The Scottish Government has announced that it will invest more than £10m in telehealth over the next four years.

The investment will fund a new pilot that will involve more than 10,000 older people and people with long term conditions.

The main aim will be to encourage the use of healthcare technology in the public sector, including NHS Scotland, the private sector – including housing – and third sector organisations – including charities and social enterprises.

The move is the frist joint venture between the Scottish Government and the Technology Strategy Board, which have invested £3.9m and £5m respectively.

Other agencies involved include Highland and Island Enterprise and Scottish Enterprise, who are providing the remainder of the funding.

Health secretary Nicola Sturgeon said: "Supporting people to live independently at home is a key priority for the Scottish Government.

"Over the last four years, Scotland has made significant progress on developing and expanding new technologies to help people do just that – providing effective care and reassurance to many older people."

Sturgeon said that the demonstrator will show how cost savings can be made while delivering health benefits.

"The experiences from the Scottish Assisted Living Demonstrator will also be used to inform and provide invaluable opportunities for Scottish businesses in support of economic growth," she added.

The partners will work together over the next year to finalise details of the programme, such as geographic focus, before the programme is implemented in April 2012.

The Scottish Assisted Living Demonstrator is likely to be the first of a number of programmes that will be established across the UK by the Technology Strategy Board, under a programme named DALLAS – Demonstrators of Assisted Living Lifestyles at Scale.

England’s whole system demonstrator telehealth randomised controlled trials are expected to report over the course of this year.