NHS Providers urges government to prioritise digital investment to boost productivity

NHS Providers has called for urgent government investment in digital technology as a means to enhance productivity, following the release of a survey involving leaders of NHS trusts. This call comes amid growing concerns about financial pressures and operational challenges facing the health service.

The survey, whose results were published on 8 September 2024, painted a stark picture of the financial health of the NHS. Trust leaders indicated that their finances have been severely impacted by a number of factors, including ongoing industrial action, the effects of inflation, demands for increased efficiency, and the overall operational strain on the NHS. These challenges have exacerbated existing financial pressures, placing trust leaders in a difficult position as they attempt to manage their budgets for the upcoming year.

The survey found that a significant 51% of respondents were “extremely concerned” about their ability to meet operational priorities within their respective organisation’s financial budget for the 2024/25 fiscal year. This concern highlights the precarious financial state of many NHS trusts as they face increasing demand for services with limited resources.

Moreover, 92% of those surveyed expressed the view that the efficiency challenge for 2024/25 is more daunting than in the previous year, with the need to do more with less becoming ever more critical. This sentiment reflects the growing pressure on NHS leaders to find ways to increase efficiency in an already overstretched system.

When it comes to meeting recovery targets, trust leaders were notably divided in their confidence levels. While almost a third of respondents (32%) were optimistic that their system would achieve its targets to reduce waiting times for physical health services in 2024/25, only 8% felt confident that similar targets for mental health services would be met. This disparity underscores the particular difficulties the NHS faces in addressing long waits in mental health care, a sector that continues to experience significant challenges.

Respondents also shared their views on accident and emergency (A&E) services, with 46% of those providing these services indicating that their trust is likely to meet the new target of seeing 78% of A&E attendees within four hours by March 2025. This reflects the ongoing challenges in delivering timely emergency care, as the NHS grapples with rising demand and workforce shortages.

On the financial front, the outlook is similarly divided. A significant proportion of respondents (44%) forecasted a deficit for their trust’s financial position in 2024/25, while 45% predicted a breakeven position, and only 11% anticipated a surplus. These figures highlight the fragile financial footing on which many NHS trusts currently stand.

Sir Julian Hartley, Chief Executive of NHS Providers, praised the resilience and adaptability of trust leaders and their teams in the face of these considerable challenges. He stated: “It’s incredibly impressive how trust leaders and their teams are responding to the productivity challenge. You can see the benefits of collaboration, incentivising staff, and using digital tools to help them work more efficiently.” However, Sir Julian emphasised that these efforts, while commendable, can only achieve so much without substantial strategic investment.

He continued: “That’s all happening, but it can only go so far without significant strategic investment in infrastructure and digital technologies. We need to recognise the value of investment in the NHS – its impact as a catalyst for economic growth, employment, and research, and the importance of funding infrastructure, digital, and other technology to drive productivity.”

The timing of these survey findings is significant, coming just ahead of a much-anticipated review of the NHS by esteemed NHS surgeon and independent peer, Lord Ara Darzi. Commissioned by Health Secretary Wes Streeting, this review is expected to be published on 12 September 2024. Early indications suggest that the report will include sharp criticism of the NHS’s productivity levels, as well as concerns about the state of children’s health.

Prime Minister Sir Keir Starmer also weighed in on the state of the NHS during an interview broadcast by the BBC on 8 September 2024. In his remarks, the Prime Minister described the NHS as having been “broken” by successive Conservative governments. He referenced the upcoming review, underscoring the severity of the challenges facing the NHS.

Responding to the Prime Minister’s comments, Sir Hartley expressed that these concerns mirrored those frequently raised by NHS trust leaders. He said: “The Prime Minister’s comments today echo what trust leaders have been telling us. The shockwaves of the longest and deepest squeeze in NHS financial history, a growing mismatch between capacity and demand, major workforce challenges, and the after-effects of the Covid-19 pandemic are still being felt throughout the health service.”

Sir Hartley went on to highlight the need for sustained, long-term financial investment in the NHS, pointing out that the current approach to funding is unsustainable. He stated: “Time and again, trust leaders tell us they want to see long-term, multi-year investment in the health service which allows them to plan for the future instead of this stop-start approach to NHS funding which leaves them constantly worrying about budget cuts followed by quick-fix, short-term funding announcements.”

Adding further weight to the conversation around NHS productivity, a report published by the Health Foundation in April 2024 examined clinicians’ views on the technologies that could offer the greatest opportunities to enhance productivity within the NHS. The report underscored the potential of digital tools to drive efficiencies, streamline operations, and improve patient outcomes, aligning closely with the calls from NHS Providers for greater investment in this area.

In conclusion, the message from NHS Providers is clear: while trust leaders and their teams are doing all they can to meet the challenges they face, there is a pressing need for the government to step up with significant investment in digital technologies and infrastructure. Such investment is critical not only for improving productivity but also for securing the long-term future of the NHS as it continues to navigate unprecedented operational and financial pressures.