How the new government is shaking up the healthcare sector

The UK healthcare sector is undergoing a period of significant change and uncertainty as the new government sets out its vision and priorities for the next decade. SJ Leatherdale, Partner, Healthcare and Life Sciences Practice, considers the challenges and opportunities in the healthcare sector, the role of independent healthcare providers, and the importance of succession planning.

Future planning

Professor Lord Darzi, a former health minister, is conducting a comprehensive review of performance in hospitals, acute trusts, and mental health trusts; the findings of which will feed into the government's eagerly awaited 10-year plan, On a Journey to Better. Due to be released in spring, the plan establishes an expectation for leaders to focus on correct actions. This initiative is expected to address the future restructuring of the NHS and social care, with a focus on transformation and efficiency. However, there are concerns about the potential costs of these changes, as well as fears that a high volume of senior leaders in the healthcare space may retire or leave the system, creating a leadership vacuum.

Care Quality Commission (CQC) review

Wes Streeting, Secretary of State for Health and Social Care, has initiated a review of the CQC, the regulator and inspector of health and social care services in England, following an independent report that identified "significant failings" in its performance and accountability. The review will examine the CQC's role, governance, accountability and effectiveness, and will publish its report by the end of the year. This could have major implications for how health and social care providers are assessed, rated and supported to improve quality and safety standards. The findings will also be linked to the government’s 10-year strategy.

Industrial action and pay reviews

A central focus of the new government’s healthcare strategy is resolving the industrial action caused by pay disputes within the NHS under the former government. Chancellor Rachel Reeves has agreed to pay rises for junior doctors, senior NHS managers and other healthcare workers, as recommended by the NHS Pay Review Body. This is expected to boost morale and productivity in the healthcare sector, although concerns remain how these pay increases will be funded, and whether it will be sufficient to retain and recruit the necessary talent for the future.

Collaboration between public and independent sectors

Within the independent healthcare sector, there is opportunity to collaborate with the NHS to expedite patient treatment. Independent providers are securing contracts from the NHS, and there is a growing trend of individuals choosing to pay for their medical procedures and diagnostic services. The government's plan is expected to include measures to promote a more sensible partnership between the public and independent healthcare sectors, requiring new models of governance, funding and contracting, as well as new skills and capabilities for leaders and managers.

Talent pipeline

Interim leaders play a vital role in this industry, by providing stability and continuity, supporting the transition to new ways of working and delivering care. Interim leaders can also bring fresh perspectives, insights, and expertise from other sectors and environments, and help foster innovation and collaboration.

Odgers Interim have a wealth of experience and a proven track record of placing interim healthcare executives across all disciplines and levels, from chief executives to other board directors – all covering the C-Suite level of strategic transformation skill – and project and programme directors. Our network of talented and experienced interim leaders can deliver results and add value to any organisation.