DHSC to roll out value-based procurement for MedTech

The Department of Health and Social Care (DHSC) is launching new guidelines on value-based procurement for MedTech.

Around £10bn per year is spent on MedTech, but the NHS has previously opted to buy technology based primarily on cost rather than effectiveness. 

Thirteen NHS trusts will pilot the new guidance, which is expected to be in place by early 2026, and save billions of pounds by considering how well technology works for patients in the long-term.

Zubir Ahmed, health minister, said: “As our greatest minds develop new lifesaving technology and the technological revolution takes off, we are doing away with the sticking plaster spending mentality and ensuring long-term patient outcomes are at the heart of every spending decision.

“We must invest to save, and by purchasing the most effective technology, not just the cheapest, we’ll improve patient care, cut waiting times and drive long-term cost savings – as we build an NHS fit for the future.”

The government will partner with NHS Supply Chain and the NHS London Procurement Partnership (LPP) to roll out value-based procurement, including for purchasing technology and devices used in cardiology and vascular treatment and the use of AI in clinical settings. 

Lee Joseph, managing director of the LPP, said: “The value-based procurement initiative signals a watershed moment in commercial innovation in the NHS and DHSC.

“I am convinced that one of the best ways to improve the patient journey is to involve the supplier base in ownership and accountability of pathways and outcomes.”

In early trials, Barts Health NHS Trust tested mesh in procedures involving cardiology patients at high risk of infection, which NHS trusts were hesitant to purchase because of high cost.

Barts found that the innovation reduced infection rates and hospital re-admissions, delivering cost savings of around £1,100 per patient per year.

Bradley Day, interim managing director at Barts Health NHS Trust, said: “At Barts, we’re really excited to see value-based procurement being scaled across the NHS.

“The trust were early participants in the programme, using it to develop our BLISTER tool that has been proven to reduce cardiac device infections, enhance patient outcomes and deliver over £103,000 in annual savings. 

“The tool, developed through a value-based procurement approach, is good for patients and good for taxpayers, as is the programme itself.”

University Hospitals of Leicester NHS Trust increased its use of a remote monitoring function used in small, electronic devices implanted in the body to monitor, regulate and treat irregular or dangerous heart rhythms, which costs around £500 to £600 per patient.

The pilot found benefits, including a 43% reduction in hospitalisations and reduced clinical follow-up time.

Fiona Bride, interim chief commercial officer and director of medicines value and access at NHS England, said: “Value-based procurement has already improved how we secure medicines, and now it’s being applied to the equipment patients rely on every day.

“This is about more than cost. It’s about working with suppliers to deliver technologies that bring real value – with better outcomes for patients, greater efficiency for the NHS and sustainable care for the future.”