitment Procedures.

Workforce planning, staff turnover and retention Workplace planning activities focused on the best use of human resources within a changing environment.

A key challenge associated with workforce planning relates to the placement and retention of highly qualified staff to deliver on strategic objectives. To ensure sufficient human resource capabilities to meet objectives, the Performance Authority has given internal staff the opportunity for development and has recruited excess staff from another Australian Government agency.

Tables 4 and 5 show the distribution of staff by employment status and location at 30 June 2013 and at 30 June 2014.

In 2013-14, the Performance Authority also focussed on developing and implementing a range of human resources policies and procedures.

Learning and development The Performance Authority provides learning and development opportunities for staff to support the functions of the agency.

Staff attended various conferences and training programs throughout the year to supplement already-acquired skills and knowledge.

Staff also received training on fraud control, governance and compliance, Professional Development Scheme, procurement, security and records management. All staff were able to participate in tailored orientation, in addition to induction.

Transitioning staff to the electronic document and records management system, using TRIM software, was a key focus for training, through a combination of structured workshops and on-the-job training.

Solidifying team cohesion was another priority of the agency’s learning and development program in 2013-14. Teams across the agency participated in workshops on the DiSC® workplace tool, providing the agency with a better understanding of the complementary working styles within and across teams.

National Health Performance Authority | Annual Report 2013-14 49

Classification Total female Full-time Part-time *Ongoing **Non-ongoing

CEO 1 1 0 0 1

SES 1 0 0 0 0 0

EL2 8 7 1 7 1

EL1 12 11 1 9 3

APS6 6 5 1 6 0

APS5 4 4 0 3 1

APS4 0 0 0 0 0

APS3 0 0 0 0 0

TOTAL 31 28 3 25 6

Table 4: Employment classification and overview of Performance Authority staff at 30 June 2014

Staff numbers by classification at 30 June 2014 are based on actual not nominal classification.

* Ongoing employees at 30 June 2014 are employed by the Performance Authority.

** Non-ongoing staff includes staff members on temporary moves from other APS agencies including the Department of Health (DoH).

Female

Classification Total male Full-time Part-time *Ongoing **Non-ongoing

CEO 0 0 0 0 0

SES 1 1 1 0 1 0

EL2 6 6 0 6 0

EL1 10 9 1 7 3

APS6 4 4 0 4 0

APS5 0 0 0 0 0

APS4 0 0 0 0 0

APS3 0 0 0 0 0

TOTAL 21 20 1 18 3

Male

Classification Total Canberra Sydney

CEO 1 0 1

SES 1 1 0 1

EL2 14 3 11

EL1 22 7 15

APS6 10 1 9

APS5 4 0 4

APS4 0 0 0

APS3 0 0 0

TOTAL 52 11 41

All staff

Management and accountability: Management of human resources

Key CEO Chief Executive Officer SES Senior Executive Service EL Executive Level APS Australian Public Service

50 National Health Performance Authority | Annual Report 2013-14

Management and accountability: Management of human resources

Table 5: Employment classification and overview of Performance Authority staff at 30 June 2013

* Ongoing staff members at 30 June 2013 were APS employees of DoH, seconded to the Performance Authority under a memorandum of understanding.

** Non-ongoing staff includes staff members on temporary moves from other APS agencies including the Department of Health (DoH).

Key CEO Chief Executive Officer SES Senior Executive Service EL Executive Level APS Australian Public Service

Classification Total female Full-time Part-time *Ongoing **Non-ongoing

CEO 1 1 0 0 1

SES 1 2 2 0 2 0

EL2 8 8 0 5 3

EL1 13 10 3 9 4

APS6 4 3 1 3 1

APS5 3 3 0 2 1

APS4 0 0 0 0 0

APS3 0 0 0 0 0

TOTAL 31 27 4 21 10

Female

Classification Total male Full-time Part-time *Ongoing **Non-ongoing

CEO 0 0 0 0 0

SES 1 0 0 0 0 0

EL2 5 5 0 3 2

EL1 10 9 1 6 4

APS6 3 3 0 1 2

APS5 1 1 0 0 0

APS4 0 0 0 0 0

APS3 0 0 0 0 0

TOTAL 19 18 1 10 9

Male

Classification Total Canberra Sydney

CEO 1 0 1

SES 1 2 0 2

EL2 13 7 6

EL1 23 7 16

APS6 7 2 5

APS5 4 1 3

APS4 0 0 0

APS3 0 0 0

TOTAL 50 17 33

All staff

National Health Performance Authority | Annual Report 2013-14 51

Management and accountability: Management of human resources

Workplace relations Approval was given on 2 July 2013 to replace the inaugural determination made under section 24(1) of the Public Service Act 1999.

The agency’s section 24(1) Determination was again renewed on 1 May 2014 to ensure it remains in place until completion of Enterprise Agreement negotiations. This covers all non-Senior Executive Service (SES) staff.

SES officers are employed under the terms of a determination made under section 24 of the Public Service Act 1999. The remuneration received by SES officers is determined on an individual basis by the CEO.

Initial preparatory work commenced in 2013-14 on the development of a bargaining position for an Enterprise Bargaining Agreement in accordance with the Australian Government Public Sector Workplace Bargaining Policy.

Performance pay Performance pay totalling $56,537 was paid to four employees. A proportion of this was paid in 2013-14 for performance related to the previous period to maintain employment conditions while staff were on temporary movements from other agencies.

Work health and safety The agency is committed to fostering a proactive and collaborative approach to the management of employee health, safety and wellbeing.

In 2013-14, the agency’s Work Health and Safety Committee continued to manage work health and safety matters.

The agency reported no accidents, notifiable incidents or serious personal injury during the year, and no notices or directions under the Work Health and Safety Act 2011 were served.

Table 6: Australian Public Service salary ranges at 30 June 2014

Classification Minimum ($) Maximum ($)

EL2 112,992 133,777

EL1 94,705 108,013

APS6 77,067 86,943

APS5 68,843 74,451

APS4 64,229 67,865

APS3 56,691 62,837

52 National Health Performance Authority | Annual Report 2013-14

Employee assistance program During the year, the agency utilised the services of Optum, whose services include providing staff with confidential and personalised counselling for personal and vocational/professional matters. The services offered to staff include providing assistance with career planning, maximising performance and enhancing career potential, as well as assisting to manage challenges associated with health, family and the transition to retirement.

An information session on the employee assistance program was provided to staff by Optum.

Ethical standards The agency maintained its commitment to high ethical standards by reinforcing the Australian Public Service (APS) values and APS code of conduct.

Through its recruitment and induction processes, the agency promoted the APS values and APS code of conduct, with each employee completing a formal declaration committing to the demonstration of these behaviours throughout their employment with the agency.

Induction programs highlighted the importance of APS values and the code of conduct as a vehicle for instilling a positive, collaborative and professional workplace culture and establishing the agency as a leading APS employer.

During the year, there were no formal cases involving alleged breaches of the APS values or the APS code of conduct.

Management and accountability: Management of human resources

National Health Performance Authority | Annual Report 2013-14 53

Overview of financial performance

Departmental performance The Performance Authority recorded a 2013-14 operating surplus of $1.15 million under the net cash appropriation model introduced by the Australian Government in 2010-11. After the elimination of unfunded depreciation, the Performance Authority recorded an operating surplus of $1.48 million. This represents a 31% decrease in operating surplus from the previous year, reflecting the increase in agency activity as it transitioned from its establishment phase.

Total assets at 30 June 2014 were $6.239 million, primarily made up of appropriations receivable, and the Sydney head office leasehold improvements.

Total liabilities of $2.26 million were primarily related to employee entitlements and outstanding payments to providers.

Administered performance For the 2013-14 reporting period, total expenses administered on behalf of the Commonwealth were $10.12 million, including payments to providers to develop, maintain and enhance the MyHospitals and MyHealthyCommunities websites. Payments were also made for commissioning research and accessing data collected or held by

other organisations. This represents more than double the previous year’s expenditure due to the increase in agency activity as it transitioned from its establishment phase.

Administered assets and liabilities were minor, and comprised outstanding accounts payable and GST refunds receivable.

The resource summaries for the Performance Authority’s administered and departmental expenses are provided at Appendix 3.

54 National Health Performance Authority | Annual Report 2013-14

Mandatory information

Assets management The Performance Authority’s asset management strategy emphasises whole- of-life asset management and seeks to minimise holdings of surplus and underperforming assets.

The Performance Authority’s stocktake of fixed and intangible assets in 2013-14 confirmed their location and condition, and emphasised to custodial officers their responsibility to ensure the safe keeping of assets in their custody.

At 30 June 2014, the Performance Authority engaged external valuers to revalue the fixed assets and assess their fair value under Australian accounting standards.

Discussion of the assets administered by the Performance Authority in 2013-14 can be found in Section 5: Financial statements.

Purchasing In 2013-14, the Performance Authority complied with the Australian Government’s purchasing policies, with the exception of those instances reported in its Certificate of Compliance. Its procurement and purchasing activities were conducted in accordance with the Commonwealth Procurement Rules (CPRs) to ensure value for money, and efficient, effective, economical and ethical procurement outcomes.

Consultants In 2013-14, 14 new consultancy contracts were entered into, involving total actual expenditure of $130,111.95 (GST inclusive). In addition, one ongoing consultancy contract was active during the 2013-14 year, involving total actual expenditure of $11,740.30 (GST inclusive).

The Performance Authority engages consultants where it lacks specialist expertise or when independent research, review or assessment is required. Consultants are typically engaged to investigate or diagnose a defined issue or problem, carry out defined reviews or evaluation or provide independent advice, information or creative solutions to assist in the Performance Authority’s decision-making.

Information on the value of contracts and consultancies is available on the AusTender website at www.tenders.gov.au

Prior to engaging consultants, the Performance Authority takes into account the skills and resources required for the task, the skills available internally, and the cost-effectiveness of engaging external expertise. The decision to engage a consultant is made in accordance with the FMA Act and Regulations (including the CPRs) and relevant internal policies.

National Health Performance Authority | Annual Report 2013-14 55

Australian National Audit Office (ANAO) access clauses All the Performance Authority’s awarded contracts or Deeds of Standing Offer valued at $100,000 (GST inclusive) or greater, contain standard clauses granting the Auditor-General access to contractors’ premises.

Exempt contracts The Performance Authority did not enter into any contracts in 2013-14 that have been exempted under the Freedom of Information Act 1982 (FOI Act) from reporting on AusTender.

Advertising and market research In accordance with section 311A of the Commonwealth Electoral Act 1918, the Performance Authority is required to report on all payments over $12,400 (GST inclusive) to advertising agencies, market research organisations, polling organisations, media advertising organisations, public relations organisations and direct mail organisations.

The Performance Authority did not make payments over this threshold during the year.

Ecologically sustainable development and environmental performance The agency has continued to demonstrate a commitment to ecological and environmental sustainability during the reporting period.

Projects included adhering to already established specifications for the primary dissemination of the agency’s public reports through electronic media. Improvements in website functionality, and the increase in use of multi-channel strategies to disseminate information electronically assist the agency’s reduction in printed material.

Other initiatives included the management of paper and other consumables, with black and white and duplex printing being a standard setting.

Disability reporting Changes to disability reporting in annual reports

Since 1994, Australian Government departments and agencies have reported on their performance as policy adviser, purchaser, employer, regulator and provider under the Commonwealth Disability Strategy. In 2007-08, reporting on the employer role was transferred to the Australian Public Service Commission’s State of the Service Report and the APS Statistical Bulletin. These reports are available at www.apsc.gov.au

Management and accountability: Mandatory information

56 National Health Performance Authority | Annual Report 2013-14

From 2010-11, departments and agencies have no longer been required to report on these functions.

The Australian Government Disability Strategy has been overtaken by a new National Disability Strategy 2010-2020 which sets out a 10-year national policy framework for improving the lives of people with disability, promoting participation and creating a more inclusive society. A high-level two-yearly report will track progress against each of the six outcome areas of the Strategy and present a picture of how people with disability are faring. The first of these reports will be available in 2014, and will be available at www.dss.gov.au

Information publication scheme statement Agencies subject to the FOI Act are required to publish information to the public as part of the Information Publication Scheme (IPS). This requirement is in Part II of the FOI Act and has replaced the former requirement to publish a section 8 statement in an annual report. Each agency must display on its website a plan showing what information it publishes in accordance with the IPS requirements.

The Performance Authority’s current IPS information can be found at www.nhpa.gov.

au/internet/nhpa/publishing.nsf/Content/ Freedom-of-Information

Management and accountability: Mandatory information

Section 5:

Financial statements

This section contains a summary of the agency’s financial performance as well as the Performance Authority’s audited financial statements for 2013-14.

58 National Health Performance Authority | Annual Report 2013-14

National Health Performance Authority

Independent auditor’s report

National Health Performance Authority | Annual Report 2013-14 59

National Health Performance Authority

Independent auditor’s report

60 National Health Performance Authority | Annual Report 2013-14

National Health Performance Authority

Statement by the Chief Executive and Chief Financial Officer

In our opinion, the attached financial statements for the year ended 30 June 2014 are based on properly maintained financial records and give a true and fair view of the matters required by the Finance Minister’s Orders made under the Financial Management and Accountability Act 1997, as amended.

Dr Diane Watson Marion Sinclair

Chief Executive Officer Chief Financial Officer

22 September 2014 22 September 2014

National Health Performance Authority | Annual Report 2013-14 61

National Health Performance Authority

Statement of Comprehensive Income for the year ended 30 June 2014

2014 2013

Notes $’000 $’000

NET COST OF SERVICES Expenses Employee benefits 3A 7,426 5,921

Suppliers 3B 2,507 3,341

Depreciation 3C 334 193

Finance costs 3D 4 -

Write-down and impairment of assets 3E 9 -

Total expenses 10,280 9,455

Own-source income Gains Other gains 4A 45 35

Total gains 45 35

Total own-source income 45 35

Net cost of services 10,235 9,420

Revenue from Government 4B 11,379 11,390

Surplus on continuing operations 1,144 1,970

OTHER COMPREHENSIVE INCOME Items not subject to subsequent reclassification to net cost of services Changes in asset revaluation surplus 7 -

Total other comprehensive income 7 -

Total comprehensive income 1,151 1,970

The above statement should be read in conjunction with the accompanying notes.

