Sound money: How SCC Payment Solutions can unlock Finance, Innovation and Technology (FIT) in healthcare

06.10.2023

It seems strange to say that the NHS is under more financial pressure than ever before, despite the fact that funding for it has reached record levels. This is down to a variety of reasons: some of them are knock-on effects of the Covid pandemic, such as ongoing costs and the elective care backlog. However, some are more macroeconomic in nature, such as rising energy costs, inflation and increasing demands to improve staff pay.
Whatever the reason, it’s clear the NHS has to find some financial efficiencies wherever possible.

Trusts in NHS England are estimated to post a total deficit of around £2 billion for 2022-23, while the need to embrace new technology and digital transformation means that spending on new tech is up 50% year-on-year. This blog explores those cost pressures in more detail – and why a new approach to payment solutions can play a major part in resolving them.

Multiple challenges playing their part

It’s important to remember that there is no single reason for the financial pressure that the NHS is facing at present. Instead, there are number of different issues that all have to be addressed simultaneously:

Budget constraints

It’s becoming harder than ever for the NHS to operate with its current level of funding without compromising itself in staffing, technology or care delivery. NHS England’s budget for 2022/23 was forecast to be 1.4% smaller in real terms than it was the previous year, meaning more difficult decisions are having to be made more often.

Low workforce engagement

Staff shortages are now a regular occurrence throughout the NHS, the result of long-term funding shortfalls, some poor workforce planning, rising demand for care, and staff that have become overworked, stressed and demoralised. NHS England says it is currently operating with 154,000 fewer full-time staff than it requires, a figure expected to rise to 571,000 by 2036 if no changes are made

Backlog in elective care

Even after the publication by NHS England of a plan to tackle the elective care backlog in 2022, waiting lists have continued to rise, reaching 7.42 million people waiting for treatment as of April 2023

The cost of innovation

The NHS has recognised the need to innovate with technology, in order to make treatment faster, more effective and more efficient. However, mistakes have often been made by trusts in adopting technology in the most cost-effective and value-adding ways, and it can be difficult to work out how to maximise the benefits when investment capability is limited

How SCC payment solutions can help

Many of the more obvious ways to find financial efficiencies – getting more work from staff and driving value through procurement, for example – have already been taken to their limits in many cases. This means trusts and other NHS bodies are having to look at alternative ways to free up budget and relieve the pressure, and one way is to explore more flexible payment solutions.

Through these models, healthcare organisations can embrace new technologies, phase out expensive platforms that are old and obsolete, and right-size their software estate for maximum cost efficiency and smoother cashflow. As well as this, they can also be provided with new opportunities to reclaim VAT and avoid PDC charges.

There are three different payment solution models to choose from:

Software Payment agreement:

A simple and effective way to make an immediate impact on your budget and streamline your processes, is to focus on software and maintenance renewals, and locking prices for at least the next 3 years. We can secure the economic benefit of a 3-year commitment without you having to pay the entire amount up front. This improves cashflow, budget visibility and removes any fluctuations from one month to the next.

As-a-service option

Moving towards an ‘as-a-service’ consumption model allows software, hardware, support and refreshing to be funded from operational expenditure via a repayment plan. A single, all-inclusive monthly payment covers all relevant requirements, as well as full management through a single managed solution.

Value Release

For customers who want to transition from a CAPEX procurement model to an OPEX model, and who have IT in varying stages of the asset lifecycle, we can release the value from these via SCC’s Value Release solution. We enable customers to release capital back into the organisation, as we purchase any items the customer wishes to keep using at the agreed current value. These technologies can then continue to be used in the customer IT estate with repayments being made in line with remaining useful life.

In summary

SCC can provide all three of these payment solutions and help healthcare bodies like yours realise much-needed financial efficiencies. If you need to drive digital transformation, address a budget deficit or lighten the workload on your employees, then these solutions can make a real difference in the long-term.

Why not book a 1-2-1 consultation with our payment solutions specialists to discuss further