Spire Healthcare has seen private medical insurance revenue climb 14.7% year-on-year, which the private hospital group says had fulfilled its expectations of a return to growth within the PMI market.
According to results for the first half of 2022, the group saw PMI revenue hit £265.2m, while the group also significantly reduced losses, with a loss after tax over the period of £600k, down from £16.9m in the first half of 2021.
Group revenue was up 7.1% on the same period of last year – to £597.9m from £558.2m. The group attributed the increase primarily to a strong performance from its private patients business – insured revenue rose from £231.3m to £265.2m while self pay revenue was also up to £174.1m from £129.9m.
However, NHS revenue fell 21.5% – from £185.4m to £145.6m, with the group noting that it had operated under a Covid-19 specific NHS contract with a minimum volume guarantee in Q1 2021.
Impact of Omicron
More recently Spire was particularly hard hit by the Omicron wave in July which led to a high number of cancellations and absences and coincided with patient and staff and consultant holidays. This meant that the net Covid impact in July exceeded expectation by £6m.
However, Spire noted that the business has continued to work hard to recover and as a result volumes were strong in August.
The group also revealed that as with other businesses, the healthcare sector is facing inflationary pressures. And a week ago it implemented a 5% workforce salary increase, with pay hikes of over 16% for the lowest earners.
Looking ahead, Spire said it was encouraged with the further growth of private patient revenues, continuing the trend shown in 2021 and expects to see continued private revenue growth during the second half of the year, with further profit and margin growth.
Fundamental change underway in UK healthcare
Justin Ash, chief executive officer of Spire Healthcare, said: “Fundamental changes are underway in UK healthcare, leading to strong growth in Spire Healthcare’s private revenues across both self-pay and PMI.
“I’d like to thank all my colleagues across the Group for their continued efforts to meet the strong demand for our services in what remains a challenging operating environment for healthcare provision.
“Our revised strategy leaves us well positioned to continue to help meet the nation’s growing healthcare needs. I am looking forward to the expansion of Spire Healthcare’s proposition into community-based clinics and extending our private GP provision, as we continue to grow and deliver for all our stakeholders.”