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Central Adelaide Local Health Network Incorporated

Functional responsibility

The Central Adelaide Local Health Network Incorporated (CALHN) is established pursuant to the Health Care Act 2008.

The powers and functions of the CALHN are to establish, provide, maintain and enhance hospital, medical and allied health services in its local area.

Under the Health Care Act 2008 the Chief Executive, Department for Health and Ageing assumes direct responsibility for the administration of incorporated hospitals. This includes the appointment of the Chief Executive Officer of CALHN. The Chief Executive, Department for Health and Ageing cannot give a direction concerning the clinical treatment of a particular person.

Financial statistics
Total expenses: $1983 million
Net cost of providing services: $1571 million
Revenues from SA Government: $1430 million
Employee benefits liability and related on-costs: $355 million
Workers compensation liability: $29 million
Number of FTEs: 10 235

Significant events and transactions
  • The new Royal Adelaide Hospital (RAH) Public Private Partnership (PPP) project continued.
  • In September 2015 contractual arrangements with the PPP consortium were revised. Commercial settlement of ongoing remediation contamination claims, capital modifications and other disputed matters extended the contractual delivery date by 76 days.
  • The new RAH is now expected to open by November 2016.
  • In October 2014, Cabinet approved additional funding for State funded works for the new RAH totalling $176.6 million, increasing the estimated nominal construction cost of the project (including State works) to $2.3 billion.
  • In 2014-15 Cabinet approved an expression of interest for the development and occupation of the existing RAH site.

Financial statement opinion

Financial controls opinion
Key issues:
  • Inadequate review of employee level payroll information
  • Systems access (including delegations) not adequately reviewed
  • Areas where procurement practices could be improved
  • No records of professional development leave entitlement
  • iPharmacy access controls require improvement
  • Improvement necessary to ensure completeness of revenue