The impact of the Procurement Act on NHS suppliers 2024

Introduction

As we step into 2024, NHS buyers continue to wrestle with the financial challenges that have shaped the healthcare landscape over recent years. With the upcoming introduction of the new Procurement Act, an added layer of structural complexity is emerging for suppliers. You can search NHS tenders to see how buyers are adapting.

Formalised in 2023, the new Procurement Act is expected to go live in October 2024 and will introduce pivotal changes in the way NHS organisations procure contracts.

This blog highlights key changes and their implications for NHS suppliers across different sectors, equipping you with essential knowledge to navigate this upcoming regulatory shift.

For technology, business, medical equipment, and social care suppliers

With the Procurement Act 2023 in effect, suppliers of “non-healthcare services” will see a shift in NHS procurement processes starting October 2024.

The Act consolidates over 350 regulations into a simpler system and introduces 'Light-Touch' procedures, encouraging a more accessible and efficient approach to procurement.

For suppliers holding existing NHS contracts, you should also expect to be held to a higher account of performance under the new regime, with NHS organisations permitted greater ability to exclude suppliers for underperformance.

For healthcare suppliers

For “Healthcare service” suppliers, the (existing) Public Contracts Regulations (2015) and (upcoming) Procurement Act 2023 will no longer apply. This applies to Hospitals, Community, Mental Health and Primary Care providers.

As of January 2024, procurement of these services is instead governed under the Provider Selection Regime, which provides more flexibility for direct contract awards, away from the competitive tender process.

For suppliers in this category, we recommend reading the following Local Government Lawyer article for more information on upcoming changes.

Key guidance for NHS suppliers

In the current NHS landscape, where buyers are focused on recovering services and meeting financial targets amidst complex regulatory changes, it is vital to develop a proactive and empathetic sales strategy. This involves identifying NHS buyers with the necessary funding and intent for your solutions, and engaging with them to understand their specific needs, constraints and procurement processes. Understanding these nuances will help you tailor your offerings to the evolving NHS market, developing effective routes to market and securing a competitive advantage before the new procurement rules are implemented.

Conclusion

In summary, the NHS landscape in 2024 presents challenges for suppliers, but lucrative opportunities await for suppliers able to develop a proactive and data-led approach. To thrive, suppliers should leverage data-driven insights and proactive engagement strategies, aligning closely with NHS priorities and operational guidance. Stotles plays a pivotal role in this journey, offering critical insights and tools to effectively identify NHS contract and build lasting relationships with key decision makers.