Nelson Advisors 2025 UK HealthTech Predictions: Big 5 for 2025

Exec Summary:

Looking ahead into 2025, the UK HealthTech market is on track to continue growing and evolving around four main themes, Apps, Platforms, Data and AI.

Apps: Mobile health applications (mHealth apps) are becoming increasingly prevalent, offering a wide range of functionalities such as symptom tracking, medication reminders, mental health support, and remote consultations.

Platforms: Digital health platforms are emerging as centralised hubs for patient data, care coordination, and communication between healthcare providers and patients. These platforms enable seamless data sharing, improve care quality, and enhance patient engagement.

Data: The collection, analysis, and interpretation of health data are crucial for driving innovation in the HealthTech sector. Data analytics and artificial intelligence are being used to identify trends, predict outcomes, and personalize treatment plans.

AI: Artificial intelligence (AI) is revolutionising various aspects of healthcare, from disease diagnosis and drug discovery to personalised medicine and robotic surgery. AI-powered tools are enhancing the accuracy and efficiency of healthcare delivery, leading to improved patient outcomes.

With the convergence of healthcare, technology and AI set to play a leading role in 2025, our team here at Nelson Advisors predict the following trends and transactions next year:

1. Oracle buys TPP > SystmOne
2. Microsoft AI growth across the NHS
3. Workforce Marketplace consolidation
4. NerveCentre grows into a mid market EPR
5. Medical AI scribes become the new Virtual Wards

Nelson Advisors work with Healthcare Technology Founders, Owners and Investors to assess whether they should 'Build, Buy, Partner or Sell' in order to maximise shareholder value.

Healthcare Technology Thought Leadership from Nelson Advisors – Market Insights, Analysis & Predictions. Visit?https://www.healthcare.digital?

HealthTech Corporate Development - Buy Side, Sell Side, Growth & Strategy services for Founders, Owners and Investors. Email?[email protected]??

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HealthTech Corporate Development and M&A - Buy Side, Sell Side, Growth & Strategy services for companies in Europe, Middle East and Africa. Visit?www.nelsonadvisors.co.uk

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The strategic importance of Apps, Platforms, Data, and AI to the UK HealthTech market in 2025 is multifaceted and far-reaching:

1. Enhanced Healthcare Accessibility

• Apps: Provide remote access to healthcare services, especially crucial for patients in rural areas or with limited mobility.
• Platforms: Facilitate communication and coordination between patients and healthcare providers, improving access to care and reducing wait times.

2. Improved Patient Outcomes

• AI: Enables early disease detection, personalised treatment plans, and more accurate diagnoses, leading to better patient outcomes.
• Data: Allows for the identification of trends, risk factors, and areas for improvement in healthcare delivery, ultimately enhancing patient care.

3. Increased Efficiency and Cost-Effectiveness

• Platforms: Streamline administrative tasks, reduce paperwork, and improve operational efficiency within healthcare organisations.
• AI: Automates routine tasks, freeing up healthcare professionals to focus on patient care and reducing the overall cost of healthcare delivery.

4. Data-Driven Innovation

• Data: Serves as the foundation for research and development in the HealthTech sector, enabling the creation of new and innovative solutions.
• AI: Powers the development of advanced technologies such as AI-powered diagnostics, drug discovery, and robotic surgery.

5. Economic Growth and Job Creation

• HealthTech: A rapidly growing sector with the potential to create numerous high-skilled jobs in areas such as software development, data science, and healthcare technology.
• Innovation: Fosters a culture of innovation and entrepreneurship within the UK, driving economic growth and competitiveness.

By embracing these four key pillars, the UK HealthTech market can continue to transform healthcare delivery, improve patient outcomes, and enhance the overall health and well-being of the population.

Oracle buys TPP > SystmOne

Oracle to acquire TPP, a leading UK healthcare software provider. This move could significantly impact the UK healthcare landscape, potentially enabling the creation of a more comprehensive and integrated health record system.

Key Points:

• TPP's Strengths: TPP is a major player in the UK healthcare IT market, known for its electronic health record (EHR) system, SystmOne. This system is used by a significant number of General Practitioners (GPs) across the country.
• Oracle's Ambitions: Oracle, having acquired Cerner in 2021, is expanding its presence in the healthcare IT sector. Acquiring TPP would further strengthen its position in the UK market and potentially enable it to create a more comprehensive and integrated health record system, potentially linking primary care data with hospital records.
• Potential Benefits: A combined Oracle-TPP entity could leverage its technology and resources to improve data sharing, enhance patient care, and drive innovation in the UK healthcare system.
• Challenges and Considerations: The acquisition would likely face regulatory scrutiny, as it would involve two major players in the UK healthcare IT market. Concerns about data privacy, competition, and the potential impact on healthcare providers would need to be addressed.

