Why now is the time to talk about procurement in the medical technology sector

With the EU set to review public procurement rules, healthcare stakeholders should highlight the role of Value-based Procurement in driving sustainability and innovation

A quiet revolution has been taking place in how hospitals and health systems purchase the products and services they need to run vital services. By working together to prioritise value, stakeholders can overcome future challenges.

You're probably familiar with the urgent pressures that arise from growing demand for health services at a time when financial and human resources are limited. There are other issues too: some health systems suffer from inefficiencies, and there can be wide variation in outcomes between providers.

None of this is good for patients. That's why patients are central to Value-based Procurement (VBP) in healthcare - the process by which public authorities and hospitals buy the things they need from private companies.

A catalyst for change

Of course, when people think about improving health systems, procurement may not be the first solution that comes to mind. It is, we must admit, a little unglamorous. Procurement is essential to the smooth running of health services, but can it really be a catalyst for change?

One reason we should pay more attention to public procurement is that around 70% of all medical technologies are purchased in this way. The way that systems approach procurement shapes healthcare delivery.

But there is more to it than that. In recent years, the move towards VBP has gathered momentum. In practice, VBP means prioritising value over price; it's about seeking patient-centric, high quality and affordable healthcare that improves outcomes and delivers efficiencies.

This represents not just a technical change in purchasing procedures but a mindset shift in how the entire healthcare ecosystem operates. It takes a more holistic and long-term view of what is best for the patient and the health system rather than simply striving to minimise spending today.

Learning together

VBP is strengthening the relationships between procurement professionals and the medical technology sector. Rather than a strictly translational interaction, the best examples of this value-based approach are built on dialogue and partnership. It is a multidisciplinary collaboration, often involving clinicians and patients, designed to achieve better outcomes while decreasing the total cost of care.

To give a simple example, when buying an implantable hip or a heart valve, price is one consideration. But there is value in procuring an implant that lasts longer. Not only could it save money by avoiding the need to repeat a surgical procedure, it makes better use of human resources and is far preferable to patients.

Together, we have been on a learning curve. Procurers and medical technology companies have established a VBP Community of Practice to share the know-how required to run a value-based tender process. For example, all parties need clarity on the legal aspects of VBP, as well as robust approaches to measuring outcomes and the total cost of care. A VBP Framework has been developed and an annual conference, now in its sixth year, provides an important platform for sharing ideas and mutual learning.

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