Private Hospitals: Strategic M&A Reshapes the UK Market

Key UK Private Hospital M&A Since 2022

The UK private hospital market is being reshaped by a wave of high-conviction M&A and consolidation. A series of acquisitions since 2022 reflects a decisive shift towards scale, control, and complexity, as investors move to build networks that can meet rising demand from both self-paying and insured patients, while also absorbing increased NHS activity.

Bupa has re-entered the hospital sector for the first time since 2008, acquiring King Edward VII and New Victoria Hospital. These additions will allow the insurer to integrate diagnostics, specialist care, and surgery within its own ecosystem, offering members a faster and more seamless treatment experience. Narayana Health’s acquisition of Practice Plus Group’s hospital portfolio marks a rare but significant inbound move, giving the Indian operator a UK-wide surgical platform and access to high-volume NHS partnerships.

US Providers in London: A Growing Influence

The London market continues to attract the most attention, particularly from US hospital groups. HCA, Cleveland Clinic, Northwestern, Mayo Clinic, and Cedars-Sinai now control or collaborate across almost half of independent capacity in the capital. These groups are importing high-acuity infrastructure, employing consultants directly, and delivering joined-up clinical pathways, challenging the UK’s traditional model of private care. Cleveland Clinic is developing a new cancer centre to complement its flagship hospital, while HCA has opened a major new site in Birmingham, operating in partnership with University Hospitals Birmingham NHS Trust.

Regional Expansion: Private Hospital Growth Beyond London

Outside London, investor appetite remains strong. Phoenix Hospital Group’s acquisition of One Healthcare expands its footprint into Kent and Hertfordshire, while Abu Dhabi’s PureHealth has acquired Circle Health’s national network of over 50 hospitals. These moves reflect a broader trend towards diversified networks capable of delivering both general and specialist care.

Market Size and Revenue Trends

Private medical insurance volumes continue to rise, with over 660,000 insured admissions recorded in 2024. NHS-funded care now represents close to one-third of private hospital income, highlighting the sector’s growing role in supporting public capacity. Spire Healthcare’s ongoing strategic review suggests that further consolidation is likely, with strategic buyers and financial sponsors both circling. The direction of travel is increasingly clear. Investors are backing providers with the scale, specialisation and digital infrastructure to take on more complex care, and deliver it with pace.