As Ireland’s population ages, healthcare in the country must adapt to remain successful, according to Sharon Scanlan, the Director of Consulting Advisory at Grant Thornton Ireland. The multinational company offers advisory, audit and tax services.
An Aging Population
Ireland’s demographics are changing rapidly. The most recent census revealed that the country’s population grew to over five million people in 2022, the first time that threshold has been reached in 171 years. One of the primary drivers is the fact that we are living longer, with the highest increase in population growth recorded in the over-70s cohort at 26%. The number of people aged 85 years and older alone grew by 25%.
While this reflects the advances in medicine, improved lifestyles and better healthcare outcomes, it is also resulting in increased pressure on the Irish healthcare system. With the trend of an ageing population expected to continue, the latest research by the Department of Finance indicates that there will only be two people at working age for every retiree in 2050 – a fall from a ratio of four to one today.
Adapting the Healthcare System
To address these changes, the healthcare system is transforming. This is not simply a requirement of an increase in capacity, but a fundamental reimagining of health infrastructure in Ireland – one that factors in advances in technology like AI and virtual monitoring, an increase in specialist service providers in areas such as disease prevention, early diagnosis and intervention whilst simultaneously addressing year on year increases in urgent and emergency care demand.
The health system is responding, the ESRI noted consolidation in the private care sector by recent entrants into the Irish market, primarily financed by international private equity. Private healthcare insurance providers like VHI and Laya Healthcare are expanding their urgent care and well-being offers. A variety of high-profile Irish health-related facilities and providers have also been acquired, such as the Beacon Hospital. The HSE has created significant capacity through the rollout of the enhanced community care programme – revolutionising how healthcare is delivered. All of this points to the appeal of Ireland to private investors, which is primarily driven by the country’s changing demographics and growing population.
A review into Healthcare Capital Investment in Ireland by the Department of Health revealed that the country is essentially playing catchup with its international peers in terms of healthcare capital spending. Ireland has only invested 66% of the total spent by its EU peers between the 1970s and 1990s. With demand for healthcare services outstripping supply – a trend which is only going to continue – and particular cohorts requiring higher levels of expenditure such as care for older people, a market opportunity in Ireland has clearly been noted by investors. With more acquisitions, further consolidation and new services expected to be launched, the Irish healthcare market will be interesting to watch over the years ahead.