This document introduces Intellect's campaign to increase the UK government's investment in healthcare IT to 4% of the NHS budget as recommended by the 2002 Wanless Report. The campaign aims to highlight how increased IT spending can benefit patients, the government, and industry. Specifically, IT can help manage an aging population and chronic diseases, improve patient care and safety, and reduce costly medical errors. The document argues sustained investment is needed to implement larger IT systems and realize these benefits over time through improved processes and access to records.

1. Intellect Position Paper
IT for Better Patient Care
July 2006

2. Contents
1. Background 03
2. Campaign introduction 03
3. Campaign rationale 04
3.1 Changing demographics
3.2 Chronic diseases management
3.3 Patient care
3.4 Efficient spending
4. Sustained investment 05
5. Conclusion 06
6. Next steps 06
7. Intellect contact 06
8. Appendix 07
02 Intellect Position Paper: IT for Better Patient Care

3. 1. Background
In April 2002 the “Wanless Report” was Government accepted the 2002 Wanless
published, reviewing NHS funding and setting recommendation that 4% of the NHS budget
out cost projections over the next 20 years to should be spent on IT in order to have a 21st
deliver high quality health services. In his century standard of healthcare. In 2005 the
Budget statement of the same year the investment target was reconfirmed1 but the
Chancellor announced real terms increases in estimated current spend is half the
NHS funding of 7.4% annually until 2008 but recommended amount and the continuation of
emphasized that this funding must be used to the slight upwards trend may now be under
make the NHS more responsive to the needs of threat.
patients.
On 18 April 2002, the Secretary of State for
Health published an outline of these reforms in
England in the document Delivering the NHS
Plan. This summarised the Wanless Report and
the reform proposals.
2. Campaign introduction
Drawing on members' experience in public and Our two main objectives will be:
private healthcare IT sectors, Intellect has
launched a campaign to highlight the benefits • The government must continue to make
of the recommended 4% spend. The campaign the full and sustained Information
calls on the government to fulfill its policy of an Technology investment as laid out in the
increased spend on Information technology Wanless report to enable support for a
which will bring benefits to patients, the modernised NHS.
government and industry alike.
• Delivery of Wanless commitment of 4%
By engaging in this campaign, Intellect aims to through an increase of annual NHS
increase the government’s healthcare IT spend budget spent only on IT products and
while highlighting the improvements that IT will services.
bring to patient care.
1 Hansard: 21 Jul 2005 : Column 2170W
Intellect Position Paper: IT for Better Patient Care 03

4. 3. Campaign rationale
There are several factors which led us to believe 3.3 Patient care
that a sustained investment in healthcare IT by
the government must continue. Patient care is a key issue in the UK. A recent
(November 2005) NAO report, “A safer place
3.1 Changing demographics for patients: learning to improve patient safety”
highlighted the shocking statistic that 1 in 10
By 2010 the number of people of state patients treated in an NHS hospital will
pensionable age will rise by almost 10%. encounter a patient safety incident. A patient
Pressure on the health system to shorten safety incident is defined as any unintended or
waiting lists and manage the cost of care while unexpected event leading to death, disability,
responding to demographic change of an aging injury, disease or suffering for one or more
population and a lack of medical staff, means patients. One of the main causes of patient
that information technology is essential to help safety incidents is incorrect drug administration.
speed diagnosis and manage patient care. Other common incidents reported were: patient
injury, equipment related incidents, record
The National Audit Office (NAO) International documentation error and communication
Health Comparison presented to parliament failure. Health information technology has been
confirms that amongst nine countries the UK shown to improve quality by increasing
has the highest death rates from cancer and adherence to guidelines, enhancing disease
cardio-vascular diseases – government surveillance, and decreasing medication errors.
investment targets include investment to tackle
these and other diseases with a high IT 3.4 Efficient spending
investment in diagnostic systems.
That same report also brought to light the
3.2 Chronic Disease Management billions of pounds spent by the NHS on
litigation. The cost of settling clinical
The care of people with chronic conditions, negligence claims in 2004-5 was £530 million,
such as diabetes, also consumes a large an increase of £100m in one year, and
proportion of health and social care resources. provisions for outstanding clinical negligence
People with chronic conditions are significantly claims as at end of 2004-5 were £7.6 billion.
more likely to see their GP (accounting for Investment in healthcare information
about 80% of GP consultations) in order to be technology could increase patient safety while
admitted as inpatients, and to use more reducing the government’s expenditure arising
inpatient days than those without such from many of these avoidable incidences.
conditions. The World Health Organisation has
identified that such conditions will be the
leading cause of disability by 2020 and that, if
not successfully managed, will become the
most expensive problem for health care
systems2. Information technology is important
for the management of chronic conditions
through processes which better support
intervention by professionals and carers.
2 ONS Population Trends Spring 2006
3 NAO Internation Health Comparisons 2004
2 Improving Chronic Disease Management, DH
04 Intellect Position Paper: IT for Better Patient Care

