Private Healthcare

Market Report 2008 Nineteenth Edition June 2008

Publication Date	June 2008
Publisher	Key Note
Product Type	Report
Pages	143
ISBN Number	not applicable
Product Code	KEY00072

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Summary

The total UK market for private healthcare was worth 24.77bn in 2007, a rise of 8.1% on 2006 and an increase of 31.9% since 2003. The market is currently thriving, with sectors such as mental health, elderly care homes and, to some extent, acute care benefiting from increased levels of public funding and a shift from public to private provision.

The NHS is in a period of transition and it is not yet clear how it will compare with its privately funded rival over the next few years. Waiting lists have been reduced and the quality of care is perceived to have improved in a number of areas of the service. This presents a very real threat to the future of the private healthcare market and could deter use of private treatment.

In addition, while sectors such as acute care have benefited from the NHS commissioning of provision to cut waiting lists, this situation may not continue. Indeed, over the next 5 years (2008 to 2012), a clear and secure path to revenue growth is not evident.

The independent hospital sector has also had to become more competitive and deliver greater cost efficiency in order to comply with the controlled tariffs imposed by the NHS. The entire acute care industry is likely to have to become more efficient, with pressure coming from the private medical insurance (PMI) industry, which is continually looking for ways to deliver a cheaper and more attractive proposition to its consumers. The PMI industry itself is highly mature, and a fall in membership levels over the past 5 years is currently being addressed with more competitive, and perceptibly cheaper, products on the market.

In terms of long-term care for both the elderly and the mentally ill, greater outsourcing by local authorities is the prevailing trend, but again, a focus on costs and the need to deliver a lean and efficient business model to attract long-term commissioning appear to be pre-requisites. The same can be said for short-term acute provision for the mentally ill in the independent mental health hospital sector, which is currently burgeoning, but which needs to stay cost-efficient and competitive.

Consumers are ambivalent in their attitudes towards the private healthcare market. Key Note's consumer research reveals that the large majority of consumers are extremely loyal to the NHS - more than 80% would prefer to use it if quality of care could be guaranteed. However, at the same time, almost half aspire to the privileged treatment afforded through the private system. This ambivalence presents opportunities for the industry: the future for the private healthcare industry may be one offering cheaper forms of healthcare and insurance packages which really give patients benefits that the state system is unable to provide.

Key Note forecasts that the private healthcare market in the UK will increase by between 5.9% and 7.4% year-on-year to 2012.

