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Life Sciences Sector Plan – What it Means for MedTech
The Life Sciences Sector Plan sets out a future where NHS procurement, payment models and governance align to support innovation. For MedTech, it signals the possible end of pilot purgatory – replaced with clearer entry points and stronger pull-through. But with major reforms to ICBs, provider competition, and capital controls in flux, the road ahead is complex.
A New Procurement Logic
The plan confirms a shift from price-based procurement to value-led contracting. NHS England will support Integrated Care Boards to adopt innovations through outcomes-based payments and real-world data. A new digital platform will support procurement of MedTech, diagnostics and AI tools with pre-evaluated value dossiers.
For innovators, this means earlier engagement and a clearer path to scaling – but only if local systems can adopt at pace.
‘Patient Power Payments’ and Payment Reform
New incentives will be piloted where patients help determine whether providers are paid in full – based on experience and satisfaction. Year-of-care payments will also be tested, moving away from block contracts and towards integrated budgets covering hospital and community care.
These changes could reward prevention, coordination and digital tools – including those that reduce acute demand or improve long-term condition management.
Integrated Care, Redrawn
The NHS operating model is being reshaped. Strong Foundation Trusts may become “Integrated Health Organisations” – managing whole-population budgets. Elected mayors will lead reformed ICBs, which will no longer include NHS providers or local authorities. Scrutiny and commissioning will sit with place-based partnerships, not central boards.
The intent: create clearer provider roles, restore competition, and decentralise budgets. The impact on adoption routes for MedTech is still to be seen.
What’s Missing
The Plan promises reform, but leaves NHS England’s role ambiguous. ICB fragmentation and cuts risk further slowing uptake. There’s also little clarity on how frontline teams will be incentivised to adopt value-based tech – or how procurement levers will overcome risk aversion in local systems.
Capital access and workforce incentives for adoption-ready innovations remain underdeveloped.
Our Take
For MedTech, the Life Sciences Sector Plan could finally link innovation to system reform – replacing fragmentation with purpose. But delivery will depend on local system stability, shared data platforms, and financial signals that reward uptake.
"The NHS can be an engine of MedTech adoption – if the incentives, procurement tools and leadership align. The next 3 years will tell."– Richard, CEO, Health Analytical Solutions
Read the full government strategyUK Life Sciences Sector Plan (GOV.UK)
This is Chapter 3 of our explainer series. Series complete – further analysis as policy detail emerges in NHS reform and ICS restructuring.
If you have a technology aligned with the priorities of the UK Government Life Sciences Sector Plan, now is the time to act. We can help you navigate the evolving access landscape, shape your value story, and prepare for the next steps in your journey.
Get in touch: enquiry@healthanalyticalsolutions.co.uk or visit https://www.healthanalyticalsolutions.co.uk/services to explore how we can support you.
© Health Analytical Solutions 2025