Will this work?
This does not deal with the cultural problem which is that digital is not embedded in NHS thinking, and taking it and putting it in a separate box really doesn't help that. It will be the same people in a different box.
NHS Digital is rudderless and has not got its head around the fact that its sole purpose in life is to help clinical staff do a better job. There is zero customer awareness.
If I were doing this I would leave the existing structure and find a bunch of digital headkickers - people who have made things work and give them the resources to do more.