Our Priorities Environmental and Social Sustainability

Environmental & Social Value in Procurement

Environmental and social value picture

Public procurement can be a driver of value-based healthcare. Rather than focusing on price as the sole criteria selecting products and services, purchasing decisions should consider the overall value of technologies. In determining the value of devices, diagnostics, services and solutions, decision-makers can consider environmental impact metrics, along with clinical outcomes, patient satisfaction, population health and overall impact on the health system.

The EU Public Procurement Directive introduced the concept of lifecycle costing and encourages purchasing authorities to include both environmental and social criteria. MedTech Europe members engage with EU authorities, hospital and purchasing organizations to identify and integrate relevant sustainability criteria that can be included in public tenders. Sustainability attributes of products not only help reduce the environmental footprint of healthcare but also can bring economic savings and logistic benefits for the organizations – e.g. by reducing the cost of waste disposal, consuming less energy or taking less space for storage.

The EU Public Procurement Directive encourages purchasing authorities to move away from price-only criteria towards Most Economically Advantageous Tendering (MEAT). It introduces the concept of lifecycle costing to capture all impacts of the product – from sourcing to its end-of-life. Sustainability can be used both as a selection and awarding criteria in tenders. The former can be viewed as a basic set of requirements (e.g. sustainability reporting), the latter is seen as the basis for differentiation (e.g. weight of packaging, recyclable content, etc.).

See also

Learn more about how public procurement can be a driver of value-based healthcare by visiting the dedicated section on our website.

  • Value-based procurement

    Value-based procurement

    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.

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How Public Procurement can Drive More Sustainable Healthcare Picture
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How Public Procurement can Drive More Sustainable Healthcare

Posted on 21.09.2018