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NHSSC outlines future pricing reforms for suppliers

NHSSC outlines future pricing reforms for suppliers

The latest NHS Supply Chain (NHSSC) supplier webinar, held on 1 July 2026, provided further detail on the future Single Transacted National Price (STNP) programme, alongside updates on value-based procurement (VBP), clinical evidence requirements, and sustainability.

The webinar also reinforced expectations around value-based procurement and robust clinical evidence to support procurement decisions.

Single Transacted National Price update

NHSSC provided further detail on its STNP programme, which forms part of the Commercial Transformation Programme’s Pricing Simplification project and will be introduced progressively as part of NHS Supply Chain 2030.

The proposed model will see all transacted frameworks move towards a single national buy price for each product, supported by new national value mechanisms designed to aggregate commitments across the NHS and maximise value. Centrally funded customers would access the same national sell price, removing customer-specific pricing tiers, banding, and additional discounts, while price variation would remain only for non-centrally funded customers where centrally determined margins apply.

Suppliers would be expected to support the transition by moving away from negotiating customer-specific discounts and rebates for NHS Supply Chain sales. Incentive schemes would instead be managed centrally, while frameworks unable to support STNP may, by exception, transition to a non-transacted (direct) procurement route.

NHSSC said pricing simplification aims to improve transparency, reduce administrative complexity, and create a more predictable pricing environment, allowing both suppliers and NHSSC to focus more on innovation, product development, and delivering value to the NHS.

Implementation will be gradual. In the short term, the National Value Programme will continue to optimise existing National Pricing Matrices (NPMs), including removing some where appropriate. Over time, new pricing mechanisms will replace NPMs and Market Basket Management Strategies (MBMS) as frameworks are renewed, enabling full adoption of STNP. NHSSC also confirmed it does not intend to return to commitment discounts or direct rebates as part of the new approach.

Demonstrating value beyond price

Value-based procurement (VBP) remains a key focus for NHSSC. As outlined in BHTA’s previous article on the new NHS value-based procurement guidance, suppliers are increasingly expected to demonstrate value across six domains: social value, efficiency, patient and staff outcomes, supply chain resilience, purpose, and whole-life cost.

The webinar highlighted a significant change in how supplier responses are evaluated. Rather than relying on pass/fail or yes/no assessments, procurement exercises will increasingly use scored, text-based responses to assess the strength of each submission. Meeting the minimum requirement is now considered the starting point, with suppliers expected to explain and evidence how their solution delivers greater quality and value than competing offers.

NHSSC also confirmed that VBP extends beyond contract award. Commitments made during the procurement process become part of the long-term offer, with value monitored and measured throughout the life of the contract. The same value criteria may also be applied during call-off competitions and further competitions under framework agreements.

Clinical evidence remains fundamental

NHSSC reiterated that clinical evidence plays a vital role in supporting product assessments and NHS procurement decisions.

Suppliers were reminded that evidence should, wherever possible, be published in peer-reviewed journals. Where evidence is based on case studies or case reports, NHSSC said research from the UK or comparable healthcare systems, including France, Denmark, Canada, and Australia, is particularly valuable. Larger international studies can also strengthen submissions where they have been published internationally or presented at recognised conferences.

NHSSC also highlighted guidance from the National Institute for Health and Care Excellence (NICE), which states that clinical evidence should be relevant to the evaluation, transparently reported, systematically assembled, and analysed using robust methods that minimise bias. NICE also recommends clearly justifying the selection of outcomes, resource use, and costs within the evidence base.

Suppliers were encouraged to focus evidence on the specific product being submitted, move beyond marketing claims, clearly explain the problem the product is intended to solve, and use evidence relating to the current product rather than previous generations. NHSSC also advised against relying on generic therapy-area evidence or evidence from unrelated products to support claims.

Sustainability

The webinar concluded with a brief update on sustainability requirements.

NHSSC confirmed it is reviewing NHS England’s updated 2027 Net Zero supplier requirements to determine how they will be implemented operationally. No further detail was provided, although suppliers were advised that further updates will follow as this work progresses.

