HPV Policies

Health Purchasing Victoria’s five Health Purchasing Policies (HPPs) and the CPU Purchasing Policy support the sector to derive the maximum impact and value from its procurement decisions. Compliance with these policies benefit patients, procurement officers and the health sector in general:

  • Economic benefits: Strategic planning promotes best-value procurement and leads to reduced waste and fewer administration costs.
  • Meet probity requirements: The policies are designed in line with the Victorian Auditor-General’s Office (VAGO) and the Ombudsman Guidelines to help health services achieve probity standards across the board.
  • Tailored support from HPV: HPV policies come with clear guidelines and resources to help health services implement the policies and match their procurement process to business needs.


About the Policies

HPV Health Purchasing Policies

HPV has a legislated power under subsection 134(1) of the Health Services Act 1988 (Vic) to make, amend and revoke purchasing policies relating to the supply of goods and services to Victorian health services. These policies may also cover the management and disposal of goods.

This power supports HPV’s function under the Act to develop, implement and review policies and practices to promote best value and probity. The five HPV Health Purchasing Policies (HPPs) were introduced in 2014 to meet this function.

The HPPs guide health services on best-practice procurement, offering a principles based approach to implementing probity strategy in to internal procurement practices.

Compliance is mandatory for all public hospitals and health services listed in Schedule 1 and 5 of the Act. These health services are commonly referred to as mandated health services.

Non-mandated health services (or ‘eligible services’) are also required to comply with the terms of the agreements to which they have been granted access, including all requirements of Health Purchasing Policy 5: Collective Purchasing. 

The CPU Purchasing Policy

The CPU Purchasing Policy, initiated by the Department of Health and Human Services (DHHS) and administered by HPV, requires each of the health services named in the policy to purchase its pre-prepared patient food from one of two Central Production Units (CPUs) at Austin Health and Monash Health.


More resources

Our team is here to help you understand and comply with policy. Access our guidelines, tools and templates to help you understand and meet HPP requirements.