Ryan FowlerUK businesses are fuelling continued growth in the private healthcare sector, according to new analysis from Broadstone based on the latest Private Healthcare Information Network (PHIN) data. A record 664,000 insured admissions were reported in 2024, up 6% from 2023 and 15% higher than pre-pandemic levels in 2019. This marks the fourth consecutive year of growth, while self-pay admissions fell by 3% to 275,000.
The consultancy attributes this trend to increasing employer provision of Private Medical Insurance (PMI), as businesses seek to reduce staff absence and safeguard productivity. The data shows a sharp contrast between employer-driven admissions and the declining number of self-funded treatments.
Broadstone also cited new figures from the FCA’s Financial Lives Survey, which show 14% of UK adults now hold PMI – equating to 7.6 million people, up from 6.7 million in 2020. Demand has also grown for healthcare cash plans and dental cover, with plan holders rising from 4 million in 2020 to 5.1 million in 2024.
Brett Hill, head of health and protection at Broadstone, said: “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.”
Hill added: “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.”
