"Glacial change" and resistance from within the NHS are behind the decision by Barclays Private Equity to stop actively investing in the UK private healthcare sector.

The decision does not affect Barclays operations in other West European countries.

A senior contact told Healthcare Europa: "Yes, private equity has done well from private healthcare over much of the last decade. But that reflects increased multiples and the opco/propco split, rather than underlying performance.

"We look for the underlying level of promise, and we don’t see that in the UK today, particularly given the amount of capital which other investors are keen to put into healthcare."

Our contact added that there was huge resistance, both from within the NHS and also from local health authorities, to the involvement of the private sector in healthcare in the UK.