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NHS Digital Transformation Faces £21bn Funding Gap, Report Warns

Independent analysis highlights significant underfunding for the UK Government's plan to digitise the NHS and social care, with stakeholders awaiting clarity in the upcoming Spending Review and 10-year health plan.

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Overview

  • A PA Consulting report commissioned by the Health Foundation estimates £21 billion is needed over five years to digitise the NHS and social care effectively.
  • The funding requirement includes £8 billion for capital investments, £3 billion in one-off implementation costs, and £2 billion annually for recurring expenses like training and maintenance.
  • The Government has pledged to modernise the NHS as part of its 'three shifts' strategy, but researchers warn additional funding beyond current budgets will likely be required.
  • Digitisation could improve efficiency and patient care by reducing waiting times, optimising theatre schedules, and streamlining administrative processes, but requires careful planning and investment.
  • The upcoming Spending Review and 10-year health plan are expected to address how the Government will bridge the funding gap and allocate resources for this transformation.