The Integrated care system (ICS) refers to the statutory partnerships established across England under the Health and Care Act 2022 to coordinate the planning, funding, and delivery of health and social care services for defined populations typically ranging from 1 to 3 million people, encompassing 42 such systems that cover the entire country and integrate NHS providers, local government, voluntary organizations, and other stakeholders to address fragmented care delivery.[1][2][3]Evolving from earlier voluntary Sustainability and Transformation Partnerships introduced in 2016, ICSs formalized a shift toward population-based commissioning via accountable Integrated Care Boards (ICBs), which hold statutory duties for resource allocation and service oversight, alongside broader Integrated Care Partnerships focused on strategic collaboration.[2][4] Their core objectives emphasize preventive care, reduced hospital reliance, tackling health disparities driven by socioeconomic factors, and boosting system productivity amid rising demand.[5][6]While ICSs have enabled localized initiatives, such as enhanced autism service pathways through multi-agency efforts, empirical assessments indicate limited transformative impact to date, with persistent barriers including acute workforce shortages, funding shortfalls exceeding £10 billion annually in some estimates, and structural tensions between national directives and local priorities.[7][8] Controversies center on diminished democratic oversight, as ICBs operate with executive powers previously held by elected councils, alongside evidence of intensified treatmentrationing protocols in response to resource constraints, potentially exacerbating wait times that reached record highs post-implementation.[9][10][11] Systematic reviews of analogous integrated models predate full ICS rollout but reveal inconsistent gains in cost savings or patient outcomes, underscoring causal challenges in achieving seamless integration without addressing underlying fiscal and capacity deficits.[12]
Definition and Objectives
Core Concept and Rationale
The integrated care system (ICS) in England represents a statutory framework for collaborative partnerships across geographic areas, encompassing NHS trusts, primary care networks, local authorities, and third-sector providers to jointly plan, commission, and deliver health and social care services. Established under the Health and Care Act 2022, these 42 systems cover the entire population of England and emphasize population health management over fragmented, provider-centric models. The core concept shifts from competition-driven commissioning—prevalent since the 2012 Health and Social Care Act—to cooperative accountability, where partners share risks and resources to address complex needs like chronic conditions and social determinants of health.[13][2]The rationale for ICSs stems from empirical evidence of inefficiencies in siloed services, including duplicated efforts, delayed discharges, and suboptimal preventive care, which contributed to rising NHS costs and health disparities documented in prior audits. Proponents argue that integration fosters causal links between upstream interventions—such as tackling obesity or housing instability—and downstream outcomes like reduced hospital admissions, drawing from evaluations of earlier Sustainability and Transformation Partnerships (STPs) that showed modest gains in coordinated care pathways. Official objectives include improving population health outcomes, reducing inequalities in access and experience, enhancing productivity through value-based commissioning, and aligning health services with local economic priorities, as outlined in the 2019 NHS Long Term Plan.[14][15][6]This model posits that localized decision-making, supported by shared data and budgets, enables evidence-based prioritization over national mandates, with early indicators from 2022 statutory establishment suggesting potential for 5-10% efficiency savings in select areas through reduced avoidable admissions. However, the underlying assumption of partnership efficacy relies on robust governance to mitigate risks like uneven partner buy-in, as highlighted in National Audit Office assessments of pre-ICS pilots.[1][14]
Stated Goals and Theoretical Foundations
The stated goals of Integrated Care Systems (ICSs) in England, as articulated by NHS England, center on four principal aims: improving outcomes in population health and healthcare; tackling inequalities in outcomes, experience, and access; enhancing productivity and value for money; and supporting the NHS in contributing to broader social and economic development.[16][17] These objectives were formalized in the Health and Care Act 2022, which established ICSs as statutory bodies to foster collaborative planning and delivery of services across local health and care economies.[13] The emphasis on population health outcomes prioritizes prevention and early intervention to reduce hospital admissions and manage chronic conditions more effectively, while the productivity goal targets elimination of service silos to optimize resource allocation amid fiscal constraints.[16]Theoretically, ICSs build on established models of integrated care that advocate for coordinated service delivery to address fragmentation in healthcare systems, drawing from frameworks such as person-focused and population-based care integration.[18] This foundation posits that siloed organizations lead to inefficiencies, duplicated efforts, and suboptimal patient experiences, necessitating partnerships that align clinical, social, and community resources under place-based leadership.[19] NHS England's rationale emphasizes causal links between local collaboration and improved equity, positing that devolved decision-making enables tailored responses to demographic pressures like aging populations and rising multimorbidity, rather than top-down mandates.[20] Empirical underpinnings include prior experiments in accountable care, which demonstrated potential reductions in emergency admissions through proactive care coordination, though scalability remains debated due to variable local implementation.[6]
Historical Development
Precursors and Early Experiments (Pre-2017)
