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About HPVWho is HPV?
Health Purchasing Victoria is the Board consisting of appointments made on the recommendation by the Minister for Health. The Board is supported by a small Secretariat.
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How will HPV Work?
Health Purchasing Victoria works in collaboration and consultation with hospitals and suppliers to achieve best value for money arrangements for the purchase and supply of clinical and non-clinical goods and services.
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Who can use HPV contracts?
In short, the purchasing policy compels Victorian public hospitals and health services to use HPV contracts.
- public hospitals (as defined in Schedule 1 of the Health Services Act 1988)
- public health services (as defined in Schedules 3 and 5 of the Health Services Act 1988)
HPV in its sole discretion may grant the following organisations access to HPV contracts.
- public denominational hospitals (as defined in Schedule 2 of the Health Services Act 1988)
- public hospitals operated by the private sector (as defined in Schedule 4 of the Health Services Act 1988)
- health or related services (as defined in Sections 3(1) and 131(a) of the Health Services Act 1988) which may include publicly funded community health, pharmaceutical, ambulance, aged care, disability or palliative care services.
In general, HPV contracts should be used to promote and provide best value healthcare for the benefit of all Victorians.
It should be noted that the conditions and obligations for these groups may differ according to the terms of the contract.
For more general information, Manager Strategic Procurement .
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Can private hospitals use HPV contracts?
Private hospitals have no right of access to HPV contracts. This includes "not for profit" private hospitals.
However, there is nothing to prevent a supplier extending the same terms and conditions to private or denominational hospitals if it chooses to make that commercial decision.
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How does HPV select which goods will be purchased?
HPV establishes Product and Service Reference Groups to focus on specific ranges of products and or services. These groups will encompass clinical user and supply expertise, and relies on collaboration and consultation with hospitals to identify products and determine which product categories should be subject to contract.
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How does HPV communicate with Hospitals & Suppliers?
HPV uses a broad and open communication strategy to keep all interested parties informed of its activities and progress. This includes web page development, regular newsletters and email updates plus visits to hospitals and health services.
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How can Hospitals get involved?
HPV will hold regular meetings with Supply, pharmacy and clinical personnel from metropolitan and regional areas. We will seek nominations for participation in specific Product and Service Reference Groups.
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Can I still buy products from my current suppliers?
If there is no HPV contract in place for these particular goods or services, you can continue to purchase from your current supplier. We suggest you liaise with HPV when you are considering entering contractual arrangements with the supplier in the future.
Where there is a mandated HPV contract in place you will be required to purchase good or services in accordance with that contract. It should be noted that an exception process will be in place to ensure that where particular clinical or other circumstances apply, you will be able to purchase outside of a mandated contract.
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I work in a Supply Department. Is my job at risk?
Absolutely not. HPV has elected to facilitate the supply of goods and services by tendering for goods and services. Hospitals will still need to have a logistics service.
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What are the powers of HPV?
HPV values a cooperative and collaborative relationship with hospitals and health services and does not wish to invoke its reserve powers.
Notwithstanding, Section 132 of the Health Services Act 1988 states that (1) HPV has all the powers necessary to perform its functions. (2) Without limiting sub-section (1), HPV may: (a) enter into contracts or arrangements, including joint ventures, on its own behalf or on behalf of one or more health or related services; (b) call and award tenders and advertise; (c) give written directions to one or more public hospitals (i) relating to the purchase of goods and services by public hospitals and the management and disposal of goods by public hospitals; (ii) to ensure that probity is maintained in purchasing, tendering and contracting activities; (d) require the chief executive officer of a public hospital to audit compliance with purchasing policies and HPV directions and provide audit reports to HPV; (e) require the chief executive officer of a public hospital to provide HPV with information and data relating to the supply of goods and services and the management and disposal of goods; (f) employ staff, appoint agents and act as agent; (g) establish advisory committees to assist HPV in the performance of its functions; (h) exercise any other powers conferred on HPV by the [Health Services Act 1988] or any other Act.
