Healthcare's Future Lies in Subscription-Based Tech—But Funding Holds It Back

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Historically, healthcare technology has been treated as a capital expense.

Hospitals would invest in technology like servers or medical devices that could be bought once and used for decades. But as healthcare technology evolved—particularly with the rise of subscription-based models—this outdated approach is no longer enough to meet modern care needs.

Demand is rising, patient cases are more complex, the pace must be quicker, more efficient, more productive. Coordinating care today requires a lot more than paper notes or spreadsheets that can’t provide real-time updates or slow, clunky legacy systems. 

To meet these demands, healthcare technology has evolved into Software as a Service (SaaS), where the ‘Service’ is as critical as the ‘Software.’

The need to align healthcare tech funding with subscription-based systems

SaaS solutions, such as cloud-based platforms, were designed to help providers deliver better care. They reduce unnecessary admin workloads, giving clinicians back the time and capacity to focus on patients. And here’s the key difference: SaaS doesn’t operate on a one-time purchase, it is subscription-based—a model built for continuous improvement.

Yet funding for healthcare technology is still regarded as a one-and-done investment.

Take the £2 billion announced in the Autumn Budget for NHS technology. It’s capital funding. But what about the revenue budgets needed to support the day-to-day use of technology? Without those, the potential of modern solutions is severely limited.

Healthcare today doesn’t just need hardware—it needs software solutions designed to streamline care delivery and optimise operational processes. And the most impactful solutions aren’t tied to massive, upfront investments or decade-long contracts. They’re designed for “business as usual,” integrated into the daily workings of healthcare teams.

This recurring cost model is important for healthcare organisations and brings significant advantages. 

The benefits of subscription-based tech for healthcare organisations

Subscription-based technology incentivises suppliers to deliver continuous value. If their solutions don’t perform, care organisations can walk away. This accountability ensures every pound spent drives real impact, creating a balanced value exchange to keep providers and tech suppliers aligned.

Compare that to capital-funded technology, which often locks organisations into 10-to-15-year contracts. These long-term agreements leave little incentive for suppliers to innovate beyond basic maintenance. And maintenance isn’t enough. As healthcare needs evolve, capital-funded systems become outdated, costly to replace, and incapable of keeping up with modern demands.

Subscription models eliminate this problem and ensure healthcare systems remain up-to-date, innovative, and relevant to the evolving needs of patients and providers. They’re agile, scalable, and adaptable—a perfect fit for today’s reality.

And as the shift toward community-based care gains momentum, the benefits of revenue-funded digital solutions become even clearer. Cloud-based tools—designed for quick implementation and seamless scaling—are essential for bringing community care initiatives to life. They bypass the bureaucratic red tape of capital-funded projects, enabling faster rollouts and more immediate impact.

Digital solutions aren’t a “once in a decade” expense anymore—they’re a foundational part of healthcare. They support providers in delivering timely and effective care. But to unlock their full potential, we need to move beyond capital funding models.

Treating technology as an operational expense ensures healthcare systems stay efficient, adaptable, and impactful. This isn’t just about budgets or tech. It’s about investing in solutions that continuously improve care for everyone.