Rethinking NHS Procurement for Better HealthTech Adoption

As digital health solutions and HealthTech innovations reshape healthcare, the NHS stands at a pivotal moment. By shifting from a cost-centred procurement model to one that’s value-based, the NHS can unlock the full potential of these advancements. This isn’t just about updating processes—it’s about creating an ecosystem where HealthTech solutions can truly thrive, bringing real, measurable benefits to both patients and providers.

Why a New Procurement Approach Matters

Historically, NHS procurement has often focused on initial costs—a strategy that can limit the adoption of pioneering HealthTech solutions. While this cost-first approach may save money upfront, it frequently overlooks the long-term value these innovations bring. A value-based approach changes that. Instead of emphasising initial costs, it prioritises health outcomes, patient experiences, and system efficiencies. This shift allows the NHS to choose solutions that enhance care quality, reduce hospital admissions, and empower patients, building a healthier population and a more resilient healthcare system.

The Advantages of Value-Based Procurement

Adopting a value-based approach offers benefits that go far beyond cost. This model is about investing in outcomes and creating a healthcare system that prioritises patients' needs and experiences.

1. Enhancing Patient Outcomes and Quality of Care
   When the NHS prioritises value, patient outcomes improve. Take, for instance, a recent remote monitoring program for COPD patients in Scotland. This initiative reduced hospital readmissions by 30% and raised patient satisfaction by 40%. Or consider the NHS's remote monitoring efforts for diabetes, which led to better glucose management and fewer emergency visits. Studies show that value-based healthcare systems can cut readmissions by 15% and reduce costs by 20% over five years. By focusing on patient benefits, the NHS can make long-term investments that have a lasting, positive impact on lives.
2. Supporting Preventive and Personalized Care
   HealthTech is particularly effective for preventive care, where personalised digital solutions can help detect and address health issues before they become crises. For instance, HealthTech tools that offer remote monitoring or personalised care plans empower patients to manage their health proactively, easing the load on NHS resources. With value-based procurement, solutions like these receive the recognition they deserve, creating a system that’s patient-centred and preventive by design.
3. Encouraging HealthTech Innovation and SME Participation
   Value-based procurement also opens doors for innovative startups and SMEs that may otherwise struggle in a cost-focused system. These smaller companies often bring niche, high-impact solutions to the table, enriching the HealthTech ecosystem. For example, SMEs developing specialised tools for chronic disease management or remote patient care can gain better access to the NHS through a value-based approach. This shift allows the NHS to emphasise the quality and outcomes of HealthTech solutions, creating a richer, more diverse landscape of innovation.
4. Reducing Long-Term Costs and Optimising Resources
   Though value-based procurement may require a higher upfront investment, the long-term efficiencies are significant. For instance, consider digital therapeutic apps for mental health that reduce the need for in-person visits. While these tools may require initial funding, they ultimately reduce patient wait times and free up NHS resources, allowing providers to focus on those with more complex needs. By investing in HealthTech that maximises resources and reduces strain on the system, the NHS can build a more sustainable future.

Implementing a Value-Based Procurement Model in the NHS

Moving toward value-based procurement means more than a policy change; it calls for a new perspective and commitment to prioritising patient-centred outcomes.

• Define Clear, Outcome-Based Criteria
  ‍To truly focus on value, procurement criteria must go beyond costs and include measurable improvements in patient health, quality of life, and system efficiency. Metrics like readmission rates, patient satisfaction, and emergency care costs should guide procurement decisions to reflect the NHS’s commitment to impactful care.
• Pilot Programs for Testing New Solutions
  ‍Pilot programs offer a valuable testing ground for innovative HealthTech solutions. By implementing small-scale trials, the NHS can gather data on real-world impacts, enabling better-informed decisions and encouraging providers to refine their solutions.
• Collaborate with HealthTech Innovators
  ‍Early engagement with HealthTech companies, particularly SMEs, brings valuable insights and helps align solutions with NHS needs. This collaborative approach streamlines the integration of new technologies, ensuring that they serve both NHS priorities and patient needs.
• Implement Flexible Payment and Incentive Models
  ‍Value-based models benefit from flexible funding, such as outcomes-based payments. For example, wearable devices that monitor cardiac health could be funded based on improvements in patient health metrics, ensuring that both the NHS and HealthTech providers focus on meaningful, patient-centred outcomes.

A Future Built on Patient-Centred Value

Embracing value-based procurement could position the NHS as a leader in patient-centred innovation. By choosing solutions based on the value they bring to patients’ lives, the NHS has the opportunity to set a new standard for healthcare systems globally. This strategy accelerates HealthTech adoption and fosters an environment where each decision supports better patient outcomes, accessibility, and overall quality of care.

At nuom, we’re dedicated to a healthcare future where every procurement decision reflects a commitment to patient well-being and long-term impact. The NHS can be a catalyst for this vision, creating a system where innovation thrives and every tool contributes to a more connected, compassionate, and effective healthcare experience. Reach out to learn more about how we’re transforming healthcare through patient-centred, value-driven design—and let’s build a future where healthcare works for everyone.