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.
A new NHS Institute of Innovation & Improvement was launched on 1 July 2005, with a budget of £80 million for 2005/06.
The Institute will encourage modernisation, innovation and learning in the NHS. It will also 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. Austrade is currently working with this group to assist Australian companies obtain valuable evaluations of their products.
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.
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 is 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.
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.
Austrade is making considerable effort to give medical devices and systems companies access to this market to improve care for patients and service users.