New NHS value-based procurement guidance: What BHTA members need to know

New NHS value-based procurement guidance: What BHTA members need to know

The Department of Health and Social Care (DHSC) has published its new ‘Value-Based Procurement National Standard Guidance for Medical Technology’, setting out a national approach for how NHS organisations should evaluate medical technology and healthcare equipment.

The guidance marks a notable shift away from procurement decisions based mainly on purchase price. Instead, NHS buyers are being encouraged to consider the wider value that products and services deliver across the health and care system.

A wider view of value

The guidance introduces a standardised approach to value-based procurement for medical technology. Its purpose is to help NHS organisations assess the full impact of a product, including benefits for patients, staff, services, sustainability, and supply chain resilience.

For suppliers of healthcare equipment into the NHS, this means tender responses are likely to place greater emphasis on evidence of outcomes, efficiency, and long-term value, rather than relying primarily on upfront cost comparisons.

How the framework works

The framework is built around five value domains, alongside whole life cost. The five value domains are used to assess the wider value of a product or service, while whole life cost assesses the cost of the product across its lifecycle.

The framework can be summarised as follows:

  • Social value – generates wider social and environmental benefits
  • Efficiency – improves the patient pathway
  • Patient and staff – supports patient experience and safety
  • Supply chain – has a resilient supply chain
  • Purpose – meets the specification
  • Whole life cost – includes the purchase cost and post-warranty support costs where relevant

The five value domains combined should account for a minimum of 60% of the overall evaluation score. Within this, social value must account for at least 10% of the total weighting.

Whole life cost should account for a maximum of 40% of the evaluation score.

NHS VBP guidance - The 5 value domains and whole life cost image
The 5 value domains and whole life cost

The five value domains

NHS buyers should select the domains that are most relevant to the medical technology being procured. For suppliers, this means bid materials may need to map product and service evidence clearly against the relevant domains.

Social value

This domain assesses the wider social and environmental benefits generated by a product or service, including carbon reduction, sustainability initiatives, ethical sourcing, and support for NHS net zero ambitions.

Efficiency

Efficiency focuses on improvements to the patient pathway and healthcare productivity. This could include reduced procedure times, shorter hospital stays, increased capacity, reduced waiting lists, or improved clinical workflow.

Patient and staff

This domain considers how technologies support patient experience, patient safety, and workforce wellbeing. Evidence of improved outcomes, reduced risk, better usability, and enhanced staff experience will be increasingly important.

Supply chain

The NHS will assess the resilience of suppliers’ supply chains, including business continuity arrangements, stock availability, risk management processes, and continuity of supply during periods of disruption.

Purpose

This domain evaluates whether a product meets the required specification and performs effectively in its intended setting. Functionality, usability, interoperability, and overall fitness for purpose will all be considered.

Whole life cost

Alongside the five value domains, the guidance places strong emphasis on whole life cost (WLC).

Whole life cost goes beyond the initial purchase price and includes factors such as:

  • Purchase costs
  • Maintenance and servicing
  • Consumables
  • Training requirements
  • Support costs
  • Post-warranty support costs, where relevant

This approach recognises that a product with a higher upfront price may offer stronger overall value if it reduces maintenance needs, improves efficiency, minimises complications, or delivers a longer operational lifespan. For suppliers, clear information on lifecycle costs may therefore become an important part of demonstrating value in NHS tender submissions.

Proportionate procurement and bidder requirements

The guidance states that buyers should select only those value domains and evaluation questions that are relevant to the medical technology being procured. The assessment process should be proportionate to the cost, nature, and complexity of the requirement.

For example, where products are available from small and medium-sized enterprises (SMEs), buyers may choose to use a smaller number of evaluation questions or social value outcomes to reduce the burden on bidders.

Where questions or social value outcomes are used, buyers should provide clear guidance, definitions, scoring methodologies, and sufficient time and information to enable bidders to respond effectively. This may make well-structured evidence, real-world data, case studies, sustainability metrics, and supply chain information increasingly important for suppliers responding to NHS tenders.

