Happy or sad? Striking differences in optimism in the private hospital sector in Europe
British private hospitals are the most gung-ho in Europe and the Italians the most pessimistic, according to the inaugural Hospital Sentiment Research report from GE Capital. The report surveyed 380 senior executives in 8 countries (Europe’s top five plus Switzerland, Australia and Japan). Half worked in the private sector.
The British were by far the most buoyant. No fewer than 80% of private hospital execs describe themselves as optimistic for future profitability and 13% neutral. The corresponding figures for the NHS were 29% and 39%. No wonder 47% of UK private hospitals expect rapid growth and a further 46% expect moderate growth.
Italy was the worst with just 19% optimistic on future profitability in the private sector and a further 69% neutral. Those figures are even worse in the public sector where the equivalents at 12% and 52%. No wonder 56% of private hospitals expect moderate growth and 25% limited growth.
Spanish private hospitals are almost as happy as the Brits, with 70% optimistic and 27% neutral in the private sector – much higher than the 36% and 28% recorded by the public sector.
France was fairly negative with only 32% of the private sector optimistic and 49% neutral. In contrast, the public sector, buoyed up by a socialist government is more optimistic at 35% and 60%.
Switzerland and Germany are moderately optimistic with German optimism at 55% in the private sector with 30% neutral, compared to 27% optimism and 46% neutral in the public sector. Two thirds, 67% of the Swiss private hospital executives are optimistic and 11% neutral, compared to 55% and 36% respectively in the public sector.
Outsourcing seems to be in reverse to optimism. No fewer than 71% of Italian hospitals are preparing to outsource medical services compared to just 13% in Switzerland.
We were somewhat surprised by the optimism in the UK, given the very real prospects of a Labour government in 2015. Perhaps it simply demonstrates that the private sector would expect Labour to spend heavily and achieve little, pushing more patients to the private sector.
The degree of pessimism in Italy and France is unsurprising. Private hospitals in both countries are heavily dependent on hostile public payors. It is likely that smaller private players in these countries are deeply pessimistic, whilst the bigger private consolidators are more optimistic!
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