Rather than buying tech based primarily on cost, the NHS will now look at effectiveness as it shifts to value-based procurement. 

The NHS has revamped its approach to buying the latest medical technology. Rather than buying tech-based primarily on cost rather than effectiveness, the new approach could save what it considers “billions of pounds”. 

The new approach will consider how well the equipment works for patients in the long term, supports patient and staff safety, and drives down future costs, including warranty.

Following early trials of the value-based procurement guidance and extensive engagement across the health system, including with industry and patient groups, 13 NHS trusts will pilot the new guidance, with rollout across the NHS expected early next year.

“This is about more than cost. It’s about working with suppliers to deliver technologies that bring real value – with better outcomes for patients, greater efficiency for the NHS and sustainable care for the future,” said Fiona Bride, interim chief commercial officer and director of medicines value and access at NHS England. 

Unblocking innovation

As well as supporting individual trusts to purchase medtech, the government is partnering with NHS Supply Chain and the NHS London Procurement Partnership to roll out value-based procurement across the country – including for purchasing technology and devices used in cardiology and vascular treatment and the use of AI in clinical settings. The NHS Supply Chain’s Cardiology and Vascular Framework alone is worth approximately £1 billion.

How NHS trusts purchase medical technology differs across the health service, with the absence of any standard guidance. This makes it difficult for medtech suppliers to do business with the NHS and drives suppliers away. It blocks innovation from getting to the front line of patient care.

“The value-based procurement initiative signals a watershed moment in commercial innovation in the NHS and DHSC,” said Lee Joseph, managing director of the NHS London Procurement Partnership. 

“I am convinced that one of the best ways to improve the patient journey is to involve the supplier base in ownership and accountability of pathways and outcomes,” he continued.