The UK Government’s newly launched NHS 10-Year Health Plan sets out a bold and comprehensive roadmap for transforming health and care services across England. With sweeping reforms across finance, performance, technology, workforce, innovation, and care quality, the plan has significant implications for NHS procurement professionals.
Here are the key elements and what they could mean for NHS procurement teams:
1.Financial Reform and Budget Discipline
Deficit support funding will be removed from 2026, requiring all NHS bodies to meet operational planning targets without exception.
Budgets may be legally capped, similar to local councils, if financial discipline is not restored.
Mandatory 3% annual budget carve-out for service transformation will become standard.
Tariff pricing will shift from average cost models to best clinical practice benchmarks.
Implications for Procurement:
- Procurement teams will need to support more strategic, value-based purchasing decisions.
- There will be increased scrutiny on cost-effectiveness and alignment with transformation goals.
- Contracting will need to reflect new tariff structures and prioritise outcomes over inputs.
2.Shift to Community and Neighbourhood Care
A “decisive shift” in investment from hospitals to community care is planned over the next decade.
Neighbourhood health centres will be rolled out nationally, starting with public sector capital and potentially expanding via public-private partnerships.
Outpatient care will be restructured, with most services delivered outside hospitals by 2035.
Implications for Procurement:
- Procurement professionals will need to support the commissioning of services and infrastructure for neighbourhood health centres.
- This includes sourcing community-based providers, digital platforms, and integrated care solutions.
3.Organisational and Structural Changes
All NHS providers are expected to become Foundation Trusts (FTs) by 2035.
High-performing FTs may evolve into Integrated Health Organisations (IHOs), managing entire health budgets for defined populations.
Capital approval processes will be streamlined, with greater flexibility in multi-year planning.
Implications for Procurement:
- Procurement teams will need to adapt to new governance models and support IHOs with integrated procurement strategies.
- There will be opportunities to consolidate contracts and align procurement with population health outcomes.
4.Workforce and Quality Standards
A new 10-Year Workforce Plan will be published later this year.
Minimum employment standards will be introduced in April 2026.
The National Quality Board will be reformed, and new service frameworks will be developed for priority areas such as cardiovascular disease and dementia.
Implications for Procurement:
- Procurement will play a role in sourcing workforce-related services, training platforms, and quality improvement tools.
- Contracts will need to reflect new employment standards and support continuous quality monitoring.
5.Technology and Data Integration
The NHS App will become the “full front door” to the NHS by 2028.
A single patient record (SPR) will be legislated, with data contributions from validated wearables.
Ambient voice technology will be introduced in hospitals and GP practices.
Implications for Procurement:
- Procurement professionals will need to engage with digital health suppliers, manage interoperability requirements, and ensure compliance with data governance standards.
- Value-based procurement for digital tools will become a priority.
6.Innovation and Industry Partnerships
Regional Health Innovation Zones will be established to foster radical innovation.
A new innovation passport and value-based procurement guidance for devices and digital products will be introduced.
The NHS will seek genuine partnerships with industry, moving beyond transactional relationships.
Implications for Procurement:
- Procurement teams will need to support agile sourcing models, pilot new technologies, and collaborate closely with suppliers to co-develop solutions.
- Frameworks must be flexible enough to accommodate rapid innovation cycles.
Conclusion
The NHS 10-Year Health Plan represents a fundamental shift in how health services are funded, delivered, and evaluated.
For NHS procurement professionals, it calls for a more strategic, integrated, and outcomes-focused approach.
Staying informed and agile will be key to navigating these changes and ensuring procurement continues to deliver value across the system.