{"id":58854,"date":"2026-02-05T02:18:00","date_gmt":"2026-02-05T02:18:00","guid":{"rendered":"https:\/\/www.cos.net.au\/c\/?p=58854"},"modified":"2026-07-08T04:45:37","modified_gmt":"2026-07-08T04:45:37","slug":"healthcare-procurement-requirements","status":"publish","type":"post","link":"https:\/\/www.cos.net.au\/c\/buyer-guides\/healthcare-procurement-requirements","title":{"rendered":"How Do Suppliers Support Compliance and Procurement Requirements in Healthcare?"},"content":{"rendered":"\t\t
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Suppliers support compliance and procurement requirements in healthcare by providing documented product compliance for NSQHS accreditation, supplying products that meet all applicable quality, safety, and regulatory requirements under NSW Health PD2024_044 and equivalent state directives, maintaining consistent delivery to prevent compliance gaps, providing Safety Data Sheets and TGA-registered product documentation for audit purposes, and demonstrating ethical sourcing credentials under the Modern Slavery Act 2018. A supplier that cannot meet these requirements does not just create procurement risk. It creates clinical and regulatory risk for the healthcare organisation that engages it.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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When healthcare procurement teams evaluate non-clinical suppliers, compliance support is often treated as a secondary consideration. Price, range, and delivery tend to dominate the conversation. Yet for Australian hospitals and healthcare organisations, the compliance implications of supplier selection are substantial and in some cases legally mandatory.<\/p>

NSW Health’s Policy Directive PD2024_044, issued in December 2024 and mandatory for all NSW Health entities, states that goods and services must meet all applicable quality, safety, security, and regulatory requirements. The Australian Commission on Safety and Quality in Health Care requires all hospitals and day procedure services to be accredited against the eight NSQHS Standards, with Standard 3 (Preventing and Controlling Infections) directly addressing the procurement of hand hygiene products, cleaning agents, and PPE. And the Modern Slavery Act 2018 (Cth) requires entities with annual consolidated revenue of at least $100 million to report on modern slavery risks in their supply chains, with the government agreeing in December 2024 to strengthen due diligence requirements further.<\/p>

The question of how suppliers support compliance and procurement requirements is therefore not a soft evaluation criterion. It is a structured set of obligations with direct consequences for accreditation, audit readiness, and legal compliance. This article sets out what those obligations are and what a supplier must be able to demonstrate to genuinely support them.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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NSW Health's mandatory December 2024 procurement policy: goods and services must meet all applicable quality, safety, security, and regulatory requirements<\/div>\t\t\t
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All hospitals and day procedure services in Australia must be accredited against the 8 NSQHS Standards, with Standard 3 covering procurement of hand hygiene products, cleaning agents, and PPE<\/div>\t\t\t
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annual consolidated revenue threshold above which entities must comply with Modern Slavery Act 2018 reporting requirements; government agreed in December 2024 to strengthen due diligence obligations<\/div>\t\t\t
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The Compliance Framework Australian Healthcare Organisations Operate Within<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Before examining what suppliers must do, it helps to understand the compliance framework that Australian healthcare procurement teams are required to operate within. There are four primary layers.<\/p>

NSQHS Standards: Mandatory Accreditation for All Hospitals<\/h3>

The National Safety and Quality Health Service (NSQHS) Standards, published by the Australian Commission on Safety and Quality in Health Care (ACSQHC), are the mandatory accreditation framework for all public and private hospitals and day procedure services in Australia. All eight standards must be met for accreditation. Accreditation assessments are conducted by approved agencies, typically on a three-year cycle.<\/p>

Standard 3, Preventing and Controlling Infections, directly affects procurement. It requires healthcare organisations to have systems in place for the appropriate procurement and use of hand hygiene products, cleaning agents, and PPE. Action 3.05 specifically requires healthcare services to have a hand hygiene process consistent with the National Hand Hygiene Initiative. The products used to meet these requirements must be appropriate, which means procurement teams are responsible for ensuring their supplier can source and document compliant products.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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NSQHS Standard 3 (ACSQHC): <\/strong>Action 3.05 requires the healthcare service to have a hand hygiene process incorporated in its overarching infection prevention and control program, consistent with the appropriate elements of the National Hand Hygiene Initiative. Healthcare facilities and the associated environment must be clean and hygienic. Suppliers of hand hygiene and cleaning products must be able to demonstrate their products meet these requirements on request.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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NSW Health PD2024_044: Mandatory Quality and Safety Requirements for All Procurement<\/h3>

