Table of Contents
Executive Summary
-
- Market size
-
- Figure 1: UK expenditure on private acute healthcare, 2012-16, (£ Million)
- Figure 2: The UK PMI market, 2012-16, by number of policyholders and people covered, (000)
-
- Figure 3: Estimated weekly spend on PMI premiums, by region, 2014-16, (average weekly spend in £)
- Market trends
- Medical inflation rates putting pressure on uptake level
- Healthcare trusts emerging as an alternative to PMI
- Market factors
- Strain on the NHS will impact industry development
- The uncertainty surrounding the outcome of ‘Brexit’ will influence spending and recruitment
- Third IPT rise in two years adds further barrier to PMI market growth
- Industry structure
- Private Acute Medical Care
- PMI
- Consumer
- Forecast
- 5% growth per year expected to 2021
-
- Figure 4: Forecast UK expenditure on private acute healthcare, 2017-21, (£ Million at 2016 prices)
- Corporate PMI will drive overall market growth
-
- Figure 5: UK market forecast for private medical insurance subscription income, 2017-21, (£ million at constant prices)
- What we think
Key Insights
-
- Is private involvement in the NHS going to rise?
- Is the industry tackling barriers to private healthcare usage?
- What are the main issues that could arise from Brexit?
Introduction
-
- Definitions
- Methodology
- Abbreviations
- Market positioning
- Healthcare environment
UK Economy
-
- Key points
- Overview
-
- Figure 6: UK GDP, 2006-16, (% quarterly growth and GDP in £ billion)
- Figure 7: UK output, by industry, 2008-16, (Index 2013 = 100)
-
- Figure 8: Quarters after gdp peak, 1979, 1990 and 2008, (number of quarters and GDP as % of predownturn peak)
- Inflation
- Interest rates
- House prices
-
- Figure 9: UK house price changes, 2006-17, (12-month % change)
- Consumer spending
- Manufacturing
-
- Figure 10: UK manufacturing, 2014-17, (index, 2013 = 100)
- Business investment
-
- Figure 11: UK gfcf 2005-16, (£ million)
- Imports
- Exports
Market Factors
-
- Key points
- Strain on the NHS will impact industry development
-
- Figure 12: Total departmental expenditure limits, in real terms, 2011/12-16/17, (£ million, % of total DEL and % change in NHS DEL)
-
- Figure 13: Total departmental expenditure limits, in real terms, 2011/12-16/17, (£ million and % of total DEL)
- The uncertainty surrounding the outcome of Brexit will influence spending and recruitment
- Business rate increase has added to provider cost pressures
- Outsourcing to private sector boosted by new regulations
- Slight improvement in disposable income in 2016 partially offsets impact of PMI premium growth
-
- Figure 14: GDP per head at current market prices and real household disposable income per head, Q1 2012 Q4 2016, (£)
-
- Figure 15: GDP per head at current market prices and real household disposable income per head, q1 2012 - q4 2016, (£)
- Third IPT rise in two years adds further barrier to PMI market growth
- The record low unemployment rate should boost corporate PMI demand
-
- Figure 16: Total UK unemployment rate among people aged 16+, Q1 2012 Q4 2016, (%)
Independent Hospital and Clinics
-
- Key points
Market Size
-
- Key points
-
- Figure 17: UK expenditure on private acute healthcare, 2012-16, (£ million)
-
- Figure 18: UK Expenditure on private acute healthcare, 2012-16, (£ Million)
-
- Figure 19: Source: Analysis of the development of private acute hospitals in the UK, 2012-16, (number of hospitals)
-
- Figure 20: Analysis of the development of the number of beds in private acute hospitals in the UK, 2012-16, (number of beds)
-
- Figure 21: Development of the number of beds in private acute hospitals in the UK, 2012-16, (number of beds)
Market Segmentation
-
- Key points
- Expenditure
-
- Figure 22: Segmentation of private healthcare expenditure, by type, 2012-16, (£ million)
-
- Figure 23: Segmentation of private healthcare expenditure, by type of service, 2012-16, (£ million)
-
- Figure 24: Source segmentation for acute hospitals and clinics, by source, 2015 and 2016, (£ million and % share)
-
- Figure 25: Funding source segmentation for acute hospitals and clinics, by source, 2016, (% of total value)
- ‘Self-pay’ represents close to a fifth of total funding for private acute healthcare
Analysis by Type of Operator
-
-
- Figure 26: Analysis of private acute hospitals in the uk, by type of operator, 2016/17, (number of hospitals and beds, % of total)
-
- Figure 27: Analysis of private acute hospitals in the UK, by type of operator, 2016/17, (% of all acute hospitals and % of all acute beds)
- UK hospitals subject to new business rates that could impact healthcare provision
-
Regional Analysis
-
-
- Figure 28: Regional analysis of uk independent acute hospitals, 2016/17, (number of hospitals and beds)
-
- Figure 29: Regional analysis of UK independent acute hospitals, 2016/17, (% of hospitals and % of beds)
-
Market Share
-
- Key points
Hospital and Bed Share
