The ultimate guide to medical equipment procurement in the UK

January 23, 2025

Secure new investments in 2025

Whether you’re in the public or private sector, procuring medical equipment that can drive and enhance the services requires a careful approach that balances clinical needs, financial considerations, regulatory compliance and the intricacies of the supply chain. Adopting a sustainable procurement strategy can not only ensure the best possible patient outcomes but also deliver improved operational efficiency and manage costs more effectively.

In this guide, we explore strategies for medical equipment procurement in the UK and offer guidance on how to secure new investments in 2025 and beyond with help from tailored finance solutions, expert insights, and an understanding of the latest trends.

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Major Medical Equipment Procurement Challenges in 2025

Suppliers and end users across the public and private sectors currently face many different challenges when it comes to procuring essential medical equipment that will deliver better health outcomes and improve operational efficiency.

These include:

Navigating regulatory complexities

Whether it’s ensuring that all medical equipment purchased has the correct quality certifications to meet ISO standards or establishing a fair, transparent and competitive procurement process, the regulations around this type of procurement can be complex.

Now that the rollout of the Procurement Act 2023 has been delayed until early 2025, it does give a little more time to assess and prepare for the full impact of the planned regulatory changes to public sector procurement. It may also mean that certain planned projects designed for the new legislation either need to be changed or delayed, which can increase challenges to the procurement process.

Budget constraints

By far the most pressing challenge for many healthcare organisations trying to procure new medical equipment is the capital funding available to Trusts. Many hospitals and healthcare centres are tasked with balancing the books or making cost savings meaning when it comes to making new investments there is no capital budget available for the outright purchase of essential upgrades to things like medical equipment.

The good news is that there are solutions that can help support the procurement of essential new medical equipment for UK organisations without the need for full investment up-front. Supply chain issues

Demand for medical equipment is always high, but some of the global economic and geopolitical events in recent years have exacerbated the pressure on supply chains. Finding reliable suppliers who can deliver the promised medical equipment on schedule and provide value as well as quality outcomes for patients is a challenge that both NHS trusts and private healthcare facilities face.

Medical equipment procurement strategy essentials

Every organisation has their preferred procurement routes and strategies, and in the public sector, this includes specific frameworks to ensure full compliance. However, some elements are non-negotiable when working in the healthcare sector, including:

Solid needs assessment

To support the business case for investment in new medical or clinical equipment, finance teams must be presented with an overview of the clinical needs that will be met by the equipment and the volume of patients that it will directly impact. This insight is always the starting point of procurement and is essential to justify the required investment.

Researching the market

All healthcare organisations will take the time to explore the market and research the available products that will meet clinical needs. This involves keeping a close eye on new products that could enhance patient care and outcomes.

Budgeting/financial planning

A key step for finance teams is to ensure they have accurate budgeting and planning in place for the finances involved in purchasing medical equipment. While patient outcomes are always a priority, the reality is that procuring high-quality, advanced equipment often comes with significant cost, and healthcare providers, particularly those in the public sector, will face intense competition to secure the required funding.

Medical equipment funding

Exploring options such as flexible finance can offer an attractive alternative when it comes to purchasing the necessary medical equipment as quickly as possible, without the large upfront capital outlay. This allows healthcare organisations to benefit from new equipment immediately, without compromising on other, high-priority investments that may be needed elsewhere.

Medical equipment supplier selection

For many NHS Trusts, finding and effectively evaluating trusted and compliant suppliers can be a long and time-consuming part of the procurement process. To support this process, the NHS has several procurement frameworks that ensure hospitals are working with suppliers who comply with the necessary regulations and have proven experience whilst offering value for money.

At SAF, we have worked with numerous medical equipment suppliers to facilitate deals amounting to hundreds of thousands of pounds. We also have an in-depth knowledge of NHS procurement frameworks including NHS Shared Business Services and NHS Crown Commercial Service.

