2 Structure of the healthcare industry
8. The medical technology industry in the UK is extensive,
diverse and innovative. It covers a wide range of medical consumables,
hospital supplies and equipment, devices used in the community
and services. It is a significant component of the UK economy
and has potential for considerable growth. The industry in the
UK consists of approximately 4,800 companies, with 85% having
a turnover of less than £5 million per year.[7]
It employs in excess of 55,000 people, has combined annual sales
of £6 billion[8] and
accounts for £3 billion of export earnings.[9]
9. The NHS is the main purchaser of medical devices
and is an important market for Information Technology equipment
and services. In an effort to bring closer co-operation between
the Government, the NHS and healthcare companies the Healthcare
Industries Task Force was announced in October 2003. The aim of
the HITF is to bring benefits for:
- patients and service users;
- the NHS;
- social care;
- and to help improve the healthcare industry's
performance.[10]
10. Research is key to this industry. The industry
spends approximately £380 million per annum on research and
development. The Government provides a large amount of funding.
The Department of Health's budget for NHS research and development
is over £600 million in 2004-05, of which £480 million
is allocated to NHS providers[11].
75% of the money from these allocations meets the service costs
to the NHS of research funded by research councils and charities.[12]
11. A number of organisations exist to bring together
healthcare companies, patient groups and clinicians to improve
co-operation and communication in the development and implementation
of medical technologies. The Association of British Healthcare
Industries is the leading trade association for the medical systems
industry. Its aims are to advance and promote medical systems
(devices, equipment, technologies and services) within the UK
and globally, and to provide a forum for policy discussion with
the industry's customers, legislators, public bodies and interested
groups.[13] The Medical
Technology Group (MTG) is a coalition of patients, patient groups,
medical professionals and the industry keen to widen the availability
of medical technologies in the UK.[14]
7 Better health through partnership: a programme
for action, Healthcare Industries Task Force, November 2004,
p 16 Back
8
Ev 6 Back
9
"UK's medical technology industry has hit £3bn exports",
ABHI press release, 10 February 2005 Back
10
Better health through partnership: a programme for action,
Healthcare Industries Task Force, November 2004, p 5 Back
11
NHS providers - companies and academia external to the NHS Back
12
Ev 31 Back
13
About ABHI - Overview, http://www.abhi.org.uk Back
14
Making the Economic Case for Medical Technology, The Medical
Technology Group, November 2003 Back
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