Report highlights HSV focus on maintaining PPE supplies during pandemic

A report released by the Victorian Auditor-General’s Office (VAGO) has described the challenges faced by HealthShare Victoria (HSV) while ensuring ongoing supplies of essential personal protective equipment (PPE) for Victoria’s health sector during the COVID-19 pandemic.

Key points:

• HSV, by working with all stakeholders including health services, government departments, and existing and new suppliers, was able to mobilise key supply chain elements quickly and meet the urgent need for PPE supplies in Victoria’s public health sector.
• Where Victoria’s health sector was required to ‘quarantine’ stock over time in line with updated TGA advice on PPE standards, HSV and the Department of Health are exploring ways to repurpose PPE.

Despite significantly increased global demand, HSV was able to source $1.2 billion of products as part of the State’s overall spend of $4.4 billion in PPE to ensure health services were supplied with PPE for their healthcare workers.

Shortages in raw materials exacerbated by political decisions made in China, the United States, India and some European countries created an environment similar to wartime purchasing behaviour, in which HSV needed to compete for a place in the production queue for limited supplies of essential PPE and other equipment.

VAGO’s report 'Management of spending in response to COVID-19' has highlighted how increased global demand for PPE led to higher prices, variable product quality and delays in receiving the required volumes of essential items.

“While it has been difficult to source products from unfamiliar, overseas suppliers, ultimately we were able to meet the urgent need for supplies in Victoria’s public health sector and help ensure hospitals were able to continue to protect their staff and patients,” says HSV Executive Director Finance, Risk and Governance John Delinaoum.

Almost half (48 per cent) of HSV’s COVID-19 PPE suppliers were new, and approximately 11 per cent of the PPE procured was sourced from Australian manufacturers.

“We sought to mitigate external global challenges by researching PPE models and brands that met relevant standards and health service requirements, and by placing orders with multiple suppliers from a range of places and from local manufacturers where we could,” he says.

“We also worked hard to negotiate with suppliers on price – for example we were able to secure a price reduction of $1.84 million on N95 respirators.”

Where stock received was not fit for purpose, Victoria’s health sector was required to quarantine stock. HSV is now working with the Department of Health to repurpose PPE that did not meet updated Therapeutic Goods Administration (TGA) standards and support other sectors and regions.

The report also highlighted the challenges of procuring PPE while at the same time establishing a Victorian stockpile for these items.

Before the pandemic, Victoria did not have a State PPE stockpile, as its public health system features individual health services managing their own PPE supplies. In March 2020, a State Supply Chain involving the then Department of Health and Human Services, HSV and Monash Health was established to source, purchase and distribute PPE for Victoria’s health sector.

“HSV responded quickly to the crisis and we balanced value for money (quality and price) and availability (surety) as best we could under the circumstances at that point in time,” says John.

“VAGO’s report did not list any specific recommendations for HSV. We will continue to work with all areas of government to support improvements in critical incident procurement for the benefit of stakeholders in future.”

For more information, contact a HSV Customer Relationship Manager or the HSV helpdesk on (03) 9947 3700 or email helpdesk@healthsharevic.org.au.