15 November 2023
In the face of an ongoing crisis in the UK’s National Health Service (NHS), private healthcare has witnessed unprecedented demand in the first quarter of this year. Firms, seeking to secure healthcare for their employees and gain a competitive edge in the war for talent, have fuelled a surge in private medical insurance (PMI) usage. According to the Private Healthcare Information Network, around 227,000 admissions were paid for using PMI in the first quarter, breaking the previous record set in the last quarter of 2022.
The expansion primarily stems from insured plans, with approximately 80 per cent being company-paid. The quarter saw insured treatments rise to 156,000, a significant increase from the previous quarter’s 149,000. Brett Hill, head of health and protection at consultancy firm Broadstone, emphasised that businesses are increasingly recognising the pivotal role of employee health as a “mission-critical business investment.”
“PMI has often been used as a tool to attract high-calibre talent in a competitive labour market, with the overall benefit package seen as a factor in decision-making by prospective employees,” noted Tim Read, director of research at Lang Buisson. He further highlighted that ongoing NHS pressures could lead individuals to make more use of the insurance benefits available to them.
The surge in private healthcare utilisation underscores broader concerns for the UK labour market, which continues to grapple with the aftermath of the Covid-19 pandemic. Recent data revealed a record-high inactivity due to long-term sickness, indicating the pressing need for solutions beyond the public healthcare system.
Charles Cotton, senior policy adviser for performance and reward at the CIPD, commented, “It’s not too surprising that many people are turning to private medicine, given the challenges currently facing the NHS in both England and Scotland.” He highlighted the increasing interest from employees in wellbeing benefits such as digital GP services, group medical insurance, physiotherapy, occupational sick pay, and health cash plans.
As the demand for private healthcare continues to surge, the long-term impact on the UK’s healthcare landscape is becoming increasingly apparent. The strain on the NHS, coupled with record levels of inactivity due to long-term sickness, signifies a fundamental shift in how individuals and businesses approach their healthcare needs.
Businesses that invest in private healthcare for their employees not only enhance their competitiveness in the talent market but also contribute to the overall resilience of the workforce. The emphasis on wellbeing benefits, as noted by Charles Cotton, signals a paradigm shift where employees are not just seeking financial compensation but a comprehensive package that prioritises their health and long-term wellbeing.
At Medmin, our commitment is to simplify the private healthcare landscape, ensuring that individuals and businesses can make informed choices without the burden of confusion. As the demand for private healthcare solutions continues to rise, we strive to be a trusted partner, offering clarity, accessibility, and tailored options to meet the diverse needs of our clients. In these challenging times, prioritising health is not just a necessity but a strategic investment in the wellbeing of both employees and businesses.