Private health insurance is becoming increasingly popular for a good reason. They cover the costs of private medical care for short-term conditions. Many people take out private cover so that they can get treated almost immediately, whereas they might have to wait many months on the NHS. It covers the cost of surgery, specialists, hospital stays and nursing bills. It also covers things such as x-rays and medication. The accommodation is often better with most patients having their own rooms, instead of shared wards, with a fridge, TV and radio.

Yet after several years of strong growth in the self-pay market, paying for your own medical treatment appears to be losing some of its appeal. According to Laing & Buisson, after the £150m cosmetic surgery spend was deducted, £385m was spent on self-pay healthcare in last year.It might sound amazing, but NHS improvements have a lot to do with the surprising statistics. Private health care was somewhat dependant on the abysmal long waiting lists that the NHS experienced, but now that the NHS has apparently reduced waiting times, less people are inclined to go private.

None the less, private insurance is still the way to go for ‘non emergency’ procedure with a sharp rise in the amount spent on cosmetic surgery. This has been rising constantly through the last few years. It is not only cosmetic surgery but also obesity-related surgery, which is not covered in the NHS.

But, while demand is slowing there are still valid reasons for seeking private treatment. Research by BUPA found that the number one reason for buying medical insurance was access to clean hospitals, with MRSA and general hospital hygiene top concerns. Clearly this is a factor that also holds true for people paying to go private.

Also, self-pay deals could become more common. The last few years have seen something of a shake-up in the private hospital sector with new players coming into the market. Many of these are backed by private equity firms – for instance Cinven is behind Spire Healthcare – which will be keen to turn a profit. This could see greater competition for business with the emergence of more deals for self-pay customers.

However, revenue generated from patients paying their own bills is only a small part of the private hospitals’ income stream. New technology and a widening range of treatment options have seemingly ensured that people continue to look to the private sector for their healthcare. Despite the improvements in the NHS, the private insurance market continues to diversify and improve its own features.

With private equity firms backing them, the provision of money and resources is unlimited and the possibility of even more specialised treatment is a real possibility. Hopefully this will inspire the NHS to continue improvements, as despite the news about waiting lists, the constant reporting’s in the news about unhygienic wards and cleanliness continue to worry.