2022
9
UK Private Healthcare Market Report 2022
2022-07-07T04:04:48+01:00
OX1102959
1495
152746
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Report
en_GB
“With the government admitting that NHS waiting lists will only start to decline in 2024, private healthcare activity will be boosted by those unwilling to wait to receive treatment or…

UK Private Healthcare Market Report 2022

£ 1,495 (Excl.Tax)

Description

The UK Private Healthcare market report identifies consumers’ attitudes towards using private healthcare, the impact of COVID-19 on private healthcare, and future innovations to encourage non-users to the service. This report covers the private healthcare market size, market forecast, market segmentation and industry trends for the Private Healthcare market in the UK.

 

Current Market Landscape 

Although initial COVID-19 emergency agreements have ended, the independent healthcare sector remains willing to provide capacity where and when the NHS requires it and is currently a year into a four-year £10 billion deal to help clear the additional backlog in treatment and diagnostics that have occurred due to the pandemic.

Alongside backlogs in both the independent healthcare sector and NHS treatment, there remains a mutual benefit for continued collaboration between UK private healthcare market providers and the NHS to build out specialties that work best for both.

Market Share and Key Industry Trends

The current pandemic aside, an efficient and cost-effective UK private healthcare sector would lead to greater benefits for patients, providers, health professionals and insurers while also easing the burden on the NHS and the wider UK health sector.

The NHS waiting list is now at the highest level since comparable records began in 2007 and currently stands at 6.4 million. UK private healthcare market share and activity will be boosted by adults who are unwilling to wait significant periods to receive treatment or care. As it stands, NHS waiting lists will only begin to decline in 2024.

  • 58% of respondents have never used a private healthcare service.
  • 76% of consumers who haven’t used a private healthcare service say that cost of treatment is the largest usage barrier.
  • 23% of UK adults said they would consider using private healthcare in the future, while 40% were unsure of their future plans regarding using private healthcare.

Future Market Trends in Private Healthcare Market

Future trends in the UK private healthcare market include a continued support of the NHS, by providing the UK with a medical alternative to help unburden the NHS from some of its financial and resource pressures. Other trends that are expected include expenditure on health to remain above pre-pandemic levels over the foreseeable future, due to healthcare shifting to one of the UK’s top priority over the pandemic.

However, the UK private healthcare self-pay market will still need to combat usage barriers such as affordability concerns. Also, the current inflationary pressures may dampen the rebound in activity levels seen in the independent healthcare sector.

Read on to discover more details or take a look at all of our UK Private Healthcare Market Research.

Understand Quickly

  • The impact of COVID-19 on private healthcare and how providers and patients have reacted to market conditions.
  • An explanation of how the private healthcare market will adapt to the post-COVID-19 environment.
  • The value of individual segments in the market in 2021 and how this has changed in light of the pandemic.

Covered in this Report

Product Types:  Publicly financed/private supply, privately financed/public supply, privately financed/private supply.

Brands:  Bupa, Circle Health Group, Nuffield Health, Ramsay Health Care UK, HCA International, Spire Healthcare.

Expert Analysis from a Specialist in the Field

With the government admitting that NHS waiting lists will only start to decline in 2024, private healthcare activity will be boosted by those unwilling to wait to receive treatment or care. The result is that independent hospitals should be braced for higher volumes with opportunities to further expand capacity at higher than pre-pandemic levels.”

Lewis Cone
Senior B2B Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • Market context
    • Products covered in this Report
  2. Executive Summary

    • The five-year outlook for private healthcare
      • Figure 1: Five-year outlook for private healthcare, 2022-26
    • The market
    • Market forecast
      • Figure 2: Market size and forecast of the UK private healthcare market, 2017-27, (£ million at 2021 prices)
    • Market size
    • Market spend rebounds as emergency NHS block purchases ease and normal activity resumes
      • Figure 3: Segmentation of private healthcare market expenditure, by service type, 2021, (% of total expenditure)
    • The consumer
    • 58% of consumers have never used a private healthcare service
      • Figure 4: Private healthcare use, by time passed since last visit, (% of respondents)
    • ‘Self-pay’ by far the most common singular payment method, but PMI remains most common payment method overall … just
      • Figure 5: Method of payment for last private healthcare use, (% of respondents)
    • Cost remains the largest barrier to private healthcare
      • Figure 6: Factors behind not using private healthcare, (% of respondents)
  3. Issues and Insights

    • Low NHS accessibility and backlog drives opportunities, but doubts remain over industry’s capability to take full advantage
    • Private providers are not able to sit on Integrated Care Boards, but will still have a vital role to play in health services provision
  4. Private Acute Healthcare

    • Market value
      • Figure 7: UK expenditure on private acute healthcare, 2017-21, (£ million and annual change)
    • Number of private hospitals
      • Figure 8: Analysis of the development of private acute hospitals in the UK, 2017-21, (number of hospitals, net annual change, and % change)
    • Number of beds
      • Figure 9: Analysis of the development of the number of beds in private acute hospitals in the UK, 2017-21, (number of beds , % change, and average beds per hospital)
    • Market segmentation
    • Expenditure by service type
      • Figure 10: Segmentation of private healthcare market expenditure, by service type, 2017-21, (£ million)
    • PMI reclaims its position as the industry’s largest revenue source in 2021 with self-funders providing a challenge
      • Figure 11: Funding sources for private acute hospitals and clinics, 2020 and 2021, (% of total spend)
    • Orthopaedics and trauma most common procedures in private facilities in 2022 to date
      • Figure 12: Top 10 private specialties, England, February 2022, (number of procedures)
    • Healthcode and patientzone improve efficiency of online patient billing
    • Market share
    • Hospital and bed share
      • Figure 13: Major private acute hospital operators, 2021-22, (number of hospitals, beds, and average number of beds per hospital)
    • Healthcode launches latest edition of its PPR to help hospitals and practitioners comply with new Framework
    • IHPN launches industry-wide commitment to achieve ‘net zero’ by 2035
    • Industry deals and developments
  5. Forecast