62 National Health Performance Authority | Annual Report 2013-14

National Health Performance Authority

Statement of Financial Position as at 30 June 2014

2014 2013

Notes $’000 $’000

ASSETS Financial assets Cash and cash equivalents 6A 11 342

Trade and other receivables 6B 4,967 3,362

Total financial assets 4,978 3,704

Non-financial assets Land and buildings 7A, C 1,112 1,338

Property, plant and equipment 7B, C 149 173

Other non-financial assets 7D - 47

Total non-financial assets 1,261 1,558

TOTAL ASSETS 6,239 5,262

LIABILITIES Payables Suppliers 8A 433 785

Other payables 8B 756 851

Total payables 1,189 1,636

Provisions Employee provisions 9A 936 802

Other provisions 9B 135 96

Total provisions 1,071 898

TOTAL LIABILITIES 2,260 2,534

NET ASSETS 3,979 2,728

EQUITY Contributed equity 858 758

Reserves 7 -

Retained surplus 3,114 1,970

TOTAL EQUITY 3,979 2,728

The above statement should be read in conjunction with the accompanying notes.

National Health Performance Authority | Annual Report 2013-14 63

National Health Performance Authority Statement of Changes in Equity for the year ended 30 June 2014

Retained earnings Asset revaluation surplus Contributed equity/ capital

Total equity

2014 2013 2014 2013 2014 2013 2014 2013

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Opening balance

Balance carried forward from previous period 1,970 - - - 758 - 2,728 -

Adjusted opening balance 1,970 - - - 758 - 2,728 -

Comprehensive income

Surplus for the period 1,144 1,970 - - - - 1,144 1,970

Other comprehensive income - - 7 - - - 7 -

Total comprehensive income 1,144 1,970 7 - - - 1,151 1,970

Transaction with owners

Contributions by owners

Departmental capital budget - - - - 100 758 100 758

Total transactions with owners - - - - 100 758 100 758

Closing balance as at 30 June 3,114 1,970 7 - 858 758 3,979 2,728

The above statement should be read in conjunction with the accompanying notes.

64 National Health Performance Authority | Annual Report 2013-14

National Health Performance Authority

Cash Flow Statement for the year ended 30 June 2014

2014 2013

Notes $’000 $’000

OPERATING ACTIVITIES Cash received Appropriations 10,302 8,561

Net GST received 20 -

Other 773 864

Total cash received 11,095 9,425

Cash used Employees 6,792 4,928

Suppliers 3,665 3,277

Net GST paid - 27

Section 31 receipts transferred to Official Public Account 969 -

Total cash used 11,426 8,232

NET CASH FROM (USED BY) OPERATING ACTIVITIES 10 (331) 1,193

INVESTING ACTIVITIES Cash used Purchase of property, plant and equipment 49 1,609

Total cash used 49 1,609

NET CASH (USED BY) INVESTING ACTIVITIES (49) (1,609)

FINANCING ACTIVITIES Cash received

Contributed equity 49 758

Total cash received 49 758

NET CASH FROM FINANCING ACTIVITIES 49 758

Net increase (decrease) in cash held (331) 342

Cash and cash equivalents at the beginning of the reporting period 342 -

Cash and cash equivalents at the end of the reporting period 6A 11 342

The above statement should be read in conjunction with the accompanying notes.

National Health Performance Authority | Annual Report 2013-14 65

National Health Performance Authority

Schedule of Commitments as at 30 June 2014

2014 2013

$’000 $’000

BY TYPE Commitments receivable Net GST recoverable on commitments1 257 332

Total commitments receivable 257 332

Commitments payable Other commitments Operating leases2 2,611 3,006

Research and development - 106

Other 666 541

Total other commitments 3,277 3,653

Total commitments payable 3,277 3,653

NET COMMITMENTS BY TYPE 3,020 3,321

BY MATURITY Commitments receivable Net GST recoverable on commitments Within 1 year 79 93

Between 1 to 5 years 178 239

Total other commitments receivable 257 332

Commitments payable Operating lease commitments Within 1 year 651 594

Between 1 to 5 years 1,960 2,412

Total operating lease commitments2 2,611 3,006

Other commitments Within 1 year 666 426

Between 1 to 5 years - 221

Total other commitments3 666 647

NET COMMITMENTS BY MATURITY 3,020 3,321

Notes: 1 Commitments are GST inclusive where relevant.

2 Operating leases included are effectively non-cancellable. The National Health Performance Authority in its capacity as a lessee has a lease for office accommodation. Lease payments are subject to annual increase in accordance with upwards movements in the Consumer Price Index. The initial period of the office accommodation lease is still current and may be renewed for up to five years at the National Health Performance Authority’s option, following a once-off adjustment of rentals to current market levels.

3 The nature of other commitments relates to contracts for the provision of services not yet provided.

The above schedule should be read in conjunction with the accompanying notes.

66 National Health Performance Authority | Annual Report 2013-14

National Health Performance Authority

Administered Schedule of Comprehensive Income for the year ended 30 June 2014

2014 2013

Notes $’000 $’000

NET COST OF SERVICES Expenses Suppliers 16A 10,123 4,422

Total expenses 10,123 4,422

INCOME REVENUE Non-taxation revenue Other gains 17A - 1,402

Total revenue - 1,402

TOTAL INCOME - 1,402

Net cost of services 10,123 3,020

TOTAL COMPREHENSIVE INCOME (LOSS) (10,123) (3,020)

The above schedule should be read in conjunction with the accompanying notes.

National Health Performance Authority | Annual Report 2013-14 67

National Health Performance Authority

Administered Schedule of Assets and Liabilities as at 30 June 2014

2014 2013

Notes $’000 $’000

ASSETS Financial assets Cash and cash equivalents 18A - 9

Trade and other receivables 18B 129 193

Total financial assets 129 202

Total assets administered on behalf of Government 129 202

LIABILITIES Payables Suppliers 19A 816 698

Total payables 816 698

Total liabilities administered on behalf of Government 816 698

NET ASSETS (LIABILITIES) (687) (496)

The above schedule should be read in conjunction with the accompanying notes.

National Health Performance Authority

Administered Reconciliation Schedule as at 30 June 2014

2014 2013

$’000 $’000

Opening assets less liabilities as at 1 July (496) -

Net (cost of)/contribution by services Income - 1,402

Expenses (10,123) (4,422)

Transfers (to) from the Australian Government Appropriation transfers from Official Public Account Annual appropriations Payments to Non-CAC Act bodies 9,932 2,524

Closing assets less liabilities as at 30 June (687) (496)

The above schedule should be read in conjunction with the accompanying notes.

68 National Health Performance Authority | Annual Report 2013-14

National Health Performance Authority

Administered Cash Flow Statement for the year ended 30 June 2014

2014 2013

Notes $’000 $’000

OPERATING ACTIVITIES Cash received Net GST received 324 -

Total cash received 324 -

Cash used Suppliers 10,265 2,515

Total cash used 10,265 2,515

Net cash flows (used by) operating activities 20 (9,941) (2,515)

Net (decrease) in cash held (9,941) (2,515)

Cash and cash equivalents at the beginning of the reporting period 9 -

Cash from Official Public Account Appropriations 9,932 2,524

Total cash from official public account 9,932 2,524

Cash and cash equivalents at the end of the reporting period 18A - 9

The above schedule should be read in conjunction with the accompanying notes.

National Health Performance Authority | Annual Report 2013-14 69

National Health Performance Authority

Schedule of Administered Commitments as at 30 June 2014

2014 2013

$’000 $’000

BY TYPE Commitments receivable Net GST recoverable on commitments1 528 151

Total commitments receivable 528 151

Commitments payable Other commitments Other 6,651 5,763

Total other commitments2 6,651 5,763

NET COMMITMENTS BY TYPE 6,123 5,612

BY MATURITY Commitments receivable Net GST recoverable on commitments Within 1 year 337 151

Between 1 to 5 years 191 -

Total other commitments receivable 528 151

Commitments payable Other commitments Within 1 year 4,552 5,163

Between 1 to 5 years 2,099 600

Total other commitments2 6,651 5,763

NET COMMITMENTS BY MATURITY 6,123 5,612

Notes: 1 All commitments are GST inclusive where relevant.

2 Other commitments comprise contracts for the provision of research and reporting services.

The above schedule should be read in conjunction with the accompanying notes.

70 National Health Performance Authority | Annual Report 2013-14

Table of Contents — Notes Note 1: Summary of Significant Accounting Policies . . 72

Note 2: Events After the Reporting Period . . . . . . . . . . . 83

Note 3: Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

Note 4: Own-Source Income . . . . . . . . . . . . . . . . . . . . . . . 86

Note 5: Fair Value Measurements . . . . . . . . . . . . . . . . . . 87

Note 6: Financial Assets . . . . . . . . . . . . . . . . . . . . . . . . . . 90

Note 7: Non-Financial Assets . . . . . . . . . . . . . . . . . . . . . . 91

Note 8: Payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94

Note 9: Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

Note 10: Cash Flow Reconciliation . . . . . . . . . . . . . . . . . 96

Note 11: Contingent Assets and Liabilities . . . . . . . . . . . 97

Note 12: Senior Executive Remuneration . . . . . . . . . . . . 98

Note 13: Remuneration of Auditors . . . . . . . . . . . . . . . . 101

Note 14: Financial Instruments . . . . . . . . . . . . . . . . . . . . 102

Note 15: Financial Assets Reconciliation . . . . . . . . . . . 104

Note 16: Administered - Expenses . . . . . . . . . . . . . . . . 105

Note 17: Administered - Income . . . . . . . . . . . . . . . . . . . 105

Note 18: Administered - Financial Assets . . . . . . . . . . . 106

Note 19: Administered - Payables . . . . . . . . . . . . . . . . . 107

Note 20: Administered - Cash Flow Reconciliation . . 108

Note 21: Administered - Contingent Assets and Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109

Note 22: Administered - Financial Instruments . . . . . . 109

Note 23: Administered Financial Assets Reconciliation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111

National Health Performance Authority | Annual Report 2013-14 71

Note 24: Appropriations . . . . . . . . . . . . . . . . . . . . . . . . . 112

Note 25: Compensation and Debt Relief . . . . . . . . . . . . 118

Note 26: Compliance with Statutory Conditions for Payments from the Consolidated Revenue Fund . 119

Note 27: Reporting of Outcomes . . . . . . . . . . . . . . . . . . 120

Note 28: Net Cash Appropriation Arrangements . . . . . 121

Financial Statements: Table of Contents - Notes National Health Performance Authority

72 National Health Performance Authority | Annual Report 2013-14

1.1 Objectives of the National Health Performance Authority

The National Health Performance Authority (the Performance Authority) is an Australian Government agency which was established on 21 October 2011 with the principal role of developing high quality, locally relevant and nationally consistent reports on the performance of Local Hospital Networks, public hospitals, private hospitals and primary health care organisations. Public reporting is delivered in line with the Performance and Accountability Framework, and aims to increase accountability and drive continuous improvement in delivery of health care services. The Performance Authority is a not-for-profit entity.

The Performance Authority is structured to meet one outcome:

Outcome 1: Contribute to transparent and accountable health care services in Australia, including through the provision of independent performance monitoring and reporting; the formulation of performance indicators; and conducting and evaluating research.

The continued existence of the Performance Authority in its present form, and with its present programs, is dependent on

Government policy, the enabling legislation National Health Reform Act 2011, and on continuing funding by Parliament for the Performance Authority’s administration and programs. The 2014-15 Budget proposed the merger of the Performance Authority with a number of other Commonwealth entities to create a new health productivity and performance commission. This is subject to consultation with States and Territories and currently no further details are provided on the role or timeframe for creation of the merged entity.

The Performance Authority activities contributing to this outcome are classified as either departmental or administered. Departmental activities involve the use of assets, liabilities, income and expenses controlled or incurred by the Performance Authority in its own right. Administered activities involve the management or oversight by the Performance Authority, on behalf of the Government, of items controlled or incurred by the Government.

The Performance Authority conducts the following administered activities on behalf of the Government: production of high quality reports on health system performance; ensuring meaningful performance reporting

National Health Performance Authority Notes to and forming part of the Financial Statements for the year ended 30 June 2014

Note 1: Summary of Significant Accounting Policies

National Health Performance Authority | Annual Report 2013-14 73

through comprehensive planning and improving the Australian community’s access to performance information.

Details of planned activities for the year can be found in the Agency Portfolio Budget Statements for 2013-14 which have been tabled in Parliament.

1.2 Basis of Preparation of the Financial Statements

The financial statements are general purpose financial statements and are required by Section 49 of the Financial Management and Accountability Act 1997.

The financial statements have been prepared in accordance with:

• Finance Minister’s Orders (FMOs) for reporting periods ending on or after 1 July 2011; and

• Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.

The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except for certain assets and liabilities at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.

The financial statements are presented in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise specified.

Unless an alternative treatment is specifically required by an accounting standard or the FMOs, assets and liabilities are recognised in the statement of financial position when and only when it is probable that future economic benefits will flow to the Performance Authority or a future sacrifice of economic benefits will be required and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under executor contracts are not recognised unless required by an accounting standard. Liabilities and assets that are unrecognised are reported in the schedule of commitments or the schedule of contingencies.

Unless alternative treatment is specifically required by an accounting standard, income and expenses are recognised in the statement of comprehensive income when and only when the flow, consumption or loss of economic benefits has occurred and can be reliably measured.

The Performance Authority did not have an appropriation under Section 32 of the Financial Management and Accountability Act 1997 until 22 November 2012. Departmental items incurred prior to this date were initially paid by the Department of Health (DoH), and subsequently reimbursed by the Performance Authority, following the above transfer.

Financial Statements: Note 1 National Health Performance Authority

74 National Health Performance Authority | Annual Report 2013-14

Administered expenses incurred prior to this date were paid by DoH, and recognised as resources received free of charge in the Performance Authority’s 2012-13 statements. There were no such expenses incurred during the year ended 30 June 2014.

1.3 Significant Accounting Judgments and Estimates

In the process of applying the accounting policies listed in this note, the Performance Authority has made a judgement that has a significant impact on the amounts recorded in the financial statements: the fair value of leasehold improvements has been taken to be the market value of similar properties as determined by an independent valuer.

No accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next reporting period.

1.4 New Australian Accounting Standards Adoption of New Australian Accounting Standard Requirements

No accounting standard has been adopted earlier than the application date as stated in the standard.

The following standards that were issued prior to the sign-off date were applicable to the current reporting period and had a material effect on the Performance Authority’s financial statements:

• AASB 13 Fair Value Measurement

• AASB 119 Employee Benefits.

All other new standards, revised standards, interpretations or amending standards that were issued prior to the sign-off date and are applicable to the current reporting period did not have a material effect, and are not expected to have a material effect, on the Performance Authority’s financial statements.

