The BHS annual report says the organisation has seen significant improvement in the financial performance of a number of key areas.

“(But)...it should be noted that the 2015/16 financial year has been particularly challenging with additional unbudgeted costs being incurred in relation to workplace culture external reviews, sick leave, and other associated costs,” the report says.

Health Minister Jill Hennessy said the state government was confident BHS could overcome the challenges of the past year and turn around its culture and performance. “With close to $30 million in additional funding provided to Ballarat Health Service in the last two years, the Ballarat community can be assured we will continue to invest in and support BHS to provide the care local patients need and deserve, now and into the future,” Ms Hennessy said.