The benefits of complying with the HSV Purchasing Policies

Health services listed in Schedules 1 and 5 of the Health Services Act 1988 (Vic) have an obligation to follow the HSV Purchasing Policies (HSV PPs).

In addition to this legislative requirement, there are many reasons why it’s a benefit for health services to comply with the HSV PPs. Health services that comply demonstrate good governance, transparency, probity and value for money.

Public health services have a legislative obligation to comply with the HSV PPs

Section 134(3) of the Act states that public health services must comply with purchasing policies created by HSV (established under section 134).

Under section 131(d), HSV must monitor health service compliance with the policies. HSV also has an obligation to report any irregularities to the Minister for Health.

To view the Health Services Act, visit the Victorian Legislation website.

Complying with the HSV PPs means continued eligibility for Department of Health funding

The Department of Health’s funding policy requires public health services to meet various standards and obligations to continue to be eligible for government funding.

In relation to procurement and purchasing, the funding policy requires health services to demonstrate responsible financial management by complying with the HSV PPs, which includes participating in HSV PP reporting.  

To view the funding policy, visit the Department of Health website.

The HSV PPs promote good governance

The HSV PPs provide a framework for good governance. In requiring health services to establish clear roles, responsibilities and oversight mechanisms in their procurement activity, the PPs support health services to set up structures vital for accountable and effective management.

The policies cover topics such as:

• strategic planning
• risk assessment
• performance monitoring.

Value for money can be realised through the HSV PPs

The HSV PPs guide health services on realising value for money through:

• leveraging collective purchasing power
• conducting market analysis
• applying strategic sourcing methods to maximise efficiency and cost-effectiveness.

Transparency and probity are embedded in the HSV PPs

The HSV PPs embed principles of transparency and probity into procurement activity, which help to prevent conflicts of interest, corruption and unethical behaviour.

By adhering to the principles of transparency and probity, health services ensure their procurement activity:

• is fair
• is equitable
• is defensible
• has clear documentation and audit trails.

The HSV PPs support public trust and accountability

By adhering to the HSV PPs, health services assure stakeholders they are upholding public trust and can demonstrate their commitment to the ethical stewardship of public resources.

Transparent procurement practices ensure that decisions are made in the public interest.

Content reviewed: June 2025