2021
9
UK Private Healthcare Market Report 2021
2021-06-22T04:08:55+01:00
OX1045897
1495
139572
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Report
en_GB
“With the COVID-19 pandemic having already led to thousands of cancer screenings and diagnoses being postponed or missed as well as fewer people visiting their GP with symptoms…

UK Private Healthcare Market Report 2021

£ 1,495 (Excl.Tax)

Description

Providing the most comprehensive and up-to-date information and analysis of the UK Private Healthcare market, including the behaviours, preferences and habits of the consumer.

Until the onset of the pandemic, UK expenditure on private acute healthcare rose year on year, but fell by some 14% in 2020 to a seven-year low of £7.4 billion.

Despite the decline in 2020, there is evidence that demand for private healthcare remains resilient.

According to PHIN, private elective care returned to pre-pandemic volumes in October 2020, implying that the private insured and self-pay market had largely recovered before the second national lockdown in England. In December 2020, admissions were only 5% lower than in December 2019 – this was not of much concern to the industry since elective treatment tends to stop over Christmas and the new year anyway.

The Royal College of Physicians has suggested that the backlog of NHS clinical work will take up to two years to address in some specialities, assuming no further COVID-19 outbreaks.

MBD expects these factors to boost demand for private healthcare after the slump in activity seen in 2020 when capacity was effectively closed to private patients. The remaining anxiety and fear of seeking non-urgent treatment in NHS hospitals after such a horrific disease has been present at facilities could see those who would not have considered using private services beforehand now considering them as an option.

However, with pressures remaining on the economy over the foreseeable future, it is essential that the sector innovates and continues to demonstrate its high quality and satisfactory patient outcomes, while marketing itself as ‘value for money’ as much as possible since treatment costs are still seen as being out of reach for many people.

Read on to discover more details or take a look at all of our Health and Wellbeing market research.

Quickly understand

  • The impact of COVID-19 on private healthcare and how providers and patients will react to the new market conditions.
  • How the private healthcare market will adapt to the post-COVID-19 environment.
  • The value of individual segments in the market in 2020 and how this has changed in light of the pandemic.

Covered in this report

Brands:  Bupa, AXA, Aviva, WPA, Edge Health, Legal & General, BMI Healthcare, Spire Healthcare, Nuffield Health, Ramsay Health Care, HCA, VitalityHealth.

Expert analysis from a specialist in the field

Written by Lewis Cone, a leading analyst in the Food & Drink sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

With the COVID-19 pandemic having already led to thousands of cancer screenings and diagnoses being postponed or missed as well as fewer people visiting their GP with symptoms and concerns, it is vital that the private healthcare sector steps up its involvement in these areas. The record high backlog in NHS treatment and surgeries will also provide opportunities for the industry.
Lewis Cone
Senior B2B Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • COVID-19: market context
    • Economic and other assumptions
    • Products covered in this Report
  2. Executive Summary

    • Impact of COVID-19 on private healthcare
    • Short-, medium- and long-term impact on the industry
      • Figure 1: Expected impact of COVID-19 on private healthcare and PMI: short, medium, and long term, 17 May 2021
    • Private acute healthcare
    • Market forecast
      • Figure 2: Forecast of UK expenditure on private acute healthcare, 2021-2025, (£m at 2020 prices)
    • Market size
    • Acute care spend declines as NHS block purchases hit available capacity
      • Figure 3: Segmentation of private healthcare market expenditure, by service type, 2020, (% of total expenditure)
    • Private medical insurance
    • Market forecast
      • Figure 4: UK market forecast for PMI subscription income, 2021-2025, (£m at constant prices)
    • Corporate PMI growth remains key source of PMI income
      • Figure 5: Segmentation of private medical insurance, by policyholder type, 2016-2020, (000 subscribers and £m)
    • Regional analysis
  3. Issues and Insights

    • PMI providers too slow in offering rebates which could damage take-up
    • Record high backlog in treatment and diagnosis provides opportunities and challenges
  4. The Market – Key Takeaways

