The ongoing NHS waiting list crisis has led to a surge in demand for private healthcare services in the UK. Assura, a prominent healthcare property investor and developer, has capitalised on this trend by acquiring a portfolio of 14 private hospitals across the country for £500 million from Canada’s Northwest Healthcare Properties.
The acquired hospitals, which include the Cancer Centre London and the Edgbaston hospital in Birmingham, are leased to various private healthcare providers on long-term contracts. These facilities offer a range of services, such as cataract surgery, chemotherapy, diagnostics, and orthopaedic procedures, which are well-suited for day-case units.
The NHS waiting list in England reached a staggering 7.8 million cases last September and currently stands at 7.6 million, with approximately 3.1 million patients waiting for more than 18 weeks. To alleviate the pressure on the NHS, private providers have been increasingly utilised to help reduce waiting times. Research from YouGov indicates that eight in 10 people who used private healthcare last year would have previously relied on the NHS. Additionally, a Care Quality Commission study found that 56% of people had attempted to use the NHS before opting for private care.
Jonathan Murphy, CEO of Assura, emphasised the significance of the deal, stating that it provides the company with relationships with all tier 1 private healthcare providers. He added that this acquisition represents a unique opportunity to participate in the growing demand for private healthcare services, which can help alleviate the strain on the NHS amidst the ongoing UK healthcare crisis.
The transaction, largely funded by debt, will increase Assura’s portfolio size by nearly 20%, with the company planning to issue £100 million in shares to Northwest, refinance £266 million of debt, draw down £80 million from its revolving credit facility, and use £54 million of cash. Assura also intends to make some disposals within its portfolio to pay down a portion of the debt.
As the NHS continues to grapple with the waiting list crisis, the role of private healthcare providers in easing the burden on the public health system is becoming increasingly crucial. Assura’s acquisition of the private hospital portfolio is a testament to the growing demand for alternative healthcare options in the UK. Tags: Assura, Private Healthcare, NHS Waiting List, Hospital Acquisition, UK Healthcare Crisis, Healthcare Property Investment
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