Market Research Logo

Private Healthcare - UK - July 2015

Private Healthcare - UK - July 2015

“With the NHS under increasingly intense budgetary pressure, NHS hospitals may increase their private patient capacity over the coming years to balance the books, unless necessary government funding is provided. Public concerns over the increased privatisation of the NHS, following the implementation of the ‘private sector-friendly’ Health and Social Care Act and the slight increase in NHS funds directed to private providers, has to be carefully managed by the government.”

– Lewis Cone, B2B Analyst

This report will explore the following key questions regarding the private healthcare market in the UK:

What are the key determinants driving the industry?
Was the industry affected by the financial crisis and the slow recovery? If so, how has it developed and changed since?
How have government schemes influenced market demand and supply?
How has the provision of healthcare services changed over recent times? Has it helped private sector provision?
What does the future hold for private healthcare services?


EXECUTIVE SUMMARY
Market size
Figure 1: UK Expenditure on Private Acute Healthcare, 2010-14, (£ Million)
Figure 2: The UK PMI Market, 2010-2014, by Number of Policyholders and People Covered, (000s)
Market trends
Market factors
Open referrals have improved customer choice and changed cost structures
The Health and Social Care act has led to favourable conditions for private healthcare
The launch of Fit for Work could increase medical insurance within the workplace
The NHS funding crisis and its potential restructuring will indirectly affect the industry
Industry structure
Consumer
Forecast
Figure 3: Forecast UK Expenditure on Private Acute Healthcare, 2015-2019, (£ Million at 2014 prices)
The PMI market is expected to develop at a constant rate over the next five years
Figure 4: UK Market Forecast for Private Medical Insurance Subscription Income, 2015-2019, (£ Million
at 2014 prices)
What we think
KEY INSIGHTS
How has the latest Health and Social Care act impacted the provision of healthcare?
How has the industry reacted to the CMA’s review on the market and its subsequent
recommendations?
What are the key drivers for market development?
What has been the impact of consolidation in the industry?
How will the private sector’s role in healthcare provision change over the coming years?
How are companies innovating to drive growth?
INTRODUCTION
Definitions
Methodology
Abbreviations
Market positioning
UK ECONOMY
Key points
Overview
Figure 5: UK GDP, 2004-2015 Q1, (% Quarterly Growth and GDP in £ Billion)
Figure 6: Quarters after GDP Peak, 1979, 1990 and 2008, (Number of Quarters and GDP as % of Pre-
Downturn Peak)
Inflation
Interest rates
House prices
Consumer spending
Manufacturing
Business investment
Imports
Exports
MARKET FACTORS
Key points
The economy
Corporate expenditure
Fiscal incentives
Employment trends
Healthcare environment
INDEPENDENT HOSPITAL AND CLINICS
Key points
MARKET SIZE
Key points
Figure 7: UK Expenditure on Private Acute Healthcare, 2010-14, (£ Million)
Figure 8: UK Expenditure on Private Acute Healthcare, 2010-14, (£ Million)
Figure 9: Analysis of the Development of Private Acute Hospitals in the UK, 2010-14, (Number of
Hospitals)
Figure 10: Analysis of the Development of the Number of Beds in Private Acute Hospitals in the UK,
2010-14, (Number of Beds)
Figure 11: Development of the Number of Beds in Private Acute Hospitals in the UK, 2010-14, (Number
of Beds)
MARKET SEGMENTATION
Key points
Expenditure
Figure 12: Segmentation of Private Healthcare Expenditure, by Type, 2010-2014, (£ Million)
Figure 13: Segmentation of Private Healthcare Expenditure, by Type of Service, 2010-2014, (£ Million)
Figure 14: Funding Source Segmentation for Acute Hospitals and Clinics, by Source, 2013 and 2014, (£
Million and % Share)
Figure 15: Funding Source Segmentation for Acute Hospitals and Clinics, by Source, 2014, (% of Total
Value)
Analysis by type of operator
Figure 16: Analysis of Private Acute Hospitals in the UK, by Type of Operator, 2014/15, (Number of
Hospitals and Beds, % of Total)
Figure 17: Analysis of Private Acute Hospitals in the UK, by Type of Operator, 2014/15, (% of All Acute
Hospitals and % of All Acute Beds)
Regional analysis
Figure 18: Regional Analysis of UK Independent Acute Hospitals, 2014/15, (Number of Hospitals and
