Dasos Kirtsides, Head of Healthcare at Shawbrook, shares insights into the shifting challenges and opportunities regularly discussed with medical professionals and care providers, both at industry gatherings and in day-to-day meetings.
Reflecting on recent conversations with medical professionals and care specialists, I firmly believe the UK healthcare sector stands at a crucial juncture. With mounting pressures from all directions, those within the industry are facing a landscape filled with challenges but also opportunities for transformation. Since joining Shawbrook as Head of Healthcare in 2018, I’ve seen first-hand how these complexities have deepened, demanding fresh approaches and robust collaboration throughout the sector. At the same time, I have observed medical organisations adapt rapidly and effectively to support both patients and residents — and nowhere is this turning point more critical than within the care industry. This raises crucial questions: Where are the key challenges, and what practical steps can we take to alleviate them?
Staffing remains the cornerstone of quality care, but it is now under unprecedented strain. Attracting and keeping talented people has become increasingly difficult, pushing providers to increase pay and boost benefits to stay competitive. For an industry already feeling the squeeze, this quickly becomes unsustainable — especially given additional burdens such as rising National Insurance costs, changing immigration rules, ongoing inflation, and the impact of rising interest rates on borrowing costs. All these factors combine to make effective care delivery more challenging than ever, particularly within a regulatory environment that is constantly evolving.
One of the most interesting subjects raised with my team frequently is digital transformation and the value AI can bring to this hard-working industry. Think smarter rotas generated by AI that match staffing levels with resident needs, without relying on costly agency staff. Think virtual assistants handling basic patient queries so care teams can focus on care. Or predictive analytics flagging early warning signs of deteriorating health conditions, reducing emergency admissions and unplanned costs. Investing in technology isn’t about replacing people, but empowering them to deliver better outcomes. For lenders like ourselves, supporting digital transformation is crucial; funding tools like Electronic Health Records and automated billing can deliver tangible benefits, improving both service delivery and staff morale.
Whether discussing staffing or technology, certain themes consistently emerge — building resilience, finding creative and flexible solutions, and forming partnerships based on in-depth sector knowledge. At Shawbrook, we recognise that effective healthcare solutions aren’t about ticking boxes or offering off-the-shelf packages. True partnership means understanding the realities operators face and offering finance that actively meets their long-term ambitions. This might involve helping providers manage cash flow disruptions due to delayed local authority payments, funding modernisation projects, or supporting strategic growth through mergers and acquisitions. The key is flexibility and a deep understanding of sector nuances. Care providers are not standing still; they’re seeking to improve efficiency, sustainability, and quality, and they require funding partners who can keep pace and adapt as situations change.
What resonates most when talking with medical experts and care home owners is the need for confidence in the sector — not blind optimism, but the ability to plan and adapt with purpose. Operators need assurance that they can endure short-term challenges while still investing in their future. They need to work with lenders who are looking at the long-term picture and can offer tailored and flexible support for everything from new builds and acquisitions to facility and regulatory-based upgrades. They need funders who truly care about the sector’s longevity and can be innovative in their approach, recognising the potential in sometimes more unique opportunities, such as employee ownerships, mergers and buy-outs.
Despite ongoing challenges, the collective determination among providers and partners is unmistakable. Care is not just another industry — it’s a societal essential that merits intelligent funding, effective tools, and robust partnerships. By backing our providers with meaningful support, we can help foster a brighter, more innovative, and compassionate future for UK healthcare. In this journey, lenders have a vital role: not only funding the future, but helping shape it for the better.
Image depicts Dasos Kirtsides, Head of Healthcare at Shawbrook.