Efforts to integrate care within the UK's National Health Service (NHS) predated the formal establishment of integrated care systems, tracing back to policy reviews and pilot programs aimed at bridging silos between primary, secondary, acute, and social care services. The 2008 NHS Next Stage Review, led by Lord Darzi and published on June 30, emphasized personalized, high-quality care through greater coordination across providers, highlighting fragmentation as a barrier to efficiency and patient outcomes.[21] This review influenced subsequent initiatives by advocating for localized strategies to integrate services, though implementation relied on voluntary collaboration amid varying local capacities.[22]Building on these recommendations, early experiments included the selection of 16 pilot sites in 2009 under programs designed to test care integration models, focusing on coordinating services for complex patients and reducing hospital admissions through multidisciplinary teams.[23] These pilots, launched following the Darzi framework, explored mechanisms like shared budgets and joint assessments but faced challenges in scaling due to organizational resistance and inconsistent funding. By 2013, the Integrated Care and Support Pioneers programme advanced this approach, designating 14 localities in November to innovate in coordinating health and social care around individual needs, such as through risk stratification and personalized care plans.[24] Evaluations after one year indicated progress in multi-agency working but limited evidence of cost savings or widespread outcome improvements, underscoring the experimental nature amid resource constraints.[25]The 2015 New Care Models programme marked a significant escalation, with NHS England selecting 50 vanguard sites in waves to prototype five integration archetypes, including Multispecialty Community Providers (MCPs), Primary and Acute Care Systems (PACS), and Enhanced Health in Care Homes (ECH).[26] Financed with approximately £389 million through 2018, these experiments tested population-based commissioning and delegated budgets to shift care from hospitals to community settings, involving partnerships between clinical commissioning groups (CCGs), trusts, and local authorities.[27] Initial findings from vanguards showed modest reductions in emergency admissions in some models, such as ECH, but overall impacts on utilization were small, with implementation hurdles including data-sharing barriers and workforce silos.[27]Preceding the 2017 designation of initial integrated care systems, Sustainability and Transformation Plans (STPs) emerged in 2016 as a broader precursor, requiring 44 geographic footprints—covering England's entire population—to develop five-year strategies for sustainable, integrated services addressing £22 billion in efficiency gaps.[28] STPs encouraged system-wide planning across NHS providers, CCGs, and local government, incorporating elements from vanguards like accountable care approaches, though they remained non-statutory and faced criticism for top-down imposition without sufficient stakeholder buy-in.[29] These plans laid groundwork for later statutory frameworks by fostering collaborative footprints that evolved into integrated care systems, despite uneven progress in integration due to financial pressures and governance ambiguities.[30]
Accountable Care Systems (2017–2018)
Accountable Care Systems (ACS) were introduced in 2017 by NHS England as a non-statutory model to foster collaboration among local commissioners, providers, and partners in managing population health and care budgets. Building on the 44 Sustainability and Transformation Partnerships (STPs) established earlier, ACS emphasized joint accountability for quality, activity levels, and financial sustainability across health and social care services.[31] The framework sought to shift from siloed operations to integrated, place-based planning, with participating entities agreeing to shared governance structures and performance metrics.[32]Key guidance appeared in NHS England's "Next Steps on the NHS Five Year Forward View," published on 21 March 2017, which positioned ACS as an evolution of STPs to enable commissioners—primarily clinical commissioning groups (CCGs)—to delegate responsibilities to provider-led partnerships.[31] These systems incorporated risk- and reward-sharing arrangements, such as gain-share mechanisms for efficiencies and potential penalties for deficits, to incentivize preventive care and reduced hospital admissions.[32] Initial focus areas included aligning primary care, acute services, mental health, and community provision, with an emphasis on data-driven population health strategies.[33]In August 2017, NHS England issued a draft NHS Standard Contract for Accountable Care Models, outlining pathways for ACS to mature into Accountable Care Organisations (ACOs) with formal contracts for delegated commissioning and capitated budgets covering entire populations.[34] Examples of early ACS development included the South Yorkshire and Bassetlaw partnership, formalized in June 2017, which established memoranda of understanding for collective oversight of £1.8 billion in annual spending.[35] By 2018, multiple STP areas had advanced towards ACS designation, though progress varied due to governance complexities and the need for regulatory amendments under the National Health Service Act 2006.[36]Implementation during 2017–2018 highlighted ACS as a transitional step toward broader system-wide integration, with NHS England supporting local plans through accelerated funding and technical assistance.[37] However, the absence of statutory powers limited downside risk transfer initially, confining arrangements to voluntary agreements and prompting delays in ACO contract approvals until after February 2018.[36] Evaluations noted early successes in joint strategic planning but underscored ongoing barriers, including workforce silos and datainteroperability issues.[32]
Statutory Formalization (2019–2022)
The NHS Long Term Plan, published on 7 January 2019, outlined the transition of all existing Sustainability and Transformation Partnership (STP) areas to integrated care systems (ICSs) by April 2021, emphasizing collaborative planning across health and care providers without initial statutory backing.[38] This built on voluntary arrangements, with ICSs operating as non-statutory partnerships to integrate commissioning, provision, and population health management.[2]In 2020, amid the COVID-19 pandemic, NHS England accelerated ICS development by designating 50 ICS geographies—later rationalized to 42—and granting delegated authority to select ICSs for managing portions of NHS budgets, including primary care commissioning and some specialized services previously held by clinical commissioning groups (CCGs).[39][40] These delegations, outlined in NHS England's June 2021 design framework, enabled shadow ICSs to assume operational responsibilities for resource allocation and service coordination, though lacking legal permanence and subject to revocation.[16]The push for statutory formalization intensified with the government's white paper Integration and Innovation: working together to support patients in February 2021, which proposed legislation to embed ICSs as legal entities. On 6 July 2021, the Health and Care Bill was introduced to Parliament, aiming to abolish CCGs, establish 42 integrated care boards (ICBs) as statutory NHS commissioners, and mandate integrated care partnerships (ICPs) for broader collaboration with local authorities.[41][42]The Bill progressed through scrutiny, receiving amendments on governance, financial accountability, and reduced emphasis on competition, before gaining Royal Assent as the Health and Care Act 2022 on 28 April 2022.[42] Effective 1 July 2022, the Act dissolved all CCGs, vesting their functions in ICBs and formalizing ICSs as accountable for planning and funding services across populations of 500,000 to 3 million, with duties to address inequalities and promote joint working under sections 19-35.[43][44] This statutory shift marked the culmination of preparations, enabling ICSs to exercise powers like direct provider contracting and capital investment, previously constrained by non-statutory status.[2]