Content

Executive Summary
1. Market Definition
- Report Coverage
- Market Sectors
- Long-Term Care
- Acute Care
- Psychiatric Care
- Private Medical Insurance
- Primary Care
- Market Trends
- A Market-Orientated Nhs Sets The Pace
- Competitive Strategies in Private Health Are Increasing
- Lower Costs in Private Medical Insurance
- Flexible and Lower-Cost Insurance Policies
- Greater Outsourcing to The Private Sector in Long-Term Care
- Household Expenditure on Health
- Table 1: UK Individual Final Consumption Household Expenditure
- on Health at Current Prices (m), 1998, 2000, 2002 and 2004-2006
- Figure 1: UK Individual Final Consumption Household Expenditure
- on Health at Current Prices (m), 1998, 2000, 2002 and 2004-2006
- Demographic Analysis
- Table 2: Average Life Expectancy, Healthy Life Expectancy and
- Disability-Free Life Expectancy at Birth by Sex (Years), 1981 and 2002
- Causes of Death
- Table 3: Number of Deaths in England and Wales by Cause, 2005
- Economic Trends
- Population
- Table 4: UK Resident Population Estimates by Sex (000), Mid-Years 2003-2007
- Gross Domestic Product
- Table 5: UK Gross Domestic Product at Current and
- Annual Chain-Linked Prices (m), 2003-2007
- Inflation
- Table 6: UK Rate of Inflation (%), 2003-2007
- Unemployment
- Table 7: Actual Number of Unemployed Persons in The UK (Million), 2003-2007
- Household Disposable Income
- Table 8: UK Household Disposable Income per Capita (), 2003-2007
- Market Position
- The UK
- Table 9: Final Individual Consumption Expenditure on Health
- by General Government (m), 2003-2007
- Overseas
- Table 10: Private Healthcare Expenditure as A Percentage
- of Total Healthcare Expenditure by Country, 2004
2. Market Size
- The Total Market
- Table 11: The Total UK Private Healthcare Market
- by Sector by Value (m), 2003-2007
- Figure 2: The Total UK Private Healthcare Market
- by Value (m), 2003-2007
- Figure 3: The Total UK Private Healthcare Market
- by Sector by Value (m), 2003-2007
- by Market Sector
- Figure 4: The Total UK Private Healthcare Market
- by Sector by Value (%), 2007
- Long-Term Care
- Table 12: The Number of Long-Term Care Beds for Elderly,
- Chronically Ill and Physically Disabled People
- in The UK by Type, 2003-2007
- Table 13: The UK Long-Term Care Sector by Subsector
- by Value (m), 2003-2007
- Acute Care
- Table 14: The UK Private Acute Care Sector by Value (m), 2003-2007
- Psychiatric Care
- Mental Health Hospitals
- Table 15: The UK Mental Health Hospitals Subsector by Value (m), 2003-2007
- Care Homes
- Table 16: The UK Care Homes Subsector by Value (m), 2003-2007
- Table 17: The UK Psychiatric Care Sector by Value (m), 2003-2007
- Private Medical Insurance
- Table 18: The UK Private Medical Insurance Sector by Value (m), 2003-2007
- Table 19: Personal Medical Insurance Number of Subscribers
- and People Covered (000), 2003-2007
- Primary Care
- Private Gp Services
- Occupational Health
- Table 20: The UK Primary Care Sector by Subsector
- by Value (m), 2003-2007
3. Industry Background
- Recent History
- Number of Companies
- Table 21: Number of UK Vat-Based Enterprises Engaged
- in Human Health Activities by Turnover Sizeband
- (Number and %), 2007
- Employment
- Table 22: Number of UK Vat-Based Enterprises Engaged
- in Human Health Activities by Employment Sizeband
- (Number and %), 2007
- Regional Variations in The Marketplace
- Distribution
- Long-Term Care
- Table 23: Long-Term Residential Care for The Elderly and Physically Disabled
- in The UK by Sector by Number of Care Beds (%), 2003-2007
- Figure 5: Long-Term Residential Care for The Elderly and Physically Disabled
- in The UK by Sector by Number of Care Beds (%), 2003-2007
- Table 24: Long-Term Nursing Care in The UK by Sector
- by Number of Care Beds (%), 2003-2007
- Figure 6: Long-Term Nursing Care in The UK by Sector
- by Number of Care Beds (%), 2003-2007
- Acute Care
- Table 25: Private Acute Care Revenues by Source (%), 2006
- Figure 7: Private Acute Care Revenues by Source (%), 2006
- How Robust Is The Market?
- Legislation
- Key Trade Associations
- Association of British Healthcare Industries
- Association of British Insurers
- British Healthcare Trades Association
- British Medical Association
- Commercial Occupational Health Providers Association
- English Community Care Association
- Federation of Independent Practitioner Organisations
- General Medical Council
- Independent Healthcare Advisory Services
- National Pharmacy Association
