Industry report: Healthcare

The UK healthcare industry continues to be in the spotlight due to staff shortages, backlogs of procedures and uncertainty surrounding government policy due to the upcoming general election.

Persistent underfunding continues to disrupt efficiency in the sector, with NHS waiting lists projected to hit their highest level on record in 2024. As a result, demand for medical technology (“MedTech”) and private sector practices has surged, attracting investors from both domestic and international markets.

In our latest industry report, Nick Wallis and Sam Barr provide a comprehensive review of the UK healthcare landscape, spotlighting recent M&A activity, as well as prevailing trends and an outlook for the future.

The key takeaways from this report include:

• Data from the NHS Digital Health Episode Statistics reveals a substantial increase in spending on outsourcing to organisations from the independent sector. By 2023, this expenditure surged to £14.7 billion, exhibiting a remarkable 106% increase from 2014 figures.
• The Department of Health and Social Care also released its inaugural MedTech strategy roadmap in 2023 unveiling a £650 million investment package that is earmarked to tackle pivotal challenges within the sector.
• Internationally, the UK medical equipment market was valued at £14.5 billion in 2023 and is expected to demonstrate a cumulative annual growth rate (CAGR) of 5.64% through 2024-2028.
• In 2023, 290 private healthcare transactions completed in the UK to Q3 2023, a significant increase from the same period in 2022, both in terms of deal volume and value.
• The medical equipment market is set for sustained growth to address procedural backlogs. Integrating public and private sectors in procurement presents opportunities due to historical underfunding.

Our Corporate Finance team is deeply involved in the Healthcare sector, having successfully completed two related transactions at the outset of the year.

For further advice, contact our team today.