Expansion and Maturation (2023–Present)
In the financial year 2023/24, marking the first full year of statutory operation for Integrated Care Boards (ICBs), England's 42 ICSs demonstrated progress in collaborative service delivery, with many achieving improvements in key performance indicators such as cancer 62-day waits and mental health access standards, though outcomes varied by region.[45] NHS England's annual assessment highlighted that while some ICBs advanced in population health management and prevention strategies, persistent challenges included financial deficits and workforce shortages, with ICS leaders reporting strained resources amid rising demand.[8] Independent analyses, such as those from the NHS Confederation, noted successes in shifting care to community settings and embedding preventive models, but emphasized barriers like fragmented data systems and uneven partnership engagement with local authorities.[46]Financial maturation brought mixed results, as the combined 2024/25 budget for ICBs reached £6.2 billion, yet 18 of 31 analyzed boards faced cuts while 13 saw increases, reflecting tighter national fiscal controls and efforts to address inherited deficits totaling over £1 billion from prior clinical commissioning groups.[47]Operational planning guidance for 2024/25 prioritized enhanced data flows, capacity building in primary and community care, and integration of social determinants of health, with ICSs tasked to align strategies for sustainable economic growth and reduced hospital reliance.[48] Reports from bodies like The King's Fund underscored advancements in workforce collaboration across ICS partners, including joint planning for recruitment and retention, though risks of centralization and insufficient devolution persisted, potentially undermining local innovation.[49][50]By mid-2025, the July announcement of the government's 10-Year Health Plan signaled further maturation, directing ICSs toward a reformed model emphasizing primary and community care expansion, digital interoperability, and accountability for outcomes rather than activity volumes, without altering core structures but building on existing frameworks.[51] Early implementation focused on aligning ICS strategies with national missions, such as tackling health inequalities through targeted interventions, though critiques from professional bodies like the BMA highlighted risks to ICB autonomy under heightened oversight.[52] Overall, NHS England's 2023/24 accounts reported a 7% rise in appointments to 371 million, attributing gains partly to ICS-driven efficiencies, yet systemic pressures like post-pandemic backlogs continued to test maturation efforts.[53]
Organizational Framework
Integrated Care Boards
Integrated Care Boards (ICBs) are statutory bodies within the National Health Service (NHS) in England, established on 1 July 2022 under the Health and Care Act 2022 to replace the 191 clinical commissioning groups (CCGs).[54] There are 42 ICBs, each aligned with one integrated care system (ICS) and covering the entire population of England, with collective annual resources exceeding £100 billion for health and care services.[13][55]ICBs hold primary responsibility for commissioning the majority of NHS-funded services, including primary medical services, hospital care, mental health, community health, and most elective and urgent care, while also managing workforce planning and population health strategies within their areas.[2] They receive direct allocations from NHS England, totaling £129.8 billion for core and primary medical services in the 2025/26 fiscal year, and are required to collaborate with integrated care partnerships (ICPs), local authorities, and providers to align commissioning with broader social care and public health needs.[56] Unlike CCGs, which operated on a more fragmented, GP-led basis, ICBs integrate commissioning with system-level planning to reduce silos, assuming some direct commissioning functions previously held by NHS England, such as specialized services.[57]Each ICB operates under a unitary board structure, comprising executive members (including a chair, chief executive, and finance lead), non-executive directors, and partner representatives from providers and local government, with all members jointly accountable for organizational performance and statutory duties like reducing inequalities.[58] Constitutions, approved by NHS England, mandate statutory clinical commissioning committees to ensure clinical input in decisions, alongside requirements for transparency in procurement and financial management.[58] ICBs must publish annual plans detailing service improvements, budget use, and progress against national targets, subject to oversight by NHS England on financial sustainability and quality metrics.[59]As of October 2025, the 42 ICBs continue to face operational challenges, including staff redundancies—up to 12,500 positions targeted by year-end amid efficiency drives—and proposals for clustering or mergers to streamline leadership, such as reducing to 28 entities by April 2026, though no statutory changes have been enacted.[60][61] This evolution reflects ongoing efforts to balance local autonomy with national accountability, building on the Act's intent for place-based integration over the CCG model's narrower focus.[62]
Integrated Care Partnerships
Integrated Care Partnerships (ICPs) form the collaborative arm of Integrated Care Systems (ICSs) in England, serving as statutory committees that unite the Integrated Care Board (ICB), local authorities, healthcare providers, and wider stakeholders to address population health needs beyond clinical commissioning.[63][64] Established under the Health and Care Act 2022, ICPs were required to be operational by July 1, 2022, across all 42 ICSs, with statutory membership limited to the ICB and upper-tier local authorities, while inviting broader participation from voluntary organizations, trade unions, and community representatives.[63][43]Unlike ICBs, which hold legal responsibility for NHS budgeting, service commissioning, and performance accountability as independent statutory bodies, ICPs lack separate legal entity status and instead emphasize joint strategy development without direct financial or operational control.[64][2] Their primary statutory duty involves producing an integrated care strategy every five years—or sooner if significant changes occur—outlining shared priorities for health improvement, prevention, and tackling social determinants such as housing and employment, which interim strategies addressed by December 2022 and full versions by June 2023.[65][43]ICPs facilitate system-wide alignment by promoting widespread engagement, including with adult social care providers and unpaid carers, to ensure strategies reflect local needs and foster collaborative decision-making across sectors.[66][65] Guidance emphasizes their role in oversight and accountability, such as reviewing ICB performance against strategy objectives, though practical implementation varies due to differing local governance models and resource constraints.[67] Effective ICPs exhibit characteristics like strong leadership alliances, data-driven population health planning, and mechanisms for addressing inequalities, as evidenced in joint reports from local government and NHS bodies.[67]
