Insured private health admissions have experienced significant growth, surpassing pre-pandemic levels and setting new records.
- Admissions funded by private medical insurance (PMI) have reached unprecedented figures, with Q4 2023 and Q1 2024 marking consecutive record quarters.
- The latest data indicates that employers are increasingly turning to private health solutions to reduce the burden on the NHS.
- Corporate investments in health solutions are proving essential as insured admissions rise significantly above self-pay methods.
- The trend highlights the growing importance of private healthcare options in addressing the operational challenges faced by the NHS.
Private medical insurance (PMI) admissions have continued their upward trajectory, achieving record numbers in both the fourth quarter of 2023 and the first quarter of 2024, with figures reaching 161,000 and 168,000 admissions respectively. This marks a significant increase from the previous year, where the numbers stood at 158,000, and an even greater rise from 148,000 admissions in Q1 2019.
The current level of insured admissions is now at 114% of what it was before the pandemic, reflecting a seven percentage point rise from last year, when it was at 107%. Notably, there has been a stark contrast between PMI-funded admissions and self-pay admissions, with the former reaching nearly 100,000 more in numbers.
The Private Healthcare Information Network (PHIN) data underscores the expanding impact that employers are having on this growth within the private healthcare sector. Companies are prioritising private healthcare as a means to secure timely healthcare services for employees, hence mitigating the impact of the NHS backlog, which has reached 7.62 million patients.
Brett Hill, Head of Health & Protection at Broadstone, commented on the situation saying, “Corporate-funded medical insurance has emerged as a key driver behind the private health sector’s remarkable growth in recent years.” He further noted the strategic shift by employers towards ensuring the well-being of employees to counteract absenteeism and productivity losses.
Despite the robust growth in PMI coverage, this has also led to higher claims costs, with rising premiums adding to corporate expenses. The pairing of this phenomenon with the increased complexity of medical conditions has intensified the pressure on employers.
Preventative health programmes are highlighted as a potential solution to manage rising premium costs by identifying issues earlier, thereby reducing the necessity for extensive, complex, and expensive treatments.
The remarkable rise in private health admissions underscores the shifting landscape of healthcare solutions in the UK, driven by corporate investment and strategic adaptation to NHS challenges.
