EXCLUSIVE: Tax reforms could boost role of business in preventative healthcare

A new report published today calls for tax reforms to employer-funded healthcare to help ease pressure on the NHS.

Chris Bailey (c) Marsh McLennan

Chris Bailey (c) Marsh McLennan

Rethinking public-private collaboration in UK healthcare, published by Marsh McLennan, a professional services firm in the areas of risk, strategy and people, says the reform of the tax treatment of employer-funded healthcare would help boost employee access to preventative healthcare. 

Chris Bailey, Mercer Marsh Benefits' UK managing director, said: ‘To secure the future of the NHS, we need to improve co-operation between the public and private health sectors. As part of this, companies should be encouraged to increase healthcare provision through tax reforms. This could lead to the adoption of more preventative healthcare schemes, resulting in a healthier, happier and more productive workforce and relieving pressure on the NHS.'

The existing UK tax policy creates a barrier for employers who want to provide healthcare benefits to their employees. For every £1 employers spend on healthcare, they incur costs of up to £1.26 due to the taxes imposed on employer-funded health insurance policies.

Marsh McLennan's findings are drawn from consultations with senior healthcare professionals, including NHS Trust and NHS England executives, clinical leaders, insurers and private sector health providers.

The report also highlights the importance of introducing national standards for patient consent and data sharing across the public and private health sectors. Doing so could enable general practitioners, diagnostic teams and specialist clinicians to more easily share information, which could improve the triage process, enhance preventative care and boost efficiency, especially in time-sensitive areas such as cardiology.

It also identifies workforce planning, digital transformation and delivering healthcare through specialised regional hubs as being crucial to improving NHS provision and particularly conducive to public–private sector co-operation. It proposes innovative solutions, such as rotational staff programmes across NHS trusts and private providers, alongside shared training platforms, and expanding centres of excellence, especially where volume improves outcomes for routine procedures. Matching clinicians' expertise to patient needs, or skills matching, is also seen as vital to building a flexible, resilient workforce capable of meeting rising demand.

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