Procuring for outcomes, a different approach

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New Approaches for
Procuring Effective
Healthcare solution
Dr. Paul Davis

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Introduction
 The procurement of effective healthcare solutions is one of
most pressing public policy issues
 There is a need to balance sustainable health systems versus
limited budgets and dwindling public resources
 An informed focus on innovative, constantly evolving
technology procured with a full awareness of societal benefits
and healthcare outcomes is a critical factor in sourcing
successful healthcare solutions

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What is Value?
 Value is a holistic concept
 It covers all aspects of a technology’s expect impact on healthcare
outcomes
 It recognizes that financial , clinical and societal factors are
important features of a value assessment
 These features should always be on an equal footing with cost
factors

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Importance of Innovation in Public
Policy
 The pre-tender process is critical for designing the tender to
achieve this “value for money” outcome
 Tender design and decisions should always incorporate expert
medical input and careful evaluation of health economic data
 Conducting pre-procurement engagement can be used by way
of an ongoing interface with industry
 We should always seek the possibility of suppliers offering
innovative solutions so outcomes not costs need to be the
primary focus

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Importance of Innovation in Public
Policy
 Although Procuring for solutions is new and complex, it has
enormous potential to encourage the focus on innovation in
healthcare procurement
 The move away from the simple commodity provision to a
service model has to be seen as a priority for our health system
 In order to support this move, the use of value based award
criteria should be routine in medical device procurement
 The relative weightings of cost and non cost criteria should be
such that cost is the lesser criteria in all cases

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Next Steps
 Appoint Procurement Committees
 Standardize Medical Technology Evaluation
 Facilitate and Adopt Innovation