The rise of private healthcare is driven by long NHS waiting times
The UK market reached a record high of £12.4 billion last year, with the NHS spending nearly £3.5 billion on treatments to reduce the waiting list.
The value of the UK’s private healthcare market reached a record £12.4 billion last year. This increase was driven by long waiting lists in the NHS, which made more people seek private care. The NHS also paid for nearly £3.5 billion in private procedures to help reduce the backlog of care.
As private medical insurance became more popular, total revenue in the independent healthcare sector hit an all-time high, based on 2003 prices. The amount spent on services in hospitals, clinics, and by private doctors—like cataract surgery, knee surgery, and MRI scans—was £1 billion more than in 2022, according to a report by the health data provider LaingBuisson.
More patients chose private care last year, as NHS waiting lists reached a peak of 7.77 million in September, up from 4.57 million at the end of 2019. More people are now taking out private medical insurance for treatment, while fewer are paying for care themselves.
To help reduce the wait times, the NHS paid more money to private hospitals for treatments. Last year, it spent £2.1 billion in private hospitals, which is an increase from £1.9 billion in 2022. This spending made up almost a third of the private hospitals’ total earnings, compared to just 10% two decades ago. The NHS also spent £1.5 billion at private clinics.
Out of 1.3 million procedures done by private hospitals and clinics in 2023, nearly 445,000 were paid for by the NHS.
Cataract surgery is the most common procedure done privately, costing about £2,000 for those paying out of pocket, but less for NHS patients. Other common private procedures include chemotherapy, upper gastrointestinal endoscopies, colonoscopies, hip replacements, knee surgeries, and hernia repairs.
Health Secretary Wes Streeting wants to use private hospitals to help reduce the NHS’s backlog of care. He mentioned this week that delays in the NHS could be very harmful to some patients, while Keir Starmer emphasized the importance of using AI and technology.
Private hospitals made £6.7 billion last year, which is up from nearly £6 billion the year before. The five biggest companies earned three-quarters of this money. The largest two are Spire Healthcare and Circle Health Group, followed by HCA Healthcare UK, Nuffield Health, and Ramsay Health Care UK. The top four hospital groups each have an annual income of over £1 billion.
Private clinics and doctors made £4.9 billion in 2023, while the NHS earned £700 million by treating non-NHS patients and international visitors, known as “embassy patients,” mainly at private patient units in London, like the Royal Marsden hospital.
Tim Read, one of the report’s authors, said that more people are looking for alternatives instead of waiting for treatment on the NHS. Independent hospitals are seeing a rise in patients using their health insurance, and low-cost clinics for treatments like cataract surgery or diagnostic scans are becoming common in towns across England, not just in wealthier areas.
The two areas with the longest NHS waiting times—eye care and orthopedic surgery—are seeing a big increase in private healthcare. The NHS is now paying private eye clinics to do more cataract surgeries than it performs itself. Since 2020, the number of eye clinics has grown, with companies like Newmedica, SpaMedica, CHEC, and Optegra opening more locations. However, some doctors say that the rise in cataract surgeries is reducing NHS funds for treating more serious conditions that can cause blindness.
David Hare, who leads the Independent Healthcare Providers Network, said that private healthcare is becoming important to more people, making “going private” the new normal.
Published: 25th October 2024
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