Abolition of NHSE sends shock waves across digital health sector

The government’s announcement that NHS England will be abolished has sent shock waves across the digital health community.

Prime minister Sir Keir Starmer said on 13 March 2025 that the management of the NHS would be brought back into the Department of Health and Social Care (DHSC), reversing the top-down reorganisation of the NHS by Andrew Lansley, former Conservative health secretary, in 2012.

We asked digital health leaders to respond to the announcement and how it will impact NHS technology and innovation.

Many expressed concern for NHS colleagues facing an uncertain future.

Although some are optimistic that the changes will reduce bureaucracy, helping to accelerate the shift from analogue to digital, others feel that the disruption could lead to a loss of momentum, causing delays to national IT programmes and funding allocations for digital and data.

Here’s what they had to say:

Rachael Fox, executive vice president, UK & EMEA, Altera Digital Health:

“Bringing the NHS back into the heart of the government has the potential to make meaningful change.

“However, to support recovery and true reform, it’s essential that momentum with innovation to drive better patient outcomes is maintained while we work through this transition.

“There has been great progress with digital maturity and transformation in areas across the NHS and, thanks to the Darzi report, we have clear digital challenges to overcome.

“Now is the time to implement strategies that will accelerate the NHS closer to achieving its digital goals rather than adding barriers.” 

Nick Wilson, chief executive, System C:  

“Stripping away duplicated efforts and empowering trusts with real autonomy could finally deliver the integrated care patients and citizens deserve.

“But we need to make sure we don’t treat the NHS like a political football which will ultimately lead to perpetual reinvention.

“New governments often mean new plans, more disruption and wasted momentum.

“We’re making great strides with AI right now that could transform care delivery and efficiency – yet these innovations risk being sacrificed on the altar of political expediency.”

Nadia Khadim, chief executive, Naq:

“The government’s push to cut bureaucracy and embrace technology is needed in the field of digital health regulation.

“The current fragmented system stifles the very innovations the NHS needs.

“A clear, centralised approach, that adopts automation, can replace today’s red tape, making the NHS supply chain safer and cut costs dramatically.”

Tom Whicher, chief executive, DrDoctor:

“The merger of NHSE and DHSC sets a new tone, with a flatter structure where providers and policymakers work together more closely.

“With the new 10 year health plan due this spring, the stage really has been set for more radical change.

“For this to be effective, we must invest in the execution and delivery skills needed to turn plans into results and provide consistency and certainty to the system.

“With this in place there is no doubt we can deliver a much-improved experience for patients and match today’s bold decisions with an increased pace of frontline change. “

Alison Gardiner, founder and chief executive, Sleepstation:

“The abolition of NHSE marks a pivotal moment for the NHS.

“While we empathise with our colleagues at NHSE, many of us have long recognised the need for radical reform to make the NHS more agile, particularly with regards to the effective adoption and rollout of the most engaging and effective digital health solutions.

“Structural changes alone won’t be enough—meaningful progress requires reshaping processes along with reassessing and setting clear priorities.

“We hope these changes will accelerate the shift from analogue to digital and from rhetoric to reality, addressing waiting times and the availability of essential services.”

Damian Pearce, chief commercial officer, Stalis:

“While there is a lot to be said for cutting bureaucracy, there’s been a perpetual two-year cycle of structural change between centralised control and local ownership, which involves significant amounts of time, money and resources.

“Not to mention the impact it has on staff who work in these organisations. All of which has affected the delivery of real change on the frontline.

“Unfortunately, it means digitisation programmes that are in flight are likely to suffer delays.

“Budget allocations for digital and data might also stall or change.

“And fundamentally, patient care could be disrupted.

“That said, more ‘democratic control’ signals an opportunity to remove bottlenecks and streamline cumbersome processes.

“For example, in procurement where the required approval from NHSE on IT business cases from non-foundation trusts has negatively impacted the scale and pace of adoption.”

Steve Wightman, general manager, health and integrated health, Access HSC:

“While not wholly surprising, the abolition of NHSE and move to more central control unfortunately has the potential – at least in the short term – to delay or even derail the shift from analogue to digital.

“The same applies to Wes Streeting’s two other big shifts, from hospital to community and reactive to preventative healthcare. Sadly, delays could be inevitable.

“Clearly, the devil is in the detail, but our collective focus really needs to be on action – to scale digital and data in ways that can tackle inefficiencies in the system and integrate traditionally disparate care settings.

“We can’t afford any potential delays to funding allocations and strategy implementation, which is likely to come with the necessary processes of disbanding NHSE.”

Rich Pugmire, chief executive, Answer Digital:  

“This news will be highly unsettling, not just for those working in the NHS.

“Moving the NHS under government control will mean significant changes and there is still much more information needed to build confidence in this new structure.

“The government must ensure that improved health outcomes with reduced waiting lists are delivered alongside the challenging cuts that have been announced, both regionally and nationally.

“There are tough times ahead and now more than ever, the health service must leverage industry partnerships to support this transformation.”

