Four in five healthcare businesses fear for patients as firms hit by cost pressures

82 percent of healthcare businesses, including assistive technology suppliers, fear that the quality of care received by patients is at risk due to the current economic crisis.

That is according to new data from the British Healthcare Trades Association (BHTA), which reveals a hidden crisis facing organisations providing health and social care products to hospitals and patients in the community.

In a survey of BHTA healthcare firms providing medical devices, mobility aids, prosthetics, stairlifts, beds, orthotics, and independent living equipment across the NHS supply chain, via prescription and direct to users, the trade body found that two out of in five will consider reducing the amount of stock they produce or distribute due to ongoing operational pressures.

In addition, over one-third will consider cutting employees from their businesses; 29 percent will focus on other international markets, causing a drain of healthcare jobs and investment from the UK to Europe; and 84 percent believe that the challenges they face are not well understood by the UK Government.

Nine out of 10 firms would also like to see financial support, greater regulatory certainty, and reform of red tape and regulations to ease operating pressures for healthcare businesses.

BHTA warns that firms are being hit with unprecedented financial challenges following the pandemic, global supply chain delays, and uncertainty in the post-Brexit regulatory transition, which could mean that entire lines of products will disappear from the UK market.

Higher manufacturing and distribution costs were cited as the largest concerns for businesses, followed by workforce, skills and wage inflation, and supply chain delays.

The association further cautions that the planned switch to new UKCA labelling requirements for medical devices, a move decried for unnecessary cost and burden by small and medium businesses, presents a further cliff-edge for the health and social care industry.

David Stockdale, Chief Executive of the British Healthcare Trades Association, said: “These findings are incredibly worrying but unfortunately not surprising for those in healthcare businesses.

“For too long, we have urged the Government to listen to the very real concerns of those in our sector and are appalled at the lack of understanding and urgency shown by ministers to seek a solution to these pressures, pressures with a direct impact on the quality of care received by UK patients.

“Without a fast resolution, businesses will be forced to discontinue products and services, investment confidence will be decimated, and we will lose jobs and goods to international markets with more stable and business-friendly regulatory environments. There has never been a more important time for the Government to step in and support British manufacturers as they strive to provide the very best products and support for UK patients to live healthier, happier, and more independent lives.”

BHTA’s latest survey findings follow a raft of headlines about the healthcare sector facing unprecedented challenges.

In November 2022, NHS England warned that 25 percent more beds were being blocked in winter 2022 compared to winter 2021. It cited a “perfect storm” of winter pressures being the cause of this bed blocking, with major spikes in virus cases, ongoing emergency care pressures, and a lack of available beds.

Staffing issues have also strained the healthcare sector, with numerous NHS strikes taking place recently.

Within the assistive technology sector, Chartered Society of Physiotherapy (CSP) members that work within the NHS across Scotland and England and Wales have voted in favour of strike action due to being unhappy with their pay.

CSP members in Scotland have since been encouraged to accept the Scottish Government’s most recent NHS pay increase offer, which offered an average pay uplift of 7.5 percent.

In England and Wales, CSP strike action is continuing, although negotiations are “on the table” with health ministers to avert strikes.