    • Acute care spend declines as NHS block purchases hit available capacity
    • Sharp rebound expected in 2021 as sector attempts to clear some of its own backlog whilst also offering facilities for NHS use
    • Corporate PMI growth remains key source of PMI income
    • Market will experience a difficult 2021 but will rebound due to people covering themselves against NHS waiting lists and treatment backlog
  5. Private Acute Healthcare

    • Market value
      • Figure 6: UK expenditure on private acute healthcare, 2016-20, (£m)
    • PHIN
    • Private patient units
    • Number of private hospitals
      • Figure 7: Analysis of the development of private acute hospitals in the UK, 2016-20, (number of hospitals and % change)
    • Number of beds
      • Figure 8: Analysis of the development of the number of beds in private acute hospitals in the UK, 2016-20, (number of beds and % change)
    • Market segmentation
    • Expenditure by service type
      • Figure 9: Segmentation of private healthcare market expenditure, by service type, 2016-20, (£m)
    • NHS referrals overtake PMI as largest revenue source in 2020, but PMI and self-funders likely to rebound
      • Figure 10: Funding sources for private acute hospitals and clinics, 2019 and 2020, (£m and % of total spend)
    • Trauma and orthopaedics most common procedures in private facilities in 2019
      • Figure 11: Top 10 private specialties, 2019, (number of procedures)
    • Market share
    • Hospital and bed share
      • Figure 12: Major private acute hospital operators, 2020, (number of hospitals beds and average number of beds per hospital)
    • PHIN and LSE establish research partnership
    • Private hospital and NHS hospital performance comparison pilots get underway
    • Industry deals and developments
  6. Forecast

    • Short-, medium-, and long-term impact on the industry
      • Figure 13: Expected impact of COVID-19 on private acute healthcare: short, medium, and long term, 17 May 2021
    • Market drivers and assumptions
      • Figure 14: Key drivers affecting Mintel’s market forecast, 2016-2025, (in % annual change, millions, and % annual change)
    • Learnings from the last recession
      • Figure 15: Industry performance following the last recession, 2008-2015, (£ million)
    • Overview
    • NHS budget and reform
    • Sharp rebound expected in 2021 as sector attempts to clear some of its own backlog whilst also offering facilities for NHS use
      • Figure 16: forecast of UK expenditure on private acute healthcare, 2021-2025, (£ million at 2020 prices)
  7. Private Medical Insurance

    • PMI ownership and availability
      • Figure 17: Attitudes towards accessing healthcare in the future, July 2020, (% of respondents)
      • Figure 18: Types of cover included in policy, July 2020, (% of respondents)
    • Average PMI premiums
      • Figure 19: Amount willing to pay for health insurance by non-policyholders, July 2020, (% of respondents)
      • Figure 20: Annual average PMI premium, by purchaser type, 2010-20, (£)
    • Subscription growth
      • Figure 21: The UK PMI market, by number of policyholders and people covered, 2016-20, (000)
    • Market segmentation
    • Overall PMI market
      • Figure 22: Segmentation of PMI subscribers, by policyholder type, 2016-20, (in 000)
      • Figure 23: Segmentation of PMI market value, by policyholder type, 2016-20, (£m)
    • Regional analysis
      • Figure 24: Estimated regional PMI penetration and weekly spend on PMI premiums in 2018-20, (% of all households and average weekly spend on PMI premiums in £)
    • Household expenditure by age group
      • Figure 25: Average weekly household expenditure on medical insurance premiums, by age group, 2016-20, (£)
    • PMI industry structure
    • Market share
      • Figure 26: Estimated market share in the UK PMI market, by company, 2020, (% of total subscription revenue)
    • Recent industry deals and developments
    • PMI forecast
    • Short-, medium- and long-term impact on the industry
      • Figure 27: Expected impact of COVID-19 on PMI: short, medium, and long term, 17 May 2021
    • Market drivers and assumptions
      • Figure 28: Key drivers affecting Mintel’s market forecast, 2016-2025, (in % annual change, millions, and % annual change)
    • Learnings from the last recession
      • Figure 29: Industry performance following the last recession, 2008-2015, (£ million)
    • Overview
    • Market will experience a difficult 2021 but will rebound due to people covering themselves against NHS waiting lists and treatment backlog
      • Figure 30: UK market forecast for PMI subscription income, 2021-2025, (£m at constant prices)
  8. The Impact of the Economy

