2025 has seen some of the most significant changes in NHS procurement in recent history.
With the implementation of the Procurement Act 2023, new rules, platforms and priorities are reshaping how the NHS buys goods and services.
Here at K Low Consulting, we thought it would be handy to summarise the main changes in one place.
Why has the NHS changed the way it procures products and services?
Historically, NHS procurement was governed by European regulations and a wide set of legal requirements. These rules often meant complex tendering pathways, lengthy processes and barriers for smaller suppliers. In response, the UK government embarked on a transforming public procurement programme, designed to simplify and modernise the system with clarity, transparency and flexibility at its heart.
The Procurement Act
At the centre of this shift is the Procurement Act 2023, which officially came into force on 24th February 2025. This Act replaces much of the old public procurement framework with a single modernised system for procuring goods, services and works across government organisations, including the NHS.
It aims to:
- Simplify procurement procedures: This is done by consolidating existing competitive procurement pathways into two:
– Open Procedure: A single-stage process suitable for straightforward procurements.
– Competitive Flexible Procedure: A more adaptable, multi-stage approach allowing contracting authorities to design procurement processes tailored to meet specific needs.For the NHS, the flexibility offered by the competitive flexible procedure encourages procurement teams to engage more actively with the market and stakeholders, including suppliers, patients and service users, encouraging innovative solutions that align with healthcare objectives.
- A Central Digital Platform: The platformwas established for suppliers to register and access procurement opportunities across the public sector. This is an enhancement of the existing Find A Tender service and aims to reduce duplication and errors, making it easier for suppliers to participate in tenders. Registering on the central digital platformis mandatory for suppliers seeking to tender for NHS and wider public sector contracts to register, input and then share their commonly-used information as part of the procurement process.
- Emphasis on Social Value: The Act places greater importance on social value in procurement decisions, encouraging buyers to consider factors such as community benefits, environmental impact, sustainability and support for small and medium-sized enterprises (SMEs) when awarding contracts.
- Enhanced Transparency and Accountability: The Act aims to create a more transparent and inclusive procurement process. This not only includes publishing pipeline and tender notices for opportunities over certain thresholds on the central digital platform, it also requires buyers to publish notices when a contract is modified or terminated.
- Support for SMEs and Social Enterprises: By simplifying processes and reducing barriers, the Act aims to encourage participation from a more diverse range of suppliers, including SMEs and social enterprises, making it easier for them to compete for contracts, encouraging innovation and economic growth.
What about the Provider Selection Regime (PSR)?
It’s crucial to note that not all NHS procurement falls under the Procurement Act. In healthcare service delivery, the Provider Selection Regime (PSR), which was introduced in 2024, continues to apply for contracting health services like clinical care, community provision and integrated care contracts. This regime exists alongside the Act and applies specific routes for awarding health service contracts.
What other changes has the NHS undergone in 2025 that could affect procurement?
For the NHS, these changes to procurement processes are about improving efficiency and achieving better outcomes. These outcomes are linked to priorities that have been announced or emphasised in 2025.
These include:
1. Reducing waiting times and improving access to care: Cutting waiting lists for elective procedures and improving access to urgent and emergency care, including A&E and ambulance response times, has been identified as a major and immediate NHS priority.
2. Strengthening primary care access: Improving access to general practice (GP) services to ease pressure on hospitals and improve patient experience.
3. Community and preventative care: The NHS’s strategic direction emphasises moving towards a community health model and focusing on prevention rather than reactive treatment.
4. Digital transformation: Digitisation is a core NHS priority for 2025 and beyond. Plans include greater use of digital platforms, apps and AI-driven systems, improving efficiency and the patient experience.
5. Tackling health inequalities: The NHS wants to ensure fairer access for underserved communities and address the variation in care quality across regions. This focus also ties into the community-focused care approach.
We believe that these priorities will emerge in 2026 tenders, so it is advantageous to be aware of them and weave them into your bids – how can your product or service help the NHS to achieve its wider organisational goals?
These priorities could also result in new tender opportunities. For example, preventative care and community models may lead to increased demand for technology or services that support early diagnosis, digital tools and home care solutions. Likewise, the move towards digital will most likely create opportunities in IT systems, AI, health tech innovations and data analytics procurement.
If you’d like help navigating NHS tender opportunities, talk to a member of our team by calling 0330 133 8823 or emailing info@klowconsulting.com.