Future Australian Accounting Standard Requirements

The following new standards were issued by the Australian Accounting Standards Board prior to the sign-off date, which are expected to have a material impact on the Performance Authority’s financial statements for future reporting period(s):

• AASB 1055 Budgetary Reporting

• AASB 9 Financial Instruments.

All other new standards, revised standards, interpretations or amending standards that were issued prior to the sign-off date and are applicable to future reporting period(s) are not expected to have a future material impact on the Performance Authority’s financial statements.

Financial Statements: Note 1 National Health Performance Authority

National Health Performance Authority | Annual Report 2013-14 75

Financial Statements: Note 1 National Health Performance Authority

1.5 Revenue

Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. The revenue is recognised when:

a) the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and

b) the probable economic benefits associated with the transaction will flow to the Performance Authority.

The stage of completion of contracts at the reporting date is determined by reference to services performed to date as a percentage of total services to be performed.

Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance. Collectability of debts is reviewed at end of reporting period. Allowances are made when collectability of the debt is no longer probable.

Interest revenue is recognised using the effective interest method as set out in AASB 139 Financial Instruments: Recognition and Measurement.

Revenue from Government

Amounts appropriated for departmental appropriations for the year (adjusted for any formal additions and reductions) are recognised as Revenue from Government when the Performance Authority gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case, revenue is recognised only when it has been earned. Appropriations receivable are recognised at their nominal amounts.

1.6 Gains Resources Received Free of Charge

Resources received free of charge are recognised as gains when and only when a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense.

Resources received free of charge are recorded as either revenue or gains depending on their nature.

Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their fair value when the asset qualifies for recognition, unless received from another Government entity as a consequence of a restructuring of administrative arrangements (refer to Note 1.7).

76 National Health Performance Authority | Annual Report 2013-14

1.7 Transactions with the Government as Owner Equity injections

Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) and Departmental Capital Budgets (DCBs) are recognised directly in contributed equity in that year.

1.8 Employee benefits

Liabilities for ‘short term employee benefits’ (as defined in AASB 119 Employee Benefits) and termination benefits expected within twelve months of the end of reporting period are measured at their nominal amounts.

The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.

Other long-term employee benefits are measured as net total of the present value of the defined benefit obligation at the end of the reporting period minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligations are to be settled directly.

Leave

The liability for employee entitlements includes provision for annual leave and long service 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 by employees of the Performance Authority is estimated to be less than the annual entitlement for sick leave.

The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will be applied at the time the leave is taken, including the Performance Authority’s employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.

The liability for long service leave has been determined by reference to the work of an actuary as at May 2011. An actuary is engaged every three years to reassess the leave liability. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

Superannuation

The Performance Authority’s staff are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS) or the PSS Accumulation Plan (PSSap) and various non-Commonwealth superannuation schemes.

The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap and other superannuation schemes are defined contribution schemes.

Financial Statements: Note 1 National Health Performance Authority

National Health Performance Authority | Annual Report 2013-14 77

Financial Statements: Note 1 National Health Performance Authority

The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported in the Department of Finance’s administered schedules and notes.

The Performance Authority makes employer contributions to the employees’ superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the Government. The Performance Authority accounts for the contributions as if they were contributions to defined contribution plans.

The liability for superannuation recognised as at 30 June represents outstanding contributions for the final fortnight of the year.

1.9 Leases

A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and rewards incidental to ownership of leased assets. An operating lease is a lease that is not a finance lease. In operating leases, the lessor effectively retains substantially all such risks and benefits.

Operating lease payments are expensed on a straight line basis which is representative of the pattern of benefits derived from the leased assets.

The Performance Authority does not have any finance leases.

Lease Incentives

Lease incentives taking the form of ‘free’ leasehold improvements and rent holidays are recognised as liabilities. These liabilities are reduced on a straight-line basis by allocating lease payments between rental expense and reduction of the lease incentive liability.

Provision for Restoration Obligation

Where the Performance Authority has a contractual obligation to undertake remedial work upon vacating its leased property, the estimated cost of that work is recognised as a liability. An equal value asset is created at the same time and amortised over the life of the lease of the underlying leasehold property.

1.10 Fair Value Measurement

The Performance Authority deems transfers between levels of the fair value hierarchy to have occurred at the end of the reporting period.

1.11 Cash

Cash is recognised at its nominal amount. Cash and cash equivalents includes:

a) cash on hand; and

b) demand deposits in bank accounts with an original maturity of 3 months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value.

78 National Health Performance Authority | Annual Report 2013-14

1.12 Financial Assets

The Performance Authority classifies its financial assets as loans and receivables.

The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Financial assets are recognised and derecognised upon trade date.

Effective Interest Method

The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or, where appropriate, a shorter period.

Income is recognised on an effective interest rate basis.

Loans and Receivables

Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. Loans and receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate.

Impairment of Financial Assets

Financial assets are assessed for impairment at the end of each reporting period.

Financial assets carried at amortised cost - if there is objective evidence that an impairment loss has been incurred for loans and receivables, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective interest rate. The carrying amount is reduced by way of an allowance account. The loss is recognised in the statement of comprehensive income.

1.13 Financial Liabilities

Financial liabilities are classified as other financial liabilities. Financial liabilities are recognised and derecognised upon ‘trade date’.

Other Financial Liabilities

Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. These liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.

Financial Statements: Note 1 National Health Performance Authority

National Health Performance Authority | Annual Report 2013-14 79

Financial Statements: Note 1 National Health Performance Authority

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period.

Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).

1.14 Contingent Liabilities and Contingent Assets

Contingent liabilities and contingent assets are not recognised in the statement of financial position but are reported in the relevant schedules and notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.

There are no quantifiable contingencies in either the current or immediately preceding reporting periods. Information on significant remote contingencies and contingencies that cannot be quantified is disclosed in Note 11: Contingent Assets and Liabilities.

1.15 Acquisition of Assets

Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate.

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor’s accounts immediately prior to the restructuring.

1.16 Property, Plant and Equipment

Asset Recognition Threshold

Purchases of property, plant and equipment are recognised initially at cost in the statement of financial position, except for purchases costing less than $2,000 which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).

80 National Health Performance Authority | Annual Report 2013-14

The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to ‘make good’ provisions in property leases taken up by the Performance Authority where there exists an obligation to restore the property to its original condition. These costs are included in the value of the Performance Authority’s leasehold improvements with a corresponding provision for the ‘make good’ recognised.

Revaluations

Following initial recognition at cost, property, plant and equipment were carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. Valuations were conducted with sufficient frequency to ensure that the carrying amounts of assets did not differ materially from the assets’ fair values as at the reporting date. The regularity of independent valuations depended upon the volatility of movements in market values for the relevant assets.

Revaluation adjustments were made on a class basis. Any revaluation increment was credited to equity under the heading of asset revaluation reserve except to the

Financial Statements: Note 1

extent that it reversed a previous revaluation decrement of the same asset class that was previously recognised in the surplus/deficit. Revaluation decrements for a class of assets were recognised directly in the surplus/deficit except to the extent that they reversed a previous revaluation increment for that class.

Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount.

Depreciation

Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the Performance Authority using, in all cases, the straight-line method of depreciation.

Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.

Depreciation rates applying to each class of depreciable asset are based on the following useful lives:

National Health Performance Authority

Asset class 2014 2013

Infrastructure, Plant and Equipment 4 to 9 years 4 to 9 years

Leasehold improvements Lease term Lease term

National Health Performance Authority | Annual Report 2013-14 81

Financial Statements: Note 1 National Health Performance Authority

Impairment

All assets were assessed for impairment at 30 June 2014. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.

The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the Performance Authority were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

Derecognition

An item of property, plant and equipment is derecognised upon disposal or when no further economic benefits are expected from its use or disposal.

1.17 Taxation

The Performance Authority is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST).

Revenues, expenses, liabilities and assets are recognised net of GST except:

a) where the amount of the GST incurred is not recoverable from the Australian Taxation Office; and

b) for receivables and payables.

1.18 Impact of Williams v Commonwealth

The Australian Government continues to have regard to developments in case law, including the High Court’s most recent decision on Commonwealth expenditure in Williams v Commonwealth (2014) HCA 23, as they contribute to the larger body of law relevant to the development of Commonwealth programs. In accordance with its general practice, the Government will continue to monitor and assess risk and decide on any appropriate actions to respond to risks of expenditure not being consistent with constitutional or other legal requirements.

82 National Health Performance Authority | Annual Report 2013-14

Financial Statements: Note 1 National Health Performance Authority

1.19 Reporting of Administered Activities

Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the administered schedules and related notes.

Except where otherwise stated below, administered items are accounted for on the same basis and using the same policies as for departmental items, including the application of Australian Accounting Standards.

Administered Cash Transfers to and from the Official Public Account

Revenue collected by the Performance Authority for use by the Government rather than the Performance Authority is administered revenue. Collections are transferred to the Official Public Account (OPA) maintained by the Department of Finance. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of Government. These transfers to and from the OPA are adjustments to the administered cash held by the Performance Authority on behalf of the Government and reported as such in the schedule of administered cash flows and in the administered reconciliation schedule.

Revenue

All administered revenues are revenues relating to the course of ordinary activities performed by the Performance Authority on behalf of the Australian Government. As such, administered appropriations are not revenues of the individual entity that oversees distribution or expenditure of the funds as directed.

Loans and Receivables

Where loans and receivables are not subject to concessional treatments, they are carried at amortised cost using the effective interest method. Gains and losses due to impairment, derecognition and amortisation are recognised through profit and loss.

Suppliers

Administered suppliers are comprised of the provision of research and reporting services directly associated with providing health performance information to the community.

National Health Performance Authority | Annual Report 2013-14 83

National Health Performance Authority Notes to and forming part of the Financial Statements for the year ended 30 June 2014

Note 2: Events After the Reporting Period Departmental

There was no subsequent event that had the potential to significantly affect the ongoing structure and financial activities of the Performance Authority.

Administered

There was no subsequent event that had the potential to significantly affect the ongoing structure and financial activities of the Performance Authority.

84 National Health Performance Authority | Annual Report 2013-14

2014 2013

$’000 $’000

Note 3A: Employee Benefits Wages and salaries 5,409 4,437

Superannuation Defined contribution plans 730 538

Defined benefit plans 238 182

Leave and other entitlements 1,044 764

Separation and redundancies 5 -

Total employee benefits 7,426 5,921

Note 3B: Suppliers Goods and services supplied or rendered Consultants 44 100

Contractors 403 726

IT services 298 569

Travel 241 359

Property maintenance 65 45

Recruitment costs 109 372

Office supplies and stationery 101 102

Other 490 453

Total goods and services supplied or rendered 1,751 2,726

Goods and services supplied or rendered in connection with Supply of goods - External parties 53 102

Rendering of services - Related parties 1,018 549

Rendering of services - External parties 680 2,075

Total goods and services supplied or rendered 1,751 2,726

Other suppliers Operating lease rentals in connection with

External parties Minimum lease payments 683 591

Contingent rentals 7 -

Workers’ compensation expenses 66 24

Total other suppliers 756 615

Total suppliers 2,507 3,341

National Health Performance Authority Notes to and forming part of the Financial Statements for the year ended 30 June 2014

Note 3: Expenses

National Health Performance Authority | Annual Report 2013-14 85

Financial Statements: Note 3 National Health Performance Authority

2014 2013

$’000 $’000

Note 3C: Depreciation and Amortisation Depreciation Property, plant and equipment 60 35

Leasehold improvements 274 158

Total depreciation and amortisation 334 193

Note 3D: Finance Costs Unwinding of discount 4 -

Total finance costs 4 -

Note 3E: Write-Down and Impairment of Assets Revaluation decrements

Property, plant and equipment 9 -

Total write-down and impairment of assets 9 -

86 National Health Performance Authority | Annual Report 2013-14

2014 2013

$’000 $’000

GAINS Note 4A: Other Gains Resources received free of charge 45 35

Total other gains 45 35

Note 4B: Revenue from Government Appropriations Departmental appropriations 11,379 11,390

Total revenue from Government 11,379 11,390

National Health Performance Authority Notes to and forming part of the Financial Statements for the year ended 30 June 2014

Note 4: Own-Source Income

National Health Performance Authority | Annual Report 2013-14 87

National Health Performance Authority Notes to and forming part of the Financial Statements for the year ended 30 June 2014

Note 5: Fair Value Measurements The following tables provide an analysis of assets and liabilities that are measured at fair value. The

different levels of the fair value hierarchy are defined below.

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can

access at measurement date.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or

liability, either directly or indirectly.

Level 3: Unobservable inputs for the asset or liability.

Note 5A: Fair Value Measurements

Fair value measurements at the end of the reporting period by hierarchy for assets and

liabilities in 2014

Fair value measurements at the end of the

reporting period using

Fair value

$’000

Level 1 inputs

$’000

Level 2 inputs

$’000

Level 3 inputs

$’000

Non-financial assets

Leasehold improvements 1,112 - - 1,112

Property, plant and equipment 149 - 149 -

Total non-financial assets 1,261 - 149 1,112

Assets not measured at fair value in the statement of financial position:

Non-financial assets 1 - - - -

Total fair value measurements of assets in the statement of financial position 1,261 - 149 1,112

Note:

1 The Performance Authority did not measure any non-financial assets at fair value on a non-recurring basis as at 30 June 2014.

Fair value measurements - highest and best use differs from current use for non-financial assets (NFAs) The Performance Authority’s assets are held for operational purposes and not held for the purposes of deriving a profit. The current use of all controlled assets is considered their highest and best use.

88 National Health Performance Authority | Annual Report 2013-14

Financial Statements: Note 5 National Health Performance Authority

Note 5B: Valuation Technique and Inputs for Level 2 and Level 3 Fair Value Measurements

Level 2 and 3 fair value measurements - valuation technique and the inputs used for assets

and liabilities in 2014

Category (Level 2 or Level 3)

Fair value

Valuation technique(s)1 Inputs used Range

(weighted average)2

Non-financial assets

Leasehold

improvements (Fitout)

Level 3 1,112 Depreciated

Replacement Cost (DRC)

Replacement Cost New (price per square metre)

N/A

Consumed economic benefit / Obsolescence of asset

6.25% -10.00% (9.87%) per annum

Property, plant and

equipment

Level 2 149 Market

Approach Adjusted market transactions

N/A

Notes:

1 No change in valuation technique occurred during the period.

2 Significant unobservable inputs only. Not applicable for assets or liabilities in the Level 2 category.

There were no significant inter-relationships between unobservable inputs that materially affect fair value.

