Medical Devices & CAPEX

The True Cost of Robotic Surgery: What the Price per Procedure Leaves Out

Examining the Financial Commitments, Contractual Obligations and Operational Assumptions Behind NHS Robotic Surgery

In this briefing
  1. Introduction
  2. Procedure Volumes and Utilisation
  3. Instruments and variable costs
  4. Training costs and platform dependency
  5. Theatre Capacity and Operating Costs
  6. Costs before full utilisation
  7. Who Sets and Validates the Volume Assumptions?
  8. Comparing whole-life costs across Suppliers
  9. Turning cost into measurable value
  10. Evidence obligations and the business case
  11. Looking ahead
  12. About the Author
  13. FAQs
  14. References
  15. Disclaimer

Introduction

The NHS England and GIRFT (Getting It Right First Time) implementation guide says robotic programmes need high volume so that fixed costs, such as capital purchase and annual servicing contracts, are spread thinly across each case.1The cost per case depends on total programme costs and the number of procedures performed.

Three different figures can be called “cost per procedure”: what the supplier charges when a procedure is billed, what the procedure costs the trust once fixed, variable and operating costs are allocated to it, and what the NHS pays the trust for performing it. They don’t move together as activity grows.

Part 1 looked at the structure around the platform. This part looks inside the price: what it contains, who wrote each part of it, and when anyone looks at the whole.

Procedure Volumes and Utilisation

Start with the count. The GIRFT guide reports 41,134 episodes coded as robotic in England in 2023/24, up from 3,099 in 2011/12, and says the figure is probably an underestimate because coding is incomplete.1NHS England’s projection starts from 70,000 operations in the same year.2The two come from different sources. A per-procedure cost is only as stable as the count beneath it, so the choice of count matters. Which one will the 500,000 be measured against, and which does each trust’s business case use?

The guide also records over 140 robotic systems, excluding orthopaedic, installed in NHS trusts in England, taken from the National Equipment Tracking and Inventory System and again probably an underestimate.1It notes a gap between existing…

Continue with membership

The rest of this briefing is available to active CPO Insights members.

This briefing reflects the author's analysis and understanding of the market, based on professional experience and information available at the time of publication. It is provided for information and discussion and is not legal, financial, investment or other professional advice. Full disclaimer.

About the author

Ajay Channana is a senior procurement and commercial practitioner with more than two decades of senior commercial leadership experience across public and private sector organisations. He established Ipso Facto Consulting Limited in 2016.

Need deeper intelligence?

Bespoke commercial intelligence on markets, spend categories and sectors, from public or private perspectives.

Receive new CPO Insights briefings

Receive the commercial developments, deals and procurement signals worth watching. Enter your email and we will send a 6-digit code to confirm it is yours.

Confirm your email to read briefings in full. No password or account needed. You’ll also receive a digest of new releases. Unsubscribe at any time; we never sell or share your information. Privacy notice