Baroness Merron speaking at Parliament and HealthTech 2025 (Image provided by Jordan Sollof)
Guidance to simplify the procurement of health technology is being tested by NHS trusts and is expected to launch in 2025, according to Baroness Gillian Merron, health minister.
In a keynote speech at the Health Tech Alliance’s Parliament and HealthTech Conference, on 4 February 2025 in London, Baroness Merron said: “You know better than anyone that there are inconsistent and fragmented approaches in getting new tech for our health system, and this makes it especially difficult for startups to attract a government contract.
“Our vision is for the UK to become the world’s leading first market destination for cutting edge innovation, particularly small businesses that make up the majority of the medtech sector.
“In parallel, we also recognise the need to streamline what is a very complex procurement process for medtech and over the last 12 months, officials have been working with many of you in this room, from industry, patient groups, NHS, trusts and other system partners, to develop a methodology for value-based procurement.
“I’m delighted to say that the guidance is now ready to be tested by a number of volunteer NHS trusts across the country, with the aim of launching this year.”
Value-based procurement (VBP) is a procurement approach that delivers a reduction in the whole life costs of healthcare where value can be created from financial, efficiency, patient, and environmental benefits.
In May 2019, NHS Supply Chain launched a project to consider the potential benefits and practical application of VBP, which involved a series of pilot projects to test the concept in practice, with a view to producing a scalable model for potential wider deployment.
The Medical technology strategy: one year on, published under the Conservative government in April 2024, committed to launching a VBP methodology to provide central guidance on how VBP should be applied to support greater consistency and reduce the burden to industry.
It says: “This is to ensure a consistent approach is applied for the procurement of medtech in which important factors such as the impact on the patient pathway, patient safety and productivity can be assessed.
The guidance includes a proposed passport model to enable a product to be assessed once centrally to simplify the procurement process for industry, avoiding additional burden for SMEs and supporting them in accessing and negotiating with the NHS.
Baroness Merron also said that AI will play “a critical role” in healthcare and the NHS and welcomed the government’s launch of the EDITH trial in February 2025, to test how AI tools can be used to detect cases of breast cancer.
“I believe that together, we have a tremendous opportunity to shape the future of medtech in this country and I hope that we will seize that opportunity with both hands,” she concluded.
In July 2024, Wes Streeting, health secretary, pledged that the Labour government will make Britain a “powerhouse for life sciences and medical technology“.