Recurring and non-recurring Level 3 fair value measurements - valuation processes This is the first time the Performance Authority has undertaken a comprehensive valuation of all its non-financial assets. The Performance Authority tests the procedures of the valuation model as an internal management review at least once every 12 months (with a formal revaluation undertaken once every three years). If a particular asset class experiences significant and volatile changes in fair value (i.e. where indicators suggest that the value of the class has changed materially since the previous reporting period), that class is subject to specific valuation in the reporting period, where practicable, regardless of the timing of the last specific valuation. The Performance Authority has engaged Australian Valuation Solutions (AVS) to provided written assurance that the models developed comply with AASB 13.

Significant Level 3 inputs utilised by the Performance Authority are derived and evaluated as follows:

Leasehold Improvements - Consumed economic benefit/obsolescence of asset Assets that do not transact with enough frequency or transparency to develop objective opinions of value from observable market evidence have been measured utilising the cost (Depreciated Replacement Cost or DRC) approach. Under the DRC approach, the estimated cost to replace the asset is calculated and then adjusted to take into account its consumed economic benefit/asset obsolescence (accumulated depreciation). Consumed economic benefit / asset obsolescence has been determined based on professional judgment regarding physical, economic and external obsolescence factors relevant to the asset under consideration.

National Health Performance Authority | Annual Report 2013-14 89

Financial Statements: Note 5 National Health Performance Authority

Leasehold Improvements - Current restoration costs, indexation rates and discount rate Applicable makegood provisions have been determined in accordance with Australian Guidance Note 2010/1 Accounting for Decommissioning, Restoration and Similar Provisions (‘Make Good’). Current restoration costs have been established based on analysed transactions, costing publications and industry sources. Current restoration costs have been indexed to the obligation date (generally the expiry of the lease term) using industry building cost indexes relevant to the asset’s city and then discounted, where the time value of money is material, using the Australian government 10-year bond rate. The estimated provision is depreciated in line with the corresponding leasehold improvement asset.

Recurring Level 3 fair value measurements - sensitivity of inputs Leasehold Improvements - Consumed economic benefit/obsolescence of asset The significant unobservable inputs used in the fair value measurement of the Performance Authority’s leasehold improvements asset class relate to the consumed economic benefit/asset obsolescence. A significant increase (decrease) in this input would result in a significantly lower (higher) fair value measurement.

Leasehold Improvements - Current restoration costs, indexation rates and discount rate The significant unobservable inputs used in the fair value measurement of the Performance Authority’s leasehold restoration cost (Make Good) asset class relate to the current restoration costs, escalation rates and discount rates. A significant increase (decrease) in this cost and (or) escalation rates and decrease (increase) in the discount rate would result in a significantly higher (lower) fair value measurement.

Note 5C: Reconciliation for Recurring Level 3 Fair Value Measurements

Non-financial assets

Leasehold improvements Total

2014 $’000

2014 $’000

Opening balance1 1,338 1,338

Total gains/(losses) in accumulated depreciation (226) (226)

Closing balance 1,112 1,112

Changes in unrealised gains (losses) recognised - -

Notes:

1 Opening balance as determined in accordance with AASB 13. 2 There have been no transfers between levels of the hierarchy during the year.

The Performance Authority’s policy for determining when transfers between levels are deemed to have occurred can be found in Note 1.

90 National Health Performance Authority | Annual Report 2013-14

National Health Performance Authority Notes to and forming part of the Financial Statements for the year ended 30 June 2014

Note 6: Financial Assets 2014 2013

$’000 $’000

Note 6A: Cash and Cash Equivalents Cash on hand or on deposit 11 342

Total cash and cash equivalents 11 342

Note 6B: Trade and Other Receivables Appropriations receivables Existing programs 4,925 2,829

Total appropriations receivables 4,925 2,829

Other receivables Statutory receivables 34 54

Other 8 479

Total other receivables 42 533

Total trade and other receivables (net) 4,967 3,362

Trade and other receivables (net) are expected to be recovered No more than 12 months 4,967 3,362

Total trade and other receivables (net) 4,967 3,362

Trade and other receivables (gross) aged as follows Not overdue 4,967 3,362

Total trade and other receivables (gross) 4,967 3,362

Credit terms for good and services were within 30 days (2013: 30 days).

National Health Performance Authority | Annual Report 2013-14 91

National Health Performance Authority Notes to and forming part of the Financial Statements for the year ended 30 June 2014

Note 7: Non-Financial Assets 2014 2013

$’000 $’000

Note 7A: Land and Buildings Leasehold Improvements

Fair value 1,112 1,496

Accumulated depreciation - (158)

Total leasehold improvements 1,112 1,338

No indicators of impairment were found for leasehold improvements.

No leasehold improvements are expected to be sold or disposed of within the next 12 months.

Note 7B: Property, Plant and Equipment Other property, plant and equipment Fair value 149 208

Accumulated depreciation - (35)

Total property, plant and equipment 149 173

No indicators of impairment were found for property, plant and equipment.

No property, plant or equipment is expected to be sold or disposed of within the next 12 months.

Revaluations of non-financial assets

All revaluations were conducted in accordance with the revaluation policy stated at Note 1. On 30 June

2014, an independent valuer conducted the revaluations.

Revaluation increments of $39,497 for leasehold improvements (2013: $nil) and increments of $5,327

for plant and equipment (2013: $nil) were credited to the asset revaluation surplus by asset class

and included in the equity section of the statement of financial position. Decrements of $8,860 were

expensed (2013: $nil).

92 National Health Performance Authority | Annual Report 2013-14

Note 7C: Reconciliation of the Opening and Closing Balances of Property, Plant

and Equipment 2014

Leasehold

improvements

Other

property, plant and equipment Total $’000 $’000 $’000

As at 1 July 2013 Gross book value 1,496 208 1,704

Accumulated depreciation and impairment (158) (35) (193)

Net book value 1 July 2013 1,338 173 1,511

Additions Purchase or internally developed 9 40 49

Revaluations recognised in other comprehensive income 39 5 44

Revaluations recognised in net cost of services - (9) (9)

Depreciation (274) (60) (334)

Net book value 30 June 2014 1,112 149 1,261

Net book value as of 30 June 2014 represented by Gross book value 1,112 149 1,261

Accumulated depreciation and impairment - - -

1,112 149 1,261

Reconciliation of the Opening and Closing Balances of Property, Plant

and Equipment 2013

As at 1 July 2012 Gross book value - - -

Accumulated depreciation and impairment - - -

Net book value 1 July 2012 - - -

Additions Purchase or internally developed 1,400 208 1,608

Recognition of restoration provisions 96 - 96

Depreciation (158) (35) (193)

Net book value 30 June 2013 1,338 173 1,511

Net book value as of 30 June 2013 represented by Gross book value 1,496 208 1,704

Accumulated depreciation and impairment (158) (35) (193)

1,338 173 1,511

Financial Statements: Note 7 National Health Performance Authority

National Health Performance Authority | Annual Report 2013-14 93

Financial Statements: Note 7 National Health Performance Authority

2014 2013

$’000 $’000

Note 7D: Other Non-Financial Assets Prepayments - 47

Total other non-financial assets - 47

Other non-financial assets expected to be recovered No more than 12 months - 47

Total other non-financial assets - 47

No indicators of impairment were found for other non-financial assets.

94 National Health Performance Authority | Annual Report 2013-14

2014 2013

$’000 $’000

Note 8A: Suppliers Trade creditors and accruals 433 785

Total suppliers 433 785

Suppliers expected to be settled

No more than 12 months 433 785

Total suppliers 433 785

Suppliers in connection with Related entities 348 618

External parties 85 167

Total suppliers 433 785

Settlement was usually made within 30 days.

Note 8B: Other Payables Wages and salaries 158 134

Superannuation 28 22

Lease incentive 545 684

Other 25 11

Total other payables 756 851

Total other payables expected to be settled No more than 12 months 350 306

More than 12 months 406 545

Total other payables 756 851

National Health Performance Authority Notes to and forming part of the Financial Statements for the year ended 30 June 2014

Note 8: Payables

National Health Performance Authority | Annual Report 2013-14 95

2014 2013

$’000 $’000

Note 9A: Employee Provisions Leave 936 802

Total employee provisions 936 802

Employee provisions expected to be settled No more than 12 months 385 305

More than 12 months 551 497

Total employee provisions 936 802

Note 9B: Other Provisions Provision for restoration 135 96

Total other provisions 135 96

Other provisions expected to be settled More than 12 months 135 96

Total other provisions 135 96

Provision for restoration $’000

Total $’000

As at 1 July 2013 96 96

Additional provisions made 35 35

Unwinding of discount or change in discount rate 4 4

Total as at 30 June 2014 135 135

The Performance Authority currently has 1 (2013: 1) agreement for the leasing of premises which have provisions requiring the Performance Authority to restore the premises to their original condition at the conclusion of the lease. The Performance Authority has made a provision to reflect the present value of this obligation.

National Health Performance Authority Notes to and forming part of the Financial Statements for the year ended 30 June 2014

Note 9: Provisions

96 National Health Performance Authority | Annual Report 2013-14

2014 2013

$’000 $’000

Reconciliation of cash and cash equivalents as per statement of financial position to cash flow statement

Cash and cash equivalents as per Cash flow statement and statement of financial position 11 342

Reconciliation of net cost of services to net cash from (used by) operating activities Net (cost) of services (10,235) (9,420)

Revenue from Government 11,379 11,390

Adjustments for non-cash items Depreciation/amortisation 334 193

Net write-down of assets 13 -

Movements in assets and liabilities Assets

(Increase) Decrease in net receivables (1,605) (3,362)

(Increase) Decrease in prepayments 47 (47)

Liabilities

Increase (Decrease) in employee provisions 134 802

Increase (Decrease) in supplier payables (342) 785

Increase (Decrease) in other payables (96) 852

Increase (Decrease) in other provisions 40 -

Net cash from (used by) operating activities (331) 1,193

National Health Performance Authority Notes to and forming part of the Financial Statements for the year ended 30 June 2014

Note 10: Cash Flow Reconciliation

National Health Performance Authority | Annual Report 2013-14 97

National Health Performance Authority Notes to and forming part of the Financial Statements for the year ended 30 June 2014

Note 11: Contingent Assets and Liabilities Quantifiable Contingencies

There were no quantifiable contingent assets or liabilities in this reporting period (2013: nil).

Unquantifiable Contingencies

There were no unquantifiable contingent assets or liabilities in this reporting period (2013: nil).

Significant Remote Contingencies

There were no significant remote contingent assets or liabilities in this reporting period (2013: nil).

98 National Health Performance Authority | Annual Report 2013-14

National Health Performance Authority Notes to and forming part of the Financial Statements for the year ended 30 June 2014

Note 12: Senior Executive Remuneration 2014 2013

$ $

Note 12A: Senior Executive Remuneration Expenses for the Reporting Period

Short-term employee benefits Salary 220,355 245,102

Other 52,579 53,937

Total short-term employee benefits 272,934 299,039

Post-employment benefits Superannuation 37,657 38,645

Total post-employment benefits 37,657 38,645

Other long-term employee benefits Annual leave accrued 23,869 14,368

Long-service leave 4,940 3,392

Total other long-term employee benefits 28,809 17,760

Total senior executive remuneration expenses 339,400 355,444

Notes: 1 Note 12A is prepared on an accrual basis. 2 Note 12A excludes acting arrangements and part-year service where total remuneration expensed for a senior executive was less than $195,000.

National Health Performance Authority | Annual Report 2013-14 99

Note 12B: Average Annual Reportable Remuneration Paid to Substantive Senior Executives

During the Reporting Period

Average annual reportable remuneration paid to substantive senior executives in 2014

Average annual reportable remuneration1

Substantive senior executives Reportable

salary2

Contributed super-annuation3 Reportable

allowances4 Bonus paid5

Total

reportable remuneration

no. $ $ $ $ $

Total reportable remuneration (including part-time arrangements):

Less than $195,000 2 147,394 17,573 502 - 165,469

$315,000 to $344,999 1 296,168 37,513 - - 333,681

Total number of substantive senior executives

3

Average annual reportable remuneration paid to substantive senior executives in 2013

Average annual reportable remuneration1

Substantive senior executives Reportable

salary2

Contributed super-annuation3 Reportable

allowances4 Bonus paid5

Total

reportable remuneration

no. $ $ $ $ $

Total reportable remuneration (including part-time arrangements):

Less than $195,000 1 92,490 8,315 - - 100,805

$315,000 to $344,999 1 305,175 38,691 - - 343,866

Total number of substantive senior executives

2

Notes:

1 This table reports substantive senior executives who received remuneration during the reporting period. Each row is an averaged figure based on headcount for individuals in the band.

2 ‘Reportable salary’ includes the following: a) gross payments (less any bonuses paid, which are separated out and disclosed in the ‘bonus paid’ column); b) reportable fringe benefits (at the net amount prior to ‘grossing up’ to account for tax purposes); c) reportable employer superannuation contributions; and d) exempt foreign employment income.

3 The ‘contributed superannuation’ amount is the average cost to the Performance Authority for the provision of superannuation benefits to substantive senior executives in that reportable remuneration band during the reporting period. 4 ‘Reportable allowances’ are the average actual allowances paid as per the ‘total allowances’ line on individuals’ payment summaries.

5 There were no bonuses paid during the reporting period.

Financial Statements: Note 12 National Health Performance Authority

100 National Health Performance Authority | Annual Report 2013-14

Financial Statements: Note 12 National Health Performance Authority

Note 12C: Average Annual Reportable Remuneration Paid to Other Highly Paid Staff During

the Reporting Period

Average annual reportable remuneration paid to other highly paid staff in 2014

Average annual reportable remuneration1 Other highly paid staff

Reportable salary2

Contributed super-annuation3 Reportable

allowances4 Bonus paid5

Total

reportable remuneration

no. $ $ $ $ $

Total number of other highly paid staff

-

Average annual reportable remuneration paid to other highly paid staff in 2013

Average annual reportable remuneration1 Other highly paid staff

Reportable salary2

Contributed super-annuation3 Reportable

allowances4 Bonus paid5

Total

reportable remuneration

no. $ $ $ $ $

Total reportable remuneration (including part-time arrangements):

$195,000 to $224,999 1 142,565 47,784 134 5,671 196,154

Total number of other highly paid staff

1

Notes:

1 This table reports staff: a) who were employed by the Performance Authority during the reporting period; b) whose reportable remuneration was $195,000 or more for the financial period; and c) were not required to be disclosed in Note 12B or director disclosures.

Each row is an averaged figure based on headcount for individuals in the band.

