A Chilean refugee tries to make a new life for himself in Wandin Valley, but ghosts of his past come back to haunt him. Matt tries to trick Cathy into letting him stay with her, but she turns the table on him.
Alex starts having contractions and is convinced she is losing the baby. Jo goes to Sydney to try and find her mother. Alex gives birth to a girl, but her chances of survival are very slim as the baby's lungs are not fully developed and she has stopped breathing once already. Alex realizes that even is the baby survives it will possible have brain damage but she doesn't care-all she wants is for her baby to live. But it is not to be, baby Laura dies. Jo is devastated when her mother refuses to acknowledge her.
Alex warns a young athlete about the dangers of taking steroids. Shirley is having trouble coping with Jo and Michael's impending departure from Wandin Valley. Alex is finding it hard to convince Meredith not to continue taking steroids, so Matt decides to use some scare tactics. Jo has some serious thinking to do about her future with Michael.
New nurse Lucy Gardiner tries Matron Sloan's patience but winds up charming Bob. A customs officer arrives in town to investigate a snake smuggling ring and she and Matt don't exactly hit it off. Matron Sloan and Terence are furious when the new locum doctor goes to the racetrack instead of looking after a patient. Lucy brings home an unusual acquisition.
The latest new locum is giving Shirley a hard time and has Esme close to tears-but her affect on Terence is quite the opposite. Matt tries to impress Lucy with his masculine charm. Quick action is required to save Bob when he is caught snoozing in a burning barn. Frank wants Matt out of his house and is trying desperately to off-load him onto anyone else who will take him. Lucy moves into Boolaroo with Cathy. Terence sees Dr. Rankin's true colours when she prescribes the wrong medication for a patient.
Yet another locum doctor arrives and Terence is hoping that this one will be better than the last two. He soon has reason to doubt it but Dr. Cris Kouros' methods seem to be very alternative which endears him to Shirley, if not the rest of the hospital staff. Cathy tells Matt that Lucy finds him rather interesting. Matron Sloan tries to drum some discipline into Dr. Kouros. A farmer's wife ends up with severe poisoning from a lethal mix of pesticides. Cris shows off his operating skills when Cathy has an accident whilst out riding with the new doctor.
Everyone is waiting for a glimpse of the girl Cris describes as his "beautiful Jessie." Cathy tries her hand at writing a romance novel and is concerned when Matt takes the story quite literally. Maggie contemplates giving up work to look after a girl, rather than see her institutionalized. Frank is a runaway success when he takes over as the club's chef for a day. Matt gets Cathy's story published in the local paper. Everyone is surprised when Jessie turns out to be Cris' six-year-old daughter.
Matron Sloan is worried about the hospital's future and takes her anger out on Lucy. Jessie starts at her new school. Cathy sweet-talks Matt into helping her catch a runaway horse. Cris and Terence battle to save Maggie's life after she suffers a heart attack. Lucy feels guilty and blames herself for Maggie's illness, especially after they had argued earlier. Cathy makes an offer to buy Pippa the horse for her owner.
Matron Hilda Arrowsmith arrives at the hospital and Maggie is convinced her old nemesis is up to no good. A childless couple pin all their hopes on an IVF program. Maggie uncovers the truth behind Hilda's apparent friendliness-she is trying to keep well in with the committee so that she'll be elected regional head of the Institute of Nursing Directors. If she is elected, it be over Maggie's dead body! Matt throws the cat among the pigeons when he tells Cathy and Lucy that Cris is leaving the Valley.
When Terence leaves to visit Alex, Cris' old friend Sandy McIntosh fills in as the latest locum. Sandy's medical abilities are superlative but his social and professional etiquette leave a lot to be desired. Cris becomes worried about his friend and discovers Sandy is a pethidine addict. Matt becomes a successful radio star in his segment "Pet Vet" on Clover Owen-Jones' morning radio program. Terence's visit to see Alex seems to have proven unsatisfactory.
Cathy has an unexpected house guest, her sister-in-law Michelle. The circumstances of her visit are not what they first appear to be when she tells Cathy that Cathy's brother John has run off with another woman and taken their daughter Megan. When Michelle takes Jessie, with no warning, it becomes evident that she is suffering from Schizophrenia and is under the illusion that Jessie is her daughter. Cris and Lucy's friendship deepens. Terence helps Michelle understand the reasons behind her illness.
Matt loses all his worldly goods when a fire breaks out in his caravan. Susan Baxter's medical condition is not helped by the constant fighting between her husband and teenage daughter. The situation comes to a head when Joe Baxter learns his daughter has been prescribed the pill. Susan collapses in pain and is rushed to hospital. The Wandin Valley Bush Brigade is on its way to raising money, its membership, and frequency of its drill practices. Matt says he is leaving town.
