Community & Business
7 December, 2023
Hospital’s improved financial performance
The financial performance of the Clifton Co-op Hospital Ltd has shown an improvement during the last financial year, although directors warn that there are still tough times ahead.
After a loss of just over $2 million in the 2021-22 financial year, the Co-operative ended the 2022-23 financial year with an improved result, albeit a loss, of $1,545,431.
While the business showed an improvement of $338,779 in income, the biggest impact on the bottom line was cost cutting.
The largest cost reduction showed in employee benefits and related expenses, where expenditure was down by $698,835.
However, this was offset to a large extent by a significant increase in contract labour which rose by $555,651 from $115,844 in 2021-22 to $671,495 in the last financial year.
Delivering his annual report, the Chairman of the Board, Andrew Douglas said the improved trend is continuing into the current financial year.
He described the last financial year as a year of consolidation and realignment.
“With the budget set and cash flow forecasts updated monthly, the board is targeting a return to surplus in 2023/2024, from which the future direction can be charted,” Mr Douglas said.
“To that end, the board and management remain keenly focused on improving the organisation’s performance and monitoring both revenue growth and cost reduction measures.
“Key among these are continued alignment of payroll expenses with service delivery requirements, increased hospital occupancy via the newly established, and prospectively other, partnership/s; continued growth of the Home Care service, increased revenue in the Medical Practice due primarily to an increase in the GP cohort, and general cost control.”
CCHS has been successful in increasing the number of GPs now working out of the Clifton Medical Practice.
Mr Douglas said an extensive recruitment campaign has yielded very positive results.
“Anchored by our long-term doctor and skin specialist, Dr Franco Rodriguez-Letters, the team now comprises some seven doctors in total, who consult with patients across both face-to-face and video health mediums,” he said.
“On that note, the practice is proud to have been selected as a pilot site for video-health in southern Queensland and we are pleased to have been able to partner with Darling Downs and West Moreton PHN (Public Health Network)and the University of Queensland to offer this service.”
Mr Douglas said recent months have seen CCHS awarded a number of grants which will see the further development and/or expansion of services over the coming period.
“Most notably these include: “‘Staying at Home’ ($1.222 million over three years) funded by the Australian Government’s Department of Health and Ageing being delivered in partnership with Dementia Support Australia to improve respite care for people with dementia and their carers; ‘Skilling Queenslanders for Work’ ($492,500 over one year) funded by the Queensland Government’s Department of Youth Justice, Employment, Small Business and Training to deliver training and support programs to up to 18 participants over the coming year; ‘Strengthening Medicare - General Practice Grants Program’ ($25,000) funded by Medicare in partnership with Darling Downs and West Moreton PHN; and, we are very pleased to announce after many years of concerted effort, a minibus funded by the Queensland Government’s Department of Justice and Attorney-General via its Gambling Community Benefit Fund ($74,447),” Mr Douglas said.
“When combined with the generous support of our donors, including the Clifton Hospital Auxiliary, Clifton Meals on Wheels, Clifton Golf Club, Clifton Lions Club, Clifton CWA and various others including a number of generous personal donations, this additional funding will underpin these important elements of our operation into the future.”
The meeting was told that cost pressures continue to be experienced in terms of both workforce and general operating expenses, as well as capital expenses.
Mr Douglas said while the future of rural, stand-alone, community based providers remains uncertain, it has been pleasing to see some improvements delivered as a result of lobbying efforts to peak industry bodies and governments.
“That said, it remains likely that partnerships of mutual benefit with like-minded organisations will
be required to ensure sustainability into the future, and as such, the board remains open to engaging with third parties in pursuit of synergies in this regard,” he said.
There was a sombre warning note from auditors McConachie Stedman who
pointed out that “...a material uncertainty exists that may cast significant doubt on the Co-Operative’s ability to continue as a going concern.”
