Strong growth expected in private market, new industry study shows

Independent healthcare providers are anticipating strong growth in their private pay markets in the coming year, driven particularly by a renewed confidence in self-pay activity, according to a new survey conducted by the sector’s industry body.

Findings from the Independent Healthcare Providers Network’s (IHPN) latest “Industry Barometer” – which looks at how senior leaders from over 50 independent providers feel about the key issues relating to their business – show that confidence is rapidly growing in the domestic self-pay market. Against a backdrop of the continuing challenges around accessing NHS care, almost 8 in 10 (78%) of respondents reported feeling positive or very positive about this payor group, compared with 62% last year.

Independent healthcare leaders also feel upbeat around insured activity, with almost two thirds of providers (63%) “positive” or “very positive” about this market – reflecting the recent figures showing that private healthcare insurance coverage is at its highest levels for more than 25 years.

This positivity around the private market can be seen in light of the growing “normalisation” around paying for treatment, with IHPN’s most recent “Going Private” report showing that over 7 in 10 people now say they would consider accessing care privately, along with PHIN data showing record numbers of private hospital admissions.

The Barometer – supported by Practicus – also highlights the challenges the sector is facing around the NHS market and wider state of public finances, with almost 9 in 10 providers (88%) citing the pressure to achieve savings as the principal driver of NHS commissioner behaviour over the next few years. However, the survey also shows welcome improvement in the extent to which independent providers feel they are part of their local NHS Integrated Care Systems – rising to 65% this year, compared with 51% in 2025.

In light of the growing prominence of AI in healthcare, independent sector leaders have also identified advances in artificial intelligence and other digital tools as the biggest opportunity around improving quality and patient safety – the first time this has featured in the survey. And with an increase in independent healthcare providers looking to upskill and adapt their existing workforce, the survey also shows clear aspirations from the sector to increase clinical training, with 46% of independent healthcare leaders expecting this to increase in the next five years

David Hare, Chief Executive of the Independent Healthcare Providers Network (IHPN), said:

“While there’s no doubt that independent providers – along with others in the health system and wider business community – face real challenges in light of the current economic and political climate, this year’s IHPN Industry Barometer shows overall a continued sense of optimism within the sector, particularly in the private market where the growing “normalisation” around paying for treatment is becoming ever more apparent.

“The survey also highlights the clear desire amongst independent providers to meet the needs of growing numbers of both NHS and private patients, including through taking proactive steps to improve the quality and safety of their care through the use of AI and other digital tools, as well as “growing their own” workforce – putting them in good stead in the years ahead.”