Potential future trends in medical equipment procurement

Staying on top of any emerging trends and technological advances is another important step in the medical equipment procurement process – particularly as this is an area where new technologies are advancing at a rapid pace. While this will likely make the overall investment more significant, more efficient technology could also increase outputs, enhance patient care and better support operational requirements, offsetting some of the financial burden.

Here are some of the key areas to consider as we move into 2025 and beyond:

AI-driven tools

There are now several emerging AI-driven tools that can help streamline processes in many sectors. Some of the areas in which they can do so include:

  • Smart inventory management systems using AI can optimise stock levels automatically, typically reducing inventory costs by 20-30% without requiring manual stocktakes whilst preventing overstocking.
  • AI-powered industrial robots can learn from experience to improve their performance over time, increasing production efficiency by 15-25% compared to traditional automation.
  • Energy management systems with AI can reduce utility costs by 10-20% by automatically optimising HVAC, lighting, and equipment power usage based on real-time conditions and historical patterns.
  • Automated workflow systems using AI can reduce administrative overhead by streamlining scheduling, resource allocation, and documentation, typically saving 20-30% in management time.

Sustainability focus

There is an increased focus on sustainability within healthcare, with the NHS looking to adopt more environmentally friendly methods, underpinned by a target to reach net-zero emissions by as soon as 2040. This growing demand is matched across many sectors, with key stakeholders keen to invest in products with strong net zero benefits.

Looking ahead, there will be a significant onus on tracking and reporting requirements for many large healthcare organisations regarding carbon emissions and other sustainability targets, meaning the ethical impact of procurement decisions is likely to be increasingly scrutinised over the coming years.

Finance teams will be expected to keep these contributing factors in mind to help ensure that their medical equipment procurement process is agile and responsive keeping pace with the technological, regulatory and ethical changes, while still facilitating the required operational enhancements.

Procurement best practice

For suppliers and end-users, essential components of their procurement strategies must be reviewed to ensure the most effective outcomes when purchasing medical equipment.

To support this process, there are various ways in which finance teams can streamline and enhance efficiencies. Suppliers should also be aware of these as additional opportunities to close more sales cycles and support customers:

Utilise digital frameworks when appropriate

Managing procurement digitally brings many benefits for all parties involved because it cuts down on time and paperwork whilst encouraging a high level of transparency. An increasing number of online procurement frameworks and dynamic purchasing systems (DPS) are now open to both public and private sector healthcare providers. These solutions require suppliers to be pre-qualified before bidding, which reduces the time and resources needed in supplier evaluation and significantly offers additional reassurance to end-users.

Manage risks effectively

There are multiple risks to procurement in any field, but the stakes can be higher for medical equipment and real patient outcomes, particularly in periods of high pressure. Some of the biggest risks for NHS Trusts and healthcare providers could include:

  • Dependency on a single supplier
  • Contractual issues
  • Regulatory compliance
  • Supply chain disruptions
  • Price fluctuations
  • Quality control

Identifying the potential risks and looking at ways to mitigate them at all stages is an important part of the procurement process.

Consider flexible finance solutions.

In the context of rising medical equipment prices and the need to keep costs as low as possible, investment in state-of-the-art technology can feel out of reach of some organisations’ budgets. However, there are many options available through healthcare equipment financing, with a trusted partner.

As every healthcare organisation and situation is different, it’s essential to partner with an experienced financial and commercial solutions team, who can develop a bespoke option that is tailored to your specific requirements, goals and budgets.

At SAF we work with suppliers and end-users to accelerate the medical equipment procurement process, alleviating the pressure on healthcare providers to invest without requiring capital budget helping to drive efficiencies and enhance patient care.

Our range of tailored finance agreements, including Hire, Managed Service and Pay Per Use agreements allow healthcare organisations to preserve capital budgets and manage cash flow more effectively – whilst still allowing essential investments and upgrades. We work closely with suppliers to implement tailored solutions that will support their end users to invest in the necessary equipment, supporting growth plans whilst aligning this with financial drivers and budget constraints.

Find out more about SAF Solutions and our healthcare finance options.

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