Comment: The productivity paradox in European hospitals

This article first appeared on ‘Healthcare Today’ here

Neil Pein, chief executive of BNP Paribas Leasing Solutions, says that Europe’s hospitals face a growing dilemma: invest now in technology and risk obsolescence, or delay and miss out on productivity gains.

The European Commission recently released its 2026 European Semester Spring Package, issuing health-related recommendations to 16 member states. The package highlights some persistent challenges in European healthcare, particularly around access, affordability, workforce shortages, and digital health readiness. 

It also reinforced why investment in healthcare should be seen as an investment in Europe’s productivity. A healthy population works, innovates, and contributes, while a stretched health system contributes to the opposite by adding to labour shortages and putting strain on the public purse. Every delayed diagnosis and long wait for treatment has an economic consequence, as well as a human one.

But while the case for healthcare investment is clear, the sector is confronting a difficult paradox. Healthcare providers know they must modernise to cut waiting times, reduce time spent on admin, diagnose earlier, and improve patient outcomes. They also know that technology is moving so quickly, meaning technology decisions are becoming more difficult to make.