"The move would be both an offensive and defensive one. Offensive to combine TPP's primary care record with Cerner's secondary care record, realising the longditunial care record ambitions widely held by all EPR and EHR suppliers. Defensive to prevent any other EPR or EHR suppliers from gaining first mover advantage, access to tens of millions of patient datasets and potential ICB and regional wide monopolies."

Oracle's acquisition of TPP, a leading UK healthtech company, would likely be driven by several strategic motivations:

• Market Dominance:
• Enhanced Product Portfolio:
• Access to Valuable Data:
• Strengthening Cloud Business:
• Strategic Advantage:

Microsoft AI growth across the NHS

Microsoft has invested in several key hires in the last 12 months to add significant healthcare technology, artificial intelligence and healthtech founder experience to its AI division.

In March 2024, Microsoft hired DeepMind co-founder Mustafa Suleyman as CEO of new AI unit. Mustafa Suleyman is a co-founder of DeepMind, which became a leading artificial intelligence research lab after Google bought it in 2014.

In November 2024, Microsoft’s AI division hired Peter Hames, the former founder and chief executive of UK digital health start-up Big Health that develops and delivers digital therapeutics for common mental health conditions.

In December 2024, Mustafa Suleyman hired Dominic King, a UK-trained surgeon who was the former head of DeepMind’s health unit and former founder of Streams, a healthtech startup intended to help clinicians identify and monitor acute kidney injury (AKI).

"The combination of 3 successful UK healthtech founders, clinicians and AI technologists with the knowledge, networks, relationships and experience of working with multi stakeholder teams across the NHS puts Microsoft in a great position to scale its AI ambitions in 2025."

In addition to these key hires, 2025 could be a breakthrough year for Microsoft AI within the NHS, driven by several factors:

• Strong Existing Foundation: Microsoft already has a significant presence in the NHS, providing various IT solutions and cloud services. This existing infrastructure provides a solid foundation for the deployment and integration of AI-powered tools. ?
• Advanced AI Capabilities: Microsoft boasts cutting-edge AI technologies, including Azure AI, which offers a suite of AI services like machine learning, natural language processing, and computer vision. These capabilities can be leveraged to address various challenges within the NHS. ?
• Focus on Healthcare: Microsoft has been actively investing in healthcare-specific AI solutions, such as AI-powered diagnostics, drug discovery, and personalized medicine. This focus demonstrates their commitment to developing AI technologies that can have a meaningful impact on healthcare. ?
• Collaboration and Partnerships: Microsoft has been actively collaborating with NHS organizations and researchers to develop and implement AI solutions. These partnerships can accelerate the adoption and impact of AI within the NHS. ?
• Government Support: The UK government has been actively promoting the use of AI in healthcare, providing funding and support for AI-related initiatives. This supportive environment can further accelerate the adoption of Microsoft AI solutions within the NHS. ?

If these factors continue to align, 2025 could see significant advancements in the use of Microsoft AI within the NHS, leading to improved patient outcomes, increased efficiency, and enhanced healthcare delivery.

Workforce Marketplace consolidation

Medical workforce marketplace companies have emerged in the UK following years of venture capital and private equity investment to address the challenges of staffing shortages and workforce management within the healthcare sector.

The UK's medical workforce marketplace has seen a surge in M&A activity, driven by several factors:

• Consolidation: Larger players are acquiring smaller companies to expand their market share, service offerings, and geographical reach.
• Technological Advancements: The increasing adoption of technology in healthcare, such as AI-powered matching and telehealth, is driving M&A activity as companies seek to acquire complementary technologies.
• Investor Appetite: Strong investor interest in the healthcare sector, particularly in digital health solutions, is fuelling M&A activity as investors seek to consolidate their portfolios and maximise returns.

Some notable M&A deals in the UK medical workforce marketplace in the last 12 months include:

• ID Medical acquired by Aya Healthcare: This acquisition expanded Aya Healthcare's global reach and strengthened its position as a leading provider of healthcare staffing solutions.
• Patchwork Health acquired L2P Enterprise Ltd. Patchwork Health is a provider of workforce management software for healthcare. ?L2P Enterprise Ltd is the UK's foremost provider of medical appraisal and job planning software.

