NHS procurement strategies ‘stifle’ development

The procurement strategies that currently operate in the NHS are stifling new medical development and damaging companies, according to the Association of British Healthcare Industries (ABHI).

It has supported the Conservative party’s calls to reform procurement to boost innovation to create a “dynamic market” that would be in the interests of both patients and businesses.

However, the government’s drive to reduce costs and centralise procurement may be harming the ability for medical technology companies to invent and research new products, the association said.

John Wilkinson, director general of the ABHI, stated in a letter to the Financial Times: “These companies have traditionally driven innovation in the sector, but are now being forced to cut research and development spending and look to overseas sales to survive.”

“Of course, less innovation in this industry can only be bad for patient care while UK businesses cannot hope to compete on volume with the multinationals,” he added.

Mr Wilkinson suggested creating a “level playing field” for UK companies that would like to sell in the NHS, necessitating the creation of a dynamic market.

Recently, UNISON, the healthcare union, warned the government’s use of private finance initiatives to provide hospital investment will prove to be costly due to company overcharging.

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