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National Institute for Health and Care Excellence poised to play a bigger role in UK HealthTech and feature as a central theme in the new NHS 10 Year Plan

  • Writer: Lloyd Price
    Lloyd Price
  • Jun 4
  • 6 min read

National Institute for Health and Care Excellence poised to play a bigger role in UK HealthTech and feature as a central theme in the new NHS 10 Year Plan
National Institute for Health and Care Excellence poised to play a bigger role in UK HealthTech and feature as a central theme in the new NHS 10 Year Plan

NICE to play a leading role in the new NHS 10 Year Plan


The National Institute for Health and Care Excellence (NICE) is indeed positioned to take on a significantly expanded role in shaping the UK HealthTech landscape, a development that is expected to be a central feature of the widely anticipated new NHS 10 Year Plan. Recent announcements and consultations from NICE itself underscore this strategic shift, aiming to accelerate the adoption of innovative, cost-effective technologies across the health service.


At the core of this expanded role are NICE's ongoing proposals to fundamentally transform its HealthTech programme. Announced in February 2025, these reforms represent the "biggest shake-up" of NICE's approach to health technology evaluation to date. The changes are designed to streamline the assessment process for a broad spectrum of innovations, including medical devices, diagnostics, and critically, the burgeoning fields of digital health and Artificial Intelligence (AI) technologies.


One of the most significant proposed changes is the move away from requiring medical devices to demonstrate cost-savings for recommendation. Instead, independent committees will assess all technologies based on a more holistic view of their cost-effectiveness, balancing the financial outlay with the benefits they bring to patients and the wider health service. This shift is intended to open the door for a wider range of beneficial innovations that might not offer immediate cost reductions but deliver substantial improvements in patient outcomes or system efficiencies.


Furthermore, NICE plans to merge its three existing evaluation programmes (interventional procedures, medical technologies evaluation, and diagnostics assessment) into a single, unified HealthTech programme. This consolidation, coupled with the introduction of a "lifecycle evaluation approach," will allow NICE to assess technologies at various stages of their development – from early-stage promising innovations to those already in routine use. The aim is to provide clearer, quicker, and more targeted guidance that directly aligns with NHS priorities. Multi-technology assessments of similar products will also become standard, helping the NHS make more informed purchasing decisions where multiple options exist.


This evolution of NICE's role is intrinsically linked to the strategic direction of the NHS as outlined in the "new NHS 10 Year Plan" (or the "Change NHS" initiative). The plan explicitly emphasizes a transformative shift from an "analogue to digital" health service, from "hospital to community" care, and from "treatment to prevention." HealthTech, and robust data management for precision medicine, are seen as crucial enablers for these changes. By fast-tracking the evaluation and adoption of clinically and cost-effective technologies, NICE will directly support the NHS's ambition to improve productivity, enhance patient experience through digital solutions, and ensure the health service is fit for the future.


The potential for NICE to play a bigger role also extends to fostering greater collaboration and transparency across the UK HealthTech ecosystem. By offering more tailored support to developers early in the product lifecycle and setting clear evidence standards, NICE can reduce uncertainty for industry, encourage investment in UK-aligned innovations, and ultimately get cutting-edge tools into the hands of healthcare professionals and patients faster. This forward-looking stance positions NICE as a pivotal enabler of innovation, crucial for the UK to harness the full potential of HealthTech in delivering a more personalised, efficient, and sustainable healthcare system.


10 reasons why NICE should play a bigger role in Healthcare Technology across the NHS
10 reasons why NICE should play a bigger role in Healthcare Technology across the NHS

10 reasons why NICE should play a bigger role in Healthcare Technology across the NHS


The National Institute for Health and Care Excellence (NICE) plays a crucial role in the UK's healthcare landscape, primarily through its evidence-based guidance on health and social care. However, as healthcare technology rapidly evolves, there are compelling reasons why NICE should expand its influence and responsibilities, particularly in the realm of new and emerging technologies.


