Lack of NHS funding into diagnostics - what are the knock-on effects for the industry?

The NHS has cut its spending into diagnostics this year.

When we look into the trends that are impacting recruitment in diagnostics in 2025, it's impossible to ignore the impact that the NHS has on the industry as a whole. Something we've really noticed is that the NHS cutting their spending into the diagnostics space has inevitably has led to a knock-on effect throughout the industry. So what are we seeing? And what can be done to counteract any of the negative impacts?

Greater focus on locums and outsourcing

The NHS limiting their spending has meant there have been recruitment freezes across their internal diagnostic teams. There is still the need for patient care within this industry though, so this has placed a greater emphasis on locums and outsourcing within the NHS.

Clinical outsourcing companies have boomed in the last few years, working to boost capacity in NHS environments. Because of the reduction in spending, these companies will now have more of an opportunity to work directly with the NHS to fulfil their demand, but that also means there will be plenty of competition all wanting a slice of the same contracts. 

To win contracts, these companies will need to make sure their proposition provides NHS patients with quality care as efficiently as possible, whilst also proving to be financially valuable to the NHS. It's a tough balance to strike, but could prove fruitful if done correctly. 

Recruiting strong negotiators into procurement teams could be the best bet to secure the few contracts available.

Switch to different methods

Another option that the NHS may look to take is to switch to a diagnostics process that is less reliant on people and places a greater emphasis on technology and AI. Instead of outsourcing their imaging and diagnostics needs to other people across the globe, they could outsource to technology companies that are able to produce a similar, if not higher, level of accuracy when diagnosing scans, and for cheaper overall.

For current companies that are more reliant on their services being carried out by real people, the value-added will need to be around customer service. Shift communications around your proposition to focus on the great interactions that people will get by partnering with your people-led firm over one that is purely technology-based. We could see a real battle emerge between the two directions. It will be interesting to see how they both turn out.

Recruitment would need to focus on bringing in talent that is capable of providing strong levels of customer service, as well as people who genuinely enjoy providing a great service. Companies that are purely focused on the AI diagnostic technology could see their best customer service talent leave to join these companies that are placing greater emphasis on their skillsets.

Staff looking to leave the NHS

As the budgets decrease within diagnostics, this will likely lead to greater pressure on NHS staff and tough working conditions which may lead to talent looking for a way out of the clinic. Companies that can offer clinical staff a route into a commercial role could have access to a larger pool of talent than they would have previously. Staff coming from the clinic can work well in sales roles as they bring a deep knowledge of the equipment they will be using, as well as the needs and requirements from customers in the space.

If you're interested in hiring ex-clinical talent into commercial roles, check out our Clinical to Commercial Guide to see the typical salary bandings and bonus packages for a range of entry-level roles.