> ## Content Index > Fetch the complete content index at: https://med-techinsights.com/llms.txt > Use this file to discover other available public pages before exploring further. # Preparing for Value-Based Procurement in a shifting NHS landscape - URL: https://med-techinsights.com/preparing-for-value-based-procurement-in-a-shifting-nhs-landscape/ - Published: 2025-04-29T08:24:25.000Z - Updated: 2026-10-23T02:31:53.000Z - Description: Sarah Denham, Principal Consultant for Market Access and Patient Activation at IQVIA The NHS will be undergoing significant transformation following the announcement of the abolition of NHS England (NHSE), with responsibilities (including NHS Supply Chain) being moved into the Department of Health a - Author: Oliver Johnson - Tags: Sponsored, Insights, Policy & Regulation ###### *Sarah Denham, Principal Consultant for Market Access and Patient Activation at* [***IQVIA***](https://www.iqvia.com/?ref=med-techinsights.com) --- The NHS will be undergoing significant transformation following the announcement of the abolition of NHS England (NHSE), with responsibilities (including NHS Supply Chain) being moved into the Department of Health and Social Care (DHSC) creating uncertainty for employees and stakeholders. The new value-based procurement framework will be legislation later this year and is a key DHSC objective, so even with change on the horizon, it’s here to stay. ###### **What’s changing?** The existing procurement environment has previously prioritised lowest-cost solutions, often overlooking the wider environmental issues, patient outcomes/experience, social value and long-term efficiency of healthcare technologies. DHSC has been working to change this and is aiming to publish VBP Standard Guidance by March 2026\. Procurement criteria will shift significantly to: - 60% of procurement decisions being based on value, including pathway impact, patient outcomes, and system efficiency. - Only 40% being cost-based. Although there is a lot of uncertainty over structures and organisational changes over the coming years, this new methodology is unlikely to change. So, whether it’s NHSSC or a new DHSC department overseeing implementation, the expectations on suppliers under the new value-based procurement methodology, will remain. ###### **Why it matters to MedTech** For the MedTech sector, this shift represents both a challenge and an opportunity. Previously most purchasing decisions – either national or local – have been made from a clinical effectiveness and cost perspective. Moving forward, this new framework will consider the whole life cost, as well as other evaluation criteria such as pathway efficiency, social value, patient experience and supply chain resilience. For a company that is used to working with a particular specialty, this may mean understanding the impact of a product across the whole pathway, including potentially follow up costs, primary care and social care costs, diagnostic and lab costs, and what the overall cost is of any new pathway following the implementation of the innovation vs the current pathway of care. This is where the real change lies, as value-based procurement will not just be about device performance, but about how a technology fits within a care pathway. Understanding implementation cost, not just clinical value, is essential as 60% of procurement decisions will be based on value, which will include 10% on social value, and 50% looking at efficiency, patient and staff experience and safety, the resilience of the supply chain and meeting the required specifications. Looking at the example of Transcatheter Aortic Valve Implantation (TAVI) – due to the high cost of the implant kit, it was originally seen as a very expensive alternative to open-heart surgery, but TAVI’s value became clear during COVID-19\. Following the procedure to implant TAVI, there is a significantly shorter stay in hospital and less intense post-operative care is required, so TAVI allowed providers to treat more patients, which is a clear demonstration of implementation cost as a key value driver. ###### **Why pathway insight matters for MedTech** As the NHS moves towards this new value-based procurement framework, MedTech suppliers will need to shift their focus from upfront price, to demonstrating system-wide value. It’s no longer enough to show a product is clinically effective, suppliers must understand where it fits in the whole patient pathway, and how it impacts cost, efficiency, and outcomes across the system. This means identifying how an innovation reduces pressure on services, shortens hospital stays, minimises readmissions, or enables care to happen in less resource intensive settings. Without this evidence, even the most promising technologies risk being overlooked in procurement decisions which are increasingly based on real-world data. At IQVIA, we have helped suppliers and providers with deep pathway analysis, real-world evidence generation, and cost impact modelling. Our award-winning work in areas like lung disease (PATHFINDER) has shown how mapping the full patient journey can uncover the true value of innovation. As NHS procurement evolves, this level of insight will be essential for MedTech companies aiming to compete and succeed in a value-driven system. ###### **What next?** This is a moment of opportunity. The move to value-based procurement is not simply a policy change, it’s a cultural shift in how the NHS evaluates and values MedTech innovation. As the NHS prepares to roll out this new procurement framework, organisations need to understand: - What evidence is needed? - How should it be structured? - How do we demonstrate value across the care continuum? IQVIA is uniquely positioned to support this transition through our services: - Structured support for value-based submissions - Pathway and cost impact modelling - Custom digital tools for data collection - Expertise in aligning MedTech with life sciences strategies This new framework will change the way the healthcare system thinks about MedTech, shifting to a focus on longer term value and not a single upfront cost which encourages collaborative working with providers and suppliers, to understand and utilise the overall benefits of MedTech innovation. IQVIA can help ensure that MedTech companies have the knowledge and evidence to meet the requirements of this new framework.