Policy Compliance Framework

Compliance with Health Purchasing Victoria (HPV) policy and legislative requirements is important to maintaining the integrity of public hospital and health service procurement and to achieve best value supply chain outcomes for Victoria's health sector. 

Legislative Functions 

HPV has the following functions as per section 131 of the Health Services Act 1988 (the Act):

  • to monitor compliance by public hospitals with purchasing policies and HPV directions and to report irregularities to the Minister 
  • to ensure that probity is maintained in purchasing, tendering and contracting activities of public hospitals

Schedule 1 and 5 public hospitals and health services are required to comply with the Health Purchasing Policies (HPPs), together with other legislative and reporting obligations as set out in the Act. 

HPV Compliance Framework 

An overarching HPV Compliance Framework (the framework) has been implemented to assist health services in achieving compliance with these requirements. The current HPPs which were gazetted on 25 May 2017 are mandatory for Schedule 1 and 5 and underpin the framework. 

The framework is based on the principle that health services are in the first instance accountable for compliance and for maintaining probity in their purchasing, tendering and contracting activities. It’s multi-faceted approach comprises: compliance reporting and monitoring, education, support & prevention activities.

Non-Mandated Organisations

The compliance obligations of non-mandated organisations with access to HPV Collective Agreements are different to those of health services mandated under Schedule 1 and 5 of the Act. For more information, refer to Non-Mandated Compliance.