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UK an attractive market for digital innovators – report

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Financial constraints and a reduction in IT spending are driving a critical need for efficient digital solutions in the UK health service, according to a new research report.

The 2023 ISG Provider Lens Healthcare Digital Services report for the UK found that, despite budget limitations and increased regulations, the UK remains an attractive market for providers of healthcare digital transformation services, as payers seek solutions that will enhance healthcare delivery and improve patient outcomes.

Success in this sector requires a set of capabilities tailored to meet the system’s unique requirements, the ISG report revealed.

Mat Hannon, ISG director, UK and Ireland, said: “Delivering digital transformation services in healthcare is complex and expensive.

“It calls for specialised skills and a deep understanding of medical practices, technologies and local regulations.”

Payers and providers in the UK healthcare sector face distinct yet interconnected challenges, according to the report.

Payers, such as private insurers and the NHS, must strike a balance between increasing healthcare costs and the growing need to provide comprehensive and affordable coverage, the report states.

Meanwhile, providers such as hospitals, clinics and individual practitioners, face resource allocation and service delivery challenges.

According to the report, there is pressure to maintain high standards of care despite staffing shortages, which have been exacerbated by the impact of Brexit on the availability of healthcare professionals.

Hospitals and clinics will be expected to navigate limited budgets yet develop innovative, cost-effective technologies to improve patient management and healthcare delivery, the report states.

For their part, digital transformation services providers must offer scalable, interoperable solutions that can integrate with existing systems and provide immediate, tangible benefits, the report concludes.

Jan Erik Aase is partner and global leader, ISG Provider Lens Research.

He said: “The future of healthcare in the UK will be driven by radically interoperable data and open, secure platforms, with a principal goal of actually sustaining patient well-being instead of simply providing care.

“Achieving this goal will require a complex ecosystem of digital transformation services providers focused on the healthcare sector.”

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