Procurement Practices in the Health Sector

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Tabled: 26 October 2011

Public hospitals spent more than $1.6 billion on goods and services in the last financial year. This procurement activity should demonstrate integrity, transparency and value-for-money. Health Purchasing Victoria (HPV) performs central procurement for the sector well, has expanded the range of products centrally procured and is making significant savings. However, 10 years after its establishment, HPV is yet to implement all its functions under the Health Services Act 1988 or exploit its full potential. By not undertaking its probity assurance function, and having only limited involvement in procuring medical equipment, HPV has missed opportunities for greater savings and better procurement practice. As system manager, the Department of Health should have done more to address these issues. There is also room for improvement in hospital procurement practices, with almost one in five of the hospital procurement processes reviewed in the audit having weaknesses in the transparency and appropriateness of decision-making.

 

 

 

 

 

 

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