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This is a Bill, not an Act. For current law, see the Acts databases.
PARLIAMENT OF VICTORIA
Health Services (Health Purchasing Victoria) Act
2001
Act No.
TABLE OF PROVISIONS
Clause Page
1. Purpose 1
2. Commencement 2
3. Principal Act 2
4. Definitions 2
5. Objectives of Principal Act 3
6. Directions of Secretary 3
7. Powers of Minister 3
8. New Part 6 inserted 4
PART 6--HEALTH PURCHASING VICTORIA 4
Division 1--Establishment 4
129. Establishment of Health Purchasing Victoria 4
130. HPV represents the Crown 5
Division 2--General functions and powers 5
131. Functions of HPV 5
132. Powers of HPV 6
133. Factors to which HPV must have regard in performing
functions and exercising powers 8
Division 3--Purchasing Policies 8
134. Purchasing policies 8
134A. HPV may exempt public hospitals from policies 10
134B. Procedure for making and notification of purchasing
policies 10
134C. Disallowance of purchasing policies 11
Division 4--Membership and procedure 12
134D. Membership of HPV and terms of office 12
134E. Terms and conditions 13
134F. Removal and resignation 14
134G. Procedure of HPV 15
134H. Validity of HPV decisions 15
134I. Members' pecuniary interests 15
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Clause Page
134J. Improper use of information 16
134K. Delegation 16
Division 5--General 17
134L. Directions of the Minister or Secretary 17
134M. Strategic plans 17
134N. Existing supply contracts 18
ENDNOTES 19
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541164B.A1-4/5/2001 BILL LA AS SENT 4/5/2001
PARLIAMENT OF VICTORIA
Initiated in Assembly 4 April 2001
As amended by Assembly 3 May 2001
A BILL
to amend the Health Services Act 1988 in relation to the supply of
goods and services to health or related services, including public
hospitals, to establish Health Purchasing Victoria and for other
purposes.
Health Services (Health Purchasing
Victoria) Act 2001
The Parliament of Victoria enacts as follows:
1. Purpose
The purpose of this Act is to amend the Health
Services Act 1988 in relation to the supply of
goods and services to health or related services,
5 including public hospitals, and to establish Health
Purchasing Victoria.
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2. Commencement
This Act comes into operation on 1 July 2001.
3. Principal Act
See: In this Act, the Health Services Act 1988 is
Act No.
5 called the Principal Act.
49/1998
Reprint No. 6
as at
1 July 2000
and
amending
Act Nos
73/2000 and
1/2001.
LawToday:
www.dms.
dpc.vic.
gov.au
4. Definitions
In section 3(1) of the Principal Act, insert the
following definitions--
' "goods and services" includes facilities,
10 equipment and supplies;
"health or related service", in Part 6, means--
(a) a registered funded agency, multi
purpose service or health service
establishment; or
15 (b) any other person, body or organisation
that provides funds, facilitates access or
provides insurance in relation to health
services, being services that include,
but are not limited to--
20 (i) aged care services; or
(ii) palliative care services; or
(iii) disability services; or
(iv) pharmaceutical services; or
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(v) ambulance services;
"HPV" means Health Purchasing Victoria
established by section 129;
"HPV direction" means a direction given by
5 HPV under section 132(2)(c);
"purchasing policy" means a purchasing policy
made by HPV under section 134;'.
5. Objectives of Principal Act
In section 9 of the Principal Act, after
10 paragraph (c) insert--
"(ca) purchasing arrangements for public hospitals
and supply chain management by public
hospitals provide value for money; and".
6. Directions of Secretary
15 (1) In section 42(1) of the Principal Act, after
paragraph (fa) insert--
"(fb) a requirement that a public hospital appoint
HPV as its agent for the purposes of
obtaining or purchasing goods and services
20 and the conditions on which the appointment
is to be made;".
(2) After section 42(2) of the Principal Act insert--
"(2A) The Secretary must ensure that a direction
under sub-section (1)(fa) to a public hospital
25 is not inconsistent with an HPV direction or
a purchasing policy that applies to the public
hospital.".
7. Powers of Minister
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In section 58(1) of the Principal Act, after
paragraph (c) insert--
"(ca) in the case of a public hospital, has failed to
comply with an HPV direction or a
5 purchasing policy that applies to the
hospital; or".
8. New Part 6 inserted
After Part 5 of the Principal Act insert--
'PART 6--HEALTH PURCHASING VICTORIA
10 Division 1--Establishment
129. Establishment of Health Purchasing
Victoria
(1) Health Purchasing Victoria is established.
