Is the independent sector the overlooked market for both pharma and health tech?

The UK healthcare landscape is undergoing a profound transformation. While the NHS remains the cornerstone of care delivery, the independent sector is emerging as a dynamic, hybrid ecosystem, blending NHS-contracted services, insured pathways, and direct-access options. This evolution presents significant opportunities for pharmaceutical and health tech organisations to engage new patient channels, accelerate innovation, and shape the future of care.

A changing composition of patients and providers

The independent sector is no longer a niche for elective procedures or cosmetic treatments. It now spans complex clinical services, diagnostics, and chronic disease management. Recent data shows that private medical insurance admissions have grown steadily, with over 900,000 new PMI holders since 2020, while self-pay remains resilient despite economic pressures. Patients increasingly seek faster access, advanced therapies, and personalised experiences. Notably, over half of private patients in 2024 had initially sought NHS care but turned to the independent sector due to long waits, a trend especially pronounced among younger adults and in regions including London and the South East. This hybrid approach by patients is becoming more pronounced as they switch between NHS, PMI and self-pay care.

Providers too are diversifying. Large hospital groups, specialist clinics, and digital-first platforms are investing in robotics, AI diagnostics, and virtual care models to meet demand. The number of CQC-registered private GP services exceeded 550 by mid-2024, and major players such as Spire, Circle/BMI, Bupa, and HCA have expanded their footprints. This hybridisation means patients move fluidly between NHS, private, and digital pathways. For pharma and health tech, this creates new touchpoints for engagement, whether through independent hospitals trialling innovative therapies or tech-enabled providers offering remote monitoring and personalised care.

Independent providers as early adopters and innovation incubators

Independent Sector Providers (ISPs) are uniquely positioned to act as testbeds for innovation. Free from some of the structural constraints of the NHS, they can adopt new treatments, devices, and digital solutions at pace. For example, Cleveland Clinic London became the first UK hospital to introduce pulsed-field ablation technology for atrial fibrillation, ahead of any NHS hospital. This agility extends beyond the UK, as many independent providers operate internationally, creating pathways for pharma and health tech to scale innovations across borders.

ISPs also facilitate faster decision cycles. Unlike the NHS, which must undergo lengthy procurement and regulatory processes, private providers can approve promising new drugs or devices as soon as they are MHRA-approved. Global networks amplify this effect, enabling rapid transfer of best practices and innovations. Joint ventures, such as The Christie NHS Foundation Trust’s partnership with HCA Healthcare, have pioneered technologies like robotic surgery for complex cancers, demonstrating how independent involvement can drive innovation that ultimately benefits the NHS.

Health tourism and global patient access further enhance the sector’s role as an innovation incubator. International patients often seek treatments not available at home, and private UK clinics can run early access programmes for new therapies. Investment in specialised infrastructure such as advanced radiotherapy centres and genomic medicine labs allows pharma and biotech companies to deliver novel treatments and gather real-world evidence before wider NHS adoption.

The rise of the consumer, retail and pharmacy join the independent sector

The independent sector’s evolution is inseparable from the rise of the empowered health consumer. Today’s patients are no longer passive recipients of care, they are informed, proactive, and increasingly expect healthcare to mirror the convenience, personalisation, and digital integration they experience in other sectors. The modern health consumer demands seamless hybrid journeys and services that fit lifestyle needs. This shift is reflected in the rapid growth of retail health offerings, with supermarkets and high-street pharmacies now central players in prevention, wellness, and even prescription management. ASDA’s launch of weight loss services through its pharmacy network means that the independent healthcare sector now arguably includes major retailers, not just traditional clinics or hospitals.

The Simon-Kucher Better Health Report 2025 reinforces this trend, showing that 81% of UK consumers use some form of preventive aid (digital or non-digital), with pharmacies and mass-market retailers remaining the cornerstone of trust for both products and advice. As the boundaries between healthcare, retail, and digital blur, the independent sector’s future will be shaped as much by consumer expectations and behaviours as by provider or policy decisions. For pharma and health tech, this means engagement strategies must extend beyond hospitals and clinics to include retail and digital channels, meeting consumers wherever they are on their health journey.

Collaborating for impact

Collaboration between pharma, health tech, and independent providers is essential.  

Some potential opportunities include:

• Joint innovation programmes to pilot new therapies and digital tools

• Data partnerships leveraging ISP patient datasets for insights into treatment efficacy and health outcomes

• Integrated care models combining pharmaceutical interventions with tech-enabled monitoring and personalised support

These partnerships work best when grounded in shared objectives: improving patient access, reducing system pressures, and delivering measurable health benefits.

Ethical and practical considerations

Engaging with the independent sector brings responsibilities. Transparency, equity, and compliance must underpin every interaction.

Key ethical principles include:

• Equity and access: Collaboration must avoid exacerbating health inequalities. Innovations proven effective in private settings should transition to wider NHS use if feasible

• Transparency and governance: All partnerships should be disclosed and comply with codes of practice, such as the ABPI Code, to maintain trust and integrity

• Clinical integrity: Decisions must remain patient-centric ensuring broad applicability of outcomes

• Data sharing: Insights from private sector innovation should feed into public health knowledge, with clear agreements on data ownership and sharing

• Alignment with public health goals: Collaboration should support national health objectives, such as early diagnosis and preventive care

• Reinvestment and knowledge transfer: Profits and learnings from private sector partnerships should help fund broader health initiatives and benefit all patients

Why this matters now

With NHS waiting lists still exceeding an estimated 6.26 million people (7 million pathways), and demand for elective care soaring, the independent sector is a critical partner in delivering timely, high-quality care. For pharma and health tech, this is a moment to rethink engagement strategies, embrace collaboration, and unlock new routes to market. The independent sector should be viewed not as an alternative to the NHS, but as a complementary arena that uplifts the whole healthcare landscape.

The independent sector offers fertile ground for advancing medicine and care delivery but must be navigated with an unwavering focus on patient welfare, fairness, and partnership with the public system. If pharma and health tech engagements are transparent, equitable, and evidence-driven, the independent sector can help drive healthcare innovation in the UK, provided companies do so with a commitment to equity and collaboration.

ZPB helps organisations navigate this complex landscape, connecting insights, stakeholders, and opportunities to drive meaningful impact. Get in touch to find out how we can support you.