Latest Developments in Value-Based Procurement in the NHS Supply Chain
A Shift Towards Value-Based Procurement (VBP)
New Lead of NHS Supply Chain's Procurement and Supply Advisory Board to prioritize value-driven purchasing and digital advancements.
The National Health Service (NHS) is embarking on a significant transformation in its procurement strategy, moving towards Value-Based Procurement (VBP). This strategic approach aligns procurement processes with patient outcomes, focusing on the lifecycle value of products rather than just cost[1][2].
New Leadership and Priorities
Recent appointments within the NHS have signalled a commitment to VBP. Joe Harrison CBE, formerly CEO of Milton Keynes University Hospital NHS Foundation Trust, has been appointed as the new Chair of the NHS Advisory Board for Procurement and Supply. His priorities for his new role include digital innovation, value-based procurement, and cross-sector collaboration[1].
Meanwhile, Sir James Mackey has stepped into a new role as Chief Executive Officer of NHS England, bringing a wealth of experience to the table[1].
The Role of Clinicians and Stakeholders
Clinicians are being encouraged to play a more active role in setting procurement criteria to focus on patient experience and outcomes. The National Advisory Board, which includes senior stakeholders from various sectors, will help shape the national procurement strategy for the NHS[2].
Challenges and Solutions
The shift to VBP presents several challenges. For instance, suppliers of innovative products may face difficulties in demonstrating their value if there are no comparator products on the market. To address this, incentives and targets for purchasers will need to be reimagined to support the VBP approach[1].
Key concerns about the current draft methodology for VBP assessment include avoiding unreasonably high hurdles, accepting real-world evidence, encouraging risk-sharing agreements, and expanding the scope to include primary and social care[1].
Embracing Technology and Sustainability
The NHS is integrating technology to streamline supply chain processes, reduce administrative burdens, and enhance efficiency. Platforms like PEPPOL and eProcurement systems are being utilized to optimize ordering and payments[2].
There is also a growing focus on sustainability, with initiatives to reduce environmental impacts and promote social value in procurement. This includes using reusable surgical equipment and incentivizing suppliers with greener practices[2][3].
The Future of Healthcare Delivery
By focusing on value rather than cost, the NHS can make more strategic purchasing decisions that enhance clinical efficacy and patient outcomes[2]. VBP fosters collaboration between procurement, clinical, and supplier teams, which can drive innovation and improve healthcare delivery[1].
The integration of sustainability and social value in procurement can lead to wider societal benefits, aligning with NHS goals to support broader social and economic development[3].
In conclusion, the adoption of value-based procurement in the NHS Supply Chain has the potential to transform healthcare delivery by prioritizing patient outcomes, driving innovation, and achieving broader societal benefits. Established NHS suppliers and innovators are encouraged to engage with the process of VBP's finalisation and introduction.
References:
[1] NHS England. (2021). Value-based procurement: A guide for NHS suppliers. Retrieved from https://www.england.nhs.uk/wp-content/uploads/2021/09/value-based-procurement-a-guide-for-nhs-suppliers.pdf
[2] NHS Supply Chain. (2021). Our approach to sustainability. Retrieved from https://www.nhssupplychain.nhs.uk/about-us/our-approach-to-sustainability/
[3] NHS Confederation. (2021). Sustainability and the NHS. Retrieved from https://www.nhsconfederation.org/resources/sustainability-and-the-nhs/
- The shift towards Value-Based Procurement (VBP) in patient care aligns procurement with science, focusing on the lifecycle value of products in the healthcare industry.
- Science plays a crucial role in demonstrating the value of innovative medical-conditions treatments and therapies within VBP.
- In the workplace-wellness sector, VBP encourages a focus on employee health and wellness, including chronic diseases such as cancer and respiratory conditions.
- Digital innovation is a priority for the new leadership in NHS, led by Joe Harrison CBE and Sir James Mackey, embracing new sciences like environmental-science and artificial-intelligence.
- A VBP approach in digestive-health and eye-health can improve healthcare delivery, ensuring patient outcomes are paramount in procurement decisions.
- Hearing issues, one form of mental-health concern, can also benefit from VBP, enabling the purchase of advanced therapies and treatments.
- The integration of fitness-and-exercise and nutrition in VBP can result in improved cardiovascular-health and overall health-and-wellness.
- Autoimmune-disorders such as rheumatoid arthritis can be better managed through VBP, allowing for the procurement of effective treatments.
- Climate-change initiatives, an area of concern in environmental-science, can be incorporated into VBP, promoting environmental-friendly manufacturing practices.
- Mental-health services can streamline procurement using VBP, focusing on therapies and treatments that deliver the best patient outcomes.
- In the area of health-and-wellness, VBP can encourage workplace-wellness programs, including meditation and stress management, addressing mental-health concerns.
- Fitness-and-exercise can be supported by VBP within the retail sector, by promoting products that help people achieve their fitness goals and maintain cardiovascular-health.
- entrepreneurship and innovation in the medical-conditions and chronic-diseases sectors can thrive under VBP, as solutions that demonstrate value are more likely to be procured.
- VBP can ensure the procurement of equipment relevant to respiratory-conditions and eye-health, enhancing treatment effectiveness and patient outcomes.
- Smart-home-devices, like wearables and gadgets, can contribute to VBP by monitoring health and wellness, encouraging healthier lifestyles.
- VBP can incentivize suppliers to adopt greener practices in the manufacturing industry, promoting sustainability and reducing the impact on skin-conditions and other environmental factors.
- Space-and-astronomy can collaborate with VBP by providing data on climate-change and its effects on health, informing more strategic purchasing decisions.
- The finance sector can support VBP by investing in innovations that improve patient outcomes and promote health-and-wellness, such as wellness-focused startups.
- Industry leaders can embrace VBP by engaging in leadership roles, advocating for patient-centric initiatives and supporting diversity-and-inclusion within the healthcare sector.
- The integration of VBP in transportation can improve patient care, by ensuring the procurement of cleaner, more efficient vehicles for transporting patients.
- Energy-efficient solutions can be prioritized in the procurement process under VBP, supporting the reduction of pollution-related health risks.
- Small-businesses in the nutritional and fitness sectors can benefit from VBP, as they offer cost-effective solutions that deliver positive health outcomes.
- Investing in venture-capital, personal-finance, and wealth-management may provide opportunities to support innovations in VBP, including those in digital health solutions.
- Real-estate can support VBP by offering spaces tailored to health-and-wellness, such as fitness centers and gardens.
- Stock-market trends can be influenced by the success of VBP implementations, providing opportunities for investors.
- Private-equity can invest in innovations relevant to VBP, supporting the growth of ventures that prioritize patient outcomes.
- Saving and debt-management strategies can be improved under VBP, as individuals focus on their health and wellbeing, reducing the financial burden of medical-conditions and chronic-diseases.
- gadgets like smartphones and smart home devices can contribute to VBP by providing tools for managing finances, promoting financial health and wellness.
- Data-and-cloud-computing can streamline the procurement process under VBP, enabling real-time tracking of inventories, improving efficiency and reducing expenses.
