The Government is to work with industry to introduce "high tech Healthcare" for people with long term health conditions.
Paul Burstow, care services minister, announcing the move, said over the next five years the Department of Health will work with industry, the NHS, social care and professional organisations to bring assistive technology such as telehealth and telecare to three million people with long term conditions.
The Government expects a potential net efficiency gain of around £1.2 billion over the next five years
Telehealth and telecare use electronic equipment to read vital health signs such as pulse, weight, respiration and blood oxygen levels, which can be read remotely by medical staff.
Burstow said: "Trials of telehealth and telecare have shown how people with long term conditions can live more independently, reducing the time they have to spend in hospital and improving their quality of life.
"That is why we are working with industry, the NHS and Councils to change the lives of three million people across England over the next five years."
Findings from a trial in Cornwall have led the Government to expect a 45% reduction in mortality;
21% reduction in emergency admissions; 24% reduction in elective admissions; 15% reduction in A&E visits; 14% reduction in bed days; 8% reduction in tariff costs.
