Public Procurement

Procurement is the process of acquiring needed goods or services at the best possible total cost of ownership to meet the needs of the purchaser in terms of quality, quantity, time, and location. For public bodies under financial pressure, procurement provides a potential opportunity to reduce costs.

However, to ensure that all potential suppliers are treated equitably demands clear rules and transparent processes. The European Commission would like to see changes to public procurement, and is currently running a consultation exercise in order to get input from all relevant parties to best shape these changes. The new rules are expected to come into force by 2012.

Clearly, the medical technology industry is deeply interested in this process; a great deal of what the industry produces is bought by public bodies using procurement. Therefore Eucomed will be active participants in the consultation exercise, offering expert, constructive input to help the new rules recognise the particular challenges which face the industry in dealing with procurement.

The rapid lifecycles and continuous improvement which characterise the medical technology industry present a particular challenge in procurement. The desired outcome of the process is to achieve the optimal compromise between quality and price, but that is difficult to achieve without an accurate appraisal of the value of innovation.

Clearly, if procurement rules do not properly recognise and reward innovation, then there will be fewer incentives to innovate, future investment in new technology will be endangered, and patient access to the best solutions will be restricted.

Europe is planning to propose changes to public procurement rules by 2012. To ensure the possibility for the input from all interested parties, the European Commission launched a new public consultation on public procurement in January 2011.

As the rules of public procurement of medical devices directly impact the medical device industry, Eucomed will be actively participating in the discussion and providing constructive input into the consultation process.

There is more information on the consultation process available here.