DHSC To Roll Out Value-Based Procurement For MedTech

The Department of Health and Social Care (DHSC) is set to introduce new value-based procurement guidelines for medical technology (MedTech), shifting focus from cost-driven purchasing to long-term effectiveness and patient outcomes.

Currently, the NHS spends around £10 billion each year on MedTech, but much of this spending has been guided by upfront cost rather than long-term value. Under the new approach, thirteen NHS trusts will pilot the guidance, with full implementation expected by early 2026. The initiative aims to deliver billions of pounds in savings by prioritising technologies that deliver better patient outcomes over time.

Health Minister Zubir Ahmed said that as innovation in lifesaving technology accelerates, the government is moving away from short-term spending and ensuring that long-term patient outcomes are central to every investment decision. He emphasised that investing in the most effective technologies—not just the cheapest—will improve patient care, cut waiting times, and create long-term cost efficiencies as part of building an NHS fit for the future.

The government will work with NHS Supply Chain and the NHS London Procurement Partnership (LPP) to implement the programme, focusing initially on cardiology and vascular devices, as well as the use of artificial intelligence in clinical settings. LPP managing director Lee Joseph described the initiative as a turning point for NHS commercial innovation, adding that involving suppliers in the ownership and accountability of care pathways is key to improving patient outcomes.

Early trials have already demonstrated positive results. Barts Health NHS Trust tested the use of advanced mesh in high-risk cardiology procedures—previously avoided due to cost—and found it reduced infection rates and hospital readmissions, saving around £1,100 per patient annually. Bradley Day, interim managing director at Barts Health NHS Trust, said the trust was pleased to see value-based procurement expanding across the NHS. He noted that Barts used the approach to develop the BLISTER tool, which reduces cardiac device infections, enhances patient outcomes, and delivers over £103,000 in annual savings.

Similarly, the University Hospitals of Leicester NHS Trust increased the use of remote monitoring devices for patients with irregular heart rhythms, costing around £500–£600 per patient. The pilot found 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 that value-based procurement has already transformed how the NHS secures medicines, and extending the model to equipment will further improve patient care. She added that this shift 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.