Adjusting to Value-Driven Purchasing in an Evolving NHS Environment
In a significant stride towards a more innovative and patient-centric approach, the National Health Service (NHS) in the UK is introducing a new value-based procurement (VBP) framework for MedTech. This shift aims to prioritise long-term value over short-term cost savings, focusing on clinical outcomes and innovation impact.
Key features of the new VBP framework include prioritising long-term outcomes over upfront costs, standardising evaluation through national guidance and agreed metrics, and piloting real-world testing of the VBP framework in NHS Trusts and Integrated Care Boards (ICBs) from September to December 2025. The framework also centres on centralising procurement knowledge and processes via a new NHS innovator passport and a central portal, ring-fencing innovation budgets at trust and integrated care system levels, and embedding collaboration across NHS organisations, industry, and policymakers.
This move signifies a departure from the previous procurement environment, which was often fragmented, focused heavily on immediate cost savings, involved duplicated local evaluations, and had significant administrative complexities. The old model limited innovation adoption due to a lack of coordinated appraisal and inconsistent value measurement.
In comparison, the new system aims to be more strategic, outcome-oriented, and innovation-friendly. The table below illustrates the contrast between the old procurement environment and the new VBP framework.
| Aspect | Previous Procurement Environment | New Value-Based Procurement Framework | |--------------------------------|-----------------------------------------------------------------|-----------------------------------------------------------------| | Focus | Short-term cost minimization | Long-term health outcomes and value | | Evaluation | Local, duplicated assessments | Nationally standardized evaluations and shared "innovator passport" | | Innovation Support | Limited, fragmented budgets and inconsistent adoption | Ring-fenced innovation budgets and coordinated ICS approach | | Administrative Burden | High due to multiple local processes | Streamlined with central portals and knowledge hubs | | Collaboration & Consistency | Fragmented across trust and ICS levels | Coordinated across ICSs to share best practice | | Procurement Scope | Mainly products and devices without integrated outcome linkage | Includes outcome-based and value-driven procurement models |
These reforms are supported by NHS strategies, including the 10-Year Health Plan and Life Sciences Sector Plan, and are expected to enhance access to evidence-based, clinically effective MedTech innovations by 2026, with mandated NHS funding for approved technologies under NICE’s expanded appraisal process.
IQVIA, a leading company offering structured support for value-based submissions, pathway and cost impact modelling, custom digital tools for data collection, and expertise in aligning MedTech with life sciences strategies, can help ensure that MedTech companies have the knowledge and evidence to meet the requirements of this new framework.
Understanding implementation cost, not just clinical value, is essential, as 60% of procurement decisions will be based on value. The example of Transcatheter Aortic Valve Implantation (TAVI) demonstrates that implementation cost can be a key value driver, as it allows for a shorter hospital stay and less intense post-operative care.
The new VBP framework may also lead to the delivery of 'Innovator passports' to accelerate MedTech adoption and deliver Value Based Procurement. The NHS is undergoing a transformation, with responsibilities including NHS Supply Chain being moved from NHSE to DHSC. The evolving landscape of Digital Technology Assessment & Regulation is also a focus area.
By 2026, the DHSC aims to publish VBP Standard Guidance, marking a significant step towards a more strategic, outcome-oriented, and innovation-friendly NHS MedTech procurement landscape. This shift promises to make NHS MedTech procurement smarter, more sustainable, and better aligned with patient outcomes and innovation adoption.
- The new Value-Based Procurement (VBP) framework for MedTech in the NHS is not only focused on clinical outcomes and innovation impact, but it also prioritizes digital health solutions, as the table illustrates a shift from a fragmented procurement environment to a smarter and more strategic one that emphasizes the use of technology.
- To better adapt to the new VBP framework, MedTech companies might find it beneficial to collaborate with companies offering services like IQVIA, which can provide custom digital tools for data collection and expertise in aligning MedTech with life sciences strategies, thus ensuring they have the necessary knowledge and evidence to meet the requirements of this innovation-friendly environment.