(2) HPV--
15 (a) is a body corporate with perpetual
succession;
(b) has a common seal;
(c) may sue and be sued in its corporate
name;
20 (d) may acquire, hold and dispose of real
and personal property;
(e) may do and suffer all things that a body
corporate may, by law, do and suffer.
(3) The common seal must be kept as directed
25 by HPV and must not be used except as
authorised by HPV.
(4) All courts must take judicial notice of the
common seal on a document and, until the
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contrary is proved, must presume that the
seal was properly affixed.
130. HPV represents the Crown
HPV is a public authority that represents the
5 Crown and holds its property on behalf of
the Crown.
Division 2--General functions and powers
131. Functions of HPV
HPV has the following functions--
10 (a) to supply or facilitate access to the
supply of goods and services to public
hospitals and other health or related
services on best value terms;
(b) in relation to the supply of goods and
15 services to public hospitals and the
management and disposal of goods by
public hospitals--
(i) to develop, implement and review
policies and practices to promote
20 best value and probity; and
(ii) to provide advice, staff training
and consultancy services;
(c) to provide advice, staff training and
consultancy services in relation to the
25 supply of goods and services to, and the
management and disposal of goods by,
health or related services other than
public hospitals;
(d) to monitor compliance by public
30 hospitals with purchasing policies and
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HPV directions and to report
irregularities to the Minister;
(e) to foster improvements in the use and
application of purchasing systems and
5 trading by electronic transactions by
health or related services;
(f) to establish and maintain a database of
purchasing data of public hospitals and
supply markets for access by public
10 hospitals;
(g) to ensure that probity is maintained in
purchasing, tendering and contracting
activities in public hospitals;
(h) any other functions conferred on HPV
15 by this or any other Act.
132. Powers of HPV
(1) HPV has all the powers necessary to perform
its functions.
(2) Without limiting sub-section (1), HPV
20 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;
25 (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
30 and the management and disposal
of goods by public hospitals;
(ii) to ensure that probity is
maintained in purchasing,
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tendering and contracting
activities;
(d) require the chief executive officer of a
public hospital to audit compliance
5 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
10 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;
15 (g) establish advisory committees to assist
HPV in the performance of its
functions;
(h) exercise any other powers conferred on
HPV by this or any other Act.
20 (3) A public hospital must comply with an HPV
direction that applies to it, except to the
extent that the direction is inconsistent with
the terms of any contract that was entered
into by the public hospital before the
25 direction was given to the hospital by HPV.
(4) The chief executive officer of a public
hospital must provide to HPV on request
within 28 days or any longer period specified
in the request--
30 (a) audit reports referred to in sub-section
(2)(d);
(b) information and data referred to in sub-
section (2)(e).
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133. Factors to which HPV must have regard in
performing functions and exercising
powers
In performing functions and exercising
5 powers under this Act, HPV must have
regard to each of the following matters--
(a) the clinical needs of patients and other
users of health or related services;
(b) the ability of suppliers to supply goods
10 and services required by health or
related services;
(c) the price, quality and accessibility of
goods and services supplied or
proposed to be supplied to health or
15 related services;
(d) the individual conditions and
requirements of health or related
services;
(e) the effect of tendering and contracting
20 processes on the viability of small and
medium-sized businesses;
(f) local employment growth or retention.
Division 3--Purchasing Policies
134. Purchasing policies
25 (1) HPV may prepare, make, amend and revoke
instruments, to be known as "purchasing
policies", with respect to policies and
practices (including probity) relating to the
supply of goods and services to public
30 hospitals and the management and disposal
of goods by public hospitals.
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(2) A purchasing policy--
(a) may be of general or limited
application;
(b) may differ according to differences in
5 time, place or circumstance;
(c) may confer a discretionary authority or
impose a duty on a specified person or
class of persons;
(d) may leave anything to be approved by
10 or to the satisfaction of a specified
person or class of persons;
(e) may apply, adopt or incorporate any
matter contained in any document,
code, standard, rule, specification or
15 method formulated, issued, prescribed
or published by any person whether--
(i) wholly or partially or as amended
by the policy; or
(ii) as formulated, issued, prescribed
20 or published at the time the policy
is made or at any time before then;
or
(iii) as formulated, issued, prescribed
or published from time to time;
25 (f) may provide in a specified case or class
of cases for the exemption of public
hospitals or classes of public hospitals
from any of the provisions of the
policy, whether unconditionally or on
30 specified conditions and either wholly
or to such an extent as is specified.
(3) A public hospital must comply with each
purchasing policy to the extent that it applies
to the public hospital.