2 ‘Reportable salary’ includes the following:

a) gross payments (less any bonuses paid, which are separated out and disclosed in the ‘bonus paid’ column); b) reportable fringe benefits (at the net amount prior to ‘grossing up’ to account for tax purposes); c) reportable employer superannuation contributions; and d) exempt foreign employment income. 3 The ‘contributed superannuation’ amount is the average cost to the Performance Authority for the provision of superannuation

benefits to other highly paid staff in that reportable remuneration band during the reporting period.

4 ‘Reportable allowances’ are the average actual allowances paid as per the ‘total allowances’ line on individuals’ payment summaries.

5 ‘Bonus paid’ represents average actual bonuses paid during the reporting period in that reportable remuneration band. The ‘bonus paid’ within a particular band may vary between financial years due to various factors such as individuals commencing with or leaving the Performance Authority during the financial year.

6 There were no other highly paid staff in 2014.

National Health Performance Authority | Annual Report 2013-14 101

National Health Performance Authority Notes to and forming part of the Financial Statements for the year ended 30 June 2014

Note 13: Remuneration of Auditors 2014 2013

$’000 $’000

Financial statement audit services were provided free of charge to the Performance Authority by the Australian National Audit Office (ANAO)

Fair value of the services provided Financial audit statement audit services 45 35

Total fair value of services received 45 35

No other services were provided by the auditors of the financial statements.

102 National Health Performance Authority | Annual Report 2013-14

2014 2013

$’000 $’000

Note 14A: Categories of Financial Instruments

Financial assets Loans and receivables

Cash and cash equivalents 11 342

Trade and other receivables 8 479

Total financial assets 19 821

Financial liabilities Financial liabilities measured at amortised cost Trade creditors and accruals 433 785

Other payables 186 156

Total financial liabilities 619 941

Note 14B: Fair Value of Financial Instruments

Financial assets

The fair values of all monetary financial assets approximate their carrying amounts.

Financial liabilities

The fair values of all monetary financial liabilities approximate their carrying amounts. All financial liabilities are current, therefore a maturity analysis is not required.

Note 14C: Credit Risk

The Performance Authority was exposed to minimal credit risk as loans and receivables were cash and other receivables. The maximum exposure to credit risk was the risk that arises from potential default of a debtor. This amount was equal to the total amount of other receivables (2014: $7,830 and 2013: $478,847). The Performance Authority had no significant exposures to any concentrations of credit risk.

National Health Performance Authority Notes to and forming part of the Financial Statements for the year ended 30 June 2014

Note 14: Financial Instruments

National Health Performance Authority | Annual Report 2013-14 103

Note 14D: Liquidity Risk

The Performance Authority’s financial liabilities were trade and other payables. The exposure to liquidity risk was based on the notion that the Performance Authority will encounter difficulty in meeting its obligations associated with financial liabilities. This was highly unlikely as the Performance Authority is appropriated funding from the Australian Government and the Performance Authority manages its budgeted funds to ensure it has adequate funds to meet payments as they fall due. In addition, the Performance Authority has policies in place to ensure timely payments made when due and has no past experience of default. The maturity for non-derivative financial liabilities of $619,154 is within 1 year (2013: $942,332 within 1 year).

Note 14E: Market Risk

The Performance Authority held basic financial instruments that did not expose it to certain market risks, such as ‘Interest rate risk’, ‘Currency risk’ or ‘Other price risk’.

Financial Statements: Note 14 National Health Performance Authority

104 National Health Performance Authority | Annual Report 2013-14

National Health Performance Authority Notes to and forming part of the Financial Statements for the year ended 30 June 2014

Note 15: Financial Assets Reconciliation 2014 2013

$’000 $’000

Total financial assets as per statement of financial position 4,978 3,704

Less: Non-financial instrument components

Appropriations receivable 4,925 2,829

Statutory receivables 34 54

Total non-financial instrument components 4,959 2,883

Total financial assets as per financial instruments note 19 821

National Health Performance Authority | Annual Report 2013-14 105

2014 2013

$’000 $’000

Note 16A: Suppliers Goods and services supplied or rendered Consultants 35 -

Contractors 6,351 1,745

IT services 3,682 2,675

Other 55 2

Total goods and services supplied or rendered 10,123 4,422

Services rendered in connection with Related entities 7,720 4,178

External parties 2,403 244

Total goods and services supplied or rendered 10,123 4,422

Total suppliers 10,123 4,422

National Health Performance Authority Notes to and forming part of the Financial Statements for the year ended 30 June 2014

Note 16: Administered - Expenses

National Health Performance Authority Notes to and forming part of the Financial Statements for the year ended 30 June 2014

Note 17: Administered - Income 2014 2013

$’000 $’000

Note 17A: Other Gains Resources received free of charge - 1,402

Total other gains - 1,402

106 National Health Performance Authority | Annual Report 2013-14

2014 2013

$’000 $’000

Note 18A: Cash and Cash Equivalents Cash on hand or on deposit - 9

Total cash and cash equivalents - 9

Note 18B: Trade and Other Receivables Other receivables Statutory receivables 129 193

Total other receivables 129 193

Total trade and other receivables (net) 129 193

Trade and other receivables (net) are expected to be recovered No more than 12 months 129 193

Total trade and other receivables (net) 129 193

Trade and other receivables (gross) aged as follows Not overdue 129 193

Total trade and other receivables (gross) 129 193

National Health Performance Authority Notes to and forming part of the Financial Statements for the year ended 30 June 2014

Note 18: Administered - Financial Assets

National Health Performance Authority | Annual Report 2013-14 107

National Health Performance Authority Notes to and forming part of the Financial Statements for the year ended 30 June 2014

Note 19: Administered - Payables 2014 2013

$’000 $’000

Note 19A: Suppliers Trade creditors and accruals 816 698

Total suppliers 816 698

Suppliers expected to be settled No more than 12 months 816 698

Total suppliers 816 698

Suppliers in connection with -

Related parties 301 -

External parties 515 698

Total suppliers 816 698

Settlement was usually made within 30 days

108 National Health Performance Authority | Annual Report 2013-14

2014 2013

$’000 $’000

Reconciliation of cash and cash equivalents as per administered schedule of assets and liabilities to administered cash flow statement

Cash and cash equivalents as per Administered cashflow statement - 9

Schedule of administered assets and liabilities - 9

Discrepancy - -

Reconciliation of net cost of services to net cash from (used by) operating activities Net (cost) of services (10,123) (3,020)

Movements in assets/liabilities Assets (Increase) Decrease in net receivables 64 (193)

Liabilities Increase in supplier payables 118 698

Net cash from operating activities (9,941) (2,515)

National Health Performance Authority Notes to and forming part of the Financial Statements for the year ended 30 June 2014

Note 20: Administered - Cash Flow Reconciliation

National Health Performance Authority | Annual Report 2013-14 109

National Health Performance Authority Notes to and forming part of the Financial Statements for the year ended 30 June 2014

Note 21: Administered - Contingent Assets and Liabilities Quantifiable Contingencies

There were no quantifiable contingent assets or liabilities in this reporting period (2013: nil).

Unquantifiable Contingencies

There were no unquantifiable contingent assets or liabilities in this reporting period (2013: nil).

Significant Remote Contingencies

There were no significant remote contingent assets or liabilities in this reporting period (2013: nil).

National Health Performance Authority Notes to and forming part of the Financial Statements for the year ended 30 June 2014

Note 22: Administered - Financial Instruments 2014 2013

$’000 $’000

Note 22A: Categories of Financial Instruments

Financial assets Loans and receivables Cash and cash equivalents - 9

Total loans and receivables - 9

Total financial assets - 9

Financial liabilities Financial liabilities measured at amortised cost Trade creditors and accruals 816 698

Total financial liabilities measured at amortised cost 816 698

Total financial liabilities 816 698

110 National Health Performance Authority | Annual Report 2013-14

Note 22B: Fair Value of Financial Instruments

Financial assets

The fair values of all monetary financial assets approximate their carrying amounts.

Financial liabilities

The fair values of all monetary financial liabilities approximate their carrying amounts.

All financial liabilities are current, therefore a maturity analysis is not required.

Note 22C: Credit Risk

The administered activities of the Performance Authority were not exposed to credit risk

as the financial assets held were made up of cash at bank. The Performance Authority had

no significant exposures to any concentrations of credit risk.

Note 22D: Liquidity Risk

The Performance Authority’s financial liabilities were trade and other creditors. The exposure to

liquidity risk was based on the notion that the Performance Authority would encounter difficulty

in meeting its obligations associated with financial liabilities. This was highly unlikely as the

Performance Authority was appropriated funds from the Australian Government and managed

its budget to ensure it had adequate funds to meet payments as they fall due. In addition, the

Performance Authority had policies in place to ensure timely payments were made when due and

had no past experience of default. The maturity for non-derivative financial liabilities of $815,720 is

within 1 year (2013: $697,726 within 1 year).

Note 22E: Market Risk

The Performance Authority held basic financial instruments that did not expose it to certain market

risks, such as ‘Currency risk’, ‘Interest rate risk’ and ‘Other price risk’.

Financial Statements: Note 22 National Health Performance Authority

National Health Performance Authority | Annual Report 2013-14 111

National Health Performance Authority Notes to and forming part of the Financial Statements for the year ended 30 June 2014

Note 23: Administered Financial Assets Reconciliation 2014 2013

$’000 $’000

Total financial assets as per administered schedule of assets and liabilities 129 202

Less: non-financial instrument components Statutory receivables 129 193

Total financial assets as per administered financial instruments note - 9

112 National Health Performance Authority | Annual Report 2013-14

National Health Performance Authority Notes to and forming part of the Financial Statements

for the year ended 30 June 2014 Note 24: Appropriations Note 24A: Annual Appropriations (‘Recoverable GST exclusive’) Annual Appropriations for 2014

Appropriation applied in 2014 (current and prior years) Variance

3

Appropriation Act FMA Act

Total

appropriation

Annual

appropriation

Appropriations reduced

1 AFM

2

Section 30

Section 31

Section 32

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

DEPARTMENTAL

Ordinary annual services 11,479 - - - 773 - 12,252 10,683 1,569

Other services

Equity - - - - - - - - -

Total departmental 11,479 - - - 773 - 12,252 10,683 1,569

ADMINISTERED

Ordinary annual services

Administered items 22,136 (11,821) - - - - 10,315 10,051 264

Total administered 22,136 (11,821) - - - - 10,315 10,051 264

Notes: 1 Appropriations reduced under Appropriation Acts (Nos. 1, 3 & 5) 2013-14: sections 10, 11 and 12 and under Appropriation Acts (Nos. 2, 4 & 6) 2013-14: sections 12, 13 and 14. Departmental appropriations do not lapse at financial year end. However, the responsible Minister may decide that part or all of a departmental appropriation is not required and request the Finance Minister to reduce that appropriation. The reduction in the appropriation is effected by the Finance Minister’s determination and is disallowable by Parliament.

As with departmental appropriations, the responsible Minister may decide that part or all of an administered appropriation is not required and request that the Finance Minister reduce that appropriation. For administered appropriations reduced under section 11 of Appropriation Acts (Nos 1, 3 & 5) 2013-14 and section 12 of Appropriation Acts (Nos. 2, 4 & 6) 2013-14, the appropriation is taken to be reduced to the required amount specified in Note 24F of this note once the annual report is tabled in Parliament. All administered appropriations may be adjusted by a Finance Minister’s determination, which is disallowable by Parliament.

2 Advance to the Finance Minister (AFM) - Appropriation Acts (Nos. 1, 3 & 5) 2013-14: section 13 and Appropriation Acts (Nos. 2, 4 & 6) 2013-14: section 15.

3 Variances were primarily caused by delays in expenditure.

National Health Performance Authority | Annual Report 2013-14 113

Financial Statements: Note 24 National Health Performance Authority

Note 24A: Annual Appropriations (‘Recoverable GST exclusive’)

Annual Appropriations for 2013

Appropriation applied in 2013 (current and prior years) Variance

Appropriation Act FMA Act

Total

appropriation

Annual

appropriation

Appropriations reduced

1 AFM

2

Section 30

Section 31

Section 32

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

DEPARTMENTAL

Ordinary annual services - - - - 785 12,148 12,933 9,762 3,171

Other services

Equity - - - - - - - - -

Total departmental - - - - 785 12,148 12,933 9,762 3,171

ADMINISTERED

Ordinary annual services

Administered items - (14,783) - - - 17,803 3,020 2,515 505

Total administered - (14,783) - - - 17,803 3,020 2,515 505

Notes: 1 Appropriations reduced under Appropriation Acts (Nos. 1 & 3) 2012-13: sections 10, 11, 12 and 15 and under Appropriation Acts (Nos. 2 & 4) 2012-13: sections 12, 13, 14 and 17. Departmental appropriations do not lapse at financial year end. However, the responsible Minister may decide that part or all of a departmental appropriation is not required and request the Finance Minister to reduce that appropriation. The reduction in the appropriation is effected by the Finance Minister’s determination and is disallowable by

Parliament. As with departmental appropriations, the responsible Minister may decide that part or all of an administered appropriation is not required and request that the Finance Minister reduce that appropriation. For administered appropriations reduced under section 11 of Appropriation Acts (Nos 1, 3 & 5) 2012-13 and section 12 of Appropriation Acts (Nos 2,

4 & 6) 2012-13, the appropriation is taken to be reduced to the required amount specified in Note 24F of this note once the annual report is tabled in Parliament. All administered appropriations may be adjusted by a Finance Minister’s determination, which is disallowable by Parliament.

2 Advance to the Finance Minister (AFM) - Appropriation Acts (Nos. 1 & 3) 2012-13: section 13 and Appropriation Acts (Nos. 2 & 4) 2012-13: section 15.

114 National Health Performance Authority | Annual Report 2013-14

Note 24B: Departmental and Administered Capital Budgets (‘Recoverable GST exclusive’)

2014 Capital Budget Appropriations Capital budget appropriations applied in 2014 (current and prior years)

Variance

4

Appropriation Act FMA Act Total capital

budget

appropriations

Payments for non-financial assets

3

Payments for other purposes

Total

payments

Annual capital budget Appropriations reduced

2

Section 32

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

DEPARTMENTAL

Ordinary annual services - Departmental Budget

1

100 - - 100 49 - 49 51

ADMINISTERED

Ordinary annual services - Administered Budget

1

- - - - - - - -

Notes: 1 Departmental and Administered Capital Budgets are appropriated through Appropriation Acts (Nos. 1, 3 and 5). They form part of ordinary annual services, and are not separately identified in the Appropriation Acts. For more information on ordinary annual services appropriations, please see Note 24A: Annual appropriations. 2 Appropriations reduced under Appropriation Acts (Nos. 1, 3 and 5) 2013-14: sections 10, 11, 12 and 15 or via a determination by the Finance Minister. 3 Payments made on non-financial assets include purchases of assets, expenditure on assets which has been capitalised, costs incurred to make good an asset to its original condition

and the capital repayment component of finance leases. 4 Variance was caused by underspend of the capital budget.

