Service: Deal Advisory 

Industry update: Healthcare/care homes

20 Sep 2021

Underpinned by an ageing population and the current NHS patient backlog, there is significant pressure on the UK’s public healthcare system.

These factors are expected to drive future growth opportunities and M&A activity for service providers in both traditional and alternative healthcare markets. 

With COVID-19 having impacted all aspects of life, the UK healthcare industry has consistently been in the spotlight over the past 18 months through unprecedented challenges that have and will continue to create opportunities for new healthcare services and care homes. 

In our latest industry report, Gerald Edelman Partners, Deval Patel, and Joanna Loizidou share insight into the healthcare services sector, in particular care homes. Inside, you’ll find a full industry overview, an analysis of recent performance, a breakdown of market trends, and finally, an evaluation on how key factors will drive growth within the sector and continue M&A momentum. 

Key takeaways from this report include: 

  • According to the ONS, the median age of the UK population was 40 years in 2019, with 12 million people aged 65 and above. The ageing population required additional healthcare spending and puts additional pressure on industry operators, all of which is against a backdrop of ever-increasing pressure on NHS budgets
  • With COVID-19 posing the greatest risk to people over the age of 80, the elderly residential care sector has also been in the spotlight. A survey by Knight Frank reported an 8.5% decline in occupancy rates following the first wave of COVID-19, although it stabilised quickly.
  • With 1,300 completed healthcare transactions, 2020 was the UK’s most active ever year for healthcare deals.
  • Market analysis of UK M&A activity in the healthcare services sector reveals an active transactional environment with over 260 deals completed in the year to-date.
  • Increased funding as part of the NHS Five Year Forward View plan will somewhat support the industry, with 50,000 new nurses and 6,000 GPs expected to provide 50 million additional GP appointments annually by 2024.

To download the full sector report, click below:

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