Persistence Market Research forecasts the U.K. private healthcare market to grow from more than US$ 11,600 Mn in 2016 to over US$ 14,000 Mn by 2025 end. This represents a CAGR of 2.8% over the forecast period.
A rising trend of self-pay is boosting the U.K. private healthcare market
The increased interest of patients to self-pay for various ailments in recent times is expected to advance the private healthcare market in the U.K. Moreover, private hospitals are coming up with package price and fixed consultant fees for certain types of treatment and after care, which allows patients to choose best offerings in the market. Private hospitals give choices to patients to take this self-pay route for non-urgent operations. Increase in self-pay elective procedures is driven by growing NHS waiting list and growth is supported by packaged pricing and marketing initiatives of private hospitals in the U.K.
Increasing e-Referrals are supporting the growth of the U.K. private healthcare market
Of late, the private healthcare sector is witnessing a strong growth in NHS GP referrals owing to long NHS waiting list, which is increasingly turning patients to the private sector. The e-Referrals system allows patients to choose the time, date, and hospital/clinics for the required treatment, thus helping patients make informed decisions. For instance in 2016, BMI Healthcare, a private healthcare provider’s NHS case load increased by 6.6% overall on a Y-o-Y basis and the e-Referrals caseload (through which patients choose and book their preferred facility) increased by 9.5% on a Y-o-Y basis. NHS admissions are expected to grow at current rates as patients and GPs are increasingly opting for the private sector in the e-Referral process.
A lull in growth of Private Medical Insurance (PMI) may act as a restraint in the U.K. private healthcare market
Private Medical Insurance (PMI) is the largest payer of healthcare services in the U.K. private healthcare market. The ongoing decline in medical cover pay-outs to hospitals and clinics over the past five years and decline in individual purchase of private medical insurance are expected to hinder the private healthcare market over the medium term. Moreover, decline in PMI funded inpatient and day case caseload owing to ongoing funder cost management and additional premium tax are expected to impact the private healthcare market negatively. Apart from the aforementioned factors, relatively few companies offer continued support for private medical insurance beyond retirement age, and individual premiums rise sharply with age and medical history. The people who benefit from private medical insurance are thus concentrated in the 30- to 64-year age group with relatively few people covered past retirement age, which may affect the market negatively over the forecast period.
Increasing NHS waiting time presents a huge opportunity in the U.K. private healthcare market
Increasing waiting times for various treatments and procedures at NHS is prompting patients to adopt private healthcare services in the U.K. The rising waiting time beyond the 18 week target would provide significant opportunities for private healthcare providers to bridge the ongoing gap between NHS targets and infrastructure. According to NHS England, the number of patients not receiving treatment within 18 weeks of referral has gone up by 100,000 since January 2016. For instance, analysis by the Royal College of Surgeons found that over the past year an average of 193,406 people a month did not get surgery within 18 weeks of being referred. Moreover, the number of patients waiting for operations is expected to increase significantly in the near future, which is expected to create growth opportunities for private healthcare providers.
U.K. Private Healthcare Market Attractiveness Analysis by Application Type, 2017–2025
The Others segment dominated the U.K. private healthcare market by application in terms of revenue in 2017, and this trend is projected to grow throughout the forecast period. Others segment is the most attractive segment, with attractiveness index of 2.7 over the forecast period. Others segment is estimated to account for 35% market value share in 2017. Trauma and orthopedics segment is expected to be the second most lucrative segment in the U.K. private healthcare market by application, with attractiveness index of 2.0 during the forecast period. Trauma and orthopedics segment is estimated to account for 30.7% market value share in 2017.
Rising overseas patient visits fueling the U.K. private healthcare market
The growing confidence among foreign patients regarding the private healthcare sector in the U.K. is expected to boost the market over the forecast period. To address the growing needs of foreign patients, several large London based hospitals have increased intensive care facilities. Moreover, government initiatives like upfront charges for NHS foreign patients and long NHS waiting times are expected to prompt foreign patients to avail private healthcare services in the U.K. Growth is being driven by an increase in self-paying overseas patients, particularly from Middle Eastern countries, as London builds on its reputation as a global center for healthcare excellence.