Financial Statements: Note 24 National Health Performance Authority

National Health Performance Authority | Annual Report 2013-14 115

Note 24B: Departmental and Administered Capital Budgets (‘Recoverable GST exclusive’)

2013 Capital Budget Appropriations Capital budget appropriations applied in 2013 (current and prior years)

Variance

Appropriation Act FMA Act Total capital

budget

appropriations

Payments for non-financial assets

3

Payments for other purposes

Total

payments

Annual capital budget Appropriations reduced

2

Section 32

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

DEPARTMENTAL

Ordinary annual services - Departmental Budget

1

- - 758 758 758 - 758 -

ADMINISTERED

Ordinary annual services - Administered Budget

1

- - - - - - - -

Notes: 1 (Departmental and Administered Capital Budgets are appropriated through Appropriation Acts (Nos. 1, 3 and 5). They form part of ordinary annual services, and are not separately identified in the Appropriation Acts. For more information on ordinary annual services appropriations, please see Note 24A: Annual appropriations. 2 Appropriations reduced under Appropriation Acts (Nos. 1, 3 and 5) 2012-13: sections 10, 11, 12 and 15 or via a determination by the Finance Minister. 3 Payments made on non-financial assets include purchases of assets, expenditure on assets which has been capitalised, costs incurred to make good an asset to its original condition

and the capital repayment component of finance leases.

Financial Statements: Note 24 National Health Performance Authority

116 National Health Performance Authority | Annual Report 2013-14

Financial Statements: Note 24 National Health Performance Authority

2014 2013

$’000 $’000

Note 24C: Unspent Appropriations (‘Recoverable GST

exclusive’)

Departmental Appropriation Act (No. 1) 2012-13 - 3,171

Appropriation Act (No. 1) 2013-14 4,936 -

Total departmental 4,936 3,171

Administered Appropriation Act (No. 1) 2012-13 - 505

Appropriation Act (No. 1) 2013-14 769 -

Total administered 769 505

Note 24D: Special Appropriations Applied (‘Recoverable GST exclusive’)

There are no special appropriations applied to the Performance Authority during the financial years 2013

and 2014.

Note 24E: Disclosure by Agent in Relation to Annual and Special Appropriations

(‘Recoverable GST exclusive’)

There are no special appropriations for work performed on behalf of other agencies during the financial

years 2013 and 2014.

National Health Performance Authority | Annual Report 2013-14 117

Note 24F: Reduction in Administered Items (‘Recoverable GST exclusive’)

Reduction in administered items for 2014

Amount required

3 - by Appropriation Act Total amount required

3

Total amount appropriated

4

Total

reduction

5

Ordinary annual services Act (No. 1) Act (No. 3) Act (No. 5)

Outcome 1 $10,314,811.90 0 0 $10,314,811.90 $22,136,000.00 $11,821,188.10

Notes: 1 Numbers in this section must be disclosed to the cent.

2 Administered items for 2014 were reduced to these amounts when these financial statements were tabled in Parliament as part of the Performance Authority’s 2014 annual report. This reduction was effective in 2015, but the amounts were reflected in Note 24A in the 2014 financial statements in the column ‘Appropriations reduced’ as they were adjustments to 2014 appropriations.

3 Amount required as per Appropriation Act (Act 1 s. 11; Act 2 s. 12).

4 Total amount appropriated in 2014.

5 Total reduction effective in 2015.

Reduction in Administered Items for 2013

Amount required

3 - by Appropriation Act Total amount required

3

Total amount appropriated

4

Total

reduction

5

Ordinary annual services Act (No. 1) Act (No. 3) Act (No. 5)

Outcome 1 $3,020,182.00 0 0 $3,020,182.00 $17,803,498.69 $14,783,316.69

Notes: 1 Numbers in this section must be disclosed to the cent.

2 Administered items for 2013 were reduced to these amounts when these financial statements were tabled in Parliament as part of the Performance Authority’s 2013 annual report. This reduction was effective in 2014, but the amounts were reflected in Note 19A in the 2013 financial statements in the column ‘Appropriations reduced’ as they were adjustments to 2013 appropriations.

3 Amount required as per Appropriation Act (Act 1 s. 11; Act 2 s. 12).

4 Total amount appropriated in 2013.

5 Total reduction effective in 2014.

Financial Statements: Note 24 National Health Performance Authority

118 National Health Performance Authority | Annual Report 2013-14

Compensation and Debt Relief - Departmental

No ‘Act of Grace’ payments were expensed during the reporting period (2013: no expenses).

No waivers of amounts owing to the Australian Government were made pursuant to subsection 34(1) of the Financial Management and Accountability Act 1997 (2013: no waivers).

No payments were provided under the Compensation for Detriment caused by Defective Administration (CDDA) during the reporting period (2013: no payments).

No ex gratia payments were provided for during the reporting period (2013: no payments).

No payments were provided in special circumstances relating to APS employment pursuant to section 73 of the Public Service Act 1999 (PS Act) during the reporting period (2013: no payments).

Compensation and Debt Relief - Administered

No ‘Act of Grace’ expenses were incurred during the reporting period (2013: no expenses).

No waivers of amounts owing to the Australian Government were made pursuant to subsection 34 (1) of the Financial Management and Accountability Act 1997 (2013: no waivers).

No payments were provided under the Compensation for Detriment caused by Defective Administration (CDDA) during the reporting period (2013: no payments).

No ex gratia payments were provided during the reporting period (2013: no payments).

No payments were provided in special circumstances relating to APS employment pursuant to section 73 of the Public Service Act 1999 (PS Act) during the reporting period (2013: no payments).

National Health Performance Authority Notes to and forming part of the Financial Statements for the year ended 30 June 2014

Note 25: Compensation and Debt Relief

National Health Performance Authority | Annual Report 2013-14 119

National Health Performance Authority Notes to and forming part of the Financial Statements for the year ended 30 June 2014

Note 26: Compliance with Statutory Conditions for Payments from the Consolidated Revenue Fund

Section 83 of the Constitution provides that no amount may be paid out of the Consolidated Revenue Fund except under an appropriation made by law. The Department of Finance provided information to all agencies in 2011 regarding the need for risk assessments in relation to compliance with statutory conditions on payments from special appropriations, including special accounts. The Performance Authority does not have any special appropriations or special account.

Subsequently, additional legal advice was received that indicated there could be breaches of Section 83 under certain circumstances with payments for long service leave, goods and services tax and payments under determinations of the Remuneration Tribunal. During 2013-14 the Performance Authority conducted a risk assessment and reviewed its processes and controls over payments for these items. No breaches occurred during the financial year and the risk of breaches occurring is minimal.

120 National Health Performance Authority | Annual Report 2013-14

Outcome 1

2014 2013

$’000 $’000

Note 27A: Net Cost of Outcome Delivery

Departmental Expenses 10,280 9,455

Own-source income 45 35

Administered Expenses 10,123 4,422

Income - 1,402

Net cost of outcome delivery 20,358 12,440

Note: In accordance with the Finance Minister’s Orders, Notes 27B and 27C - Major Classes of Departmental and Administered Expenses, Income, Assets and Liabilities by Outcomes are not required as the Performance Authority has only one Outcome as described in Note 1.1.

National Health Performance Authority Notes to and forming part of the Financial Statements for the year ended 30 June 2014

Note 27: Reporting of Outcomes

National Health Performance Authority | Annual Report 2013-14 121

National Health Performance Authority Notes to and forming part of the Financial Statements for the year ended 30 June 2014

Note 28: Net Cash Appropriation Arrangements 2014 2013

$’000 $’000

Total comprehensive income (loss) less depreciation/amortisation

expenses previously funded through revenue appropriations1 1,485 2,163 Plus: depreciation/amortisation expenses previously funded through

revenue appropriation (334) (193)

Total comprehensive income (loss) - as per the Statement

of Comprehensive Income 1,151 1,970

Note: 1 From 2010-11, the Government introduced net cash appropriation arrangements, where revenue appropriations for depreciation/amortisation expenses ceased. The Performance Authority now receives a separate capital budget provided through equity appropriations. Capital budgets are to be appropriated in the period when cash payment for capital expenditure

is required.

122 National Health Performance Authority | Annual Report 2013-14

This page is intentionally left blank

Appendices

Appendix 1: Acknowledgements lists members of the agency’s various committees and acknowledges contributors to the reports released by the Performance Authority in 2013-14.

Appendix 2: Conferences and events lists presentations at stakeholder events, meetings and conferences by senior Performance Authority staff during 2013-14.

Appendix 3: Resource summaries provides agency resource tables for 2013-14.

Appendix 4: List of requirements is an index of mandatory information requirements, identifying where the information can be found within the report.

124 National Health Performance Authority | Annual Report 2013-14

Appendix 1: Acknowledgements The Performance Authority thanks the following individuals for their contributions in 2013-14:

Jurisdictional Advisory Committee Members • Dr David Filby (Chairman)

• Mr Paul Basso (SA)

• Dr Zoran Bolevich (NSW)

• Ms Penny Fielding (NT) / Mr Michael Kalimnios (NT)

• Ms Kerry Flanagan (Commonwealth)

• Mr Phil Ghiradello (ACT)

• Mr Martin Hensher (Tas)

• Mr Terry Mehan (Qld) / Mr Nick Steele (Qld)

• Mr Terry Symonds (Vic)

• Mr Colin Xanthis (WA).

Proxies and observers as required • Ms Janet Anderson (Commonwealth)

• Mr Andrew Bailey (ACT)

• Ms Helen Ceron (Qld)

• Ms Tanya Fisher (Vic)

• Ms Tina Hardin (SA)

• Ms Naomi Hebson (Qld)

• Mr Mark Johnson (Tas)

• Ms Amanda Lanagan (NT)

• Ms Karen Lopez (WA)

• Mr Mike Melino (NT)

• Ms Rosangelo Merlo (Vic)

• Mr Bruce Prosser (Vic)

• Mr Tim Reid (WA)

• Ms Kristine Sketcher-Baker (Qld)

• Ms Veronica Snook (NT)

• Ms Ann Smith (Commonwealth)

• Mr Allan Went (NSW).

Primary Health Care Advisory Committee Members • Professor Claire Jackson (Chairman)

• Dr Evan Ackermann

• Ms Claire Austin (until 15 October 2013)

• Associate Professor Helena Britt

• Ms Jan Donovan

• Mr Phil Edmondson

• Mr Terry Findlay (from 24 October 2013)

• Dr Rick McLean

• Ms Sinéad O’Brien

• Mr Sean Rooney (from 10 November 2013)

• Mr David Stokes

• Ms Melissa Vernon

• Dr Mark Wenitong.

National Health Performance Authority | Annual Report 2013-14 125

Advisory Committee on Private Hospitals Members • Professor Michael Reid (Chairman)

• Ms Lucy Cheetham

• Mr Tony Geftakis

• Ms Jane Griffiths

• Mr Martin Laverty

• Mr Michael Roff

• Mr Patrick Tobin.

Performance Assessment Working Group Members • Professor Debora Picone (Chairman)

• Professor Chris Baggoley

• Professor Justin Beilby

• Ms Jo-Ann Bourke

• Professor Jeffrey Braithwaite

• Dr Mary Foley

• Ms Susan Johnston

• Mr Tony Lawson

• Dr Harry Nespolon

• Mr David Swan

• Adjunct Professor Debra Thoms

• Professor David Watters.

MyHealthyCommunities and MyHospitals reports Throughout 2013-14, the Performance Authority engaged various committees in the preparation of its reports. All reports including a list of acknowledgements can be found at www.myhealthycommunities.

gov.au, www.myhospitals.gov.au, and www.nhpa.gov.au

Appendix 1: Acknowledgements

126 National Health Performance Authority | Annual Report 2013-14

Appendix 2: Conferences and events Table 7: National Health Performance Authority presentations at stakeholder events, meetings and conferences in 2013-14

Date Name

7 July 2013 9th World Congress Health and Economics - Sydney

9 July 2013 Stakeholder Workshop, National Evaluation of Medicare Locals - Sydney

19 July 2013 National Advisory Group on Aboriginal and Torres Strait Islander Health Information Data meeting - Sydney

26 July 2013 Australasian College of Health Service Management - Adelaide

1 August 2013 Australian Institute of Health Innovation, Health Systems Research Symposium - Sydney

2 August 2013 Centre for Primary Health Care and Equity Annual Forum - Sydney

23 August 2013 National Lead Clinicians Group meeting - Brisbane

26 August 2013 Catholic Health Australia National Conference - Melbourne

26 August 2013 Medicare Locals Indicators workshop - Canberra

20 September 2013 Health Leaders Forum - Brisbane

23 September 2013 Australian Catholic Health Association - Sydney

26 September 2013 Asia Pacific Forum - New Zealand

1 October 2013 Masterclass on the Right Care Program - Sydney

17 October 2013 National Aboriginal and Torres Strait Islander Health Standing Committee - Sydney

17-18 October 2013 10th National Allied Health Conference - Brisbane

24 October 2013 Queensland Clinical Senate - Brisbane

28 October 2013 Community-based Primary Health Care Innovation teams inaugural meeting - Toronto, Canada

29-30 October 2013 National Symposium on Quality Improvement - Toronto, Canada

20 November 2013 Australian Health Services Financial Management Association Conference - Lorne, Victoria

3-4 December 2013 Australian Healthcare Summit 2013 - Sydney

9 December 2013 Sydney HGI Knowledge Centre - Sydney

25 February 2014 Centre for Health Services Policy Research, 2014 26th Annual Health Policy Conference - Vancouver, Canada

10 April 2014 futureHEALTH Forum - Sydney

15 May 2014 Australian Institute of Health Innovation, Annual Research Symposium - Sydney

National Health Performance Authority | Annual Report 2013-14 127

Appendix 3: Resource summaries Table 8: National Health Performance Authority’s Resource Statement 2013-14

Actual available appropriation for 2013-14

Payments made 2013-14

Balance remaining 2013-14

$’000 $’000 $’000

(a) (b) (a)−(b)

Ordinary annual services1

Departmental appropriation2 15,423 10,683 4,740

Total 15,423 10,683 4,740

Administered expenses

Outcome 1 22,136 10,051

Total 22,136 10,051

Total ordinary annual services 37,559 20,734

Total net resourcing and payments

for the Performance Authority

37,559 20,734

Notes:

1 Appropriation Bill (No. 1) 2013-14. The amount includes prior year departmental appropriations and section 31 relevant agency receipts. 2 Includes an amount of $100,000 in 2013-14 for the Departmental Capital Budget. For accounting purposes this amount has been designated as ‘contributions by owners’.

