2 November, 2022
Clifton Health Service loses $2m
After what many would consider to have been a volatile year for the Clifton Co-op Hospital Ltd (Clifton Community Health Services), the organisation has reported an operating loss of just over $2 million.
The huge loss has come about as a result of several factors, most notably a significant drop in revenue when compared to the previous financial year.
In 2020-21 the Health Service achieved revenue of $8,129,833 however this slumped in 2021-22 by more than $1.5 million to $6,600,698.
In 2020-21, the Service also had income of $140,259 from financial investments, but in the last financial year, this actually became a loss of $95,056.
Expenses for the Health Service in 2021-22 increased in a number of areas including employee benefits and related expenses, which were up by $59,507 and contract labour, which cost $106,290 more last financial year than in the previous year.
In his report to the annual general meeting of Clifton Co-op Hospital Ltd, chairman of the board, Andrew Douglas said the reduced availability of General Practitioners for the Medical Centre had an impact on both the organisation’s capacity to service the requirements of local patients in a timely manner and on revenue.
“While an extensive recruitment campaign is yet to see the appointment of additional doctors, there are a number of discussions currently in progress which, it is hoped, may lead to additional resourcing in the foreseeable future,” Mr Douglas said.
“More generally, pressure on the availability and cost of maintaining a skilled workforce of appropriate size remains.
“On this and the issue of financial sustainability more broadly, concerted lobbying efforts, both individually and collectively with other providers, to
both peak industry bodies and government, are yet to yield a tangible result specific to our operation or, indeed rural stand-alone, community based providers.”
Mr Douglas said the significant deficit realised by the Co-operative this year has not been offset by considerable Covid related subsidies, as were received in the previous period.
“Home Care establishment costs, reduced Medical Practice income and higher than industry benchmark payroll expenses relating to direct care and hotel services, have also contributed materially to the financial result,” Mr Douglas said.
