Digital health service provider Babylon Health and the NHS have ended their decade-long partnership as a result of “challenging” global and economic conditions, it has been announced.
Relationships have come to an end between Babylon Health and two NHS Trusts, one of which had only entered the deal in 2020.
Babylon saw total revenue reach£219.4m ($265.4m) , a huge year-over growth from £47.5m ($57.5m).
UK general manager Tim Rideout told TechCrunch: “I think you’ll see this across the NHS with a lot of different private companies now — the economics of the contract were really tight because of the funding pressures that the NHS is under.
“And those funding pressures have just grown since we entered into the partnership. And then, for us, capital is becoming more expensive.”
A mutual decision
A spokesperson from the Royal Wolverhampton NHS Trust added: “At this time, RWT and Babylon have made a mutual decision to end our partnership, as it is not economically viable for Babylon in the current climate.”
“RWT will continue to drive the adoption of digital healthcare tools and technologies in the planning and delivery of services. Babylon will continue to fulfil its mission to provide affordable, high quality, accessible care, including to over 380,000 patients in the UK.
“As a priority, we will work to ensure the safe and smooth transition of patients from the Babylon platform onto alternative providers.”
