A report tabled this week by the Auditor General, Des Pearson, shows that HPV is helping the state to gain “best value” from central procurement strategies.

Looking at the Department of Health, Health Purchasing Victoria (HPV) and four public hospitals, the audit examined whether procurement practices in the public health sector deliver best value, and are conducted with probity and transparency.

Three of the key findings of the report were that HPV:

• Is making significant savings
• Performs central procurement well and with integrity and transparency
• Has continuously expanded the range and scope of products centrally procured.

In addition it found that HPV has built strong and credible relationships with the public health sector and that, given the strength of these relationships and the significant return on investment to date, there is scope for the further expansion of HPV’s activities.

Already, the HPV Tender Program for 2011-12 includes a greater focus on medical equipment and a fourth “complex” prostheses tender. HPV is also leading the way in developing a common product catalogue for the state and in addition will continue to develop the recently instituted inaugural Procurement Professionals Program for the public health sector.

HPV Chief Executive, Megan Main said that: “HPV is currently in the process of developing a new five year (2012-2017) strategic plan and the findings of the report will guide our thinking as we plan how best to support the procurement needs of the Victorian health services into the future.”

More information about the VAGO report into Procurement Practices in the Health Sector is available here.