Public procurement is the acquisition of goods and services on behalf of a public authority like a government agency, or other bodies such as hospitals and other healthcare providers. A large part of Europe’s medical technologies are purchased using procurement processes.
Public procurement is regulated at EU level and the latest update of the EU’s Public Procurement Directive, which came into force in April 2014, is currently being transposed. One of the key changes introduced by the revised directive is an increased focus on the MEAT (Most Economically Advantageous Tendering) criterion, which encourages public authorities to put more emphasis on quality, life-cycle costing, cost-effectiveness, and further societal benefits.
MedTech Europe and Procurement
There are several challenges for the medtech industry regarding procurement processes, which tend to increasingly focus on price only and do not take into account the value of a medical technology. This is challenging for medtech companies, who are mainly SMEs and innovation-driven with rapid lifecycles.
MedTech Europe actively engages in many procurement initiatives. We are defining a specific approach for public procurement in the EU, which focuses on value-based procurement as the way forward for the most economically advantageous tendering.
MedTech Europe is also promoting key principles for “smart procurement”, meaning procurement processes that recognise and reward innovation. Poor procurement processes risk endangering incentives to investments in new technology and could mean patients are denied the best available treatments.
Procurement has an increased role to play to support the sustainability of healthcare systems while ensuring an optimal outcome for patients, institutions, health systems, the society and the economy. MedTech Europe and the Boston Consulting Group (BCG) are currently working with procurement experts to develop such a framework for use in healthcare procurement. Please click here to read the first joint report by BCG and MedTech Europe presenting the new framework and explaining how value-base procurement can help make value-based healthcare a reality in Europe.
MedTech Europe is also actively engaged in international initiatives on innovative procurement.
Value-Based Procurement: can the industry just “wait and see?”, by Eszter Kacskovics, Public Affairs Director SCA Hygiene Products, Incontinence Care Europe
Can we repair Europe’s healthcare systems through value-based procurement?, by Robert McGregor,Project Leader at The Boston Consulting Group's Zurich office and Yves Verboven Director Market Access and Economic Policies MedTech Europe
Big picture thinking can save money, by Kjetil Marius Istad, Director of Procurement and Logistics at Helse Sør-Øst RHF
Shift to value-based procurement must come from the top, by Gunnar Goblirsch, Head of a Unit at Stockholm County Council
Value-Based Procurement: The New Healthcare Imperative, by Dr. Gabriela Prada, Director, Health Innovation, Policy and Evaluation at The Conference Board of Canada
Can the EU directive on public procurement encourage value-based procurement in healthcare?, by Caroline HobsonPartner, Competition at CMS London
How Public Procurement can Drive More Sustainable Healthcare, by Dominika Domanska, Sustainability & Engagement Manager at Johnson & Johnson