Not even the furore surrounding the nation's railways has distracted media attention away from the s...
Not even the furore surrounding the nation's railways has distracted media attention away from the state of the NHS. Despite Labour's promise to modernise the NHS, survey after survey, opinion poll after opinion poll all suggest that consumer confidence in the health service is at an all-time low.
Winter is never a good time for the NHS, with flu epidemics placing a further strain on an already stretched service. But even without that the year has not got off to a good start for Alan Milburn. Research from Gallup has found that one in five NHS patients is not happy with the service they receive in hospital. Four years ago, almost nine out of 10 thought the NHS was a success, compared with just three-quarters today. So it is not surprising that the public is voting on its feet and expressing dissatisfaction with the NHS by seeking treatment in the private sector. According to new research among GPs from Medix UK, as many as 100,000 NHS patients paid for surgery in the private sector last year to jump NHS queues, a figure experts believe falls short of the real numbers.
At the end of 2001, the news that the NHS had struck a deal with BUPA, enabling NHS patients to be treated privately in the Redwood Hospital, hit the headlines in a big way. But with the current arrangement only involving one hospital with an aim to treat about 5,000 patients a year, the contract will not have a significant impact on national waiting lists.
In Scotland, the situation may be looking a little brighter. The Scottish Executive has set up a unit that aims to tackle the problem of long waiting lists, identifying problem areas and drawing on external resources to help patients off waiting lists and into treatment.
So it is time for the Government to stop burying its head in the sand and come up with some practical solutions to the problems facing the NHS, rather than ad hoc initiatives that do little to tackle the root of the problem. But because the problem is not one that can be solved by a cash injection, change will be a long time coming.
In the meantime, IFAs will be faced with clients, who while they may not want to take out full blown PMI, would be interested in paying for treatment if it means coming off a waiting list. Yet treatment in the private sector does not come cheap and so helping clients set up an investment vehicle for health costs is an excellent opportunity for IFAs. There is also a range of high excess PMI products now available, offering those willing to pay for treatment. An element of stop-loss cover, providing clients with the peace of mind that costs will not spiral out of control.
Self-pay will no doubt be a big growth area in coming years and those IFAs that identify the opportunities it presents could be on to a winner.
