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News Archive > 2007 > Apr > 14
This Key Note Market Review analyses the healthcare market in the UK, which can be divided broadly into public healthcare (the NHS, which comprises hospital and community health services
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April 14, 2007 (Press Release) -- Healthcare Market Review

This Key Note Market Review analyses the healthcare market in the UK, which can be divided broadly into public healthcare (the NHS, which comprises hospital and community health services [HCHS] and family health services [FHS]), private healthcare (and private medical insurance [PMI]), and other healthcare services (covering complementary and alternative medicine [CAM] and palliative and hospice care). Key Note estimates that, in 2005, the total UK healthcare market will be worth £111.42bn, an increase of 8.9% on 2004.
Since its inception in 1948, the UK healthcare market has been dominated by the significant, comprehensive NHS. When the NHS was established with the remit to provide healthcare based on need rather than the ability to pay, there was no conception of how much costs would rise as the boundaries of healthcare expanded, along with the increasing number of elderly people in the population. In spite of the problems in funding and delivery, the British public remain fiercely protective of the NHS and politicians are aware that any significant erosion of the central principles of the NHS will have a huge political cost. At the same time, governments have had to grapple with the key issues of limited resources, prioritisation of care and, most importantly, how best to deliver healthcare in the most cost-effective and efficient way without compromising the principles of the NHS.

Key Note estimates that, in 2005, the NHS will account for 80.7% of total UK expenditure on healthcare services. The NHS is organised into two main service delivery organisations: HCHS, which are responsible for hospital-based services; and FHS, which are responsible for frontline community-based primary care. HCHS account for the bulk of NHS expenditure. Within FHS, the highest proportion of expenditure is on pharmaceutical services (PHS).

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