An In-Depth Look at How to Successfully Sell Into the NHS
Unsurprisingly, many businesses want to offer their services and products to the NHS. Looking after the health and well-being of the UK population is expensive, and the private sector plays a significant role in its functioning. In 2021/22, £32.1bn was spent on procurement, which amounts to 17 per cent of day-to-day NHS spending.
While the NHS is a hugely important market, its sheer size and the pressure to uphold quality and value for money make NHS procurement complex and tricky to navigate. If you want to sell your product or services to the NHS, you must understand that market entry issues are numerous and stringent - procurement rules are far more rigid than those of other public sector authorities and bodies.
Although there are hurdles to jump, you shouldn’t despair. The NHS needs goods and services from the private sector, and it might as well be your company that fulfils some of the health service’s needs as any other.
Digital technologies have helped procurement to become less fragmented. Many NHS-affiliated organisations, which previously used different platforms to buy goods and services, have become more aligned. The lack of integration made it difficult for buying teams in the Department of Health and Social Care and NHS to share insights and make effective commercial decisions. The NHS recently introduced a new commercial buying system, Atamis, which currently holds a pipeline of £24bn and active contracts with a value of £108bn.
As the buying processes become more streamlined, there has arguably never been a better time to sell to the NHS. If you become a trusted and established supplier, the opportunities to expand have grown dramatically.
This blog explains the structure of the NHS market and the best positioning tactics to become an NHS supplier.
Who Owns the NHS Supply Chain?
The government owns the NHS supply chain under the NHS Commissioning Board, NHS England, and NHS Improvement (NHSEI).
Who Is in Charge of NHS Procurement?
The Department of Health and Social Care (DHSC) is responsible for setting the budget and top-line objectives of the NHS and is ultimately accountable for NHS procurement.
What is the SCCL?
The government enacted a new Supply Chain NHS UK operating model in April 2018. Supply Chain Coordination Limited (SCCL) is the limited company overseeing the new operations.
SCCL NHS manages the sourcing, delivery, and supply of clinical consumables, capital medical equipment, and products, such as food and office solutions for NHS Trusts and healthcare organisations across England and Wales.
How are NHS Contracts Awarded to External Suppliers?
There are five main routes to market for companies interested in supplying the NHS. These, as laid out in government guidance on partnering with the NHS to sell goods and services, are:
selling directly to trusts or primary care organisations
selling through the new NHS Supply Chain
selling through collaborative purchasing arrangements
via national framework collaborations and contracts
through government tenders and contracts
NHS procurement is complex, with opportunities originating from many individually devolved bodies rather than a single centralised place. How contracts are awarded will depend on the route taken. You can also find some helpful information via third-party companies specialising in NHS tendering.
One thing to note is a recent change to one tendering route. Many NHS healthcare services were commissioned via local clinical commissioning groups (CCGs). However, in 2022, the CCGs were closed, and their services were taken over by Integrated care systems (ICSs). ICSs bring together health and care organisations, forming strong local partnerships.
Suppliers can also sell directly to providers, like GP practices, who often purchase locally or through the new NHS supply chain.
How Do I Sell My Products to the NHS Supply Chain?
The NHS supply chain enables products and consumables to be purchased via frameworks. Each framework covers a defined set of products. Suppliers bid to list their products on one of the NHS supply chain frameworks during a pre-defined period. End customers, such as NHS Trusts, then use the NHS Supply Chain catalogue to order products.
Being listed doesn’t guarantee business; sometimes, not all qualifying companies make it onto the list.
For example, see a recently announced framework with approved NHS uniform suppliers here.
How Long Is the Buying Cycle in the NHS?
The buying cycle in the NHS varies depending on the route, but selling to the NHS generally involves an extensive process. It is rare for a new supplier to win an NHS contract immediately - it can take multiple attempts to get noticed.
For higher-value contracts, there will often be a public tendering process (thresholds vary across organisations), which makes the procurement cycle much longer.
Regardless of the procurement process, the bigger the contract/cost, the longer it can take. Small ticket items (less than £1,000) may only need one person to sign them off, but as quotes increase, it’s not uncommon for two or more signatures to be the norm.
How Many Suppliers Does the NHS Have?
The NHS uses over 80,000 suppliers’ products, including medical equipment, food, and business and office goods.
How to Become a Supplier to the NHS?
There are a few routes to becoming an NHS-approved supplier.
Register with the Contracts Finder and ‘Find a Tender Service’ (FTS)
Identify the right contacts within an NHS Trust or primary care organisation (generally clinicians, the procurement team, and the finance team)
Partner with an NHS organisation via a grant-funded project from UK Research and Innovation or similar initiatives
Become a supplier via the NHS supply chain
Find out more about how to sell your product to the NHS here.
Commenting on the process, Dave Burrows, NHS Innovation Accelerator Fellow and CEO of Damibu, said:
“Many companies have a widespread belief that it’s required to sell directly to a trust or a CCG. However, sometimes it’s easier not to go directly to the NHS. There are providers to the NHS whose commissioning rules aren’t as strict, so you could instead go to a healthcare provider servicing the NHS.”
How Do You Sell to Hospitals?
If you sell to a hospital, prepare for a long sales cycle. This usually involves identifying the appropriate contacts (clinicians, the procurement team, and the finance team) within the selected NHS hospital. However, identifying the right person to get in front of can be challenging. This is where relevant NHS events, conferences, and exhibitions can help.
How to Sell Medical Supplies to Hospitals
Procurement of Medicines for hospitals in England is led and coordinated by the NHS Commercial Medicines Unit (CMU). It is supported by the National Pharmaceutical Supply Group (NPSG) and the Pharmaceutical Market Strategy Group (PSMG).
Getting Started: How Can I Sell My Products to the NHS?
The first step is to gain a fundamental understanding of the NHS supplier framework. Doing your research is imperative, and this effort should not be underestimated. Spend time understanding the procurement routes, your competitors (check out the NHS-approved suppliers list), and what to include in your bid. There are many private companies offering bid writing services.
Finding a way in means finding the right people to speak to. A great way to do this is to make use of exhibitions. Attending events relevant to NHS suppliers also provides an opportunity to develop an understanding of the procurement process, check out competition, and get in front of the right people.
At GovNet, we continue to build a strong portfolio of specialist exhibitions and conferences dedicated to the healthcare sector.
Our flagship show, Healthcare Excellence Through Technology (HETT), is a must event for those keen to sell technological innovations into the NHS. It is well respected and regularly supported by various parts of the NHS.