Analysis of the latest quarterly Private Healthcare Information Network (PHIN) data demonstrates how UK businesses are the driving force behind the booming private healthcare sector.
The research from Broadstone, a leading independent consultancy, reveals that the first quarter of the year saw insured admissions reach 171,000, the joint highest ever number of Private Medical Insurance-funded (PMI) admissions recorded in a quarter. It follows a record year of insured admissions in 2024 (664,000) as employers recognise the growing need to expand coverage and protection for their staff to support their health, wellbeing and productivity.
Broadstone’s analysis of the latest FCA Financial Lives Survey found that around one in seven (14%) of the UK adult population now has Private Medical Insurance (PMI), a total of 7.6 million people which has increased from 6.7 million in 2020. Demand for private healthcare services is only likely to increase given the continued backlog for care in the NHS. The number of people waiting for treatment increased to 7.40 million in July 2025 (June 2025: 7.37 million)3.
In total, there were 241,000 private health admissions in Q1 2025 however self-pay activity continues to plateau with 70,000 treatments recorded in the first quarter of the year – marking the first year-on-year decline for this period.
Brett Hill, Head of Health & Protection at Broadstone, commented: “Employer demand to provide preventative healthcare services, insurance and health cash plans for their workforce is turbocharging the private healthcare sector. It is a win/win, as businesses benefit from the return on investment by keeping staff healthy, productive and present while staff are able to get the medical care they need quickly and affordably. The background to the boom in the private health market is the backlog for treatment that accelerated through the pandemic. While the current Government has made limited progress in bringing this down, there appears little hope of any meaningful improvements in service levels in the short to medium term.
“As such, we’d expect to see businesses increasingly put in place provisions for their employees to access the private health market and insured admissions are likely to continue growing. This will inevitably have consequences for insurers. Rising claims incidence and the need for more complex, costly treatments - largely due to delayed care - are already driving up premiums which is impacting the affordability of these valuable products. If the Government is serious about alleviating some of the strain on the NHS and driving economic growth, it must recognise the critical role businesses are playing. We hope it considers a targeted Insurance Premium Tax break for health insurance products at the upcoming Autumn Budget to boost access, ease pressure on public services, and keep the workforce thriving.”
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