The Medical Technology Association of Australia (MTAA) has released a new report that provides an analysis of how the country can use value-based procurement to drive meaningful health outcomes.
Australia spends $11.4 billion on medical devices annually, representing 5.2 per cent of total healthcare expenditure.
The report considers how value-based procurement (VBP) can improve value to improve patient outcomes and help eliminate waste and inefficiencies in the health system.
In an era marked by an aging population and rising chronic diseases, coupled with economic uncertainties, the sustainability of healthcare delivery has become a concern.
MTAA said the Value-Based Procurement Report investigates these challenges.
The report says that the delivery model improves health systems, to the benefit of patients, in a way that considers health outcomes and the total costs across the entire continuum of patient care.
To date, relatively little focus has been placed on how purchasing decisions are made through procurement processes to support the objective of value-based health care (VBHC).
MTAA said the report looks at each state and stakeholder type to understand the current and potential landscape for VBHC and VBP in Australia.
Recommendations include the need to build a supportive ecosystem and clinical leadership, the use of real-world evidence, the implementation of innovative funding approaches and cross-sectoral expert advice.
MTAA CEO Ian Burgess said, “By drawing on international successes and best practices, the report paves the way for a collaborative effort to navigate the challenges facing Australian healthcare.
“There are opportunities to deliver so much more for patients and healthcare systems from value-based procurement through policy leadership and collaboration.
“MTAA is committed to ensuring that the medical technology sector plays a pivotal role in shaping a sustainable and prosperous future for Australian healthcare.”