Read the full value-based procurement guidance here.

What is the MedTech Compass, and what does it mean for suppliers?

What is the MedTech Compass, and what does it mean for suppliers?

The Department of Health and Social Care (DHSC) is developing a new initiative known as the MedTech Compass, designed to support more effective and consistent procurement decisions across the NHS. While still in development, the MedTech Compass represents a move towards a more streamlined, value-focused approach to how medical technologies are assessed and adopted.

Here’s what BHTA members need to know about the MedTech Compass.

What is the MedTech Compass?

At its core, the MedTech Compass is intended to enable smarter procurement decisions by allowing NHS organisations to compare products side by side based on value rather than price alone. It is designed so that a single set of supplier data can be submitted once and reused across multiple procurement processes.

This approach aims to support more consistent and transparent decision-making, reduce duplication across NHS procurement, and improve efficiency for both suppliers and buyers. The MedTech Compass has been described as a comparison-style tool, intended to support procurement teams and clinicians in making more informed choices.

When is the MedTech Compass expected to be introduced?

The MedTech Compass is currently progressing through its development phases. The programme began with a discovery phase to assess user needs and market challenges. This has been followed by the alpha phase (November 2025 to March 2026), where concepts are being tested through a prototype. A beta phase is expected during the 2026/27 financial year to build and test the full system, followed by a live service rollout across the NHS in 2027/28.

The alpha phase has recently passed a Government Digital Service assessment with a Green rating. DHSC is expected to progress to procurement for the beta phase through an Invitation to Tender, with the beta likely to begin in summer 2026 and run for approximately 12 months.

What will the MedTech Compass mean for suppliers?

For suppliers, the MedTech Compass has the potential to reduce administrative burden and simplify engagement with NHS procurement.

By enabling a “submit once, use many times” approach to data, it should reduce the need to repeatedly provide the same information across different procurement exercises, improve clarity around requirements, and support more predictable and consistent evaluation criteria.

At the same time, suppliers will need to ensure that their product data is comprehensive, accurate, and aligned with the value-based metrics the MedTech Compass is expected to prioritise.

How will the MedTech Compass be used?

The MedTech Compass is intended to support NHS procurement teams and clinicians by providing a structured way to assess and compare technologies.

Rather than focusing solely on price, the system is expected to incorporate a broader definition of value, including factors such as clinical outcomes, system efficiency, and wider benefits to the healthcare system.

By standardising how information is presented and assessed, the MedTech Compass aims to reduce variation across organisations and support faster, more consistent decision-making.

For additional context on wider medtech policy developments, members can read our previous article on the MedTech Strategy and DHSC initiatives.

Complete the DHSC value-based procurement survey

Complete the DHSC value-based procurement survey

BHTA members involved in NHS tenders are encouraged to take part in a Department of Health and Social Care (DHSC) industry readiness survey on value-based procurement (VBP).

This survey provides an opportunity for companies across the health technology sector to share their perspectives and help shape how VBP is implemented across the NHS in England.

Why this matters

Value-based procurement shifts the focus from reducing product costs to delivering better outcomes and lowering total costs across the patient pathway.

NHS Supply Chain is working with the NHS and industry to apply this approach in practice, aiming to improve efficiency, reduce waste, and deliver measurable benefits such as increased productivity, reduced infection rates, and improved patient outcomes.

The approach also supports closer collaboration between suppliers, procurement teams, and healthcare providers, with a focus on delivering long-term value to the health system.

More information on VBP can be found in this BHTA article.

About the survey

DHSC has developed national VBP standard guidance, currently being piloted by 13 NHS Trusts, with publication expected in summer 2026.

The survey has been designed to assess industry readiness and understand organisational attitudes towards VBP. Findings will inform DHSC’s implementation plans and support the transition to value-based approaches across the NHS.

It asks organisations to provide:

  • Company and sector information
  • Levels of awareness of VBP and the guidance
  • Current preparedness and actions being taken
  • Views on support needed from government
  • Perspectives on key success factors
  • Additional feedback to inform policy development

Responses are confidential and will not be shared with third parties.

