Government cuts affecting NHS primary care trusts (PCTs) will be the key driver in the adoption of new patient care technologies, according to venture capitalist Albion Ventures.

Andrew Elder, partner at Albion, said until recently, there has been widespread reluctance to adopt new technologies but cost pressures have seen a surge in interest in areas such as remote patient monitoring, imaging and diagnostics.

He explained, ‘The backbone to all these things is that it will save money. Everyone had been predicting growth in remote monitoring, for example, for about 15 years but it never came - Now it is being taken seriously.

‘A PCT is not going to suddenly change the way it does things just because a new company comes along but you get an acceleration of the sales cycle fast when people look to their neighbours (other PCTs) for best practice when they see something really working.’

The sentiments of Elder are echoed by many investment managers across the VCT and private equity sector as NHS trusts look for new ways to cut costs and manage budgets.

Hamish Mair, head of private equity funds at F&C Asset Management, says advances in modern technology are being recognised as pressure for cost savings increases.

He said, ‘The cuts will force the commissioners of these services to go for cost effective and efficacious solutions which are often provided by the private sector.

'Healthcare companies in France, Iberia and the UK have been affected which means that healthcare has to be done more efficiently.’