#20. W/c 27th January '25

This week's newsletter outlines the strategic goals in NHS England's 2025/26 priorities and operational planning guidance, alongside a House of Commons report highlighting the urgent need for NHS financial sustainability.? In Ireland, the adoption of the European Health Data Space Regulation is welcomed, alongside Ireland’s participation in a European effort to tackle digital healthcare skill shortages.? Additionally, contrasting headlines in AI — from the US Stargate project aiming to transform healthcare to the shock emergence of China’s DeepSeek.? Finally, a report from the World Economic Forum for building a global health network economy through data collaboration and a report on the necessary reductions in medicine payment rates for life sciences sector growth.

NHS England 2025/26 priorities and operational planning

The NHS England 2025/26 operational plan outlines its priorities amidst significant pressures and financial constraints. NHS leaders acknowledge historic challenges which have led to a need for productivity improvements, while simultaneously managing rising costs and demand. The NHS aims to increase operational efficiencies by at least 4% and reduce costs by 1% by enhancing productivity, leveraging technology, and reshaping service delivery.

Key priorities include improving access and reducing waiting times in elective care, A&E, and mental health services, with specific targets set for patient access and experience improvements by March 2026. The NHS is promoting a shift from hospital to community care and from sickness treatment to prevention, thereby using resources more effectively. This involves utilising digital tools, supporting integrated care boards (ICBs) to drive neighbourhood health services, and addressing health inequalities.

From a digital perspective, systems are being encouraged to employ digital tools for improved service delivery. The NHS App is to be central to patient communication, along with electronic patient records, and the integration of systems with NHS e-Referral Service. Providers are expected to adopt electronic prescriptions and adhere to a Federated Data Platform to improve connectivity and collaboration.

The important level of detail that still needs to be addressed is how these things will happen in a way that learns from from existing challenges.? i.e. what are the international standards and supporting architecture that will enable and accelerate this change.

Read more: https://www.england.nhs.uk/long-read/2025-26-priorities-and-operational-planning-guidance/

NHS financial sustainability

A House of Commons report highlights the urgent need for the NHS to establish financial sustainability amidst escalating challenges, including an ageing population and growing waiting lists. Local NHS systems overspent by ￡1.4 billion in 2023–24, driven by increased demand, inadequate estate investment, inflation, and workforce issues.

The report criticises NHSE for issuing planning guidance and approving budgets late, hindering effective financial planning for Integrated Care Boards (ICBs). The government plans to introduce a 10-year strategy focusing on transitions from hospital to community-based care, analogue to digital operations, and illness treatment to prevention.

NHSE's productivity aims are deemed overly optimistic given historical trends, and the organisation lacks detailed plans to achieve the promised gains. Current funding mechanisms also potentially disadvantage deprived areas by not accounting for local challenges like vaccine hesitancy. Furthermore, despite aims to shift focus to prevention and community care, investment is repeatedly redirected to immediate hospital needs. This pattern undermines efforts to reallocate resources towards preventing ill health.

The report recommends clearer financial planning, improved productivity measurement, effective incentives for tackling inequalities, and defining preventative health spending. Emphasised is the need for sustained investment in digital healthcare and legislative change to foster prevention, shifting the system's long-term focus towards sustainability and improved healthcare delivery.

Read more: https://publications.parliament.uk/pa/cm5901/cmselect/cmpubacc/350/report.html

HSE Welcomes European Health Data Space Regulations

The Health Service Executive (HSE) Technology and Transformation division has expressed support for the European Union (EU) Council's official adoption of the European Health Data Space (EHDS) Regulation. This legislation is considered a major advancement for digital health and international health data exchanges within the EU. The EHDS is designed to ensure health data can be shared securely and standardised across EU member states, aiming to benefit patients, improve healthcare systems, and encourage health research by enhancing transnational data accessibility.

As part of this regulation, HSE is participating in the MyHealth@EU initiative to promote interoperability between national health systems, enhancing the healthcare experience for EU citizens travelling across borders. Key aspects of MyHealth@EU include establishing standard communications between health systems, promoting the use of Electronic Health Records (EHRs), supporting telemedicine and remote healthcare services, and maintaining stringent data security and privacy measures complying with GDPR. Furthermore, the initiative fosters innovation and research in digital health solutions.

Read more: https://www.dhirubhai.net/pulse/hse-welcomes-eu-council-adoption-european-zer2f?utm_source=share&utm_medium=member_ios&utm_campaign=share_via

Ireland joins pan-European consortium to address digital skills gaps in healthcare

Ireland has become a member of a pan-European consortium to tackle the digital skills gaps within the healthcare sector. This initiative, named Sustainable Healthcare with Digital Health Data Competence (SUSA), includes Skillnet, three Irish colleges, and Children’s Health Ireland (CHI). They have partnered with 21 other European academic institutions, research centres, and industry stakeholders to enhance healthcare through improved digital competencies.

The article discusses the digital health landscape and the adoption of artificial intelligence in healthcare to address workforce shortages. It highlights the importance of digital transformation in healthcare settings to meet modern demands.

