Private Hospital blackspots revealed amid surge in demand for private medial insurance

Amidst a significant surge in demand for private healthcare, a recent investigation by consumer group Fairer Finance has brought to light striking regional imbalances in access to private hospitals, reinforcing the longstanding North-South divide within the UK.

The research, which counted the number of facilities available through the hospital lists of several leading private medical insurance (PMI) providers,¹ has illuminated regional ‘black spots’ where access to private hospital facilities can be limited. The data reveals a notable deficit in the Northeast of England, where only 19 private hospitals and 48 total facilities are present across these providers’ lists. When adjusted for population, this translates to 0.72 private hospitals per 100,000 individuals, a significantly lower figure compared to the Southeast's 1.12.

Despite these numbers, the Northeast ranks fourth among all UK regions for private admissions over the last year, trailing behind only London, the Southeast, and the East of England, according to the Private Healthcare Information Network (PHIN²).

Conversely, the Southeast of England emerges as the most well-served region outside of London, boasting 113 private facilities. Meanwhile, Greater London leads the chart with a staggering 406 facilities, many of which are clinics and diagnostic centres. Even Scotland, with its comparatively smaller population, faces a relative scarcity of private healthcare resources, housing only 16 private hospitals from these providers’ lists, the least per capita among all regions, with just 0.29 private hospitals per 100,000 individuals.

The surge in demand for private medical insurance (PMI) is evident, with a record 5.8 million people in the UK holding PMI policies, the highest number since 2008³. The proportion of individuals aged 18 to 64 with personal PMI cover surged from 17% in March 2022 to 26% in September 2023, while participation in company schemes rose from 21% to 28% during the same period⁴.

This increased demand is particularly pronounced in regions with existing disparities in hospital provision. Data from PHIN² indicates a 28% rise in in-patient admissions in Northern Ireland and a 9% increase in Scotland between Q2 2022 and Q2 2023, surpassing the 4% growth observed in England and Wales.

James Daley, Managing Director at Fairer Finance, the consumer group and ratings provider, commented: “The consumer appetite for private medical insurance has been growing rapidly in recent years as more people have decided to hedge their healthcare while the NHS continues to struggle. Although this boom in demand is a great opportunity for the industry, it’s also a precarious moment for consumers - many of whom have never bought this insurance before and may not fully comprehend the nuances of coverage offered.

“PMI policies vary enormously in terms of the conditions covered and treatments offered, and this latest research shows that geography also has a massive bearing on availability of care facilities. London and the Southeast of England have the lion’s share of private hospitals in the UK, but coverage is much thinner elsewhere.

“It’s important that providers clearly explain these limitations to customers before they buy a health insurance policy – so that customers understand exactly what they’re buying.”

Fairer Finance launched its new PMI product ratings in 2023 which are designed to help consumers choose a good quality product. Fairer Finance awards a 5-star rating to the products with a set of features that most customers will need and expect. It sets a high bar, so the ratings have real value - no more than 15% are awarded 5-star ratings at the start of each year, and often far fewer.

The policies that have been awarded a 5-star rating are AXA Personal Health, Bupa By You Comprehensive, The Exeter Health+ and Vitality Personal Healthcare. 

For more information about Fairer Finance and to read more about its Customer Experience and Product Ratings, visit https://www.fairerfinance.com/.

ENDS

Notes to editors

For further information, please contact:

Karen Mignon, KM Comms: karen@kmcomms.co.uk / +44 7766 651327

Louise Ahuja, KM Comms: louise@louisebcomms.co.uk/ +44 7788 676913

1 –Fairer Finance analysis covered several major health insurers: Aviva, AXA, Bupa, Freedom Health, The Exeter, and Vitality. Hospital list data was taken from these providers' websites.  As such this data is just indicative and may not be exhaustive.

^{2 –} PHIN - https://www.phin.org.uk/news/phin-private-market-update-march-2024 and https://phproduksportalstorage.blob.core.windows.net/website-files/reports/PHIN%20Annual%20Progress%20Report%202023%20v7.2.pdf

³ – ABI - https://www.abi.org.uk/news/news-articles/2023/11/huge-growth-in-employees-benefiting-from-workplace-health-insurance/

⁴ - Statista Consumer Insights as reported in FT.com - https://www.ft.com/content/611fbbb5-9f68-40b0-b8b9-3992a04d2c8c

About Fairer Finance

Fairer Finance is an independent consumer group and ratings provider whose mission is to help create a financial services market that is fair for consumers as well as the companies that serve them. With a heritage spanning almost a decade, Fairer Finance’s unique and impartial Product Ratings are simply designed to help consumers make sense of the complex world of financial products. It rates over 6,000 products spanning over 20 sectors, ranging from bank accounts, credit cards, car insurance and travel insurance.

Its Customer Experience Ratings are designed to help consumers make more informed decisions based on quality and service and not just price (eg trust, complaint-handling, transparency etc).