NHS Chop and Change

With the birth of Foundation Trusts what is the potential impact on the medical devices industry?

A recent White Hall paper makes specific references to English hospitals becoming “a vibrant industry of social enterprises…” whilst the NHS aims to achieve £20 billion in savings by 2014. So what does this mean in terms of changes to the way hospitals are run and more importantly, what impact does this have on the medical devices industry and medical devices representatives at the coal face?

The establishment of Foundation Trusts to represent hospitals(to be in full swing by 2013) aims to create self-autonomous, employee and patient led bodies, which are less dictated to by central government and more able to compete with private sector institutions on results and technology. Health Secretary, Andrew Lansley maintains this structural change will increase choices for patients improve standards of patient care and give operational and financial control at regional local level; something doctors and GPs will not be used to doing.

Whilst many clinical professionals and trust managers will support the idea of greater budget control and decision making powers, there will be an expectation to supersede previous clinical standards and patient outcomes, to meet with technological innovation and fulfil strict Lib-Con budget cuts.

Surely the consequence will mean “winners and losers” in the medical devices industry and a survival of the fittest i.e. the most innovative device companies? With a longer life expectancy, an increase in obesity, weight related conditions and the taboo of infection control scares within hospitals, surely the future success lies with products that adapt themselves to such trends whilst providing long-term value. Products that can be used at home by the patient to self- administer therapy, to give a better quality of life and more comfortable treatment for the patient? A shift towards telehealth and telecare to reduce time in hospitals, free up beds and free up resources? But these come at a higher cost? Will these ideas justify the upfront spend further down the patient care pathway and will doctors cope with their new budgetary powers and spend wisely?