As the NHS transitions to a new procurement era, value-based procurement (VBP) is set to replace cost-first purchasing. With the Department of Health and Social Care (DHSC) taking over NHS England responsibilities, including NHS Supply Chain, the VBP framework will become legislation by late 2025.
Key changes:
- 60% of procurement decisions will now be based on value, including:
- Patient outcomes
- System efficiency
- Social value (10%)
- Only 40% will focus on price.
For MedTech firms, this marks a major shift. It’s no longer enough to prove clinical efficacy or low upfront cost. Companies must now demonstrate system-wide value, including impact on care pathways, hospital stays, readmission rates, and broader economic benefits.
Real-world evidence, pathway mapping, and cost impact modeling are critical to competing under this model. IQVIA emphasizes that understanding implementation costs and patient experience will determine success.
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