The Procurement Act 2023 represents the most significant change to UK public procurement rules since the UK’s departure from the EU. The new legal framework, which is designed to streamline outdated procurement regulations, includes measures aimed at prioritising openness, efficiency and better value for public spending.
The legislation is much more than a procedural update for healthcare suppliers chasing NHS contracts. It changes the way that public contracts are advertised, awarded and monitored. These revised procurement processes must now be fully adopted by the public sector, from NHS England to Integrated Care Boards (ICBs) and trusts.
The Cabinet Office hopes that this reform will allow it to replace legacy public contracts regulations with a more transparent one, which is in line with post-Brexit sovereignty and international obligations.
What Is the Procurement Act 2023 and Why It Matters
The UK’s approach to public procurement has undergone a transformative step with the Procurement Act 2023. The new procurement regime is designed to modernise and simplify procurement processes so that it is easier for small businesses, start-ups and social enterprises to access public sector opportunities. The Act 2023 streamlines procedures and simplifies them, making it possible for a greater number of suppliers to take part in public contracts.
Strengthened social value is a key focus of the Procurement Act 2023. Contracting authorities must now consider the cost of their procurement decisions, but also their social and economic impact. It means that public procurement is not just about price anymore; it’s about delivering long-term value for communities and making sure that taxpayers’ money is well spent.
The Act also increases transparency and accountability throughout the procurement process. The government is trying to make procurement decisions more open and accessible so that they can achieve best value and public trust. The Procurement Act 2023 is ultimately a part of a bigger government mission to establish a more efficient, effective and socially responsible public procurement system that focuses on commercial capability, social value and sustainable outcomes for the public sector.
Key Changes Impacting Healthcare Suppliers and Public Procurement
New Public Procurement Procedures
The Competitive Flexible Procedure is at the heart of the new approach to procurement. The model enables buyers to utilise a broader range of tools to shape the competition and, in particular, to select the most effective ways to deliver healthcare services.
With more flexibility, the expectations also increase. Today, suppliers must develop more detailed requests for proposals from local authorities procuring health care services, showing how they are the best choice, not only the least expensive.
Transparency Requirements
Every part of the commercial lifecycle is now more open due to the new procurement act. It is now required for contracting authorities to make public several notices, for example:
- Market engagement updates from the beginning
- Announcements of plans to award
- Post-award modifications
Due to these expanded notifications, it is essential to maintain a close watch. If businesses selling to the NHS do not keep up with these changes, they might miss out on chances to engage with the NHS.
Supplier Debarment and Exclusion Rules
With a central debarment register, government contracting can be managed more efficiently across all public bodies. If a supplier has a history of ethical issues, financial problems or lacks cyber accreditations, they might be excluded.
Contract-eligible status will depend on having strong governance, good financials and certifications such as Cyber Essentials or ISO standards.
Social Value and Public Benefit Emphasis
Echoing the National Procurement Policy Statement, the Act deepens the role of social value in contract awards. Under the new approach, public sector buyers must consider outcomes that deliver long-term value to communities.
Healthcare suppliers must do more than quote prices—they’re expected to deliver social and environmental impact. This could include emissions reductions, apprenticeships, or working with social enterprises and small businesses in the supply chain.
Specific NHS Contracting Considerations Under the Act
Although the Act affects all relevant authorities, NHS organisations face some specific implications. Currently, framework agreements and DPS (Dynamic Purchasing Systems) remain valid, but buyers can decide to restructure or re-tender them to comply with the new rules.
In addition, all NHS England, ICBs and NHS trusts should use the expanded notice regime and ensure this is visible in their audit trails. It means stating the award standards at the start and following more stringent rules for supplier communication.
Stricter procedures could lead to more notices appearing in the press, and many of them will be urgent. Those who used to share information by direct message or word of mouth will have to get used to a new system.
Risks of Non-Compliance for Healthcare Suppliers
Failing to follow the new Procurement Act 2023 can put organisations in serious danger. If the updated procurement regulations are not followed, it could result in:
- Ineligibility for awards due to failure to meet mandatory requirements
- Not being aware of new notices and missing the chance to participate
- Disputes that arise when the submission criteria are misunderstood
Also, suppliers using old social value statements or expired ISO certificates might not be accepted. These kinds of mistakes can be avoided, but they are becoming more costly with the new procurement act.
How Healthcare Suppliers Can Prepare Now
Preparation isn’t optional—it’s urgent. NHS suppliers need to assess their readiness to trade under the Procurement Act 2023.
Step 1: Audit Your Bid Process for Gaps in Your Process
Ensure your teams are familiar with the Act’s terminology, deadlines, and strategic goals. Have you examined how your business interacts with contracting authorities? Do you feel comfortable responding to proposed contract notices?
Step 2: Refresh Policies and Certifications.
Revise your ESG statements, social value metrics, cybersecurity credentials and sustainability plans. These are now key to award decisions.
Step 3: Monitoring pre-tender activity and early notices
Track soft market testing, pipeline forecasts and intent-to-award notices to engage earlier in the commercial system. Real-time visibility is possible using a central digital platform such as HCI.
Step 4: Aligning your proposals to new evaluation priorities
Demonstrate both technical fit and social and economic value. Demonstrate how your bid shows taxpayers’ money is being spent on services which deliver social impact and environmental accountability.
How HCI Contracts Supports Healthcare Suppliers
Healthcare Contracts International (HCI) was built to help suppliers not just keep pace, but lead in this evolving public sector procurement environment by helping you manage contracts effectively and understand the provider selection regime.
Some of the key benefits of working with HCI include:
- Real-time alerts for notices issued under the Procurement Act 2023
- Early visibility into changes to framework agreements or retendered contracts
- Custom dashboards filtered by authority, region, or service type
- Templates and checklists for remaining compliant with secondary legislation and the Procurement Act 2023 protocols
- Insights into contracting authorities’ behaviours, especially those reshaping the delivery of health care services under the new rules
Whether you’re a medium-sized enterprise, an existing provider, or part of a multinational supply chain, HCI’s structured tools equip you to respond with precision, clarity, and confidence to the new regulations.
Seize the Advantage Now
The Procurement Act 2023 is a significant revamp of how public funds are awarded and who is eligible to receive them, rather than just another layer of restrictions. Rapid adaptation will enable healthcare providers to capitalise on new opportunities and strengthen their relationships with contracting authorities. Suppliers can thrive in the new procurement environment by modernising their systems, monitoring for early indicators, and incorporating social value into every bid. The sooner you take action, the stronger your position will be. Schedule a free demo to learn more about how HCI might benefit your company.
