Problem Statement: Misalignment in procurement practices is a significant challenge in healthcare. It leads to 1) a limited consideration for the most economically advantageous tender (MEAT), 2) a slowing adoption of innovation, 3) short-term contracts, 4) intransparency in costs and 5) a reduction of patient value. Value-Based Procurement (VBP) is a multidisciplinary approach to address unmet needs, to achieve better outcomes and cost-effective care resulting in MEAT. Total Cost of Ownership (TCO), as part of the VBP, allows to understand the cost impact and optimal cost planning for healthcare institutions. Here we report on one example of VBP in dialysis in the KSA.

Description: A TCO analysis was performed:

1. assessing the current set-up and how different changes could address unmet needs
2. evaluating the switch from eight suppliers for hemodialysis and acute dialysis to one partner

Lessons Learned: The analysis showed the cost drivers and how the switch to one partner could be a solution for the customer’s unmet needs (low water quality, no hemodiafiltration, high cost of consumables and maintenance). The TCO demonstrated that even with the investment for upgrading the installation base, a saving of 32% over 2 years was achieved (mainly due to less failures and lower maintenance costs of the change in supplier). Therefore, also the administrative/operational resource burden for the hospital is significantly reduced.

Stakeholder perspective: The analysis demonstrated that cost savings on the total treatment cost can be made while providing high-quality dialysis. TCO produces a win-win situation for both the supplier and hospital. It facilitates value-based purchasing, thereby enabling cost-effective care with the potential of a positive financial impact and it allows to demonstrate the supplier as a reliable partner to tackle the challenges and to implement the solutions.