Middle East conflict supply surety update - 2 April

Fuel supply

The Department of Health’s Health Service Bulletin this week addressed liquid fuel supply and advised that the Department of Energy, Environment and Climate Action (DEECA) has activated its State Energy Emergency Team to monitor the situation following the ongoing conflict in the Middle East. It also advised fuel supply into Australia and Victoria remains stable.

We will continue to monitor the situation. 

Helium and medical gases

• Helium supply remains low risk, with sufficient local reserves available.
• Nitrogen oxide supply is not impacted, and suppliers do not anticipate any supply issues.
• Ethylene oxide used in sterilisation of medical devices and consumables is not impacted. Suppliers have sufficient supply available with ongoing deliveries.

Interagency collaboration

HSV continues to work closely with partners including Safer Care Victoria, DH and the TGA to monitor and assess supply signals.

• Medicine Availability Working Group (MAWG): the TGA is monitoring developments in the Middle East and engaging with industry and health sectors to manage potential risks to medicine supply. At this stage, there has been no observed increase in shortages, and consumers are encouraged to avoid unnecessary stockpiling.
• Medical Device Shortage Group (MDSG): the TGA has set up weekly meetings with jurisdictions to assess the supply situation and identify early warning signs of disruption. Jurisdictions have advised they are currently in a watch-and-monitor phase.
• ANZ Health Procurement Roundtable (ANZHPR): Chief Procurement Officers across the jurisdictions have set up a fortnightly meeting to understand supply impact in each state, and are in daily contact to share any news.

HSV Logistics – network and distribution preparedness

Our Derrimut and Dandenong South distribution centres are operating as normal. At this stage, there is no change to delivery frequency or service levels. We will keep our Logistics customers informed if this situation changes. 

Contract variation requests from suppliers

A small number of suppliers have contacted HSV so far requesting pricing increases in light of increased fuel costs. We are carefully assessing the requests on a case-by-cases basis and to date have not approved any price increases. We will keep you informed of any developments.

A reminder that if you receive any supplier communication regarding contract variations (supply or pricing) in relation to the Middle East conflict – whether they are HSV contracts or not – please let us know as soon as possible by forwarding any correspondence to the HSV Helpdesk: helpdesk@healthsharevic.org.au.

Suppliers have been advised they must not implement or apply variations (including by invoicing additional charges to purchasing parties) for HSV collective agreements unless written approval has been issued by HSV.

Next steps

We will continue to monitor developments with our suppliers and provide updates as the supply outlook changes.

If you require any support, please also contact Helpdesk. Please note that HSV Helpdesk will be closed on Tuesday 7 April.