Health services tracking well on compliance audits

Results from health service compliance audits show a significant improvement in the implementation of HSV’s Purchasing Policies – previously known as the HPPs (Health Purchasing Policies) – that support the health sector’s procurement functions.

In the 2021-22 triennial audit, half of the health services audited were assessed as moderate risk requiring further consideration, while the remainder were deemed low risk and able to reach full compliance with education and support, based on HSV’s graduated compliance model.

The results highlight the inroads health services have made since the 2018-19 audit when three health services audited were flagged as high risk and reported to the Minister for Health, nine were moderate risk and 12 low risk.

HSV’s 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.

HSV Executive Director Finance, Risk and Governance John Delinaoum says he expects the next round of audits to show a further improvement following the introduction of the new HSV PPs late last year.

“The new HSV PPs are designed to be fit for purpose, allowing health services – particularly the smaller rural services – to meet the requirements while minimising the resources required to complete the regulatory process,” he says.

“We’re expecting to see higher rates of compliance in the next audit.”

Eastern Health Procurement Compliance Manager Kevin Quinn says the updated policies are more user friendly and less prescriptive.

“They provide more flexibility in terms of how health services demonstrate their compliance. This allows for health services to build compliance systems in different ways that suit their workflow,” he says.

Kevin says HSV’s consultative approach to the changes was very positive.

“Efforts were made to ensure the suggestions of health services were incorporated in the final policies.”

Echuca Regional Health Supply and Procurement Manager Fiona Langdon, who recently underwent the audit process, says it was a good test of the new policies.

“I was initially sceptical because I wasn’t sure how we were going to go with the new policies,” says Fiona.

“I was pleasantly surprised (with the outcome). It’s reassuring to know that our internal policies are still compliant with the new HSV PPs,” she says.

Fiona, who was part of the HPP Review Working Group, says she was happy that HSV had taken on board each member’s feedback. “It was really good to see that.”

The HPPs were reviewed last year with significant health sector engagement and consultation involving more than 98 health service representatives. Now, as the HSV PPs, the policies have been updated to better support health services to drive greater value for money and improve probity and best-practice procurement and governance.

The next triennial audit is due on 30 June 2023 and the CPO Compliance Portal is now open for 2022-23 audit submissions. You can also email them to compliance@healthsharevic.org.au. If you require a submission extension, please contact your Customer Relationship Manager.

HSV PP information sessions will be held on the following dates for health services:

• Tuesday 4 April 2023 11-12 – Register here
• Tuesday 2 May 2023 11-12 – Register here
• Tuesday 6 June 2023 11-12 – Register here

Information sessions for auditors will be held on:

• Tuesday 4 April 2023 1-2 – Register here 
• Tuesday 2 May 2023 1-2 – Register here 
• Tuesday 6 June 2023 1-2 – Register here

HSV Purchasing Policies are available on HSV’s website. A draft self-assessment is available to assist health services in their gap analysis between HPPs and HSV PPs. The guides, tools and templates are divided up and allocated with the relevant purchasing policy.