According to the British Medical Association, the latest Referral to Treatment figures for May 2024 indicated the waiting list had 7.6 million cases, with approximately 6.38 million patients awaiting treatment. Consequently, employees are looking for alternative healthcare solutions. The Independent Healthcare Providers Network Survey 2023 found 25% of organisations offered healthcare benefits in 2023, with another 20% planning to introduce them in 2024. Health benefits have become a key factor for people when choosing a job. Given these trends, should organisations consider offering private healthcare to their employees?

As things stand, the appeal of prompt, affordable medical services is clear. Private healthcare offers employees benefits such as virtual GP services for quick diagnoses, preventing minor issues from becoming major crises. Mental health services provided by private healthcare are particularly in demand. With the NHS struggling to meet non-urgent treatment demands, access to licensed mental health therapists and counselling through private insurers is essential. According to Mental Health UK 1 in 5 employees took time off work last year, due to mental health.

Offering private healthcare benefits is not just advantageous for employees; it also brings significant benefits to the organisation. Primarily, it enhances employee retention and attraction. In today’s competitive labour market, providing comprehensive healthcare benefits can set an organisation apart, making it an attractive option. Employees are also more likely to stay with an employer that shows an interest in their wellbeing.

Furthermore, private healthcare can reduce absenteeism. When employees have quick access to medical care, they can address health issues promptly, reducing the likelihood of extended sick leave. This ensures that the workforce remains productive and engaged, minimising disruptions to business operations.

Private healthcare can also reduce the costs associated with long-term sickness. Early intervention and continuous health monitoring allow issues to be identified and treated before serious problems arise, resulting in a happier work environment and potentially less absence.

It is essential to consider all aspects before taking the plunge! Private healthcare has some limitations. Its value relies on employee usage, and if underutilised, it offers a poor return on investment. It often excludes certain conditions, such as pre-existing or chronic illnesses, leaving some employees to rely on the NHS or pay out-of-pocket. Tailoring a plan can be challenging, dissatisfaction and low uptake can be a hurdle. To maximise the benefits, it is crucial to regularly review the chosen package with employees and encourage them to use it, ensuring it remains relevant and valuable.

Each private healthcare provider offers different plans and levels of care, each with varying contributions towards treatments and the number of private appointments. Careful comparison can uncover a plan that best meets the diverse needs of an organisation’s workforce, ensuring comprehensive coverage while managing costs effectively.

Organisations now have a unique opportunity to support their employees by offering private healthcare benefits. While there are challenges and costs associated with private healthcare, the potential benefits of employee satisfaction, retention, reduced absenteeism, and overall productivity make it a compelling option. By carefully selecting and managing private healthcare plans, employers can create a supportive and healthy work environment that benefits both employees and the organisation as a whole.