Governance Mechanisms
Integrated Care Boards (ICBs), the statutory NHS bodies within each of England's 42 Integrated Care Systems (ICSs), are governed through constitutions that outline their structure, functions, and accountability arrangements, as mandated by the Health and Care Act 2022 and statutory guidance from NHS England.[58] These constitutions, which must be approved by NHS England, specify requirements for board composition, including a chair appointed by NHS England, a chief executive, executive directors responsible for key functions like finance and quality, non-executive directors comprising at least half the board to ensure independence, and partner members such as local authority representatives to facilitate joint working.[58] ICB boards operate under principles of collective responsibility, with delegated powers to committees for areas like audit, remuneration, and quality oversight, while managing conflicts of interest through standing orders and transparency protocols.[58]Decision-making mechanisms emphasize collaborative planning, requiring ICBs to develop five-year joint forward plans in partnership with Integrated Care Partnerships (ICPs), which integrate input from local authorities, providers, and the voluntary sector on population health needs.[2] ICPs, as non-statutory entities, rely on partnership forums and agreements to support system-wide strategy without formal commissioning powers, fostering shared accountability through memoranda of understanding rather than hierarchical control.[16] ICBs exercise statutory commissioning authority for most NHS services, subject to national standards, with mechanisms like place-based boards at sub-ICS levels allowing localized decision-making on resource allocation while aligning to system priorities.[2]Accountability flows upward from ICBs to NHS England, which applies the annual NHS Oversight Framework to evaluate performance across segments including quality of care, financial sustainability, operational delivery, and strategic change, using metrics such as elective recovery trajectories, patient safety indicators, and integrated care expenditure.[68] Oversight categorizes ICBs into levels—such as targeted support for standard performance or mandated interventions for those in special measures—based on data-driven assessments, with escalation to the Secretary of State for Health and Social Care where national interests are at risk.[69] Local democratic accountability is embedded via ICP involvement of elected councillors and public consultation on plans, complemented by mandatory reporting on inequalities reduction and financial probity, though critics note potential tensions between system-level autonomy and granular oversight.[9]
Roles of Providers and Pharmacy Integration
In Integrated Care Systems (ICSs), healthcare providers encompass a range of NHS organizations, including acute hospital trusts, mental health trusts, ambulance services, community providers, and primary care networks (PCNs) comprising general practitioners (GPs). These providers are responsible for the direct delivery of clinical services, operational management of quality, and participation in system-wide planning to achieve integrated care pathways that address population health needs.[13][70] For instance, acute and community providers collaborate within provider collaboratives—formal groupings of NHS trusts and foundation trusts—to specialize in elective care, manage waiting lists, and optimize resource allocation across the ICS, as established under the Health and Care Act 2022.[71]Primary care providers, such as PCNs, focus on proactive care coordination, managing long-term conditions, and referring patients to appropriate secondary services to reduce hospital admissions, with roles expanded to include initial triage for minor illnesses.[72][2]Provider responsibilities extend to contributing evidence-based input on service commissioning through Integrated Care Partnerships (ICPs), where they align with local authorities and third-sector organizations to develop joint forward plans covering prevention, acute care, and social services integration.[4] Medical and clinical leaders among providers facilitate this by promoting dialogue, trust-building, and shared accountability for outcomes like reduced inequalities and improved care efficiency, as ICSs were statutorily mandated in July 2022 to coordinate such efforts.[73][70] Providers also bear duties in quality assurance, including operational oversight of safety, effectiveness, and patient experience, often through place-based partnerships that devolve decision-making to local levels within the ICS footprint.[74]Pharmacy integration within ICSs emphasizes medicines optimisation and expanded clinical roles for pharmacists to support seamless care across sectors. Community pharmacies, numbering over 11,000 in England, are commissioned directly by Integrated Care Boards (ICBs) since April 1, 2023, enabling pathway-wide services such as minor ailment management, long-term condition support, and vaccination delivery, which integrate with GP and hospital workflows to reduce fragmentation.[75][76] The NHS England's Pharmacy Integration Programme, building on earlier Sustainability and Transformation Partnership (STP) frameworks from 2018, funds workforce development, advanced clinical training, and independent prescribing capabilities for pharmacists, aiming to embed them in multidisciplinary teams for proactive medicines management and deprescribing to mitigate risks like polypharmacy.[77][78][79]This integration addresses pharmacy sector challenges, including workforce shortages, by leveraging ICS structures for recruitment, retention, and cross-sector deployment, as highlighted in a 2023 review noting opportunities for regional coordination.[80] Pharmacists contribute to population health strategies by optimizing prescribing data and supporting digital tools for shared records, with Royal Pharmaceutical Society recommendations urging ICSs to prioritize pharmacy in leadership roles and funding allocations for enhanced networking and clinical impact.[81] Overall, pharmacy roles evolve from dispensing-focused to consultative, aligning with ICS goals of cost-effective, patient-centered care, though implementation varies by local ICB priorities.[82]
Operational Functions
Service Planning and Commissioning
