Middle East conflict supply update - 10 April

HSV’s strategy for managing supply and costs

At HealthShare Victoria (HSV) we are refining a strategy to manage cost issues and supply surety.

Supplier price increase requests

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

We need to carefully balance several considerations in our approach and will be engaging with health services over the coming weeks and in the future to understand their views before taking a position.

We understand that health service budgets are under significant pressure. However, refusing valid price increase requests may jeopardise surety of supply, solvency of smaller suppliers and productive long-term relationships with our suppliers.

Surety of supply

In 2022 with support from Safer Care Victoria and the Department of Health (DH), HSV created a critical supply register (CSR) to address ongoing supply chain challenges. The CSR identified over 1,000 critical products to support continuity of supply at Victorian public health services, with a focus on clinical specialties that serve large patient cohorts, such as cardiovascular, emergency and critical care.

Since the start of the Middle East conflict, we have started reviewing the existing CSR. We are setting up time with Safer Care Victoria to work through the CSR and engage with clinical experts from across the sector to build further resilience in our supply chain.    

We continue to work closely with partners including Safer Care Victoria, DH and the TGA (Medicine Availability Working Group and Medical Device Shortage Group) to monitor supply issues.

Middle East impact updates

Fuel supply

We will continue to monitor the liquid fuel situation. Any health service queries about fuel should be directed to the Department of Health at hsim@health.vic.gov.au.

Alongside Hospitals Victoria, HSV is represented on the Fuel supply coordination management team, helping us to bring you the most up-to-date information..

Gloves

With some suppliers introducing allocation models for gloves, we have been in touch with suppliers to make sure we are across product availability issues.

Please ensure you submit your usual glove orders in good time. If your given allocation is not sufficient, please reach out to your supplier. We are available to support you if required.

HSV Logistics – network and distribution preparedness

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

Next steps

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.

If you have any issues with supply or require support, please also contact the Helpdesk.

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