Beds)
Figure 19: Regional Analysis of UK Independent Acute Hospitals, 2014/15, (% of Hospitals and % of
Beds)
Market share
Figure 20: Major Private Acute Hospital Operators, 2014/2015, (Number of Hospitals, Beds and Average
Number of Beds)
Figure 21: Major Private Acute Hospital Operators, 2014/15, (Number of Hospitals and Average Number
of Beds)
INDEPENDENT HOSPITALS AND CLINICS FORECAST
Key points
Figure 22: Forecast UK Expenditure on Private Acute Healthcare, 2015-2019, (£ Million at 2014 prices)
Figure 23: Forecast UK Expenditure on Private Acute Healthcare, 2015-2019, (£ Million at 2014 prices)
COMPANY PROFILES – PRIVATE HEALTHCARE INDUSTRY
BMI HEALTHCARE
Figure 24: Financial Analysis of BMI Healthcare, 2009-13, (£ 000)
Company outlook
CARE UK
Figure 25: Financial Analysis of Care UK, 2010-14, (£ Million)
Figure 26: Revenue breakdown of Care UK, by division, 2013-14, (£ Million)
Company outlook
HCA INTERNATIONAL
Figure 27: Financial Analysis of HCA International, 2009-2013, (£ 000)
Company outlook
Figure 28: Financial Analysis of Roodlane Medical, 2009-2013, (£ 000)
Company outlook
NUFFIELD HEALTH
Figure 29: Financial Analysis of Nuffield Health, 2009-13, (£ 000)
Company outlook
RAMSAY HEALTH CARE UK OPERATIONS
Figure 30: Financial Analysis of Ramsay Health Care UK Operations, 2010-14, (£ 000)
Company outlook
SPIRE HEALTHCARE
Figure 31: Financial Analysis of Spire Healthcare, 2009-13, (£ 000)
Company outlook
ST MARTINS HEALTHCARE
Figure 32: Financial Analysis of St Martins Healthcare, 2009-2013, (£ 000)
Company outlook
PRIVATE MEDICAL INSURANCE
Key points
PMI Ownership and Availability
Figure 33: Ownership of PMI and other health and protection products, July 2014, (% of Respondents)
Figure 34: Proportion of employers offering selected benefits as core, March 2014, (% of Respondents)
Market trends
MARKET SIZE
Figure 35: Average annual PMI premium, by Purchaser Type, 2005-14, (£)
Figure 36: Average Annual PMI premium, by Purchaser Type, 2005-14, (£)
Premium and subscription growth
Figure 37: The UK Market for Private Medical Insurance, 2010-14, (£ Million)
Figure 38: Claim amounts incurred as a proportion of gross earned premiums, 2010-14, (£ Million and %
Gross Margin)
Figure 39: PMI Gross Earned Premiums, Claims Paid and Gross Margin, 2010-2014, (£ Million and %
Gross Margin)
Figure 40: The UK PMI Market, 2010-2014, by Number of Policyholders and People Covered, (000)
Figure 41: The UK PMI Market, 2010-2014, by Number of Policyholders and People Covered, (000)
Market development
MARKET SEGMENTATION
Key points
Figure 42: Segmentation of Private Medical Insurance, by policyholder type, 2010-14, (000 Subscribers
and £ Million)
Figure 43: Segmentation of Private Medical Insurance Subscribers, 2010-2014, by Policyholder Type,
(000 Subscribers)
Figure 44: Segmentation of Private Medical Insurance Value, 2010-2014, by Market Value, (£ Million)
Figure 45: Estimated Geographic Penetration of Private Medical Insurance, 2011-13, (% of Households
and Average Weekly Spend on PMI)
Figure 46: Estimated Geographic Penetration of Private Medical Insurance, by Region, 2011-2013, (% of
Households)
Figure 47: Estimated Geographic Penetration of Private Medical Insurance, by Region, 2011-2013,
(Average Weekly Spend)
Figure 48: Average Weekly Household Expenditure on Medical Insurance Premiums, by Age Group,
2011-13, (£)
Market shares
Figure 49: Estimated Market Share in the UK PMI Market, by Company, 2014, (% of Total Subscription
Revenue)
Figure 50: Private Medical Insurance Market Share, by Company, 2014 (% of Total Subscription
Revenue)
PMI FORECAST
Key points
Figure 51: UK Market Forecast for Private Medical Insurance Subscription Income, 2015-2019, (£ Million
at 2014 prices)
Figure 52: UK Market Forecast for Private Medical Insurance Subscription Income, 2015-2019, (£ Million
at 2014 prices)
Figure 53: UK Market Forecast for Private Medical Insurance, by Number of Policy Holders, 2015-2019,
(000s of Subscribers)
Figure 54: UK Market Forecast for Private Medical Insurance, 2015-2019, by Number of Policy Holders,
(000s of Subscribers)
COMPANY PROFILES – PRIVATE MEDICAL INSURANCE INDUSTRY
AVIVA HEALTHCARE UK
Figure 55: Financial Analysis of Aviva Plc, 2010-14, (£ Million)
Company outlook
AXA PPP HEALTHCARE
Figure 56: Financial Analysis of AXA PPP Healthcare, 2010-14, (£ Million)
Company outlook
BUPA
Figure 57: Financial Analysis of Bupa, 2010-14, (£ Million)