NSW Health’s Policy Directive PD2024_044, issued in December 2024, is mandatory for all NSW Health entities including Local Health Districts, Specialty Health Networks, and Public Hospitals. It states that compliance with the directive is a condition of subsidy for public health organisations.<\/p>

For supplier evaluation, the key requirement is direct: goods and services must meet all applicable quality, safety, security, and regulatory requirements, and rates must be reasonable and consistent with normal market rates. NSW Health entities must also consider whole-of-lifecycle asset management requirements, costs, and benefits when assessing value for money. A supplier that cannot document that its products meet applicable regulatory requirements fails a mandatory criterion of NSW Health procurement policy.<\/p>

Modern Slavery Act 2018 (Cth): Supply Chain Compliance Obligations<\/h3>

The Modern Slavery Act 2018 (Cth), administered by the Attorney-General’s Department, requires Australian entities with annual consolidated revenue of at least $100 million to prepare an annual Modern Slavery Statement. This statement must set out the reporting entity’s actions to assess and address modern slavery risks in their operations and supply chains.<\/p>

For healthcare organisations meeting this threshold, supplier selection is part of supply chain due diligence. The government’s December 2024 response to the statutory review of the Act agreed to strengthen due diligence requirements and the administration of the Act. A supplier that cannot provide documented ethical sourcing practices creates a gap in the procuring organisation’s supply chain compliance.<\/p>

Commonwealth Procurement Rules: Performance History and Ethical Conduct<\/h3>

The Commonwealth Procurement Rules, published by the Department of Finance at finance.gov.au, require procurement officials to consider a potential supplier’s relevant experience, performance history, and ethical conduct as part of every value-for-money assessment. This includes consideration of any unethical behaviour or deficiencies in performance under prior contracts. Officials must factor these matters into the evaluation of tenderers and must monitor supplier ethical behaviour throughout the term of the contract.<\/p>

For state-funded healthcare organisations, equivalent obligations apply under state procurement frameworks. The principle that supplier performance history and ethical conduct are mandatory evaluation criteria, not optional considerations, applies across all government-funded healthcare procurement.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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What Suppliers Must Be Able to Demonstrate<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Given this compliance framework, a non-clinical supplier for an Australian healthcare organisation must be able to demonstrate compliance support across five specific areas.<\/p>

1. Product Compliance Documentation for NSQHS Accreditation<\/h3>

For hand hygiene, cleaning, and infection control product categories, a compliant supplier must be able to provide Safety Data Sheets (SDS) for all relevant products, compliance documentation confirming products meet the specifications required under NSQHS Standard 3, TGA registration documentation where applicable for infection control products, and proactive notification of any changes to product formulation, certification, or regulatory status that may affect compliance.<\/p>

This documentation must be available on request during an accreditation assessment, not just on initial supplier setup. A supplier that holds documentation but cannot produce it promptly during an audit creates the same compliance risk as a supplier that holds no documentation at all.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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COS: <\/strong>COS provides product compliance documentation including Safety Data Sheets and product specifications for infection control, hand hygiene, and cleaning product categories. Your dedicated COS account manager can coordinate documentation requests for accreditation purposes and flag product changes affecting compliance.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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2. Consistent Supply to Prevent Compliance Gaps<\/h3>

Compliance with NSQHS Standard 3 is not a point-in-time requirement. It must be maintained continuously. A supplier that cannot deliver hand hygiene products, cleaning agents, or PPE consistently creates compliance gaps that accreditation assessors will identify.<\/p>

This means delivery reliability is itself a compliance support function. A supplier that performs well in ordinary circumstances but struggles with out-of-stock situations, regional deliveries, or demand spikes fails a critical compliance test precisely when compliance is most at risk.<\/p>

A supplier supporting healthcare compliance should have:<\/p>

  • Standing order capability so critical consumables are replenished automatically before stock runs out<\/li>
  • A documented process for sourcing compliant substitutes when specific products are unavailable<\/li>
  • Proactive communication when a product change could affect the compliance status of an item in use<\/li>
  • Proven delivery reliability to all sites in the organisation’s network, not just metropolitan locations<\/li><\/ul>

