Understanding Value Based Procurement: a new approach to purchasing
As procurement organisations grow in maturity, traditional profit levers such as bulk buying and standardisation naturally start to reach their limits. Purchasing functions are still expected, however, to continue their efforts in improving the overall performance of hospitals and other healthcare facilities. To purchase more efficiently, an alternative approach is gaining strong traction in the United States and Europe: Value Based Procurement. In other words, procurement that integrates the concept of expected value in the decision-making process, translating it into selection criteria and assessing the impact throughout the contract lifecycle. The aim of this innovative method is to achieve the best possible outcome taking into account the perspectives of all the stakeholders: patient well-being, the working environment of Healthcare staff, the healthcare system’s performance, the balanced development of suppliers, but also, more broadly speaking, the benefits to society and our planet. This guide presents an outline of this new approach, its aims and its benefits. It includes advice and tools towards adopting this new purchasing philosophy..