Diagnostics Market Report, 2nd Edition

Diagnostics Market Report, 2nd Edition

LaingBuisson has published the second edition of its Diagnostics UK market report. While imaging and pathology (defined here as all clinical lab services including cellular pathology) are very different disciplines, both are key to diagnostics, with doctors often relying on a combination of the two.

Written after the peak of the Coronavirus pandemic, the report offers a comprehensive view on a high value, growing market that has returned to a normal steady state. While diagnostics was impacted less heavily than other markets, the market awaits the results of proposed government funding.

Among the varying data collated in this latest report is expert commentary, which poses pertinent questions of why, for example, is the NHS’s purchasing power not more co-ordinated? Historically, each NHS trust has managed its own imaging and pathology services. Efforts for consolidation began in 2017 but progress towards this has been slow.

The report also offers international comparison, as we highlight that the UK has around half the level of radiologists per capita than the US, Germany and France, with little sign that this will be reversed in the next decade, given the time taken to train these professionals. The UK also has very high utilisation of MRI and CT scanners, which on average are older and nearer to the end of their useful operational lives.

In order to match the high demand of the sector, government investment in the NHS diagnostic infrastructure must be accompanied by investment in training. This will help address the shortage of professionals working in fields such as radiology and histopathology.

This report is key reading for anyone in a decision-making role relating to the UK diagnostics market.


