Across Europe all healthcare providers are facing similar challenges of rising costs with less opportunities for traditional contractual price saving on products and services. This has led to a growing acceptance of the need to focus on value which can be represented through patient outcomes and total cost of care. It has been labelled Value Based Procurement (VBP) and is progressively being embed in healthcare services procurement processes.  

VBP is defined by MedTech Europe as a focus on how a product or solution can best deliver desired outcomes, reduce the total cost of care and provide long-term benefits to all the stakeholders in the healthcare ecosystem, rather than focusing exclusively on initial cost of a medical technology device, which is usually equated to price.¹ In simple terms for a hospital this is a purchasing process that has tangible and measurable benefits that make a positive impact on patient care and increase efficiency.  


The public central purchasing body for hospitals in France, RESAH published a guidebook on how to understand VBP² and why the time has come to take a fresh approach to procurement practices. It highlights an example of how a full cost approach for driving outcomes can be applied to strategic supplies with a broad impact on the delivery of patient care such as surgical gloves.

The NHS implemented a project designed to consider the potential benefits and practical application of Value Based Procurement. A report from this NHS Supply Chain VBP project³ found five key categories where value was created:
A number of challenges were shared by suppliers who participated in the project including acquiring agreement from all stakeholders, business continuity planning with high hospital staff turnover, engagement with commissioners at an early stage, competing priorities within the Trust and a misalignment in the interpretation of value. The definition of value is a shared challenge that the study by Beratungsunternehmen Blue Advisory⁴ in Germany, concluded that there was a lack of standardized methods for measuring value in the VBP process. Unfortunately, this will only lead to the procurement process focusing on cost rather than value.

To ensure VBP acceptance and success a collaborative effort from both healthcare providers and medical suppliers is required. Healthcare providers need to promote a culture that values outcomes and quality over cost savings alone and work closely with suppliers to align on the value of the products and services they offer. Whilst medical suppliers should focus on a standardized method for measuring value and investing in products and services that improve patient outcomes and increase efficiency of the healthcare provider.

REFERENCES
1. MedTech Europe. (n.d.). Value-based Procurement - MedTech Europe, from diagnosis to cure. [online] Available at: https://www.medtecheurope.org/access-to-medical-technology/value-based-procurement/ [Accessed 3 Apr. 2023]
2. Euriphi. (n.d.). Resah Guidebook ‘Understanding Value Based Procurement: a new approach to purchasing’. [online] Available at: https://www.euriphi.eu/news/resah-guidebook-understanding-value-based-procurement-a-new-approach-to-purchasing/ [Accessed 3 Apr. 2023].
3. Mangan, B. (2021). NHS Supply Chain Value Based Procurement Project Report and Findings. [online] Available at: https://azuksappnpdsa01.blob.core.windows.net/datashare/NHS-Supply-Chain-VBP-Report-February-2021.pdf.
4. www.bvmed.de. (n.d.). Studie ‘Value-based Procurement’ im Auftrag des BVMed veröffentlicht. [online] Available at: https://www.bvmed.de/de/versorgung/krankenhaus/studie-value-based-procurement-in-der-medizintechnologie-blue-advisory [Accessed 3 Apr. 2023].