The UK Private Healthcare market report identifies consumers’ attitudes towards using private healthcare and analyses the impact of the cost of living crisis on the private healthcare industry. This report covers the private healthcare market, with information on market size and market forecast, and industry trends for the Private Healthcare market in the UK.
Key Issues Covered in this Report
- The elongated impact of COVID-19 on private healthcare and how providers and patients have reacted to market conditions and the issues facing the public sector.
- How the sector has been impacted by the cost of living crisis and the changing role of self-pay and PMI funded treatments?
- The changing role of the private sector in delivering NHS services.
- Consumer attitudes and opinions on private healthcare.
UK Private Healthcare Market Landscape
The well documented continued difficulties with waiting lists within the NHS are creating strong conditions for the private healthcare market with the restrictions on growth primarily arising from capacity and the cost of living issues. Nonetheless, the uncertainties surrounding the timing of treatments, combined with the length of those waiting times are encouraging both increased private medical insurance take-up and growth in the self-pay market.
- UK private healthcare market size: The UK market size for private healthcare is expected to reach £11 billion in 2023.
UK Private Healthcare Consumer Trends
Mintel found that 55% of consumers have never used a private healthcare service, and while this number has decreased since 2022, there is still a large potential consumer base for private healthcare providers. However, considering that over a third of private healthcare users in the UK paid for the treatment themselves, affordability is still a major barrier for many consumers.
Purchase our full UK Private Healthcare report to learn more about the industry, including market outlook, company profiles of the key industry players, and detailed consumer analysis.
Expert Analysis from a B2B Specialist
This report, written by Terry Leggett, a leading B2B analyst, delivers in-depth commentary and analysis to highlight current trends in the UK private healthcare market and add expert context to the numbers.
The private healthcare market is growing strongly on the back of the continued issues with waiting lists impacting the NHS. Moreover, arrangements with the NHS, a buoyant private medical insurance sector and growth in self-pay procedures are further growing the demand factors despite the cost of living crisis and the strong inflation within healthcare. Under such circumstances the sector is attracting buoyant activity from the private equity markets.Terry Leggett
Principal Analyst
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Overview
- Key issues covered in this Report
- Products covered in this Report
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Executive Summary
- The five-year outlook for private healthcare
- Figure 1: Category outlook, 2023-28
- The market
- Market size and forecast
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- Figure 2: Market size for private healthcare, 2018-28 (£ million)
- The role of the private sector
- Figure 3: Development of NHS and private sector elective activity, 2019-20 to 2021-22 (number)
- Types of clinical procedure
- Figure 4: Share of private care admitted elective care treatments, by type, pre and post-pandemic 2018-22
- Figure 5: Share of private care non-admitted elective care treatments, by type, pre and post-pandemic 2018-22
- Trend to Self-pay
- Figure 6: Payment methods for private healthcare admissions, 2019-22 (number)
- Companies and brands
- A diverse sector
- Attracting private equity
- The consumer
- Growing numbers but still huge potential
- Figure 7: Private healthcare use, by time passed since last visit, December 2022, (% of respondents)
- Self-pay growing in importance
- Figure 8: Method of payment for last private healthcare use, December 2022, (% of respondents)
- Over a third of treatment carried out was below £500
- Figure 9: Private healthcare treatment cost at last use, December 2022, (% of respondents)
- Affordability remains the primary barrier
- Figure 10: Factors behind not using private healthcare, December 2022, (% of respondents)
- But avoiding NHS waiting lists are a primary motivator
- Figure 11: Private healthcare choice factors, December 2022, (% of respondents)
- The five-year outlook for private healthcare
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Issues and Insights
- Cost of living impact on self-pay demand
- Figure 12: Proportional importance of private in-patient admissions, by payment source, 2019-2022 (%)
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- Figure 13: Quarterly analysis of funding of private in-patient admissions, 2022 (number)
- Can the private sector reduce NHS waiting lists?
