What Healthtech Companies Should Consider When Entering the UK Healthcare Market

Abstract

Healthcare systems around the world are facing a multitude of challenges, mostly
because of aging populations. The Covid-19 pandemic put further strain on the sector and has left many countries with a backlog of medical procedures, which further exacerbates the issues. New technological products and solutions are one way to relieve healthcare workers and enable more efficient care. Zymego is a company providing such a solution: a service for bookings which automatically fill
cancellations, allowing for shorter waiting times for patients and less administrative work for doctors and nurses.

Zymego is looking into the possibility of entering the UK healthcare market. Due to the size and complexity of UK market and healthcare system, there is a need for
further investigation to understand how the market can and should be approached.
Therefore, this study investigates the UK healthcare market with the aim of identifying what challenges exist for a healthtech company entering the market, and how companies can respond to these challenges.

The thesis identifies answers to these questions through a literature review, a
multiple case study and interviews with people in the industry. Insights from all
collected information were compiled, and the thesis results in a framework of the
main challenges on the market with corresponding ways for companies to respond to them. These general findings are also applied to Zymego.

Popular Abstract

Today’s healthcare is facing several challenges, mostly as a result of aging populations all over the world. Digital solutions are likely to play an important role in future healthcare but so far, the sector has lagged in adopting new technology. This study investigates what challenges healthtech companies face when entering the UK market and identifies how they can respond to overcome these challenges.

Zymego is one of many Swedish healthtech companies interested in entering the UK market. While healthcare in Sweden and the UK works somewhat similarly, the size and complexity of the British system means there is a need to further investigate the market, which was the purpose of this thesis. Based on a literature review, expert interviews, and a multiple case study (consisting of four Nordic healthtech companies being or have been active in the UK), three main challenges healthtech companies face on the UK market were identified: (1) the healthcare system is fragmented and lacks transparency, (2) the market is crowded, and (3) the healthcare sector is risk averse. The thesis also provides a way for companies to respond to each of the challenges: (1) gain market knowledge, (2) establish a clear strategy, and (3) build trust. The responses are broken down into concrete activities or steps a company can take to deal with the identified challenges.

The fact that the UK healthcare system is fragmented may come as a surprise to some. On the surface, many perceive the NHS (National Health Service) as one customer. In reality, the care providers commissioned by the NHS are individual organizations that mostly retain the decision-making power on what products and services they purchase. This makes it more difficult to understand the system, as well as more time and resource consuming when selling services.

Together, the identified challenges and correlating responses constitute a general framework, which is also applied to the company Zymego. The framework leads to a discussion of the specific implications for them and their service, which can aid in their UK market entry.

The findings provide guidance to any healthtech company looking to enter the UK healthcare marketspace, and since there is a need for more innovation in UK healthcare, this is of great importance. The healthcare sector has for long lagged behind in both digitization and adoption of new technology. The UK, and the NHS (National Health Service), is no exception. Digital solutions are crucial in order to meet the future demands on healthcare, and the NHS also recognises the need to adopt more innovation. Hopefully, this thesis is not only helpful for companies, but can also have a positive impact on UK healthcare when more digital solutions are adopted. Ultimately, this can result in better, safer, and more efficient care, as well as healthier patients.

• author: Hökstrand, Lovisa and Björklund, Ella
• supervisor: Lars Bengtsson
• organization: Innovation Engineering
• course: INTM01 20221
• year: 2022
• type: H2 - Master's Degree (Two Years)
• subject: Technology and Engineering
• keywords: UK healthcare, NHS England, healthtech, internationalization, market entry, market barriers
• language: English
• id: 9085424
• date added to LUP: 2022-06-08 13:34:27
• date last changed: 2022-06-08 13:34:27