NHS shifts procurement strategy: Can value-based medical technology investment reduce waiting lists?

The National Health Service (NHS) has announced a fundamental change in how it purchases medical technology, marking a decisive move away from the traditional “cheapest-first” procurement method to a new “patient-first” approach. This strategy, which forms a central part of the government’s Plan for Change, is intended to cut waiting lists, improve patient safety, and deliver sustainable long-term savings. NHS England spends about £10 billion every year on medical technology, and the government believes rethinking the procurement model can significantly improve outcomes for patients while saving taxpayers money over time.

How is the NHS reshaping procurement priorities to focus on value, patient outcomes, and long-term savings?

For decades, medical technology purchases within the NHS were often determined primarily by cost, with the cheapest available options chosen to stretch limited budgets. While this approach provided short-term relief, it frequently ignored wider factors such as long-term performance, patient safety, and overall healthcare costs. The new guidelines represent a pivot toward value-based procurement, where the emphasis is placed on the effectiveness of medical devices, their contribution to patient safety, and their ability to deliver measurable outcomes across the full treatment pathway.

Government data suggests the benefits of this change are already materialising. Productivity across acute trusts rose by 2.7% between April 2024 and March 2025, surpassing the 2% annual improvement target outlined in the 10-Year Health Plan. These gains have been attributed not only to technology adoption but also to a range of systemic improvements, including shorter hospital stays, more same-day discharges, reduced reliance on agency staff, and higher staff retention rates.

Health Minister Zubir Ahmed, visiting Barts Health NHS Trust on September 25, explained that the Plan for Change was designed to make taxpayer money “work harder than ever before.” By investing in effective medical technologies rather than focusing narrowly on upfront cost, the NHS aims to deliver better patient outcomes, reduce waiting times, and build an operationally stronger healthcare system.

What evidence from NHS Trust pilots demonstrates the benefits of value-based medical technology procurement?

Examples from NHS Trusts show the potential of patient-first procurement. At Barts Health NHS Trust, clinicians trialled an innovative mesh in high-risk cardiology patients. Despite a higher initial price, the product significantly reduced infection rates, lowered hospital readmissions, and generated savings of more than £1,100 per patient per year. For the Trust, that translated into around £103,000 in annual savings, demonstrating that spending more upfront can reduce downstream costs while improving care.

University Hospitals of Leicester NHS Trust piloted another form of innovative technology, using small implanted electronic devices to monitor and regulate irregular or dangerous heart rhythms. While the devices cost between £500 and £600 per patient, their impact was dramatic. Hospitalisations fell by 43%, and clinical follow-up times were reduced, allowing doctors to treat more patients without increasing staff numbers.

NHS managers argue that these cases show how prioritising value over cost can help reduce pressure on the system, freeing up resources and enabling hospitals to meet increasing patient demand more efficiently.

How will the NHS implement value-based procurement across the health system in the coming years?

The Department of Health and Social Care and NHS England have confirmed that 13 Trusts will pilot the new procurement guidance before it is rolled out nationwide in early 2026. The pilots involve collaboration with NHS Supply Chain and the NHS London Procurement Partnership, focusing on areas such as cardiology, vascular treatment, and the application of artificial intelligence in clinical practice. NHS Supply Chain’s Cardiology and Vascular Framework, valued at about £1 billion, is expected to be a key testing ground for the approach.

Andrew New, Chief Executive of NHS Supply Chain, said procurement decisions would now be based on patient outcomes, sustainability, and the overall cost of care rather than the sticker price of a single device. He added that standardising procurement practices makes it easier for suppliers to engage with the NHS, allowing innovation to reach the frontline more quickly.

Lee Joseph, Managing Director of the NHS London Procurement Partnership, described the programme as a “watershed moment” in NHS commercial innovation. He stressed that involving suppliers in the ownership of patient outcomes would improve accountability and accelerate the delivery of effective medical technology.

Why does industry collaboration and regulatory alignment matter for expanding access to medical technology?

Historically, the absence of standard procurement guidance made it difficult for medical technology suppliers to do business with the NHS. Inconsistent requirements across Trusts often delayed adoption and discouraged investment. The new guidelines aim to resolve this by creating a uniform framework that prioritises clinical and economic value. Fiona Bride, Interim Chief Commercial Officer at NHS England, said that value-based procurement had already transformed the way medicines were purchased and would now do the same for devices and diagnostics.

This shift dovetails with broader government ambitions to strengthen the UK life sciences sector. Officials argue that aligning procurement with innovation not only improves patient care but also supports economic growth, attracts global medical technology firms, and speeds up the time it takes for patients to access new devices. In practice, this means the NHS is positioning itself as both a healthcare provider and a driver of industrial strategy.

How are investors, analysts, and healthcare stakeholders evaluating the NHS move from cheapest-first to value-based procurement of medical technology?

Institutional sentiment has been broadly positive, with analysts and healthcare policy experts viewing the move as a structural reform that strengthens the NHS’s long-term financial and operational position. Investors suggest that suppliers capable of demonstrating measurable outcomes and long-term value will benefit most under the new framework, while firms competing solely on price may face declining opportunities.

For the NHS, the model offers predictable demand for high-quality technology and reduces volatility in procurement. Analysts point out that the scale of NHS spending on medical technology — around £10 billion annually — makes it a highly influential buyer. By adopting value-based standards, the NHS could set benchmarks that ripple across global healthcare systems, influencing procurement practices in Europe and beyond.

What are the long-term implications for waiting lists, patient safety, and the overall productivity of the NHS?

The government’s central argument is that effective technology can help manage waiting lists by reducing the need for repeat procedures, preventing hospital-acquired infections, and enabling faster, more accurate diagnostics. These efficiencies free up staff time and hospital capacity, which in turn allows the NHS to treat more patients. For example, technologies that shorten hospital stays can open beds for new admissions, while remote monitoring devices reduce the need for follow-up visits, allowing doctors to allocate time more strategically.

Market observers believe that if implemented consistently across Trusts, value-based procurement could mark a step-change in NHS productivity. It could reduce reliance on agency staff, stabilise workforce planning, and accelerate patient access to the newest medical technologies. While challenges remain in scaling the approach and ensuring financial discipline, the broader consensus is that the initiative positions the NHS as a leader in global healthcare reform.