The Government might be making “analogue to digital” one of its missions to “fix” the NHS, but according to data captured by the Association of British HealthTech Industries (ABHI) and CPI, the challenges facing the UK’s HealthTech industry have continued to grow for the third consecutive year.
ABHI is the UK association for health technology (HealthTech) with members comprising multinationals as well as small and medium sized enterprises (SMEs) who supply products from syringes and wound dressings to surgical robots, diagnostics and digitally enhanced technologies.
Following a year marked by regulatory uncertainties and persistent, increasing barriers, the industry, which employs over 150,000 people, finds itself at a critical juncture. Regulatory concerns continue to cause half of the sector to delay bringing innovations to the UK. Additionally, 30% of companies are not bidding on NHS tenders due to unworkable requirements that are singularly focused on unit price – often below the cost of production – rather than the total value achieved across clinical pathways.
Compounding problems
These challenges are compounded by the rollout of carbon reduction requirements across the NHS, which despite being well-intended and having the fundamental backing of the industry, the ABHI believes still lack clear guidance and support measures. Costs in regulation, sustainability, freight services and labour have all risen at pace, almost matching those increases seen in 2023 despite the subsequent fall in inflation. Furthermore, the fee increases recently proposed by the Medicines and Healthcare products Regulatory Agency’s (MHRA) are set to exacerbate the situation further.
Optimism
Amidst these issues, there is optimism regarding the Government's commitment to the HealthTech sector as a driver of economic growth. Over 30% of companies surveyed intend to expand their R&D and manufacturing investments in the UK, indicating confidence in future opportunities. Furthermore, the UK is recognised globally for its proficiency in evaluating technologies and fostering a research-friendly environment.
Industry stakeholders are particularly enthusiastic about programmes aimed at addressing these challenges, such as the MHRA’s proposed international recognition framework. This is anticipated to significantly enhance the UK's attractiveness, with four times as many companies favouring it over any other initiative. Survey data support that realising the full potential of HealthTech is possible. Urgent action, however, is required to address the challenges that reduce patient access to lifesaving and life-enhancing technologies and which stifle innovation.
Peter Ellingworth, Chief Executive of ABHI, said, "UK HealthTech is at a crossroads. Regulatory uncertainties and NHS challenges are repeated hurdles that are driving companies, and consequently their technologies, to more receptive markets abroad. There is immense potential if we navigate these challenges wisely, and it is in the interest of the NHS and the patients that our industry serves to correct these trends. Immediate and prompt action is needed. The Government's renewed focus is promising, and with strategic investments and clear policies, we can cement the UK's position as a global hub for HealthTech."
The survey captures data from HealthTech businesses operating in the UK. The full survey report can be accessed here.
