How Value-based Procurement Could Help NHS England

As the NHS faces mounting financial pressures while striving to improve patient outcomes, traditional procurement methods focused solely on item prices are being challenged. 

Value-based procurement (VBP) represents a fundamental shift in how healthcare systems evaluate and purchase medical products, considering their broader impact across entire patient pathways rather than just upfront costs.

Richard Maddison, Public Affairs Market Access and Strategic Healthcare Manager at Essity, a leading NHS consumable products supplier, discussed the company's pioneering VBP initiatives, the evidence supporting this approach and the challenges and opportunities for implementing VBP across the NHS and wider UK healthcare system.

Essity’s been running a sustained initiative to deliver value-based procurement [VBP] in the NHS. What does VBP actually mean for a healthcare system and what is the problem to which you’re promoting it as the solution?

VBP is a methodology that evaluates the full impact of a product on a pathway in healthcare, rather than just its cost. This approach allows the NHS to realise savings from the broader impact of a product. Our projects at Essity have shown that using the right product on a patient pathway can improve patient outcomes and reduce strain on the NHS, including workforce, sustainability and waste.

We have multiple VBP projects across various therapy areas, such as continence care, which focus on patient outcomes and environmental impacts; and our post-C-section case study demonstrates that using air-interactive antimicrobial dressings significantly reduces surgical site infections (SSIs) in new mothers.

What’s your evidence to support the claim that the introduction of VBP can simultaneously improve patient experience and outcomes, reduce environmental impact and deliver significant savings to NHS and social care budgets?

Essity has published two case studies published in Healthcare journals that demonstrate the impact of our continence care products when used correctly. Additionally, a post-surgical case study published on the NHS Supply Chain website shows the reduction of SSIs in women following C-sections.

This data supports our claims about the broader benefits of our products (Sorbact Film Dressing Improves Patient Experience » NHS Supply Chain).

Have you been pushing at an open or a locked door in your dialogue with Department of Health and Social Care and how are officials there responding to your initiative?

Over the past two years, the Department of Health and Social Care has been actively working to make VBP a reality. David Lawson and his team at the Med-Tech Directorate, are developing a methodology to allow the NHS to see true VBP outcomes.

However, there is still a challenge in embedding this approach due to the pressure on NHS trusts to make quick financial savings, which sometimes overshadows the broader impact of VBP.

How has the still relatively new Labour Government reacted to a concept developed by its predecessor and how does VBP fit with the key priorities Health Secretary, Wes Streeting, has set out for the NHS in England?

The New Labour government is still finding its feet in which areas to continue to drive following the previous government.

The positive messaging in the 10 year forward plan and the discussions that Wes Streeting has been having do give confidence due to the fact that there is a continued focus on upstream intervention putting the patient at the heart of every clinical decision and ensuring the best pathways and products are available for the clinicians and patients who need them within the UK.

A switch to VBP really would be a paradigm shift for NHS purchasing managers because they have to date been focused solely on item price. How, in practical terms, will they be able to assess the rather vague concept of “value”?

Traditionally, the focus has been on cost savings from the product itself, not the overall impact on the pathway. For VBP to succeed, there needs to be open and transparent collaboration between industry, health and procurement.

Essity believes that for this to be a success the walls need to be broken down between industry, health and the procurers to ensure that we have an open transparency where metrics data and impacts are agreed, reviewed and assessed before, during and after all tenders have awarded.

The development of a database with questions and evidence supplied by industry, health and procurement will be a very effective way of being able to demonstrate true value impacts of their product.

What is the likely timeline for the roll-out of VBP for the NHS in England and what about the devolved administrations of Scotland, Wales and Northern Ireland?

It’s difficult to provide a precise timeline. The Department of Health and Social Care is working hard to develop a methodology, database and procurement process for VBP.

The sooner VBP is adopted, rolled-out and actively promoted, the better the results will be for the NHS, social care and the wider health economy across the UK.

Is the rest of industry on board?

I can't talk for the whole of industry, bit at Essity we are dedicated to delivering value based procurement evidence projects and, we are committed to making this work for our patients and our partners within the NHS and social care.

From my conversations, it’s clear that the industry is keen to implement VBP to ensure the true impact of their products is recognised, rather than just opting for the cheapest product.

Explore the latest edition of Procurement Magazine and be part of the conversation at our global conference series, Procurement & Supply Chain LIVE.

Discover all our upcoming events and secure your tickets today.

Procurement Magazine is a BizClik brand