Innovative Public Procurement and

Health Care - Nordic Lighthouse Report

Danish Architecture Centre December 8 2011,

by Kristian Mørk Puggaard

www.damvad.com

DAMVAD in short

32%

18%3%

36%

11%Økonom

Cand.merc

Naturvidenskab

Statskundskab og samfundsvidenskab

Sociologi og socialvidenskab

Copenhagen, Oslo Market

Academic partners 40 employees

POINT OF DEPARTURE FOR THE NORDIC LIGHTHOUSE PROJECT

Public procurement of innovation in health care has gained increased attention from policymakers Procurement of innovation is demanding Lack of best practice examples

POINT OF DEPARTURE FOR THE NORDIC LIGHTHOUSE PROJECT

Drivers for the market potentials

Nordic health spending pr. capita USD PPP

TOWARDS A DEFINITION OF INNOVATIVE PROCUREMENT

Defined need, solution, and functional specifications

Defined need and functional specifications, but the solution is unknown

Defined need, but everything else is unknown

Defined end goal, but everything else is unknown

Seen before and standardised

solutions

New and unknown solutions

DIFFERENCES IN THE NORDIC MARKET FOR PUBLIC PROCUREMENT

Country Procuring organisations Market characteristic

National Regional Local

Denmark SKI 5 Regions 98 municipalities

Centralised

Finland Hansel Ltd. 20 Hospital districts

336 municipalities

Highly fragmented

Iceland State Trading Centre

7 health institutions and Landspitali

Health institutions

Centralised

Norway Procurement services for Health Enterprises

4 Regional Health Authorities

430 municipalities

Fragmented

Sweden SKL 17 county councils and 4 regions

298 municipalities

Highly fragmented

SELECTION OF CASES

True best practice is identified beyond the discursive level

Pro

gress thro

ugh

ou

t the stu

dy

Discourse level

Practice level

Best practice level

Six cases

Elements Methodology

1. Map the procurement area in the Nordic countries

Desk research

2. Identifying best practice

Engagement of experts Telephone interviews Snowball survey LinkedIn groups

3. Descibe and analyse the best practices

Interviews

SIX CASES AS BEST PRACTICE IN THE NORDIC COUNTRIES

Dialogue Feasibility Study

Tendering Evaluation Disseme-nation

Project Design

The Intelligent Hospital Bed

PVC-free Blood Bags

Meal Services for the Elderly

The Core Laboratory

Innovation Chain

Care +

Supportive Housing Services

Denmark

Sweden

Sweden

Iceland

Finland

Norway

Identification of needs Development of Tenders Implementation

Regional level

Local level

MAIN FINDINGS

Legal Framework Complicated, but is not preventing innovative procurement Legal counselling and support is important

Process and Dialogue Useful and necessary when carrying out innovative procurement. Increases public sector market knowledge as well as the companies’ knowledge of user needs

Incentives

Demonstration and first sale gives commercial incentives to companies Public sector aims for better solutions

Risk Management Risks are inherent and inevitable in innovative procurement. No indication of formal risk management. Risks have been handled as they emerge.

HOW TO PROCEED?

Identify suppliers

Procurement in public innovation Source: MEasuring Public Innovation 2011

Procurement in public innovation Source: DAMVAD for the Region of Northern Denmark 2011

Identify need

Create interaction

Contact

Kristian Mørk Puggaard

kmp@damvad.dk

T + 45 40824861

Possibilities in knowledge

DAMVAD

Badstuestræde 20

1209 København K

Denmark