-
-
- Figure 30: Major private acute hospital operators, 2016/2017, (number of hospitals, beds and average number of beds)
-
- Figure 31: Major private acute hospital operators, 2016/17, (number of hospitals and beds)
- Private companies looking to capitalise on excess demand for NHS services
- NHS Foundation Trusts report annual increase in private patient income
-
Company Profiles – Private Healthcare Industry
BMI Healthcare
-
-
- Figure 32: Financial analysis of bmi healthcare, 2012-16, (£ 000)
- Company strategy
-
Care UK
-
-
- Figure 33: Financial analysis of care UK, 2012-16, (£ million)
-
- Figure 34: Revenue breakdown of care uk, by division, 2015-16, (£ million)
- Company strategy
-
HCA International
-
-
- Figure 35: Financial analysis of HCA international, 2011-15, (£ 000)
- Company strategy
-
Roodlane Medical
-
-
- Figure 36: Analysis of Roodlane Medical, 2011-15, (£ 000)
- Company strategy
-
Nuffield Health
-
-
- Figure 37: Financial analysis of nuffield health, 2011-15, (£ 000)
- Company strategy
-
Ramsay Health Care UK Operations
-
-
- Figure 38: Financial analysis of Ramsay Health Care UK Operations, 2012-16, (£ 000)
- Company strategy
-
Spire Healthcare
-
-
- Figure 39: Financial analysis of Spire Healthcare Group, 2012-16, (£ Million)
- Company strategy
-
St Martins Healthcare
-
-
- Figure 40: Financial analysis of St Martins Healthcare, 2011-015, (£ 000)
- Company strategy
-
Independent Hospitals and Clinics Forecast
-
- Key points
- Lead up to Brexit could pose several challenges
- Extra capacity provided by the sector can help reduce rising NHS waiting times
- Private provider income faces further cost pressures due to new national tariff
- 5% growth per year expected to 2021
-
- Figure 41: Forecast UK expenditure on private acute healthcare, 2017-21, (£ million at 2016 prices)
-
- Figure 42: Forecast UK expenditure on Private Acute Healthcare, 2017-21, (£ million at 2016 prices)
Private Medical Insurance
-
- Key points
- PMI ownership and availability
-
- Figure 43: Ownership of PMI and related health products, August 2016, (% of respondents)
Market Trends
-
- Key points
- Medical inflation rates putting pressure on uptake level...
- ...with insurers offering discounts to attract new business
- Healthcare trusts emerging as an alternative to PMI
Market Size
-
- Key points
-
- Figure 44: Annual average PMI premium, by purchaser type, 2006-16, (£)
-
- Figure 45: Average annual PMI premium, by purchaser type, 2006-16, (£)
- Premium and subscription growth
-
- Figure 46: The UK Market for Private Medical Insurance, 2012-16, (£ million)
-
- Figure 47: Claim amounts incurred as a proportion of gross earned premiums, 2012-16, (£ million and % gross margin)
- Figure 48: PMI gross earned premiums, claims paid and gross margin, 2012-16, (£ million and % gross margin)
-
- Figure 49: The UK PMI market, 2012-16, by number of policyholders and people covered, (000)
-
- Figure 50: The UK PMI Market, 2012-2016, by Number of Policyholders and People Covered, (000)
Market Development
-
- CMA investigation findings has led to greater industry transparency
Market Segmentation
-
- Key points
- Corporate and group PMI
- Individual PMI
- Overall PMI market
-
- Figure 51: Segmentation of Private Medical Insurance, by policyholder type, 2012-16, (000 subscribers and £ million)
-
- Figure 52: Segmentation of Private Medical Insurance subscribers, 2012-16, by policyholder type, (000 subscribers)
- Figure 53: Segmentation of Private Medical Insurance value, 2012-16, by policyholder type, (£ million)
- Regional analysis
-
- Figure 54: Estimated regional PMI penetration and weekly spend on Private Medical Insurance premiums, (% of households in 2014-16 and average weekly spend on PMI premiums in 2012-14 and 2014-16)
-
- Figure 55: Estimated regional PMI penetration, 2014-16, (% of Households)
- Figure 56: Estimated weekly spend on PMI premiums, by region, 2014-16, (average weekly spend in £)
- Household expenditure by age group
-
- Figure 57: Average weekly household expenditure on medical insurance premiums, by age group, 2012-16, (£)
Industry Development
-
- Key points
- New register helps insurers locate and recognise new private providers
- Market share
-
- Figure 58: Estimated market share in the UK PMI market, by company, 2016, (% of total subscription revenue)
-
- Figure 59: Private medical insurance market share, by company, 2016, (% of total subscription revenue)
Company Profiles – Private Medical Insurance Industry
Aviva Healthcare UK
-
-
- Figure 60: Financial analysis of Aviva Plc, 2012-16, (£ Million)
- Company strategy
-
AXA PPP Healthcare
-
-
- Figure 61: Financial analysis of AXA PPP healthcare, 2011-15, (£ Million)
- Company strategy
-
Bupa
-
-
- Figure 62: Financial analysis of Bupa, 2012-16, (£ million)
-
- Figure 63: Divisional analysis of Bupa, 2012-16, (£ million)
- Company strategy
-
VitalityHealth (formerly PruHealth)
-
-
