What an NHS Bank Could Do for the NHS and for the Country

Photo by Matthew Waring on Unsplash

Economic growth and healthcare are often discussed as separate entities, but their connection is profound. In the UK, the NHS is not just a healthcare system; it’s a cornerstone of our society and a vital contributor to our economy. Yet, the challenges it faces—from workforce shortages to outdated infrastructure—are holding both our healthcare system and economy back. Fixing the NHS isn’t just a moral imperative; it’s an economic necessity.

A Healthy Workforce Is a Productive Workforce

The NHS provides healthcare to over 60 million people. When it functions efficiently, it ensures that the workforce remains healthy and productive. Illness-related absences cost UK businesses billions annually. For example, poor mental health alone results in an estimated 70 million lost workdays each year, costing the economy £45 billion. According to the Centre for Mental Health, the economic and social costs of mental ill health are £300 billion. A well-funded and efficient NHS could significantly reduce these numbers by providing timely and effective care.

Healthcare Delays Hurt Growth

The current state of the NHS, marked by record-breaking waiting lists and delayed treatments, directly impacts economic output. Every delay in care is a delay in someone returning to work, contributing to their community, and fueling the economy. Fixing these systemic issues would not only improve lives but also boost GDP by reducing the economic burden of untreated illnesses.

Investing in the NHS Fuels Job Creation

The NHS is one of the largest employers in the world, with over 1.4 million staff. Investment in healthcare infrastructure, technology, and workforce training creates jobs directly and indirectly. Beyond the immediate benefits of employment, these investments lead to long-term economic gains through improved health outcomes and workforce participation.

Innovation Drives Economic Gains

The NHS is uniquely positioned to be a hub for medical and technological innovation. By further developing partnerships with tech companies and research institutions, the NHS could not only improve patient care but also contribute to sectors like biotech and digital health, which are poised for massive growth. Countries that lead in healthcare innovation often see significant economic benefits, from increased exports to domestic job creation.

The Role of an NHS Bank

One transformative idea is the creation of an “NHS Bank”—a dedicated financial institution to fund innovation and infrastructure projects within the healthcare system. This institution could leverage blended fund structures that combine public and private investments to attract diverse funding sources. Public funds might be utilized to de-risk private sector participation, encouraging investment in cutting-edge innovations and infrastructure upgrades. For instance, public-private partnerships could fund high-potential projects like AI-driven diagnostics or green hospital designs, ensuring the NHS benefits from advanced solutions while distributing financial risks.

The NHS Bank could draw inspiration from the Transform Global model, which I spent years developing before putting it on hold due to personal circumstances, including the passing of my brother and caring for my mother after her stroke. This model emphasizes integrated, scalable funding solutions that align public good with private sector innovation, making it uniquely suited to underpin an NHS Bank. Transform Global’s principles of blended financing, risk-sharing mechanisms, and stakeholder collaboration offer a ready-made blueprint for how an NHS Bank could operate effectively to meet both healthcare and economic goals.

The bank could also act as a modern and progressive venture capital arm to make impact investments at scale, strategically targeting specific areas of innovation that align with NHS priorities. For instance, investments could focus on AI in diagnostics, enabling faster and more accurate patient assessments, or on remote patient monitoring technologies that enhance chronic disease management and reduce hospital admissions. These targeted efforts would not only address critical healthcare needs but also stimulate broader technological advancements, creating a ripple effect of economic and societal benefits.

By ensuring consistent and focused funding, an NHS Bank could accelerate the transformation of the NHS into a system fit for the 21st century. The objective would be to fill gaps for early-stage investment and capacity building and intervene where growth capital needs a strong lead. It would avoid competing where funding was already flowing, instead focusing on new market creation and stepping aside once momentum is achieved.

Blended and Extended Fund Structures

Blended fund structures, which combine public and private investments, could provide scalable, long-term financial solutions to modernize NHS infrastructure and support ongoing innovation. Importantly, the governance model of the NHS Bank would address and avoid the pitfalls of past financing approaches, such as the failures of the Private Finance Initiative (PFI). While PFIs also used the language of off-balance-sheet financing and risk sharing, they often resulted in exorbitant ongoing costs and limited flexibility for the NHS, leaving a legacy of financial strain.