"These deals highlight the dynamic nature of the UK medical workforce marketplace and the increasing importance of M&A activity in shaping the future of the sector. As the sector continues to evolve, we can expect to see further M&A activity as companies seek to capitalise on growth opportunities and consolidate their market positions."

There are several reasons why they are ripe for consolidation in the next 12 months:

• Staffing Shortages: The healthcare sector is facing significant staffing shortages, particularly for nurses, doctors, and other healthcare professionals. These shortages can lead to delays in patient care, increased stress on existing staff, and financial strain on healthcare organisations. ?
• Inefficient Workforce Management: Traditional methods of workforce management can be inefficient and time-consuming. Medical workforce marketplaces offer a more efficient and streamlined approach to connecting healthcare organisations with qualified staff. ?
• Technological Advancements: Advances in technology, such as cloud computing and mobile technology, have made it possible to develop sophisticated online platforms that can connect healthcare organisations with staff quickly and efficiently.
• Increased Demand for Flexibility: Many healthcare professionals are seeking more flexible work arrangements, such as part-time or locum positions. Medical workforce marketplaces can help to meet this demand by connecting healthcare organisations with flexible workers. ?

These factors are driving the emergence of medical workforce marketplace startups in the UK. These platforms have the potential to significantly impact the healthcare sector by improving access to qualified staff, streamlining workforce management processes, and enhancing the flexibility and efficiency of the healthcare workforce.

NerveCentre emerges as mid market EPR supplier 2025

Nervecentre has successfully transitioned from a specialist NHS software provider to a significant player in the Electronic Patient Records (EPR) market. They have secured seven new NHS EPR contracts within the last 12-18 months, despite intense competition.

Leveraging their existing relationships with over 40 NHS Trusts, Nervecentre is effectively converting their NHS customers into fully fledged EPR clients, demonstrating strong adaptability and strategic vision.

Nervecentre's success extends beyond the number of contracts to the quality and geographic reach of its partnerships.

• Significant Presence: They have established a strong presence in the East Midlands, securing contracts with several major NHS Trusts in the region.
• Expanding Footprint: Nervecentre has recently expanded its reach to Yorkshire, winning contracts with prominent hospitals.
• Long-term Commitments: These contracts typically span a decade, indicating strong confidence from NHS Trusts in Nervecentre's capabilities and long-term vision.

This demonstrates Nervecentre's strategic approach to market expansion and its ability to build strong, lasting relationships with key NHS institutions.

Nervecentre achieved significant financial growth in 2023, with revenue increasing by 18% to ￡9M. This demonstrates their ability to successfully transition existing customers to their new EHR product while simultaneously expanding their overall business.

"The UK EHR market is currently dominated by a few large international players and a limited number of established local vendors. This competitive landscape presents a significant challenge for new entrants like Nervecentre. This context highlights the impressive nature of Nervecentre's recent successes, as they are competing against well-established and powerful competitors in the UK EHR market."

For Nervecentre to solidify its position as a mid-market EPR supplier in 2025, successful delivery of their recent NHS contract wins is paramount. Here's why:

• Building Reputation: Successful implementations will strengthen Nervecentre's reputation for delivering high-quality, reliable, and user-friendly EPR systems.
• Customer Satisfaction: Positive experiences for these early adopter Trusts will be crucial for attracting future clients and building long-term partnerships.
• Demonstrating Scalability: Successfully implementing EPR systems across multiple Trusts will demonstrate Nervecentre's ability to scale its operations and support a growing customer base.
• Market Validation: Successful implementations will validate Nervecentre's technology and its ability to compete effectively in the challenging UK EHR market.

By prioritising the successful delivery of these contracts, Nervecentre can build a strong foundation for future growth and solidify its position as a key player in the UK's evolving healthcare technology landscape.

Medical AI scribes become the new Virtual Wards

Medical AI scribes are software applications that utilise artificial intelligence (AI) to automate parts of the clinical documentation process. AI medical scribes aim to alleviate the administrative burden of documentation for healthcare providers, allowing them to focus more on patient care.

