An audit of the state’s public hospitals has revealed Bendigo Health’s finances are at “high risk” of falling into the red across a number of key financial indicators.
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The report from Victorian Auditor-General Andrew Greaves shows the hospital is facing “immediate sustainability issues with insufficient current assets to cover current liabilities” and “insufficient cash available to fund operations”.
It also found a risk of “long-term run down to cash reserves and an inability to fund asset renewals” while “spending on capital works has not kept pace with consumption of assets”.
The report shows the hospital’s liquidity rating has been in the danger zone since at least 2012, while the average number of days cash available fell from 8.16 days in 2015 to 6.77 days in 2016.
Anything below seven days is considered “high risk”.
But a spokeswoman for Bendigo Health downplayed the report’s findings, saying the figures in the report did not relate to the hospital’s operating performance.
“The Victorian Auditor-General publishes a range of financial indicators, whilst useful, they do not relate to Bendigo Health’s particularly strong operating performance, nor reflect patient access or ever increasing demands on the health service,” she said.
The spokeswoman described the hospital’s operating result for the 2015/16 financial year as “outstanding”, having achieved a surplus for the ninth consecutive year.
“This positive result was achieved despite increased demand pressures, with over 50,000 emergency department presentations and an increase in patient admissions, elective surgical procedures, births and outpatient services,” she said.
“This was all in addition to the demands associated with the development of the new hospital.”
The spokeswoman said the new Bendigo hospital would “recognise a significant capital injection upon opening” and the 2015/16 financial year result had allowed the organisation to build up cash reserves, improve liquidity and increase capital expenditure.
“The Bendigo community should take comfort in the continuing strong operating performance of their health service,” she said.
“The board and executive see no reason why this trend can’t continue.”