- Royal College of Nursing
4. Competitor Analysis
- The Marketplace
- Market Leaders
- Long-Term Care
- Southern Cross Healthcare Group Plc
- Bupa Care Homes (Cfg) Plc
- Four Seasons Health Care Ltd
- Barchester Healthcare Ltd
- Acute Care
- Netcare
- Nuffield Hospitals
- Spire Healthcare Ltd
- Hca International Ltd
- Ramsay Health Care UK Operations Ltd
- Other Companies
- Psychiatric Care Hospitals for Mental Illness
- Partnerships in Care Ltd
- Priory Healthcare Investments Ltd
- St Andrews Healthcare
- Care Principles Ltd
- Psychiatric Care Care Home Providers
- Craegmoor Healthcare Company Ltd
- Care UK Plc
- Other Companies
- Private Medical Insurance
- Bupa Insurance Ltd
- Axa Ppp Healthcare Ltd
- Primary Care Providers of Occupational Health
- Capita Health Solutions Ltd
- Atos Origin IT Services UK Ltd
- outside Suppliers
- Pharmaceutical Companies
- Medical Laboratory, Device and Equipment Companies
- Marketing Activity
- Main Media Advertising Expenditure
- Table 26: Main Media Advertising Expenditure on Private Healthcare
- by Category (000), Year Ending December 2007
5. Strengths, Weaknesses, Opportunities and Threats
- Strengths
- Weaknesses
- Opportunities
- Threats
6. Buying Behaviour
- Overview
- Summary of Results
- Uptake of Private Medical Insurance
- Table 27: Summary of Results Uptake of Private Medical Insurance
- (% of Respondents), 2008
- Use of Healthcare Services
- Table 28: Summary of Results Use of Healthcare Services (% of Respondents), 2008
- Attitudes and Concerns towards Healthcare
- Table 29: Summary of Results Attitudes and Concerns towards Healthcare
- (% of Respondents), 2008
- Uptake of Private Medical Insurance
- Individual
- Company
- Table 30: Uptake of Private Medical Insurance (% of Respondents), 2008
- Use of Healthcare Services
- Routine/Complex Treatment
- Elective Nhs Treatment
- Table 31: Uptake of Healthcare (% of Respondents), 2008
- Uptake of Other Private Services
- Table 32: Uptake of Other Private Services (% of Respondents), 2008
- Attitudes and Concerns towards Healthcare
- Reasons for Taking out Private Medical Insurance
- Preference for Private Healthcare
- Table 33: Reasons for Taking out Private Medical Insurance and Preference
- for Private Healthcare (% of Respondents), 2008
- Preference for The Nhs
- Going Abroad for Treatment
- Table 34: Preference for The Nhs and Attitudes towards
- Going Abroad for Treatment (% of Respondents), 2008
7. Current Issues
- Growth in Demand for Independent Provision within The Nhs
- Competitive Strategies in Private Medical Insurance
- Growth in Demand from Self-Pay Patients
- Threat of The Nhs
- Mental Health Outsourcing
- Long-Term Care Demographic Trends
8. The Global Market
- per Capita Expenditure
- Table 35: per Capita Total Expenditure on Health at Average Exchange Rate ($), 2004
- Expenditure Breakdown
- Table 36: Breakdown of Expenditure on Health by Selected Country (%), 2004
- Major Trends
- An Ageing Global Population
9. Forecasts
- Introduction
- The Economy
- Table 37: Economic Forecasts (000, % and Million), 2008-2012
- Forecasts 2008 to 2012
- Table 38: The Forecast Total UK Private Healthcare Market
- by Value (m), 2008-2012
- Figure 8: The Forecast Total UK Private Healthcare Market
- by Sector by Value (m), 2008-2012
- Long-Term Care
- Table 39: The Forecast UK Long-Term Care Sector by Value (m), 2008-2012
- Acute Care
- Table 40: The Forecast UK Private Acute Care Sector by Value (m), 2008-2012
- Psychiatric Care
- Table 41: The Forecast UK Psychiatric Care Sector by Value (m), 2008-2012
- Private Medical Insurance
- Table 42: The Forecast UK Private Medical Insurance Sector by Value (m), 2008-2012
- Primary Care
- Table 43: The Forecast UK Primary Care Sector by Value (m), 2008-2012
- Market Growth
- Figure 9: Growth in The Total UK Private Healthcare Market by Value (m), 2003-2012
- Future Trends
- How Will The Nhs Be Perceived?
10. Company Profiles
- Atos Origin IT Services UK Ltd
- Axa Ppp Healthcare Ltd
- Bupa Care Homes (Cfg) Plc
- Bupa Insurance Ltd
- Capita Health Solutions Ltd
- Care UK Plc
- Craegmoor Healthcare Company Ltd
- Nuffield Hospitals
- Partnerships in Care Ltd
- Priory Healthcare Investments Ltd
- Southern Cross Healthcare Group Plc
- Spire Healthcare Ltd
11. Further Sources
- Associations
- Publications
- General Sources
- Government Sources
- Other Sources
- Bisnode Sources
- Understanding Tgi Data
- Number, Profile, Penetration
- Social Grade
- Standard Region
- Key Note Research