The Healthcare Market Transformation Network

Market transformation: context

Given the scale of public spending in Europe, sustainable procurement is a strategic opportunity for healthcare purchasers to achieve environmental and sustainable development objectives as well as foster innovation. Accounting for approximately 10% of EU GDP, the healthcare sector plays a significant role in influencing markets.

One of HCWH Europe’s overarching goals is to leverage the healthcare sector’s purchasing power to drive policies and markets towards ethically produced, non-toxic, and sustainable products and services. We supported healthcare organisations in making responsible purchasing decisions and moving towards value-based procurement, reducing the overall cost of care whilst guaranteeing both human and environmental health and social justice throughout the supply chain.

Objectives of the network

The Healthcare Market Transformation Network addressed the need for harmonised sustainable procurement criteria tailored to products and services purchased by the healthcare sector.

Each healthcare product poses various sustainability concerns throughout its lifecycle. Drafting holistic sustainability criteria to address these sustainability issues requires expertise and solutions in:

• Antimicrobial resistance
• Chemicals
• Greenhouse gas emissions
• Packaging
• Product disposal/end-of-life
• Raw materials
• Use of resources (water, energy, etc.)
• Workers’ rights and occupational health

The network facilitated dialogue among procurers, health professionals, suppliers, and recyclers and identified opportunities for sustainable and innovative solutions.

By aggregating demand across a European network, using standardised product criteria and systematic identification of lower impact and safer alternatives, HCWH Europe contributed to transforming the healthcare sector’s supply chain to yield co-benefits for patients, the environment, and wider society.

In the long term, the harmonisation of sustainable procurement criteria across countries will lead to an increased demand for sustainable products (considering life-cycle assessments and circularity principles), giving a clear signal to the market and eventually reducing costs.

Resources

• Sustainable procurement criteria | Examination gloves (2021)
• European healthcare’s phase-out list for chemicals of concern (2021)
• Sustainable procurement criteria | Medical textiles (2022)
• Sustainable procurement criteria | Responsible antimicrobial use in products of animal origin (2022)

Transforming markets: Process

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Thematic areas

Following a preliminary member consultation and in line with HCWH Europe’s programmatic focus, we prioritised the following thematic areas for 2021-2025:

• Disinfection
• Food services
• Low-carbon solutions
• Medical textiles
• Pharmaceuticals
• Plastics

Working groups

Building on the successful examples in the Nordic countries, the network featured working groups comprising hospital and public procurement staff, clinicians, sector/product experts, academics, and representatives from environmental/sustainability NGOs. HCWH Europe consulted with industry representatives to ensure feasibility and create innovation opportunities further.
HCWH Europe facilitated regular meetings to establish working groups’ priorities and strategies and map out existing work by members to build and share experiences. The working groups followed the follwoing these steps:

1. Prioritisation of products - Working groups jointly selected the healthcare products for which they would like to create harmonised sustainable public procurement criteria. This process involved a literature review and/or procurement surveys. For example, in 2020, the HMTN prioritised disinfectants and examination gloves; other protective clothing, such as gowns, were addressed in 2021.
2. Identification of sustainability issues - once the products for prioritisation were selected, the working groups mapped the specific sustainability issues related to them.
3. Market research and identification of best practices - best practices, pilot projects, and potential solutions already available on the market were assessed by members of the working groups.
4. Draft criteria and innovation gaps - it is challenging to identify workable cross-country criteria, so the working group defined harmonised baseline criteria that procurers can adapt according to their needs. For example, the group can define disinfectants’ ingredient composition, but each procurer might request country-specific certifications for product efficacy in their criteria.

Industry feedback and market dialogue

The draft criteria were presented to industry representatives to assess feasibility and identify innovation gaps. This was also an opportunity to discuss hospitals’ common unmet needs and innovation gaps in the market.

Harmonised sustainable procurement criteria

The working group members endorsed the final product specifications, which were translated into select European languages to facilitate wider adoption. These product specifications, made publicly available on the HCWH Europe website, are ready to use and adapted for health procurers’ needs.

Joint statement of demand

Members of the working group endorsed the criteria and expressed interest in embedding these in their future procurement processes.

Innovation workshop

Procurement criteria, common unmet needs, and innovation gaps were presented at an annual Market Transformation Workshop to foster dialogue amongst health procurers, clinicians, suppliers, producers, and recyclers. This collaboration and information exchange helped catalyse the development of sustainable healthcare products and could lead to new pilot projects for testing sustainable solutions.

Impact

This Europe-wide network provided an opportunity to collaborate and learn from shared experiences and challenges, offering a unique insight from both industry and the healthcare sector.

By identifying common needs, aligning procurement demands, and aggregating purchasing power, public authorities can create a bigger market for sustainable innovations and achieve cost efficiencies.