Matt has begun to pack, ready for the bid move. He has put his practice up for sale. Shirley and Frank are awaiting the arrival of Julian "Luke" Ross but he is nowhere to be seen. Frank, his probation officer, is not impressed. They are in for an even bigger surprise when they discover the identity of the driver of a speeding truck they have pursued-Luke is rushing the unconscious truck driver to hospital but Frank is not convinced of Luke's motives. When Cathy's horse falls ill, she insists the new vet treat Pippa. Luke discovers the truck he hot wired for his ...
A road accident throws two unlikely characters together, a one-legged bike riding grandma and Skeeter Martin-the sparks fly. Wandin Valley fires up for a dart match against Burrigan. Luke takes a runaway street kid, Kim, under his wing. Kim is on a search for her natural parents and is convinced they are in the Valley. Skeeter's attitude towards Eileen has changed, in fact he seems quite smitten. He visit's her in hospital with a gift and becomes her defender when Eileen's daughter insists her mother should return home with her.
The locals are looking forward to the return visit of cricket star Stewart Richmond. The Richmond's world is turned upside down when what they think is a passing case of pneumonia that Stewart is suffering from is in fact AIDS. When the hospital staff find out they over-react. Jessie's friend Freya comes to stay. She has not spoken a word since the death of her younger brother in a car accident. She is cured by an unexpected sighting of a unicorn. Matron Sloan, with Lucy's help, explains the facts about the AIDS virus to the hospital staff.
Petrol sniffing victims are rushed to the outback clinic at Marlu Ngurra and Terence again witnesses Alex's total commitment to the people of the settlement. He realizes the only way that they can stay together is for him to move to Marlu Ngurra. Shirley returns from her Queensland holiday to finds a new computer installed at the clinic.The Valley residents are surprised when Terence returns early without Alex. Luke is involved in a car accident in which he heroically rescues young Kylie Donnelly from the wreckage. The medical team, led by Terence, save Kylie's life. ...
Pollution and the environment become issues in the Valley following Lucy's visit to the local tip. Cris is faced with a medical and personal dilemma when his sister Stephanie comes to visit. Matron Sloan is being evasive about the reason for her day off with Mary Sheridan. Terence's old flame Marianne Kubik is called back to Wandin Valley by matron Sloan when Terence hurts his back. A potential scandal surrounds the discovery of contaminated hospital waste at the tip. Matron Sloan attends a naturalization ceremony.
Lucy and Muldoon argue over the state of the tip and she unearths some interesting information with the help of the eccentric Vincent D. Smith. Terence performs a risky operation on Jill Ryan following a fall on the beach. Luke is offered a job at Matt's surgery. With the help of Burrigan's neurologist Phil Greening, Terence tries to revive Jill from a coma. Muldoon makes a serious mistake in his attempt to prove that there is no pollution in the water supply.
Adam Campbell returns to the Valley, but he is reluctant to go home to see his father. Luke and Jessie play a profitable joke on Frank. Danny Lalor steals drugs from Matt's surgery. Ted Campbell believes he can buy his son's health when he arranges to buy a kidney from Asia for a transplant for Adam. Frank and Shirley are concerned about Jessie, Cris has left her alone again while he's in Melbourne.
Cris is accused of maltreating Jessie and is investigated by Maureen Hutchins from Family and Community Services. Luke's suggestion goes from a small business turns into big chaos when Bob and Cookie go to the dogs. Jessie is badly bruised and her teacher believes Cris is abusing her. Cris pays the school a visit and Jessie reveals the real reason for the bruises on her legs. With Cathy away, Matt and Lucy do their best to cope with domestic duties.
Racial prejudice rears its ugly head with the arrival of beautiful Thai locum, Doctor Supatra Pasert. Her presence causes resentment among some of the residents of the Valley and especially from Vietnam veteran Dennis Taylor. Cris is having trouble with Bree, Jessie's new baby-sitter. David Mawby, a new nurse, arrives at the hospital looking for Dr. Supatra. Matron Sloan finds a surprise jockey to race her horse, Scarlett. Cris finds the perfect baby-sitter.
Darren Stiles, a partner in crime from Luke's past, comes to visit. Little Hedley Johnson faces a delicate operation with the help of his pet-a ferret. Lucy is injured in a game of tennis with Matt and it turns out to be more serious than it first seemed. Lucy's mother arrives in the Valley and she and Cookie have a plan to cheer up Lucy after her operation. Luke is forced to confront his memories of his own mother wafter a frightening incident involving Darren and Shirley. Lois takes quite a shine to Matt. Bob and Cookie devise a scheme to sell "exotic table birds."