Note 14. Supplies and Services

 

2015
$’000

2014
$’000

Audit Expenses

454

459

Blood Products

8,856

8,494

Clinical Expenses/Medical Surgical Suppliesa

64,034

59,487

Communicationsb

3,617

4,171

Computer Expensesc

38,281

33,742

Contractors and Consultants

7,578

7,229

Domestic Services, Food and Utilitiesd

33,509

32,025

General Administration

18,194

17,516

Hire and Rental Charges

4,216

4,279

Insurance

30,993

31,181

Minor Capitale

4,054

3,341

Non-Contract Servicesf

4,718

5,130

Operating Lease Rental Paymentsg

7,170

6,415

Pharmaceuticalsh

37,834

35,476

Printing and Stationery

2,529

2,566

Property and Rental Expensesi

2,305

2,717

Public Relationsj

686

898

Publications

1,348

1,299

Repairs and Maintenancek

17,023

15,851

Staff Development and Recruitment

6,973

6,682

Travel and Accommodation

1,013

1,152

Vehicle Expensesl

1,207

1,490

Visiting Medical Officersm

27,279

29,076

Total Supplies and Services

323,871

310,676

  1. The increase in clinical expenses/medical surgical supplies is mainly due to inflation and growth in patient activity in acute care services, mental health, community health centres, the Centenary Hospital for Women and Children, the Canberra Region Cancer Centre, community nursing, emergency department, and outpatient and imaging services.
  2. The decrease in communications charges is due to lower postage costs from fewer mail outs and reduced landline charges due to savings through a new whole-of-government contract.
  3. The increase in computer expenses is due to a combination of factors, including inflation, increase in staff numbers, support costs for projects that became operational during the year such as the Digital Mammography, Calvary PAS Integration and Clinical Portal Suites software packages and $1.5m expenses relating to a prior year which was accounted for as a prepayment instead of being expensed in that year.
  4. The increase in domestic services, food and utilities is for water and sewerage rates and cleaning services from a full year effect of new buildings beginning operation. These new buildings are the Belconnen Community Health Centre, the Centenary Hospital for Women and Children, the Canberra Region Cancer Centre and the expanded Tuggeranong Community Health Centre.
  5. The increase in minor capital is due to a rise in the purchase of furniture and fittings, and medical and surgical assets under the capitalisable threshold of $5,000.
  6. The reduction in non-contract services is due to lower use of registered nurses from external labour providers.
  7. The increase in operating lease rental payments is a result of changing motor vehicle leases from finance leases to operating leases from 23 April 2015.
  8. The increase in pharmaceuticals is due to inflation and an increase in the use of high cost drugs.
  9. The reduction in property and rental is due to the cessation of renting office space at Swanson Plaza in Belconnen and the cessation of renting additional office space for staff while construction work was in progress.
  10. The reduction in public relations is due to cost savings for promotional activities including refreshments and displays/events.
  11. The increase in repairs and maintenance is due to the need for repairs on ageing assets and inflation.
  12. The reduction in vehicle expenses is due to the change in motor vehicle lease type from finance leases to operating leases with these costs now reflected as operating lease rental payments, as well as lower fuel charges in 2014-15.
  13. 2013-14 included $1.1 million relating to services from 2012-13 and in 2014-15 several visiting medical officers were replaced by salaried specialists.