Rethinking the future of European healthcare: why investing in innovation means better care for more people

Europe’s healthcare systems under strain

Across Europe, healthcare systems have long protected people’s health and supported economic resilience. Yet today, they are under extraordinary pressure. Traditional hospital-centred models, built decades ago to treat acute illness, are no longer suited to the chronic, complex and resource-intensive needs of modern care. Despite major investments, outcomes are not improving fast enough – and healthcare professionals are feeling the strain.

In policy debates, healthcare is too often seen as a cost rather than an investment. This needs to change. We must reframe healthcare as one of Europe’s highest-return investments – an engine for societal well-being, innovation and productivity. Evidence shows that every euro invested in health can generate up to €14 in broader economic benefits. Healthier populations contribute to stronger, more resilient economies. The return is not just financial – it’s deeply human.

Fragmentation across providers, administrative burden and widespread clinician burnout are eroding efficiency and morale. Shortages in skilled professionals – from nurses and general practitioners to specialised clinicians – are widening. The European Union alone faces an estimated shortfall of 1.2 million healthcare professionals. Training more staff is part of the answer, but it’s not enough. We need new ways of delivering care that empower professionals and improve access for patients.

Innovation as a catalyst for change 

This is where innovation plays a pivotal role. Technologies such as digital health, artificial intelligence (AI), genomics, robotics and minimally invasive treatments hold transformative potential. In fact, the Future Health Index 2025 – the largest global survey of its kind commissioned by Philips – shows that healthcare leaders increasingly view AI as a way to serve patients more effectively by streamlining operations and supporting better decision-making.

Yet adoption remains slow and uneven. Systemic inertia, complex regulation and limited integration into care models have made progress difficult. To move forward, we must build systems that not only allow innovation but actively enable it.

From my own experience as a clinician, I’ve seen how technology can restore what healthcare professionals value most – time with their patients. When used thoughtfully, innovation can simplify workflows, automate repetitive tasks and provide actionable insights at critical moments.

For example, advanced cardiac monitoring systems now automate key measurements and export data directly to patient records. In some hospitals, this has reduced documentation time by up to eight hours per day – time that can instead be dedicated to direct patient care. This is the kind of innovation that makes healthcare more personal, not less.

A coordinated European approach to health innovation

Despite these successes, too many transformative technologies reach European patients later than elsewhere. Slow economic growth, high operational complexity, fragmented regulation and low investment incentives have made the EU less attractive for health technology development and deployment.

To change this trajectory, both EU and national policymakers need to act decisively. Simplifying regulation, encouraging public–private collaboration and investing in interoperable digital infrastructure are critical steps. Innovation must be seen as an essential driver of sustainability – not a luxury.

At the EU level, we must:

• make health a central pillar of Europe’s strategic investment agenda, recognising its role in economic growth, social stability and innovation;
• integrate health policy into broader frameworks for competitiveness, digital transformation and security – ensuring that health is part of every major policy conversation.

At the national level, we must:

• invest in technologies that reduce costs, save time and boost productivity, ensuring alignment with real-world healthcare needs;
• build secure, interoperable digital health infrastructure that enables new models of care, including remote and preventive care services;
• allocate resources where they deliver the greatest value for the greatest number – strengthening primary care, prevention and digitally enabled pathways.

Innovation is not a single act – it’s a shared responsibility between industry, policymakers, clinicians and patients. Innovation public-private partnerships are great opportunities to help healthcare systems become more sustainable and resilient. But innovation alone is not enough. It must be guided by purpose and grounded in empathy for the people who rely on it every day.

Europe stands at a crossroads. We have the knowledge, technology and talent to create a healthcare system that delivers better outcomes for more people – if we choose to act. By reframing health as a strategic investment and embracing innovation as an enabler of care, we can build systems that are not only efficient but compassionate, equitable and sustainable. The future of European healthcare depends on this mindset shift. Together – policymakers, innovators, clinicians and patients – we can deliver better care for more people, now and for generations to come.

This article is a contribution from a member or partner organisation of Friends of Europe. The views expressed in this #CriticalThinking article reflect those of the author(s) and not of Friends of Europe.