Integrated Care Boards (ICBs), established under the Health and Care Act 2022, hold primary responsibility for service planning and commissioning within each of England's 42 integrated care systems (ICSs), effective from 1 July 2022.[13][44] ICBs succeeded clinical commissioning groups (CCGs), absorbing their functions to centralize NHS planning at the ICS level while emphasizing population-based needs assessment and resource allocation.[2][4] This shift aims to align commissioning with broader ICS goals of integrating health and social care, though ICBs retain statutory duties focused on NHS-funded services.[83]The commissioning process involves assessing local health needs, prioritizing services, procuring contracts with providers, and monitoring performance to achieve optimal outcomes.[84] ICBs commission the majority of NHS services, including secondary care, mental health, ambulance services, most primary care, and community health provision, controlling budgets equivalent to approximately 85-90% of local NHS expenditure.[2][6] Some specialized commissioning functions, previously managed nationally by NHS England, have been delegated to ICBs, such as certain elective and cancer services, enabling more tailored local planning.[85] ICBs must publish annual forward plans detailing service strategies, performance targets, and financial projections, developed in collaboration with Integrated Care Partnerships (ICPs) to incorporate wider determinants of health like social care and public health.[54]ICBs exercise flexibility in delivery models, opting for contracts with providers or delegating budgets to Integrated Care Providers (ICPs) for place-based management, particularly in primary and community care.[62] This delegation supports integrated pathways but requires safeguards against underperformance, with ICBs retaining oversight and accountability for statutory functions.[83] As of 1 April 2025, ICBs assumed commissioning for all vaccination services and most screening programs, previously handled by NHS England, to enhance local responsiveness amid rising demand.[86] Commissioning decisions prioritize evidence-based needs, with ICBs required to reduce health inequalities and promote prevention, though implementation varies by ICS due to differing local demographics and provider capacities.[87][88]
Population Health and Prevention Strategies
Integrated care systems (ICSs) in England emphasize population health management (PHM) as a foundational approach to enhance overall health outcomes through data-driven, proactive interventions rather than reactive treatment. PHM involves segmenting populations by risk levels, using analytics to identify individuals most vulnerable to poor health, and coordinating services across providers to address needs early. This strategy aligns with the statutory duties of integrated care boards (ICBs) under the Health and Care Act 2022, which require them to commission services that improve population health and reduce inequalities.[89][90]Prevention strategies within ICSs prioritize upstream actions targeting social determinants of health, such as housing instability, employment barriers, and lifestyle factors, often through collaborations with local authorities and voluntary sectors via integrated care partnerships (ICPs). For instance, ICPs develop five-year joint forward plans that embed prevention, including initiatives like enhanced primary care networks (PCNs) for targeted screenings and community-based programs to mitigate chronic disease progression. Data platforms enable predictive modeling; one reported application reduced hospital admissions by improving coordination between mental health and housing services, demonstrating causal links between integrated prevention and lower acute care utilization.[65][91][92]Empirical implementation varies across the 42 ICSs, with national guidance from NHS England promoting standardized PHM tools, such as the Population Health Management Academy, to build system-wide capacity. In 2023/24 assessments, several ICBs reported progress in prevention boards overseeing health inequalities, though challenges persist in data interoperability and resource allocation for non-clinical interventions. Secondary prevention efforts, focusing on post-event riskreduction like cardiovascular management, have shown promise in pilot areas, with data analytics informing targeted outreach that lowered readmission rates by up to 15% in select systems. Overall, these strategies aim to shift expenditure from hospitals to community prevention, supported by efficiency targets exceeding £7 billion in 2023/24 through reform.[45][93][94]
Resource Allocation and Financial Management
NHS England allocates financial resources to the 42 Integrated Care Boards (ICBs) using a needs-based statistical formula that accounts for population size, demographics, morbidity, and geographic factors to ensure equitable distribution across England.[95] These allocations, which constitute the majority of NHS spending, cover core services, primary care medical services, and running costs, with detailed figures for 2025/26 published on January 30, 2025.[96] For the 2024/25 financial year, NHS England distributed over £120 billion in public funding to ICBs, emphasizing accountability in local spending to align with national priorities.[97]Within each Integrated Care System (ICS), ICBs hold statutory responsibility for budgeting, commissioning, and distributing resources to providers, including hospitals, general practices, and community services, replacing the prior functions of clinical commissioning groups.[2] ICBs collaborate with ICS partners—such as local authorities and providers—on system-wide financial planning, which integrates activity forecasts, workforce needs, and expenditure to support joint decisions on resource flows.[98] To enable localized control, ICBs may delegate portions of their NHS allocation to place-based partnerships, allowing sub-system entities to make spending decisions tailored to specific geographic or population needs while maintaining overall system accountability.[16]Financial management in ICSs emphasizes pooled resources and outcome-linked allocation to promote preventive care and efficiency, though mechanisms like the Better Care Fund facilitate integration by blending NHS and local authority budgets for 2023–2025.[99] ICBs must adhere to NHS financial frameworks, including business rules for apportioning costs and managing deficits, with oversight from NHS England to enforce sustainability plans.[100]Despite these structures, resource allocation faces significant challenges, with ICSs collectively overspending by £1.4 billion in 2023/24—more than double the prior year's deficit—driven by rising demand, inflation, and deferred investments.[101] Many ICBs report ongoing deficits and reliance on non-recurrent funding, undermining long-term sustainability, as highlighted in NHS England's 2023/24 assessments of individual boards.[45] The National Audit Office has critiqued systemic issues, including short-term fixes that exacerbate volatility and fail to address underlying pressures like workforce shortages and backlogs, recommending a shift toward comprehensive financial restructuring over ad-hoc support.[102]
Implementation Across England
Establishment of the 42 Systems
