“…mechanisms such as centralised procurement can limit competition, thus limiting a true driver of more cost-efficiency. Our Industry does not oppose certain procurement mechanisms, but wants to ensure that they indeed ease budgetary pressure without jeopardising the benefits that our industry brings to people, society and healthcare systems” Luciano Cattani, Eucomed Chief Executive .
This is a really interesting and important piece, published last week by European medical device industry body Eucomed and referencing a piece of research commissioned to establish the potentially negative impact of cost-cutting and centralisation of procurement. Eucomed argues that what it calls smart procurement practices are the necessary countermeasure if we are to see new and effective technologies adopted as future components of affordable healthcare provision.
The full report can be found here, but the first paragraph reads as follows:
Appropriate procurement mechanisms, whereby small and medium sized enterprises (SMEs) have equal opportunities, innovation is stimulated, and Europe’s market attractiveness and competitiveness upheld, can contribute significantly towards sustainable European healthcare systems, with safe, more efficient innovations being available to more people. In a time of budgetary pressure, there is a growing tendency to focus on short-term cost-cutting. In light of this evolution, Eucomed, the European Medical Technology Industry Association, welcomes the results of a joint research project by ‘Simon-Kucher & Partners’ and the University of Twente into the impact of centralised procurement on Europe’s innovation potential, underlining the association’s position that only smart procurement processes which focus on the value of innovative technologies will lead to long-term sustainable health systems.