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NHS cuts could be just what the doctor ordered for go-ahead digital companies
BUDGET cuts expected to hit the National Health Service could provide an inadvertent opportunity for Yorkshire's digital companies that operate in the health sector, according to an industry leader.
Commentators predict that the parlous state of the public finances will soon lead to major cost-cutting exercises across the public sector, including the NHS.
But John Eaglesham, the chief executive of the Advanced Digital Institute, believes that reduced expenditure in the health service could help usher in long-awaited reforms which, in turn, will benefit forward-thinking firms in the telehealth sector.
He said: "There's a window of opportunity to make some changes now. There is some surplus now. There is an opportunity to move the service to a better place before the budget cuts come, but it is a short window.
"The budget cuts which restrict the freedom of manoeuvre of statutory services are also going to force some fairly radical thinking about what is possible with the current structure and possibly force the pace of change simply because the status quo is not an option.
"We need to make some changes. As well as being a constraint, it also creates more pressure for change so it can also be an opportunity."
Telehealth, which involves the delivery of health-related services using hi-tech telecommunications, is seen as a key method of delivering fundamental changes in the NHS.
Health chiefs want to move resources from the acute to primary sector and switch from "managing disease to managing health".
Shipley-based ADI, which is funded by Yorkshire Forward, said there is market potential for new start-ups or existing businesses to relocate to the area.
It claimed in a new report that if Yorkshire and Humber waits for other regions to take the lead, it will forfeit the chance to incubate one of the business sectors most likely to show "explosive growth" over the next couple of decades.
Government ministers have set out a new vision for the NHS that provides a 21st century healthcare system and, said Lord Grayson, "a major engine for growth and prosperity in the UK".
David Nicholson, the chief executive of the NHS, has said the organisation should use innovation to improve and produce productivity gains.
Mr Eaglesham said: "We see telehealth as being a huge opportunity for Yorkshire.
"Roughly 8-9bn is spent on the NHS in Yorkshire and Humber. A fairly large slice of that goes towards looking after people with chronic conditions. It is widely acknowledged that service provision is not hugely proficient.
"Intelligent use of technology, coupled with a reorganisation, can release a lot of money and energy into the region that will provide opportunities for new services businesses and new technology businesses as well as improving health and well-being overall in the region."
The ADI has recommended that the regional strategic health authority set up an assisted living and telehealth programme and help trusts with funding to introduce the new technology.
But Deloitte, the Big Four accountancy firm which advises health trusts across the UK, has warned of troubled times ahead for the NHS.
A partner told the Yorkshire Post that the health service has forecast security of funding until 2011, after which "it is going to be pretty desperate".
In the summer, telecare firm Tunstall announced it was shedding 70 jobs and blamed the Government for failing to support the sector. The private equity-owned company, which is based near Selby, provides an early-warning system that tells friends and carers if an elderly person has collapsed.
Chief executive David Buckley claimed the Government's "good words" had not led to the consistent implementation of policies to encourage telecare across Britain.
FACING UP TO TECHNOLOGICAL CHALLENGES
Energy monitoring and smart metering for the domestic and industrial markets are potential growth areas, according to John Eaglesham.
These can help homes and businesses save money and hit emissions reductions targets.
He described Sheffield-based Jennic as a "world leader" in this field with its wireless technologies.
Mr Eaglesham said set-top boxes are potentially a good platform for heat automation and energy monitoring.
He said that e-learning and e-assessment are also looking like good areas for growth.
In the future, he said: "Alternative energy is only going to become more important. The big technology challenges are the social and economic challenges, particularly on the energy and health side."
The Advanced Digital Institute is a publicly-funded company that offers consultancy services at market rates.
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Thursday 24 May 2012
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