There are compelling reasons why the National Institute for Health and Care Excellence (NICE) should expand its role in the assessment and integration of healthcare technology within the UK.


Here are 10 key reasons:


  1. Ensuring Value for Money and Efficient Resource Allocation: With increasing pressure on NHS budgets, NICE's rigorous, evidence-based appraisal process is crucial for ensuring that new technologies offer genuine clinical benefit and are cost-effective. A larger role would help prevent the widespread adoption of technologies that offer marginal gains at disproportionate costs, thereby optimising resource allocation across the NHS.


  2. Driving Innovation and Early Adoption of Beneficial Technologies: A more proactive NICE could help identify and fast-track the adoption of truly innovative and transformative healthcare technologies. By engaging earlier in the development pipeline and providing clear pathways for assessment, NICE could incentivise companies to develop solutions tailored to NHS needs and facilitate quicker patient access to effective new tools.


  3. Standardising Quality and Safety Across the NHS: A stronger NICE influence would lead to greater consistency in the quality and safety standards of healthcare technologies adopted across different NHS trusts. This would reduce regional variations in care, ensuring that all patients in the UK have access to technologies that have met a high bar for efficacy and safety.


  4. Providing Clarity and Confidence for Developers and Investors: A clear and expanded role for NICE would offer greater predictability and transparency for healthcare technology developers and investors. Knowing the assessment criteria and pathways upfront would reduce uncertainty, encourage investment in the UK market, and help companies design products that are more likely to meet NHS requirements.


  5. Addressing the Challenges of Digital Health and AI: The rapid proliferation of digital health solutions, AI-powered diagnostics, and machine learning tools presents unique challenges for evaluation. NICE's expertise in evidence synthesis and health economics is vital to develop appropriate methodologies for assessing these complex technologies, ensuring their safe and effective integration into clinical practice.


  6. Informing Commissioning Decisions: NICE's appraisals provide invaluable guidance for Clinical Commissioning Groups (CCGs) and integrated care systems (ICSs) in making informed decisions about which technologies to commission. A broader remit would mean more comprehensive guidance, leading to better strategic planning and investment in technology at a local level.


  7. Building Public Trust and Confidence: The public needs assurance that the healthcare technologies used within the NHS are effective, safe, and represent good value. NICE's independent and transparent appraisal process instills confidence, and a larger role would further reinforce public trust in the adoption of new medical innovations.


  8. Facilitating Real-World Evidence Generation: NICE is well-placed to drive the systematic collection and utilization of real-world evidence (RWE) for healthcare technologies post-market. A stronger role could involve setting standards for RWE collection, collaborating with industry to establish data capture mechanisms, and using this data to refine existing guidance and inform future appraisals.


  9. Influencing International Standards and Collaboration: As a globally respected institution, an expanded role for NICE in healthcare technology assessment would further solidify the UK's position as a leader in this field. This could foster greater international collaboration in developing best practices for technology evaluation and potentially streamline processes for technologies entering multiple markets.


  10. Adapting to the Evolving Healthcare Landscape: The healthcare landscape is continually evolving with new technologies, treatment paradigms, and patient expectations. NICE, with its established framework and adaptability, is ideally positioned to evolve its role to meet these challenges, ensuring that the UK healthcare system remains at the forefront of technological advancement while safeguarding patient interests.


By empowering NICE to play a more significant role, the UK can ensure a more strategic, efficient, and patient-centric approach to the adoption of healthcare technology, ultimately leading to better outcomes for patients and a more sustainable NHS.

Nelson Advisors > Healthcare Technology M&A

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Nelson Advisors specialise in mergers, acquisitions & partnerships for Digital Health, HealthTech, Health IT, Consumer HealthTech, Healthcare Cybersecurity, Healthcare AI companies based in the UK, Europe and North America.
Nelson Advisors specialise in mergers, acquisitions & partnerships for Digital Health, HealthTech, Health IT, Consumer HealthTech, Healthcare Cybersecurity, Healthcare AI companies based in the UK, Europe and North America.


 
 
 

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