Value-based procurement (VBP) evaluates potential new products, services and solutions based on value for money rather than the lowest purchase price. VBP evaluation criteria include benefits to patients, service providers, national health systems and health technology management teams. VBP also considers the total lifecycle costs of equipment (including installation, training, operation and disposal costs) rather than simply the initial equipment cost.
An estimated 40% to 70% of medical equipment in low- and middle-income countries is broken, unused or unfit for purpose (1). This failure impacts patient care, clinician workload, health system efficiency and health facility reputations. As health systems become increasingly strained by the COVID-19 pandemic, VBP can help ensure that appropriate medical equipment, including ventilators and laboratory equipment, are procured to meet the most urgent health needs.
Value-based procurement of medical equipment supports public sector procurement teams in resource-constrained health systems to implement a VBP approach when planning for and procuring new medical equipment.
Please review and comment on this guide. It has been reviewed and validated by key global procurement experts at PATH and other institutions. The guide draws upon earlier collaboration between the Indonesian Government Board for Public Procurement (LKPP) and the Access and Delivery Partnership in developing procurement practice for medical equipment and reflects guidance from WHO on integrating procurement into a Health Technology Management (HTM) strategy.
Whether you are a public procurement professional, program/facility manager, or biomedical engineer, we would like to hear from you at ADP@path.org.
Photo Cover: Laboratory worker uses the GeneXpert® system at the Kasumbalesa Centre de Santé, Democratic Republic of Congo. Photo by: PATH/Georgina Goodwin.
(1) Diaconu K, Chen YF, Cummins C, Jimenez Moyao G, Manaseki-Holland S, Lilford R. Methods for medical device and equipment procurement and prioritization within low- and middle-income countries: findings of a systematic literature review. Global Health. 2017;13(1):59.