Source · Select Committees · Public Accounts Committee
Recommendation 25
25
NHS procurement's focus on acquisition costs alone disregards overall product value and patient outcomes.
Recommendation
The Urology Trade Association told us in written evidence that it was concerned that the current focus by NHS procurement on acquisition costs alone is failing to acknowledge the importance of value for money across the whole patient pathway, and that lowest price does not always translate to best value for patients.43 The Medical Technology Group (MTG) argued that the overall value of products is often overlooked by NHS Supply Chain compared to the costs of the initial procurement of the product. It noted that medical devices could provide the NHS with longer-term savings, as well as providing patients with better outcomes, which has a positive impact on patient lives and the economy as well as reducing engagement with health and care services. MTG recommended increased efforts within NHS Supply Chain to develop and deliver ‘Value-Based Procurement models’, capturing the whole system savings necessary for the NHS.44 40 Qq 59–60, 107; Correspondence from NHSE to the Public Accounts Committee, 15 February 2024 41 Qq 53–58 42 Q 107; C&AG’s Report, Figure 12 43 NHS0005 44 NHS0007 NHS Supply Chain and efficiencies in procurement 15
Government Response
A response document is linked to this report, dated 28 May 2024. Response attribution to this conclusion has not been verified. Read the response document ↗