Maximising Value: The NHS’s Adoption of Value Based Procurement

What is Value-Based Procurement?

As demand for healthcare services in the UK grows rapidly, the healthcare system faces further pressure and providers are actively seeking efficient solutions to achieve cost savings while improving patient outcomes. Given that approximately 70% of medical technologies are acquired through procurement, the procurement process plays a vital role. Providers are now looking to new innovative solutions and have begun to adopt value-based procurement (VBP) as a means to effectively address these challenges.

Prioritising the value of products and services over cost price, VBP offers a forward-thinking approach to procurement. Its potential extends beyond financial savings, impacting critical elements of the healthcare ecosystem including patient outcomes, stakeholder advantages, and the overall cost of care. With its ability to deliver significant benefits to patients, providers and stakeholders, VBP is emerging as a an increasingly important solution within healthcare.

NHS Supply Chain Adopts VPB

The NHS faces year on year limitations to its financial resources alongside a rising demand for its services. NHS Supply Chain have initiated a project aimed at exploring the potential benefits and practical application of VBP, to address the persistent challenges facing the NHS and drive sustainable cost savings and improve patient outcomes.

The project aims to shift focus away from solely reducing product costs, and instead adopt technologies that can drive reductions in total costs within the patient pathway.

NHS Supply Chain have carried out initial pilot tests and have uncovered several potential benefits for the NHS that will help with supporting the ongoing development and financial growth of the healthcare system. These benefits include enhanced operational efficiency, reduced waste, lowered infection rates, and facilitating the transition from impatient to day care for patients.

NHS Supply Chain recently conducted a VBP pilot project with The Royal United Hospitals Bath NHS Foundation Trust (RUH). The hospital’s endoscopy department faced substantial capacity issues due to increasing demand, impacting targets and wait times. The project involved procuring a new type of endoscope that was specially designed reduce operating time and improve patient outcomes.

The pilot project delivered significant savings for the NHS through a reduction in operating times by approximately 10 minutes per procedure, along with significant decrease in the number of complications. The full case study can be found here.

There are a variety of informative videos, documents and case studies available to explore on the NHS Supply Chain website if you would like learn more about the potential implications of VBP for the NHS, and discover insights into the VBP pilot projects, including the impacts and findings.


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