Peter Dohmen

Peter Dohmen is a consultant in health care procurement and part-time PhD student at the Erasmus University Rotterdam in the Netherlands. Peter is associated with the Best Value Group, a Dutch consultancy firm helping organizations to improve their purchasing performance. In both his work as a researcher and consultant Peter focuses on changing business relationships between purchasers and providers of health care services as well as the implementation of value-based procurement strategies. Peter holds a master degree in health science and a bachelor degree in law. He has over 12 years of experience in health care procurement and strategic consulting. 

It’s great that value-based procurement is being introduced into the healthcare procurement world, as I truly believe this is the way to tackle the challenges we face in healthcare today. Though, I do wonder whether we really understand the meaning of this approach and how we can use it in a way it contributes to maximum added value in the healthcare system. Regularly, I see buyers and suppliers struggling with translating the concept of value-based procurement into their real-time procurement strategy. Although, incorporating quality indicators when developing tenders is a good start, much more can and need to be done to truly operate value-based. Value-based procurement is about having a different view on the business relation between suppliers and buyers, having an ever-present ambition to add value to the services and inputs for patients, and being only satisfied with a win-win-win (buyer-supplier-patient) strategy. But how can we change our traditional procurement practice into a truly value-based driven approach? For me, it’s about adding new business models to the value-based procurement toolbox. For example, recently I got acquainted with the Vested business model : a model in which parties are equally committed (vested) to each other’s success through a ‘win-win’ deal structure. This is realized through the combination of an outcome-based economic model and a relational contracting model. Developed by Kate Vitasek (University of Tennessee), I truly believe this model can be used to make value-based procurement happen, as it uses 5 rules that match the value-based procurement approach. These 5 rules are: 1. Focus on outcomes, not transactions The Vested model moves to an outcome-based business model where the service provider is paid for achieving results, not just for performing tasks or activities. Defined outcomes create a culture where the buyer and the service provider will maximize their profits by...