Spire Healthcare has seen private medical insurance (PMI) generated revenue return to pre-pandemic levels, but it still registered a loss of almost £9m in 2021 despite an improved financial performance.
According to results for the year ended 31 December 2021, the private hosptial group reported a much improved pre-tax loss of £1.9m, reduced from a £231m loss in 2020, and a loss after tax of £8.9m, down from a £233.9m loss in 2020.
PMI-related revenue grew 40.3% from £337.6m to £473.7m, which pushed this closer to pre-pandemic levels. Meanwhile self-pay revenue more than doubled from £135.6m to £292.0m – an increased of 115.3% on the previous year.
The hospital group noted PMI growth was more muted than self-funding and remained 3.7% below its pre-pandemic figure in 2019.
It said more complex referral pathways were “likely affecting uptake and a lower conversion from outpatients to treatment than pre-pandemic, though volumes increased throughout the year”.
Overall revenue grew to £1.1bn in 2021 from £919.9m in 2020, which the group attributed to a significant demand for private treatment.
The group’s net bank debt fell to £224.9m, reflecting £89m of proceeds before costs from the sale and leaseback of Spire Cheshire Hospital.
Spire also completed the re-financing of its funding facilities and repaid £100m of debt last month.
The period also saw Spire shareholders reject Ramsay Health Care’s proposed £1bn takeover of the group.
Justin Ash, chief executive officer of Spire Healthcare, said: “The pandemic has driven a fundamental shift in the private healthcare sector, shown by Spire’s strong self-pay performance which, despite the cost pressures of Covid-19, has helped to deliver more than 10% EBITDA growth.
“Increasing awareness of private healthcare and record waiting lists have led more people to prioritise their health and choose to use independent providers.
“We remain focused on providing the highest quality of care and patient safety in our hospitals, while increasing returns to shareholders. We look to the future with confidence and optimism.”