Our Priorities Access to Medical Technology

Value-Based Procurement

Male nurse pushing stretcher gurney bed in hospital corridor with doctors and senior female patient

Public procurement refers to the process by which public authorities, such as government departments, local authorities or public hospitals, purchase work, goods or services from companies. Approximately 70% of medical technologies are purchased through procurement.
An efficient (public) procurement environment is essential for all healthcare actors: the medical technology industry, patients, society and the health system in general. Better public procurement can help to reduce the pressure on health budgets in EU Member States, deliver better value, and foster the development of better-quality products and innovations.

MedTech Europe and its members are actively engaged in a range of procurement activities including:

  1. the promotion of key principles for “smart procurement” which are a prerequisite for creating an efficient procurement environment
  2. the development of a framework and tool to award the procurement of medical technologies whereby purchasing decisions are based on the holistic value of the medical technologies, services or solutions. This approach, known as the Most Economically Advantageous Tender (MEAT) Value-Based Procurement initiative, is in line with the new 2014/24/EU public procurement Directive the MEAT (Most Economically Advantageous Tender) criterion as defined in the Directive and the EU public procurement strategy
  3. active engagement in international initiatives on innovative procurement mechanisms and contracting
  4. monitoring EU-related matters and contributing to dialogue with policymakers, such as the European Commission

Procurement in Europe

The European Union is committed to encouraging smart procurement to foster sustainability and innovation. European public procurement directives address the way public authorities purchase goods, works and services. In April 2016, three new directives on procurement came into force, aiming to modernise procurement. Directive 2014/24/EU on public procurement emphasises the importance of value for money and quality, making .

Procurement practices in the health sector are specific to Member States. For example, the degree to which quality criteria and innovative procurement methods are used varies widely among .

In response, MedTech Europe monitors and, where possible, informs and contributes to public procurement initiatives and developments at EU level. MedTech Europe continuously raises awareness and advises member companies and national associations on procurement policy issues and on the latest developments at EU and Member State levels.

Smart procurement

Smart procurement processes incentivise investments in new technology and enhance patients’ access to the best available treatments. MedTech Europe promotes the key principles of smart procurement: procurement processes that recognise and reward innovations and that foster growth.

In response to the EU Public Procurement Directive calling for new methodologies to implement MEAT, MedTech Europe, procurement experts and the Boston Consulting Group jointly developed the MEAT Value-Based Procurement This initiative provides contracting authorities with a flexible and framework and practical tool for evaluating medical technologies and solutions, using award criteria that take a holistic approach. It includes outcomes that matter to patients, clinical evidence, cost of care delivery, benefits for the various health care actors, environmental and social sustainability, and wider economic and public health benefits.

The suggested framework promotes a new way of thinking while offering contracting authorities the flexibility required to suit their needs. This approach can deliver true value for health systems and better outcomes for patients while fostering technological innovation and investment in research.

To achieve its full potential, the shift towards MEAT Value-Based Procurement must be embraced by all players in healthcare, including contracting authorities, hospital management, health professionals and policymakers. Medtech Europe drives multiple initiatives to make this a reality.

The Directive is calling for the development of common methodologies for the  calculation of life-cycle costs; is this what you mean?

How to advance Value-Based Procurement

  • Healthcare providers can build multidisciplinary teams and include outcome and value criteria along with end-to-end costs in tenders in order to obtain most economic advantageous results; test the MEAT VBP approach via pilots; and share experiences
  • Policymakers can mandate a common view of value and consider the full patient care pathway; foster collaboration between providers and suppliers; and enable suppliers to be a partner for actively improving health and care using value to guide investment decisions
  • Healthcare professionals can engage with procurement experts to devise clinical outcome and use criteria of relevance to optimize care delivery for inclusion in value-based procurement
  • Patient groups can add their support for this patient-centred approach, and engage with local contracting authorities to ensure outcomes that matter to patients and informal care givers are included in tenders
  • Industry can advocate for MEAT VBP and invest in demonstrating the value of their technologies, services and solutions to patients, hospitals, contracting authorities and health systems as well as society.

MedTech Europe, by building out a value-based procurement community of practice and engaging in EU supporting actions to deploy value-based public procurement of innovative solutions, is playing its part in advancing procurement practices throughout Europe. Through a series of meetings with experts, pilots, collection and sharing of pilot experiences, and an online engagement tool, we are helping MEAT value-based procurement to become a reality.

Blogs

Blog

Want to transform healthcare? New EU investments in innovation procurement to make it a reality

Posted on 11.12.2018

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Want to transform healthcare? New EU investments in innovation procurement to make it a reality

Industry and the EU have long been supporters of research and innovation, but the big challenge comes in integrating valuable innovation into our health systems. EU has shown vision by the focus on quality in tenders and investment in professionalization and Procurement of innovative solutions which are an unexpected driver to a value driven health systems.

Value-Based Procurement: can the industry just “wait and see?” blog picture

Blog

Value-Based Procurement: can the industry just “wait and see?”

