HealthShare Victoria's role

HSV became a purchaser and a supplier of bulk medical consumables to health services on 28 June 2021.

HSV brings together the functions of the former state procurement organisation Health Purchasing Victoria and Melbourne Health Logistics (MHL) to deliver significant benefits for Victoria's public health system including:

  • driving savings and economies of scale through strategic procurement and bulk medical consumables purchasing
  • supporting better patient outcomes through more consistent stock availability and evidence-based product selection.

For suppliers, the move to HSV will:

  • facilitate more streamlined purchasing via a single purchaser over the long term
  • enable bulk purchasing agreements
  • consolidate delivery points.

Central distribution

HSV is building bulk stocks of medical consumable goods at our new 22,500 square metre Derrimut Distribution Centre (DC) in western Melbourne and a first round of orders on behalf of Victoria’s public health services has been completed.

HSV’s new supply chain operations will be implemented in two stages.

  • Stage one commenced on 28 June 2021 with Melbourne Health Logistics’ Tullamarine site serving as HSV’s warehouse hub. Operations are continuing as usual and initially HSV will supply Melbourne Health precinct partner health services before other health services are onboarded.
  • Stage two of HSV’s supply chain operations will involve HSV’s supply chain operations transferring to our new Derrimut DC. Suppliers will receive orders from HSV and health services for delivery to this new distribution hub.

HSV has worked closely with Melbourne Health Logistics to establish service level agreements with our first group of health service customers, which comprise:

  • Melbourne Health
  • Western Health
  • Northern Health
  • Peter MacCallum Cancer Centre
  • The Royal Children’s Hospital
  • The Royal Women’s Hospital
  • The Royal Victorian Eye and Ear Hospital

HSV’s operations – initially at the Tullamarine site and ultimately at the new Derrimut DC – will stock a key selection of medical consumable products. Over time HSV’s operations will add:

  • more stock items that had previously been ordered by Melbourne Health
  • high-volume, fast-moving bulk items
  • key State Supply Chain items
  • high-value, slow-moving stock items.

HSV will distribute these items directly to health services or via health service warehouse hubs.