Analysis of the latest quarterly Private Healthcare Information Network (PHIN) data1 demonstrates the increasingly prominent role employers are playing in boosting growth in the private market and reducing pressure on the NHS’ stretched resources.
The research from Broadstone, a leading independent financial services consultancy, shows that treatments funded through Private Medical Insurance (PMI) have reached their second consecutive record quarter with Q4 2023 and Q1 2024 reaching 161,000 and 168,000 admissions respectively.
The insured admissions in the latest quarter reveal a 10,000 (6%) increase since the same period in 2023 (158,000), and a 20,000 (14%) rise from the 148,000 insured admissions in Q1 2019.
Insured admissions levels are now at 114% of pre-pandemic levels, up seven percentage points from the same period last year (107%), while ‘self-pay’ admissions have plateaued. In fact, there were nearly 100,000 more admissions paid for by private medical insurance (168,000) than by those ‘self-paying’ (70,000) in the first three months of the year. This is the biggest gap in the payment methods since before the Covid pandemic (Q4 2019).
Brett Hill, Head of Health & Protection at Broadstone, commented: “Corporate-funded medical insurance has emerged as a key driver behind the private health sector’s remarkable growth in recent years.
“As the NHS grapples with a 7.62 million patient backlog and struggles to meet the healthcare needs of the UK population, private healthcare is increasingly becoming the go-to option for corporates seeking timely screenings, diagnoses, and treatments for their workforce.
“To safeguard employee well-being and protect their bottom line from the costs of absenteeism and reduced productivity, many employers are maximising coverage of cost-effective PMI schemes.
“However, this surge in PMI coverage, coupled with the rising complexity of medical conditions, has led to higher claim costs, with employers feeling the pressure of escalating PMI premiums. Preventative programs that can spot issues earlier can help bring down the cost of healthcare packages by minimising treatments for more complex, expensive health conditions.”