    • UK economy contracts by record 9.9% in 2020 due to COVID-enforced economic shutdowns
      • Figure 31: Annual GDP growth rate, (%), 2016-2020, (%)
    • Bank rate remains at a record low of 0.1%
      • Figure 32: Bank rate, by date of adjustment, 2008-20, (%)
  9. Market Drivers

      • Figure 33: Total departmental expenditure limits, in real terms (£m, % of total DEL and % change in NHS DEL), 2016/17-2020/21
    • NHS waiting lists and times hit high as pandemic wreaks havoc on non-COVID care
    • Changes expected to be made in private sector outsourcing but opportunities remain
    • Stagnant disposable income could suppress short-term PMI growth
      • Figure 34: GDP per head at current market prices and real household disposable income per head, Q4 2016 – Q4 2020, (£)
    • Rise in unemployment rate could lead to reduced demand for corporate PMI…
      • Figure 35: Total UK unemployment rate among people aged 16+, Q1 2017 – Q1 2021, (%)
    • … whilst Brexit will change how the industry recruits healthcare professionals
  10. Companies and Brands – Key Takeaways

    • Cleveland Clinic partners with several hospitals prior to opening its new London hospital in 2022
    • Bupa UK launches ‘Bupa Balance’ for big businesses
  11. Competitive Strategies

    • Cleveland Clinic partners with several hospitals prior to opening its new London hospital in 2022
    • Bupa UK launches ‘Bupa Balance’ for big businesses
    • BMI Healthcare enters digital partnership to improve access
    • Vitality partners with Peppy to become first UK private medical insurer to offer a dedicated menopause support service
  12. Company Profiles – Private Hospital and Clinic Providers

    • BMI Healthcare
    • Recent company activity
    • Financial information
      • Figure 36: Financial analysis of BMI Healthcare, 2015-20*, (£000)
    • HCA International
    • Recent company activity
    • Financial information
      • Figure 37: Financial analysis of HCA International, 2015-19, (£000)
    • Roodlane Medical
      • Figure 38: Financial analysis of Roodlane Medical, 2015-19, (£000)
    • Ramsay Health Care UK Operations
    • Recent company activity
    • Financial information
      • Figure 39: Financial analysis of Ramsay Health Care UK operations, 2015-19, (£000)
    • Spire Healthcare
    • Recent company activity
    • Financial information
      • Figure 40: Financial analysis of Spire Healthcare Group, 2016-20, (£ million)
  13. Company Profiles – Private Medical Insurance Providers

    • Aviva Healthcare
      • Figure 41: Financial analysis of Aviva plc, 2016-20, (£m)
    • AXA Health (formerly known as AXA PPP Healthcare)
      • Figure 42: Financial analysis of AXA Health (formerly AXA PPP Healthcare), 2016-20, (£m)
    • Bupa
      • Figure 43: Financial analysis of Bupa, 2016-20, (£m)
    • VitalityHealth
      • Figure 44: Financial analysis of Vitality Health Limited, 2016-20, (£000)
  14. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Methodology
  15. Appendix – 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
    • The View
    • Trade events
    • Healthcare Efficiency Through Technology (HETT)/Commissioning in Healthcare (CIH)/Procurement in Healthcare (PIH)/Cyber Security in Healthcare (CSIH) Expo
    • Safety & Health Expo
    • The Private Healthcare Summit
    • The Procurement Event for Health (P4H) England

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

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Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

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Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

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*databooks not available with UK B2B Industry reports.

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