Figure 58: Divisional Analysis of Bupa, 2011-14, (£ Million)
Company outlook
PRUHEALTH
Figure 59: Financial Analysis of VitalityHealth (formerly PruHealth), 2010-14, (£ Million)
Figure 60: Financial Analysis of Vitality Health Insurance Limited (formerly Prudential Health Insurance
Limited), 2010-14, (£ Million)
Company outlook
SIMPLYHEALTH
Figure 61: Financial analysis of Simplyhealth Access, 2009-13, (£ Million)
Company outlook
WESTERN PROVIDENT ASSOCIATION
Figure 62: Financial analysis of Western Provident Association, 2009-13, (£ 000)
Company outlook
THE CONSUMER – LAST PRIVATE HEALTHCARE VISIT
Key points
Nearly 70% of consumers have never used a private healthcare service
Figure 63: Private Healthcare Use, by Time Passed since Last Visit, April 2015, (% of Respondents)
Figure 64: Private Healthcare Use, by Time Passed since Last Visit, April 2015, (% of Respondents)
The middle aged are least likely to have used a private healthcare service
Figure 65: Private Healthcare Use, by Time of Last Visit and by Age and Gender, April 2015, (% of
Respondents)
Figure 66: Private Healthcare Use by Males, by Time of Last Visit and by Age, April 2015, (% of
Respondents)
Figure 67: Private Healthcare Use by Females, by Time of Last Visit and by Age, April 2015, (% of
Respondents)
THE CONSUMER – USAGE FACTORS
Key points
Private services are first in queue
Figure 68: Private Healthcare Usage Factors, April 2015, (% of Respondents)
Figure 69: Private Healthcare Usage Factors, by Most Important Factor, April 2015, (% of Respondents)
Consumers willing to pay for quicker treatment
Figure 70: Private Healthcare Usage Factors, by Age, April 2015, (% of Respondents)
Figure 71: Private Healthcare Usage Factors, by Most Important Factor and by Age, April 2015, (% of
Respondents)
THE CONSUMER – USAGE BARRIERS
Key points
Initial treatment costs provide main barrier to demand
Figure 72: Private Healthcare Service Barriers, April 2015, (% of Respondents)
Figure 73: Private Healthcare Service Barriers, by Most Significant Barrier, April 2015, (% of
Respondents)
Consumers satisfied with NHS care and cost
Figure 74: Private Healthcare Deterrents, by Age, April 2015, (% of Respondents)
Figure 75: Private Healthcare Deterrents, by Most Significant Barrier and by Age, April 2015, (% of
Respondents)
THE CONSUMER – HEALTH INSURANCE COVER
Key points
Market in need of an injection
Figure 76: Private Health Insurance Coverage, April 2015, (% of Respondents)
Figure 77: Private Health Insurance Coverage, April 2015, (% of Respondents)
Live fast, insure young
Figure 78: Private Health Insurance Coverage, by Age and Gender, April 2015, (% of Respondents)
Figure 79: Private Insurance Coverage of Males, by Age, April 2015, (% of Respondents)
Figure 80: Private Insurance Coverage of Females, by Age, April 2015, (% of Respondents)
THE CONSUMER – HEALTH INSURANCE PURCHASE FACTORS
Key points
Access to additional services drives demand
Figure 81: Private Health Insurance Purchase Factors, April 2015, (% of Respondents)
Figure 82: Private Health Insurance Purchase Factors, April 2015, (% of Respondents)
Purchase factors change according to payment method
Figure 83: Private Health Insurance Purchase Factors, by PMI payment method, April 2015, (% of
Respondents)
Figure 84: Private Health Insurance Purchase Factors, by PMI payment method, April 2015, (% of
Respondents)
FURTHER SOURCES AND CONTACTS
Trade associations
Association of British Insurers
Association of Independent Healthcare Organisations (AIHO)
Association of Medical Insurers and Intermediaries (AMII)
British Healthcare Trades Association (BHTA)
English Community Care Association
Trade magazines
Caring UK
Community Care
Cover
Health Business
Health Insurance & Protection
Health Service Journal
Hospital Bulletin
Hospital Management/Hospital Services/Infection Control
Inside Private Health
Trade exhibitions
Health and Care Innovation Expo 2015
Healthcare Efficiency Through Technology (HETT) Expo
HEI Birmingham/Bristol/Dublin/London/Manchester 2015
The International Exhibition for European Medical Device Manufacturers
Safety & Health Expo
The Procurement Event for Health
UK B2B
Trade research
Informal
Formal
Desk research
Consumer research
Sampling and weighting
Definitions
Qualitative Research
Further Analysis
Statistical forecasting

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook

Share this report