Key functions of Medical AI scribes :

• Real-time Transcription: They can transcribe medical conversations between doctors and patients in real-time, capturing the dialogue accurately. ?
• Natural Language Processing (NLP): AI scribes leverage NLP to understand the context of the conversation, identify key medical terms, and structure the information into a coherent and clinically relevant format. ?
• Automated Documentation: They can generate clinical notes, summaries, and other relevant documentation based on the transcribed conversation, significantly reducing the time physicians spend on manual documentation. ?
• Integration with Electronic Health Records (EHRs): Many AI scribe solutions can seamlessly integrate with existing EHR systems, streamlining the workflow and ensuring data accuracy. ?

"Medical AI scribes are set to become the new virtual awards in 2025 because they offer immediate productivity and efficiency gains, reduce pressure on frontline staff and the supporting NHS workforce, can be trialled and piloted at a small scale by pathway, department or medical specialty. In addition they are rules based with clinicians in control of their design and output, can be integrated to PAS, EPR and medical systems and reduce costs by unlocking in year cash releasing savings.

Medical AI scribes features and benefits are very similar to those realised by virtual wards."

Virtual wards have been widely adopted by NHS Acute Hospital Trusts and are becoming increasingly important within the NHS. While challenges remain, their continued expansion offers the potential to improve patient care, reduce hospital pressures, and enhance the efficiency of the healthcare system.

Virtual wards have played an important role in improving the 'digital maturity' of NHS Trusts across the UK, Medical AI scribes are set to continue this trend with a wide range of new projects anticipated to support medicine, surgery, paediatric and cancer pathways in 2025.

Final Thoughts

All 5 predictions support the strategic importance of Apps, Platforms, Data, and AI to the UK HealthTech market in 2025.

1. Oracle buys TPP > SystmOne
2. Microsoft AI growth across the NHS
3. Workforce Marketplace consolidation
4. NerveCentre grows into a mid market EPR
5. Medical AI scribes become the new Virtual Wards

The phrase "data is the new oil" has been used to highlight the immense value and potential of data in the modern world. Just like oil, data can be a valuable commodity when extracted, refined, and used effectively. In healthcare, this analogy holds particular weight.

Here's how data can be seen as "fuel" for advancements in healthcare:

• Powering Innovation: Healthcare data, when analysed effectively, can fuel groundbreaking discoveries in medicine. Patterns and insights gleaned from large datasets can lead to new treatments, improved diagnostics, and a deeper understanding of diseases.
• Personalising Care: Data allows for a more personalised approach to healthcare. By analysing individual patient data, doctors can tailor treatments to specific needs and predict potential health risks. This can lead to more effective and efficient care.
• Improving Efficiency: Healthcare systems can use data to streamline operations, reduce costs, and improve resource allocation. For example, predictive analytics can help anticipate patient demand and optimise staffing levels.
• Public Health Initiatives: Data plays a crucial role in public health initiatives. By tracking disease outbreaks, identifying vulnerable populations, and monitoring health trends, public health officials can make informed decisions and implement effective interventions.

However, it's important to acknowledge the limitations of this analogy:

• Ethical Considerations: Unlike oil, data is often linked to personal information. This raises serious ethical concerns about privacy, security, and the potential for misuse.
• Data Quality: The value of data heavily relies on its quality and accuracy. Inaccurate or incomplete data can lead to misleading insights and potentially harmful outcomes.
• Access and Equity: Unequal access to data and technology can exacerbate existing health disparities. Ensuring equitable access to data-driven healthcare solutions is crucial.

In conclusion, while the "data is the new oil" analogy provides a useful framework for understanding the value of data in healthcare, it's crucial to approach this resource with a mindful and responsible approach, prioritising ethical considerations and ensuring equitable access for all.

Nelson Advisors work with Healthcare Technology Founders, Owners and Investors to assess whether they should 'Build, Buy, Partner or Sell' in order to maximise shareholder value.

Healthcare Technology Thought Leadership from Nelson Advisors – Market Insights, Analysis & Predictions. Visit?https://www.healthcare.digital?

HealthTech Corporate Development - Buy Side, Sell Side, Growth & Strategy services for Founders, Owners and Investors. Email?[email protected]??

HealthTech M&A Newsletter from Nelson Advisors - HealthTech, Health IT, Digital Health Insights and Analysis. Subscribe Today!?https://lnkd.in/e5hTp_xb?

HealthTech Corporate Development and M&A - Buy Side, Sell Side, Growth & Strategy services for companies in Europe, Middle East and Africa. Visit?www.nelsonadvisors.co.uk

#HealthTech?#DigitalHealth?#HealthIT?#NelsonAdvisors?#Mergers?#Acquisitions?#Growth?#Strategy