latest health care news

07.11.13

Private business ‘likely to continue’ in NHS

Private and independent hospitals are moving towards more mixed provision, research from LaingBuisson suggests.

A new report, Private Acute Medical Care 2013, shows that the income generated from treating NHS patients grew by 7.5% in real terms to reach £1.2bn in 2012. This represents 27.5% of total hospital incomes during the year, and is projected to grow to nearly 29% in 2013.

While private patient business is described as “persistently static”, there is no shortage of additional private patient capacity, the report states. NHS trusts are also developing and expanding their private patient services.

Healthcare economist and author Philip Blackburn said: “Funding dynamics for independent acute hospitals continue to move in one direction, as mixed provision is now a common business structure for many privately owned hospitals.

“More hospitals are looking at fresh NHS business opportunities from Clinical Commissioning Groups (CCGs) under ‘any qualified provider’ and this upward momentum is likely to continue in the near term as CCGs look to the private sector for innovative delivery and competitive drivers. Independent sector providers are attracted to growth developments as long as their cost structures can support a continued funding shift towards (lower margin) NHS business.

“Though NHS budget pressures have led to restrictions on NHS treatments across Trusts, and NHS resources are increasingly stretched – particularly in A&E – private healthcare demand continues to have a flat profile overall, albeit yet to benefit from UK economic growth.

“With these potential price drivers in mind, though times may be much tougher for some hospital groups in the short-term, perhaps there will be few other better times to attract new private patient customers into the market.”

Tell us what you think – have your say below, or email us directly at opinion@nationalhealthexecutive.com

Comments

There are no comments. Why not be the first?

Add your comment

 

national health executive tv

more videos >

featured articles

View all News

last word

Haseeb Ahmad: ‘We all have a role to play in getting innovations quicker’

Haseeb Ahmad: ‘We all have a role to play in getting innovations quicker’

Haseeb Ahmad, president of the Association of the British Pharmaceutical Industry (ABPI), sits down with National Health Executive as part of our Last Word Q&A series. Would you talk us throu more > more last word articles >

health service focus

View all News

comment

NHS England dementia director prescribes rugby for mental health and dementia patients

23/09/2019NHS England dementia director prescribes rugby for mental health and dementia patients

Reason to celebrate as NHS says watching rugby can be good for your mental ... more >
Peter Kyle MP: It’s time to say thank you this Public Service Day

21/06/2019Peter Kyle MP: It’s time to say thank you this Public Service Day

Taking time to say thank you is one of the hidden pillars of a society. Bei... more >

interviews

Matt Hancock says GP recruitment is on the rise to support ‘bedrock of the NHS’

24/10/2019Matt Hancock says GP recruitment is on the rise to support ‘bedrock of the NHS’

Today, speaking at the Royal College of General Practitioners (RCGP) annual... more >

the scalpel's daily blog

NHS at 72: Managing mental health services going forward

03/07/2020NHS at 72: Managing mental health services going forward

Sean Duggan, Chief Executive of the Mental Health Network Let’s take this opportunity to reflect on the amazing achievements of our health system over the past few ... more >
read more blog posts from 'the scalpel' >

editor's comment

26/06/2020Adapting and Innovating

Matt Roberts, National Health Executive Editorial Lead. NHE May/June 2020 Edition We’ve been through so much as a health sector and a society in recent months with coronavirus and nothing can take away from the loss and difficulties that we’ve faced but it vital we also don’t disregard the amazing efforts we’ve witnessed. Staff have gone above and beyond, whole hospitals and trusts have flexed virtually at will to meet demand and pressures and we’ve... read more >