elemental blog

Corrie Williams

Elemental founder



Cautious welcome for digital health investment promise

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Elemental Budget 24 response

Less than a few weeks after we learnt that tech budgets will be raided (again) to shore up the NHS’ ongoing costs, the Chancellor and former Health Secretary announced a £3.4bn increase in capital funding for NHS digital transformation over three years from 2025/26.

Within this, £2bn is promised to update outdated IT systems. All trusts are to have electronic patient records, MRI scanners upgraded with AI, and transfers of care digitised. A further £1bn is earmarked for admin improvements such as back office automation and £430m for tech to support patient access.  

On the surface, this sounds great, and the link to productivity improvements is an interesting steer for suppliers in the market (more on that soon).

However, the former Health Secretary’s bung will not fix the problems that plague health tech in the NHS if the bulk of the cash goes to the larger suppliers. 

We cannot rely on monolithic suppliers to solve everything

Large EPRs will never replace the functionality that best-of-breed systems bring to specific departments and functions. One size does not fit all, as seen with the abandoned EPR procurements covering four NHS trusts in the North of England.

Digital Health reported that the requirements they had issued for the procurement did not cover the functionality needed. 

NHS trusts often endure a complex technical infrastructure (and resultant processes and fiefdoms) that reflects the sporadic nature of tech funding these past few decades.

Talking to customers about their circumstances provides the best way to shape technology to deliver the demanded productivity improvements.

We need to protect affordability, flexibility and innovation 

Even when the tech promises to be everything to everybody, only some hospitals can afford larger systems. Many will look to the flexibility and affordability of alternative providers who will tailor their products and services around the needs of their customers.

Suppliers who focus on innovation and interoperability will be genuinely transformative and not a casual upsell on an existing product.

In a time of dynamic invention and realignment in health technology, it is more important than ever that smaller suppliers are protected and nurtured when the money tree bears fruit. 

The government will set up an expert advisory panel to oversee delivery. We hope that members recognise the need for collaboration and agreement to ensure that suppliers play nicely with each other to ensure a healthy tech market.