A Consultative Discussion on 2025 Trends and Strategic Considerations
“VAT uncertainty is the elephant in the room — providers must scenario-plan now to protect margins and patient choice.” — David Williams, Partner & Head of Healthcare Finance, LaingBuisson, Q3 2025 Market Briefing, 22 October 2025.
As of 17 November 2025, three issues dominate boardroom conversations across private hospitals, care home groups and specialist clinics:
- HM Treasury’s ongoing review into applying 20 % VAT to private health and care insurance premiums (consultation expected Q1 2026)
- CQC financial sustainability questions now asked at every inspection under the new Single Assessment Framework
- Private equity deal flow back to 2023 peak levels — 28 transactions announced YTD with multiples averaging 11.8× EBITDA (LaingBuisson Healthcare M&A Report, November 2025)
On X, @HealthFinanceUK and @PrivateCareUK are debating the new “CQC-readiness” insurance products launched in October/November 2025 that cover legal fees and re-inspection costs if ratings drop. LinkedIn posts from the Recruitment & Employment Confederation and specialist brokers highlight lenders now demanding 18–24 months cash runway (up from 12 months pre-2023), while awards season has seen Howdens, Ansvar and specialist healthcare divisions of Allianz sweep the boards.
What This Means for Your Organisation — Tailored Implications
| Provider Type | Primary Risk (2026) | Opportunity if You Act Early |
| Private hospitals & clinics | Potential 20 % insurance premium hike → reduced insured patient flow | Lock in fixed-price policies now + new regulatory protection covers |
| Care home groups | Lenders refusing refinance without 18-24 month runway | 5-day health-checks revealing £1 m–£4 m of hidden value |
| All providers | CQC financial sustainability questions triggering enforcement | “CQC-readiness” insurance now reimburses legal & re-inspection costs |
Reflective Steps to Consider — A Consultative Roadmap
Immediate Horizon (November – December 2025): Protect and Prepare Convene a short “Financial Resilience Workshop” before Christmas:
- Stress-test your 2026-27 budget against a 20 % insurance cost increase scenario — many groups discover they are only 9–12 months liquid, not 18–24.
- Obtain quotes for the new regulatory protection policies launched October/November 2025 — several underwriters are offering “no rating drop = premium refund” incentives before year-end.
- Commission a rapid 5-day financial sustainability health-check — specialist consultancies (e.g. RSM, Knight Frank Healthcare, LDC Care Consulting) still have pre-Christmas availability and typically uncover £1 m–£4 m of latent value in working capital and property.
- If you are even contemplating sale, refinance or investment in the next 24 months, request a confidential valuation now — multiples are at their highest since 2023 and the December rush is starting.
Near-Term Momentum (January – March 2026): Strengthen and Position Update board papers with VAT-contingency plans and insurance mitigation strategies. Begin lender or investor beauty-parades if planning activity in 2026-27 — groups that start in Q1 secure 0.5–1.0× higher multiples than those rushing in Q3/Q4.
Longer-Term Vision (April – September 2026): Capitalise and Grow Use the health-check findings to refinance on better terms, release capital for expansion, or prepare a controlled sale process at peak valuation.
Specialist insurance brokers, healthcare accountants and M&A advisers are actively seeking new provider relationships before the traditional December shutdown. Care Circle Network is making these connections every day.
Wrapping the Conversation
What single financial move — insurance, runway, valuation or refinance — would give your board the greatest peace of mind heading into 2026? We’re here when you’re ready to talk.
