HSV Purchasing Policies FAQs
Do the HSV Purchasing Policies still apply if my health service is included in a Victorian Local Health Service Network?
Yes. HSV Purchasing Policies (HSV PPs) continue to apply to all mandated Victorian public health services listed in Schedules 1 and 5 of the Health Services Act 1988 (Vic), including those now grouped under a Local Health Service Network. The establishment of the Networks on 1 July 2025 does not change the legislative requirement for health services to comply with HSV PPs.
Each health service within a Network retains its own identity, leadership, and procurement responsibilities. Therefore, compliance with HSV PPs, which cover governance, strategic analysis, market approach, contract management and asset disposal, and collective purchasing and supply chain, remains mandatory.
The Networks group health services within a geographical region and are responsible for supporting collaborative care close to home. They are a key reform pillar under the Health Services Plan.
Under the Health Services Act 1988 (Vic):
- HSV is required to monitor compliance with purchasing policies and report irregularities to the Minister (s131(d)).
- A Chief Executive must provide audit reports to HSV (s132(2)(d)).
If you have any questions regarding HSV PPs or reporting requirements, please contact the HSV Compliance Team at: compliance@healthsharevic.org.au.
Does the Chief Procurement Officer (CPO) role need to be its own position within a health service?
No, the CPO role, duties and responsibilities can be included in another role, such as Chief Financial Officer. HSV PP 2.2 a) requires the health service to identify and document the roles, responsibilities, and capabilities.
Does the Fair Jobs Code apply to health services procurement activities?
The Fair Jobs Code applies to certain procurement activities in all Victorian Government Entities.
The Victorian Fair Jobs Code seeks to:
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promote fair labour standards;
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encourage compliance with employment, industrial relations and workplace health and safety obligations;
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promote secure employment and job security;
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foster cooperative and constructive relationships between employers, employees and their representatives;
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promote workplace equity and diversity; and
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encourage supply chain companies to comply with similar employment standards.
This Code applies to:
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all Victorian Government Entities;
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all suppliers seeking to be considered for threshold procurement contracts or high-value procurement contracts with a Victorian Government agency; and
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all businesses seeking to be considered for significant business expansion grants from a Victorian Government entity.
From 1 December 2022, all Victorian Government entities must apply this Code to all tender processes (and subsequent procurement contracts), and grant applications (and subsequent grants) released to the market or to the public on or after this date. We are unaware of any exemptions to the rules, so we would encourage HSs to consult with legal departments to determine the exact applicability.
Does a health service need to submit its entire procurement activity plan to HSV?
No, health services are only required to submit a summary of their 12–18 month Procurement Activity Plan.
Does a health service need to publish its entire procurement activity plan on its website to be compliant with HSV PP 1 2.2 e) iv.?
No, health services are only required to publish a summary of their 12–18 month Procurement Activity Plan.
Does the Victorian Government Procurement Board (VGPB) Goods and Services policies (Vic) apply to health services and the HSV Purchasing Policies?
No, while the VGPB expanded the number of mandated agencies to comply with its policies on 1 July 2021, it did not include Health Services listed within Schedule 1 and 5 of the Health Services Act 1988 (Vic).
Please note below a link to the specified Departments, Agencies and Expanded Agencies that the VGPB Policies apply from VGPB’s website.
As per Victoria Government Gazette dated 29 April 2021. The Financial Management Act 1994 (Vic) includes entities regarding supply policies, but the named agencies/entities below were specifically excluded.
How does a health service submit its contracts register, procurement activity plan and on-selling registers to HSV?
Health services can submit their contracts register, procurement activity plan and on-selling registered via the CPO Compliance Portal or to compliance@healthsharevic.org.au
If a health service uses BRAVO/Jaggaer, can HSV download a copy of their contract register yearly?
Yes, with the health service permission. HSV will download a copy of the health service contract list each year. This will mean the health service is compliant with HSV PP 1 2.2 e) v. To arrange this, please contact your Customer Relationship Manager.
Is a health service obligated to purchase inventory from HSV’s Supply Chain as of 1 January 2024?
If a health service has been on-boarded to purchase from HSV’s Supply Chain, this requirement is mandatory. If a health service has not been onboarded, this requirement is not applicable until it has been on-boarded.
Is there an expectation for auditors to complete 10, 20 or 30 sample testing to audit against the HSV Purchasing Policies?
Auditors should work with health services to determine the right sampling size, depending on spend, complexity and risk of the procurement activities within the health service. It should be based on materiality.
Is there an expectation that health services auditors are to audit against Part 3 of the HSV Purchasing Policies?
No, Part 3 of the HSV Purchasing Policies provides examples, or further explains, how a health service can implement the requirements in Part 2.
What is the difference between Part 2 and Part 3 of the HSV Purchasing Policies?
Part 2 of the HSV Purchasing Policies, that is, the principle and associated mandatory requirements are to be met. They are as the term suggests mandatory. Part 3 is supporting material to explain or provide examples for health services. Part 3 is not mandatory and should not be audited against. It may help with identifying evidence a health service may show its auditors.
Content reviewed: July 2025