Posted on 04.12.2015

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Value-Based Procurement: can the industry just “wait and see?”

Earlier this year you could read about a new partnership between MedTech Europe and BCG where the aim was to define a framework for Most Economically Advantageous Tendering (MEAT) for the medical technology industry. Since then a few months have passed by, and I was really happy to see the first results of this partnership during the gathering of procurement officials in Lisbon end of September.

Value-Based Procurement: can the industry just “wait and see?” blog picture
Can we repair Europe’s health care systems through value-based procurement? Blog Picture

Blog

Can we repair Europe’s health care systems through value-based procurement?

Posted on 17.06.2015

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Can we repair Europe’s health care systems through value-based procurement?

MedTech Europe has partnered with The Boston Consulting Group to define a new framework for most economically advantageous tendering in medtech.

Can we repair Europe’s health care systems through value-based procurement? Blog Picture
Shift to value-based procurement must come from the top Blog Picture

Blog

Shift to value-based procurement must come from the top

Posted on 02.03.2016

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Shift to value-based procurement must come from the top

Procurement officials can play an important role in delivering better value for hospitals and healthcare systems. They can do this by doing what is most economically advantageous while simultaneously fostering innovations that benefits patients. However, they need a clear signal from management and policymakers encouraging them to think strategically.

Shift to value-based procurement must come from the top Blog Picture
Value-Based Procurement: The New Healthcare Imperative Blog Picture

Blog

Value-Based Procurement: The New Healthcare Imperative

Posted on 21.03.2016

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Value-Based Procurement: The New Healthcare Imperative

Despite heroic efforts to control healthcare costs, Canada is still among the countries with the highest healthcare expenditures. In 2013, Canada spent 10.2% of its GDP on healthcare, which was above the average for its peer OECD countries. Yet, the quality of healthcare services does not always match this level of investment. There are still great variations in healthcare quality across the country and, most importantly, Canada’s performance is weak on key indicators when compared with its peer countries. For example, as shown in the Conference Board of Canada’s latest How Canada Performs report card, Canada obtained “C”s for mortality due to cancer, mortality due to diabetes, mortality due to musculoskeletal diseases, and infant mortality. Canada’s health performance has dropped to 10th place from a much more enviable 5th place in the 1990s out of 17 peer countries.

Value-Based Procurement: The New Healthcare Imperative Blog Picture
Can the EU directive on public procurement encourage value-based procurement in healthcare? Blog Picture

Blog

Can the EU directive on public procurement encourage value-based procurement in healthcare?

Posted on 27.04.2016

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Can the EU directive on public procurement encourage value-based procurement in healthcare?

When the new EU Directive on public procurement was finalised in 2014, replacing the previous framework, it was hailed by the European Parliament as a tool for ensuring better quality of supplies and services and value for money. The European Parliament was also keen to emphasise how the Directive was designed to encourage innovation, improve SMEs’ access to public sector markets and to integrate environmental and social considerations into procurement policy.

Can the EU directive on public procurement encourage value-based procurement in healthcare? Blog Picture
How Public Procurement can Drive More Sustainable Healthcare Picture

Blog

How Public Procurement can Drive More Sustainable Healthcare

Posted on 21.09.2018

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How Public Procurement can Drive More Sustainable Healthcare

Who looks after human health – surgeon or public procurement official? The answer should be: both. The concept of Value Based Procurement helps us to explore the link between purchasing decisions and health.

How Public Procurement can Drive More Sustainable Healthcare Picture
Case study: testing a new framework for value-based procurement Blog Picture

Blog

Case study: testing a new framework for value-based procurement

Posted on 19.06.2018

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Case study: testing a new framework for value-based procurement

The EU Directive on public procurement came into force in Spain earlier this year. It opens the door to applying value-based healthcare in procurement and promises to be a driver of innovation in healthcare.

Case study: testing a new framework for value-based procurement Blog Picture
Value-based procurement: a users’ guide to improving outcomes and delivering efficiencies in the UK Blog Picture

Blog

Value-based procurement: a users’ guide to improving outcomes and delivering efficiencies in the UK

Posted on 23.05.2018

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Value-based procurement: a users’ guide to improving outcomes and delivering efficiencies in the UK

Health systems across the globe are faced with unprecedented challenges. Demand and patient expectations are rising while financial resources are diminishing. To respond to these trends, we need a new approach to how we manage healthcare.

Value-based procurement: a users’ guide to improving outcomes and delivering efficiencies in the UK Blog Picture
Health systems produce value for citizens, the economy and society Blog Picture

Blog

Health systems produce value for citizens, the economy and society

Posted on 10.06.2016

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Health systems produce value for citizens, the economy and society

Our health systems need reforms to maintain universal health coverage and, given the economic and demographic pressures we face, Europe cannot afford its citizens to be in poor health.

Health systems produce value for citizens, the economy and society Blog Picture