HSV Conflict of Interest Policy

This policy provides HealthShare Victoria (HSV) committee members with clear protocols for the management of conflicts of interest.

Scope

This policy applies to all persons who are HSV committee members.

Definitions

Conflict of Interest	is a situation in which a HPV Committee member has a competing professional or personal interest which could make it difficult to impartially carry out duties. Essentially, it refers to the existence or perception of divided loyalties. A Conflict of Interest exists when it is likely that the Committee member has an actual, perceived or potential opportunity to favour their own interest, or the interest of a third party, to the interest of HPV.
Actual Conflict of Interest	is a set of established circumstances (interests) that detract from the Committee member fulfilling their obligation to HPV. Example: I own a 50% shareholding in a company contracted to HPV and supplying goods or services to Victorian health services.
Potential Conflict of Interest	is a set of established circumstances where actual conflict may result if one or more future known events occur. Example: One of my close associates owns a company which intends to supply medical product ‘X’ to Victorian hospitals.
Committee Member	Includes individuals who are members of an HPV Board Committee or an HPV Reference Group.
Close Associates	A close associate is a person who; holds or will hold any relevant financial interest, or is / or will be entitled to exercise any relevant power (whether in his or her own right or on behalf of any other person), is business or personal in nature, and by virtue of that interest or power may be able to exercise a significant influence over the Committee member, or with respect to the conduct of that business or personal activity.
Perceived Conflict of Interest	is a set of circumstances which may be seen to compromise the interests of HPV by diminishing the fairness and competitiveness of the HPV procurement process. Example: My brother owns a company which intends to supply medical product ‘X’ to Victorian hospitals. I do not have any direct management of the contract for the supply of medical product 'X'.
Material Relevance	means the existence of a relationship (with either positive or negative bias) (usually financial) where the relationship increases the probability of a Conflict of Interest.
'Pecuniary Interests'	is the potential for financial gain as a result of a Committee members position and personal interests which may result from owing a property, having unpaid debts or receiving hospitality or travel.
Non-pecuniary Interests	are interests that may bias the Committee members judgement even though there is no financial benefit.

Policy statement

All Committee members are required to avoid, disclose and manage all actual, potential or perceived Conflicts of Interest.

In particular, every Committee member must:

• perform their duties impartially
• actively avoid actual, potential or perceived Conflicts of Interest, financial or otherwise
• promptly report any actual, potential or perceived Conflicts of Interest (including all personal interests of material relevance that may lead to an actual, potential or perceived Conflict of Interest) to the Committee Chair.
• if in doubt whether a potential or perceived Conflicts of Interest exists, progress to disclose that interest.

Committee member responsibilities

All Committee members are responsible for:

• Actively complying with the obligations set out in;
  • Health Services Act 1988
  • Public Administration Act 2004
  • Code of Conduct for Victorian Public Sector Employees.
• being aware of their obligations to avoid, where possible, Conflicts of Interest
• assessing whether their personal or business interests have the potential to conflict with their responsibilities as a HPV Committee member
• disclosing in writing all actual, potential or perceived Conflicts of Interest in accordance with this Policy to the Committee Chair
• complying with all other requirements of this Policy.

Committee chair responsibilities

The committee chair must:

• ensure Committee members are aware of and comply with this Policy
• ensure that declared Conflict of Interests are managed in a manner that does not compromise the integrity of HPV
• progress declared Conflict of Interests to be recorded on the Committee’s Conflict of Interest register
• in conjunction with the affected Committee member, devise an appropriate Conflict of Interest Management Plan (Appendix 3).

Declarations

Committee members must sign a Conflict of Interest Declarations prior to commencing duties as a Committee member (and then annually thereafter) or, as soon as practicable, when they become aware of the conflict during a term on a Committee (Appendix 1).

Committee members must sign a Declaration of Private Interests prior to commencing a term as a Committee member (and then annually thereafter) or whenever there is a material change to a Private Interest (Appendix 2).

Completed declarations must be submitted to the Committee Chair.

For Reference Group members, completed forms must be given to the Managing HPV Staff member. Reference Group members are not required to complete the Declarations of Private Interest form at Appendix 2 unless they have a private interest that is reasonably likely to create a conflict with the interests of HPV or a Health Service in Victoria.

Where the Committee Chair wishes to declare a conflict, the declaration must be made to the deputy Committee Chair or the Director Finance Strategy and Governance.

In circumstances where a Conflict of Interest is considered serious, the Committee Chair shall report the Conflict of Interest to the HPV Chief Executive.

Confidentiality

The disclosure of actual, potential or perceived Conflicts of Interest may involve disclosing confidential information. Generally, this information will be kept confidential and will only be disclosed to relevant parties, which may include (but is not limited to) the Committee, appropriate HPV staff members, Department of Health and Human Services, the Minister of Health and external legal or probity advisors.

Breaches of the policy

HPV may initiate disciplinary action for breaches of this Policy.

Disciplinary action may include (but is not limited to) counselling, performance management or dismissal. Some breaches may be required to be reported to the IBAC or Victoria police.

References

• Code of Conduct for Victorian Public Sector Employees
• Health Services Act 1988
• Procurement Guidelines for Victorian Public Hospitals and Health Services - Openness and Probity in Victorian Government Contracts
• Public Sector Values and Employment Principles (Part 2 - Public Administration Act 2004)
• HPV Gifts, Benefits and Hospitality Procedure
• HPV Fraud and Corruption Control Procedure
• HSV employee (Values and Integrity) Code of Conduct