GHP July 2016

ghp July 2016 | 61 Education, HR & Skills As a consequence of the United Kingdom’s vote to Leave the European Union, Frost & Sullivan sees tremendous challenges to the National Health Service’s (NHS) goal to combine savings while maintaining continuous or improved healthcare quality outcomes. There is an increasing gap in manpower as the major threat to the UK’s NHS. Shortages in primary and long term care will force hospitals to continue to bear a disproportionate burden of care provision. The Leave decision will have far reaching implications on recruitment of skilled doctors and nurses from the EU. This will invariably lead to longer waiting times and delayed care provision. The NHS has an ambitious goal to deliver on GBP 22 billion in efficiency savings by 2020. These efficiency savings are contingent on the successful transition of care away from hospitals and towards primary care and long term care providers. With the NHS currently spending the overwhelming majority of around 78 percent of its budget on hospital based care and only 15 percent on primary care and 5 percent on continuing health care and social care, efficiency savings can only be realised by a gradual shift in spending away from hospitals and towards primary and social care provision. This transition will be hampered by continued manpower and funding shortages. Combined with rising health care costs, this will most certainly result in lower quality of care provision. However, in the long run, both the EU’s as well as the UK’s healthcare systems could benefit from a higher willingness to adapt new technologies, business models and innovations. An example of a new business model which could see increased acceptance, is the concept of risk based partnerships between hospitals and suppliers, as care providers strive to make financial savings from using innovative services/solutions. Frost & Sullivan Senior Research Analyst -Transformational Health, Tanvir Jaikishen reveals that the accelerated adoption of new technologies, therapeutic applications and innovative business models will impact the European Healthcare Industry. UK’s National Health Service After Leave Vote – Silver Lining in the Long Term Despite Challenges Such as Workforce Shortages Just as the recession in the U.S. in 2008 triggered an increase in investment in technologies that supported care coordination and accountable care, this disruption in Europe, and its temporary financial impact, can be expected to accelerate the adoption of outcomes based technologies in healthcare in Europe as well. Moreover, the approval processes for new drugs or medical devices as well as the cooperation between the public and the private sector (PPP, private public partnership) can be expected to increase in Europe, as the private sector will be welcomed to take on bigger service provision role. With the planned care transition thrown in jeopardy, the NHS will need to introspect on how to plug manpower gaps, and delivery efficiency savings with reduced budgets. The approach to care provision thus far has been reactionary. With the given situation, this is expected to change. In order to create viable integrated care solutions, there will be a greater need for adoption of information technology in order to more efficiently manage care provision with fewer resources. This presents a silver lining for companies with products and services that aid in improving institutional or departmental workflow efficiencies, managing increasing patient volumes and eliminating redundancies. Medical imaging and devices companies have already begun to enter in to long term risk sharing strategic contracts with hospitals to help reduce costs and increase revenues while ensuring that hospitals continue to offer the best in care. Those stakeholders sitting on the fence will contemplate taking the plunge just as the Financial Services industry took big strides post the 2008 financial crisis. This sentinel event can be seen as the spark that can ignite a much needed healthcare services revolution. For further information, please visit: http://www.frost.com