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Healthcare industry

  • Last modified date:
    8 February 2007

The UK healthcare industry serves the needs of an increasingly health-aware population. It is an extremely diverse sector covering a very wide range of product types and healthcare uses.

The term "healthcare industries" is not clearly defined and may be used to encompass medical devices, systems and technologies, laboratory equipment and associated support services eg planning, design, management, training and education. The majority of large companies operating in the UK are foreign-owned, notably American. The healthcare sector exports around £4 billion worth of goods and services annually into a global market that is growing rapidly, as individual expectations rise, and political pressure grows in many countries to improve services and facilities. The sector employs about 50,000 staff.

The term "medical device" covers all products, except medicines, used in healthcare diagnosis, prevention, monitoring or treatment of illness or handicap. The number of significant UK medical device companies is small and vary from those with less than £1m/year turnover (about 1800 companies or 85 %) to those with £500m - £ 1bn sales (source COMAP II). It is estimated that about 38 million people in the UK per day have contact with a medical device. Patients on whom devices are used include those visiting hospitals, GPs, dentists, opticians, chiropodists as well as those who daily use glasses, contact lenses, dentures etc.

Overall the sector's export is growing rapidly as individual expectations rise, and political pressure grows in many countries to improve services and facilities. The UK's increasing presence in the global market has been attributed to three main factors: complementary relationships between the industry, the Government, the NHS, the private sector and voluntary organisations; a highly developed healthcare infrastructure; and an outstanding and well-supported research base.

The UK's increasing presence in the global market has been attributed to three main factors: complementary relationships between the industry, the Government, the NHS, the private sector and voluntary organisations; a highly developed healthcare infrastructure; and an outstanding and well-supported research base.

Healthcare Industries Task Force

HITF came about because of the healthcare industries' wish to develop a strategic dialogue with Government.  Launched in October 2003, it was a joint year-long initiative which addressed a number of issues of common interest and agree solutions or improvements that would bring benefits for patients, the NHS, the national economy and industry. Lord Warner, the Health Minister (formerly health minister responsible for medical devises industry sponsorship), co-chaired the Task Force with Sir Chris O'Donnell, CE of Smith & Nephew. The areas of focus were market access, R&D and the industrial base, regulatory issues and international trade.  The central themes which emerged were how to stimulate innovation in the NHS and industry and how to increase adoption of new useful medical technologies.

A new joint strategic group has been established to oversee implementation of HITF outputs, co-chaired by Health Minister Andy Burnham and Sir Chris O'Donnell.  The Strategic Implementation Group (SIG) will meet for the third time on 12 July and will meet for the final time in Nov 2006, bringing the work of the group to a close around the end of the year.  

The work arising from HITF outputs is ongoing and will extend beyond the lifetime of the strategic implementation group. Government continues to work closely with industry in implementing the solutions agreed by HITF and there is a significant degree of agreement on the measures under development.  Some major changes in policy and procedure is involved which will impact a wide range of stakeholders.  There is a firm belief that taken together, the various measures will over time improve patients' access to new, efficient medical technologies that will not only benefit patients, but also enhance the careers of health professionals, improve the performance of the industry, create a vibrant, competitive business environment and help Government achieve its targets in relation to our health and social care services. 

Further details are available from the links below or the Association of British Health-care Industries (ABHI). ABHI is the lead trade association for the medical systems industry, representing manufacturers / suppliers of medical devices, equipment & services. Its member companies produce around 80% of the British medical systems industry's output - including manufacturers and distributors of medical equipment and consumables, service providers and health-care planners.

Healthcare export promotion

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