AXREM Publishes Landmark Report Evaluating Value-Based Procurement: Principles, Practices, and Impact
03 June 2025
An evidence-based exploration of how procurement strategies can enhance healthcare value
AXREM, the UK’s leading trade association representing suppliers of diagnostic medical imaging, radiotherapy, healthcare IT, and care equipment, has released a pivotal report clarifying the principles and practices of Value-Based Procurement (VBP). This report underscores how VBP can transform procurement strategies, foster stronger partnerships between healthcare providers and suppliers, ultimately driving better outcomes for patients across the NHS.
A Call for Change in NHS Procurement
The report traces the evolution of VBP, which first gained traction through a collaborative research study between the NHS and the University of Liverpool in 2015. It highlights the necessity of shifting away from adversarial, price-driven supplier relationships towards strategic industry partnerships that optimise system-wide costs and elevate patient care.
This transition is fuelled by several key challenges:
- Rising Demand & System Strain – With the NHS facing unprecedented demand, strategies such as Community Diagnostic Centres have become vital to improving accessibility and efficiency.
- Workforce Shortages – NHS England currently faces 130,000 vacancies, with staff burnout impacting service delivery.
- Global Economic Pressures – Traditional cost-reduction procurement techniques are becoming less viable, reinforcing the need for an outcomes-focused approach.
Aligning with NHS Priorities for 2025/2027
Recognising the importance of VBP, AXREM has embedded its principles into its strategic priorities for the coming years, emphasizing:
- Patient Safety & Ethical Standards – Ensuring members uphold the highest levels of quality and sustainability.
- Technology-Driven Patient Outcomes – Supporting NHS clinical care pathways through innovative solutions.
- Reducing Waiting Times & Enhancing Diagnostics – Driving efficiency to align with NHS modernization efforts.
- Future Healthcare Policy Influence – Engaging with government to shape policies that address NHS pressures.
- A Net-Zero Commitment – Ensuring AXREM members contribute to NHS carbon reduction goals.
A Path Forward for Sustainable Healthcare
As the NHS navigates a period of immense transformation, balancing rising demand, financial constraints, and workforce challenges, Value-Based Procurement is emerging as a globally recognised solution to drive efficiency, improve patient care, and optimise costs.
The Department of Health and Social Care’s commitment to the widespread adoption of VBP signals a new era in procurement strategy, ensuring that the integration of NHS England into a central Department of Health function does not impact the pace and scale of value driven approaches.
AXREM remains committed to supporting its members, recognising that the technologies they provide, both individually and collaboratively are uniquely positioned to deliver sustainable healthcare solutions for the future. Value Based Procurement is a key enabler of this transformation, and AXREM stands ready to support its implementation across the NHS.
AXREM will continue to work alongside NHS leadership, industry partners, and policymakers to ensure that VBP remains at the heart of healthcare modernisation.
Sally Edgington, AXREM Chief Executive Officer said upon the paper release “I am pleased to have worked with Brian Mangan and members on this paper, and we have coincided the release of the paper with our industries largest UK event of the year UKIO, where later today in Liverpool we will be running a session about VBP and the key themes in the paper. Industry support the concept of VBP, but we need to see consistency and Trusts embracing the concept of not just seeking the lowest price”.
Huw Shurmer, AXREM Chair said “Value-Based Procurement is not just a concept, it is a necessity for the future of NHS sustainability. This report underscores the vital role collaboration between healthcare providers and suppliers plays in delivering improved patient outcomes, reducing system inefficiencies, and ensuring long-term financial sustainability. AXREM and its members remain fully committed to supporting the NHS in embracing VBP and harnessing innovative technologies to meet evolving healthcare demands.”
“I’m grateful for the opportunity to collaborate with AXREM and its members in producing this report. ‘Value’ carries different meanings for different stakeholders, and this report seeks to provide clarity, both for the NHS and Industry on its significance within the NHS. By fostering strong partnerships with Industry, we can work together to drive improvements in patient care.” Brian Mangan, CEO, Luach Consulting Group and paper author.