Taking health to task

The National Health Service (NHS) is one of the biggest customers of medical equipment and services in the world. The NHS spent approximately US$8.3 billion on health services and supplies alone in 2003.

Great news for companies wishing to set up a business in the UK.

Breaking into the market

Due to the size and complexity of the NHS, the reality is that it can sometimes be difficult for companies to gain access to this immense market.

Luckily the UK government is making considerable efforts to give medical devices and systems companies access to this market to improve care for patients and service users.

Government and industry partnership

In October 2003, an important initiative for the medical devices industry was launched.

The Healthcare Industries Task Force (HITF) created closer co-operation between government and health systems companies in a number of key areas.

The initiative resulted in the agreement of nine key outputs which, taken together, should mean that innovative companies with quality medical technologies and products can more easily do business with the NHS.

To find out more, see the HITF report Better health through partnership: a programme for action at www.advisorybodies.doh.gov.uk/hitf

A better service in evaluating medical products

The UK’s Device Evaluation Service (DES) has been redesigned.

Launched as the new Centre for Evidence-based Purchasing (CEP) on 1 September 2005, it is now part of the NHS Purchasing and Supply Agency (PaSA).

Its evaluation reports will be geared primarily to help purchasers and will include for the first time an assessment of value.

Stay up to date with what’s happening by visiting their website.

http://www.pasa.nhs.uk/evaluation/

Encouraging innovation in the NHS

A new NHS Institute of Innovation & Improvement was launched on 1 July 2005, with a budget of £80m for 2005/06.

The Institute will encourage modernisation, innovation and learning in the NHS.

The Institute will help companies bring useful new products to market and encourage their uptake by the NHS and social care services, leading to increased purchasing of beneficial new healthcare products, treatments and procedures.

Linking the NHS with the market

A section of the Institute called the National Innovation Centre (NIC) will focus on linking companies with appropriate partners – for example in clinical practice, academia or finance.

They will provide practical advice on how best to get innovative medical technologies and products taken up by the NHS.

The NIC will be based with the NHS Institute, on the campus of the University of Warwick but will operate as a network to benefit from the expertise that exists around the country.

Lisa Mynheer, Project Manager of DiagnOx, a company involved in offering services to the diagnostics industry, is optimistic that it will make a big difference.

“I work with start-ups, spin-outs and new technologies in the UK in medical diagnostics. One of the real problems for such companies is selling innovation and new products to the NHS – there is no easy mechanism…HITF will help us with this.”

http://www.institute.nhs.uk/

So how does the NHS obtain goods and services?

The NHS is made up of 249 hospital trusts. Trusts will usually purchase through NHS PASA or the NHS Logistics Agency. PASA’s job is to make the best use of NHS resources by ensuring value for money when purchasing.

PASA has been working to modernise purchasing procedures. They have been standardising contracts and purchasing procedures, and making suppliers’ information available electronically to all trusts in England.

Their purchasing staff are available to talk to suppliers about selling to the NHS. They provide specific help to small and new businesses too, via a helpdesk +44 11 8980 8841.

A device for future growth

While it is still early days, these and other initiatives promise a wealth of opportunities for companies in the sector.