Healthcare property giant Assura has called for investment in the sector and said that the UK is a turning point in its delivery of healthcare alongside its half-year results.
Chief executive Jonathan Murphy said that the need for investment in healthcare was “starkly outlined” by the recent Lord Darzi report, which found the current primary care estate to be “plainly not fit for purpose”.
“We are at an inflexion point in the UK, with structural changes to the delivery of healthcare services, the Government targeting preventative services in a community setting, and rising demand for private providers,” Murphy added.
The National Health Service (NHS) has been under pressure to reverse long waiting times amid a period of chaos which has sparked much public anger.
Public satisfaction with the NHS has fallen to the lowest levels since records began, according to the latest edition of the British Social Attitudes Survey (BSA), released a couple weeks ago.
As a result, the private health services sector is expecting to see over 900,000 private admissions in 2024, as the surge in demand for the private healthcare continues.
Murphy said Assura was “well-positioned” to meet private healthcare demand.
In August, the group acquired a £500m private hospital portfolio from Canadian group Northwest Healthcare Properties.
The takeover included 14 locations averaging 36 registered beds per hospital and is predominantly based in London, accounting for 64 per cent of the assets.
Its portfolio now stands at 625 properties with an annualised rent roll of £179.1m, from £150.6m in March 2024.
Assura also announced a £250m joint venture with pension scheme USS, which has “diversified funding” it said.
“The purchase of 14 UK private hospitals [from Northwest Healthcare] materially increases our exposure to the structurally supported private healthcare market as we continue to diversify our offering to meet changing UK healthcare demands.
“The joint venture with USS, the UK’s leading private pension scheme, provides a new source of funding and opportunities to recycle capital into our growth pipeline,” Assura said.