Analysis of the latest quarterly Private Healthcare Information Network (PHIN) data1 reveals that UK businesses remain a driving force behind the booming private healthcare sector, as NHS waiting lists rise once again and businesses increasingly implement Private Medical Insurance (PMI) to future-proof productivity and growth.
The research from Broadstone, a leading independent consultancy, reveals that insured admissions hit another annual record of 664,000 in 2024. It marks an increase of 6% from 2023’s total of 625,000, 15% higher than the pre-pandemic 2019 total of 576,000 and marking their fourth year of consecutive growth since the pandemic.
In contrast to this, self-pay fell for the first time in four years, down 3% from 283,000 in 2023 to 275,000 in 2024. The second half of the year saw the lowest levels in quarterly admissions since Q1 2021, when admissions were at 50,000.
It demonstrates an increase in admissions coming from growing employer provision of health solutions, like PMI, through employee benefits packages rather than individuals self-funding coverage.
In fact, Broadstone’s analysis of the latest FCA Financial Lives Survey2 found that 14% of the UK adult population now hold Private Medical Insurance (PMI), a total of 7.6 million people which has increased from 6.7 million in 2020. Healthcare cash plans and dental plans have also seen a significant rise in demand over the past four years increasing from 4.0 million plan holders in 2020 to 5.1 million in 2024 according to the statistics, highlighting similarly high demand for other health insurance products.
Brett Hill, Head of Health & Protection at Broadstone, commented: “Employer demand for health insurance is turbocharging the private healthcare sector, as businesses increasingly recognise its value in keeping staff healthy, productive and present. Insurance products like PMI and health cash plans help prevent and treat medical conditions that might otherwise result in people being off work, by enabling fast-track access to services like virtual GPs and health screenings, and providing support for mental health conditions.
“However, amidst this demand, rising claims incidence and the need for more complex, costly treatments - largely due to delayed care - are driving up insurance premiums. This is impacting the affordability of these valuable products and potentially limiting access to the private healthcare sector. 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 and consider a targeted premium tax break for health insurance products to boost access, ease pressure on public services, and keep the workforce thriving.”
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