Value-Based Procurement in the NHS: From Cost to Collaboration

Discover how NHS procurement teams can deliver real value through Value-Based Procurement. Learn how to measure outcomes, collaborate with suppliers and clinicians, and improve patient care while driving system efficiency.

Introduction

Procurement in the NHS is evolving. Traditionally, success was measured by achieving the lowest price. Today, the focus is shifting towards Value-Based Procurement (VBP) — an approach that prioritises patient outcomes, system efficiency, and sustainability alongside cost.
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For NHS procurement professionals, understanding and implementing VBP is critical to delivering measurable impact and supporting the NHS’s long-term strategic goals.

What Is Value-Based Procurement (VBP)?

Value-Based Procurement goes beyond price. It evaluates procurement decisions based on the overall value delivered, which includes:
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• Patient outcomes: Does the product or service improve care and treatment success?
• System efficiency: Does it reduce operational waste and improve workflow?
• Sustainability and social impact: Does it contribute to NHS Net Zero and social responsibility goals?

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By adopting VBP, NHS procurement teams make decisions that improve long-term outcomes for patients, staff, and the health system.

Why Measuring Value Matters in NHS Procurement

While cost is easy to quantify, value is multifaceted. NHS procurement teams face the challenge of measuring the impact of their decisions. Some approaches include:
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• Clinical effectiveness metrics: Tracking improved treatment success rates with new devices or services.
• Operational efficiency indicators: Evaluating time or resource savings.
• Sustainability metrics: Assessing carbon reduction, waste reduction, or social impact.

Tools like the NHS Spend Comparison Service and the Value-Based Procurement framework help teams capture these metrics and integrate them into procurement decisions.

Collaboration: Key to Delivering Value

True Value-Based Procurement is collaborative. Procurement teams, clinicians, and suppliers must work together to define shared goals and deliver impact beyond price.
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Practical strategies for collaboration include:
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• Early supplier engagement: Encouraging innovative solutions before specifications are finalised.
• Cross-functional committees: Bringing clinicians and procurement teams together to assess value.
• Data-driven decisions: Using performance metrics to co-create solutions that improve patient care.

When procurement is treated as a partnership, NHS teams can deliver outcomes that truly matter.

Implementing Value-Based Procurement in Your NHS Organisation

Steps to embed VBP in your procurement process:
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1. Define “value” in your context: Consider patient outcomes, efficiency, and sustainability.
   
2. Set measurable indicators: Use quantitative and qualitative metrics.
   
3. Engage clinicians and suppliers early: Collaboration at the planning stage drives innovation.
4. Review and refine: Continuously evaluate procurement impact and share lessons across Trusts and ICSs.

The Future of NHS Procurement

Value-Based Procurement represents a strategic shift for NHS procurement teams — moving from cost-saving to outcome-driven decision-making.

​By focusing on collaboration, innovation, and measurable impact, procurement professionals can:
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• Improve patient outcomes
• Support system efficiency
• Contribute to sustainability and social impact goals

Stop buying. Start delivering value.
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Conclusion: Let’s Continue the Conversation

​Are you an NHS procurement professional?

​How is your team embedding Value-Based Procurement in your organisation?

Share your insights and experiences — collaboration is key to delivering better outcomes for patients and the system.

About the author 

Naomi Clews

Naomi Clews is a NHS procurement professional with over twenty years of NHS Procurement experience. Find out more here.