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Irish Law

Health Sector Procurement: HSE Rules and National Frameworks

The HSE operates its own procurement governance overlaid on national EU rules. This article explains the HSE-specific frameworks, approval thresholds and capital works governance that apply to health sector procurement in Ireland.

12 November 2024·9 min read·GovIQ Research

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HSE procurementhealth sectorcapital worksnational frameworks

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HSE Procurement Governance Structure

The Health Service Executive has a centralised National Procurement Services (NPS) function responsible for the development and management of health-sector procurement frameworks, tendering policy and supplier management. NPS operates national contracts and framework agreements for the full range of healthcare products and services including medical devices, pharmaceuticals, catering, estates maintenance, ICT and professional services. Services that are within national HSE frameworks must be procured through those frameworks by all HSE facilities — individual facilities may not tender separately for commodities covered by a national arrangement.

HSE procurement is governed by the HSE Procurement Policy, which is aligned with OGP national procurement policy and EU Directive requirements. The Policy sets HSE-specific thresholds, defines approval levels (including which purchases require Regional, National Directorate or Department of Health approval), and specifies documentation requirements for all above-threshold procurements. HSE procurement officers are required to be trained on the policy and must complete annual procurement compliance declarations.

Capital Works: HSE Approval Thresholds

Capital works in the health sector are subject to the HSE Capital Approval Framework, which overlays HSE-specific financial thresholds on the national CWMF gate process. The framework defines three categories of project by value: Minor Works (typically below €0.5 million), Major Works (above €0.5 million) and Significant Capital Projects (above a threshold that triggers Department of Health and Government approval). The exact thresholds are updated periodically and the current values should be confirmed in the HSE Capital and Property Unit guidance documents.

For each project category, the approval authority is defined: minor works projects can be approved at Area or Community Healthcare Organisation level; major works require HSE National Directorate sanction; and significant capital projects require Department of Health approval, with the largest projects requiring Government decision. Each gate in the CWMF process (SAR, PBC, DBC) requires approval at the appropriate level before proceeding, and the approval record must be maintained in the project file.

Health Technology Assessment and Procurement

Healthcare procurement in Ireland, particularly for medical technologies, pharmaceuticals and devices, is increasingly influenced by health technology assessment (HTA). The Health Information and Quality Authority (HIQA) conducts HTA for interventions and technologies that have a significant impact on the health service or on public health, and its assessments are factored into HSE procurement and reimbursement decisions. For above-threshold medical technology procurements, HIQA may be a key stakeholder whose assessment should inform the specification.

The National Centre for Pharmacoeconomics (NCPE) conducts pharmacoeconomic assessments that inform HSE formulary and procurement decisions for pharmaceuticals. Understanding the NCPE's assessment findings is important context for procurement of pharmaceutical products or related services. Procurement officers in the health sector should be aware of the relevant HTA and pharmacoeconomic landscape for their category and should ensure that procurement specifications reflect current evidence-based requirements.

Estates and Facilities Management Procurement

Estates and facilities management (FM) procurement in the HSE is one of the largest spend categories by value. The HSE Estates and Property division manages a significant national property portfolio including acute hospitals, primary care centres, community health buildings and specialist facilities. FM procurement covers maintenance, cleaning, energy management, security, catering and a wide range of support services.

HSE Estates operates national FM framework agreements that all facilities are required to use for in-scope services. The frameworks include provisions for call-off by region and by service type. Facilities that require services outside the scope of a national framework must follow OGP and HSE procurement policy requirements including, for above-threshold requirements, publication on eTenders and a compliant tender process. GovIQ's procurement router can assist HSE facilities in determining whether a requirement is within scope of a national framework or requires separate tender, and can generate the appropriate procurement documentation for either path.

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