The sustainability of the National Health Service

This is how the Veneto region is turning to technology to cope with the challenges of an ageing population

The view that technology can cushion the fiscal impact of an ageing population is now widely accepted in much of the economic literature on the subject

5' min read

Translated by AI
Versione italiana

5' min read

Translated by AI
Versione italiana

The Veneto region has one of the highest old-age indices in Italia. In 2005, the ratio of the population aged over 65 to that aged under 14 was one to one; by 2025, this had risen to two to one and, according to Istat projections, it will be three to one by 2050.

The population pyramid, with a broad base of young people and a narrow apex of older people, has effectively been inverted, with a consequent serious impact on healthcare expenditure.

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Over the years, the proportion of people aged over 65 has risen from 19 per cent in 2005 to the current 25 per cent, and is expected to reach 35 per cent by 2050, with those aged over 85, a group that accounts for the largest share of healthcare expenditure, rising from 4 per cent to 8 per cent. Compared with the rest of Europe, Italia – like the Veneto region – is ageing not because of excessive longevity — a phenomenon common to many wealthy countries — but due to a more rapid decline in the under-14s, who in 2025 fell to 11.9 per cent (from 14.1 per cent in 2005) compared with the EU average of 14.4 per cent. Yet, looking solely at the latest available figure, one might think the opposite. As at 1 January 2025, the Veneto region had 4,849,553 residents, 1,256 more than the previous year: although minimal, this change is positive and bucks the national trend (–0.05 per cent compared with +0.03 per cent regionally). This represents genuine stability, which has persisted for three years and has slowed the decline that began in 2014. However, it is, in fact, merely a slowdown: ISTAT’s own projections indicate a return to decline, with an estimated loss of around 68,000 residents by 2040 and 168,000 by 2050.

Put in these terms, the issue bears a close resemblance to a debate currently taking place elsewhere, on a much larger scale. In March, a group of researchers led by the Australian ecologist Corey Bradshaw published a study in *Environmental Research Letters* arguing that the world’s population has already exceeded the planet’s sustainable carrying capacity, setting the threshold for a decent standard of living within the limits of renewable resources at around 2.5 billion people — compared with the current figure of 8 billion. Whilst we are aware that this study requires some interpretative caution due to certain methodological aspects, the question it raises – namely, how many people a system can support given the constraints of available resources – is the very same one we must ask ourselves today when planning healthcare expenditure for a region such as Veneto. The difference is that here the constraint is not the planet’s natural resources, but the tax revenue generated by a shrinking working-age population.

The view that technology can cushion the fiscal impact of an ageing population is now widely accepted in much of the economic literature on the subject. However, when it works, it does so through three distinct mechanisms. The first helps to reduce the unit cost of care through telemedicine, remote monitoring and AI-assisted diagnostics, which enable a shift from reactive medicine – ‘you fall ill, so I treat you’ – to predictive medicine, whereby the acute phase of a chronic condition is anticipated, thereby avoiding hospitalisation. Assistive robotics, by providing intelligent systems and devices to support older people and those with disabilities, will help reduce the number of hours of human labour required for daily care, thereby facilitating a better allocation of resources.

The second driver extends working life: automation and AI are helping to address labour shortages in sectors such as logistics, manufacturing and care.

The third makes financial systems more efficient: instruments such as longevity bonds – bonds indexed to life expectancy – can provide a solution by enabling the transfer of part of the demographic risk from public finances to the capital markets; furthermore, actuarial models based on big data make it possible to price longevity risk correctly, preventing pension funds and insurers from underestimating their reserves – a mistake for which they usually pay the price decades later.

Issues of this kind are common to countries in the Far East: take Japan and South Korea, for example. The most frequently cited example remains that of Japan, where nearly one in three residents is over 65 — the highest proportion in the world — and where the market for care robots is worth over 350 billion yen a year, supported by public subsidies alongside a reform of pension contributions. On a global scale, the market linked to an ageing population — the so-called ‘silver economy’ — is estimated to grow from 8,300 billion dollars in 2020 to 26,400 billion by 2040, almost triple the expected growth rate of global GDP: these are indicative estimates rather than precise forecasts, but the trend — structurally faster growth than the economy as a whole — appears solid. As early as the 1970s, South Korea established KAIST, which set out to develop robotic solutions to address the shortage of staff in the social and healthcare sectors, at a time when the ageing population was reaching disruptive proportions.

None of these three channels, however, automatically generates savings. Robotics, artificial intelligence infrastructure and pension reforms require substantial initial investment, with savings only materialising years later; and if access to new technologies is concentrated amongst the wealthiest sections of the population, the aggregate tax benefit is reduced even when the individual solution works well. In short, sustainability is not an automatic by-product of innovation: it is a choice about where to direct it and who can access it.

In order for the proposed measures to generate savings over time, it is worth reiterating that substantial initial investment is required; this cannot be met by the individual Regional Health Systems alone, but rather a far-reaching programme must be put in place, starting at national level.

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The Veneto Region has launched two initiatives: the Veneto Global Healthy Ageing Innovation Lab, promoted by the Regional Presidency in collaboration with the WHO European Office in Venice, which aims to integrate healthcare and social services by shifting care towards the home and the community. The second initiative, which is more values-based, is the ‘Padua Charter – In Universum Salus’, promoted by Gino Gerosa, a cardiac surgeon and now Regional Councillor for Health, which sets out 15 points linking healthcare innovation and economic sustainability. At national level, Ministerial Decree 77/2022 and Law 33/2023 are moving in the same direction, promoting home care and active ageing.

The issue remains one of timing. Measures of this kind — from pension reform to the redesign of reimbursement systems for healthcare technologies — cost less and work better if implemented before demographic pressure reaches its peak, not afterwards. We must therefore tackle the issue of an ageing population – a certainty already reflected in the figures – through the pillars of preventive medicine, rather than as a shock to which we react when it is too late to plan. Even more important is the ability to integrate these strategies with prevention programmes, which can no longer be regarded as a luxury but as a duty. Only in this way will we succeed in narrowing the gap between life expectancy and healthy life years among the Italian population: all this to ensure that we continue to have a public, fair and inclusive healthcare system.

*Councillor for Health and Healthcare Planning for the Veneto Region

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