Graduated compliance

HealthShare Victoria has a responsibility to monitor and support compliance across Victoria’s health service procurement sector. Our graduated compliance approach promotes tailored and measured responses to compliance issues, focusing on strategies that guide and support health services to do the right thing:

  • Where possible, we encourage the lowest level of intervention for compliance action.
  • Our approach recognises the capacity of health services to become compliant and responds to the behaviour and compliance history of the health service.
  • We promote compliance action proportionate to the level of risk and provide flexibility to escalate or de-escalate compliance action if required.
  • We champion an evidence-based decision making process.

All eligible and mandated health services are required to comply with HealthShare Victoria’s Health Purchasing Policies. The HSV Compliance Guidelines explain these requirements in detail. 

The graduated compliance values and Graduated Compliance Model further outline our approach to compliance.

Health services can access support tools to help them meet required compliance standards.

Complaints

HSV has formal mechanisms in place to investigate complaints from organisations including mandated health services, suppliers and other stakeholders.

  • HSV will manage any complaint submitted in accordance with the Complaints Management Procedure. This document also outlines the process for submitting a complaint.

Graduated Compliance Model

Our team uses a Graduated Compliance Model to assess compliance issues and decide upon an appropriate course of action. The model supports transparency and consistency, allowing HSV staff members to compare key assessment criteria against instances of non-compliance against the Health Purchasing Policies, or Act.

  • Reflective of our wider approach, the model encourages lower levels of intervention where appropriate.
  • The model determines a clear path of action according to the risk rating, frequency of incidence and compliance stance of the health service.

HSV will inform the health service of its assessment and provide it an opportunity to respond before taking further action. HSV recognises that procedural fairness promotes good governance and a fair decision-making process.

 

The model

Graduated Compliance Model5

Download an accessible version of the Graduated Compliance model.

 

The model explained

A range of scenarios and recommended actions are available to complement the recommended compliance responses.

Level 1 - Education and support

HSV staff members will work with health services to ensure they achieve compliance. This includes offering tailored advice and support, educational tools, templates and access to online training.

Level 2 – Administrative Action

Responses under the ‘administrative action’ layer require a little more consideration and will be tailored to the individual circumstances of the non-compliance. Depending on the severity of the compliance issue, HSV may choose to escalate the issue further within the organisation, or ask the health service to provide more information. In more serious cases, HSV may require health services to undergo a spot audit.

Level 3 – HSV Direction

In accordance with the Act, HSV has the power to give written directions to one or more public hospitals to ensure that probity is maintained in purchasing, tendering and contracting activities. Health Services must adhere to these directions, provided they are not inconsistent with an existing contract.

Level 4 – Report to the Minister

While HSV has the legislated responsibility to monitor compliance and report irregularities to the Minister, we will only do this in the most serious of cases. HSV’s response may include referral to investigative government bodies, such as the Independent Broad-based Anti-corruption Commission. In most cases, health services will be given an opportunity to respond before HSV takes further action.

Graduated compliance values

Our graduated compliance values are based on the HSV organisational values. They reflect our practical, supportive and measured approach to compliance.

  • We are customer focused: We consider the implications of our compliance decisions and the resource requirements on health services.
  • We keep it simple: Our compliance response is measured and proportionate to the risk.
  • We are collaborative: We support and partner with health services to encourage compliance.
  • We take responsibility: Our consideration of compliance issues and decision making process is transparent and based on the relevant facts.
  • We inspire confidence: We do the right thing. We are open, honest and trustworthy. We aim to deliver best value procurement outcomes.