Complete the survey

  • Time to complete: approximately 10 minutes
  • Response requirement: one response per company
  • Deadline: 5pm on 27 March

Relevant members are encouraged to submit a response before the deadline via the value-based procurement survey.

Members involved in NHS tenders or expecting to be impacted by changes to procurement frameworks are particularly encouraged to participate.

DHSC and NHSE invite industry feedback on the new MedTech Commercial & Growth Strategy

DHSC and NHSE invite industry feedback on the new MedTech Commercial & Growth Strategy

The Department of Health and Social Care (DHSC) and NHS England (NHSE) are developing a new MedTech Commercial & Growth Strategy to bring greater cohesion, efficiency, and innovation to the way the NHS buys and uses medical technology.

During a recent industry webinar, representatives from DHSC and NHSE outlined the aims of the strategy and emphasised the need for input from across the MedTech industry – including BHTA members – to help shape its development.

Addressing fragmentation in the medtech landscape

The NHS currently spends around £13 billion annually on medtech across six key categories: medical consumables, implants, equipment, pathology, and medtech digital systems. However, procurement remains fragmented, with duplication of effort, inconsistent standards, and missed opportunities for innovation.

The proposed strategy aims to bring commercial cohesion to this environment by aligning national and local procurement approaches, reducing duplication, and creating efficiencies that benefit both the health service and suppliers. This approach also supports key national frameworks, including the NHS 10-Year Health Plan and the Life Sciences Sector Plan, both of which prioritise innovation and improved patient outcomes.

MedTech Commercial & Growth Strategy roadmap image
The MedTech Commercial & Growth Strategy is currently in the ‘Discover’ phase

What the strategy seeks to achieve

The MedTech Commercial & Growth Strategy is designed to:

  • Reduce the fragmented buying environment and deliver clear, consistent category approaches that optimise spend and encourage innovation.
  • Drive value-based procurement by prioritising outcomes and whole-pathway benefits over lowest-cost decisions.
  • Establish a unified commercial framework that makes it easier for suppliers to engage with the NHS.
  • Position medtech as a strategic driver for UK growth, supporting national economic priorities.

To deliver these objectives, DHSC and NHSE are developing three core outputs:

  1. An overarching commercial strategy – analysing challenges and opportunities across the medtech sector.
  2. Sub-category plans – covering major areas of spend with tailored approaches to procurement, innovation, and market engagement.
  3. An implementation plan – outlining governance, timelines, and actions to bring the strategy to life.

Collaboration across the system

The programme is being developed collaboratively by DHSC, NHS England, and NHS Supply Chain, with input from industry partners and clinical experts. Dedicated sub-category teams – covering consumables, implants and devices, equipment, and medtech digital – will be supported by commercial and clinical experts from across the system, ensuring the strategy reflects the realities of front-line delivery.

MedTech Commercial & Growth Strategy whole NHS system collaboration image
The MedTech Commercial & Growth Strategy is being developed collaboratively across the whole NHS system

BHTA was recognised in the webinar as a key trade association engaging with the programme, underlining the association’s central role in ensuring that members’ insights inform policy decisions.

How BHTA members can contribute

The DHSC and NHSE are currently in the discovery phase, seeking to understand suppliers’ experiences, challenges, and opportunities through direct feedback. This engagement will help identify practical ways to improve procurement consistency, simplify market access, and accelerate adoption of innovative technologies.

BHTA members are strongly encouraged to share their views by completing the supplier feedback survey before 6 March 2026. Feedback from this survey will directly inform the next phase of the strategy’s development, including detailed category plans and pilot initiatives.

Complete the supplier feedback survey here.  

BHTA encourages all members to contribute their feedback to ensure that the final strategy delivers tangible benefits for both the industry and patients. Members’ insights will help shape a more efficient, transparent, and innovation-friendly medtech environment across the NHS.

In addition, NHSE and DHSC are running the same MedTech Commercial & Growth Strategy industry webinar again on 10 March for suppliers who were unable the recent webinar. Members can register for this webinar here.