Table of Contents
Executive Summary
-
- Private acute healthcare
- Market value continues to grow but growth rate stagnates
-
- Figure 1: UK expenditure on private acute healthcare, 2014-18, (£ million)
- Expenditure on health screenings shows strongest growth
-
- Figure 2: Segmentation of private healthcare market expenditure by service type, 2018, % of total expenditure)
- Stable growth expected to 2023
-
- Figure 3: Forecast UK expenditure on private acute healthcare, 2019-23, (£ million at 2018 prices)
- Private medical insurance
- Corporate PMI market continues to drive growth
-
- Figure 4: Segmentation of private medical insurance, by policyholder type, 2014-18, (000 subscribers and £ million)
- Regional analysis
- Slow but consistent growth expected to 2023
-
- Figure 5: UK market forecast for PMI subscription income, 2019-23, (£ million at constant prices)
- Companies and brands
- Bupa and Babylon extend SME access to digital health solutions
- The consumer
- 62% of people have never used a private healthcare service
- PMI cover via the workplace most common payment, but ‘self-pay’ continues to close the gap
- What we think
Issues and Insights
-
- Insurers still missing out on opportunities in the SME sector
- The facts
- The implications
- Calls for private hospitals to publish data to help improve patient safety and outcomes
- The facts
- The implications
The Market – What You Need to Know
-
- Expenditure on health screenings records strongest growth
- Hospital and clinic spend to remain stable to 2023
- Corporate PMI market continues to drive growth
- Moderate growth in PMI value expected over the next five years
Private Acute Healthcare
-
- Cancer treatment
- IVF
- Market value
-
- Figure 6: UK expenditure on private acute healthcare, 2014-2018, (£ million)
- Number of hospitals and beds
-
- Figure 7: Analysis of the development of private acute hospitals in the UK, 2014-18, (number of hospitals and % change)
-
- Figure 8: Analysis of the development of the number of beds in private acute hospitals in the UK, 2014-18, (number of beds and % change)
- Market segmentation
- Expenditure by service type
-
- Figure 9: Segmentation of private healthcare market expenditure, by service type, 2014-18, (£ million)
- PMI remains largest source of revenue, but share continues to fall
-
- Figure 10: Funding sources for private acute hospitals and clinics, 2017 and 2018, (£ million and % of total spend)
- Cataract surgery is the most commonly performed procedure
-
- Figure 11: Top 10 private procedures, 2017, (number of procedures in 000 and % annual change)
- Market share
- Hospital and bed share
-
- Figure 12: Major private acute hospital operators, 2018, (number of hospitals, beds, and average number of beds per hospital)
- Independent inquiry examines the way NHS patients are referred to and from the private sector, with a report due this summer
- Private healthcare data will be integrated into NHS systems to improve transparency regarding care standards
- Industry deals and developments
Forecast
-
- Stable growth expected to 2023
-
- Figure 13: Forecast UK expenditure on private acute healthcare, 2019-23, (£ million at 2018 prices)
Private Medical Insurance
-
- PMI ownership and availability
-
- Figure 14: Ownership of health insurance, cash plans, and related products, August 2018, (% of respondents)
- Average PMI premiums
-
- Figure 15: Annual average PMI premium, by purchaser type, 2008-18, (£)
- Subscription growth
-
- Figure 16: The UK PMI market, 2014-18, by number of policyholders and people covered, (000)
- Market development
Market Segmentation
-
- Overall PMI market
-
- Figure 17: Segmentation of PMI, by policyholder type, 2014-18, (000 subscribers and £ million)
- Regional analysis
-
- Figure 18: Estimated regional PMI penetration and weekly spend on PMI premiums, (% of households in 2016-18 and average weekly spend on PMI premiums in 2016-18)
- Household expenditure by age group
-
- Figure 19: Average weekly household expenditure on medical insurance premiums, by age group, 2013-18, (£)
- PMI industry structure
- Market share
-
- Figure 20: Estimated market share in the UK PMI market, by company, 2018, (% of total subscription revenue)
- Recent industry deals and developments
PMI Forecast
-
- Slow but consistent growth expected to 2023
-
- Figure 21: UK market forecast for PMI subscription income, 2019-23, (£ million at constant prices)
- Figure 22: UK market forecast for PMI, by number of policyholders, 2019-23, (000s of subscribers)
The Impact of the Economy
-
- Annual GDP growth falls to six-year low in 2018
-
- Figure 23: Annual GDP growth rate, 2014-18, (%)
- Bank rate remains at 0.75%
-
- Figure 24: Bank rate, 2008-18, by date of adjustment, (%)
Market Drivers
-
-