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134A. HPV may exempt public hospitals from
policies
HPV may, by notice published in the
Government Gazette, exempt a public
5 hospital or a class of public hospital from
complying with a purchasing policy.
134B. Procedure for making and notification of
purchasing policies
(1) HPV must give written notice of its intention
10 to make, amend or revoke a purchasing
policy to--
(a) each public hospital that will be
affected by the making, amendment or
revocation; and
15 (b) any other person that HPV considers
will be affected by the making,
amendment or revocation.
(2) HPV may give the notice referred to in sub-
section (1) by publishing it in a newspaper
20 generally circulating in Victoria or in any
other manner that HPV considers is likely to
bring the notice to the attention of the
relevant person.
(3) The notice must--
25 (a) contain a copy of the proposed policy
or amendment (or in the case of a
proposed revocation, the policy
proposed to be revoked) or specify
where a copy can be obtained; and
30 (b) invite comments or submissions within
the time (being not less than 14 days
after the giving or publication of the
notice) specified in the notice.
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(4) In making, amending or revoking a policy,
HPV must take into account any comments
or submissions made within the time
specified in the notice.
5 (5) HPV must cause notice of the making,
amendment or revocation of a policy to be
forwarded to the Minister and published in
the Government Gazette.
(6) HPV must include in its report of operations
10 for a financial year under Part 7 of the
Financial Management Act 1994--
(a) details of the making, amendment or
revocation of any purchasing policies
during the financial year; and
15 (b) a list of all purchasing policies in force
at any time during the financial year;
and
(c) details of any purchasing policy or part
of a purchasing policy disallowed by
20 the Minister during the financial year.
134C. Disallowance of purchasing policies
(1) The Minister may at any time, by notice in
writing given to HPV and published in the
Government Gazette, disallow a purchasing
25 policy or part of a purchasing policy.
(2) The disallowance takes effect on the
publication of the notice.
(3) Subject to sub-section (4), if a purchasing
policy or part of a purchasing policy is
30 disallowed, the disallowance has the same
effect as a revocation of the purchasing
policy or part.
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(4) If a purchasing policy or part of a purchasing
policy is disallowed--
(a) any purchasing policy or part that had
been revoked by the disallowed
5 purchasing policy or part is revived as
from the beginning of the day on which
the purchasing policy or part was
disallowed; and
(b) any purchasing policy or part that had
10 been amended by the disallowed
purchasing policy or part takes effect
without that amendment as from the
beginning of the day on which the
purchasing policy or part was
15 disallowed in all respects as if the
disallowed purchasing policy or part
had not been made.
Division 4--Membership and procedure
134D. Membership of HPV and terms of office
20 (1) HPV consists of the following members
appointed by the Governor in Council on the
recommendation of the Minister--
(a) a chairperson who, in the Minister's
opinion, has expertise in the health care
25 industry;
(b) 3 people each of whom is employed by
a metropolitan health service and one of
whom is a chief executive officer of a
metropolitan health service;
30 (c) 2 people each of whom is employed by
a hospital listed in Schedule 1 and one
of whom is a chief executive officer of
a hospital listed in Schedule 1;
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(d) 1 person employed in the Department
nominated by the Secretary;
(e) 1 person employed in the Department
of Treasury and Finance nominated by
5 the Secretary to that Department;
(f) up to 2 people (if any) who, in the
Minister's opinion, have expertise
relevant to the functions of HPV.
(2) The Public Sector Management and
10 Employment Act 1998 does not apply to a
member in respect of the office of member.
134E. Terms and conditions
(1) A member of HPV holds office for the term,
not exceeding 3 years, specified in the
15 instrument of appointment and is eligible for
re-appointment.
(2) A member of HPV is entitled to be paid--
(a) reasonable expenses incurred in
holding office as member; and
20 (b) such remuneration as is specified in the
instrument of appointment.
(3) Sub-section (2)(b) does not apply to a
member who is--
(a) employed by a metropolitan health
25 service or a hospital listed in
Schedule 1; or
(b) an employee in the public service
within the meaning of the Public
Sector Management and
30 Employment Act 1998.
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134F. Removal and resignation
(1) A member of HPV may resign by writing
signed by that person and delivered to the
Governor in Council.
5 (2) If a member referred to in section
134D(1)(b) or (c) ceases to be employed by a
metropolitan health service or a hospital
listed in Schedule 1 (as the case may be) or a
member referred to in section 134D(1)(d) or
10 (e) ceases to be employed by the relevant
Department, the office of the member
becomes vacant on the day that is 3 months
after the day on which the member ceased to
be so employed.
