After a return to relative confidence in 2014, the UK healthcare sector’s mood darkened somewhat in 2015. The Conservative Party’s victory at the polls, coupled with the government’s announcement of a comprehensive review of healthcare spending, dimmed hopes of increased funding. Heightened regulatory scrutiny and a chronic shortage of healthcare professionals added to the downbeat atmosphere.
At a glance
- Healthcare staffing companies earned bumper profits as healthcare providers scrambled to fill their talent gaps.
- Meanwhile, healthcare operators that had become overly reliant on agency staff saw a profit squeeze.
- The government plans to rein in the staffing companies, but government action alone cannot resolve the shortage of skilled healthcare professionals.
- Nevertheless, a significant number of well-managed healthcare operators found innovative ways to overcome their challenges and even attract growth capital to become market leaders in their sub-sectors.