Philips report: NHS transformation relies on optimisation of technology, as financial challenges impact investment opportunities for leaders
Optimisation of technology could help overcome NHS digital transformation hurdles as financial challenges slow investment, Royal Philips (NYSE: PHG, AEX: PHIA), a global leader in health technology, has revealed.
In November 2024, Philips released the results of its Future Health Index UK&I report, which highlights that technology is on track to change the way care is delivered. The study of 200 UK healthcare leaders found that most leaders (85 per cent) see automating repetitive tasks as critical to relieving staffing pressures across the NHS, and three quarters (76 per cent) see automation as key to empowering the healthcare workforce to perform at their highest skill.
Yet, investment in new medical equipment and technological solutions is difficult amidst financial challenges within the NHS.
Nearly all healthcare leaders are facing economic gaps or financial challenges (97 per cent), and 77 per cent have faced delayed, limited, or no investment in medical equipment and technological solutions. Alongside this, seven in 10 (71 per cent) say that shortages of equipment or staff have led to longer waiting times and delayed access to care.
Lord Darzi’s recent review1 revealed that NHS transformation has been stunted by lack of spending on health assets and infrastructure over the past decade, while NHS Providers recently found that 51 per cent of NHS leaders were extremely concerned about delivering operational priorities within their organisation’s 2024/25 financial budget2. Looking ahead, the Autumn Statement is expected to announce further tightening of UK budgets later this month.
Now more than ever, efficiency will be a fundamental focus for the NHS. Philips urges healthcare services to invest sustainably and optimise existing technology if they are to drive change amidst ongoing pressures.
“Lord Darzi’s report findings show the critical condition of our NHS, and it is undeniable that reform is needed. The vital signs are strong and results of our Future Health Index report already show that technology is on track to change the way care is delivered via the use of automation, generative AI, virtual care and data insights,” said Mark Leftwich, Managing Director, Philips UK & Ireland. “Deploying technology at scale across the boundaries between primary and secondary care settings can support the NHS’s transformation. With foreseen funding challenges, focus must be on the optimisation of systems using digital innovation to drive crucial operational productivity and financial gains, whilst shifting care closer to home. Only then can we provide better care for more people and unlock the NHS’s true value.”
Data barriers risk impacting care
Looking ahead, leaders are optimistic about the potential for data driven care. They see the biggest opportunities in optimising treatment plans and care pathways (56 per cent) and reducing hospital readmissions (39 per cent).
Healthcare leaders also believe that improved accuracy of patient data (62 per cent) and interoperability between different platforms and healthcare settings (60 per cent) are critical to deliver better care to more people. This could enable further innovation and transformation in healthcare.
However, data barriers persist within the NHS. Almost all (94 per cent) healthcare leaders say their organisation experiences data integration challenges that impact their care provision.
What’s more, three-quarters (76 per cent) of leaders noted a lack of healthcare data for underserved communities in their areas. This could be impacting access to care, making it difficult to develop strategies to overcome disparities in health outcomes.
More effort is still needed to drive widespread data optimisation, as only a quarter of leaders (27 per cent) see the benefit of data-driven insights in detecting medical conditions. If the NHS doesn’t overcome these data barriers, patients risk missing out on the latest healthcare innovations.
Optimisation will deliver a sustainable NHS
The link between human health and environmental health is central to sustainable healthcare. With the NHS accounting for 4 per cent of the UK’s carbon dioxide (CO2) emissions3 , Philips believes that sustainable investment could provide a realistic solution to drive innovation and efficiency, both in the long and short term.
By refurbishing and upgrading existing estates and equipment with a circular economy mindset, healthcare organisations can achieve economic sustainability and find effective solutions to financial and operational challenges.
Many are already implementing cost reductions, improving operational efficiencies and pivoting towards more sustainable practices. Financial strategies include investing in preventive care to reduce long-term healthcare costs (35 per cent) and community health (32 per cent). Meanwhile environmental tactics include virtual care technologies or remote monitoring to reduce emissions, which 73 per cent have either invested in already, or are planning to do so in the next three years.
“We know that technology can improve workforce productivity, protect wellbeing by reducing burnout, and give staff more time to focus on what matters most. Yet, at times when budgets are tight and investment isn’t increasing, we also know that overhauling existing systems isn’t always feasible,” said Mark Leftwich. “By sustainably optimising existing technology, rather than replacing it, we can keep the NHS’s innovation journey going while reducing environmental impact and delivering quality care to those who need it.”
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