- Cost of living impact on self-pay demand
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Market Size and Performance
- Healthcare and the private sector
- Strong growth continuing into 2023
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- Figure 14: Market size for private healthcare, 2018-23 (£ million)
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Market Forecast
- Strong prospects
- Figure 15: Category outlook, 2023-28
- Continued market growth
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- Figure 16: Market forecast for private healthcare, 2023-28 (£ million)
- Learnings from the last income squeeze
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- Figure 17: Industry performance following the last recession, 2008-15, (£ million)
- Strong prospects
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Market Segmentation
- Total planned hospital care
- Role of private care
- Figure 18: NHS and private sector elective activity, by funder and provider, 2021-22 (Number)
- Figure 19: Private care, by funding source, 2019-20 to 2021-22 (Number)
- Private sector growing in importance
- Figure 20: Development of NHS and private sector elective activity, 2019-20 to 2021-22 (number)
- Regional differences
- Figure 21: Market share of private elective activity, by region, 2021-22 (% by region)
- Types of clinical procedure
- Figure 22: Share of private care admitted elective care treatments, by type, pre and post-pandemic 2018-22
- Figure 23: : Share of private care non-admitted elective care treatments, by type, pre and post-pandemic 2018-22
- Trend to Self-pay
- Figure 24: Payment methods for private healthcare admissions, 2019-22 (number)
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Market Drivers
- The economy
- Inflation will continue to eat into consumer spending power over the course of 2023
- Further interest rate increases will hit mortgage-holders
- High inflation and rising interest rates will compound the impact of the slowing recovery
- Consumer spending power will be curbed
- Low unemployment is helping underpin
- Consumers’ financial wellbeing has fallen from the highs of 2021…
- Figure 25: Household financial wellbeing index, 2016-23
- …and most people are feeling the effects of price rises
- …and the effect on private healthcare
- NHS waiting times
- …an escalating issue
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- Figure 26: Referral to treatment waiting times in England, May 2017-23 (million)
- Figure 27: Median waiting times for referral to treatment, May 2017-23 (Weeks)
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- Figure 28: Number of referral to treatments of one year or more, May 2017-23 (000s)
- The August 2023 announcement
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Company Profiles
- Circle Health Group (formerly known as BMI Healthcare)
- Activity
- Performance
- Figure 29: Financial analysis of Circle Health Group, 2018-21 (£ million)
- Figure 30: Revenue sources for Circle Health Group, 2021 (£ million)
- Strategy
- HCA UK
- Activity
- Performance
- Figure 31: Financial analysis of HCA International, 2017-18 (£ 000)
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- Figure 32: Financial analysis of Roodlane Medical, 2017-21 (£ 000)
- Strategy
- Nuffield Health
- Activity
- Performance
- Figure 33: Financial analysis of Nuffield Health, 2017-21 (£ million)
- Strategy
- Ramsay Health Care UK Operations
- Activity
- Performance
- Figure 34: Financial analysis of Ramsay Health Care UK Operations, 2018-22 (£ 000)
- Strategy
- Spire Healthcare
- Activity
- Performance
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- Figure 35: Financial analysis of Spire Healthcare, 2018-22 (£ million)
- Figure 36: Revenue sources for Spire Healthcare, 2022 (%)
- Strategy
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Last Private Healthcare Visit
- Growing numbers use a private healthcare service
- Numbers reaching record levels
- Figure 37: Private healthcare use, by time passed since last visit, December 2022, (% of respondents)
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- Figure 38: Independent private in-patient/day-case admissions, 2017-22 (number)
- Younger generation more likely to use private healthcare
- Figure 39: Private healthcare use, by age, December 2022, (% of respondents)
- The types of procedures
- Figure 40: Top 10 independent healthcare procedures, 2019-2022 (000s)
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Method of Payment
- The importance of self-pay
- Figure 41: Method of payment for last private healthcare use, December 2022, (% of respondents)
- Differences between the sexes
- Figure 42: Method of payment for last private healthcare use, by gender, December 2022, (% of respondents)
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- Figure 43: Volume of private healthcare admissions, by gender and payment method, 2019-2022 (number)
- …and household income for self-payers
- Figure 44: Proportion of self-pay private healthcare use, by household income, December 2022, (% of respondents)
- The importance of self-pay
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The Cost of Treatment
- Over a third of treatment carried out was below £500
- Figure 45: Private healthcare treatment cost at last use, December 2022, (% of respondents)
- Over a third of treatment carried out was below £500
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Factors Behind Non-Private Use
- Cost is the largest barrier to private healthcare
- Figure 46: Factors behind not using private healthcare, December 2022, (% of respondents)
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- Figure 47: Analysis of those who would not use private healthcare services in the future, by household income, December 2022 (% of respondents)
- Cost is the largest barrier to private healthcare
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Private Healthcare Usage and Choice Factors
- Avoiding NHS waiting lists a primary factor
- Figure 48: Private healthcare choice factors, December 2022, (% of respondents)
- Avoiding NHS waiting lists a primary factor
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The Future of the NHS
- Increased nervousness and concern
- Figure 49: Five-year outlook for the NHS, December 2022, (% of respondents)
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- Figure 50: Unfilled posts in the NHS, by type, Jan-Mar 2018-23 (number)
- Increased nervousness and concern
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Appendix – Data Sources, Abbreviations and Supporting Information
- Abbreviations
- Consumer research methodology
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Appendix – Forecast Methodology
- Market forecast and prediction intervals
- Figure 51: Forecast market for private healthcare, 2022-28 (£ million)
- Market drivers and assumptions
- Market forecast and prediction intervals
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Further Sources and Contacts
- Trade associations
- Association of British Insurers (ABI)
- Association of Medical Insurers and Intermediaries (AMII)
- British Healthcare Trades Association (BHTA)
- Federation of Independent Practitioner Organisations (FIPO)
- The Independent Doctors Federation (IDF)
- Independent Healthcare Provider Network (IHPN)
- London Consultants’ Association (LCA)
- The Private Healthcare Information Network (PHIN)
- Trade magazines
- COVER
- Health Business
- Health & Protection
- Health Service Journal
- Hospital Times
- Trade events
- England’s Premier NHS Procurement Event
- Healthcare Efficiency Through Technology (HETT)/Commissioning in Healthcare (CIH)/Procurement in Healthcare (PIH)/Cyber Security in Healthcare (CSIH) Expo
- Safety & Health Expo
- Private Acute Healthcare Conference
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