BIVDA’s Director of Policy and Programmes Paul Fisher recently wrote a guest blog for the Health Innovation Network on the value of diagnostics. In his blog, he calls for a new, innovative approach to how the value of diagnostics are assessed by health systems.

In vitro diagnostics (IVDs) are central to modern, data-driven healthcare. They are responsible for informing over 70% of clinical decisions, are called out specifically in the Life Science Sector Plan as being crucial to two of the NHS’s three shifts, and contribute £1.6 billion annually to the UK economy.

There is a significant opportunity for relatively low cost IVDs to drive early detection and targeted inventions, while yielding high-value outcomes. Despite this, they only account for 1% of NHS spending, and the path to adoption for diagnostics remains very challenging.

Bridging the gap between cost and value

To capitalise on the opportunities of diagnostics, we need a new paradigm which focuses on the value that can be added, not just the cost.

The NHS adoption system is biased to cost, not value.  It is tribal — resistant to departmental saving being funded from another department’s budget.  Short-term funding settlements discourage long-term planning.

Adding a diagnostic to a pathway adds cost, and unless this cost is assessed against value — to patients, tax-payers, and the economy — the odds are against adoption from the start.  This disadvantages UK patients and drives innovators abroad to easier and more profitable markets.

There are green shoots of recovery, with the Government looking to adopt value-based procurement and to support SME’s to grow, scale, and remain in the UK. If we want to keep that talent, research, and commercial benefit in the UK, we need to shift the conversation.

Partnership working

Regional innovation ecosystems can ensure that best practices and value-generating tools are adopted throughout the NHS. Through partnerships with SMEs, universities, and trusts, the health innovation networks are well-placed to support real-world evaluation and to help bridge the gap between laboratory innovation and frontline delivery.

Collaborative working between diagnostics companies, health systems and research institutions helps to navigate adoption pathways and build the evidence base that the NHS needs.

Articulating need

Lastly is understanding and articulating need.  Where innovations — not just new technologies, but also new processes or approaches — are most likely to be able to demonstrate true value, is in areas of unmet clinical need.  The more clearly this can be demonstrated, the easier for innovators to assess and evidence value.

Investing in diagnostics is an investment in better care, improved population health and a stronger economy. By supporting earlier intervention and more precise treatments, diagnostics reduce strain on services and improve outcomes. With the right approach — focused on value, collaboration and need — we can ensure they play a more prominent role in a sustainable NHS.