EXECUTIVE SUMMARY AND HIGHLIGHTS
1. MARKET
1.1 Definitions and scope
1.1.1 Imaging
1.1.2 Pathology
1.1.3 Health screening
1.2 Size
1.2.1 Imaging
1.2.2 Pathology
1.2.3 Genetic testing
1.3 Historic growth
1.3.1 Imaging
1.3.1.1 NHS organisations
1.3.2 Pathology
1.3.3 Private hospitals
1.4 Segmentation/funding, by payor type
1.5 Demand drivers
1.5.1 Impact of Covid
1.5.1.1 The overall impact of Covid on the healthcare system
1.5.1.2 The consequences for diagnostics
1.5.1.3 Covid testing
1.5.1.4 The impact of Covid on waiting lists for diagnostics
1.5.1.5 The other long-term consequences of Covid on diagnostics
1.6 Supply
1.6.1 Equipment
1.6.2 Staffing
1.7 Operating and investment models
1.7.1 Imaging
1.7.1.1 NHS contracts
1.7.1.2 Private hospital contracts
1.7.1.3 Independent imaging centres
1.7.1.4 High-end screening services
1.7.2 Image reporting
1.7.3 Pathology
1.7.3.1 NHS joint ventures/full outsourcing
1.7.3.2 Full service private labs
1.7.3.3 Private hospital outsourcing contracts
1.7.4 Histology reporting
1.7.5 Specialist labs
2. POLITICS AND REGULATION
2.1 Current regulators and regulation
2.1.1 Care Quality Commission
2.1.2 Health and Safety Executive (HSE)
2.1.3 Ionising Radiation Medical Exposure Regulations (IRMER)
2.1.4 The Quality Standard for Imaging (QSI)
2.1.5 UKAS ISO15189
2.1.6 Medicines and Healthcare Products Regulatory Agency (MHRA)
2.1.7 Human Tissue Authority (HTA)
2.2 Royal colleges and professional bodies
2.3 Industry associations
2.3.1 British Institute of Radiology
2.3.2 British In Vitro Diagnostics Association (BIVDA)
2.3.3 MedTech Europe
3. PAYORS
3.1 Payor groups
3.1.1 NHS
3.1.2 Local authorities
3.1.3 Private hospitals and providers
3.1.4 Private Medical Insurers (PMI)
3.1.5 Self pay but medically referred
3.1.6 Direct to consumer or b2c
3.1.7 Other payer groups
3.1.7.1 Occupational health
3.1.7.2 Paternity testing
3.1.7.3 Judicial testing
3.1.7.4 Elite sports
3.2.1 NHS
3.2.1.1 Imaging
3.2.1.2 Private Medical Insurers (PMI) and self-pay
3.2.1.3 Pathology
3.2.2 Local authorities
3.2.3 Private providers
3.2.3.1 Imaging
3.2.3.2 Pathology
3.2.4 Private Medical Insurers
3.2.5 Self-pay but medically referred
3.2.6 Direct to consumer
4. MAJOR PROVIDERS
4.1 Market concentration by segment
4.1.1 Image generation
4.1.2 Image reporting
4.1.3 Pathology laboratory services
4.1.4 Pathology reporting
4.2 Economies of scale and scope
4.2.1 Imaging
4.2.2 Imaging reporting
4.2.3 Pathology
4.2.4 Pathology reporting
4.3 Major provider profiles
4.3.1 Image generation service providers
4.3.1.1 Alliance Medical
4.3.1.2 Diagnostic Healthcare
4.3.1.3 InHealth
4.3.1.4 Medical Imaging Partnership
4.3.1.5 Mediscan
4.3.1.6 Medneo
4.3.2 Image reporting agencies
4.3.2.1 4Ways
4.3.2.2 DMC Healthcare (fka Dulwich Medical Centre)
4.3.2.3 Everlight Radiology
4.3.2.4 Medica plc
4.3.2.5 Radnet
4.3.2.6 Unilabs plc
4.3.3 Laboratory service providers
4.3.3.1 Alderly Lighthouse Laboratory
4.3.3.2 Check4Cancer
4.3.3.3 Eurofins Biomnis
4.3.3.4 FlouretiQ
4.3.3.5 London Medical Laboratory
4.3.3.6 Nationwide Pathology
4.3.3.7 Medilims
4.3.3.8 Melio
4.3.3.9 Micropathology
4.3.3.10 Numan
4.3.3.11 Prenetics
4.3.3.12 Serco/Synnovis
4.3.3.13 Sonic Healthcare (through UK subsidiary The Doctors Laboratory)
4.3.3.14 Synlab
4.3.3.15 Thriva 141 LaingBuisson Diagnostics, second edition vii
4.3.3.16 Truepill
4.3.3.17 Xyla Diagnostics
4.3.4 Major international diagnostic service companies not currently present in the UK
4.3.4.1 Affidea
4.3.4.2 Alab
4.3.4.3 Amedes
4.3.4.4 Canon Medical Systems
4.3.4.5 LabCorp
4.3.4.6 Limbach Group
4.3.4.7 Medicover
4.3.4.8 Quest Diagnostics
5. KEY SUPPLIERS TO THE MARKET
5.1 Major imaging suppliers
5.1.1 Canon
5.1.2 GE Healthcare
5.1.3 Hitachi
5.1.4 Philips
5.1.5 Siemens
5.2 Pathology
5.2.1 Major full laboratory/managed equipment service providers
5.2.1.1 Abbott
5.2.1.2 Beckman Coulter
5.2.1.3 Roche
