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James Todd & Co Accountants Clarify Why Financial Resilience Is a Key Priority for Healthcare Organisations in 2026

Established accountants and business advisory specialists, James Todd & Co , have advised that the prevailing theme for the year ahead for many private healthcare businesses will be stability and resilience, as thousands face challenging budgets amid rising trading costs. The pressures of higher staffing costs and energy bills, alongside increasing regulatory compliance complexity, have offset the sharp rise in demand for private healthcare services, leaving the specialists in healthcare sector accountancy to urge the industry to pay close attention to budgeting and cash flow forecasting. Factors Putting Healthcare Organisations in the UK Under Increased Financial Strain Over the past few months, almost all industries have seen overheads rise, with above-average inflation leading to sustained operating costs, but this has been felt perhaps most acutely by the healthcare, social care, and medical sectors, owing to a combination of factors. Data shows that globally, medical inflation is expected to reach 7% this year. This is coupled with higher payroll costs, reduced profitability that hampers investment and expansion, and significantly greater energy costs, which have risen 75% for businesses since 2021. For healthcare providers, from opticians to physiotherapists, dental practices and private consultants, the impacts have been pronounced, not least because many were already dealing with workforce shortages, and facing competition from low-cost, often unregulated overseas providers. In addition, privately paying clients have been hit by higher costs of living, which has led to greater uptake of finance plans and delayed payments, further affecting the stability of stretched cash flows. Regulations have also changed, in some instances considerably, in the last year. This includes the introduction of the CQC’s new Single Assessment Framework, extensions to the services that fall under the scope of CQC regulation, increased requirements around workforce and safe staffing mandates, and the introduction of Digital Staff Passports which affect private providers that provide contracted services to the NHS. Guidance for Private Healthcare Companies Dealing With Financial Pressures Oliver Read, FCCA ACA, Audit and Assurance Director at James Todd & Co says, ‘ The healthcare, therapeutic and private health sectors deal with ever-changing pressure points and pricing challenges, and we’ve seen a greater proportion of businesses looking for pre-emptive support to ensure their finances are in good shape and under continual monitoring. When operating costs outpace revenue streams or funding, the most vital aspect is ensuring that businesses operate with up-to-date reporting and can make decisive, strategic decisions before they reach a crisis point. Although the general picture can seem gloomy, the reality is also that private sector providers who have diversified to meet changing trends in terms of patient needs and priorities have seen substantial success, and long waiting times and lack of access to public sector care have seen the value of the UK private healthcare market reach £12.4 billion. Our advice is to ensure health and social care sector businesses worried about the trading year ahead, unsure about their resilience to cope with higher trading costs or planning large-scale investments or asset acquisitions conduct a thorough financial review as a starting point to ensure they can adapt to any further cost pressures that may arise and have a solid foundation that emphasises stability above all else .’ Trends in Demand for Accountancy Support From Professionals With Healthcare Sector Expertise James Todd & Co focuses on a small number of core sectors, within which its teams of Chartered Accountants, advisers and consultants have a strong level of professional expertise. Amid a turbulent period of tax reform, rising operating costs, and regulatory changes, the firm has seen a marked increase in enquiries from new clients. Oliver says, ‘ Healthcare has always been a niche sector, and it’s incredibly rare for generic accountancy assistance to be sufficient, even when consulting highly accredited professionals. That is because an understanding of funding avenues, revenue streams, CQC regulation, private insurance coverage, capital allowances, the tax treatments of locums, and the nuances of partnership structures are all specialist areas, especially when coupled with a need to identify efficiencies while delivering high-quality care services .’ The accountancy firm has previously published guides on how dedicated support, mentoring, and growth-centric advisory services have helped health and care providers achieve rapid success and welcomes prospective clients to contact its practices in Chichester or Fareham to arrange a convenient time to discuss their needs. 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