    3. Meeting the Quality and Safety Requirements of NSW Health PD2024_044<\/h3>

    NSW Health PD2024_044 requires that all goods and services procured by NSW Health entities meet applicable quality, safety, security, and regulatory requirements. For non-clinical supply categories, this means a supplier must be able to demonstrate that the products it supplies are fit for purpose in a healthcare setting, meet any applicable Australian standards, and are sourced through supply chains that support, rather than undermine, the procuring organisation’s regulatory obligations.<\/p>

    In practical terms, this means procurement teams should ask suppliers directly: Can you confirm all products in our approved product list meet applicable quality and safety standards? Can you provide that confirmation in writing? And can you notify us when that status changes for any product?<\/p>

    4. Modern Slavery Act Supply Chain Compliance<\/h3>

    For healthcare organisations with annual consolidated revenue of $100 million or more, the Modern Slavery Act 2018 (Cth) requires an annual statement setting out how modern slavery risks in operations and supply chains are being assessed and addressed. The government’s December 2024 response to the statutory review of the Act agreed to strengthen due diligence requirements, signalling that supply chain scrutiny will increase rather than decrease.<\/p>

    Suppliers supporting this compliance obligation must be able to provide a published ethical sourcing or responsible procurement policy, a Modern Slavery Act statement if they are a reporting entity, or documented supply chain risk assessment if they are not, evidence of how they identify and address modern slavery risk in their own supply chains, and a Reconciliation Action Plan or equivalent commitment to Indigenous procurement where applicable.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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    COS: <\/strong>COS publishes an ethical sourcing policy and a Reconciliation Action Plan, and carries a range of eco-certified products. These credentials support Australian healthcare organisations’ Modern Slavery Act compliance obligations and ethical procurement requirements under NSW Health PD2024_044 and equivalent state frameworks.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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    5. Contracted Pricing That Supports Value-for-Money Compliance<\/h3>

    NSW Health PD2024_044 requires that rates must be reasonable and consistent with normal market rates. This means contracted pricing with a non-clinical supplier is not just a commercial arrangement. It is a compliance requirement under the policy directive.<\/p>

    A supplier supporting this requirement must provide transparent, contracted pricing that applies automatically through the ordering portal, demonstrate that rates are consistent with normal market rates for the categories supplied, provide clear documentation of pricing for audit and review purposes, and notify the organisation of any price changes through a formal and documented process rather than unilaterally adjusting catalogue pricing.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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    A Practical Compliance Support Checklist for Supplier Evaluation<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    Use this checklist when assessing whether a non-clinical supplier can genuinely support your healthcare organisation’s compliance obligations:<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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    Product compliance documentation
    <\/strong>Can the supplier provide Safety Data Sheets, compliance certificates, and TGA registration documents for all infection control, hand hygiene, and cleaning products? Can they be produced promptly during an accreditation assessment?<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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    Consistent supply capability
    <\/strong>Does the supplier have standing order capability for critical consumables? Do they have a documented process for compliant substitutes when products are unavailable? Do they proactively notify of product changes?<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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    Quality and safety standards
    <\/strong>Can the supplier confirm in writing that all products in the approved product list meet applicable quality, safety, security, and regulatory requirements as required by NSW Health PD2024_044?<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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    Ethical sourcing documentation
    <\/strong>Does the supplier publish an ethical sourcing policy? Do they have a Modern Slavery Act statement or equivalent supply chain risk documentation? Do they have a Reconciliation Action Plan?<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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    Performance history and conduct
    <\/strong>Can the supplier provide references from current healthcare customers? Is there a documented track record of performance, issue resolution, and contract delivery from comparable healthcare accounts?<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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    Frequently Asked Questions<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    What compliance obligations must a non-clinical supplier support for an Australian hospital? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
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    At minimum, a non-clinical supplier for an Australian hospital must support NSQHS Standard 3 compliance by providing documented product compliance for hand hygiene, cleaning, and PPE categories. They must also meet the quality and safety requirements of NSW Health PD2024_044 or the relevant state procurement directive, support Modern Slavery Act compliance for organisations meeting the reporting threshold, and demonstrate ethical conduct and performance history consistent with Commonwealth Procurement Rules requirements.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t