    • The five-year outlook for private healthcare
      • Figure 14: Five-year outlook for the private healthcare market, 2022-27
    • Learnings from the last recession
      • Figure 15: Industry performance following the last recession, 2008-15, (£ million)
    • Overview
    • NHS budget and reform
    • Health and Care Act 2022
    • Robust growth expected over the next few years as sector capitalises on the NHS backlog and an uptick in the number of people willing to self-fund treatment
      • Figure 16: Market size and forecast of the private healthcare market, 2017-27, (£ million)
  6. The Impact of the Economy

    • Omicron and the Russia-Ukraine conflict have dampened GDP in 2022 to date
      • Figure 17: Annual GDP growth rate, 2017-21, (%)
    • Bank Rate rises for the fourth time since February as inflationary pressures escalate
      • Figure 18: Bank of England Base Rate, by date of adjustment, 2008-22, (%)
  7. Market Drivers

      • Figure 19: Total departmental expenditure limits, in real terms, 2017/18-2021/22, (£ million, % of total DEL and % change in NHS DEL)
    • NHS waiting lists and times hit record high, leading more people to private sector
    • Inflation and the impact on disposable incomes could dampen the recent uptick in self-pay levels
      • Figure 20: GDP per head at current market prices and real household disposable income per head, Q4 2017 – Q4 2021, (£)
    • Continual fall in unemployment rate boosts demand for corporate PMI
      • Figure 21: Total UK unemployment rate among people aged 16+, Q1 2018 – Q1 2022, (%)
    • Brexit-led changes to recruitment provides challenges as industry requires greater numbers of staff to meet healthcare demand
  8. Competitive Strategies

    • Bupa launches fee-controlled consultant list for its PMI products
    • Ramsay Health Care rolls out electronic patient record
    • GE Healthcare and Circle Health Group enter 10-year tech and data partnership
    • HCA Healthcare UK launches rapid response referral service
  9. Company Profiles

    • Circle Health Group (formerly known as BMI Healthcare)
      • Figure 22: Financial analysis of Circle Health Group (formerly known as BMI Healthcare), 2016*-20^, (£000)
    • HCA International
      • Figure 23: Financial analysis of HCA International, 2016-20, (£000)
    • Roodlane Medical
      • Figure 24: Financial analysis of Roodlane Medical, 2016-20, (£000)
    • Ramsay Health Care UK Operations
      • Figure 25: Financial analysis of Ramsay Health Care UK operations, 2016-20, (£000)
    • Spire Healthcare
      • Figure 26: Financial analysis of Spire Healthcare Group, 2017-21, (£ million)
  10. Last Private Healthcare Visit

    • 58% of consumers have never used a private healthcare service
      • Figure 27: Private healthcare use, by time passed since last visit, April 2022, (% of respondents)
    • Younger people most likely to have used private healthcare in the last year
      • Figure 28: Private healthcare use, by time passed since last visit and by age and gender, (% of respondents)
    • Almost a quarter of non-users would consider using private health services in the future
      • Figure 29: Potential future private healthcare use, (% of respondents)
  11. Method of Payment

    • ‘Self-pay’ by far the most common singular payment method, but PMI remains most common payment overall … just
      • Figure 30: Method of payment for last private healthcare use, (% of respondents)
    • 41% of women have self-funded their private healthcare treatment
      • Figure 31: Method of payment for last private healthcare use, by gender and age, April 2022, (% of respondents)
    • Self-pay and workplace PMI accounted for almost two thirds of payments over the last six months
      • Figure 32: Method of payment for last private healthcare use, by time passed since last private healthcare use, April 2022, (% of respondents)
    • Self-funding most common for least expensive treatment, but also competes with PMI at other price points
      • Figure 33: Private healthcare payment method, by treatment cost at last use, April 2022, (% of respondents)
  12. Cost of Treatment

    • Over a third of treatment carried out was below £500
      • Figure 34: Private healthcare treatment cost at last use, (% of respondents)
  13. Factors Behind Non-Private Use

    • Cost remains the largest barrier to private healthcare
      • Figure 35: Factors behind not using private healthcare, (% of respondents)
  14. Choice Factors

    • Avoiding a long waiting list and obtaining non-NHS treatment most common reasons for using private healthcare
      • Figure 36: Private healthcare choice factors, (% of respondents)
  15. NHS Future

    • Over half of people expect more services to be outsourced to the private sector
      • Figure 37: Five-year outlook for the NHS, April 2022, (% of respondents)
  16. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • B2B research methodology
    • Consumer research methodology
  17. Appendix: Forecast Methodology

    • Market forecast and prediction intervals
      • Figure 38: The UK market size and forecast for private healthcare, 2017-27, (£ million)
    • Market drivers and assumptions
      • Figure 39: Key drivers affecting Mintel’s market forecast, 2020-26, (% change)
    • Forecast methodology
  18. 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

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.

Consumer

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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