The government began the rollout of a new value-based procurement model across the National Health Service in England on June 11. The new approach, which has been over three years in development, changes how medical device procurements are evaluated and awarded.
Under this methodology, no more than 40 percent of the score for a medical device procurement can be based on whole-life cost. At least 60 percent must be weighted towards broader measures of value such as patient outcomes, patient experience, and environmental impact. Details about the methodology were made available by officials involved with its development.
David Lawson, Head of the Department of Health and Social Care’s Medical Technology and Innovation Directorate, first signaled the rollout during a Med-Tech Expo 2026 panel held on June 4 titled “Beyond Price: How Value-based Procurement is reshaping NHS MedTech.” Lawson said that training and support are being provided to ensure that NHS trust procurement teams are prepared to implement the new approach. He also said clinicians should engage early in procurement processes. "Procurers should feel 'empowered' by senior management to adopt the new methodology and help deliver a fundamental paradigm shift in NHS procurement," Lawson said during the panel discussion.
The change aligns with commitments outlined in the government’s 10 Year Plan for the NHS, which stated, "The NHS has mixed up its priorities when it comes to buying things. It has bought goods and services as if everything were a basic, interchangeable item, where only price matters. This means the NHS has focused too much on lowest cost, rather than best value and outcomes." While there is pressure within the health service to reduce short-term costs—a factor acknowledged as potentially increasing long-term spending—there is ministerial-level commitment behind implementing this change.
Lawson also indicated that Scotland and Wales are monitoring developments closely and have engaged with English counterparts regarding future adoption of similar models. The team responsible for delivering recent pilot projects using this methodology will continue their work for another three years to further develop it.
Chris Whitehouse from Whitehouse Communications commented at Med-Tech Expo that while this new model is not "a panacea for all procurement ills," it represents an important step toward shifting focus from price alone to broader measures of value within NHS purchasing decisions.
