Private procurement process

Unlike public procurement, private procurement is carried out by for-profit organisations (usually Privately-owned companies). In the private sector, there is much more flexibility and agility in creating budgets for procurement. This makes the process of purchasing goods and services more accessible. While companies do not have to submit to government scrutiny, they must consider the decisions of boards, owners, consumers, and shareholders [1].

Some of the consumer segments found in this case are:

• Hospitals: mainly privately owned or managed.
• Health Insurance companies.

Although the private procurement process is more agile and flexible, it is more profit-driven and less likely to be used to support innovative or pre-commercial solutions.

 

References

[1] Kodiak Hub Community. Public vs. Private Procurement: What’s the difference? Accessed June 24, 2022. https://kodiakhub.medium.com/public-vs-private-procurement-whats-the-difference-d68aef7e0006