In addition, Section 134 of the Health Services Act 1988 states that HPV might establish Purchasing Policies.
For more information please contact the Office Manager
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Do all hospitals have to use HPV Contracts?
HPV contracts can be for one or two hospitals, or for the entire public hospital system.
At present, all hospitals and health services are obliged to use HPV contracts unless an exemption has been granted pursuant to the Health Services Act 1988.
It should also be noted that exemptions, if granted, are specific, and although an exemption in one category may be granted the rest of the contract applies.
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Do denominational public hospitals or privately run public hospitals have to use HPV contracts?
No. HPV has no power to direct public denominational hospitals or privately run hospitals. However, these hospitals and other DHS funded health services such as community health services and the ambulance services may elect to use HPV contracts.
If in doubt as to the status of your organisation, please contact the Manager Strategic Procurement
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Supplier QuestionsI am a Supplier with a new product range. Can I use HPV to distribute this information?
Generally speaking, no. The use of the HPV mailing list is subject to strict policies and protocols to protect the privacy of subscribers.
HPV is not a marketing body nor a centralised evaluation service. It will rely on hospitals continuing to trial and evaluate products and services, and will encourage hospitals to enter their results onto a central Product Evaluation Database (currently under construction) so that results can be shared and compared. Notwithstanding, where it is relevant to the outcome of a tender, the Manager Clinical may request expressions of interest in participating in product evaluations from time to time.
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I'm a supplier. Why can't I see all the details of the contracts?
It remains HPV policy that access to the restricted portion of our website is restricted to bona fide staff members of Victorian public hospitals and health services.
HPV has a responsibility to observe the commercial privacy of contractors. Documents that contain commercially sensitive information may be exempt from disclosure under several provisions of the Freedom of Information Act 1982. The most commonly used are s. 34(1), which protects the trade secrets and business affairs of third parties, and s. 34(4), which protects the trade secrets and business affairs of the agency that received the request.
HPV disclosure arrangements are congruent with the practices of the Victorian Government Purchasing Board, and the Policy Statement "Ensuring Openness and Probity in Government Contracts"
Persons wishing to discuss this are invited to contact the Manager Strategic Procurement
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Probity: Suppliers and Product Trials
As part of my role in my hospital/health service, I routinely meet with suppliers to discuss and trial products or services. Some of these suppliers may tender for products that the PRG is currently reviewing. Is it reasonable for me to continue to meet with these suppliers while I am a PRG member?
Firstly, if it is part of your normal role to meet with suppliers then you should continue to do so while you are a member of the PRG.
However you should not discuss or volunteer PRG or HPV business.
HPV does not publish the names of PRG participants and the supplier should not be aware of your participation in the PRG.
Suppliers should not seek to learn the identity of individual PRG Members, and any attempt to influence PRG Members during a tender process will be considered a most serious breach.
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As part of my role, I undertake product trials. Is it acceptable for me to trial products while the tender process is in place?
It is recommended that a person nominated to a PRG delegate the responsibility for the trial of any products that may be included or considered on the tender until after completion of the tender evaluation process.
HPV continues to encourage hospitals to trial products, even where they may be subject to an HPV tender, as this can provide vital feedback during the tender evaluation process where a product or supplier is new to the market generally or to Victorian public hospitals.
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Probity: Sponsorships
I am a member of a professional association, and a supplier that might participate in the tender is going to sponsor our next meeting by providing us with lunch/a speaker/inservice education. Is it reasonable for me to attend the meeting?
As the benefit from the sponsor is for an Association rather than an individual, it is reasonable for an individual to attend.
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I am a member of a PRG and a supplier that might participate in the tender is providing inservice education to our hospital. Is this acceptable and can I attend/assist in organising the sessions?
Providing adequate product support is a legitimate part of any supplier’s role and is certainly an expectation of any successful HPV contractor.
It is undesirable to accept, organise or otherwise arrange prospective product inservices during a tender for that particular product range. All tender inservices should be deferred until after the product range has been awarded.
