How the NHS 10 Year Health Plan is Redefining Procurement
The 10 Year Health Plan for England signals a major shift not only in how care is delivered and where but also in how the NHS procures equipment, digital tools, services and supplies. For procurement teams, supply chain managers and suppliers, this represents a transformation.
From Cost Driven Buying to Value Based Procurement
One of the clearest changes is the move away from procurement decisions based solely on cost towards a value based model. Decisions about medical technology, devices, diagnostics and digital tools will be guided by long term value including patient outcomes, safety, total cost over care pathways and innovation potential.
This should lead to increased demand for suppliers who can show robust evidence of clinical effectiveness and long term value, a reduction in procurement of commodity goods in favor of smart, future proofed technologies, and longer term supplier partnerships rather than frequent one off purchases.
Procurement Supporting the Shift from Hospital Based to Community and Neighbourhood Care
The plan commits to moving much care out of hospitals and into community settings and neighborhood level services. This has major supply chain implications.
Procurement teams will need to source and supply equipment, diagnostics and consumables tailored for community clinics, GP linked services or outpatient settings rather than traditional hospital wards. Planning will need to account for a more distributed logistics model with more delivery points, smaller shipments and possibly decentralized stockholding. Suppliers who are agile and can respond quickly to varied demand will be essential.
Procurement Now Means Sustainability, Social Value and Ethical Supply
Another core pillar of the plan is the growing importance of sustainability, social value and ethical supply. The NHS intends to use procurement as a lever for environmental and social responsibility.
Suppliers will be expected to meet criteria such as reducing carbon emissions, demonstrating social value through local economic benefit and ethical labour practices, and ensuring transparency across the supply chain. Procurement teams must assess and score suppliers on sustainability, social impact and supply chain ethics alongside cost and clinical suitability.
Opportunities for Innovation, Digital Health and Strategic Supplier Partnerships
The plan encourages a shift to digital systems, preventive care and community based services, creating opportunities for suppliers of medical technology, health technology, diagnostics, remote care tools and digital platforms. Procurement teams will need to run frameworks or pilot schemes for new products and work closely with suppliers in strategic partnerships focused on outcomes, sustainability and efficiency. Integrated systems will enable better forecasting, tracking usage and outcomes, and making procurement decisions that support long term NHS strategy.
What This Means for Procurement Teams and Suppliers
Procurement professionals will need to shift from price focused to value focused decision making, considering patient outcomes, long term costs, sustainability and system wide benefit. Suppliers will need to provide evidence, sustainability credentials and willingness to engage in long term partnerships. Supply chain infrastructure is changing with decentralised logistics and integrated digital platforms. There are opportunities for innovation for health technology suppliers, sustainable goods suppliers and responsive logistics providers.
Conclusion
With the 10 Year Health Plan, the NHS is reimagining procurement and supply chain as strategic levers rather than back office operations. Procurement teams will need agility, vision and readiness to work differently. Suppliers have the opportunity to build meaningful, long term relationships if they meet the new standards of value, sustainability and innovation. The plan changes not just what the NHS buys but how it buys, making procurement central to delivering the NHS of tomorrow.