The establishment of the 42 Integrated Care Systems (ICSs) in England marked the culmination of a multi-year evolution from non-statutory partnerships to statutory entities under the National Health Service (NHS). Initially developed as Sustainability and Transformation Partnerships (STPs) in 2016 and rebranded as ICSs in the NHS Long Term Plan of 2019, these systems aimed to integrate health and care services across local geographies. By March 2021, the NHS had designated all areas of England as ICSs, covering the entire population through 29 mature systems and 13 emerging ones, fulfilling a key commitment to nationwide rollout.[103]The Health and Care Act 2022 provided the legislative framework for statutory status, abolishing the 191 Clinical Commissioning Groups (CCGs) and empowering NHS England to create Integrated Care Boards (ICBs) as the core commissioning bodies within each ICS. The Act, which received Royal Assent on 28 April 2022, amended the National Health Service Act 2006 to define ICSs as partnerships comprising an ICB and an Integrated Care Partnership (ICP), with responsibilities for planning, commissioning, and delivering joined-up services.[15]On 1 July 2022, the Integrated Care Boards (Establishment) Order 2022 legally established the 42 ICBs, operationalizing the ICSs as statutory bodies across England and assuming CCG functions such as budgeting and service commissioning.[104][43] This transition aligned ICS boundaries with local authority areas, serving populations ranging from approximately 500,000 to 3 million people per system, to facilitate place-based planning and resource allocation.[6] Each ICB was required to collaborate with local authorities, providers, and voluntary sectors through ICPs to address population health needs, though implementation varied due to pre-existing regional differences in maturity.[4]
Integrated Care Providers and Partnerships
Integrated Care Providers in England's 42 Integrated Care Systems (ICSs) encompass NHS foundation trusts, NHS trusts (including acute, mental health, ambulance, and community services), primary care networks, and contracted independent sector organizations responsible for direct service delivery. These providers operate under the oversight of Integrated Care Boards (ICBs) while contributing to system-wide planning through collaborative arrangements.[13][2]Provider collaboratives form a key partnership mechanism, uniting at least two NHS trusts to coordinate planning, resource sharing, and service transformation across ICS boundaries or within them. Established as mandatory for acute and mental health trusts from July 2022, these collaboratives focus on achieving economies of scale in areas such as procurement, workforce management, digital infrastructure, and specialized care pathways, thereby addressing service fragmentation and enhancing sustainability. For instance, collaboratives enable joint delivery of elective surgery or mental health crisis response, with governance determined locally in consultation with ICS leaders and NHS England regions.[105][71][106]Primary care provider collaboratives, emerging since 2023, further integrate general practices and federations into ICS decision-making, amplifying their voice in strategic objectives like preventive care and demand management. Broader partnerships involve providers aligning with local authorities and voluntary sector entities via Integrated Care Partnerships (ICPs), which develop non-statutory integrated care strategies emphasizing population health and joint commissioning. This includes formal engagement protocols for adult social care providers to ensure seamless transitions between health and social services.[107][67][108]In select ICSs, Integrated Care Provider (ICP) contracts devolve comprehensive responsibility for primary, secondary, community, and social care to a single accountable entity or collaborative, often under 10- to 15-year agreements valued in billions of pounds, to incentivize long-term integration over siloed commissioning. Such models, piloted pre-2022, prioritize outcome-based payments but require robust risk-sharing and performance metrics to mitigate financial exposures for providers.[109][110]These arrangements shift from competitive tendering toward collaborative governance, with providers influencing ICB budgets—allocated at £3.2 billion per ICS on average in 2023/24—through delegated authorities for elective recovery and urgent care. However, variability in collaborative maturity across ICSs, with some achieving integrated back-office functions while others face governance hurdles, underscores ongoing implementation challenges.[8][111]
Coverage and Population Scope
Integrated care systems (ICSs) encompass the entirety of England, divided into 42 distinct systems that collectively serve the nation's approximately 56.5 million residents as of mid-2023. Established statutorily on 1 July 2022 under the Health and Care Act 2022, these systems replaced earlier sustainability and transformation partnerships (STPs) and ensure comprehensive geographic coverage without overlaps or exclusions, aligning with NHS England's mandate for nationwide integration of health and care services.[13][2]Each ICS delineates a specific geographic footprint, typically corresponding to sub-regional clusters of local authorities, with boundaries designed to facilitate coordinated service delivery across primary care, hospitals, mental health providers, community services, and social care. Population sizes served by individual ICSs vary significantly, ranging from approximately 500,000 to 3.5 million people, reflecting differences in urban density and regional demographics; for instance, densely populated areas like Greater Manchester cover over 2.8 million, while rural systems such as those in Cornwall and the Isles of Scilly serve around 580,000. The average ICS population stands at about 1.46 million, enabling tailored planning that accounts for local health needs, deprivation levels, and inequalities.[14][112][113]The population scope of ICSs extends to all residents within their boundaries, encompassing not only NHS-funded healthcare but also integration with non-NHS elements such as public health, voluntary sectors, and local governmentsocial services, with a statutory duty to reduce health disparities and promote prevention across the full demographic spectrum. This includes targeted efforts for vulnerable subgroups—such as the elderly, those with chronic conditions, and underserved communities—but operates without explicit exclusions, prioritizing evidence-based resourcedistribution over selective enrollment. Boundary adjustments, such as those approved in 2021 to enhance alignment with upper-tier local authorities (achieving coterminosity in about 70% of cases), underscore ongoing refinements to optimize coverage efficacy amid evolving population dynamics like migration and aging.[114][2]
Empirical Evaluation
Measured Achievements and Outcomes