128 National Health Performance Authority | Annual Report 2013-14

Table 9: National Health Performance Authority’s Expenses and Resources by Outcome 2013-14

Outcome 1: Contribute to transparent and accountable health care services in Australia, including through the provision of independent performance monitoring and reporting; the formulation of performance indicators; and conducting and evaluating research.

Budget 2013-14

Actual Expenses 2013-14

Variation 2013-14

$’000 $’000 $’000

(a) (b) (a)-(b)

Program 1.1: Health system performance

reporting

Administered expenses

Ordinary annual services (Appropriation Bill No.1)2

22,136 10,123 12,013

Departmental expenses

Departmental appropriation1 11,379 9,901 1,478

Expenses not requiring appropriation in

the budget year

359 379 (20)

Total expenses for Outcome 1 33,874 20,403 13,471

2012-13 2013-14

Average staffing level (number) 41.6 52.8

Notes:

1 Full year budget, includes a reduction of $2,000 in the departmental appropriation as a savings measure made at MYEFO.

2 The variation in administered expenses is due to delays in administered programs.

Appendix 3: Resource summaries

National Health Performance Authority | Annual Report 2013-14 129

Appendix 4: List of requirements

Part of report Description Requirement Page

Letter of transmittal Mandatory i

Table of contents Mandatory ii

Index Mandatory 139

Glossary Mandatory 135

Contact officer(s) Mandatory Verso

Internet home page address and Internet address for report Mandatory Verso

Agency overview Role and functions Mandatory 2-3

Organisational structure Mandatory 3

Portfolio structure Mandatory 4

Outcome and programme structure Mandatory N/A

Review by departmental secretary (CEO) Mandatory 5-7

Significant issues and developments - portfolio Suggested 5-7, 10-12

Summary of significant issues and developments Suggested N/A

Overview of department’s performance and financial results Suggested N/A

Outlook for following year Suggested N/A

Where outcome and programme structures differ from Portfolio Budget Statements/ Portfolio Additional Estimates Statements or other portfolio statements accompanying any other additional appropriation bills (other portfolio statements), details of variation and reasons for change

Mandatory N/A

Report on performance

Review of performance during the year in relation to programmes and contribution to outcomes Mandatory 24

Actual performance in relation to deliverables and KPIs set out in PB Statements/PAES or other portfolio statements

Mandatory 26-27

Under subsection 63(2) of the Public Service Act 1999, agencies are required to prepare annual reports according to guidelines approved on behalf of the Parliament of Australia by the Joint Committee of Public Accounts and Audit and published by the Department of the Prime Minister and Cabinet. The following table shows where information specified by the requirements is found in this report.

130 National Health Performance Authority | Annual Report 2013-14

Part of report Description Requirement Page

Report on performance

Where performance targets differ from the PBS/PAES, details of both former and new targets, and reasons for the change

Mandatory N/A

Narrative discussion and analysis of performance Mandatory 24-41

Trend information Mandatory 24-41

Significant changes in nature of principal functions/services Suggested N/A

Performance of purchaser/provider arrangements If applicable, suggested

N/A

Factors, events or trends influencing departmental performance Suggested N/A

Contribution of risk management in achieving objectives Suggested 40

Performance against service charter customer service standards, complaints data, and the department’s response to complaints

If applicable, mandatory

N/A

Discussion and analysis of the department’s financial performance Mandatory 53

Discussion of any significant changes in financial results from the prior year, from budget or anticipated to have a significant impact on future operations

Mandatory 53

Agency resource statement and summary resource tables by outcomes Mandatory 127-128

Management and Corporate governance

accountability Agency heads are required to certify that their agency complies with the ‘Commonwealth Fraud Control Guidelines’

Mandatory 40

Statement of the main corporate governance practices in place Mandatory 44

Names of the senior executive and their responsibilities Suggested No

names provided

Senior management committees and their roles Suggested 44-47

Corporate and operational plans and associated performance reporting and review Suggested 24-41

Internal audit arrangements including approach adopted to identifying areas of significant financial or operational risk and arrangements to manage those risks

Suggested 47

Appendix 4: List of requirements

National Health Performance Authority | Annual Report 2013-14 131

Part of report Description Requirement Page

Management and accountability Policy and practices on the establishment and maintenance of appropriate ethical standards

Suggested 52

How nature and amount of remuneration for SES officers is determined Suggested 51

External scrutiny

Significant developments in external scrutiny Mandatory 51

Judicial decisions and decisions of administrative tribunals and by the Australian Information Commissioner

Mandatory 51

Reports by the Auditor-General, a Parliamentary Committee, the Commonwealth Ombudsman or an agency capability review

Mandatory N/A

Management of human resources

Assessment of effectiveness in managing and developing human resources to achieve departmental objectives

Mandatory 48

Workforce planning, staff retention and turnover Suggested 48

Impact and features of enterprise or collective agreements, individual flexibility arrangements (IFAs), determinations, common law contracts and Australian Workplace Agreements (AWAs)

Suggested 51

Training and development undertaken and its impact Suggested 48

Work health and safety performance Suggested 51

Productivity gains Suggested N/A

Statistics on staffing Mandatory 49-50

Enterprise or collective agreements, IFAs, determinations, common law contracts and AWAs

Mandatory 51

Performance pay Mandatory 51

Mandatory reporting information

Assessment of effectiveness of assets management If applicable, mandatory

54

Assessment of purchasing against core policies and principles Mandatory 54

Appendix 4: List of requirements

132 National Health Performance Authority | Annual Report 2013-14

Appendix 4: List of requirements

Part of report Description Requirement Page

Management and accountability The annual report must include a summary statement detailing the number of new

consultancy services contracts let during the year, the total actual expenditure on all new consultancy contracts let during the year (inclusive of GST), the number of ongoing consultancy contracts that were active in the reporting year and the total actual expenditure in the reporting year on the ongoing consultancy contracts (inclusive of GST). The annual report must include a statement noting that information on contracts and consultancies is available through the AusTender website

Mandatory 54

Absence of provisions in contracts allowing access by the Auditor-General Mandatory N/A

Contracts exempted from publication in AusTender Mandatory N/A

Financial statements Mandatory 58

Work health and safety (Schedule 2, Part 4 of the Work Health and Safety Act 2011) Mandatory 51

Advertising and Market Research (Section 311A of the Commonwealth Electoral Act 1918) and statement on advertising campaigns

Mandatory 55

Ecologically sustainable development and environmental performance (Section 516A of the Environment Protection and Biodiversity Conservation Act 1999)

Mandatory 55

Compliance with the agency’s obligations under the Carer Recognition Act 2010 If applicable, mandatory

N/A

Grant programmes Mandatory N/A

Disability reporting - explicit and transparent reference to agency-level information available through other reporting mechanisms

Mandatory 55-56

Information Publication Scheme statement Mandatory 56

Correction of material errors in previous annual report If applicable, mandatory

N/A

Financial statements

Agency Resource Statements and Resources for Outcomes Mandatory 58-121

List of requirements List of requirements Mandatory 129-132

National Health Performance Authority | Annual Report 2013-14 133

Acronyms and abbreviations ABS Australian Bureau of Statistics

ACPH Advisory Committee for Private Hospitals

Act (the) National Health Reform Act 2011

AIHW Australian Institute of Health and Welfare

AM Member of the Order of Australia

ANAO Australian National Audit Office

AO Officer of the Order of Australia

APS Australian Public Service

CEO Chief Executive Officer

COAG Council of Australian Governments

CPRs Commonwealth Procurement Rules

DoH Department of Health

ED emergency department

EDW Enterprise Data Warehouse

EL Executive Level

FOI Act Freedom of Information Act 1982

FMA Act Financial Management and Accountability Act 1997

GP general practitioner

GST goods and services tax

ICT information, communications and technology

IHPA Independent Hospital Pricing Authority

IPS Information Publication Scheme

IRAP Information Security Registered Assessors Program

JAC Jurisdictional Advisory Committee

KPI key performance indicator

MoU memorandum of understanding

PAC Primary Health Care Advisory Committee

134 National Health Performance Authority | Annual Report 2013-14

Acronyms and abbreviations

PDF Portable Document Format

PGPA Act Public Governance, Performance and Accountability Act 2013

PS Act Public Service Act 1999

SAP Systems, Applications, Productions

SCoH Standing Council on Health

SES Senior Executive Service

National Health Performance Authority | Annual Report 2013-14 135

Glossary Agreement (the) See National Health Reform Agreement.

APS code of conduct The code sets out the behaviours Australian Public Servants must demonstrate and adhere to under section 13 of the Public Service Act 1999.

AusTender The federal agency that provides centralised publication of Australian Government business opportunities, annual procurement plans, multi-use lists and contracts awarded.

Australian Government Public Sector Workplace Bargaining Policy The policy sets out the parameters for bargaining new enterprise agreements at agency level across the Commonwealth public sector.

Authority (the) The governing body of the Performance Authority as established under the National Health Reform Act 2011. The Authority has seven members comprising a chairman, deputy chairman and five other members who are responsible for the governance and proper and efficient performance of the Performance Authority’s functions, including setting the strategic direction.

Authority members See Authority (the).

Commonwealth Ombudsman The agency that considers and investigates complaints from people who believe they have been treated unfairly or unreasonably by an Australian Government department or agency.

Commonwealth Procurement Rules These rules represent the Government Policy Framework under which entities govern and undertake their own procurement and combine both Australia’s international obligations and good practice.

The Council of Australian Governments (COAG) The peak intergovernmental forum in Australia. The members of COAG are the Prime Minister, state and territory premiers and chief ministers and the president of the Australian Local Government Association.

Data Plan See Three-Year Rolling Data Plan 2013-16.

data specifications A dataset specification specifies a group of data elements and the conditions under which the group is collected. It can define the sequence in which data elements are included, whether they are mandatory, what verification rules should be employed and the characteristics and scope of the collection.

DiSC® A personal assessment tool used to improve work productivity, teamwork and communication.

jurisdictions The Australian Government, state and territory governments of Australia.

health care organisation An entity that provides health care including Local Hospital Networks, public and private hospitals, primary health care organisations and other bodies that provide health care services.

136 National Health Performance Authority | Annual Report 2013-14

health ministers The Australian Government Minister for Health and all state and territory health ministers.

health system manager Managers of health care entities including Local Hospital Networks, public and private hospitals, primary health care organisations and other bodies that provide health care services.

indicator See performance indicator.

Information Publication Scheme (IPS) The scheme specifies categories of information that agencies must publish online.

Medicare Local An organisation that has responsibility for improving responsiveness coordination and integration of primary health care services in a defined geographic area. There are 61 Medicare Locals across Australia.

Medicare Local catchment A specific geographic area for which a Medicare Local has responsibility. See Medicare Local.

METeOR Australia’s repository for national metadata standards for health, housing and community services statistics and information.

MyHealthyCommunities An interactive website delivering performance information on primary care.

MyHospitals A website delivering performance information on public and private hospitals.

National Disability Strategy 2010-2020 A strategy that provides a national approach to supporting people with disability to maximise their potential and participate as equal citizens in Australian society.

National Health Reform Act 2011 The Act under which the National Health Performance Authority was established.

National Health Reform Agreement 2011 The Agreement between the Commonwealth and the states and territories as agreed by COAG on 2 August 2011. The Agreement sets out the shared intention of governments to work in partnership to improve health outcomes for all Australians.

Optum Employee Assistance Program provider.

peer grouping For the purposes of fair comparison, the Performance Authority groups health care organisations and geographical areas that share similar characteristics. For hospitals, peer grouping can be based on hospital size or location, and groupings are revised for each report. For some Healthy Communities reports, Medicare Local catchments are grouped by remoteness, socioeconomic status and distance to hospitals.

Glossary

National Health Performance Authority | Annual Report 2013-14 137

Glossary

Performance and Accountability

Framework (the Framework) 2011 The

Framework identifies 48 COAG-agreed

indicators against which performance will

be measured. The Framework establishes

the conceptual basis for the Performance

Authority to fulfil its role in developing and

producing reports on the performance of

hospitals and health care services.

Performance Authority (the) The term

used in this report to refer to The National

Health Performance Authority as an agency,

including its roles and functions as a

statutory authority.

performance indicator Measures that relate

to the performance of the health system.

Measures include accessibility, effectiveness,

efficiency and sustainability, responsiveness,

continuity of care and safety. The Performance

Authority measures performance against

indicators identified in the Performance and

Accountability Framework.

primary health care Health care services

provided outside the hospital system

including by GPs and a broad range of

providers that prevent and treat illness in

the community.

Primary Health Networks These networks

(replacing Medicare Locals) will be corporate

organisations responsible for improving

patient outcomes in their local areas by

ensuring that services across the primary,

community and secondary sectors align and

work together in the interest of patients.

Reporting Plan The plan communicates the

intentions of the Performance Authority to

release public performance reports.

Standing Council of Health (SCoH)

Members of SCoH include Commonwealth,

state, territory and New Zealand ministers

with responsibility for health matters, and the

Commonwealth Minister for Veterans’ Affairs.

Staphylococcus aureus (S. aureus) A

bacterium commonly found in the airways,

lungs and skin of healthy people. If this

bacterium infects the bloodstream, it can

cause serious health complications for

patients and significant extra costs to the

health system.

Statistical Areas Level 3 A geographic

area defined by the Australian Bureau of

Statistics which has a population of between

30,000 and 130,000 people. There are 333

Statistical Areas Level 3 in Australia.

Strategic Plan 2012-15 The Plan outlines

the vision, values, objectives and strategies

of the Performance Authority for the

period 2012-15.

system manager See health system manager.

Three-Year Rolling Data Plan 2013-16 The

Data Plan sets out the data requirements of

the Performance Authority. The Data Plan

takes into account the objectives of the

National Health Reform Agreement.

TRIM Electronic records management

software.

