Value Based Procurement in MedTech
The Value Based Procurement (VBP) strategy places more emphasis on overall value than on cost when making procurement decisions. Instead of focusing solely on initial cost, which is typically equated to price, VBP focuses on how a product or solution may best provide desired outcomes, reduce the total cost of care, and give long-term benefits to all the stakeholders in the healthcare ecosystem. In contrast, standard procurement frequently prioritizes lowest cost. VBP, however, suggests examining several facets of value rather than concentrating exclusively on the product’s initial cost.