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    What is the NSQHS Standard 3 requirement for procurement? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
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    NSQHS Standard 3, Preventing and Controlling Infections, requires healthcare organisations to have systems in place for the appropriate procurement and use of hand hygiene products, cleaning agents, and PPE. Action 3.05 requires healthcare services to have a hand hygiene process consistent with the National Hand Hygiene Initiative. Suppliers of these product categories must be able to provide compliance documentation confirming their products meet the required specifications, and must notify the organisation of any changes that could affect compliance.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t

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    What does NSW Health PD2024_044 require from suppliers? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
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    NSW Health’s Policy Directive PD2024_044, issued December 2024 and mandatory for all NSW Health entities, requires that goods and services must meet all applicable quality, safety, security, and regulatory requirements, and that rates must be reasonable and consistent with normal market rates. Compliance with this directive is a condition of subsidy for public health organisations. A supplier that cannot confirm in writing that its products meet applicable regulatory requirements does not satisfy a mandatory criterion of NSW Health procurement policy.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t

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    Does the Modern Slavery Act apply to healthcare organisations? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
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    Yes, for any healthcare organisation with annual consolidated revenue of at least $100 million. The Modern Slavery Act 2018 (Cth), administered by the Attorney-General’s Department, requires these entities to prepare an annual Modern Slavery Statement setting out how modern slavery risks in their operations and supply chains are being assessed and addressed. The government’s December 2024 response to the statutory review of the Act agreed to strengthen due diligence requirements, meaning supply chain compliance scrutiny is expected to increase.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t

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    How should procurement teams document supplier compliance support during accreditation reviews? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
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    Keep a supplier compliance file for each major non-clinical supplier that includes current Safety Data Sheets for all relevant products, compliance certificates for NSQHS-critical product categories, the supplier’s ethical sourcing policy and Modern Slavery Act statement, contracted pricing documentation, and delivery performance records. This file should be maintained actively rather than assembled at the point of accreditation assessment. Your supplier should be able to update it proactively when product or certification changes occur.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t

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    Can COS support compliance requirements for a healthcare organisation? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
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    COS supplies healthcare organisations across Australia with 40,000+ products across all major non-clinical categories. Every COS healthcare account includes a dedicated account manager with healthcare supply experience, product compliance documentation support for NSQHS accreditation, contracted pricing meeting PD2024_044 requirements, a published ethical sourcing policy and Reconciliation Action Plan for Modern Slavery Act compliance support, and consistent national delivery to prevent supply gaps that create compliance risk.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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    \n\t\t\t\t\tA supplier that actively supports your compliance obligations.<\/span>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    COS provides product compliance documentation, ethical sourcing credentials, contracted pricing, and dedicated account management to support NSQHS accreditation, PD2024_044 compliance, and Modern Slavery Act obligations across all non-clinical supply categories.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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    Set up your COS healthcare account today:<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    \n\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\tGet Started<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

    For Australian hospitals and healthcare organisations, procurement requirements in supplier selection carry substantial compliance implications.<\/p>\n","protected":false},"author":13,"featured_media":58880,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3560],"tags":[3582,3575],"class_list":["post-58854","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buyer-guides","tag-healthcare-supplier","tag-procurement"],"_links":{"self":[{"href":"https:\/\/www.cos.net.au\/c\/wp-json\/wp\/v2\/posts\/58854","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cos.net.au\/c\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cos.net.au\/c\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cos.net.au\/c\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cos.net.au\/c\/wp-json\/wp\/v2\/comments?post=58854"}],"version-history":[{"count":5,"href":"https:\/\/www.cos.net.au\/c\/wp-json\/wp\/v2\/posts\/58854\/revisions"}],"predecessor-version":[{"id":58881,"href":"https:\/\/www.cos.net.au\/c\/wp-json\/wp\/v2\/posts\/58854\/revisions\/58881"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.cos.net.au\/c\/wp-json\/wp\/v2\/media\/58880"}],"wp:attachment":[{"href":"https:\/\/www.cos.net.au\/c\/wp-json\/wp\/v2\/media?parent=58854"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cos.net.au\/c\/wp-json\/wp\/v2\/categories?post=58854"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cos.net.au\/c\/wp-json\/wp\/v2\/tags?post=58854"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}