A Comparative Analysis of Healthcare Supply Chain Models: Insights from the United Kingdom’s NHS and China’s Volume-Based Procurement System

Abstract

The healthcare procurement systems are crucial for achieving financial efficiency and clinical effectiveness in national health services. The paper includes a comparative evaluation of two major health care procurement systems: the procurement system of the United Kingdom based on the National Health Service (NHS), and the theoretically based system of procurement in China, which is the National Volume-Based Procurement (NVBP). The research includes a comprehensive literature review and policy analysis of their organizational structure, operation, cost-efficiencies, and governing mechanisms. The findings indicate that, on average, China has achieved relevant cost savings in pharmaceuticals and devices through centralized buying and competitive bidding. The NHS system, however, has been reporting good performance in terms of quality assurance, transparency, and involvement of stakeholders, whereby the governance is partially decentralized but coordinated. According to the comparative analysis, China’s adapted model excels in achieving high cost-containment on a large scale; however, the NHS’s adapted model prioritizes quality, accountability, and sustainability. Both systems provide curative lessons: NVBP focuses on the benefits of centralization and volume guarantees, and NHS focuses on the necessity to engage the clinics and make purchasing decisions on an evidence-based basis. The paper concludes that hybrid solutions, including cost-effectiveness, governance, and quality standards, may be the most suitable solutions in health care systems in the world. These lessons are included in the general discourse of global healthcare supply chain management and can be used to inform future policy-making in providing cheap, innovative, and quality services.