The Private Healthcare Sector of Budapest in 2023: Market Overview and Development Opportunities for Providers in the Light of a Qualitative Study

Abstract

Private healthcare has been playing an increasingly important role in people's lives in Hungary in recent years. The growing importance has an impact on the public and private healthcare market, leading to significant changes within the sector. In this paper, an overview of the Hungarian private healthcare sector is provided, including the development paths, current stages, and strategic approaches of key participants. The challenges arising in the middle of market changes and the strategies and business models currently employed by participants were analysed. In-depth interviews with four leaders from three major companies and the head of an independent medical reservation system were carried out to assess the saturation level of the private healthcare market in Budapest and to identify possible directions and strategic opportunities. The market shows a dual effect: while the prices of services are rising, long waiting lists are driving patients towards the private sector. The Hungarian private healthcare service market is currently fragmented, with thousands of competitors sharing the total revenue. The market continues to grow, driven by the transition from public to private healthcare due to patient-centred treatment and transparent funding. Based on the companies examined, the market is characterised by a growth strategy, aiming to expand services and/or locations. Besides expanding services, there is a growing emphasis on rural expansion reflected in longer-term strategic goals. In addition to its contribution to Hungarian literature, the results are also practically useful for exploring the development of the expected future market situation, accompanied by guiding conclusions.