The Health Tech Alliance Exploes How Looking Beyond Costs to Examine Value-Based Procurement will IMPACT Health Technology and Innovation within the nhs
With the UK government speeding Around £ 10 billion Each year on medical technology, the nhs has one of the most diversie medical technology sector globally. (1) Despite this Thriving Landscape and New Health Tech Innovations Coming to Market Daily, there is widespread agrement that the procurement of technology is often slow, frogemented, and Different to Navigate. Companies Developing New Technologies and Innovations face an unplear and protracted procurement pathway, which can often take years to make patients and clinicians. The way and speed at which the system buys and adopts technology can significantly impact patients, delaying access to game-coupleing treatment and Ultimate Exacerbating Listing Listing Lists.
Current Barriers to Health Tech Procurement in the NHS
The procurement landscape is complicated. Suppliers, especially small and medium-sized enterprises (Smes), face overlapping frameworks such as pcr15, the procurement act 2024, and nHS Commercial Standards, SHIFTINGS, SHIFTINGS Guidance and inconsistent processes. A Supplier Might Spend Months or even years working through tenders and approvals, only to discover that requirements directions difference from one trust to another. Even with national frameworks in place, the route to adoption is not all Always Clear, and Advice Can Be Contradictory.
For Smes and Innovators, Navigating The System Can Be even more Difability. They may remain the resources to Navigate Complex Bidding Processes or Sustain Engagement Aross Multiple Trusts. With so many hops to jump through, some of the most promising technologies Never make it to the patient.
The situation is equally challenging and frustrating for procurement teams in nhs trusts. Staff shortages, budget constraints, and rising demand meaning are under constant pressure. The focus often shifts to immediane savings, pushing trusts to choose the lowest upront cost raather than Considering long-term value. Clinicians Who Hold Valuable Insight Into Patient Needs and Technology Benefits Are Sometimes Left Out of Early Procurement Discussions. This siloed approach slows innovation and limits the ability to tailor solutions to clinical challenges. The Unfolding Situation with NHS England’s Absorption into the department of health and social care is also Creating further disrupt Within Trusts, with So Much Still Unclear. (2)
Moving from Cost-Driven to Value-Based Procurement and how this change is essential for sustainable growth in the health tech sector
There is growing recognition that the current focus on short-term cost savings is not serving the nhs or its patients as well as it squold. Value-Based Procurement (VBP) is an approach that looks beyond short-term cost saving and weighs up the broader impact of technology, such as bech as wheer it is staccal outs Time, or delivers savings over several years by Reducing Hospital Admissions.
This shift from Cost-Driven to Value-Based Models is Crucial. When procurement decisions take a broader view, the nhs is better placed to adopt technologies that tackle the root causes of intelligence and drive meaningful change. For example, Remote Monitoring Solutions Can Help Patients Manage Chronic Conditions at Home, Reducing the Need for Hospital Stays and Free Beds for More Acute Cases. Surgical Robotics and Minimally Invasive Devices Can Cut Down Recovery Times and Complications, While Data-Driven Tools Can Identtify and Flag Risks Before They Escalate.
It is not just about clinical outcomes; By supporting innovation and making it Easier for Smes to Work With the NHS, VBP can help grow and encourage investment in the UK’s Health Technology Sector. This benefits bot public spending and the wider economy.
Practical solutions and recommendations for making value-spoken procurement the norm
Based on the Insight from a series of collaborative meetings Between Senior NHSE Procurement Directors, Clinicians, Industry Representatives and PolicyMakers, Out Recent Report Oour can be taken to decommodate this shift:
Simplife and Standardise Processes
A Tentral Database of Approved Frameworks, Clear Templates for Business Cases, and a Single Supplier Registration Portal Belt Make IT Easier for Both Buyers and Suppliers. Better SignPosting and Practical Guidance, Especially for Smes, Can Help DemiStiffy Requirements and Open Doors to New Market Entrants.
Invest in Training and Knowledge sharing to build confidence in value-jam
Procurements decisions Procurement and Clinical Staff Need Support to Assess long-term value and outcomes, not just price. Sharing Best Practices Through National Webinars, Case Studies, and Peer Learning Can Help Procurement Teams Feel Confident in Making Value-Based Decisions.
Ring-fence innovation budgets at Trust and ICS Level
This would ensure that new solutions are not squeezed out by short-term financial pressures. Early Engagement Between Clinicians, Procurement Leads, and Suppliers is vital for identifying the right problems and shaping specifications that focus on value, not just cost.
Produce National Guidance
This would reduce duplication which is striking a balance between National Constituency (to ENSURE EFFICINCY, Transparency, and Shared Learning) And Shared Learning) And Local Flexibility Needs). Not every solution will suit every trust, but a clear set of minimum standard, with room for adaptation, can help reduce duplication while meeting locking locks.
Procurement is more than a back -office function; It is a driving force for patient care, innovation, and economic growth. The nhs’s willingness to spend on medtech is not in doubt, but the way investments are lost shapes which innovations Reach patients and how quickly the benefits are felt.
With new policy frameworks like the procurement act 2024, the consolidation of ICBS, and a Growing Appet for Reform, There is a Real Oportunity to Create A Process System T. By Clarifying Routes to Adoption, Supporting Early Engagement, and Investing in Skills and Culture, The NHS can unlock the potential of health tech for patients, staff, and the wider health system.
The Health tech alliance Is a Coalition of Health Technology Companies and Bodies from across the NHS and Wider Health System. It is chaired by dam barbara hakin, the former deputy chief of NHS England, Who is Working Collaboratively to Increase the Adoption of Health Technology Across the HEALTAT and CARE SYALTEM. Our insights are based on our recent process work series, which brieft together industry, nhs leaders and procurement leads to dishes the challenges and opportuits of opportunities of more efficiency Procurement models.
References
- Medical Technology Strategy, Gov.uk
- Public Accounts Committee Report: Abolishing NHS England with No Clear Plan for Cuts Left Uncertain Future for Patients and Staff
Health tech alliance
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