- Figure 64: Financial analysis of VitalityHealth (formerly PruHealth), 2012-16, (£000)
-
- Figure 65: Financial analysis of Vitality Health Insurance Limited (formerly Prudential Health Insurance Limited), 2012-16, (£ million)
- Company strategy
-
Western Provident Association
-
-
- Figure 66: Financial analysis of Western Provident Association, 2011-15, (£ 000)
- Company strategy
-
PMI Forecast
-
- Key points
- The doubling of IPT between the end of October 2015 and June 2017 has affected attempts to reduce premiums for customers
- Demographic trends could influence new PMI product design
- Corporate PMI will drive overall market growth
-
- Figure 67: UK market forecast for Private Medical Insurance subscription income, 2017-2021, (£ million at constant prices)
-
- Figure 68: UK market forecast for Private Medical Insurance subscription income, 2017-21, (£ million at constant prices)
- Figure 69: UK market forecast for Private Medical Insurance, by number of policy holders, 2017-21, (000s of subscribers)
-
- Figure 70: UK market forecast for Private Medical Insurance, 2017-2021, by number of policy holders, (000s of subscribers)
- New renewal rules could affect uptake
The Consumer – Last Private Healthcare Visit
-
- Key points
- Seven in every 10 consumers have never used a private healthcare service
-
- Figure 71: Private healthcare use, by time passed since last visit, April 2017, (% of respondents)
-
- Figure 72: Private healthcare use, by time passed since last visit, April 2017, (% of respondents)
- Age affects likelihood of recent private use
-
- Figure 73: Private healthcare use, by time passed since last visit and by age and gender, April 2017, (% of respondents)
-
- Figure 74: Private healthcare use by males, by time passed since last visit and by age, April 2017, (% of respondents)
-
- Figure 75: Private healthcare use by females, by time passed since last visit and by age, April 2017, (% of respondents)
- Young people most likely to consider use in the future
The Consumer – Factors Behind Using Private Healthcare
-
- Key points
- Avoiding NHS waiting lists tops factors behind service use
-
- Figure 76: Factors that would encourage use of private healthcare, April 2017, (% of Respondents)
-
- Figure 77: Factors that would encourage use of private healthcare, April 2017, (% of Respondents)
- Affordability key in convincing non-users to use a private service
-
- Figure 78: Factors that would encourage use of private healthcare, by time passed since last visit, April 2017, (% of Respondents)
- Appointment and operation flexibility of importance to individual/family PMI policyholders
-
- Figure 79: Factors that would encourage use of private healthcare, by payment type, April 2017, (% of respondents)
The Consumer – Method of Payment
-
- Key points
- PMI cover via employer pays for most healthcare
-
- Figure 80: Private healthcare payment method, April 2017, (% of respondents)
-
- Figure 81: Private Healthcare Payment Method, April 2017, (% of Respondents)
- Women use their own income to fund treatment
-
- Figure 82: Private healthcare payment method, by gender, april 2017, (% of respondents)
-
- Figure 83: Private healthcare payment method, by gender, April 2017, (% of respondents)
- Recent surge in use of employer-provider PMI
-
- Figure 84: Private healthcare use, by time of last visit and by payment method, April 2017, (% of respondents)
-
- Figure 85: Private healthcare use, by time passed since last visit and by payment method, April 2017, (% of respondents)
The Consumer – Health Insurance Provider
-
- Key points
- Bupa dominates health insurance coverage
-
- Figure 86: Private healthcare insurance provider, April 2017, (% of respondents)
-
- Figure 87: private healthcare insurance provider, April 2016, (% of respondents)
The Consumer – General Private Healthcare Opinion
-
- Key points
- Most people agree that treatment is too expensive
-
- Figure 88: Private healthcare opinion, April 2017, (% of respondents)
Further Sources and Contacts
-
- Trade associations
- Association of British Insurers (ABI)
- Association of Independent Healthcare Organisations (AIHO)
- Association of Medical Insurers and Intermediaries (AMII)
- British Healthcare Trades Association (BHTA)
- Federation of Independent Practitioner Organisations (FIPO)
- The Independent Doctors Federation (IDF)
- London Consultants’ Association (LCA)
- The Private Healthcare Information Network (PHIN)
- Trade magazines
- COVER
- Health Business
- Health Insurance & Protection
- Health Service Journal
- Hospital Times
- The Outlook
- The View
- Trade exhibitions
- COVER Protection and Health Summit 2017
- Health and Care Innovation Expo 2017
- Healthcare Efficiency Through Technology (HETT) Expo
- Hospital Innovations
- Independent Healthcare Summit 2017
- Medtec Ireland
- Safety & Health Expo
- The Private Healthcare Summit 2017
- The Procurement Event for Health
Back to top