Private hospitals warn of withdrawing NHS treatment over cost cap

Private hospitals have warned they may stop treating NHS patients due to a proposed cost cap by NHS England, raising concerns over delays in reducing waiting lists.

The NHS had agreed to pay private hospitals a fixed price per patient to increase treatment capacity.

However, NHS England plans to introduce a cap on total payments in 2025-26 to control costs while requiring private hospitals to continue accepting referrals.

David Hare, chief executive of the Independent Healthcare Providers Network, said the proposal was “completely unworkable” and could lead to fewer NHS-funded treatments, longer waiting times, and an end to patient choice.

He warned that private hospitals might withdraw from the deal, arguing that the NHS was failing to provide fair payments.

Some local health boards have already introduced limits, with Suffolk and North East Essex capping payments at £100,000 per company, which could significantly reduce the number of NHS patients treated.

A private hospital source told The Times that the NHS was imposing a “one-way right” to limit payments while still referring unlimited patients, making it financially unsustainable.

Health secretary Wes Streeting has supported patient choice and competition between NHS and private providers.

The Department of Health said discussions between NHS England and private hospitals are ongoing, with the government committed to maintaining patient choice under NHS terms.