The first three months of this year witnessed “record” levels of demand for private healthcare services. This is due to the fact that businesses are looking to guarantee healthcare for their employees in order to differentiate themselves in the competition for talent in light of the ongoing crisis in the NHS.
According to the Private Healthcare Information Network, a record-breaking number of around 227,000 admissions were paid for using private medical insurance (PMI) in the first quarter of this year. This figure surpassed the previous record of 219,000 admissions, which had been set in the last quarter of 2022.
The expansion came predominantly from insured plans, around 80% of which are company-paid. The number of insured treatments rose to 156,000 during the quarter, up from 149,000 at the end of the previous year.
The director of health and protection at the consulting firm Broadstone, Brett Hill, stated that companies are increasingly realizing that protecting the health of their employees is a “mission-critical business investment.”
Hill stated that growing waiting lists and acrimonious pay disputes drove businesses to seek private insurance for their employees.
The National Health Service (NHS) has endured months of crisis, with August figures revealing that 7.6 million patients were waiting to begin routine hospital treatment, the highest number since records began in 2007.
The increase has been partially attributed to strike action. Since industrial action began in December of last year, at least 885,000 hospital appointments have been postponed, with the number approaching 1 million when mental health appointments are included.
However, the trend of companies offering private medical insurance predates Covid. According to data from healthcare intelligence firm LangBuisson, the number of company-paid PMI enrollees increased from just below 3 million in 2011 to over 3.4 million in 2021.
Tim Read, director of research at LangBuisson, stated, “PMI has frequently been used to attract high-caliber talent in a competitive labor market, with the overall benefit package viewed as a deciding factor by prospective employees.”
“Continued NHS pressures may result in individuals making greater use of available insurance benefits,” Read continued.
The rise of private healthcare highlights broader concerns for the British labor market, which has yet to recuperate from Covid’s effects. According to data released this morning, inactivity due to chronic illness reached a new record high.
In an effort to get people back to work, the government declared a crackdown on those claiming sickness benefits last week. However, the policy will not take effect until after the next election.
Charles Cotton, senior policy adviser for performance and reward at the CIPD, said: “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.
“Because of this, organisations are reporting increased interest from potential or existing staff about the wellbeing benefits on offer, such as digital GP services, group medical insurance, physiotherapy, occupational sick pay, or health cash plans. Offering such benefits at this time will help employers stand out in the labour market” .
Charles Cotton
