LaingBuisson has published the tenth edition of their Private Acute Healthcare UK Market Report 

Highlights include: 

  • Overall market value for the private acute healthcare sector is estimated at £13.8 billion – with independent acute hospitals accounting for approximately £7.2 billion. The independent clinics and privately practising doctors market segment is valued at £5.7 billion
  • The independent acute hospitals market grew 6.9% over the year – well below the levels seen since 2021
  • The market cooldown has been driven by out-of-pocket spending growth grinding to a halt (the ‘self-pay’ market) – LaingBuisson estimates growth of less than 0.1% in this segment over the year
  • Revenues from private medical cover have grown 10% – down on recent years – but remaining strong and indicating that people are continuing to make use of private healthcare cover packages to obtain healthcare when they need it
  • NHS-funded care carried out by independent acute hospitals has increased to £2.2 billion – 31% of total revenues for independent acute hospitals
  • Ophthalmology is driving a large volume of all NHS-funded activity into the independent sector – with revenues among the leading chains growing rapidly
  • The combined reported revenues of the top five leading ophthalmology providers in 2024 was £618.9 million. This represents combined revenue growth of +£406.2 million since 2021 (191% growth over the period)
  • NHS revenue from private patients is valued at £852 million – and is estimated to have grown 13.4% in real terms

The sustained growth in the private healthcare market appears to be showing signs of cooling despite NHS waiting lists remaining at near-record levels, as consumer spending stalls against a backdrop of growing economic uncertainty, according to research published today by LaingBuisson.

LaingBuisson’s latest annual Private Acute Healthcare UK Market Report values the total UK market at £13.8 billion in 2024.(1)

Independent acute hospitals remain the largest section of the market at £7.2 billion (up nearly £468 million on 2023). However, after three years where nominal growth ranged from 9.8% – 13.7% year-on-year, market value growth has fallen back to 6.9% in 2024 (4.2% in real terms).

Revenues from health insurance policies and the NHS have both fallen back, but the primary reason for the market cooldown has been the plateauing of revenues from those paying for care out of their own pocket (self-funders). This market boomed post-pandemic but has fallen successively year-on-year since 2021. In the most recent year it is estimated to have grown by less than 0.1%. Self-pay represents nearly a quarter of the revenue generated by independent acute hospitals, resulting in a significant drag on total growth.

Against a backdrop of near-historic high waiting lists, this suggests it was wider economic uncertainties rather than improved access to NHS care, which has caused individuals to cut back spending on higher-value private healthcare treatments.

At the same time, growth has continued in the independent clinics market – with revenues of independent clinics and privately practising doctors estimated at £5.7 billion in 2024. (2)

Ophthalmology has been a major growth area in the clinics market. Nearly half of all NHS-funded care carried out by the independent sector is in this speciality, with the vast majority being cataract surgery. As major ophthalmology chains have expanded across the UK to meet demand, revenues have skyrocketed. LaingBuisson analysis shows that revenues across the five leading chains in 2024 was £618.9 million.(3) This represents combined revenue growth of +£406.2 million since 2021 (191% growth over the period).

NHS Private Patient Units also grew strongly in 2024, growing 13% in real terms to reach an estimated total of £852 million. This demonstrates the ability of the NHS to raise revenue from private paying patients. However, in reality this revenue raising ability continues to be highly concentrated around London and affluent regions in the south of England.

Report author, Tim Read said:

“LaingBuisson’s analysis suggests that the private acute healthcare market has continued to grow but there is evidence that a cool down is in effect. Sustaining growth levels experienced in the immediate aftermath of the pandemic was always unrealistic but there may be some concern that revenue growth from the self-pay segment has plateaued despite continuing severe challenges in accessing NHS services.

“The unwinding of pent-up demand that could not be met in the NHS is likely to account for some of this slow down but it is also likely to reflect that wider concerns over the economy and the impact of the rising cost of everyday living means that people are choosing to rely on the NHS – even if it means a delay in treatment – for more high cost surgical options. Whilst data is more limited, wider sector feedback suggests that out-of-pocket spending on lower cost, diagnostic services have remained relatively robust.”

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