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Rewriting the script
for public procurement

Why rewrite the script?

Evidence-based management

Evidence-based management

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Evidence-based medicine

Evidence-based policy making

Evidence-based procurement in health and social care

Challenges for evidence-based procurement in health and social care

Drivers of difference in procurement in health and social care

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Rewriting the script

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Conclusions

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A view of the procurement landscape

Overview of UK Medical
Device Sector 2006

Medical Technology in the UK

UK total healthcare and medtech spend as
a % of total healthcare spend is below benchmark average
(five countries)

Challenge

Productivity

Productivity and the five drivers of the economy
- Treasury*

Government’s Technology Strategy (4/06)

….Technology….

Wanless 1st/interim report
on technology

Wanless scenarios

…..and the predicted spend – less is more!

No obvious plan ….certainly not on track

Assumptions….

Top down?

Bottom up?

The landscape now…

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The landscape now…

A widely accepted model of purchasing

To the Government:
Make your mind up time!

Our industrial future?

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Yorkshire Forward & The NHS

Jim Farmery

Yorkshire Forward

Yorkshire and Humber

Yorkshire and Humber

A Strong Economy

"Leeds - one of the..."

Key sector strengths:

Substantial investment from major companies including:

Access to markets – Sea Freight

Access to markets – Rail

Access to markets – Air

World-Class Universities

"R&D/Industry collaboration"

Businesses benefiting from collaborating through the CIC network include:

"“The focused approach of..."

How This All This Achieved?

YF/NHS Partnerships

Regional Procurement-Overview

Regional Procurement-Outputs

Challenges

Opportunities

Results

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The American Way

Outline

The System

Hospital

Departments

Departments

Technology

Hospitals

Distributor

Manufacturer

Group Purchasing Organizations

Government

Others

Immortality is expensive

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For Example…..

Tariffs

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Tariffs…OP

OP Procedures (para 43)

Incentives in the DRG system

Possible responses

Unbundling and local innovation

Unbundling in V4 HRGs

New Technology

Options   for Payment

Recent Guidance

"NOTE FOLLOWING SLIDES ARE FOR..."

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Specialised Services

Specialist Supplements (para18)

MFF

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