The independent healthcare sector is ready for change

Last week, we partnered with NatWest bringing together C-suite leaders from across the independent healthcare sector to share insights and challenges in a closed-door roundtable.

The economic backdrop

The discussion opened with Paul Robson, who set the tone by outlining the broad economic forces shaping investment, public spending, and growth across the UK economy. The UK is buffeted by multiple factors, both internally, such as high interest rates and low productivity and externally, geopolitical shocks, global conflict and supply chain disruption. The challenge facing both the government and wider industry is how to unlock long-term investment across critical sectors. 

Healthcare sits at the centre of that challenge. 

The policy context: the NHS 10-year plan

The 10-year plan for the NHS signals a significant shift in how care could be delivered and funded in the coming decade. The plan emphasises moving care away from hospitals and into out-of-hospital care, making greater use private sector capacity to treat NHS patients. It also proposes giving high-performing providers greater financial and operation autonomy.

For many in the room, these proposals highlighted both the scale of opportunity for partnership and the structural questions that need to be addressed. Leaders spoke about examples from other countries, such as in Germany, where there is greater integration and collaboration between state and independent healthcare providers. 

As the government’s 10-year plan for the NHS seeks to expand community care and reduce waiting lists, many around the table noted that the independent sector already brings the capacity, capital and capability that would help deliver these ambitions at pace.

The operational and regulatory reality

The conversation moved onto the operational and regulatory reality, examining deeper structural questions: how the system is regulated, how innovation can be adopted, and whether the current policy environment limits the long-term thinking healthcare requires.

As highlighted by Carlton Sadler, one of the strongest themes to emerge was the growing sense that the current regulatory system is under intense strain. Leaders spoke openly about the disconnect between the CQC and healthcare operators, citing insufficient dialogue that’s slowing progress.

Participants questioned whether today’s regulatory approach reflects modern healthcare, particularly as new technologies and patient expectations continue to evolve at pace. 

Patient choice

A point of consensus was that patient choice, in its current form, is more theoretical than real.

Structural constraints and limited access points often leave patients with fewer options than policy narratives suggest. Without meaningful choice, the system struggles to deliver patient centred care.

The tension between short-term political cycles and long-term healthcare outcomes 

Healthcare, by its nature, demands long-term decision making. Yet much of the system remains shaped by short political cycles, caused by ministerial changes as well as elections.

Attendees said that decisions affecting human life, longevity and workforce wellbeing cannot be sustained by shifting priorities every few years. Unlocking long-term investment and planning, particularly in infrastructure, workforce and technology was seen as fundamental to future outcomes.

Technology is moving faster than the rules

AI and digital health tools featured heavily in the discussion.

Participants noted that:

• Regulation is struggling to keep pace with AI innovation
• Proven technologies remain underused in day-to-day healthcare delivery
• The rise in use of technology such as wearables could revolutionise how healthcare data is used
• Valuable research and innovation emerging from UK universities is often commercialised overseas due to a lack of domestic pathways

The gap between what is technologically achievable and what is operationally permitted continues to widen.

Commenting on the role of technology in healthcare, Dr Michelle Tempest said:

“As wearable data becomes an ever more integrated part of our daily routine, I believe regulatory oversight will evolve – shifting from a top-down, ad-hoc, check-in to a sophisticated monitoring system that allows operators to be more proactive. This could help address the staffing shortages that have dogged the CQC and other government agencies for decades” 

- Dr Michelle Tempest, Senior Partner, Candesic

The cost of inaction

Beyond patient outcomes, leaders highlighted the broader economic consequences of a system under strain, including the growing number of people unable to work due to long-term sickness. Without effective intervention, innovation and investment, the cost is borne not only by healthcare providers, but the wider economy and workforce.

Looking ahead: the role of the independent sector

A recurring theme was the growing importance and role of the independent healthcare sector. 

Many felt that the appetite, capital and expertise already exist, but that the structural and regulatory barriers limit what’s possible. Any shift would require trust and a compelling public narrative about value and outcomes.

While there was no single solution agreed upon, the conversation made one thing clear, real progress will depend on closer collaboration between regulators, operators, policy makers and investors, 

The challenge is not a lack of ambition, it’s creating a framework that allows new thinking to deliver lasting impact.

Reflections from the roundtable:

"The conversation made one thing clear: the independent sector is ready to step up. There is strong capital ready to deploy, and huge appetite to support the system with expertise and innovation. If we can reduce the friction and create a framework that rewards partnership and long term thinking, the sector can play a decisive role in delivering sustainable, patient centred reform."

- Ashleigh Dorrington-Harvey, Co-head Corporate Healthcare, NatWest

“What came through very clearly from the discussion was that the independent sector is not short of ambition, capital or capability. The challenge is that the system it operates within is still geared towards short term thinking, fragmented regulation and outdated assumptions about how care is delivered. If we are serious about improving patient outcomes and unlocking long term investment, we need a framework that encourages collaboration, supports innovation and gives providers the confidence to plan for the long term.”

- Mark Westgarth, Managing Director | Health & Care, Howden

You can find this sector’s latest developments on our Independent Health, Care & Life Sciences showcase page.