Gus Tugendhat, founder of Tussell, a provider of data on public sector contracts, spoke to techUK on the latest findings from their research into procurement trends across the NHS in England.
Gus’ presentation was followed by a panel discussion, where we heard from:
Tom Slater, Commercial Director, NHS Digital
Charlotte Lee, UK Director, BigHealth
Tom Scott, Sales Director, Alcidion
Tussell analysed data from over 63, 000 invoices paid by healthcare bodies to tech companies since 2016, looking at three main areas.
The size of the healthtech market
Since 2016, healthcare spending on tech has grown by 17% annually, averaging £1.4 billion per year. NHS Trusts account for 53% of healthtech spend, though in practice spend increasingly goes through Integrated Care Systems (ICSs).
Tussell highlighted that, adjusting for population, tech spending per capita by London-based Trusts was three times greater than the amount in the North East of England. This insight suggests that initiatives designed to boost NHS trusts that are already doing well and help those falling behind are increasing disparities in quality of care.
Who is driving supply and demand?
Tussell have found that overall, the healthtech market is growing fast and disaggregating. While the average Trust spends £22 million per year on healthtech (9% of their non-clinical third-party procurement spending), more than half of this spending is going to the top 20 suppliers. However, these top suppliers have lost market share over the last 5 years, mostly to non-SMEs. It is likely this share of the market would have decreased even further had it not been for the COVID-19 pandemic.
Although there is a bias towards extending the existing contract, looking at these trends helps identify where it is worth pre-engaging with potential customers to make the case you can offer a better cost.
Where are the new business opportunities?
In total, there are 732 contract awards worth £595 million rolling off in the next 15 months.
The panel discussed spending on prevention versus spending on ‘sickness’, as it is likely that preventative spend will move increasingly to local authorities rather than CCGs. Although a focus on prevention is a high priority for Government, spending data indicates that the NHS still priorities reactive spending.
techUK’s recently published Ten Point Plan for Healthtech made a number of recommendations focusing on procurement, from signposting suppliers to existing frameworks to providing an accurate estimate for their total value and ensuring specialist training for staff buying technology. You can read the report to find out more here.
Alex Lawrence
Head of Health and Social Care, techUK
Alex Lawrence
Head of Health and Social Care, techUK
Alex joined techUK in July 2021 as Programme Manager for Health and Social Care. Since July 2023 Alex has led the Programme.
Alex formerly worked at Portland Communications, joining as part of their 2019 Graduate Scheme intake. In March 2020 she joined Portland’s Health team, supporting a range of clients in the life sciences industry across both public affairs and strategic communications.
Alex has a degree in History from the University of Cambridge, focussing on Early Modern Europe and material culture. Outside of work she enjoys reading, finding new places to eat, and running.
Robert joined techUK in October 2022, where he is now Programme Manager for Health and Social Care.
Robert previously worked at the Pension Protection Fund, within the policy and public affairs team. Prior to this, he worked at the Scottish Parliament, advising politicians and industry stakeholders on a wide range of issues, including rural crime and health policies.
Robert has a degree in Politics and International Relations (MA Hons) from the University of Aberdeen, with a particular focus on strategic studies and energy security. Outside of work he enjoys activities such as running, rugby, boxing and cooking!
Clara joined techUK in October 2023. She brings experience across a range of domestic and global health issues, with particular focus on digital health, HIV/AIDS and climate change and health.
Clara holds an MSc in Global Health and Development (University College London) and a BSc in Psychology (University of Birmingham).
Tracy Modha
Team Assistant - Markets, techUK
Tracy Modha
Team Assistant - Markets, techUK
Tracy supports several areas at techUK, including Cyber Exchange, Cyber Security, Defence, Health and Social Care, Local Public Services, Nations and Regions and National Security.
Tracy joined techUK in March 2022, having worked in the education sector for 19 years, covering administration, research project support, IT support and event/training support. My most outstanding achievement has been running three very successful international conferences and over 300 training courses booked all over the globe!
Tracy has a great interest in tech. Gaming and computing have been a big part of her life, and now electric cars are an exciting look at the future. She has warmed to Alexa, even though it can sometimes be sassy!