The Value Based Procurement journey in Europe – A MedTech Europe reflection
Demand for health services and care is rising in Europe. An ageing population and a growing burden of chronic illnesses and disabilities are driving increased health spending and shortages of qualified medical staff. At the same time, citizens expect better quality care, increased efficiency, greater involvement in decision-making, and improved access to innovative products, services or solutions . Health systems have been slow to respond.
Innovative technologies and solutions can deliver efficiencies for health systems and improved outcomes for patients. However, outdated models of procurement – originally designed for buying low-cost goods at high volumes – are ill-suited to purchasing innovative solutions that fundamentally alter patient pathways. In addition, new financing and investment models are essential to achieving value and protecting sustainable universal health coverage in Europe. Rather than focusing on volume and price, procurement decisions should place value and innovation at their core.
Value-based procurement is viewed by the medtech industry and the procurement community as a tool with the power to unlock value in healthcare. By shifting to value-based procurement, manufacturers and procurers can better respond to the mounting challenges facing health systems and accelerate the shift to value-based high quality healthcare.
Across the EU, momentum is building behind value-based and innovation procurement. Several procurement authorities are applying this approach in tenders, with positive results. Companies who are early adopters of value-based procurement are already reaping the benefits and are well-placed to take a leadership role in the years ahead. With a growing community of expertise and experience in Europe, the future of procurement is value-based. All stakeholders can contribute to accelerating the adoption of value-based procurement.