A subtle shift is underway in the Midlands where private enterprise and public need intersect in a way few anticipated. Behind the scenes, One Health Group has been quietly aligning resources and partnerships to address a bottleneck in elective surgery, and the latest development suggests this is more than a pilot effort, it points to a broader strategic pivot with implications for both patient pathways and shareholder value.
In the past year One Health Group has moved from planning to execution as it secured approval for its inaugural surgical hub, signalling a decisive turn in its approach to collaborative healthcare delivery. Rather than simply expanding its portfolio of private hospitals, the group has forged new ties with the NHS to build capacity where it is most needed. By selecting Scunthorpe as the site for its first hub, the group has demonstrated a willingness to go beyond traditional urban centres of private care, targeting regions where surgical waiting lists have become politically sensitive and operationally complex.
Investors watching the healthcare sector will recognise that elective procedures represent a stable revenue stream when public systems struggle under post-pandemic pressures. One Health’s model leverages its existing expertise in out-patient services and diagnostic technologies, repurposing underutilised facilities and redeploying clinical teams to the hub. This strategy not only broadens the company’s service footprint but also deepens its integration with NHS commissioning structures. By negotiating block contracts and long-term service agreements, One Health aims to smooth revenue volatility and lock in utilisation rates at a predictable level.
Behind the contract announcements lies a methodical capital deployment cadence. Funding for the Scunthorpe facility blends equity, debt and reinvested operational cashflow, illustrating a disciplined approach to expansion. Early indicators suggest that build-out costs came in within budget, helped by modular construction techniques and a phased equipment rollout. Rather than front-loading all clinical services, One Health plans to introduce surgical specialties incrementally, starting with orthopaedics and ophthalmology, where waiting lists have grown longest. This staggered launch not only aligns staffing and training with actual demand but also limits exposure to single-service risk.
Operationally the hub will draw on One Health’s digital referral system, which channels patient enquiries directly through GP networks and NHS trust back-offices. By integrating electronic health records and utilising pre-admission assessment pods, the group can streamline patient flow, reduce no-show rates and optimise theatre scheduling. In practice this means lower per-case overheads and more efficient use of anaesthetic and nursing teams, enhancing margins without compromising care standards. For investors, it is this fusion of process innovation with clinical capacity that underpins the long-term return profile.
One Health’s decision to partner rather than compete head-on with NHS trusts reflects a nuanced understanding of regulatory dynamics. Public bodies under political scrutiny are incentivised to outsource non-complex elective work, freeing up hospital sites for emergency and cancer care. By positioning itself as a reliable subcontractor, One Health secures access to patient volumes that might otherwise remain in overbooked public queues. This approach dilutes competitive pressures from other private operators, which often focus on affluent catchment areas, and instead taps into latent demand in less saturated regions.
The Scunthorpe hub also serves as a template for future roll-outs across the UK. If utilisation targets are met, the group plans to replicate the model in other mid-tier towns where NHS waiting times exceed national averages. Each subsequent hub can share procurement contracts and centralised management platforms, accelerating the contribution of overheads to profitability. As these facilities scale, the group anticipates that improved negotiating leverage with suppliers and streamlined administrative processes will drive margin expansion, contributing to an upward shift in earnings before interest, tax, depreciation and amortisation over the medium term.
Of course, execution risks remain. Achieving the right balance of clinical specialities, maintaining high quality standards and sustaining collaborative relationships with multiple NHS trusts will test One Health’s operational agility. Yet the early approvals and capital discipline exhibited so far suggest the management team is acutely aware of these challenges and prepared to adapt. For investors, the venture into Scunthorpe is more than a single project, it is a live case study in the company’s broader ambition to become the UK’s partner of choice in reducing elective surgery backlogs.
One Health Group PLC (LON:OHGR) are a team of Consultant Surgeons and Healthcare managers working with the NHS to provide faster, local and expert care in Orthopaedics, Spinal, General Surgery and Gynaecology.