By contrast, the NHS Bank would adopt a transparent and accountable governance framework, with stringent oversight to ensure that projects deliver value for money and align with long-term healthcare goals. These models ensure a diversified funding base, sharing risks while maximizing impact. For example, private investments can be incentivized through public guarantees or matched funding schemes, creating a stable platform for transformative projects.

Extended funding models, like long-term bonds or equity stakes, would provide the financial stability needed to fund large-scale infrastructure projects—from hospital modernization to digital health ecosystems. Leveraging the Transform Global model, the NHS Bank could ensure that funding structures are not only effective but also adaptable to the evolving needs of the healthcare system. This model’s focus on sustainability and scalability would be instrumental in addressing both immediate challenges and long-term goals, providing the NHS with the financial and strategic agility needed to thrive in the 21st century.

Areas Where Innovative Finance Could Transform the NHS

• Modernizing Infrastructure: Investing in hospital upgrades, energy-efficient facilities, and green healthcare buildings.

• Technology Implementation: Funding AI-powered diagnostics, electronic health records, and telemedicine solutions.

• Workforce Expansion: Financing recruitment, training programs, and retention initiatives for healthcare professionals.

• Preventative Healthcare: Supporting programs aimed at early detection and prevention of diseases to reduce long-term costs.

• Rural and Underserved Areas: Developing healthcare access solutions, including mobile clinics and telehealth in remote regions.

• Research and Development: Funding innovation in drug development, medical devices, and personalized medicine.

• Chronic Disease Management: Investing in remote monitoring systems and community-based care to alleviate hospital burden.

• Emergency Preparedness: Building reserves for pandemics, disaster response, and public health crises.

• Mental Health Services: Expanding facilities and programs to address growing mental health challenges.

• Sustainable Healthcare Practices: Funding initiatives to reduce waste and carbon footprints within NHS operations.

Balancing Healthcare and Government Spending

Economic growth is essential to right the balance between healthcare spending and other government priorities. When the economy thrives, tax revenues increase, allowing the government to allocate sufficient resources to the NHS without compromising on education, infrastructure, or social services. A healthy economy and a well-funded NHS are mutually reinforcing, creating a cycle where better healthcare outcomes contribute to economic productivity, which in turn supports sustainable government spending.

An NHS Bank could play a pivotal role in this dynamic. By channeling investments into high-impact areas, it would not only improve healthcare outcomes but also drive economic growth, enabling a more balanced approach to public spending. The result? A healthier NHS and a healthier economy working in tandem.

The Costs of Inaction

Underfunding or neglecting the NHS doesn’t just lead to poorer health outcomes; it also results in higher long-term costs. Emergency care, which is often more expensive, becomes the default for many who can’t access timely treatment. Moreover, long-term unemployment due to untreated conditions drains public resources, creating a vicious cycle of economic stagnation.

A Vision for the Future

Fixing the NHS requires bold action. We need increased funding, yes, but also smarter spending: on preventative care, cutting-edge technology, and expanded workforce training. Policymakers must understand that these are investments, not expenses, with high returns for our economy and society.

Imagine an NHS where treatments are timely, innovation thrives, and healthcare professionals are supported and valued. Such a system doesn’t just save lives; it drives economic growth, making the UK a healthier, more prosperous nation.

By adopting structured approaches like those proposed for the NHS Bank, we can foster a resilient and future-ready healthcare system. This effort aligns public health goals with economic incentives, fostering collaboration across sectors while avoiding the mistakes of the past. Let’s turn the NHS into a model of efficiency and innovation for the benefit of everyone in the UK.

Join the Movement

At Let’s Fix the NHS, we’re dedicated to exploring and advocating for solutions to these challenges. Follow us for more insights, interviews with experts, and actionable ideas on how we can secure a brighter future for our healthcare system and economy.

Fixing the NHS isn’t just a healthcare issue; it’s a mission to secure our economic future. Let’s fix it together.

(Also published on Substack, Medium and LinkedIn - and with the support of Chat GPT)