The UK’s shifting demographics are redefining the healthcare sector, creating unprecedented demand for services such as non-emergency health transport. With forecasts showing that almost one-quarter of the population will be aged 65 or over by 2043, the call for reliable patient transportation and specialist medical courier services is intensifying. As the NHS faces increasing challenges in meeting these needs, the private sector is stepping in to fill the critical gaps.
For entrepreneurs and investors, this demographic wave offers a unique, long-term growth opportunity. The expanding need for patient mobility solutions, paired with sustained investment in healthcare infrastructure, makes private health transport businesses a resilient and strategic asset in today’s evolving market.
This article explores why the health transport sector is on the rise, the key aspects potential buyers should evaluate, and why acting now offers significant strategic advantages.
A Sector in Expansion: Outsourcing and NHS Dependency
The Non-Emergency Patient Transport Services (NEPTS) market is undergoing a period of dynamic growth, driven largely by the twin forces of an ageing society and the increasing prevalence of chronic diseases. Between 2025 and 2030, the sector is expected to achieve a compound annual growth rate (CAGR) of 8.2%.
The NHS heavily relies on private providers to meet transportation demands. The 2021 government review on non-emergency transport services revealed that 11 to 12 million patient journeys are completed each year under NHS contracts, covering approximately 140 million miles annually.
With NHS expenditure on NEPTS approaching £460 million a year, and an average patient journey costing £38, the dependence on external service providers has become entrenched. Spending on NEPTS represents around £1 out of every £275 of NHS funding.
Additionally, as part of the government’s commitment to reform the NHS and introduce 40,000 more patient appointments each week, the need for effective transport solutions is only expected to escalate.
Private businesses that understand NHS procurement frameworks are well-positioned to win substantial, secure contracts, creating a strong case for entering the market at this pivotal time.
A Broad Range of High-Growth Niches
Private health transport is far from a single-service industry. It encompasses a range of specialised sectors, each with strong growth trajectories:
- Renal Dialysis Transport – Around 35% of NHS-arranged patient journeys (4.2 million annually) are for dialysis patients requiring regular, repeated transport.
- Outpatient Appointments Transport – Representing 43% of NEPTS journeys, outpatient services are expanding alongside the ageing population’s healthcare needs.
- Hospital Discharges and Patient Transfers – Around 10% of journeys assist with hospital discharges, helping to relieve pressure on hospital bed capacity. As of 2020, approximately 120,000 patients were discharged each month using private transport services, according to evidence from the Patient Transport Action Group.
- Mobility Support for Elderly Residents – Providing transport to care home residents and the elderly for both social activities and medical appointments. With three-quarters of NEPTS users over 65 and projections showing 21% of the UK population will be elderly by 2030, this is a particularly promising segment.
- Mental Health Transport Services – Specially equipped vehicles and trained staff are essential for safely transporting mental health patients. With government policy increasingly focused on improving mental health services, demand in this area is set to rise.
- Medical Supplies Delivery – In addition to patient transport, services that courier critical medical supplies and often under temperature-controlled and security-sensitive conditions – represent another growth avenue.
Compliance and Environmental Expectations
Operating a private health transport business requires rigorous compliance with healthcare regulations and environmental standards.
For businesses moving patients, meeting the requirements of the Care Quality Commission (CQC) and NHS England is essential. Medical logistics providers must also comply with standards set by the Human Tissue Authority (HTA) and the Medicines and Healthcare products Regulatory Agency (MHRA).
Environmental sustainability is becoming increasingly important. NEPTS is responsible for roughly 20% of NHS-related transport emissions. The NHS has pledged to reach net-zero emissions by 2040, with the goal of transitioning all NEPTS vehicles to zero-emission models by 2035. Companies that proactively invest in electric or low-emission fleets stand to gain a competitive advantage as NHS procurement increasingly prioritises green credentials.
The growing infrastructure for electric vehicle charging across the UK further supports a shift towards sustainable operations, offering early adopters additional momentum.
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Operational Efficiency and Financial Management
Profit margins within private health transport largely depend on efficient operational practices, including:
- Managing fleet maintenance and controlling depreciation
- Recruiting and retaining qualified staff
- Optimising route planning to reduce fuel usage and missed appointments
- Meeting the specific handling requirements for patients or medical goods
The sector also faces inefficiencies: nearly 3 million NEPTS journeys are cancelled or abandoned annually, often due to poor communication between providers and healthcare facilities. Businesses that implement smart scheduling and coordination technologies will be better positioned to deliver reliable service and protect margins.
Another financial consideration is the Healthcare Travel Costs Scheme (HTCS), a reimbursement programme for low-income patients. Although annual HTCS costs are estimated at £5–10 million, uptake remains low, highlighting an underserved market that private operators could better support.
Staffing levels remain relatively stable across the sector, with a workforce of 10,000–15,000 full-time employees recorded in 2021. However, certain skill shortages exist, particularly in specialist transport services. Buyers who prioritise training and workforce development will find opportunities to differentiate their businesses.
Why Timing is Critical, Why ACF
The convergence of an ageing population, stretched NHS resources, and rising demand for private-sector solutions means the private health transport sector is more attractive than ever.
With the NHS spending close to £500 million annually on NEPTS and the government encouraging private-sector partnerships to meet healthcare goals, this is a rare moment to invest in a stable and scalable sector.
Furthermore, mergers and acquisitions activity is increasing, as operators seek to grow their fleets and service offerings to maintain competitiveness. Strategic investors who move now will be best placed to capture long-term value, especially as the sector leans into urban growth trends and sustainable transport practices, supporting the 8.2% expected CAGR.
However, transactions within this niche market come with complexities, including fleet valuation, regulatory approvals, and finding the right buyer or seller. That’s where Altius Corporate Finance comes in.
Our specialist Medical Sector team has deep expertise in navigating the sale and acquisition of health transport businesses, ensuring a seamless process that maximises value and minimises risk for both parties.
Whether you are seeking to acquire a thriving private transport business or are preparing for a strategic exit, Altius Corporate Finance is ready to guide you every step of the way. Contact our experts today to explore the latest M&A opportunities in the healthcare transport sector.