- Figure 25: Total departmental expenditure limits, in real terms, 2014/15-2018/19, (£ million, % of total DEL and % change in NHS DEL)
- NHS continues to fall short of waiting time targets, leading to calls for further private provision
- With Brexit still on the horizon, uncertainty remains over its potential impact on healthcare spending and recruitment
- Outsourcing to private sector remains high despite annual decline in contract value
- Increase in disposable income could offset the impact of a rise in PMI premiums
-
- Figure 26: GDP per head at current market prices and real household disposable income per head, Q4 2014-Q4 2018, (£)
- Near all-time low unemployment rate should maintain demand for corporate PMI despite business uncertainty
-
- Figure 27: Total UK unemployment rate among people aged 16+, Q1 2015-Q1 2019, (%)
-
Companies and Brands – What You Need to Know
-
- Private healthcare solution launched that works alongside the NHS
- Bupa and Babylon extend SME access to digital health solutions
Competitive Strategies
-
- Private healthcare solution launched that works alongside the NHS
- Bupa and Babylon extend SME access to digital health solutions
- HCA and Bupa launch new specialist centres for breast cancer
- Aviva launches new corporate PMI service
Company Profiles – Private Hospital and Clinic Providers
-
- BMI Healthcare
- Recent company activity
- Financial information
-
- Figure 28: Financial analysis of BMI Healthcare, 2013-18*, (£000)
- HCA International
-
- Figure 29: Financial analysis of HCA International, 2013-17, (£000)
- Roodlane Medical
-
- Figure 30: Financial analysis of Roodlane Medical, 2013-17, (£000)
- Ramsay Health Care UK Operations
- Recent company activity
- Financial information
-
- Figure 31: Financial analysis of Ramsay Health Care UK operations, 2014-18, (£000)
- Spire Healthcare
- Recent company activity
- Financial information
-
- Figure 32: Financial analysis of Spire Healthcare Group, 2014-18, (£ million)
Company Profiles – Private Medical Insurance Providers
-
- Aviva Healthcare
- Recent company activity
- Financial information
-
- Figure 33: Financial analysis of Aviva plc, 2014-18, (£ million)
- AXA PPP Healthcare
- Recent company activity
- Financial information
-
- Figure 34: Financial analysis of AXA PPP Healthcare, 2013-17, (£ million)
- Bupa
- Recent company activity
- Financial information
-
- Figure 35: Financial analysis of Bupa, 2014-18, (£ million)
- VitalityHealth
- Recent company activity
- Financial information
-
- Figure 36: Financial analysis of Vitality Health Limited, 2014-18, (£000)
The Consumer – What You Need to Know
-
- 62% of people have never used a private healthcare service
- PMI cover via the workplace most common payment, but ‘self-pay’ continues to close the gap
- NHS expected to remain free at the point of use, but people remain concerned over funding and staffing
Last Private Healthcare Visit
-
- 62% of consumers have never used a private healthcare service
-
- Figure 37: Private healthcare use, by time passed since last visit, April 2019, (% of respondents)
- Younger people most likely to have used private healthcare over the last year
-
- Figure 38: Private healthcare use, by time passed since last visit and by age and gender, April 2019, (% of respondents)
- Young people most likely to consider using private health services in the future
Method of Payment
-
- PMI cover via the workplace most common payment, but ‘self-pay’ continues to close the gap
-
- Figure 39: Private healthcare payment method, April 2019, (% of respondents)
- A third of women self-fund treatment
-
- Figure 40: Private healthcare payment method, April 2019, (% of respondents)
Health Insurance Provider
-
- Bupa is the largest provider of health insurance
-
- Figure 41: Private healthcare insurance provider, April 2019, (% of respondents)
Future of the NHS
-
- NHS expected to remain free at the point of use, but people remain concerned over funding and staffing
-
- Figure 42: The future of the NHS, April 2019, (% of respondents)
Appendix – Data Sources, Abbreviations and Supporting Information
-
- Abbreviations
- Methodology
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 Providers Network (IHPN)
- London Consultants’ Association (LCA)
- The Private Healthcare Information Network (PHIN)
- Trade magazines
- COVER
- Health Business
- Health Insurance & Protection
- Health Service Journal
- Hospital Times
- The View
- Trade events
- Health and Care Innovation Expo 2019
- Healthcare Efficiency Through Technology (HETT)/Commissioning in Healthcare (CIH)/Procurement in Healthcare (PIH)/Cyber Security in Healthcare (CSIH) Expo
- Hospital Innovations
- Safety & Health Expo
- The Private Healthcare Summit
- The Procurement Event for Health (P4H) England
Back to top