Double-digit growth in the self pay healthcare sector is coming at the expense of private medical insurance, a report has found.
The London self pay market is estimated to be growing at 20% annually, largely driven by inbound international business.
The range of prices in the industry has narrowed, The Private Healthcare UK Self Pay Market Study 2015 report released to coincide with the Private Healthcare Summit 2015 found.
Rising PMI premiums, reduced confidence in and access to NHS services and changing demographics were all believed by those surveyed for the report to influence the changing market.
Growth in self pay treatment is being seen especially in cardiology, interventional radiology, dermatology and gastroenterology.
A rise in oncology patients who are self paying was attributed by those surveyed to the restrictions on funding for cancer drugs.
Almost half respondents believe the self pay market will grow by 15-20% in the next three years.
Keith Pollard, CEO of Intuition Communication, said: "If this report tells us one thing, it's that the traditional models of Private Medical Insurance are simply not going to be sustainable in the future - either for corporate or personally paid policies.
"Insurers have yet to demonstrate real innovation in a way that delivers better value for consumers.
"What is very encouraging, however, is the positivity among healthcare providers about the current state and future potential of the self-pay market, with most expecting to see double-digit growth in the next three years.
"I look forward to repeating this report in a couple of years to see whether that is in the process of taking place."
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