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.
SMEs are the drivers of innovation in Europe and because of their key role in developing novel technologies, play a key part, not only in bringing safe, more effective innovations to patients' benefit and allowing a gain in efficiency in healthcare delivery, thus ensuring healthcare sustainability, but also in ensuring the competitiveness of Europe as a whole. Their innovations typically result from their collaboration with research clinicians and academia. This ecosystem is a delicate balance of ideas, funding and return on investment through uptake by the health system. Therefore, by refraining from resorting to restrictive centralised procurement practices, SMEs will remain in an equal opportunity position when replying to tenders, critical to keep this balance and to ensure long term continued innovation to the benefit of all.
Moreover, whereas Europe is still an attractive market for investment in research, key to safeguarding this position will be ensuring that companies willing to continue their R&D investments in Europe will eventually see an uptake of their innovations. Failure to do so could result in a shift in R&D investments towards markets that valorise these innovations.
"The Medical Technology Industry in Europe is committed to delivering value-based innovation. In the face of austerity and increased health demand, Europe's health systems will equally need to evolve and innovate. In an attempt to ease pressure on healthcare budgets, however, purchasers often resort to procurement processes which risk to stifle the very catalysts of sustainable healthcare systems - SMEs," Luciano Cattani, Eucomed Chief Executive said. "Moreover, 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," Mr Cattani concluded.
Key findings of the research
- Centralised Procurement risks to have a negative impact on adoption of innovations
- Procurement centralisation disfavours SMEs through non-product-specific requirements such as large volumes, broad portfolio and administrative requests
- In the long run, a negative impact of procurement centralisation on quality and/or cost of care cannot be ruled out
The joint research "Procurement of medtech innovations in the EU- Impact of procurement centralization in the EU on the innovation strength of the medical technology sector" was carried out by Simon-Kucher & Partners and the University of Twente to assess the impact of current procurement centralisation in the EU on the innovation strength of the medical technology sector. The research, which was commissioned by Eucomed, consisted of 60 interviews with providers, manufacturers, and industry experts; scientific literature review conducted by the University of Twente; product/case-study related desk research; and country specific procurement landscape analysis.
The first outcome of the research findings will be submitted to a peer reviewed journal by end of March.
About Eucomed
Eucomed is the European medical technology industry association. Its mission is to make modern, innovative and reliable medical technology available to more people. Eucomed represents directly and indirectly 22,500 designers, manufacturers and suppliers of medical technology used in the diagnosis, prevention, treatment and amelioration of disease and disability. Small and medium sized companies make up more than 80% of this sector. The European medical technology industry generates annual sales of €95 billion, invests some €7.5 billion in R&D and employs around 500,000 highly skilled workers.