NHS Funding Landscape (based on ICS systems) – How do Innovators Navigate the Complexity?

A well-oiled national health care system is characterised by effective coordination between national, regional and local levels of service delivery. During the peak of the COVID-19 Pandemic, local care services were placed in a position where careful communication and coordination between regions were vital.

In attempts to harness this newfound coordination, a novel financial framework was implemented to enhance regional healthcare dissemination through its integrative Care Systems framework (ICSs). ICSs, which have existed in ‘shadow’ form for multiple years, finally gained statutory footing in April 2022 and have been allocated clear protocols and guidelines for planning and funding healthcare services in their respective governing regions.

Broadly, the overarching aims of ICSs can be boiled down to four primary purposes that have been established to tackle interregional population inequalities such as housing, financial stress and poverty. These are:

  1. Improving population health and healthcare
  2. Tackling unequal outcomes and access
  3. Enhancing productivity and value for money
  4. Helping NHS to support broader social and economic development

Due to the diverse social and financial discrepancies between regions, it is seemingly impossible to ascribe an overarching inclusive system conducive to each locality’s nuanced needs. To address this, ICSs possess heightened agency and flexibility to work within their respective region.

The UK government has taken a sort of feudal approach towards the ICSs, with each system possessing varying funding abilities depending on the size and demands of its constituents.

However, due to the stark differences between some of the ICS regions, issues surrounding funding and capital allocation arise as, for effective national healthcare, ICSs must meet the needs of all covered sectors and not a specific few.

ICSs are currently being developed at different starting points and at varying paces. When we consider that each ICS is responsible for planning and funding health and care services within their respective region, problems such as healthcare inequality arise.

Hence, capital allocation must be approached dynamically and integrate innovators’ ability to effectively contribute to its relevant locality. To support this, NHS England and NHS Improvement have decided to allocate increasing degrees of financial responsibility to ICSs and ensure that they receive the following:

  • Prior announcement of capital allocations
  • Prior presentation of operational and planning guidance
  • Appropriate planning intervals
  • Best practice guides and models
  • Realistic targets
  • A transparent and comprehensive methodology for allocating capital

Despite these advances, the field remains fragmented, adding an extra layer of complexity for innovators to navigate. However, this does not negate the government’s intention to provide a seamless pathway for healthcare providers to adopt new technologies developed by innovators.

This is outlined within the NHS Long Term Plan, which seeks to inform innovators about the different sectors of the NHS and their investments moving forward. Paired with the current reforms happening within the ICSs, innovators will be able to have their projects efficiently processed and communicated between the different localities, ensuring their reach and relevancy.

Additionally, due to the increased coordination, ICSs will grant the ability to provide a comprehensive survey concerning the availability that a commissioned product will have on its constituents. Due to the increased coordination, a broader population data sample is available to innovators.

The ICS framework presents itself as a unique opportunity for the technological products of innovators to reach expansive populations within a given locality. In that regard, there is a dual incentive for ICS to adopt digital technology to enhance patient outcomes and an industrial incentive to push new technologies into practice.

As an innovator, you can rest assured that ICS advances are placing an innovation pipeline as a top priority for achieving their overarching purpose of delivering optimal and equal care for local populations. While the main priority of ICSs is to give a patient voice at the table, the innovator’s voice is given equal valence in how ICSs seek to undertake their delivery of health and social care services.

Are they ready to do this, you may ask? Certainly, the national health and care systems are going through significant operational pressures following the advent of the Pandemic. However, there is a simultaneous push towards remedying the pressures caused by these events and established long-term plans to achieve this.

More specifically, technological innovation will be a fundamental cornerstone of national healthcare reform and new pathways are being established in order to maximise the impact they will have on the individuals in need, which in the end, are those who matter the most.

With a keen on eye innovation and a focus on enabling new technologies within the UK healthcare sector, HIC have a wealth of experience in delivering digital capabilities referenced across many ICS digital strategies. We can draw on our experience of delivering telemedicine, remote monitoring, artificial intelligence, and electronic health record systems to work as the conduit between supplier and healthcare provider to ensure all bases are covered in relation to clinical safety, regulatory requirements, technical assurances, and other legal requirements such as cybersecurity and information security regulations.

Our team is made up with a wealth of experience from a broad range of sectors within technology and healthcare, covering all of the technical, legal, and clinical areas, as well as a range of programme and project management, and business analysis resources that are on hand to deliver a blended approach to delivery, ensuring the right resources are allocated to the right tasks, at the right time.

We’re here to help you navigate the complex ICS landscape. Contact us today—we’ll provide you with the guidance and support you need to stay on top.