Your device is priced against competitors, not against the clinical value it delivers

Most MedTech companies set price by benchmarking, not by health economic evidence. In an NHS environment moving towards value-based procurement, that gap quietly erodes margin on every unit sold.

steps: 7; steps
to start: 1 to 2 weeks; to start

The short answer

Price from the value your device creates for the buyer, not from your competitor's list price. Build a simple economic model in the buyer's own terms (theatre minutes, bed days, complications, extra cases per list) and set your price at a share of that value. Private hospitals often respond faster to this argument because they keep the savings and the extra throughput directly.

7 steps

Do it yourself: step by step

0 of 7 done

List every way the device saves money or earns revenue for the buyer: theatre minutes, length of stay, consumables replaced, complications avoided, extra cases per list.
Time
1 to 2 weeks
Typical cost
£0 to £15,000 with a health economist (Solvable estimate: up to about 15 days of specialist time)
Who does it
Founder with health economics supplier
Done when: A per-procedure value figure.

This problem is Solvable.

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Value-based price worksheet

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Table

Value-based price worksheet: [device name]

Step 1: value per procedure

Value driver	Baseline (without device)	With device	Difference	Cost per unit	Value per procedure	Source
Theatre time	[ ] minutes	[ ] minutes	[ ]	£[ ] per minute	£[ ]	[buyer data or published cost]
Length of stay	[ ] nights	[ ] nights	[ ]	£[ ] per night	£[ ]	[ ]
Complications	[ ]%	[ ]%	[ ]	£[ ] per complication	£[ ]	[your study]
Consumables replaced	[ ]	[ ]	[ ]	£[ ]	£[ ]	[ ]
Extra cases per list (private)	[ ]	[ ]	[ ]	£[ ] margin per case	£[ ]	[buyer data]
Total value per procedure					£[ ]

Step 2: price corridor

Measure	Figure
Cost-plus floor (unit cost + minimum margin)	£[ ]
Nearest competitor price	£[ ]
Value per procedure (from step 1)	£[ ]
Target price (value share of [30 to 50]%)	£[ ]
Walk-away price	£[ ]

Step 3: discount trades

We give	We get
[x]% off	Volume commitment of [ ] units a year
[x]% off	Contract length of [ ] years
[x]% off	Access to outcome data for a case study
[x]% off	Named reference and site visits

A buyer should see a clear gain at the target price. If they do not, check your inputs before you cut the price.

Avoid these

Common mistakes

Setting price by matching the nearest competitor.
Claiming savings the buyer cannot bank, such as theatre minutes that will not be reused.
Discounting without asking for anything in return.
No annual price review clause, so inflation erodes margin every year.
Using overseas cost data instead of UK costs.

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Check where you stand

Benchmarks

22% of UK HealthTech companies have removed products from sale because the price the NHS would pay was below cost
Shows how little room NHS pricing can leave when costs rise
Source: ABHI Pulse of HealthTech 2024 survey
Target a price at 30% to 50% of the value created per procedure
A rule of thumb that leaves the buyer a visible gain; varies by evidence strength and competition
Solvable estimate

Most MedTech companies price reactively - benchmarking against competitors rather than anchoring to clinical outcomes and cost savings. In the NHS, where value-based procurement is increasingly the norm, a device that saves theatre time or reduces readmissions can command a significant premium if the economic argument is made correctly.

The primary root cause is a reactive pricing strategy, often benchmarking against competitors rather than establishing value based on clinical outcomes and health economic benefits.
This is compounded by a lack of internal capabilities in health economic analysis and value proposition development, leading to an inability to articulate and capture the true economic value of innovative MedTech devices within the UK healthcare system, particularly with the increasing prevalence of value-based procurement in the NHS.

A health economic model costs £15,000–£40,000 to commission (ABHI, 2024)

Increased pressure on sales and marketing teams to meet revenue targets
Diversion of resources to defend pricing rather than focus on innovation
Reduced profitability and lower return on investment for R&D
Foregone revenue opportunities from underpriced products
Delayed patient access to innovative, clinically superior devices
Suboptimal patient outcomes if lower-value, cheaper alternatives are adopted
Perception as a 'price-taker' rather than a 'value-creator' in the market
Erosion of brand equity and trust among healthcare providers

What it looks like in practice

Frequent price erosion requests from NHS procurement teams
Difficulty in securing formulary inclusion or preferred supplier status
Sales teams struggling to articulate value beyond features and benefits
Loss of market share to competitors with superior value propositions, even if their product is clinically inferior
Inability to reinvest sufficiently in future innovation due to constrained margins.

Paul Robinson

14 years in UK private healthcare

I solve this one for healthcare companies

Want a hand? I'll look at your situation and tell you the three things I'd tackle first.

A few quick questions, about two minutes. I read every one myself and usually reply the same day.

No sales call unless you ask for one. Just a straight answer from me.

I reply personally, usually the same day.

Questions

Frequently asked questions

What if NHS procurement just wants the lowest price?

Framework tenders often weigh price heavily. Value cases matter most in direct evaluations, with clinical and finance leads before a tender, and in private hospitals.

Do private hospitals pay more than the NHS?

It depends on the device and the deal. Keep NHS and private offers separate so one does not set the other.

How strong does our evidence need to be?

Strong enough that the buyer's finance lead accepts each input. Local audit data from one UK site often persuades more than a large trial abroad.

Should we publish list prices?

Usually not for devices sold through negotiation. Publish for low-cost items sold to small practices.

How often should we review price?

Every year, through a review clause agreed at contract.

Looking for help keeping NHS and private prices apart?

See: Your NHS pricing is undermining your private hospital contract negotiations

Last reviewed: 4 November 2026

Sources

ABHI Pulse of HealthTech 2024 survey

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The short answer

Do it yourself: step by step

1Quantify the value1 to 2 weeks · £0 to £15,000 with a health economist (Solvable estimate: up to about 15 days of specialist time)

2Source every input1 to 2 weeks · £0

3Set a value share and a floor1 day · £0

4Build a buyer calculator1 week · £1,000 to £5,000 (Solvable estimate: 2 to 10 days of an analyst or developer)

5Train the team to sell valueHalf a day · £0 to £3,000 (Solvable estimate: in-house, or an external trainer for half a day to a day)

6Trade, do not give, discountsOngoing · £0

7Add annual price review clausesAt each contract · £0 to legal fees