Nearly 900,000 admissions were made to private hospitals in the UK in 2023, according to data from the Private Healthcare Information Network (PHIN).
The data collected from more than 600 private hospitals across the UK and also from over 10,000 consultants indicates this was more than any previous year and 7% higher than 2022, which was also a record year for private hospital admissions.
Insured admissions
Admissions funded by private medical insurance were at record levels, surpassing pre-pandemic figures for the first time.
The largest peak came in the final three months of 2023 when 161,000 private hospital admissions were funded this way. Insured admissions were 7% higher in 2023 than in 2019.
The number of admissions paid for with private medical insurance (PMI) was at the highest level ever in Q4 2023, contributing to the record annual figure.
There were 13,000 more insured admissions than in the same period in 2022 (9% increase) and across the year there were 60,000 more insured admissions than in 2022 (11% increase).
Compared to 2022, the number of admissions using PMI rose in every English region (11% for the whole of England). They also rose in Scotland (13%), Wales (1%) and Northern Ireland (17%).
The biggest increases for insured admissions in England came in the East Midlands (14%) and London (12%). The largest rises by volume were in London (23,800) and the South East (8,600) followed by the East of England (6,700).
Self-pay admissions
People paying for their own treatment, rather than using insurance, also hit their highest ever level in 2023 – peaking in the first three months of the year (73,000 admissions) before dropping slightly but staying well above (39%) pre-pandemic levels.
Self-pay admissions were down by 2,000 (-2%) in Q4 2023 compared to Q4 in 2022. This small decline by quarter was not reflected in the annual total which was higher than 2022, largely due to the record levels in Q1 2023. Overall, self-pay admissions were up by 3,000 (1%) across the year.
In 2023, admissions financed by ‘self-pay’ fell in every English region compared to 2022 levels, bar the East of England (4%) and the North East (5%).
The biggest percentage fall in England came in the East Midlands (-7%) and the North West (-7%). London and the North West had the largest fall by volume
The biggest increases by volume in admissions in the Top 10 procedures were for ‘diagnostic upper GI endoscopies’. These rose 3,595 (9%). The next biggest volume increase was in ‘diagnostic colonoscopy – bowel at 2,955 (9%).
The biggest decrease was in cataract surgery which was -5,615 (7%). Therapeutics – chemotherapy were also down (5.5%).
Growing number of people seeking alternatives
Dr Ian Gargan, CEO at PHIN, (pictured) said: “These record figures show the important role the private sector plays in the nation’s health, something acknowledged by the major political parties.
“With NHS waiting lists at record levels, a growing number of people are looking for alternatives and choosing to use the private sector rather than risk prolonged waits and potentially seeing their health deteriorate.
“The number of people using private medical insurance, or opting to ‘self-pay’ for their procedure, has increased despite the difficult economic conditions over the past few years, demonstrating the importance people place on their health.
“Research shows that people often aren’t familiar with the private sector and anyone considering private treatment should visit our free to use, unbiased website – www.phin.org.uk – to find out more about how the private sector works, and the hospitals and consultants who can help them.
“The UK’s private sector already partners with the NHS, and private hospitals tell us that they have the capacity to help further and bring down the waiting lists and stop people suffering unnecessarily.
“With the majority of the private sector carrying out the more easily arranged and most common procedures, such as cataract surgery, hip replacements and knee replacements, waiting lists can be reduced.
“The NHS can then concentrate on the more complex conditions and chronically ill patients.
“Cataract surgery continues to be the most common procedure for private hospital admissions, but there are a wide range of procedures carried out in the private sector and some private providers carry out highly specialist treatments and provide complex care.”
No longer a luxury exclusive
Kyle Godden, managing director at broker Clarity Health Insurance, said: “Private medical insurance (PMI) has begun to shed its reputation as a luxury exclusive to just the wealthy and is now more widely regarded as an essential protection product for people from all walks of life.
“Over the last three years, we have seen a steady rise in demand as more people have turned to PMI over fears of NHS waiting lists. We’ve seen a 50% rise in people seeking specialist advice on health insurance in the last few months, trying to better understand if it’s a product that suits both their needs and their wallets.
“Consequently, we’ve also experienced a rise of almost 20% in PMI policies taken out in the last few months compared to the previous year. But we are seeing a trend of clients with pre-existing conditions enquiring “after the fact” and being told that these health conditions cannot be covered. Navigating the diverse array of insurance options can be complex, so seeking guidance from an independent specialist adviser is crucial to assist, knowing they are working in your best interests without additional cost.
“Private medical insurance allows you to take charge of your health, offering flexibility in selecting care providers, avoiding lengthy NHS wait times, and accessing treatments not readily available through public healthcare. With affordable monthly premiums, PMI shields against exorbitant out-of-pocket expenses, ensuring financial security and peace of mind in times of medical need.”
Parlous state of NHS
Brett Hill, head of health and protection at independent consultancy Broadstone, commented: “The crisis in the UK’s public health system drove surging private healthcare admissions in 2023 in yet another indicator of the parlous state of our NHS.
“Self-funded admissions hit a record year despite the cost-of-living pressures on households, demonstrating the value patients are placing on their health and wellbeing in difficult economic times.
“Through the year, employers continued to expand coverage of workplace health insurance solutions amongst employees to stem record economic inactivity due to chronic illness, and these figures reveal the extent to which employees are increasingly making use of their healthcare benefits to access care that would previously have been provided by the NHS.
“More and more businesses recognise the need to invest in healthcare services as they can no longer rely on the NHS to support the health of their employees adequately.
“Admissions paid for with private medical insurance (predominantly employer-led schemes) account for nearly seven in 10 of all private treatments, as health insurance plans ck tiniest to fuel wider growth in the private healthcare market.
“Demand from businesses for private healthcare services is only like to grow further, regardless of the outcome of the upcoming election, as we see little hope of meaningful improvements to NHS waiting lists in the near future.
“Healthcare will be a key election battleground and it is to be hoped that any incoming government will recognise the significant role the private sector can play in maintaining the health of the UK workforce and reducing pressures in the NHS.”