5. 4. Sustained investment
The IT agenda enables new processes to be The industry calls on the government and
quickly adapted. Proven and low cost Department of Health to recognise the
technologies are available that improve importance of investment in healthcare IT and
efficiency and safety – for example using the benefits that this investment brings to the
barcodes to identify medicines and clinical NHS and patients.
supplies, linking a blood type to the patient,
and identifying allergies. For example specialist technology helps:
The implementation of larger scale technology − support patients at home
is not speedy. It requires staff to change − reduces the length of stay in hospital
procedures and may disrupt the end user
− provides support for team access to
community. But it is important to ensure the
medical records
development of interoperability standards, the
increased penetration of standardised systems
− improves the quality of medical records
and ongoing support for a sustained investment − increases patient safety
plan in advanced diagnostics and the electronic − lowers litigation costs
patient record – stopping projects midway is a − enables professional staff to see more
waste. patients
− allows more accurate financial
management
Intellect Position Paper: IT for Better Patient Care 05

6. 5. Conclusion
Health services face continued pressure. With Information technology helps both private and
an ageing population the demands made of the public sector organisations manage delivery and
health care system will increase dramatically, increase productivity. Advanced health services
putting even more stress on what is ultimately a need a technical infrastructure to support
finite resource. The physical modernisation of national standards and local needs. In turn this
the service is being matched by changes in also demands an urgent commitment to
practice stemming from new demographics, improving health sector workforce IT skills. A
advances in management of chronic diseases key component of NHS delivery is maintaining a
and an increasing emphasis on all aspects of positive investment in IT and the Wanless target
patient care. There is no doubt that the NHS cannot be ignored. Indeed, pursuing the IT
must continue to change in order to facilitate investment will prove less costly in the long
new ways of delivering effective healthcare. term than halting or not implementing the
programme fully.
The application of IT solutions at an appropriate
level of investment as suggested by the Wanless Intellect believes that the collaborative efforts of
Report is important to achieve efficiency goals. government, stakeholders and industry through
That same investment in IT solutions is also such bodies as the Intellect Healthcare Group
essential to ensure that efficiency does not can successfully address areas of concern.
mean compromising patient care and patient Conviction, courage and perseverance are
safety. needed to deliver a modern, efficient and
competently caring healthcare system fit for the
demands of the 21st Century.
6. Next steps
Intellect looks forward to discussing these issues in greater depth with the
Department of Health and other relevant departments and agencies, with a view to developing appropriate
strategies to improve UK healthcare for
patients and medical staff alike.
7. Intellect contact
Sinead Quinn
Healthcare Programme Manager
T: 020 7331 2164
E: sinead.quinn@intellectuk.org
06 Intellect Position Paper: IT for Better Patient Care

7. 8. Appendix - NHS IT Spend
Intellect Position Paper: IT for Better Patient Care 07

8. Intellect is the UK trade association for the IT, telecoms and electronics
industries. Its members account for over 80% of these markets and
include blue-chip multinationals as well as early stage technology
companies. These industries together generate around 10% of UK
GDP and 15% of UK trade.
For more information go to www.intellectuk.org
Intellect Russell Square House 10-12 Russell Square London WC1B 5EE
T: 020 7331 2000 F: 020 7331 2040 E: info@intellectuk.org W: www.intellectuk.org