At other times, participation by your hospital and you as an individual in these sessions is encouraged, however we recommend that, wherever possible PRG Members (whilst they are participating in the PRG) delegate the organising of education sessions to another staff member to avoid the appearance of a conflict of interest. Where this is not practicable, the PRG Members should discuss this with HPV.
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I plan to attend a conference that is being sponsored by suppliers including some that may submit a tender for products that the PRG is currently reviewing. Is it reasonable for me to attend the conference?
As the benefit from the sponsor is for your Association rather than you as an individual, it is reasonable for you to attend.
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I am a member of a PRG and a potential tenderer has offered to sponsor me to attend a conference. Is it appropriate for me to accept this sponsorship?
It is not appropriate for an individual to accept sponsorship whilst participating in a PRG.
In this case, the benefit is for an individual and could be perceived as influencing the individual and potentially unfairly influencing the outcome of a tender.
All hospital staff, including sessional medical officers, should note the provisions of the Code of Conduct for the Victorian Public Sector.
Whilst enquiries regarding attendance by hospital staff who are not PRG participants should be addressed to the CEO (or his or her nominated representative) of their respective health service, the Code applies.
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I am on the organising committee for a conference and am seeking sponsorship from suppliers, some of whom may participate in the tender. Is this reasonable whilst I am a PRG member?
Provided the benefit from the sponsors is for your Association rather than you individually, it is reasonable for you to undertake this task.
It would not be ethical to use your Membership of a PRG to seek sponsorship from a supplier.
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Probity: Focus GroupsI am a member of a PRG and a supplier that might be involved in the tender has invited me and a range of key personnel from other hospitals to participate in a focus group to discuss product trends/practice trends. Is it acceptable for me to attend?
It is preferable that Members of PRGs do not participate in focus groups during their tenure.
Whilst an individual's selection for a focus group of this kind is likely to be because they are seen to have influence in a sphere of expertise, it could be perceived by HPV (and other suppliers, if they were to learn of such participation in the PRG and the focus group) that this supplier may have an unfair influence or might potentially receive or have the appearance of having a future advantage, an advantage.
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Confidentiality: With whom can I talk?I am a Member of a PRG. Can I discuss the tender with my colleagues?
Yes, you can. As a PRG member, you are representing the needs of the end users in hospitals and health services and one of the requirements of this role is to identify and communicate with key stakeholders within your hospital.
Care should be taken however with any ‘commercial in confidence’ information that is supplied during the meetings, and especially at Evaluation time. This is outlined more broadly in the PRG Terms of Reference and HPV Code of Conduct & Ethics for Advisory and Consultative Groups.
You should not discuss PRG business with personnel other than your hospital colleagues, and certainly not with suppliers.
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I'm a Member of a PRG. Can I discuss the evaluation process with my colleagues?
It may be reasonable to talk in generalities about how the process is undertaken but members of PRGs must not discuss the specifics, such as details of tender submissions or evaluation outcomes with anyone outside of HPV and the PRG.
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Can I tell suppliers and people outside of my organisation that I am a member of a Product Reference Group?
PRG membership is kept in confidence by HPV. It is important to remember that your participation is governed by the HPV Code of Conduct & Ethics for Advisory and Consultative Groups which incorporates a confidentiality clause.
In this context it is highly preferable that PRG membership remains confidential.
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Can I discuss the tender with suppliers that might be involved in the tendering process?
Your participation in a PRG must be kept in confidence therefore suppliers should be unaware of your membership.
You might speak with them in general terms about the tender process however great care must be taken to ensure that you neither reveal your membership of the PRG nor release any confidential information relating to the tender requirements or the tendering process.
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Probity: SuppliersI'm a supplier with a wealth of product knowledge and experience. Why can't I be a Member of a PRG?
HPV values product knowledge, expertise and experience, and acknowledges the presence of these qualities in supplier personnel.
However, there is an inherent and unmanageable conflict of interest if a supplier were to participate in a Product Reference Group.
Product Reference Groups do not represent constituencies.
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