NHS England is preparing to redirect future funding towards non-acute and community settings, marking a significant shift in health and technology investment priorities. Speaking at the Digital Health Rewired conference in March 2026, NHS England’s national chief clinical information officer, Alec Price-Forbes, confirmed that upcoming funding “will be focused very much, far more on non-acute settings and community settings”.
The move represents a departure from a long-standing emphasis on hospital-based care, with Price-Forbes acknowledging that for the past “10–15 years” the vast majority of investment has been directed towards acute services. This rebalancing aligns with wider government ambitions to shift care closer to home and reduce reliance on hospitals, an approach increasingly framed as essential to both financial sustainability and improved patient outcomes.
From hospitals to neighbourhood health systems
The funding shift reflects a broader transformation agenda within the NHS, centred on prevention, early intervention and community-based care. Price-Forbes emphasised the need to “left shift” care, moving upstream to prevent illness rather than focusing resources predominantly on treating patients once they reach hospital.
This approach is closely tied to the government’s emerging 10-year health plan, which prioritises a “neighbourhood health service” model. Under this model, integrated care systems (ICSs) and local providers are expected to play a greater role in delivering joined-up services outside traditional hospital settings.
Importantly, the funding changes are expected to give more autonomy to local organisations. ICSs and providers will have greater control over how digital investment is deployed, allowing them to tailor solutions to local population needs. This decentralisation is intended to support innovation at a local level, while still aligning with national priorities around prevention and population health.
Digital transformation enters a new phase
The announcement also signals a shift in how digital transformation is approached within the NHS. After years of investment in core infrastructure, particularly electronic patient record (EPR) systems, the focus is now moving towards optimisation and impact.
Price-Forbes highlighted that the NHS has already invested heavily in hardware, systems and digital capabilities, and that the priority must now be ensuring these tools are used effectively. This includes improving staff training, enhancing system usability and ensuring that digital tools support frontline workflows. The emphasis on optimisation reflects growing recognition that adoption alone does not guarantee improved productivity or patient outcomes.
At the same time, community and primary care settings are expected to benefit from increased digital investment, addressing a historic imbalance where hospital systems received the bulk of funding. Existing capital guidance also supports this direction, with funding streams increasingly directed towards integrated care boards and primary care infrastructure to enable “hospital-to-community” transformation.
Challenges in scaling community-based digital care
Despite the strategic shift, significant challenges remain in delivering digital transformation outside acute settings. Historically, community and primary care services have lagged behind hospitals in terms of digital maturity, with less consistent access to advanced systems and infrastructure. Bridging this gap will require not only funding, but also workforce development and system integration.
There is also the challenge of scaling successful innovations. Price-Forbes noted that while there are “pockets of excellence” across the NHS, achieving consistent national standards remains difficult. Interoperability, ensuring that data flows seamlessly between organisations will be critical, particularly as care becomes more distributed across multiple settings. Without this, the benefits of shifting care into the community could be undermined by fragmented information systems.
Implications for the future of NHS care delivery
The move to prioritise non-acute funding has far-reaching implications for both healthcare delivery and digital strategy. For patients, it could mean greater access to care closer to home, more proactive management of long-term conditions, and reduced reliance on hospital services. For staff, it may involve new roles, workflows and technologies designed to support integrated, multidisciplinary care. For the technology sector, the shift opens up new opportunities in areas such as remote monitoring, population health analytics and digital tools for community-based teams.
However, success will depend on careful implementation. Ensuring that funding translates into meaningful improvements in care will require strong governance, effective use of data, and sustained investment in workforce skills. Ultimately, the announcement marks a turning point in NHS digital policy, moving from a hospital-centric model towards a more balanced, community-focused approach. If delivered effectively, it could play a central role in reshaping how care is delivered across England in the years ahead.
