29 May 2023

HSV forecast to deliver $190 million in benefits in FY23

HSV forecast to deliver 190 million in benefits in FY24

HealthShare Victoria (HSV) is on track to help deliver $190 million in benefits in FY23 – $26 million above target, as post-COVID challenges continue to put upward pressure on costs.

While the impact of inflation and the global manufacturing shutdown during the pandemic continue to be felt throughout the supply chain, HSV is seeking input from health services to help it deliver more value.

Health services are being asked to submit their feedback on the proposed FY24:H1 Procurement Activity Plan (PAP) covering the period from July 2023 to June 2025, by close of business on Wednesday 7 June 2023.

The PAP provides an overview of HSV’s sourcing activities over the coming two years, including existing contracts and progress to its $838 million savings target.

The $190 million in benefits includes $22.5 million in cost reduction and $158 million in cost avoidance.

HSV Chief Executive Neil Rodaway says while more work needs to be done to reduce costs, we need to recognise the value of cost avoidance, particularly in the current inflationary environment.

“HSV is taking the time to plan and engage with health services as we work through the post-COVID backlog. We need input from health services to help us deliver the best possible value.”

HSV has completed 20 of the 25 activities outlined in the PAP between January and June 2023, representing $1.2 billion in value under contract.

The draft HSV PAP FY24:H1 is now available for download on the HSV website.

Please note the PAP is only available to health services and should not be shared outside your organisation. You must be logged into the website to access the PAP.

For more information about HSV's procurement activities, please contact an HSV Customer Relationship Manager or the HSV Helpdesk at helpdesk@healthsharevic.org.au or phone 03 9947 3900.