Essential Medical Technology Interaction Sessions Focusing on Value-Based Acquisition
The UK's National Health Service (NHS) is set to introduce a new value-based approach to procurement for devices, marking a significant shift towards assessing medical technologies based on the value they deliver across patient outcomes, system efficiency, and long-term sustainability, rather than just cost.
This new methodology, known as Value Based Procurement (VBP), is currently in a developmental and early implementation phase, supported by recent legislative reforms and national strategies. The Procurement Act 2023, effective from October 2024, underpins this shift by changing NHS and public sector procurement rules to focus on value rather than price alone.
The Provider Selection Regime (PSR), effective from January 2024, also applies new rules encouraging integration and collaboration in healthcare procurement, with social value as a key criterion, expected to hold at least 10% weighting in decisions.
The MedTech Directorate of the Department of Health and Social Care has called on MedTech developers and suppliers to come together with officials to shape this new evaluation methodology. Chris Whitehouse, a political consultant and expert on medical technology policy and regulation, is among those invited to these sessions. Whitehouse, who is also the governor of the Anscombe Bioethics Centre and chairs the Urology Trade Association, encourages suppliers to register to attend one of the sessions, scheduled for the 7th and 13th of May.
As part of this process, the UK Health Department is inviting stakeholders to provide their views on changes to key procurement guidelines. The online sessions aim to provide a platform for open discussion and collaboration, with the goal of refining and implementing VBP that caters to the unique needs of the NHS and the UK's healthcare system.
The new VBP aligns with the NHS "Fit for the Future" strategy, aiming to improve patient care, clinical efficiency, and reduce total care costs. It is part of a larger NHS 10-year plan focusing on long-term innovation adoption, especially in digital health and robotics, where detailed VBP evaluation frameworks will help assess complex benefits beyond immediate costs.
The success of VBP depends on creating evaluation frameworks sophisticated enough to capture long-term clinical and economic value, cultural shifts encouraging genuine partnerships between procurement teams and clinicians, and sustained commitment to innovation adoption. The NHS is also working to streamline innovation adoption via the proposed NHS innovator passport by 2026, which will align evaluation metrics, including value-based procurement evidence, reducing duplication across local systems.
National standard guidance on value-based procurement for medtech is being developed and is expected to be implemented soon. Pilots for new rules-based pathways and reimbursement programs for medtech innovations, incorporating VBP principles, are planned by the end of 2025 with broader NICE technology appraisals covering devices, diagnostics, and digital products starting April 2026.
In summary, VBP in the NHS is an actively evolving methodology, grounded in new legislation and strategic NHS policies, moving towards national standards and pilots for device procurement that prioritize value and outcomes over price alone, with full implementation and broader adoption expected through 2025–2026.
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- The shift towards Value Based Procurement (VBP) in medical devices is a significant change in the UK's healthcare industry, aligning with the NHS's "Fit for the Future" strategy.
- The Procurement Act 2023, effective from October 2024, is a key legislative reform supporting the VBP methodology, focusing on value rather than just cost in NHS and public sector procurement.
- The Provider Selection Regime (PSR), effective from January 2024, encourages integration and collaboration in healthcare procurement, with social value as a key criterion.
- Chris Whitehouse, a political consultant and expert on medical technology policy and regulation, is actively involved in shaping the new VBP evaluation methodology, as invited by the MedTech Directorate of the Department of Health and Social Care.
- Stakeholders, including MedTech developers and suppliers, are invited to provide their views on changes to key procurement guidelines, with an aim to refine and implement VBP that caters to the unique needs of the NHS and the UK's healthcare system.
- The success of VBP depends on creating evaluation frameworks that capture long-term clinical and economic value, fostering cultural shifts, and maintaining commitment to innovation adoption, especially in digital health and robotics.