Integrated care systems (ICSs) in England, statutorily established in July 2022, have recorded initial progress in enhancing collaboration across health and social care providers. A 2024 King's Fund analysis found that ICSs facilitated more coordinated workforce strategies, with 80 percent of surveyed systems reporting advancements in joint recruitment and training initiatives, contributing to stabilized staffing in acute and community settings during periods of national shortages.[49] This collaborative approach has supported localized responses to labor demands, reducing reliance on agency staff in select ICSs by up to 10 percent in pilot programs.[49]Service integration efforts have yielded measurable gains in preventive and population health management. The NHS Confederation's 2023/24 survey of ICS leaders identified successful resource reallocation in multiple systems, such as one ICS achieving a 15 percent increase in community-based interventions, correlating with reduced hospital admissions for ambulatory care-sensitive conditions by 5-7 percent in targeted populations.[8] NHS England's 2023/24 annual assessment of integrated care boards (ICBs) documented improvements in joint commissioning, with 25 of 42 ICBs meeting or exceeding targets for integrated primary and secondary care pathways, leading to shorter average referral-to-treatment times in elective specialties by 2-4 weeks in high-performing areas.[45]Longer-term outcome data, though preliminary, aligns with prior UK evidence on integrated models. A 2018 systematic review of integrated care initiatives reported reductions in patient waiting times by 20-30 percent and outpatient appointments by 10-15 percent where coordination was prioritized, patterns echoed in early ICS evaluations for end-of-life care, where 70 percent of systems reported higher fulfillment of patient preferences through multidisciplinary teams.[12] These achievements, however, vary by ICS maturity and local implementation, with quantitative health gains most evident in systems emphasizing data-driven planning.[8]
Identified Shortcomings and Failures
Despite the objectives of enhancing efficiency and integration, Integrated Care Systems (ICSs) have encountered substantial financial shortfalls. In 2023-24, NHS systems, including ICSs, recorded an overspend of £1.4 billion, more than double the previous year's deficit, reflecting persistent budgetary pressures.[115] For 2024-25, nearly three-quarters of Integrated Care Boards (ICBs, the statutory bodies of ICSs) submitted deficit plans totaling £2.2 billion in projected overspend, indicating widespread failure to achieve balanced budgets amid rising costs and inadequate productivity gains.[8] By March 2025, the year-to-date system position showed a £62 million overspend, with nine ICSs accounting for 80% of the variance, prompting NHS England to withhold deficit support from five systems for failing to deliver required savings.[116][117] Draft financial plans for 2025-26 implied a £6.6 billion deficit across ICSs, underscoring systemic inefficiencies in resource management despite central mandates for financial recovery.[118]Empirical assessments reveal limited progress in core outcome metrics under ICS oversight. Precursor integration models, such as Sustainability and Transformation Partnerships, yielded only mixed results with minimal reductions in unplanned hospital admissions, a key target for ICSs.[119] Early ICS evaluations similarly show no compelling evidence of sustainable improvements in emergency admissions or overall care quality, as staffing shortages and funding constraints hinder preventive strategies.[120] NHS waiting lists, managed through ICS planning, reached record highs post-implementation and continued rising into 2025, with hospitals failing to treat patients at a rate sufficient to reduce backlogs, exacerbating access delays.[121] Productivity metrics, including activity levels per staff input, remain below pre-pandemic benchmarks despite workforce expansions, attributing stagnation to integration barriers rather than enhanced coordination.[122]Implementation challenges have compounded these issues, with nascent ICSs struggling to foster genuine collaboration amid extreme operational pressures. Staff reports indicate support for integration principles but highlight measurement gaps and cultural resistance, leading to risks of systems "going off track" under intense scrutiny and service demands.[49] Barriers such as fragmented data systems and regulatory hurdles persist, limiting empirical demonstration of integration benefits and contributing to uneven performance across the 42 systems established in July 2022.[123] These shortcomings reflect a disconnect between policy ambitions and on-ground realities, where causal factors like chronic underfunding and workforce gaps undermine purported efficiencies.[10]
Methodological Challenges in Assessment
Assessing the effectiveness of Integrated Care Systems (ICSs) in England faces significant methodological hurdles due to their systemic scale, complexity, and recent statutory implementation in July 2022. Evaluations often struggle with attribution, as outcomes are influenced by concurrent national policies, the COVID-19 pandemic, and local variations across the 42 ICSs, making it difficult to isolate ICS-specific impacts.[124][123] Additionally, the absence of non-ICS comparator areas—given full geographic coverage—precludes straightforward control groups, complicating quasi-experimental designs.[125]A primary challenge is the heterogeneity of interventions within and across ICSs, which encompass diverse partnerships, service redesigns, and population health strategies, rendering standardized outcome measurement elusive. Peer-reviewed analyses highlight a paucity of robust empirical studies, with many evaluations relying on descriptive or self-reported data rather than rigorous causal inference methods.[126] For instance, prospective quasi-experimental assessments of precursor programs like the Pioneer initiative encountered recruitment failures and delays in data linkage, as routine health datasets (e.g., Hospital Episode Statistics) were not readily accessible for matched comparisons.[125] This heterogeneity also undermines cost-effectiveness analyses, lacking agreed-upon methodologies to determine whether integration yields net savings or merely redistributes expenditures.[126]Data integration poses further barriers, as ICSs require linking disparate health, socialcare, and primary datasets, but silos persist due to governance restrictions and incomplete digitalinfrastructure. Ethical and regulatory processes exacerbate delays; approvals from bodies like the Health Research Authority can take over 20 months, hindering timely prospective evaluations.[125] Moreover, short observation windows limit detection of long-term effects, such as reduced hospital admissions or improved chronicdisease management, which may emerge years post-implementation amid confounding fiscal pressures and workforce shortages.[124][10]Finally, defining success metrics remains contentious, with tensions between process indicators (e.g., partnership formation) and hard outcomes (e.g., mortality rates or equity gains), often leading to overemphasis on quantifiable but proximal measures that fail to capture holistic integration benefits. Early ICS assessments, such as NHS England's 2023/24 reviews, acknowledge these limitations, noting reliance on interim performance data amid ongoing performance shortfalls in areas like urgent care.[45] Without addressing these issues—through better pre-implementation designs or advanced econometric techniques like synthetic controls—evaluations risk producing inconclusive or biased results, impeding evidence-based refinements.[124]
Controversies and Critiques
Bureaucratic Overreach and Centralization
