National Initiatives Impacting Healthcare Information Technology (HCIT) in the United Kingdom ehealth Action Plan to Increase HCIT Market Maturity
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1 National Initiatives Impacting Healthcare Information Technology (HCIT) in the United Kingdom ehealth Action Plan to Increase HCIT Market Maturity January 2015
2 Contents Section Slide Number Executive Summary 5 Healthcare Market Overview United Kingdom 9 Healthcare IT Market Overview United Kingdom 22 Key Healthcare IT Initiatives United Kingdom 26 Key Healthcare IT Initiatives England 30 Key Healthcare IT Initiatives Scotland 33 Key Healthcare IT Initiatives Wales 36 Key Healthcare IT Initiatives Northern Ireland 39 Key Healthcare IT Pilot Projects United Kingdom 42 The Last Word 48 Appendix 52 2
3 Research Methodology The objective of this research service is to present an analysis of initiatives impacting healthcare information technology (HCIT) in the United Kingdom. The regional scope of this research includes England, Scotland, Wales, and Northern Ireland. Frost & Sullivan follows a 3-step methodology to develop the analysis represented in this research service. Internal Expertise Frost & Sullivan uses the expertise of global research staff and its internal databases to develop insights into the HCIT market. Secondary Research Secondary research is utilised to develop a baseline understanding of important HCIT initiatives and identify key stakeholders for the primary research phase. Primary Research Approximately 80 to 90% of the data provided through primary research is focused on obtaining specific information from key market participants by means of telephone interviews. The information collected by the above methods was analysed and aggregated to produce this research service. 3
4 Scope and Segmentation The scope of research revolves around healthcare IT strategies in the primary and secondary care sectors in the United Kingdom. The study covers market adoption of various healthcare IT segments, focus areas, and type of contracts, specifically analysing the roles of government, National Health Service (NHS), regional healthcare, and regulatory authorities in the healthcare IT roadmap. The study also documents important pilot and commercial healthcare IT projects and opportunities for healthcare IT vendors in various market segments such as telehealth and telecare, chronic disease management, electronic health record, and other ehealth solutions. 4
5 Key Findings Total UK healthcare expenditure is higher than the average spent by countries in the Organisation for Economic Co-operation and Development (OECD), of which, % make up HCIT investments. The NHS in conjunction with the department of health (DoH) and the UK government have goals of improving productivity and quality standards. Therefore, investments in HCIT solutions are being encouraged towards maximum resource utilisation at optimised costs. Electronic health records (EHR), telehealth, eprescribing, and remote monitoring for self/home care are the main HCIT solutions being focused on in order to achieve cross-border healthcare, long-term management of chronic diseases, and increasing patient engagement. Healthcare delivery in the United Kingdom is being restructured to improve the cohesion between secondary and primary care segments. Therefore, healthcare professionals and patients, and HCIT solutions will have a significant role to play in this transition. Furthermore, increase in budgets allocated to HCIT investments and revamping of legal and financial regulations (especially reimbursements) are expected to be conducive towards driving HCIT adoption in the United Kingdom. The United Kingdom has high HCIT market penetration aided by several existing long-term initiatives driving adoption. However, the failure of several large investment initiatives has led the United Kingdom to introduce the ehealth strategy and ehealth action plan, The key differentiating element in the UK s latest initiative is the shifted focus from a nation-wide strategy to locally-managed solutions. Since 2010, several successful pilot projects for HCIT have been carried out, demonstrating improved outcomes. The commercialisation of these projects provide potential market opportunities for HCIT vendors. 6
6 CEO s Perspective 1 ehealth initiatives will add impetus to the adoption of HCIT and provide a potential market opportunity for vendors. 2 The establishment of interoperability standards and amendment of EU medicaldevice directive to include HCIT solutions will increase market maturity. 3 Increased HCIT budgets, commercialisation of pilot projects, revamped HCIT reimbursement, and amendments to the physician pay schedule will drive market growth. 7
7 Executive Summary 3 Big Predictions 1 The ehealth action plan, which is expected to be fully implemented by 2017, will increase demand for HCIT solutions. 2 The NHS, DoH, and UK government are focusing on a localised strategy for ehealth adoption; regions in the United Kingdom such as England, Wales, Northern Ireland, and Scotland are making considerable progress in fulfilling this action plan. 3 This new ehealth initiative is expected to increase collaboration between care segments, enable patient centricity, improve interoperability, and encourage high resource utilisation at optimised costs. 8
8 Key Healthcare Statistics Key Takeaway: UK healthcare expenditure is higher than other EU countries healthcare costs. Furthermore, the UK healthcare budget is billion compared to its billion and billion budgets for education and defense respectively. Healthcare Market: Key Healthcare Indicators, UK, Key Indicators for Healthcare Market Gross domestic product (GDP) in $ billion GDP per Capita ($) Total Healthcare Expenditure (THE) in $ billion Total Healthcare Expenditure per Capita in $ Private Expenditure as % of THE (PvTHE) Out-of-pocket payment as % PvTHE UK healthcare is a combination of public and private healthcare systems managed by the NHS. Total health expenditure (THE) per capita in the United Kingdom is higher than the average expenditure of the OECD; also, the standard of healthcare services provided in the country is of superior quality. By streamlining the healthcare expenditure and budgeting process, the NHS expects to save billion by It plans to reinvest these funds into improving care standards, quality, and outcomes. This health bill will give the NHS greater functional freedom and help prevent political micromanagement. The NHS was expected to face a budget shortfall between billion and billion by 2014 unless it seeks to innovate to deliver the twin challenges of increased quality and productivity. Spending the healthcare budget prudently and innovatively will help contribute to better healthcare quality and more productive patient-care; it can also improve the economy in important industrial sectors such as life sciences. To improve productivity in UK healthcare, the role of clinicians in healthcare planning and delivery is being augmented. Flexibility in hospital settings is increased with healthcare providers being given freedom to innovate and stronger incentives to adopt best practices. Improved hospital settings will make it conducive for innovative healthcare technology such as interoperable solutions to enter the UK healthcare market. Source: World Health Organisation; OECD Statistics; Frost & Sullivan 10
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