An update from Peter Ellingworth, Chief Executive of the Association of British HealthTech Industries

Peter Ellingworth is the CEO of the ABHI, the UK’s biggest healthtech trade association, representing 400 members. The MTG spoke to him about potential and challenges facing the industry. 

You’ve just released your “Pulse of the Sector” report surveying the UK’s HealthTech sector. Why have you described this as a “pivotal time” for the industry?

The UK HealthTech industry has tremendous potential, but it is facing a period of immense challenge.

Its technologies and services save and enhance lives daily, while providing employment nationwide and contributing significantly to the economy. Yet despite this critical role, the business environment in which the sector operates is one of increasing and persistent difficulty. Regulatory uncertainty continues to hinder investment, with over 80% of companies affected, and many are delaying or prioritising approvals in other markets. NHS procurement requirements are often unworkable due to impractical demands, and while the industry is fully committed to the sustainability agenda, there remains a lack of clear guidance.

However, there are immense opportunities for growth. It is encouraging that more than 30% of companies plan to expand their R&D and manufacturing investment in the UK. Our country is also globally recognised for its expertise in evaluating cutting-edge technologies and fostering a research-friendly environment. If we can translate these strengths into tangible action, the sector’s potential can be fully realised. Our manifesto outlines the practical steps needed to achieve this.

What do you believe the new government needs to do to realise the potential of medical technology in the UK?

To realise the potential of HealthTech in the UK, the new government needs to prioritise increasing regulatory clarity, improving NHS adoption mechanisms, and reform procurement objectives to recognise product and service value and consider total pathway costs rather than simply the lowest cost product.

Accelerating approval timelines aligned with global standards like the FDA will enhance the UK’s attractiveness as a HealthTech hub. Reforming NHS procurement to focus on total value, alongside clear guidance for achieving Net Zero targets, will ensure sustainability and resilience. Given the global nature of our industry, international alignment on sustainability requirements is crucial.

A greater focus on prevention and early diagnosis will be critical, and to enable this, it will be important to work with industry to build high levels of diagnosis capacity and capability in the UK.

Export will also be key, and ABHI has an extensive international programme, but there is an opportunity for the government to enhance opportunities for UK businesses with a “HealthTech Export Campaign”. As part of a long-term, well-resourced export strategy, this should target receptive countries and be guided by local HealthTech champions.

Cutting across these issues is the cost to do business in the UK, which is becoming increasingly burdensome, bearing in mind the vast majority of HealthTech businesses are SMEs. The Government’s growth agenda is welcome, but if we take the MHRA’s proposed fee increases for example, this is at odds with the Prime Minister’s recent comments that regulation should facilitate growth. This should be addressed as a matter of urgency if we are to maintain a healthy and vibrant supplier base for the NHS.

What reasons do you have to be optimistic about the UK’s HealthTech industry? And which technologies do you foresee easing the pressure on NHS services and helping patients over the next decade?

Despite the challenges, there are many reasons to be optimistic about the UK’s HealthTech industry. The UK remains a global leader in research, supported by world-class institutions and a robust ecosystem of innovation.

In terms of technologies, AI, 3D printing, and digital health solutions are poised to play transformative roles. AI-powered diagnostics, advancements in genomics, remote monitoring, and personalised medicine will enable earlier and more accurate diagnoses, enhancing the ability to prevent and manage diseases effectively. These innovations not only alleviate pressure on NHS services by reducing waiting times and enhancing efficiency but also empower patients through remote and personalised care solutions. Over the next decade, effective adoption of these technologies will be crucial in enabling the NHS to manage its workload while achieving better outcomes for patients.

Moreover, there is a significant opportunity to drive improvements in women’s health and reduce health inequalities. Addressing these disparities through targeted interventions, appropriate policy and equitable access to HealthTech can lead to better health outcomes for all.

However, established technologies remain equally important. With an ageing population, there is a growing demand for proven solutions in the short and medium term that will remain the mainstay of care and should be prioritised and optimised accordingly.

October 2024