The establishment of Integrated Care Systems (ICSs) through the Health and Care Act 2022 consolidated commissioning responsibilities from 191 local Clinical Commissioning Groups (CCGs) into 42 larger regional entities, a restructuring critics argue fosters centralization by concentrating decision-making authority in Integrated Care Boards (ICBs), which function as statutory NHS bodies primarily accountable to NHS England rather than local elected representatives.[9] This shift has been linked to reduced local autonomy, as ICBs must adhere to national performance mandates and operational directives from NHS England, potentially overriding place-based priorities in favor of standardized targets.[127] For instance, a 2023 parliamentary inquiry highlighted risks of ICSs becoming overly NHS-centric, sidelining social care partners and local government input in resource allocation.[128]Bureaucratic overreach manifests in heightened administrative burdens, including frequent data reporting and compliance demands from NHS England that divert resources from patient care. A 2023 NHS Confederation assessment noted persistent "last-minute requests for data and too much unnecessary bureaucracy," with ICS leaders reporting that such processes hinder collaborative working across systems.[129] Similarly, the 2024 Confederation survey found only 40 percent of ICS leaders viewing accountabilities between ICBs and NHS England's national team as clearly defined, underscoring tensions where central oversight is perceived as micromanaging local operations.[8] These issues echo broader critiques of the Act's implementation, where policy guidance is described as "overly bureaucratic, time-consuming, and out of touch" with frontline realities.[8]The Hewitt Review, an independent 2023 evaluation, acknowledged these dynamics by recommending enhanced ICS autonomy through devolved budgets and reduced central prescription, while emphasizing the need for robust national accountability to ensure financial probity and performance standards.[130] However, ongoing concerns persist regarding democratic deficits, as ICBs lack direct public elections and prioritize NHS England hierarchies, potentially enabling top-down interventions that limit clinician-led innovation and local responsiveness.[131] Empirical indicators include stalled progress on integration goals, with some ICSs reporting governance structures overwhelmed by compliance rather than service delivery, as evidenced in early post-2022 implementation analyses.[10]
Financial Pressures and Cost Inefficiencies
The aggregated deficit for NHS integrated care systems (ICSs) doubled from £517 million in 2022/23 to £1.4 billion in 2023/24, despite the government providing £4.5 billion in additional support to cover shortfalls.[115][132] In 2023/24, ICSs planned for a combined deficit of £720 million but exceeded this due to persistent overspending, with 14 ICSs forecasting an additional £650 million shortfall.[133][134] Projections indicate further deterioration, with a £6.6 billion deficit anticipated for ICSs and trusts in 2025/26, driven by staffing costs comprising 49% of budgets, inflation adding £1.4 billion in 2023/24, and reallocation of £900 million from capital to revenue spending.[132]These pressures have prompted measures such as 1% reductions in cost bases and targets for 4% productivity gains, alongside service rationalizations like consolidating community phlebotomy and delaying supplier payments to manage cash flow.[132] By April 2025, integrated care boards (ICBs)—the statutory bodies leading ICSs—faced mandates for 50% cuts to running and programme costs, affecting administrative functions and potentially exacerbating frontline strains.[135][136] Of 23 surveyed ICBs, 18 ended 2023/24 in deficit, with 10 projecting larger gaps for 2024/25, often attributed to unmet efficiency targets and reliance on agency staff.[137]Cost inefficiencies stem partly from expanded bureaucratic layers post-ICS establishment in 2022, including increased regulatory burdens reported by 72% of ICS leaders and "double-running" of parallel systems during transitions.[138][8] ICB running costs per full-time equivalent staff varied widely, with medians at £61,000 and per 1,000 population ranging from £8,320 to £32,000, reflecting uneven overhead absorption without commensurate integration savings.[139] Despite aims to deliver systemic efficiencies through partnership, many ICSs have failed to meet savings goals, as evidenced by persistent deficits and dependence on temporary funding mechanisms like elective recovery funds to offset shortfalls.[140][141] This has led to critiques that added management tiers have not yielded anticipated cost reductions, instead amplifying administrative demands amid workforce shortages.[8]
Ideological and Policy Debates
The establishment of Integrated Care Systems (ICSs) under the Health and Care Act 2022 has elicited policy debates regarding the tension between centralized national directives and decentralized local decision-making. Critics argue that persistent top-down control by NHS England limits ICS flexibility, with the 2023 Hewitt Review recommending a fundamental shift toward bottom-up accountability to better align services with regional demographics and needs, such as varying urban-rural healthcare demands.[130] This perspective highlights how statutory bodies, while intended to foster collaboration among NHS trusts, local authorities, and providers, often replicate prior bureaucratic structures, potentially exacerbating delays in service reconfiguration reported in early evaluations.[142]Ideologically, ICSs embody a collectivist framework prioritizing population-level planning over market-driven competition, yet this has drawn scrutiny for sidelining individual patient choice and efficiency incentives inherent in selective contracting. Policy analyses note that while ICSs aim to reduce health inequalities through cross-sector partnerships—targeting a 10-15% improvement in preventive care access by 2024—empirical shortfalls in social care integration risk entrenching an NHS-dominant model, neglecting broader determinants like housing and employment.[143] Opponents from efficiency-focused viewpoints contend this approach conflicts with evidence-based trade-offs, where equity mandates can inflate costs without proportional outcome gains, as seen in historical NHS reforms balancing universal access against resource allocation.[144]Further contention arises over accountability mechanisms, with parliamentary inquiries emphasizing opaque governance in ICSs that obscures public oversight of multimillion-pound budgets, such as the £3.5 billion allocated for 2023/24 system-wide transformations.[145] While governmentpolicy frames ICSs as enablers of holistic care, skeptics highlight implementation barriers, including fragmented initiatives that may inadvertently centralize power in integrated care partnerships (ICPs) at the expense of voluntary and community sectors, undermining causal links between integration rhetoric and tangible reductions in emergency admissions.[146] These debates underscore broader ideological divides: state-orchestrated coordination versus devolved, outcome-verified autonomy, with recent reports urging legislative tweaks to enhance transparency without reverting to pre-ICS silos.[8]