This green paper discusses the future of molecular diagnostics and the need for decentralising diagnostic services to improve patient access and outcomes. It outlines the consensus among healthcare professionals that services should be delivered closer to patients, which can reduce costs and alleviate system pressures. The paper highlights the NHS's commitment to community-based care, particularly following the COVID-19 pandemic, which accelerated the shift towards out-of-hospital initiatives. It details the barriers to fully realising the potential of decentralised diagnostics in England and recommends four key areas of action: national leadership to support the shift, reassessing the value of diagnostics, accelerating new patient pathways, and introducing national incentives and funding models. The paper emphasizes the importance of reforming diagnostic testing services as part of the forthcoming 10-Year Health Plan to ensure that care is effectively decentralised and tailored to local health needs, ultimately enhancing patient outcomes and reducing the burden on hospitals.