Examining Differences Between US & UK/European Healthcare Market Opportunities with Jonathan Kron
Below is an excerpt of the full interview conducted with Jonathan Kron. Download the PDF now for the full article.
Key Takeaways
- Large and effective partnerships between private market healthcare companies and large, government funded healthcare agencies have been a cornerstone of UK and European healthcare markets for decades.
- +80% single payor market in the UK has still enabled plenty of private capital investment to act as a “high-quality” partner to the NHS and to work with the remaining ~20% of the payor market that offers alternative private payor models.
- The analogy to heavy NHS payor reliance in the UK is investing in US states where single payors dominate their respective local markets, which is in fact frequently the case.
- Large For-Profit US based, plus South African, and Australian health care systems such as HCA, BMI and Ramsay Healthcare have for many years invested in hospital ownership.
- The principal reasons for private sector expansion in the UK include:
- Significant care access and patient experience challenges experienced in the public sector.
- Growing partnerships between public and private sectors, with the private sector being able to provide investment where the public sector lacks funding.
- Private payors supporting the expansion of private outpatient settings given their lower cost, higher quality offering.
- Critical industries such as Defense and Transportation recognizing that public sector healthcare alone does not adequately address the health & wellness needs of their workforce.
- The UK corporate employer sector is also coming to the same realization on behalf of its workforce.
- Noticeable rapid growth private sector markets across Europe would include:
- Radiology
- Retail Healthcare: Urgent Care, Optometry, Dental
- Primary Care
- Single Specialty Groups (e.g., orthopedics)
- The similarities between Europe’s cross-border healthcare market capitalizing on better forms of healthcare and the U.S. market are plentiful. However, Europe lags way behind the U.S. in value based care risk based reimbursement models.
Europe lags way behind the U.S. in value based care risk based reimbursement models.
