Bupa profits soar as patients turn to private care amid NHS waiting list crisis

Profits at Bupa the UK’s most recognised private healthcare provider have surged by nearly a fifth as growing numbers of patients look beyond the NHS due to record waiting times and increasing demand for elderly care. The group’s statutory profit before tax climbed by 19 per cent to reach £501 million in the six months to the end of June while revenue rose by 11 per cent to £8.8 billion.

The division containing Bupa’s UK operations reported revenue growth of 12 per cent to £2.8 billion with UK insurance customers increasing by 149000 in the past six months. This brings the group’s global insurance membership to over 41 million its highest level to date.

According to Carlos Jaureguizar chief executive of Bupa in the UK the company’s strategy has evolved from simply settling bills to actively guiding members through their healthcare journeys. In a significant move this summer Bupa agreed its second hospital acquisition in Britain purchasing the New Victoria Hospital in Kingston upon Thames southwest London. This 33 bed independent hospital specialises in women’s health and surgery and marks Bupa’s first hospital purchase in the UK since 2008.

Bupa’s roots in Britain are deep originally formed by doctors’ organisations in 1947 just before the founding of the NHS. Its unusual structure means it has no shareholders and instead reinvests profits back into the business. The company’s reach is global with substantial operations in Australia Spain Chile and India. Within the UK Bupa Insurance provides medical and dental cover to around four million people. Its dental arm is the leading provider in the UK running roughly 400 dental centres. Care services remain robust with more than 7000 residents in 116 care homes and ten Richmond care villages. Health services also include 79 clinics and the Londonbased Cromwell Hospital.

Ongoing concerns over NHS backlogs are fuelling the move to private healthcare. British Medical Association data shows over 6.2 million people waiting for treatment in England as of May with 2.8 million waiting longer than four and a half months. Bupa has successfully positioned itself to meet this need launching a subscription service offering same day appointments which has seen strong uptake particularly as an employee benefit. Tens of thousands more customers are expected to enrol this year.

The company’s care for the elderly has also shown notable progress with revenue up 7 per cent and occupancy reaching 91 per cent in UK care homes. Sales of retirement village apartments are at record highs underpinned by high levels of staff retention and minimal reliance on agency care workers. Bupa’s commitment to reinvestment and innovation continues to drive both growth and customer satisfaction in a healthcare market facing monumental pressures.