15 (3) The Governor in Council, on the
recommendation of the Minister, may
remove a member, or all members, from
office.
(4) The Minister must recommend the removal
20 of a member if the Minister is satisfied that
the member--
(a) is physically or mentally unable to
fulfil the role of member; or
(b) has been convicted or found guilty of
25 an offence, the commission of which, in
the Minister's opinion, makes the
person unsuitable to be a member; or
(c) has been absent, without leave of HPV,
from all meetings of HPV held during a
30 period of 6 months; or
(d) is an insolvent under administration
within the meaning of the Corporations
Law.
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134G. Procedure of HPV
(1) The chairperson of HPV, or in his or her
absence a member elected by the members
present, must preside at a meeting of HPV.
5 (2) A majority of members of HPV for the time
being constitutes a quorum of HPV.
(3) The person presiding at a meeting of HPV
has a deliberative vote and, if voting is equal,
a second or casting vote.
10 (4) Except as otherwise provided in this
Division, the procedure of HPV is in the
discretion of HPV.
134H. Validity of HPV decisions
An act or decision of HPV is not invalid by
15 reason only of--
(a) a defect or irregularity in or in
connection with the appointment of a
member of HPV; or
(b) a vacancy in the membership of HPV.
20 134I. Members' pecuniary interests
(1) A member of HPV who has a direct or
indirect pecuniary interest in a matter being
considered or about to be considered by
HPV must, as soon as practicable after the
25 relevant facts have come to his or her
knowledge, declare the nature of the interest
at a meeting of HPV.
Penalty: 5 penalty units.
(2) The person presiding at the meeting must
30 cause the declaration to be recorded in the
minutes of the meeting.
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(3) A member who has a conflict of interest in a
matter--
(a) must not be present during any
deliberations on the matter; and
5 (b) is not entitled to vote on the matter.
(4) If a member votes on a matter in
contravention of sub-section (3)(b), his or
her vote must be disallowed.
(5) For the purposes of this section, a member is
10 not to be regarded as having a pecuniary
interest in a contract or arrangement only
because that contract or arrangement may
benefit--
(a) a public hospital in which the member
15 is employed; or
(b) a company or other body in which the
member has a beneficial interest that
does not exceed 1% of the total
nominal value of beneficial interests in
20 that company or body.
134J. Improper use of information
A person who is, or has been, a member of
HPV must not make improper use of any
information acquired in the course of his or
25 her duties to obtain directly or indirectly any
pecuniary or other advantage for himself or
herself or for any other person.
Penalty: 5 penalty units.
134K. Delegation
30 HPV may, by instrument, delegate to a
member or an employee of HPV any of its
powers except--
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(a) the power to make, amend or revoke
purchasing policies under section 134;
(b) this power of delegation.
Division 5--General
5 134L. Directions of the Minister or Secretary
(1) The Minister may give directions in writing
to HPV in relation to any of its functions or
powers.
(2) Without limiting the subject-matter of
10 directions under sub-section (1), directions
may be given setting limits or controls on
expenditure, borrowing and entering into
contracts and joint ventures.
(3) The Secretary may give directions in writing
15 to HPV regarding the terms and conditions
on which HPV may employ staff.
(4) A copy of each direction must be included in
HPV's report of operations for a financial
year under Part 7 of the Financial
20 Management Act 1994.
(5) HPV must comply with each direction of the
Minister or Secretary.
134M. Strategic plans
(1) HPV must, at the direction of the Minister
25 and at the time or times determined by the
Minister, prepare and submit to the Minister
for approval a strategic plan for HPV's
operations.
(2) A strategic plan must be prepared in
30 accordance with the guidelines established
by the Minister from time to time.
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(3) The Minister may--
(a) approve a strategic plan; or
(b) approve a strategic plan with
amendments; or
5 (c) refuse to approve a strategic plan.
(4) HPV must advise the Minister if it wishes to
perform its functions in a manner
inconsistent with its approved strategic plan.
134N. Existing supply contracts
10 (1) A public hospital is not required to comply
with an HPV direction or a purchasing
policy to the extent that the direction or
policy is inconsistent with the terms of any
contract relating to the supply of goods or
15 services to the public hospital entered into
before 1 July 2001 and in force on that day.
(2) However, a public hospital must not agree to
a variation or novation of, or exercise an
option to extend or renew, a contract referred
20 to in sub-section (1) on or after 1 July 2001
without the written consent of HPV.'.
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Endnotes
Act No.
ENDNOTES
By Authority. Government Printer for the State of Victoria.
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