Key Takeaways
- The UK Department of Health is introducing value-based procurement for MedTech, shifting focus from cost to patient outcomes.
- Thirteen NHS trusts will pilot the new guidelines by 2026, potentially saving billions in long-term healthcare costs.
- Innovative technologies have already demonstrated significant improvements in patient care and cost savings during initial trials.
New Procurement Guidelines for MedTech
The Department of Health and Social Care (DHSC) is setting new guidelines for value-based procurement in the MedTech sector, which sees annual expenditure of approximately £10 billion. Historically, the NHS has prioritized cost over effectiveness in purchasing decisions. The new guidelines aim to change this approach by emphasizing the long-term benefits of technology for patient health.
Thirteen NHS trusts will pilot these guidelines, expected to be implemented by early 2026. The aim is to save billions by focusing on how effectively technologies work for patients over time. Health Minister Zubir Ahmed stated, “We are eliminating the short-sighted spending mentality and ensuring that long-term patient outcomes drive our procurement decisions.”
The government plans to collaborate with NHS Supply Chain and the NHS London Procurement Partnership (LPP) to introduce value-based procurement across various technologies and devices, particularly in cardiology and vascular treatments, as well as clinical AI applications. LPP Managing Director Lee Joseph described this initiative as a pivotal moment for commercial innovation within the NHS, advocating for supplier accountability in enhancing patient outcomes.
Initial trials at Barts Health NHS Trust demonstrated the effectiveness of new technologies, particularly in procedures involving cardiology patients at risk of infections. Despite their higher initial costs, the innovations significantly reduced infection rates and hospital re-admissions, leading to estimated savings of £1,100 per patient annually.
Bradley Day, interim managing director at Barts, expressed enthusiasm for scaling value-based procurement across the NHS, particularly citing the development of the BLISTER tool, which has shown promise in decreasing cardiac device infections while delivering cost-effective outcomes. “This approach is beneficial for both patients and taxpayers,” he noted.
Similarly, the University Hospitals of Leicester NHS Trust has seen improvements through a trial of remote monitoring for patients with implantable devices designed to track and manage irregular heart rhythms. This approach costs between £500 and £600 per patient and has yielded a 43% reduction in hospitalizations and less clinical follow-up time.
Fiona Bride, interim chief commercial officer at NHS England, emphasized that value-based procurement has transformed procurement processes for medicines and is now being applied to essential equipment. She stated, “The focus is on working closely with suppliers to deliver technologies that provide real value, improving patient outcomes while ensuring efficiency and sustainability for the NHS.”
In summary, the DHSC’s commitment to value-based procurement marks a significant shift in how the NHS approaches MedTech spending, aiming for more effective and sustainable healthcare solutions. The upcoming pilot programs will pave the way for broader implementation, potentially revolutionizing how technology impacts patient care and NHS operations.
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