What Value‑Based Procurement Means for NHS Hospital Suppliers

Over the past year, “value‑based procurement” has become a hot topic in NHS strategy conversations. But what does it actually mean in practice — and how should suppliers prepare for this shift?

What is value based procurement?

Value‑based procurement moves beyond the lowest price per unit. Instead, it considers total long‑term value to the Trust or hospital: patient outcomes, service quality, sustainability, supplier reliability, and even training or maintenance aspects.
In concrete terms, a procurement team might choose a supplier with slightly higher unit cost, if that supplier offers better uptime, fewer product failures, or strong after‑sales support.

Why this matters of suppliers

For many SMEs supplying NHS hospitals, bidding has traditionally been about unit cost and being the “cheapest acceptable” supplier. Under a VBP mindset, this changes.
Suppliers that offer additional value now stand to win: for example—

• A consumables company that offers rapid replenishment service, training for clinical staff, or data on usage and waste reduction

• An equipment supplier whose device has demonstrably lower breakdown rate and includes remote service monitoring
  In other words: competitive advantage is less about being the cheapest, and more about being the most helpful.

How NHMS is approaching this

At NHMS, we believe the future of NHS supplies is built through partnership, not commoditisation. As we acquire and integrate suppliers, our aim is to build a platform where:

• Suppliers come with high‑quality compliance, service‑oriented models, and strong customer relationships

• We standardise the back‑office admin so our businesses can focus on value, not paperwork

• NHS procurement teams encounter fewer blind spots—one trusted partner rather than multiple minimal‑service vendors
  This approach means our suppliers are better positioned for a procurement environment increasingly focused on value‑for‑money, not just lowest price.