Julian Coe, managing director, X-on Health:

“Major changes of this scale require time to fully integrate, and while we must prioritise stabilising the NHS and ensuring patient care is not compromised, we also need to seize the opportunity provided by the upcoming 10 year health plan to transform services for the better.

“We believe that technology, including AI, can certainly play a role in this transition, but the key is improving every practice and empowering healthcare professionals.

“Technology providers must take responsibility for delivering the tangible benefits they promise within the budgets available.”

Dr Rachael Grimaldi, co-founder and chief executive, CardMedic: 

“The real challenge lies not in the decision to restructure, but in how we transform this significant change into tangible improvements for patients and healthcare professionals alike.

“This could have a very real impact on continuity of service delivery across the country, and if executed poorly, risks stifling the progress and innovation in health technology that we so desperately need.

“If it’s done well, with meaningful alignment between innovation, procurement and delivery, it could genuinely transform services and patient experience.

“My hope is that this change creates tangible pathways that enable real transformation in how our healthcare system operates, closing the substantial gap between what clinicians and innovators want to deliver and what the NHS infrastructure can actually support – ultimately leading to better, more equitable patient care.”

Phil Bottle, managing director, SARD:

“My hope is that this isn’t just a restructuring exercise that distracts from the major problems.

“If this latest move helps to streamline decision making, enable more accountability and solves the challenges of workforce shortages to improve patient outcomes, then it is one we can all get behind.“

Darren Ransley, managing director UK & Ireland, Better:

“If this new approach helps to deploy health professionals to the frontline and remove bureaucracy around innovation, then it will be a positive step forward, in my view, to the ultimate aim of improving patient outcomes.

“It’s clear the NHS urgently needs to find a way to function more effectively, without obstructions and with the support of innovative digital solutions.

“My hope is that this is the catalyst that sees health and social care finally come together under one leadership and one strategic direction. ”

Jeremy Nettle, chair of the Highland Marketing advisory board:

“We simply do not know what will happen to the major, national IT programmes that are now in flight, or how these changes will impact technology procurement in the future.

“This uncertainty is compounded by other changes that are underway, with integrated care boards being told to cut their costs by 50%, and trusts being told to cut and outsource services.

“We can only hope that the government will remain committed to its three shifts, including the move from analogue to digital, recognise that this will require continued, dedicated investment in digital technology, and move fast to develop effective new structures to deliver the change it says it wants to see.”

Chris Davies, chief executive, The Institute of Clinical Science and Technology:

“We understand the strain healthcare professionals are under, and we believe the key to easing this burden lies in patient empowerment and a shift to patient-centric, digital-first care.

“As the NHS moves towards a more community-driven, prevention-focused model, we must embrace technology to ensure long-term sustainability.”

Adam Bangle, vice president international, Imprivata:

“The abolition of NHSE and the redeployment of many of the talented individuals that work there, has the potential to reduce layers of bureaucracy which can only be a good thing.

“By empowering NHS leaders to make their own decisions, based on local requirements, NHS trusts and their partners will be free to innovate in ways that will directly benefit their patients in a much faster timeframe.

“Trusts will be free to select the best solution for local needs, such as developing the use of shared mobile devices that provide secure access to patient information at the bedside, or in the community.”

Andrew Hine, managing director, CereCore:

“The abolition of NHSE is a huge step by the government but at a time when rapid dynamic change is required it may liberate the NHS frontline to make the bold changes needed.

“NHS performance and productivity has declined in recent years.

“Reorganisation won’t directly change that but there is a huge opportunity to reshape and modernise care using digitisation to create new service models which are more productive, more efficient and more convenient.

“We have seen that happen in health systems around the world. The responsibility to do this in England is firmly in the hands of local NHS leaders following the government’s announcement.”

Joint statement from the Clinical Safety Officer (CSO) Council:

“The CSO Council hope that the DHSC will continue the good work of the very small NHSE digital clinical safety team in their championing of digital clinical safety standards for software.

“We also hope that the much-needed review of the DCB0129 and DCB0160 standards will continue.

“The current NHSE standards for digital clinical safety can complement digital innovation and should not be seen as a barrier to progress.”

Kimberley Dawson, senior digital CSO, Bedfordshire Hospitals NHS Trust:

“It’s upsetting for these colleagues who it directly effects and the uncertainty it brings moving forward to those not directly working for the NHSE.

“It will be another difficult time whilst all staff in these groups find their footing and hopefully support each other moving forward to try and deliver objectives placed by NHSE and beyond in the 10 year plan.”

Martin Carpenter, health chief information officer, Government of Jersey:

“Digital health colleagues have long struggled with the time and effort required to process, approve and release central funds for crucial investments.

“Sometimes, money is released for unnecessary things, while essential needs went unfunded.

“Overall, I support the move and hope changes happen quickly to avoid prolonged uncertainty for those affected.

“However, it is also crucial that key national services, especially in digital and cyber, remain undisrupted during this significant transition.

“I hope this move enables systems to take on greater levels of accountability and deliver change at far greater pace.”

Read Digital Health’s message of support of NHSE staff and those affected by cuts to integrated care board running costs on LinkedIn here.