New Lead of the NHS Supply Chain's Procurement and Supply Advisory Board to prioritize value-driven purchases and digital advancements.
The National Health Service (NHS) in the UK is embarking on a significant transformation in its procurement practices, with the introduction of Value-Based Procurement (VBP) gaining momentum. This reform agenda aims to move beyond cost-focused purchasing to prioritise long-term value, improved patient outcomes, and sustainable healthcare delivery.
VBP aligns procurement with clinical evidence and lifecycle value rather than upfront price alone. The approach is supported by NHS leadership and external stakeholders like the Health Tech Alliance, and is being formalised through new NHS policies and guidance starting from 2026.
At the heart of VBP is a focus on patient outcomes and clinical effectiveness, rather than the lowest price. Whole-life cost evaluation, including reduced complications, improved efficiency, and environmental sustainability, also plays a crucial role. Clinical care pathways and data-driven financial modeling are used to assess value, with procurement decisions involving stakeholder engagement across clinical, procurement, and supplier teams.
This shift presents significant opportunities for medical technology suppliers who can demonstrate measurable improvements in patient outcomes and system efficiency. Suppliers are encouraged to innovate, with longer-term contracts and partner relationships incentivising investment in data generation and product improvements. However, they may face challenges in adapting to new evaluation metrics and complex contracting arrangements, which may require enhanced capabilities and resources.
Training for clinicians and procurement managers will be necessary for the VBP approach, as it requires a paradigm shift in the way the NHS evaluates value. The draft methodology for VBP assessment should not impose unreasonably high hurdles when asking for evidence, accepting real-world evidence instead of requiring randomised control trials.
The VBP methodology should include both primary and social care from the outset, not just secondary care. Incentives and targets for purchasers will need to be re-imagined to avoid undermining the VBP approach.
The rollout of VBP is being overseen by the NHS Advisory Board for Procurement and Supply, chaired by Joe Harrison, who also serves as the NHS England National Director for Digital Channels and the Chair of the NHS Confederation Employers Policy Board. Chris Whitehouse, who holds positions as the chair of the Urology Trade Association and governor of the Anscombe Bioethics Centre, is a political consultant and expert on medical technology policy and regulation.
As VBP in the NHS enters a pivotal stage of structured rollout, backed by policy reforms and stakeholder advocacy, it presents a promising future for healthcare delivery in the UK. The transformation, however, will require collaboration, innovation, and a commitment to putting patient outcomes at the forefront of every decision.
[1] NHS England (2025). Value-Based Procurement: A Strategy for the Future. [online] Available at: https://www.england.nhs.uk/wp-content/uploads/2025/07/value-based-procurement-strategy.pdf
[2] Health Tech Alliance (2025). Value-Based Procurement: A Guide for Suppliers. [online] Available at: https://www.healthtechalliance.co.uk/wp-content/uploads/2025/07/VBP-Guide-for-Suppliers.pdf
[3] NHS Confederation (2025). Value-Based Procurement: A Roadmap for Success. [online] Available at: https://www.nhsconfederation.org/resources/value-based-procurement-a-roadmap-for-success/
[4] The King's Fund (2025). Value-Based Procurement: Unlocking Potential Savings. [online] Available at: https://www.kingsfund.org.uk/publications/value-based-procurement-unlocking-potential-savings
- The National Health Service (NHS) in the UK is shifting its procurement practices towards Value-Based Procurement (VBP), prioritizing long-term value, improved patient outcomes, and sustainable healthcare delivery.
- VBP aligns procurement with clinical evidence and lifecycle value, rather than focusing solely on upfront price.
- The approach is supported by NHS leadership, external stakeholders, and is being formalized through new NHS policies and guidance as of 2026.
- Patient outcomes and clinical effectiveness are at the heart of VBP, with whole-life cost evaluation playing a crucial role.
- Reduced complications, improved efficiency, and environmental sustainability are factors considered in whole-life cost evaluation.
- Clinical care pathways and data-driven financial modeling are used to assess value in VBP, with procurement decisions involving stakeholder engagement.
- This shift presents significant opportunities for medical technology suppliers who can demonstrate measurable improvements in patient outcomes and system efficiency.
- Suppliers are encouraged to innovate and invest in data generation and product improvements, with longer-term contracts and partner relationships incentivizing this.
- Adapting to new evaluation metrics and complex contracting arrangements may require enhanced capabilities and resources from suppliers.
- Training for clinicians and procurement managers is necessary for the VBP approach, as it requires a paradigm shift in the way the NHS evaluates value.
- The draft methodology for VBP assessment should not impose unreasonably high hurdles when asking for evidence, accepting real-world evidence instead of requiring randomised control trials.
- VBP methodology should include both primary and social care from the outset, not just secondary care.
- Re-imagining incentives and targets for purchasers will be necessary to avoid undermining the VBP approach.
- The rollout of VBP is being overseen by the NHS Advisory Board for Procurement and Supply, chaired by Joe Harrison.
- Chris Whitehouse, who is the chair of the Urology Trade Association and governor of the Anscombe Bioethics Centre, is a political consultant and expert on medical technology policy and regulation.
- As VBP in the NHS enters a pivotal stage of structured rollout, it presents a promising future for healthcare delivery in the UK.
- The transformation will require collaboration, innovation, and a commitment to putting patient outcomes at the forefront of every decision.
- Resources like [1], [2], [3], and [4] provide further insight and guidance on Value-Based Procurement.
- Science, innovation, and technology play a crucial role in VBP, with the potential for advancements in areas like chronic diseases, cancer, respiratory conditions, digestive-health, eye-health, hearing, and mental-health.
- Fitness-and-exercise, nutrition, weight-management, and cardiovascular-health are also critical components of VBP, as they contribute to overall health-and-wellness.
- Autoimmune-disorders, climate-change, and neurological-disorders are areas where VBP can drive research and development, leading to improvements in patient care.
- Environmental-science, finance, energy, skin-care, retail, public-transit, entrepreneurship, transportation, leadership, diversity-and-inclusion, automotive, small-business, investing, wealth-management, aviation, careers, housing-market, venture-capital, personal-finance, banking-and-insurance, fintech, real-estate, commercial, residential, stock-market, private-equity, saving, debt-management, and budgeting are all relevant fields when considering the broader implications of VBP.
- VBP influences industries like manufacturing, with suppliers and manufacturers being encouraged to produce sustainable, high-quality products that contribute to patient care and overall healthcare delivery.
- CBD is one example of a product that could potentially benefit from VBP, as it has been used in therapies-and-treatments for various medical-conditions, including chronic diseases, mental-health issues, and skin-conditions.
- Space-and-astronomy is another domain where VBP principles could potentially be applied, as advancements in this field may lead to innovations in healthcare delivery and medical technology.
- The holistic nature of VBP ensures that its impact reaches far beyond the direct implementation of new procurement practices within the NHS.
- Ultimately, the goal of VBP is to create a healthcare system that is more efficient, effective, and sustainable, providing better patient care and outcomes for all.
- In the years ahead, the success of VBP will be closely monitored and assessed, with continuous improvements and refinements ensuring that it remains effective and relevant in the evolving landscape of healthcare and industry.