5.2.2 Histopathology reporting service providers
5.2.2.1 Backlogs (part of HCA Laboratories)
5.2.2.2 Cellular Pathology Services
5.2.2.3 Diagnexia
5.2.2.4 Digital Pathology Partners
5.2.2.5 Pathognomics (Cyted)
5.2.2.6 Poundbury Cancer Institute
5.2.2.7 Source Bioscience
5.2.3 Other significant laboratory suppliers
5.2.3.1 Agilent (niche products including mass spectrometry)
5.2.3.2 Becton Dickinson (sample collection systems, cytology systems, microbiology automation)
5.2.3.3 bioMérieux (Microbiology products)
5.2.3.4 Illumina (genetic sequencing)
5.2.3.5 Oxford Nanopore
5.2.3.6 Roper Technologies
5.2.3.7 Sysmex (haematology products)
5.2.3.8 Thermo Fisher Scientific
5.4 Diagnostic software/IT providers
5.4.1 Citadel Health
5.4.2 Dedalus
5.4.3 Xlab
6. INVESTORS
6.1 Investors involved in the sector and their portfolios
6.2 Overseas quoted groups
6.2.1 Life Healthcare
6.2.2 Sonic Group
6.2.3 Synlab
6.2 Private equity funds and their portfolios
6.2.1 Apax
6.2.2 A.P. Moller Holding
6.2.3 Apposite Capital
6.2.4 Cinven
6.2.5 ECI Partners
6.2.6 Livingbridge
6.2.7 Seneca Partners Home
6.2.8 Synova
6.3 Major International diagnostic service groups not currently involved in the
6.3.1 Affidea
6.3.2 Alab
6.3.3 Amedes
6.3.4 LabCorp
6.3.5 Medicover
6.3.6 Quest
6.4 Exits, entries, acquisitions and other key events
7. MARKET POTENTIAL
7.1 Future need, prospects
7.2 New technology
7.2.1 Genomic testing
7.2.1.1 BGI Genomics (China)
7.2.1.2 Centogene
7.2.1.3 Exact Sciences
7.2.1.4 Foundation Medicine
7.2.1.5 Grail
7.2.1.6 Guardant
7.2.1.7 Helix
7.2.1.8 Illumina
7.2.1.9 Myriad Genetics
7.2.1.10 Natera
7.2.1.11 Sema4
7.2.1.12 Agendia
7.2.1.13 Biotheranostics
7.2.1.14 Exosome Diagnostics
7.2.1.15 Inivata
7.2.1.16 MDx Healthcare
7.2.1.17 MLL (Munich Leukaemia Laboratory)
7.2.1.18 Nanostring Technologies
7.2.1.19 NIMGenetics Spain
7.2.1.20 Omniseq
7.2.1.21 Oncologica UK
7.2.1.22 OncoDNA
7.2.1.23 Oxford Cancer Biomarkers (OCB)
7.2.1.24 Personal Genome Diagnostics
7.2.1.25 Veracyte
7.2.1.26 Eurofins
7.2.1.27 LabCorp (US)
7.2.1.28 Quest (US)
7.2.1.29 Sonic (TDL parent)
7.2.1.30 Source Bioscience
7.2.1.31 Synlab
7.2.2 Digital histology
7.2.3 Artificial Intelligence (AI)
7.2.3.1 Aidance
7.2.3.2 Behold AI
7.2.3.3 Google
7.2.3.4 Kheiron Medical
7.2.3.5 Qure
7.2.3.6 Signify Research
7.2.3.7 Ibex
7.2.4 Other innovative technology
7.2.4.1 Healthy.io
7.2.4.2 Vitestro Vitestro
7.3 International comparisons 259
7.4 Market volume, pricing and value forecasts
7.4.1 Demographics
7.4.2 Macro economics
7.4.3 NHS policy/post-Covid recovery
7.4.4 Developments in AI and medical technology
7.4.5 Consumerism
7.5.6 Employer attitude to benefits/PMI
7.5.7 Medical practice
7.6 Conclusions
APPENDIX 1. GLOSSARY
APPENDIX 2. REGULATORS
APPENDIX 3. TRADE BODIES AND ASSOCIATIONS
LIST OF TABLES
Table ES1 ‘Wholesale’ imaging market, £m, UK, 2021 (cost to hospitals of providing/outsourcing services)
Table ES2 ‘Wholesale’ pathology market, £m, UK, 2021 (cost to hospitals of providing/outsourcing services)
Table 1.1 National screening programmes, England, 2020/21
Table 1.2 Diagnostic market, £m, UK, 2021
Table 1.3 Volume of images/scans (000s) by modality, UK, 2021 (est.)
Table 1.4 Proportion of images generated by in-house vs. outsourced to imaging companies, 2021
Table 1.5 Reporting of NHS images (000s) for NHS organisations, 2021/22 (est.)
Table 1.6 ‘Wholesale’ volume and value of image generation market, 2021
Table 1.7 Reporting of images (000s) market value, 2021
Table 1.8 Consultant radiologist primary and secondary interest, 2018
Table 1.9 NHS and private pathology test volumes, number of tests undertaken in laboratories (millions), UK, 2021/22
Table 1.10a Number of NHS tests (millions) split between direct access (GP requested) and hospital, UK, 2021/22 (est.)
Table 1.10b NHS pathology test volumes (millions) and cost, £m, 2021 (est.)