Read more: https://www.pulseit.news/irish-digital-health/ireland-joins-pan-european-consortium-to-address-digital-skills-gaps-in-healthcare/

How Stargate Partners Oracle, Open AI, Nvidia And Softbank Aim To Transform Healthcare

The Stargate project, announced by President Trump alongside Oracle's Larry Ellison, Softbank's Masayoshi Son, and Open AI's Sam Altman, represents a significant undertaking in the realm of AI development. The initiative, backed by a nearly $500 billion investment over four years, aims to fortify AI infrastructure within the United States, with contributions from major tech companies such as Nvidia, Microsoft, and ARM.

Ellison’s deep-rooted interest in healthcare is not new. Oracle has made its commitment to healthcare evident, most notably through its purchase of Cerner for nearly $28 billion a few years ago. Both Microsoft and Nvidia have made it clear that healthcare is among their top priorities, especially with regards to artificial intelligence technology. Given these partners’ individual interests in healthcare and joint efforts, this new venture promises a net positive effect on the sector

Read more: https://www.forbes.com/sites/saibala/2025/01/22/project-stargate-a-500-billion-ai-venture-between-oracle-open-ai-nvidia--softbank-that-will-revolutionize-healthcare/

How small Chinese AI start-up DeepSeek shocked Silicon Valley

A few days after the Stargate announcement, Chinese AI start-up DeepSeek stunned Silicon Valley by revealing advances in its AI models apparently achieved with far less computing power than US rivals.

Founded by billionaire hedge fund manager Liang Wenfeng, DeepSeek developed a model capable of learning and improving autonomously on a (reportedly) limited budget, challenging the might of established US companies like OpenAI and Google. DeepSeek's model has sparked debate on whether US AI firms, including Meta and Anthropic, can maintain their competitive edge. Despite US restrictions on high-tech exports to China, DeepSeek's engineers have optimised available resources, demonstrating impressive results with a comparatively small investment.

This development caused Nvidia's shares to drop by nearly 17%, wiping out almost $600bn in market value. This prompted comparisons to the "Sputnik moment" when the Soviet Union surprised the US by launching the first satellite.

Satya Nadella, the CEO of Microsoft, positioned this development as is a net-positive, referring to the Jevons Paradox, which states that when technology makes a resource more efficient, we often use more of that resource overall.

Read more:? https://www.ft.com/content/e670a4ea-05ad-4419-b72a-7727e8a6d471?accessToken=zwAGLK7hDEfQkdPmcKTqBa1EGdO3Kncn6KbUcQ.MEUCIB4l2EP-TbjlDIBSxL4yhwgpviSBzGAfI7QenFIrMTvxAiEAjD1ZSX2AeSGJgr9tIcEicZx5RCWlRqjqFdgdgnDdeOk&sharetype=gift&token=5279e984-fa0b-40fa-8929-b6d90613539a

Achieving life sciences growth requires falling medicine payment rates

The Chief Executive of the Association of the British Pharmaceutical Industry (ABPI), Dr Richard Torbett, highlights the need for a strategic shift in the UK to perceive medicines as investments rather than mere costs.

Over the past decade, the UK has seen a decline in the value of its branded medicines market by 11% despite the NHS budget growing by 33% in real terms. The UK spends less on medicines compared to global peers, which has led to decreased investment in innovative treatments that address public health needs. This lack of investment is evident as the availability of new medicines in the NHS has dropped by 10%, the largest decline in Europe.

Dr Torbett emphasises the importance of collaboration between government departments and industry to realign strategies with the upcoming NHS 10-year plan, Industrial Strategy, and Life Science Sector Plan. There is a call to action for constructive dialogue to address current challenges and improve the UK’s biomedical investment environment, ensuring it remains competitive on the global stage.

Read more: https://www.abpi.org.uk/media/blogs/2025/january/achieving-life-sciences-sector-growth-requires-falling-medicine-payment-rates/

Building a Global Health Network Economy through Data Collaboration

The World Economic Forum's white paper, "Better Together: Building a Global Health Network Economy through Data Collaboration," outlines a vision for leveraging health data to tackle global healthcare challenges through enhanced collaboration and innovation. Despite the vast growth in health data availability, its potential to significantly improve patient outcomes, streamline efficiency, and foster innovation remains underutilised. The paper identifies key enablers for effective health data collaboration, exploring success stories and strategies for developing scalable, impactful healthcare solutions.

Global healthcare systems continue to grapple with challenges such as increasing rates of chronic diseases, ageing populations, and disparities in health access and outcomes. Unlocking the full potential of health data necessitates a concerted effort among international stakeholders. In response, the World Economic Forum, is spearheading the Digital Healthcare Transformation Initiative. This initiative aims to create a global platform to facilitate health data collaboration through practical steps, promoting the development of a comprehensive data environment and facilitating meaningful data exchanges and applications.

Read more: https://www.weforum.org/publications/better-together-building-a-global-health-network-economy-through-data-collaboration/