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RESEARCH · HEALTHCARE · PROCUREMENT

How European hospitals can buy something that does not exist yet

Public procurement is built to buy what is already on the market. Digital health innovation frequently is not - which is why European law provides three separate routes for it. This is a plain-language overview of those routes and of the business case a procurer has to build before using any of them.

Procurement models analysis, 2026

Market reportPartnerMethodology noteConsortium material - general information, not legal advice

The problem this is meant to solve

A hospital that wants a solution nobody sells yet is in an awkward position. Standard procurement compares offers for an existing product; there is no catalogue entry for something that still needs development, and a procurement team that improvises around that creates legal risk for itself. European procurement law recognises this and provides dedicated routes. They are genuinely used - and they are also genuinely demanding, which is why innovative suppliers and public buyers so often fail to meet each other. The point of this page is to make the map legible from both sides.

Three routes, three different situations

The solution does not exist yet

Pre-Commercial Procurement

Buys research and development, not products. Several suppliers develop competing approaches in phases, and the buyer compares them. Risks and intellectual property are shared: suppliers keep ownership, the public buyer keeps licence-free rights to use what was built. PCP stops before commercial deployment - buying at volume is a separate procedure afterwards.

It exists, but nobody is producing it at scale

Public Procurement of Innovative Solutions

For solutions that are close to market but not yet widely available, including existing technology used in a genuinely new way. The buyer signals in advance an intention to purchase significant volume, which is often exactly the demand signal a supplier needs before investing in getting there.

Development and purchase in one contract

Innovation Partnership

The buyer develops the solution together with a supplier and then purchases the result under the same procedure. Convenient, but it carries real drawbacks: stricter state aid scrutiny, and a contract value and qualification requirements that in practice shut smaller suppliers out from the very start.

Five steps before the tender is written

1

Define the need, and its cost

Not the product - the problem. Gathered from the people who would use the solution: clinicians, nurses, educators. This step also has to put a figure on what the problem costs today, monetary and otherwise, because that is the baseline everything else is measured against.

2

Check what already exists

A prior art analysis: existing products, patents, standards and published research. It decides which route applies - if a solution already exists, the R&D route is not available. This step needs technical expertise, and buyers without it in-house are expected to bring it in.

3

Talk to the market, openly

Open market consultation, held before requirements are locked down, so that specifications are shaped by what is technically achievable. Done properly it is transparent and documented, and every supplier gets the same information.

4

Calculate and compare value

Benefits against costs against remaining risk, across the options identified. Including the risk that development fails - which in an R&D procurement is a real possibility that has to be priced rather than assumed away.

5

Write the documentation

The tender documents, in a form that satisfies transparency and non-discrimination and does not accidentally describe one supplier's product. This is where most of the earlier work either shows up or turns out not to have been done.

Trust is the actual bottleneck

Market consultation fails for a predictable reason: suppliers do not want to reveal what they can do in an open room, and buyers do not want to look as though they have pre-selected somebody. Both are reasonable fears, and between them they produce consultations where nothing useful is said. One answer used in the Netherlands is a two-stage model with an independent facilitator - a trust agent, who is not working on behalf of the buyer. A closed brainstorming session with market frontrunners comes first, then the open market dialogue, with rules of engagement agreed on both sides. The facilitator's independence is the whole mechanism, and it is protected by who they are and how they are funded, not by good intentions.

The same law, six different implementations

All of this rests on European directives, but procurement happens under national law, and the differences are not cosmetic. The underlying analysis covers Germany, Spain, France, the United Kingdom, the Netherlands and Italy - each with its own statutory basis for innovation procurement, its own procedure names, its own thresholds and its own national initiatives promoting the practice. Spain, for example, gives innovation partnerships an explicit statutory footing and reinforces innovation procurement through its science and technology legislation. The United Kingdom runs innovation procurement under the Public Contracts Regulations 2015 alongside the Procurement Act 2023, which modernised the regime with simplified rules and a central digital platform. Each of these six countries has its own statutory basis, its own procedure names and its own thresholds, and none of it transfers automatically from one to the next.

Source

Medtronic, VR Health Champions

2026-02-01

Based on procurement work developed within the VR Health Champions project by Medtronic. Summarised and published by Metaskills for general information. This does not constitute legal advice and does not represent an endorsement of Metaskills by Medtronic.

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