There are major structural shifts on the horizon for the NHS, with the abolition of NHS England and its services being merged into the Department of Health and Social Care, as well as significant Integrated Care Board (ICB) workforce reductions, so it’s more important than ever for HealthTech companies to understand and speak the language of the NHS.

The UK HealthTech sector is entering a transformative period, driven by government policy shifts, evolving NHS structures, and rapid advances in digital innovation. For HealthTech companies, this presents both an urgent challenge and a moment of opportunity: to align with system-wide goals, prove their value, and become embedded in the future of healthcare delivery.

From hospitals to communities and treatment to prevention

The three big changes still guiding the strategic direction of healthcare in the UK are:

1. Care beyond the hospital – There’s a clear push to move care out of hospitals, with community settings like pharmacies and voluntary services playing a greater role. Technologies that enable out-of-hospital monitoring, treatment, and engagement will be vital.
2. Proactive over reactive – A shift from treatment to prevention means innovations should support early detection, patient education and engagement, and lifestyle interventions that reduce the burden on acute care services.
3. The digital transition – Moving from analogue to digital requires integrated systems, real-time data, and user-friendly technologies that improve access and efficiency.

HealthTech providers that position their solutions within these frameworks will be better equipped to resonate with NHS stakeholders which will improve adoption rates.

System integration and the power of local commissioning

Integrated Care Systems (ICSs) continue to reshape how health services are planned and delivered. Although there are large budget cuts to ICBs which will likely see more of them merge to cover larger populations, they are gaining more autonomy and financial flexibility this year, which will have an impact on innovation uptake at local level.

Trusts will become accountable to ICBs for meeting targets related to waiting times, patient outcomes, and financial performance. ICBs will play a strengthened role in financial oversight, ensuring resources are used efficiently and deficits are addressed. This creates a powerful incentive for HealthTech companies to demonstrate how their solutions can support measurable outcomes and responsible resource use.

In addition, Trusts will need to adhere to operational standards defined by ICBs, which will be closely monitored for compliance and continuous improvement. As local systems become more performance-driven, innovations that align with these standards, and support Trusts in meeting them, will have a clear advantage.

There will also be a shift toward collaborative leadership, fostering greater transparency and fair resource allocation across the system. Planning is also evolving as ICBs and Trusts will engage in more integrated, medium-term planning, informed by the 10 Year Health Plan and outcomes from the Spending Review. This move away from short-term cycles opens the door for sustainable technology investments that support longer-term transformation goals, particularly those that enable care closer to home and a shift from treatment to prevention.

Equity as a priority

As the NHS intensifies its focus on reducing health inequalities, HealthTech companies should ensure their solutions are inclusive and adaptable across diverse populations and care environments. Success will depend on demonstrating how innovations can reach underserved communities, improve outcomes, and align with local health strategies.

Value, accountability, and long-term thinking

With healthcare budgets under pressure, demonstrating clear, quantifiable value is essential. Solutions should:

• Drive system-wide efficiencies and measurable cost savings.
• Be scalable through procurement mechanisms like the NHS Supply Chain and Dynamic Purchasing Systems.
• Fit into multi-year planning cycles, supporting sustainable innovation rather than short-term fixes.
• Adhere to the new value-based procurement framework that is going to be rolled out soon and will be mandated later this year.

Addressing workforce and capacity constraints

The NHS continues to grapple with workforce shortages and growing patient backlogs. HealthTech can play a critical role in alleviating these pressures by:

• Enhancing patient flow through digital scheduling, virtual care, and remote monitoring.
• Improving efficiency at the frontlines, especially in diagnostics, triage, and administrative workflows. Innovators should provide evidence of the local impact - how their solutions reduce bottlenecks, save staff time, or improve throughput, across whole pathways – not just the unit or hospital but including community and social care implications.

Data, AI, and the future of personalised care

The expansion of Federated Data Platforms and Secure Data Environments is laying the groundwork for more integrated, data focused healthcare. These developments, coupled with AI and predictive analytics, are driving integrated data developments such as:

• Real-time patient insights
• Personalised treatment strategies
• Smarter resource allocation

HealthTech companies that use data to understand the problem, build with data in mind and continue to use data to provide real world evidence, will be better positioned to support the NHS in this new era.

Accelerating innovation adoption

While adoption has historically been slow, new frameworks and funding initiatives are streamlining the path to market. These include:

• The £30 million HealthTech Adoption Acceleration Fund.
• Enhanced support from networks like the Health Innovation Network.
• Regulatory reform aimed at simplifying processes without compromising safety.

The Innovation Ecosystem Programme, led by Roland Sinker, highlights the necessity of embedding innovation as a core function within the NHS. The report advocates for a shift from focusing on individual products to prioritising categories of innovation and broader shifts in care, such as digitalisation, prevention, and community-based services. It emphasises the importance of long-term planning horizons, spanning 3, 5, and 10 years, to effectively integrate innovation into the healthcare system.¹

Key recommendations from the report include simplifying and strengthening the structures and functions for innovation within the NHS, enhancing data access and information governance, aligning procurement processes to facilitate the rollout of tested innovations and developing commercial approaches that share value in the testing of innovations. These strategies aim to create a more cohesive and efficient innovation ecosystem, enabling the NHS to better meet the changing needs of patients and the public.²

Early engagement and alignment with government priorities will shape the next decade of HealthTech innovation. Trust, integration, and collaboration across all levels, from suppliers to frontline staff will be the foundation of sustainable progress.

What’s next?

To succeed in 2025 and beyond, HealthTech innovators should do more than create smart solutions, they need to actively engage with the NHS during a period of significant change. This means aligning with national shifts, proving local value, and fostering meaningful relationships with ICBs and other key stakeholders.

¹ https://www.england.nhs.uk/long-read/the-innovation-ecosystem-programme/

² https://www.healthinnovationyh.org.uk/news/the-innovation-ecosytem-programme-report-recommendations/