Partnering for procurement success

There is a wealth of HealthTech innovators poised to help solve some of the NHS’ greatest challenges, yet getting a product or new technology adopted at scale in the NHS is far from straightforward.

In a recent ABHI member’s survey*, procurement was cited as one of the biggest barriers that innovators face, particularly those from small and medium-sized enterprises (SMEs). Over a third of respondents stated that they have opted not to bid on specific tenders as a result of unworkable procurement requirements.

Mike Kenny, Associate Director of Innovation and Industry Partnerships at Health Innovation North West Coast, and Luella Trickett, Executive Director at the Association for British HealthTech Industries (ABHI), share their tips on how building strong partnerships gives the best chance of success and the success that is available for anyone feeling daunted by the prospect of procurement.

Invest in pre-procurement engagement

Pre-procurement engagement with suppliers is essential to enable customers to understand what is feasible before going to tender. It can help you to understand what the market can deliver, and that incentives and indicators are aligned so you are driving towards the right and same thing. Early conversations and co-designing can stop both suppliers and customers from wasting their time. It can feel like an additional step on a very tall ladder, but in the long run will improve return on investment and pay back the time spent.

Think pathways, not products

It can be helpful to shift away from the emphasis being on a technology, or a product, but to look instead at the operating model and funding the pathway change instead as it might offer greater return on investment opportunities for your business case.

Procurement teams and clinical teams should work closely together when considering innovative technologies – and assess whether they are incremental, transformative or disruptive.

Clinical teams are experts in the pathway, and procurement teams agree experts in going to market for the right technologies. Both need to work together to develop the specification of whatever they are going to market for, which is especially important when bringing in innovations to transform pathways where there likely are not multiple existing examples to learn from. The more disruptive the technology, the more important it is to get the specification right for it, and for clinical teams to understand the implications of implementation and the amount of actual change of behaviours and process required.

Mapping out how an innovation might affect a pathway can be a vital step to demonstrate how and where it fits in. The Health Innovation Network are innovation implementation experts and can support with this mapping work – reach out to your local network if you would like some support in this area.

Take a value-based approach

When considering an innovation, it is important to think about the value that the innovation brings to the health system, clinicians and patients, not just the unit price of the innovation. The impact of HealthTech on productivity, efficiency and improving outcomes can be significant. This point has been recognised with Wales having had a value-based healthcare approach in place for a number of years and the NHS in England recently publishing a Value & Savings Methodology that indicates how non cashable savings can be valued. The Department of Health & Social Care has also issued a Value Based Methodology including questions to use in procurements to enable the non-cashable elements of an innovation to be assessed.

Procure a relationship

Successful partnerships emerge when you prioritise cultural fit, agility and relationship building. You can include criteria in tender documents to evaluate the cultural fit and agility of the organisation and include expected ways of working and measures to track this within contracts.

Through suppliers (and procurement and clinicians potentially “teaching” their colleagues) engaging with them to explain the value proposition, the potential for quality improvement and the opportunity for productivity gain (doing more with less effort and for less cost), will help to ensure that all those involved are bought in to the opportunity the technology presents, not fearful for the change.

Small steps in the right direction

We know from ABHI members that one of the biggest challenges is missing a new framework closing, and being subsequently locked out of the market for up to four years as a result.

The Dynamic Purchasing System (DPS) launched by NHS Supply Chain helps this, but only covers some areas. Also, for some SMEs the frameworks are increasingly enormous and have quite significant requirements when they may only be tendering for a small proportion.

In these cases, taking a strong partnership approach can often be the best way towards a successful procurement. It is never too early to start the procurement conversation – whether that is with potential partners or with supporting organisations, like the Health Innovation Network, who can help innovators with value propositions or mapping the impact of an innovation.

And if you’re not already aware of the changes being made to public procurement, it’s worth familiarising yourself with the new legislation which will take effect from October this year. The Procurement Bill received Royal Assent in October 2023 and will reform the existing Procurement Rules. It aims to create a simpler and more flexible commercial system, while opening up the process to new entrant such as small businesses and social enterprises. You can read more about the new legislation on the Government’s website.

There has never been a greater need for our healthcare system to transform, and we share the ambition to make the NHS a great place to innovate. It can feel daunting if you are at the start of your innovation journey, but there is help available to navigate the way forward.

For help and support with procurement contact your local Health Innovation Network.