The Central London private hospital market is opening up to a new breed of small, highly specialised provider, according to research from LaingBuisson.
Findings published in the Private Acute Medical Care in Central London report said that theatre capacity in the capital's private hospital sector is set to increase by around 10% this year as a number of such clinics become operational.
A number of major players have signalled their interest in entering the London private hospital market in recent years.
Earlier this year, UAE based healthcare giant VPS Healthcare announced plans to open a 150-bed cancer centre on the site of the former Royal Masonic Hospital in Hammersmith.
Circle is planning to open a proton beam therapy centre in Harley Street in a joint venture with Advanced Oncotherapy and the Cleveland Clinic has taken out a long-term lease on a 198,000sqft building in London's Grosvenor Place.
Meanwhile, Spire has confirmed it is still looking for a site in the capital - although it denied rumours it has secured a site in Earl's Court.
LaingBuisson said to date there had been little action as the last full service private hospital to open in central London was the Weymouth Street Hospital.
However, three new super-specialty hospitals are set to open in the Harley Street district within the next few months. These are smaller scaled with a total of just seven theatres.
These include hospitals opened by Fortius Group, Nuada Medical Group eye care specialist and Optegra.
Previously clinicians had operated independently in London's Harley Street, but these hospitals have very different management and brand identities, the report said.
Ted Townsend, author of the report said: "For some year's, private hospitals in central London have been moving up the complex care trajectory and the emergence of super specialties is taking that to another level as groups of consultants get together to offer highly specialised services.
"By focusing on the whole care pathway, these companies are effectively cutting out the hospital. They can provide the consultations, the diagnostics, including imaging, and the surgery, meaning that the can make money from the whole patient journey rather than just their consultant fees."
He added: ‘In the past, what you had were basically cottage industries vs large hospital operators but these new providers are bringing in management skills to work alongside clinical expertise.
"So far, the challenge to the existing general hospital is small but the trend towards day surgery means that for a lot of specialties you don't need a full service hospital.
"It won't change the market overnight but the emergence of these operators could continue to chip away at the incumbent market and in five years or so we could see more smaller providers delivering high acuity care in the less capital intensive specialties.'
