DigitalHealth.London Global: France

France as a Post-Brexit Gateway

France's healthcare market, the largest in Europe by spending, has become a priority target for UK digital health firms seeking growth beyond the strained NHS. Recent years have seen UK innovators grapple with limited domestic adoption and funding pressures, pushing international expansion as a survival strategy.

The timing is driven by several converging factors. Europe's digital health sector led global funding growth in 2025 with a 15% rise to $6.2 billion, largely fuelled by US investment but signalling maturing ecosystems. For 2026, the emphasis shifts from raising capital to delivering exits and real-world impact, intensifying competition for cross-border opportunities.

France has positioned itself aggressively through its National Strategy for Artificial Intelligence and Health Data (2025-2028), which builds on the Health Data Hub (HDH) to enable secondary use of vast datasets for innovation, research, and AI development. This aligns with the phased rollout of the European Health Data Space (EHDS), effective from 2025, which harmonises data access across the EU and requires member states to designate Data Access Bodies by 2027. France aims to lead in 'technological sovereignty' in AI health applications, with state-backed investments de-risking deep tech.

For UK companies, France offers scale: a unified payer system via Assurance Maladie facilitates reimbursement pathways, and hubs like PariSanté Campus foster startups in AI, imaging, and interoperability. Bilateral momentum has grown, including the 2025 UK-France Industrial Strategy Partnership emphasising tech collaboration and over £1 billion in cross-investment announcements.

Tensions remain. Post-Brexit regulatory divergence means UK firms must navigate separate MHRA approvals alongside EU MDR compliance for devices, and data flows face scrutiny despite adequacy decisions. France's focus on sovereignty could favour domestic players, creating trade-offs between collaboration and protectionism. Yet shared pressures—workforce shortages, rising chronic conditions, and the need for preventive digital tools—drive mutual interest.

The stakes are high: missing France's window risks ceding ground in a market where early movers secure partnerships, reimbursement, and data access advantages. Successful entry could generate revenue diversification and validate solutions at scale, while failure to engage leaves UK firms more vulnerable to domestic fiscal tightening.