The UK Government’s decision to create NHS Online — a new national “virtual hospital” service — marks the most significant shift yet in the NHS’s virtual-care strategy.
Within just two years, NHS England plans to move from today’s fragmented patchwork of local virtual ward models toward a nationally procured and centrally operated service, delivered through the NHS App and integrated with the planned Single Patient Record.
The plan is for NHS Online to be an NHS operated service, possibly established as a special NHS Trust.
For suppliers, this change signals a clear intention to move away from hundreds of small-scale remote-monitoring and virtual ward projects, of which up to 400 are thought to exist. The direction is towards a unified, large-scale market for virtual care infrastructure — spanning monitoring devices, data platforms, workflow tools, and patient-engagement systems.
This is likely to be a modular approach delivered as part of a common national standards-based platform.
While the direction of travel has been signalled to centralisation, many questions remain on how current virtual services will be migrated from the current mosaic of projects and suppliers. As ever, delivery will be everything.
One of the major unknowns is whether the planned new platform connects with the patient-facing offerings of EMR vendors such as Epic, whose MyChart platform offers one of the most sophisticated and fully realised virtual care capabilities. For trusts with such capabilities already, the new national platform may initially be a backwards step.
A New Virtual Hospital Model
Announced by Prime Minister Sir Keir Starmer at the Labour Party Conference, NHS Online will function as a dedicated, publicly owned virtual hospital staffed by NHS clinicians. It will initially focus on outpatient follow-up appointments and selected low-risk treatment pathways where face-to-face care can safely be replaced by digital consultation.
The Government’s stated goal is to deliver 8.5 million virtual appointments and assessments over three years from 2027. This is equivalent to about 2% of all outpatient appointments in England, or the workload of a large teaching hospital. If achieved, this would represent a significant volume of activity migrating to virtual delivery channels, but still less than the current annual rate of growth in outpatient appointments.
Centralisation and the 10-Year Plan’s National Platform
The creation of NHS Online aligns closely with commitments in the NHS 10-Year Plan for Health (10YP), published in July 2025. The 10YP calls for a nationally procured digital platform for proactive, community-based care that embeds virtual ward functionality and enables “remote-first” management of chronic and post-acute conditions.
The new national platform is described as covering four key capabilities:
- Remote patient monitoring, with data flowing into the NHS App and Single Patient Record.
- Care-plan creation and tracking, scheduling, and adherence monitoring.
- Visualisation of the Single Patient Record.
- Multidisciplinary team management and workflow coordination.
Current Suppliers Most Exposed to National Platform Shift
Suppliers likely to be directly impacted by the move toward a national NHS Online platform are those suppliers currently most active in the virtual wards and hospital at home markets. These include:
- Doccla – currently among the largest providers of remote monitoring and virtual ward technology to NHS trusts.
- Current Health (Best Buy Health) – strong presence in hospital-at-home models with device integration.
- Spirit Health – virtual ward and home monitoring solutions with multiple ICS deployments.
- Huma – digital-first monitoring and research partnerships with NHS providers.
- Docobo – established in community-based remote monitoring; may face competition from newer platform models.
- Inhealthcare – integration-focused remote monitoring service with broad ICB adoption.
- Luscii – European remote care platform with UK expansion ambitions.
- Tunstall – legacy telehealth provider potentially challenged by more modern interoperable standards.
Virtual Wards: Foundation and Fragmentation
The current market for virtual wards is extremely fragmented, reflecting piecemeal funding, a lack of standards, and funding local small-scale initiatives.
By mid-2024, the English NHS had over 11,600 virtual ward beds operating across more than 400 local programmes. NHS England’s previously stated long-term ambition was to reach 40 to 50 virtual ward beds per 100,000 people — which would equate to roughly 24,000 beds nationally. The initial investment was £450m over 2 years.
Funding during and after the Covid-19 pandemic supported a diverse range of models, from device-enabled remote monitoring for COPD, diabetes and heart conditions, to low-tech call-centre models providing daily patient check-ins.
Evaluations have shown mixed results. Some studies have highlighted reductions in readmissions and improved patient satisfaction; others questioned the cost-effectiveness and workforce sustainability of running parallel digital and physical pathways.
The new national approach appears designed to rationalise this variation — focusing investment on scalable, interoperable models tied directly to national data infrastructure. But how this will land in local systems and how national virtually delivered services will integrate with local physical and virtual services will be key questions.
Market Implications: Towards a National Procurement Wave
For digital health suppliers focused on virtual care, the transition from many small local procurements to a centrally specified national model has far-reaching implications.
- Consolidation of Suppliers — Local models tend to rely on a mix of SMEs and niche vendors. A national NHS Online platform is likely to favour larger system integrators able to demonstrate interoperability and scale.
- Convergence with the NHS App and SPR and FDP — Integration with the NHS App and the Single Patient record will become essential.
- Demand for Workflow Tools — Potential growth opportunities for MDT coordination and triage technologies.
- Managed Service Models — The scale of NHS Online suggests an opening for ‘virtual care as a service’ propositions.
Potential Beneficiaries of NHS Online Procurement
- Palantir – through FDP infrastructure and potential data integration contracts.
- Accenture, Deloitte and KPMG – strong contenders for system integration and delivery support roles, they have consistently won large NHS SI contracts
- EMIS, Orion Health, and Graphnet (and subsidiary Docobo)– positioned around shared care records and integration of patient monitoring.
- Microsoft, Google Cloud, AWS – expected to underpin infrastructure and cloud data hosting.
- Telstra Health and VitalHub – international virtual hospital vendors with relevant experience and UK market presence.
- Doccla, current market leader and likely to feature in any consortium and known to be lobbying hard.
Risks and Unknowns
Despite the ambition, key uncertainties remain. These include governance, budget, and incentives and tariffs for local providers. Early phases will focus on outpatient follow-ups, but expanding into chronic care will demand major redesigns in workforce and reimbursement structures. Unless incentives are aligned, there is a risk of adding new complexity rather than reducing fragmentation.
Ironically, the examples given for virtual hospitals proving successful and are local NHS trusts – Southampton and Moorfields – who have successfully integrated virtual services alongside the delivery of in-person services, delivering the two together.
Delivering virtual care and virtual hospitals at true scale is likely to require that it is existing NHS providers rather than a dedicated new NHS Online virtual hospital who do the heavy lifting, and this will require significant changes to tariffs to incentivise ‘digital first’.
The other wider risk is that virtual care forms just one part of a very ambitious set of digital objectives and plans in the 10YP, sitting alongside the Single Patient record, and a massively expanded NHS App and FDP. There must be a question of how much change the system can deliver simultaneously.
What This Means for Suppliers
Suppliers should:
- Position for interoperability and data exchange with the NHS App and FDP.
- Monitor early procurement frameworks due 2026–27.
- Develop partnership models combining tech, service delivery, and analytics.
- Track outcome-based evaluation metrics to demonstrate value.
Outlook: From Digital Fragmentation to System-Level Virtual Care
The announcement of the creation of NHS Online marks a new phase in virtual healthcare — consolidating years of experimentation into a single system-wide initiative.
For suppliers, the next 18 months will be pivotal: a window to shape procurement frameworks, demonstrate interoperability, and form alliances capable of delivering virtual care at national scale. Whether it succeeds or stumbles will determine the shape of the UK’s virtual-care market for a decade to come.
There is, however, an immediate risk that the new policy direction on virtual care will initially result in a hiatus as the NHS system digests the implications of the policy, and this could result in some existing virtualware projects stalling. It will be important for NHSE and DHSC to provide early direction to prevent this from happening.