Cost of Serving the NHS the Biggest Barrier to Innovation
Four out of every five MedTech companies have seen their costs of serving the NHS increase over the past year, an ABHI survey can reveal.
A business survey, compiled by the UK’s MedTech trade association, found that the single greatest challenge for companies was selling to the NHS, with 85% experiencing increases due to costly measures such as the eProcurement strategy, credentialing, and added regulatory fees.
The industry, that has grown at a rate of 9% in recent years, is now worth over £17bn to the U.K. economy. However, uncertainty around Brexit has meant over one third of companies have delayed investment decisions. 70% of companies expect their exports to Europe to increase in 2018. This is higher than any other market and highlights the need to manage Brexit correctly, to ensure the trading opportunity that Europe represents is not lost.
Commenting on the findings, ABHI CEO Peter Ellingworth said: “The messages from our members are clear. We must get Brexit right to ensure patients have prompt access to products. The current procurement environment is hostile to companies when if focusses purely on the lowest cost. Failure to purchase on the basis of quality and value to the system is not beneficial to the patient, nor does it provide efficiency. Quality is critical to providing safe and effective care, whilst delivering long-term savings to the NHS.”
To minimise any disruption to the supply of products to patients, the industry is calling on law makers to adopt the European-wide regulatory model. To maintain and protect the health of both EU and UK citizens, it is also important to ensure that the cross-border movement of goods remains as seamless as possible.
The Association of British Healthcare Industries (ABHI) is the industry association for the medical technology sector in the UK. ABHI’s mission is to champion the benefits and use of safe and effective medical technologies to deliver high quality patient outcomes. With over 260 members, ABHI leads the advocacy of the industry in order to advance access to medical technology. Our membership includes some of the leading multinational businesses in the sector in the UK right the way through to small and medium sized enterprises (SMEs).
For further information, visit the ABHI website: www.abhi.org.ukabhi-press-release-2017-business-survey