138 National Health Performance Authority | Annual Report 2013-14

This page is intentionally left blank

National Health Performance Authority | Annual Report 2013-14 139

Index

A access to the Performance Authority information, 33-6 published reports, 28-9 websites, 34-5

accidents or notifiable incidents, 51

accountability, 40-1, 43-56

acronyms and abbreviations, 133-4

advertising and market research, 55

Advisory Committee on Private Hospitals (ACPH), 12, 14, 20, 38 chairman, 20, 125 establishment, 20 membership, 20, 125

advisory committees, viii, 19-21, 44, 45 new, 14

see also Advisory Committee on Private Hospitals; Jurisdictional Advisory Committee; Primary Health Care Advisory Committee

Agreement, the see National Health Reform Agreement

annual report award from Institute of Public Administration Australia, 40 contact officer, inside front cover

asset management, 54

Audit Committee, 40, 46 role, 46

Auditor-General, 47 independent auditor’s report, 58-9

Auditor-General Act 1997, 2

AusTender, 54, 55

Australian Associated Press citation on usefulness of MyHealthyCommunities website, 6, 35

Australian Commission on Safety and Quality in Health Care, 21

Australian Government, vii, 26 committee representation, 13, 19 consultation, 41 proposed health productivity and

performance commission, 12 see also Jurisdictional Advisory Committee

Australian Health Ministers’ Advisory Council, 37, 39

Australian Institute of Health and Welfare (AIHW), 16

Australian National Audit Office (ANAO) access clauses, 55 independent auditor’s report, 58-9

Australian Public Service (APS) code of conduct, 52

Australian Public Service (APS) values, 52

Australian Public Service Commission, 48, 55

Authority, the, vii, 9-22 appointments, 13 Chairman, 13, 15 Deputy Chairman, 13, 15 meetings, 14 member profiles, 15-18 members, 13-18 role, 13

see also National Health Performance Authority (the Performance Authority)

Avoidable deaths and life expectancies, 31, 34 Healthy Communities report, viii, 24, 29

Index

140 National Health Performance Authority | Annual Report 2013-14

Index

B best practice, vii, 30, 40

Board see Authority, the

Business Continuity Plan, 40

C Callida Consulting Ltd, 47

cancer surgery, waiting times, 22, 31 Hospital Performance report, viii, 22, 24, 28

Chairman appointment, 13 message, 10-12

Chief Executive Officer (CEO), 3, 19, 45, 46, 47 advisory committees, 44, 45 appointment, 44 and Chief Financial Officer statement, 60 responsibilities, 44 review of year, 5-7

Chief Financial Officer, 3 CEO and, statement, 60

children see immunisation rates, children

committees committee structure, 44-5 consultation, 37-8 time limited, 37, 38, 44, 45 see also name of committee

Commonwealth Electoral Act 1918, 55

Commonwealth Ombudsman, 47

communications Communications Plan, 33 strategies, 14 see also media engagement

community engagement, 33 see also stakeholders

community health see Healthy Communities reports; Medicare Locals; MyHealthyCommunities website

comparison between health care organisations/networks fairness of, 30-1, 38 see also MyHealthyCommunities website;

MyHospitals website

conferences and events, presentations at, 37, 126

consultants, 54 ANAO access clause, 55

consultation committees, 19, 20, 37-8, 39 Engagement and Consultation Plan, 37 Authority members, 44 stakeholders, vi, 4, 37-8

contact details, backcover

contracts consultancy, 54 exempt, 55

corporate governance, 40-1, 44-7

Council of Australian Governments (COAG), 2, 8, 27, 30

Performance and Accountability Framework 2011 (the Framework), v, 2, 24, 27

Crowe Horwath, 47

D data collection and data quality access to data, 10, 33 burden on jurisdictions, 39 data governance, 39

National Health Performance Authority | Annual Report 2013-14 141

data specifications, 36 data standards, 36, 38-9 data visualisation, 34 Data Plan, viii, 39 interpretation and comparability of data,

vii, 19

longitudinal, 10, 11 nationally consistent, v, vii, 27, 30, 31, 36 private hospitals, 39 security, 39 storage, 39 Three-Year Rolling Data Plan 2014-15 to

2016-17, 14, 26, 39

Data Specifications and Standards Technical Committee, 46

Deputy Chairman, 15 appointment, 13

Directors, 3

disability reporting, 55-6

E ecologically sustainable development, 55

emergency departments, viii, 25 Hospital Performance report, viii, 6, 10, 24, 29, 32

employee assistance program, 52

Engagement and Consultation Plan, 37

Enterprise Data Warehouse (EDW), 39

environmental performance, 55

ethical standards, 52

Executive Committee, 3, 45, 47 role, 45

Executive Directors, 3

external scrutiny, 47 independent auditor’s report, 58-9

F Faulkner, Patricia, 10, 13 profile, 15

see also Chairman

Filby, Dr David, 13, 19, 124 profile, 16

finance expenses, 53, 128 financial statements, 57-122 operating surplus, 53 overview of performance, 53 resource summaries, 127-8

Financial Management and Accountability Act 1997 (FMA Act), 2, 41, 44, 54

financial statements, 57-122

fraud, i, 40 see also risk management

Freedom of Information Act 1982 (FOI Act), i, 55, 56

G geographic areas, 30, 31

glossary, 135-7

governance corporate, 4, 40-1, 44-7 data, 39

governing body see Authority, the

GPs, viii, 24, 29, 34, 42

H health ministers, 11, 14, 32, 39, 40 see also Minister for Health, Australian Government

health productivity and performance commission, proposed, 12

Index

142 National Health Performance Authority | Annual Report 2013-14

Index

Healthy Communities reports, v, 2, 30, 125

Healthy Communities: Avoidable deaths and life expectancies in 2009-2011, viii, 24, 29, 34

Healthy Communities: Immunisation rates for children in 2012-13, viii, 6, 24, 32 media interest, 10, 33

Healthy Communities: Overweight and obesity rates across Australia, 2011-12, viii, 8, 25, 28 major report findings, 8 media interest, 8, 10, 33

Healthy Communities: Selected potentially avoidable hospitalisations in 2011-12, viii, 5, 24, 28

Healthy Communities: Tobacco smoking rates across Australia, 2011-12, viii, 25, 28, 30 media interest, 33

Hospital Performance reports, v, 2, 30, 125

Hospital Performance: Cancer surgery waiting times in public hospitals in 2011-12, viii, 22, 24, 31 major report findings, 22 media interest, 22

Hospital Performance: Healthcare-associated Staphylococcus aureus bloodstream infections in 2012-13, viii, 6, 11, 24, 29 private hospital participation, 11

Hospital Performance: Length of stay in public hospitals in 2011-12, viii, 6, 24, 28, 32

Hospital Performance: Time patients spent in emergency departments in 2012 and 2013, viii, 6, 10, 24, 29, 32

hospitalisations avoidable, Healthy Communities report, viii, 5, 24, 28, 31

length of stay, Hospital Performance report, viii, 6, 24, 28, 32 waiting times, cancer surgery, Hospital Performance report, viii, 22, 24, 31

hospitals see MyHospitals website; Hospital Performance reports; private hospitals; public hospitals

human resources, 48-52 see also staff

I immunisation rates, children, 5 Healthy Communities report, 24, 32 media interest, 10, 33

independence, v, vi, vii, 4, 10, 24, 25

independent auditor’s report, 58-9

Independent Hospital Pricing Authority, 39

infections, preventable, 5

Information Communications and Technology (ICT) Committee, 47

information management, 4, 38-9

Information Publication Scheme (IPS), 56

internal audits, 40, 47

J Jackson, Professor Claire, 13, 19, 124 profile, 16

judicial or tribunal decisions, 47

Jurisdictional Advisory Committee (JAC), 12, 19, 37, 38, 39, 45 chairman, 19, 124 establishment, 19 membership, 19, 124 see also Australian Government; state and

territory governments

National Health Performance Authority | Annual Report 2013-14 143

K key performance indicators, 27

L length of stay in hospital, 6

letter of transmittal, i

Local Hospital Networks, 11, 26, 38

M management and accountability, 40-1, 43-56

market research, 55

media engagement, 35 cancer surgery waiting times report impact, 22 immunisation report impact, 33 number of mentions, 6, 8, 35 overweight and obesity report impact, 8,

33

social media, 36 tobacco and smoking report impact, 33

Medicare Locals, v, 11, 24, 30 health profile presentation, 34 number of catchment areas, 30 peer group presentation, 30, 31 see also Healthy Communities reports;

MyHealthyCommunities website

METeOR, 36

Minister for Finance, Australian Government, 44

Minister for Health, Australian Government, 13, 44

mission, vi

MyHealthyCommunities website, v, 26, 31, 33, 35 AAP citation on usefulness, 6, 35

address, 42 description, 42 information updates, viii, 24, 26, 27, 29, 35 MyReport function, 25, 35

MyHospitals website, v, 35 address, 42 description, 42 inclusion of private hospital data, 11, 20 information updates, viii, 24, 25, 26, 27,

28, 35

redevelopment, 27, 35

MyReport, proposed new website function, 25, 35

N National Disability Strategy, 56

National Health Funding Pool, 39

National Health Information and Performance Principal Committee, 39

National Health Performance Authority (the Performance Authority) Chief Executive Officer (CEO), 3, 19, 44, 47

establishment and history, v, vii, 2 overview, 1-7 role and function, v, 2-3

National Health Reform Act 2011 (the Act), v, 2, 13, 44

National Health Reform Agreement (the Agreement), 21, 38, 39

O objectives longer term, vii performance against, 30-41 program, 4, 24, 25 strategic, 4, 30-41

Optum, 52

Index

144 National Health Performance Authority | Annual Report 2013-14

organisational structure, 3

outcome, 4, 24, 128

outlook, 7

overview, 1-7

overweight and obesity, 33 Healthy Communities report, viii, 8, 10, 25, 28, 33

P Parliamentary Committees, 47

peer groups, 19, 30, 31, 34

performance, 24-42 against Portfolio Budget Statements, 24-9 against strategic objectives, 30-41 assessment, 21 financial, 53, 57-122 key performance indicators, 27 qualitative deliverables, 26 summary, viii see also financial statements

Performance and Accountability Framework (the Framework), 2, 4, 24, 27, 31 indicator specifications, 11, 31 number of indicators, 31 reviewing, 11, 14, 31, 36

Performance Assessment Working Group, 14, 21, 38 Chairman, 21, 125 membership, 21, 125

performance indicators, key, v, 24, 25, 27 preliminary work on proposed hospital level indicators, 11, 32 see also Performance and Accountability

Framework (the Framework)

performance pay, 51

planning see also Strategic Plan

Portfolio Budget Statements, 4, 45 performance against, 24-9 qualitative deliverables, 26

presentations at conferences and events, 37, 126

primary health care, v, 2, 11, 19-20, 24, 30, 38 Healthy Communities report, 31 measurement of outcomes, 36 performance information, 35 see also Medicare Locals;

MyHealthyCommunities website

Primary Health Care Advisory Committee (PAC), 19-20, 38 chairman, 19, 124 establishment, 19 membership, 19-20, 124 review of function, 38

Primary Health Networks, 11

Prime Minister, 13, 15, 44

priorities, future, 11

private hospitals establishment of Private Hospital Advisory Committee, viii, 14, 20 participation in hospital reporting, 11, 20 private hospital data plan, 39

procurement, 54

public access to information, 26, 27, 33-6

Public Governance, Performance and Accountability Act 2013 (PGPA Act), 41

public hospitals, 2 cancer surgery waiting times, viii, 22, 24, 28, 31 comparing, 19

Index

National Health Performance Authority | Annual Report 2013-14 145

emergency departments, viii, 6, 10, 24, 29, 32 length of stay, viii, 24, 28, 32 peer groups, 30 performance indicators, 11, 32 Staphylococcus aureus bloodstream

infection, 2012-13, viii, 6, 11, 24, 29 see also Hospital Performance reports; MyHospitals website

Public Service Act 1999 (PS Act), viii, 2, 44, 51, 129

purchasing, 54

R Reid, Professor Michael, 13, 20 profile, 17

report specific advisory committees, 37, 45, 46, 125

report specific technical committees, 45, 46, 125

Reporting Plan, 14, 40

Reporting Plan Committee, 46

reports, 5 across time, 6, 32 committees assisting in preparation, 125 dissemination, 34-5 Healthy Communities reports, v, 2, 24, 25,

26, 27, 28, 29, 125 Hospital Performance reports, v, 2, 24, 26, 27, 28, 29, 125 ‘InFocus’, 34 number of, 5, 10, 24 release strategies, 35-6 released in 2013-14, 28-9 report design, 33-4 ‘Update’, 34 website publication, 26 see also name of report

resource statement, 127

resource summaries, 127-8

risk management, 40

S social media, 34, 36

staff Determination renewal, 51 employee assistance program, 52 employment status and location, 49-50 Enterprise Bargaining Agreement,

preparatory work, 51 health and safety, 51 induction, 48, 52 learning and development, 48 number of, 49 overview, 49 recruitment, 48, 52 salary ranges, 51 Senior Executive Service (SES), 49, 50, 51 statistics, 49-50 training, 40, 48

stakeholders, vi, vii, 33 consultation/engagement, 4, 7, 12, 14, 34, 35, 37-8 subscription alert, 36

Standing Council on Health, viii consultation with, 37

Staphylococcus aureus bloodstream infections Hospital Performance report, viii, 5, 6, 11, 24, 29

states and territories, 13 committee representation, 19 consultation, 19 see also Jurisdictional Advisory

Committee

Stokes, Professor Bryant, 13, 18

146 National Health Performance Authority | Annual Report 2013-14

Strategic Plan 2012-15, 4, 7, 25, 30, 45

Strategic Risk Register, 40

surgery waiting times cancer, Hospital Performance report, viii, 5, 22, 24, 28, 31 elective, viii, 24, 25, 28, 32

Systems Applications Productions (SAP), 47

T tobacco smoking, 33 Healthy Communities report, viii, 25, 28, 33

Torzillo, Professor Paul, 13 profile, 17

trends in health care and the impact of improvements, 32

Twitter, 36

V values, vi

vision, vi

W Walsh, John, 13 profile, 15

see also Deputy Chairman

websites addresses, backcover corporate, 35 MyHealthyCommunities, v, 6, 24, 26, 29,

31, 33, 34, 35, 42 MyHospitals, v, viii, 11, 24, 25, 26, 27, 28, 34, 35, 42 redevelopment of MyHospitals, 27 tracking user patterns, 27

work health and safety, 51

Work Health and Safety Act 2011, 51

Work Health and Safety Committee, 46

workforce planning, 48

workplace relations, 51

National Health Performance Authority

MDP 158, GPO Box 9848 Sydney, NSW 2001, Australia Telephone: +61 2 9186 9210

www.nhpa.gov.au www.myhealthycommunities.gov.au www.myhospitals.gov.au