NHS spent more than two billion on private mental health hospitals last year

NHS spent more than two billion sending patients to psychiatric units last year, following decades of cuts to beds, new analysis reveals.

The huge sum on private mental health hospitals in 2023 was a £279 million increase on the year before. A report by Laignbuisson, shared exclusively with The Independent, said the lack of beds within the NHS is a major driver of spending on private hospitals, warning healthcare leaders are “stuck between a rock and a hard place.”

The two biggest private providers, Priory Group and Cygnet Health Care, took 509 million and 560 million in profits last year They account for more than 68% of the market, according to the report.

Almost £200 million was spent on private children’s hospitals by the NHS in the same year, figures show.

Tim Read, author of the report, said private mental health hospitals face stable conditions despite the move to more community care due to the “limited capacity” in NHS beds.

“Despite being a policy priority, it is clear the system is struggling to get a grip on out-of-area placements. With NHS Mental Health Trusts’ seeing occupancy rates climb to nearly 90 per cent, commissioners are stuck between a rock and hard place – either admit locally to an overcrowded ward or place a vulnerable person a long way from the local support networks.

“The NHS has seen its own bed capacity dwindle over decades and with significant re-investment unlikely given other priorities, the way that local areas engage collaboratively with the independent sector on how to best meet local need becomes ever more important.”

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Source: The Independent, 20 December 2024