Different Is Necessary: Approaches to Advance Value-Based Procurement in Canada

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Different Is Necessary: Approaches to Advance Value-Based Procurement in Canada

Pages:27 pages45 min read

Author: Chad Leaver, Isabelle Gagnon-Arpin


Value-based procurement (VBP) is an advanced approach to purchasing that addresses the challenging problem of how to improve patient care and outcomes while containing healthcare costs.

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In Europe, contracting authorities have been successful in value-based procurement (VBP) practices by using the most economically advantageous tender (MEAT) approach, with 68 per cent of medical technology tenders across 11 countries using MEAT instead of the lowest-price approach between 2016 and 2019.

In Canada, there is currently no mechanism for identifying the procurement approach taken by provincial, regional, and local healthcare contracting authorities.

Our research highlights four scalable methodologies that can help increase the value of healthcare investments at different procurement levels.

These methodologies generated considerable value as financial and non-financial advantages for the contracting authority as well as benefits for key stakeholder groups including patients, providers, hospitals, healthcare systems, and the broader society.

Each methodology also provides solutions to help overcome the most pressing barriers limiting the adoption and scale of VBP in Canada. These solutions include data and measurement as well as pathways to public–private partnerships.

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