Three of the highest quarters for admissions paid for with private medical insurance (PMI) occurred in 2024, a year in which there were more private hospital admissions than any previous year on record.
This is according to the latest data from the Private Healthcare Information Network (PHIN) which revealed there were 664,000 insured admissions in 2024, up from 625,0000 in 2023 (a 6% increase).
Reported private hospital/clinic admissions were up 3% from 2023 to reach 939,000.
The volume and proportion of admissions funded by PMI continued to grow, whereas self-pay (where patients pay for their procedures through savings, loans or fund-raising) fell by 3% compared to 2023.
This was despite the first three months of 2024 witnessing the highest ever quarterly total for self-pay admissions at more than 73,000. London and Wales were the only areas that saw increased admissions for this payment method in 2024.
Insured admissions
Compared to the previous year, admissions using PMI rose in all English regions in 2024, as well as in Scotland (11%), Wales (9%) and Northern Ireland (29%).
Northern Ireland’s percentage increase was the largest of any nation or English region.
The largest rises for insured admissions in England came in the East Midlands (9%) and London (8%).
The biggest rises by volume were in London (18,300) and Northern Ireland (3,200) followed by the East of England (3,000).
Record in-patient admissions
The total number of admissions in 2024 was 939,000 which meant the private sector had more admissions than in any previous year on record for the third year in a row.
Each quarter in 2024 had a record number of admissions when compared to the equivalent period in previous years.
In 2024, the number of admissions grew in Northern Ireland by 12% (2,500), the highest percentage increase of any nation. Admissions in Wales (1,900) and Scotland (2,700) both increased by 6%.
And while it saw the lowest increase in admissions by percentage (3%), England had the largest increase by volume (22,900).
Self-pay
In contrast, self-pay admissions in 2024 were down by 8,000 (a fall of 3%) compared to 2023. And this was despite Q1 2024 being the highest ever quarter for self-pay admissions at more than 73,000.
However, at 275,000 admissions, 2024 is third highest year for self-pay admissions, behind 2023 (283,000) and 2022 (276,000).
In 2024, admissions financed by ‘self-pay’ fell in every English region bar London compared to 2023 levels. They also dropped in Scotland and Northern Ireland.
The largest percentage and volume fall in England came in the East of England (down by 9%) and the South West (down by 9%).
Top 10 procedures
The largest increases by volume in admissions in the Top 10 procedures were for ‘Therapeutics – chemotherapy’.
While these increased by 6,000 (9%), PHIN notes that patients usually require multiple admissions for this treatment and the number of admissions they have varies depending on their health.
The second biggest volume increase was in ‘Upper GI endoscopy – diagnostic’ at 2,735 (9%).
Conversely, the biggest decrease was in ‘Hip replacement (primary) which was down by 2,155 (7%). ‘Knee replacements (primary)’ were also down (6%).
These two replacements are mainstays of the private sector Top 10 and conventionally form the top three with ‘Cataract surgery’.
The year 2024 saw PHIN begin reporting on the traditional form of these procedures and the robot-assisted version separately. ‘Hip replacement (primary) – robotic assisted’ increased by 44% and ‘Knee replacement (primary) – robotic assisted’ by 51%.
While the assisted procedures are currently conducted at lower volumes than the standard method, this is changing and PHIN says it would expect them to continue to increase and overtake the traditional method in time.
Market trends
When looking beyond the top 10 procedures, the data indicated a 21% increase in ‘Surgical treatment for endometriosis’ but a 21% fall in ‘Weight loss surgery – gastrectomy’.
Three types of cosmetic surgeries – ‘Tummy tuck – abdominoplasty’ (down by 10%), ‘Breast lift – mastopexy’ (down by 15%) and Breast reduction (down by 7%) – also declined in number.
PHIN noted the reduction in cosmetic surgery – which is nearly always paid for by self-pay – has been a pattern for the year and could be related to the cost-of-living crisis or changing fashions.
Active consultants
While PHIN noted the number of consultants active in private healthcare regularly fluctuates as new consultants start working in the private sector, and existing ones go on sabbatical, stop working privately, or retire, – the number of active consultants (12,800) was at the highest level since the pandemic in 2024.
New normal
David Hare, CEO of the Independent Healthcare Providers Network (IHPN), said PHIN’s data shows that paying for treatment is fast becoming the “new normal”.
Hare added: “The significant rise in the proportion of people using private medical insurance also demonstrates the clear role that employers are playing in making it easier for people to access the healthcare they need, with our research showing over half of people saying they would be more likely to apply for a job if it offered this benefit.”
Landmark year
Brett Hill, head of health and protection at independent consultancy Broadstone, said 2024 was a “landmark” year for the private health market, with admissions hitting record highs and once again signalling a major shift in how people access healthcare in the UK.
“We do not expect meaningful improvements in NHS service levels in the short-term, so individuals and businesses alike are likely to continue to turn to the private sector to get the care they need in an appropriate timeframe,” Hill continued.
“Private medical insurance has driven the lion’s share of admissions growth in recent years as businesses expand coverage and proactively encourage employee uptake.
“Health is now a C-suite issue with business leaders recognising that early intervention keeps people healthy, reduces absence and protects productivity.
“Our own analysis of the FCA’s Financial Lives Survey shows a sharp rise in PMI uptake, with nearly a million more people covered since 2020.
“With roughly 7.6 million UK adults now holding a policy, employer funded health insurance is no longer a niche perk, but a mainstream expectation for many employees.
“Going forward, we expect this trend to continue to grow as the deep-rooted problems in the NHS make it hard for the government to deliver any large-scale reduction in waiting lists, and businesses increasingly seek to protect their employees from poor access to NHS care and boost the productivity of their workforce.”
