It’s a sad fact of life, but we’re reminded on an almost daily basis of the NHS’ shortcomings. At present, an estimated 7.2 million people await medical treatment; 3.1 million of those have been waiting for at least 18 weeks. This despite the fact that, with 1.7 million employees, the NHS is Europe’s largest employer.
Citing the ‘Long Term Workforce Plan’, the highly respected Nuffield Trust note that NHS staff numbers are set to rise by a third, to 2.3 million, by 2036-37, meaning that one in every 11 workers in England will be employed by the NHS.
Despite frequent surges in employee numbers over the past two decades, the NHS has, since the turn of the century, been forced to cope with an even greater surge in demand for its services, a massive structural shift which has resulted in the steady emergence of two burgeoning trends.
The first of these has been above average growth in the medical and dental insurance sector. Latest figures produced by health data provider LaingBuisson show that the UK’s private health insurance market is now worth more than £7.2 billion a year. An estimated 4.2 million people are subscribed in medical cover schemes; once dependents are added to these policies the figure rises to 7.3 million, the highest level for 16 years.
The second, even more eye-catching development, has been the increased willingness for people to ‘go private’ and pay for their own medical treatment. Although the NHS could theoretically perform the necessary treatments, a combination of almost guaranteed delays, operation cancellations and, in most cases, a gradual worsening of their medical condition are among the factors that persuade millions of people to turn to the private sector every year.
Subsequently, several private healthcare providers publish online price guides which exclude the cost of initial consultations and any diagnostic tests undertaken at the time. One medical firm*, for instance, lists the approximate fixed-price cost of the most commonly performed operations and procedures:
| Surgery Type | Cost £ |
|---|---|
| Hip replacement surgery | From £11,995 |
| Knee replacement surgery | From £10,995 |
| Cataract surgery (one eye) | From £2,119 |
| Knee arthroscopy procedure: | From £4,306 |
| Gall bladder removal surgery | From £4,993 |
Costs seem not to deter people suffering in pain, particularly those who have been advised that their wait for NHS treatment could be extended indefinitely.
Of course, the massive benefit of paying for medical treatment is the speed with which patients are seen and have their medical condition treated.
The private healthcare sector doesn’t suffer from waiting lists or backlogs and it’s unlikely that you will be waiting months for your initial consultation with a specialist. Thereafter, treatment is usually undertaken very quickly.
Indeed, most providers now offer straight forward online booking systems which enable people to book their initial consultations in minutes; ordinarily, a convenient appointment slot is reserved within a few days.
Another attractive feature of the private sector are the hospitals where treatment is undertaken. Many patients compare them to comfortable hotels with private en-suite rooms offered as standard, together with television and Wi-Fi; the quality of nutritious, in-house catering is regularly commented upon by patients.
An increasing number of private healthcare providers also include six months of aftercare in their treatment packages, a period when they check upon patients’ recovery, make follow-up appointments and scans, or book a course of physiotherapy designed to accelerate the healing process.
Still, irrespective of need, the prospect of paying almost £12,000 for a new hip or more than £10,995 for knee replacement surgery can be daunting. Admittedly, there are those who can draw upon savings in order to circumvent their pain, as well as the wearying prospect of waiting for many months to be treated in an NHS hospital.
Unfortunately, for a sizeable number of folks, accessing a plentiful supply of cash savings is not an option. There is, however, a potential answer to this dilemma, one that can effectively relieve physical pain and discomfort while radically shortening the time spent waiting for medical treatment.
Equity release enables most homeowners aged 55 and above to release a percentage of the equity built up in their property, usually over a number of years, without having to sell their home. Not only is this equity tax-free, but it can also allow people to ‘go private’ and enjoy the relief of having their medical requirements treated considerably sooner than they could possibly have imagined.
Not surprisingly, as NHS backlogs and waiting lists have grown longer, so thousands of older homeowners have realised that using equity release to fund private healthcare is a straight forward, viable option.
“People from a whole range of backgrounds have tapped into the often considerable equity in their homes and used it to pay for private medical attention,” says Mark Gregory, chief executive officer of Equity Release Supermarket, the UK’s largest independent equity release firm. “People are often delighted to discover that, while they may not have a huge amount of savings, they can still afford to ‘go private’. For those with little or no savings, following suitable independent equity release advice, may instead use a proportion of their home’s equity instead,” adds Mr Gregory.
This is not a trend about to come to a shuddering halt. The UK’s population is ageing; quite naturally, therefore, their healthcare needs will become increasingly complex and expensive. Fortunately, not everyone needs to attend hospital for major treatment; instead, many folks prefer to have some additional care as they age, and equity release makes this affordable too.
Many thousands of older homeowners acknowledge the benefits of adapting their homes, making them more ‘user-friendly’, perhaps by installing handrails, a sit-down shower or a stairlift, each designed to make life easier.
“While equity release is perfect for releasing larger, tax-free sums with which to pay for, say, a hip or knee operation, it can also be used to fund other, less expensive elements of medical and social care, such as a daily carer who can assist with cooking and cleaning,” adds Mr Gregory.
Equity release is not a panacea, and it is vital that advice is taken before the process of releasing equity begins. It should also be noted that releasing equity can affect your entitlement to means-tested state benefits.
On balance, equity release allows homeowners to avoid lengthy hospital queues and have their medical treatment undertaken within the private sector. Nor should homeowners old enough to recall Aneurin Bevan’s vision for the NHS feel guilty about this; after all, people who have their treatment in the private sector are effectively relieving the interminable pressure on the NHS.
*Circle Health Group