Persistence Market Research presents a one of its kind and a comprehensive report on the U.K. private healthcare market titled ‘Private Healthcare Market: U.K. Industry Analysis 2012 – 2016 and Forecast 2017 – 2025’. The report starts with an executive summary that presents key findings related to the U.K. private healthcare market such as pertinent market numbers and the CAGR of this market from 2017 till 2025, and market forecast numbers related to the various segments. The executive summary also lists the various drivers, restraints and trends operating in the U.K. private healthcare market that gives a cursory overview of the factors influencing the growth of this market. Also, a list of prominent market players operating in the U.K. private healthcare market is given in the executive summary. The executive summary also lists the U.K. private healthcare market split by service type, by application and by end user for the year 2017.
At the end of the executive summary, there is a concise and yet informative Persistence Market Research analysis on the overall market approach of the prominent players operating in the U.K. private healthcare market along with information about target application type and target service type that is most attractive in this market. Also, differentiating strategies of the prominent market players is given so that the report audience have an idea of how the various competitors are maintaining their pole position in this competitive market. After the executive summary, there is a section on market introduction which covers the definitions of the U.K. private healthcare market and also explains the various entities operating in this market. This gives a precise idea what this market is all about and where all its applications are useful. After this, there is a section of the report devoted to study the market taxonomy of the U.K. private healthcare market.
By Service Type
By End User
After the market taxonomy, there is a section of the report devoted to the U.K. healthcare system overview that explains in detail the various aspects of the U.K. healthcare system. After this, there is a valuable section of the report explaining the U.K. private healthcare market pricing scenario. Thereafter, there is a section on the referrals market share of prominent key players in the U.K. private healthcare market for the year 2016. After this, the macroeconomic factors affecting the private healthcare market in the U.K. are discussed in detail. The subsequent sections of the report detail the U.K. private healthcare market by service type, by application and by end user. In these sections, important market forecast figures related to Basis Point Share analysis, year-on-year growth analysis, absolute dollar opportunity and market attractiveness analysis are given. After these sections, there is a section of the report devoted to the market dynamics of the U.K. private healthcare market. In this section, the drivers, restraints, opportunities and trends operating in the U.K. private healthcare market are discussed in detail and all the factors that encourage the growth of the private healthcare market in the U.K. as well as hamper the growth of this market are listed and a detailed explanation for the same is provided. This is an important section of the report as it gives a sense of direction to the report audience about where the private healthcare market in the U.K. is headed towards in terms of market dynamics and trends.
Last but not the least, there is an entire section of the report devoted to the competition landscape of the U.K. private healthcare market. This competition landscape gives a dashboard view of the key companies operating in the U.K. private healthcare market along with their important information and broad strategy adopted to stay as leaders in the U.K. private healthcare market. Each of the leading companies is also profiled individually and important information about the company such as company details, company description, product portfolio along with key developments concerning the company and strategic analysis is presented. A SWOT analysis of each leading market player is also presented in this section. This competition landscape is the most important section of the report as it imparts a deep understanding of the leading companies operating in the U.K. private healthcare market and is valuable for new entrants in the field to get a learning about how the companies are leading this lucrative market and also for established market players to get a better understanding about their competitors.
Overall market size has been analyzed through historical data, primary responses, and public domain data. Revenue of companies in the U.K. private healthcare market has been benchmarked to ascertain the market size for the base year. Macroeconomic indicators such as GDP and industry growth have been considered to forecast the market size over the forecast period. The historical growth trend of end-use industries, market participants’ performance, as well as the present macro-economic outlook has been taken into consideration for estimating the overall market trend forecast. This data is then validated using the triangulation method and is extensively scrutinized using advanced tools to garner quantitative and qualitative insights into the U.K. private healthcare market.