Unlocking global investment in the NHS

The NHS faces mounting pressures from growing patient demand, limited resources, and workforce challenges, yet its potential to attract high-quality inward investment remains largely untapped. Browne Jacobson's recent white paper with Healthcare World, developed through roundtable discussions with health leaders, policymakers, legal experts, and private sector representatives, offers a roadmap for advancing international investment into the UK health sector. The report's recommendations are aimed at supporting a streamlined process to enable inward investment to the UK health system.

Summary of key recommendations:

• Develop a structured framework for international investment, modelled on successful schemes like VPAG.
• Introduce Public-Private Utilisation (PPU) models and risk-sharing agreements with transparent, NHS-aligned contracts.
• Require reinvestment of a portion of international investor profits back into the NHS.
• Simplify and standardise procurement across NHS Trusts and Integrated Care Boards to reduce fragmentation.
• Incentivise social value in procurement, including job creation, local partnerships, and sustainability.
• Create a unified 'NHS Front Door' to streamline foreign investor engagement.
• Establish a central NHS business development unit to manage trade and investment conversations.
• Align investment strategy with national health data initiatives and remove legal barriers to international data sharing.

Frameworks supporting ethical investment

The White Paper advocates for a 'smart investment strategy' that goes beyond financial contributions, leveraging expertise, innovation, and social impact to ensure sustainable partnerships, with emphasis on addressing social and economic goals while contributing to the government's three aims of hospital to community, sickness to prevention, and analogue to digital. 

Central to this is establishing a structured framework for international investment, similar to the Voluntary Scheme for Branded Medicines Pricing, Access and Growth (VPAG) agreement with the Association of the British Pharmaceutical Industry (ABPI), to ensure private sector investment delivers tangible public benefits. Public-Private Utilisation (PPU) models and risk-sharing agreements are proposed as effective mechanisms, with contracts required to be straightforward, transparent, and aligned with NHS priorities, potentially including clauses requiring a portion of international investors' profits to be reinvested into the NHS.

Procurement reform and accessibility

The lack of clarity surrounding NHS procurement pathways currently hinders effective engagement, with over 1,400 procurement frameworks being available to NHS Trusts/FTs and Integrated Care Boards a highly fragmented system has been created that deters potential partners. Simplifying and standardising NHS procurement processes across NHS Trusts/FTs and Integrated Care Boards is essential to improve accessibility for investors, with reforms recommended to incentivise social value by rewarding commitments to job creation, partnerships with local businesses, and investments in sustainable solutions.

Safeguards for transparency and public trust

The White Paper acknowledges overseas investment in the NHS presents a complex challenge of balancing growth opportunities with public concerns about profiteering and private sector involvement, with public sensitivity around private or foreign entities profiting from the NHS having led to cautious government attitudes. Transparency and clear safeguards in investment agreements are essential to build trust and prevent negative perceptions, with lessons drawn from past experiences in the social care sector, such as privately operated children's homes and aged care facilities, highlighting the risks of inadequate oversight and the potential for profits to be diverted offshore. 

Investment frameworks should prioritise patient outcomes, job creation, healthcare innovation, and maintaining the NHS's global leadership status whilst safeguarding public interests, with strategic communication critical to ensuring investment is framed to enhance NHS capacity and quality, rather than as a step towards privatisation. 

The proposal to develop a unified 'NHS Front Door' for investment would act as a centralised entry point for foreign investors, streamlining the current fragmented approach that confuses investors and limits investment. A dedicated central business development unit within the NHS is also recommended to manage trade and investment conversations and bridge knowledge gaps in international commercial operations, addressing the absence of a reciprocal mechanism that currently leads to fragmentation, inefficiencies, and missed opportunities.

Strategic alignment with government policy

The White Paper's vision aligns closely with recent national policy, including the NHS Long Term Plan and the Life Sciences Sector Plan, both seeking to position the UK as a global hub for health innovation. 

In the NHS 10 Year Plan, the government committed to evolve its infrastructure finance models, representing a welcome acknowledgement of inward investment's potential to address NHS challenges. The NHS Long Term Plan and the 10 Year Infrastructure Strategy have explicitly encouraged continued use of private sector capacity to support NHS service delivery in areas of high need and underperformance. Thereby, emphasising the importance of attracting international investment in key areas such as medical research, digital health, and innovation-led care models.

Particularly significant is the recommendation to align inward investment with a UK health data strategy, with the government urged to implement the Data Saves Lives strategy recommendations. These will accelerate the aggregation and integration of primary, secondary, community, and social care datasets, whilst addressing regulatory and legal barriers to international data sharing with countries that lack data adequacy agreements. 

The report concludes that with bold aspirations and targeted actions the NHS has the opportunity to transform its capacity and innovation potential, driving better outcomes for patients, empowering healthcare professionals, improving the prevention of ill health, and securing the future of the healthcare system for generations to come. For legal practitioners, these recommendations present both opportunities and responsibilities in shaping frameworks that balance innovation with the NHS's founding principles of equitable, high-quality care for all and working with foreign investors keen to work in the UK.

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