ABSTRACT
Prior to the advent of the National Health Service (NHS), most hospitals were private in sense of being independent and self-governing. There were at that time a number of 'municipal' as opposed to purely 'voluntary' hospitals, but it is probably true to say that there was a charitable element in the funding of all hospitals, dating back to medieval times and perhaps even before. Private medical insurance is the principal source of revenue for private hospitals, though other sources are probably more substantial than would be assumed. The residue of independent hospital revenue is derived from contractual arrangements between the NHS and independent hospitals, though the majority of contracted beds used are in non-acute specialties including convalescence and terminal care. Apart from in certain clinics and psychiatric hospitals, medical practitioners working in private hospitals do so as independent contractors, not as salaried employees.
