Ensure equitable and transparent use of available resources to achieve optimum outcomes.
Goals
- Develop and implement an approach to deliver an end of financial year balanced operating result in partnership with the department with a goal to manage cost growth effectively to ensure the efficient operation of the health service
- Implement reforms that support financial sustainability.
AV Deliverables
1
AV will improve operational efficiency, capability in financial planning and analyses and the annual budgeting and forecasting processes. In 2024-25 this will focus on continuation of a financial budgeting and forecasting tool, and associated processes by March 2025, to support development of the 2025-26 budget.
Associated Strategic Plan outcome
3.1 Our organisation is efficient enabling us to deliver more impact to our community
Associated AV Annual Plan Initiative
Financial Sustainability Plan
AV Achievements
AV has developed financial planning and analysis improvements, and monthly forecasting in accordance with DH reporting requirements, with efficiencies expected to support future budget processes.
AV has been working with experts in health services finances to assist with our future financial sustainability including developing financial improvement plans.
2
AV will also:
- implement strategies to control costs, such as negotiating favourable contracts with suppliers, optimising workforce utilisation, and managing healthcare technologies and equipment effectively
- utilise data analytics and performance metrics to identify areas of inefficiency and waste, and make evidence-based decisions to improve financial sustainability and operational performance
- develop robust financial forecasting models to project future revenue and expenditure, identify financial risks, and implement risk mitigation strategies to ensure long-term sustainability
- explore opportunities to diversify revenue streams through partnerships, grants, research funding, and other innovative financing models to reduce dependence on government funding.
Associated Strategic Plan outcome
3.1 Our organisation is efficient enabling us to deliver more impact to our communit
Associated AV Annual Plan Initiative
Financial Sustainability Plan
AV Achievements
AV has negotiated favourable contractual terms with a large information technology supplier to deliver considerable cost savings. Fleet management initiatives undertaken in FY25 are also expected to deliver significant capital savings from FY26 onwards.
Research and investigation into the use of medical supplies has resulted in significant efficiencies, waste reduction, and savings The use of ambulance services to deliver non-clinically necessary services has also been analysed resulting in significant efficiencies and savings.
Forecasting models were used to identify significant financial risks associated with the impacts of the Protected Industrial Action on AV鈥檚 revenue. Strategies to minimise this risk included the establishment of data sharing agreements with over 20 major health services across Victoria.
The growth of AV鈥檚 microdonations through AV鈥檚 membership portal continues to deliver additional revenue for AV.
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