The private healthcare industry is booming, and with the fallout of the NHS pushing people into the private sector, there is no sign of this trend slowing down anytime soon.
Speaking to City A.M., Bob Andrews, CEO of Benenden Health – a not-for-profit mutual society in the UK providing private medical cover – stated that “2023 has been a significant year not only for Benenden Health, but for the entire private health industry.”
The York-headquartered Benenden Health said that in 2023, a total of 101,420 new members joined, a 50 per cent increase year over year.
Data from the Private Healthcare Information Network (PHIN) published earlier this month stated that there was a 7 per cent increase in private hospital admissions in the first three quarters compared to 2022.
Just this week, it was reported that an independent consultancy Broadstone expects the private health services to see over 900,000 private admissions in 2024.
The demand is across all sides of the private healthcare sector. Dr Charles Levinson, medical director at Doctorcall told City A.M., he has seen “a significant growth in people joining our private GP membership” as he reported that membership increased three-fold in the last 12 months.
As David Furness, policy director at the Independent Healthcare Providers Network (IHPN), outlined, “With NHS waiting lists at record levels, it’s not surprising that more and more people are choosing to use private healthcare, either paying by their own means or through insurance.”
The main reason for this rise always comes back to the problems the NHS faces. The public healthcare system is going through a turbulent time, with its long, endless waiting lists, strike actions and underfunding.
Meanwhile, the Resolution Foundation reported last week, that the UK is suffering from the most sustained rise in long-term sickness since the 1990s, a trend which started even before the pandemic.
Additionally, City businesses are increasingly offering private healthcare insurance as an employee benefit when trying to recruit new staff, recruiters and insurers told City A.M. last week.
As Dr Levinson noted: “There has been an increased demand for corporate health services such as flu vaccination and significant interest in COVID vaccinations as well as on-site GP services.” He pointed out that “companies are increasingly alert to the impact of employee health on productivity and ultimately profitability.”
The issues with the NHS are also shining a light onto the private sector for Shadow health secretary Wes Streeting, who sees it as a saviour grace for the public sector—for short-term relief.
Speaking to the FT last Sunday, Streeting explained that he wants the NHS to lean on the private health sector in the short term so it can drastically reduce its dependence in the future.
However, on the back of Streeting’s comments, Adrian Ramsay, co-leader of the Green Party of England and Wales, told City A.M. that “Wes Streeting has accepted large donations from private health companies, so it is no surprise he wants to ‘lean on them’ in return.”
“The Green Party has never had any truck with the profit motive in health care. What the NHS desperately needs is billions in investment and health workers to be paid properly. We’ll tax the super-rich billionaires and millionaires to provide the funds to fix the NHS,” Ramsay added.
Whoever’s in power following the next General Election, James Daley, managing director at Fairer Finance said the growth in private healthcare “is likely to continue, albeit from a relatively small base, regardless of a potential change in government at the next General Election as there’s just not enough flexibility in the public finances to make any big difference and impact on the NHS.”
However, with all this demand, is the UK public ready for the private market to handle its health queries?
As Daley stated, it can be a “dangerous moment for consumers – most of whom have never bought this insurance before and are unlikely to understand the nuances of the coverage offered.”
But as Dale Le Page, product manager at Howden Life and Health, explains, “costs vary based on factors like age, coverage, postcode and insurer, but can be tailored to suit your specific budget and medical history.”
As he went on to add, people can start with a “basic treatment policy and build it up to be fully comprehensive.” For a basic policy, they “typically cover the cost of private treatment for those who are happy to be diagnosed by the NHS.”
“This means that if you have a health concern, you go to your NHS GP or other NHS service for a diagnosis. Once you’ve been diagnosed, you can then use your health insurance to access private treatment,” he outlined.”
He said if people like to include private diagnosis in their coverage, they can look at comprehensive health insurance. Le Page’s example of a 50-year-old couple can expect to pay around £63 per month for basic coverage, while comprehensive policies may cost approximately £109 per month. Alternatively, a 70-year-old couple might pay £129 for basic coverage and £251 for comprehensive.
But like all insurance policies, terms and conditions apply, as with Le Page’s example above, the prices are based on an SW1 postcode, a £1000 excess for two, and non-smokers who are joining on a moratorium underwriting basis with a guided hospital list.
Daley also pointed out that “pre-existing health conditions are typically not covered”, which means that a new customer won’t benefit from private medical insurance for the condition, which might have prompted them to explore private healthcare in the first place.