PRIVATE ACUTE HEALTHCARE MARKET Latest Trends & Forecasts a - PowerPoint PPT Presentation

PRIVATE ACUTE HEALTHCARE MARKET Latest Trends & Forecasts a LaingB ngBui uiss sson n prese senta ntati tion on October 2017 LaingBuisson LaingBuisson Healthcare intelligence Healthcare intelligence

Agenda • Histor orical ical Revenu enue e Growth wth • Forecasts recasts • By payor groups • By Central London/rest of UK LaingBuisson LaingBuisson Healthcare intelligence Healthcare intelligence

Historical Revenue Growth LaingBuisson LaingBuisson Healthcare intelligence Healthcare intelligence

Private Acute Medical Hospital Market Definition: : UK Independent Hospital & Clinics + PPU Revenues Includes some fertility and screening services UK Market = worth £5.8 billion in 2016 5.6% annual growth (nominal) since 2006 £5.2 billion = Independent (Private/Voluntary) hospitals £0.6 billion = NHS private patient revenues LaingBuisson LaingBuisson Healthcare intelligence Healthcare intelligence

Private Acute Medical Care Hospital & Clinic Revenues (including NHS private patients) 180 Total private acute hospital market 5.6% CAGR 170 00) =100 06=1 160 th (2006 150 d Growth 140 130 Indexed 120 Private Patient Only 3.7% CAGR 110 100 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Note: All data is nominal LaingBuisson LaingBuisson Healthcare intelligence Healthcare intelligence

Funding Mix for Independent Acute Medical Hospitals (National) 100% 3.8% 6.0% 90% 19.3% 17.9% 80% 70% 15.7% 29.9% 60% 50% 40% 30% 61.3% 46.3% 20% 10% 0% 2006 2015 PMI NHS Self-Pay International Note: All data is nominal. Excludes PPUs. LaingBuisson LaingBuisson Healthcare intelligence Healthcare intelligence

Funding Mix for Independent Acute Medical Hospitals (Central London vs Rest of UK, 2015) 100% 1.0% 90% 18.0% 23.0% 80% 70% 19.0% 38.0% 60% 1.0% 50% 40% 30% 57.0% 43.0% 20% 10% 0% Central London Rest of UK PMI NHS Self-Pay International Note: All data is nominal. Excludes PPUs LaingBuisson LaingBuisson Healthcare intelligence Healthcare intelligence

Private Acute Medical Care Hospital Revenues (Central London vs Rest of UK) 220 Central London market 7.2% CAGR 200 00) 06=100) th (2006=1 180 160 d Growth 140 Indexed 120 Rest of UK 5.1% CAGR 100 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Note: All data is nominal Includes PPUs LaingBuisson LaingBuisson Healthcare intelligence Healthcare intelligence

Forecasts – Hospital and Clinic Revenue LaingBuisson LaingBuisson Healthcare intelligence Healthcare intelligence

PMI-funded Independent Hospital Revenue Growth 35% CAGR% (2006-2016) 2.6% 30% 25% th (%) inal Growth 20% 15% Nominal 8.2% 10% 3.1% 4.9% 5% 2.7% 1.4% 1.7% 2.7% 0.9% 2.0% 1.2% 1.0% 0.9% 0.8% 1.0% 1.0% 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Note: All data is nominal LaingBuisson LaingBuisson Healthcare intelligence Healthcare intelligence

NHS funded Independent Hospital Revenue Growth 33.1% 35% CAGR% (2006-2016) 13.2% 30% 23.6% th (%) 25% inal Growth 20% 15.5% 14.1% 15% Nominal 10.4% 10.6% 10.8% 9.8% 9.9% 10% 6.8% 5.7% 6.0% 6.0% 7.0% 7.0% 5% 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Note: All data is nominal LaingBuisson LaingBuisson Healthcare intelligence Healthcare intelligence

Self-Pay Funded Revenue Growth CAGR % (2006-2016) 5.6% 35% 30% 25% th (%) inal Growth 20% 15% 12.0% 11.0% 9.5% 8.6%10.0% 10.0% 9.0% Nominal 7.1% 8.9% 10% 5.8% 5.8% 4.5% 5% 0.2% -2.6%-1.1% 0% -5% 200620072008200920102011201220132014201520162017201820192020 Note: All data is nominal LaingBuisson LaingBuisson Healthcare intelligence Healthcare intelligence

International Private Funding Revenue Growth CAGR% (2006-2016) 9.8% 35% 30% 24.0% 23.1% 25% th (%) 20% 15.4% 14.0% inal Growth 15% 9.2% 9.2% 10% 2.8% 1.8% 4.4% Nominal 3.5% 0.0% 1.0% 2.0% 3.0% 5% 0% -3.7% -5% -10% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Note: All data is nominal LaingBuisson LaingBuisson Healthcare intelligence Healthcare intelligence

NHS PPU Revenue Growth 35% CAGR% (2006-2016) 3.3% 30% 25% th (%) inal Growth 20% 15% Nominal 10% 5.0% 5.0% 5.0% 3.6% 4.4% 4.2% 4.9% 5.1% 5.8% 5% 2.9% 5.0% 5.0% 2.7% 0% -0.5% -2.1% -5% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Note: All data is nominal LaingBuisson LaingBuisson Healthcare intelligence Healthcare intelligence

Summary - Private Acute Market Revenue Growth 35% Total National CAGR% (2006-2016) 5.6% 30% Of which: PPO only 3.7% th (%) 25% inal Growth 20% 15% Nominal 10% 6.7% 8.7% 5.2% 5.0% 5.0% 6.0% 5.0% 5.8% 4.4% 3.9% 4.5% 4.5% 4.9%4.8% 5.6% 5% 3.1% 3.6% 3.4% 4.6% 3.4% 4.4% 3.5% 3.2% 4.0% 3.9% 4.0% 4.1% 2.5% 2.5% 4.0% 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total National % Of which PPO only % Note: All data is nominal Includes PPUs LaingBuisson LaingBuisson Healthcare intelligence Healthcare intelligence

Central London Private Acute Market Growth Forecasts CAGR% (2006-2016) 35% Independent sector 7.0% PPU 7.8% 30% th (%) 25% inal Growth 20% 15.4% 15% Nominal 10.8% 9.6% 8.3% 9.4% 8.3% 6.7% 6.0% 5.0% 5.0% 5.0% 13.4% 10% 5.1% 9.7% 9.0% 8.9% 9.3% 9.1% 3.5% 5% 7.1% 1.5% 5.4% 5.1% 0.0% 2.0% 3.0% 4.0% 0% 2.1% 1.0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Independent NHS PPUs Note: All data is nominal LaingBuisson LaingBuisson Healthcare intelligence Healthcare intelligence

Out of Central London Private Acute Market Growth Forecasts CAGR% (2006-2016) 33.1% 35% Independent sector PPO 2.7% 30% NHS 13.2% th (%) 23.6% 25% inal Growth 20% 14.1% 15% Nominal 10.4%10.6%10.8% 9.8% 9.9% 10% 6.8% 5.7% 6.0% 6.0% 7.0% 7.0% 3.9% 3.6% 3.7% 5.5% 4.5% 4.2% 5% 2.5% 3.8% 2.3% 1.6% 1.8% 2.6% 0.8% 3.7% 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Independent PPO Only £million NHS £million Note: All data is nominal LaingBuisson LaingBuisson Healthcare intelligence Healthcare intelligence