The opening of Cleveland Clinic's 184-bed hospital in London may create a glut of private beds in the city, according to an analyst who spoke to The Wall Street Journal.
Ted Townsend, who writes an annual report on private healthcare in London for analyst and consulting firm LaingBuisson, told the Journal that adding 14 percent capacity to London's private hospital system at a time of lagging demand could create an abundant supply of beds. The Journal estimates there are about 1,300 private hospital beds in London.
"While overseas patients will come back to London, the overall number of patients won’t be growing," Mr. Townsend, who estimated the Cleveland Clinic is spending $1.37 billion on the London project, told the Journal. "We will have a big overcapacity problem."
Most citizens in the U.K. get medical care from the National Health Services, which is government funded. However, many U.S.-based companies have developed private hospitals in London.
The pandemic has lessened demand for this private-hospital business, which often targets wealthy patients and those with private health insurance. The revenue for these facilities fell because many pandemic-related restrictions prevented patients from Asia, the Middle East and other countries from traveling to receive care. The decline in revenue has raised questions about how the Cleveland Clinic facility will fare.
A Cleveland Clinic spokesperson said the London facility represents a great opportunity and its high world rankings and research excellence will help it attract patients.
"We believe London is, and will remain, one of the leading healthcare centers in the world and represents a great opportunity," the spokesperson told the Journal.
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