As out-of-pocket healthcare spending continues to rise across Europe, a major opportunity is emerging for providers: pricing strategy. Historically, pricing in the private healthcare sector has often been reactive, ad hoc and inconsistently applied — especially for out-of-pocket patients. But as private pay becomes a bigger slice of the pie, pricing is now a frontline strategic lever that can help capture value, drive share gain and open new patient segments. For example, in the UK, c.36% of patients surveyed indicated that they were more likely to pay for private healthcare for orthopaedics than they had been in the past five years.
L.E.K. Consulting’s recent survey of over 3,500 patients across five European markets sheds light on the shifting dynamics, from how patients think about pricing to where providers are leaving value on the table.
Out-of-pocket spend is rising, but pricing discipline isn’t keeping up
Private pay, once a niche or supplementary funding source, is becoming a core pillar of healthcare financing. Across markets, more than half of respondents said they expect to increase out-of-pocket spending in the next five years (see Figure 1). Even in countries with strong public coverage, like the UK and Germany, a significant share of patients foresee a shift toward personal healthcare expenditure.
This shift in willingness — and expectation — to pay more out of pocket underscores the commercial urgency of thoughtful pricing strategy. Patients are ready to pay, but they are also more discerning than ever. Providers that don’t price strategically risk leaving value untapped or, worse, turning price-sensitive patients away.
Alongside this, patients expect to see prices continue to rise, particularly in areas of high demand or constrained capacity (see Figure 2). Across major specialities such as orthopaedics, cardiology and oncology, more than 50% of patients expect prices to increase over the next one to two years, with a sizeable chunk expecting increases above 10%.
These expectations are rooted not only in inflation, but also in structural drivers like long wait times and limited private capacity, both of which patients see as justification for rising prices.
Patients are actively comparing prices — more than ever before
Another clear shift is that patients are becoming more price aware and price sensitive. Across the five countries surveyed, 61% of patients agree or strongly agree that they compare prices more now than they did five years ago when selecting a private provider (see Figure 3).
In a market where choice is expanding and transparency is increasing (even if slowly), price is no longer a silent factor. It’s part of the patient decision-making process — and a well-calibrated pricing strategy can become a key competitive differentiator, particularly in high-volume services such as dentistry, dermatology or diagnostics.
High prices remain the No. 1 barrier, but affordability can be strategically designed
Despite growing demand, price remains the single biggest barrier to broader private healthcare adoption (see Figure 4). Across all five countries, nearly 40% of patients said that high prices are what most prevent them from using private services more often — far outpacing concerns about public healthcare satisfaction or lack of insurance coverage.
This represents a strategic challenge and an opportunity. Instead of defaulting to flat price increases, providers can rethink pricing across three levels:
- Entry points: Establishing clear, affordable offerings to bring price-conscious patients into the funnel
- Tiering: Segmenting services (e.g. basic vs premium consultations) to reflect varying preferences and price sensitivity
- Packaging: Creating bundled offers or subscriptions for common needs (e.g. chronic care, diagnostics)
Affordability isn’t about being ‘cheap’ — it’s about structuring value in a way that is clear, compelling and sustainable for both patients and providers.
The call for price transparency is loud and clear
More than ever, patients are asking for clarity. Across nearly every treatment area surveyed, 70% or more of respondents said they want to see greater price transparency from providers (see Figure 5). The demand is consistent across markets and specialities, from standard dental care to complex oncology services.
Price transparency is no longer a nice-to-have. In an environment where price sensitivity is rising, opaque pricing can erode trust and stall growth. On the flip side, providers that embrace transparency and use it to signal fairness, accessibility and quality are well positioned to gain share.
Strategic pricing: A commercial lever too often overlooked
The takeaway? Pricing is a strategic tool, not just a reaction to inflation. Providers that treat pricing as a source of commercial value, not a mere back-office process, can:
- Capture higher revenue yield across their network
- Gain share among price-conscious patients
- Build stronger brand equity through perceived fairness and value
Whether you’re a single-site clinic or a multi-country group, pricing discipline can help unlock EBITDA growth — often with faster impact than volume-driven strategies alone.
How can L.E.K. help?
L.E.K. regularly works with healthcare providers, platforms and investors across Europe to develop robust pricing strategies, from designing affordable access tiers to building analytics-powered pricing engines to aligning price architecture with market positioning and brand promise.
If you’re looking to unlock more value through smarter pricing — whether for out-of-pocket, insured or hybrid models — get in touch. We’d love to share what we’re seeing and help tailor the right solution for your business.
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