Table 1.11 NHS and private pathology values, cost/value of tests, £m, UK, 2021 (est.)
Table 1.12 NHS lab costs (including outsourced), £m, and staffing, 2021
Table 1.13 NHS biochemistry tests, UK, 2021 (est.)
Table 1.14 NHS haematology tests, UK, 2021
Table 1.15 NHS immunology tests, UK, 2021
Table 1.16 NHS microbiology tests, UK, 2021
Table 1.17 NHS cellular pathology tests, UK, 2021
Table 1.18 NHS organisations scans (000s) by modality, UK, 2012‒2021
Table 1.19 Private hospital/clinic image generation (000s) by modality, UK, 2012-2021
Table 1.20 NHS radiology tariffs (examples of high volume images), £ nominal, 2012/13‒2020/21
Table 1.21a NHS organisations reporting by modality, 000s, UK, 2012‒2021
Table 1.21b NHS organisation average cost of reporting per scan by modality, £ nominal, 2012‒2021
Table 1.21c NHS organisation value of reporting per scan by modality, £m (nominal), 2012‒2021
Table 1.22 Private hospitals/clinics and PPUs, reporting by modality, 000s, UK, 2012‒21
Table 1.23 NHS hospital pathology test volumes, millions, UK, 2012‒21
Table 1.24 Private hospital/clinic pathology test volumes, millions, UK, 2012-21
Table 1.25 Retail market, by payor, £m, 2021
Table 1.26 Self-pay rates in private hospitals and clinics, £ per scan, 2021
Table 1.27 Typical imaging rates paid by PMI to private hospitals, £ per scan, 2021
Table 1.28 Typical pathology rates paid by PMI to private hospitals, £ per test, 2021
Table 1.29 Covid testing, million tests per quarter, UK, 2020‒2022
Table 1.30 Average tests per day, 000s, UK, 2020‒2022
Table 1.31 NHS England patients waiting over 13 weeks for diagnostic tests, UK, 2018‒2022
Table 1.32 Radiologists employed in the NHS, UK, 2014‒2021
Table 3.1 Medica reporting prices, £ nominal/scan, 2013‒2018
Table 4.1 Image generation market shares, £m, 2021 (est.)
Table 4.2 Image generation market, estimated market shares, %, 2021 (est.)
Table 4.3 Image reporting market shares, £m and market share %, 2021
Table 4.4 Pathology laboratory services revenues by segment, £m, 2021
Table 4.5 Laboratory company and subsidiary/JV company accounts, £000s, 2018‒21
Table 4.6 Histopathology reporting market shares, £m and %, 2021
Table 6.1 Diagnostic market key events, 2007‒2022
Table 7.1a MRI scans per 1,000 population (ranked by 2019 to avoid Covid distortions)
Table 7.1b MRI scanners per million population (ranked by 2019 to avoid Covid distortions)
Table 7.2a CT scans per 100 population (ranked by 2019 to avoid Covid distortions)
Table 7.2b CT scanners per million population (ranked by 2019 to avoid Covid distortions)
Table 7.3 PET CT Scans per 1,000 population (ranked by 2017)
Table 7.4 Imaging equipment utilisation, ranked by MRI
Table 7.5 Diagnostic consultants per 100,000 citizens
LIST OF FIGURES
Figure ES1 Imaging market, UK
Figure ES2 Pathology market, UK
Figure 1.1 NHS lab costs (including outsourcing), UK, 2021 (est.)
Figure 1.2 NHS organisations scans (000s) per modality, UK, 2021/22
Figure 1.3 Private hospital/clinic image generation (000s) by modality, UK, 2021
Figure 3.1 Use of commercial image reporting companies by NHS organisations, 2021/22 (and 2017/18)
Figure 3.2 Spend with consultants and commercial reporting companies, 2021/22 (and 2017/18)
Figure 3.3 NHS England CCG methods of paying for GP Direct Access pathology, 2021/22 (and 2017/18)
Figure 3.4 Models used by Trusts for reporting excess histology demand, 2021/22 (and 2017/18)
Figure 3.4b ...of those trusts using commercial companies, their spending in the last year, 2021/22 (and 2017/18)
Figure 4.1 Image reporting market, £m, 2021
Figure 7.1a MRI scans per 1,000 population, 2020
Figure 7.1b MRI scans per million population, 2020
Figure 7.2a CT scans per 100 population, 2020
Figure 7.2b CT scanners per million population, 2020
Figure 7.3 PET CT Scans per 1,000 population, 2017

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