Established practice
Your costs have risen but your prices probably haven't
UK healthcare cost inflation has climbed sharply in recent years and shows no sign of easing. Most private clinics absorb the difference rather than pass it on, quietly eroding the margin that keeps the business viable.
- steps
- 7
- steps
- to start
- 1 day
- to start
The short answer
Costs rise each April when the National Living Wage goes up, and employer National Insurance is now 15% on pay above £5,000 a year, but many clinics leave self-pay prices untouched for years. Work out your cost per appointment type, renegotiate your biggest supplier contracts, then raise self-pay prices once a year with notice. Insurer rates move only at contract renewal, so plan those talks early.
7 steps
Do it yourself: step by step
0 of 7 done
Take last year's costs (staff, rent, consumables, systems, insurance) and divide by appointment hours, then by appointment type.
- Time
- 1 day
- Typical cost
- Free, or accountant time
- Who does it
- Practice manager with accountant
Done when: You know the cost and margin of each appointment type
This problem is Solvable.
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Cost per appointment and price review table
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Cost per appointment and price review
Clinic: [name] Year: [year] Prepared by: [name]
1. Annual costs
| Cost | Last year £ | This year forecast £ | Change |
|---|---|---|---|
| Clinical staff | [ ] | [ ] | [ ] |
| Admin and reception staff | [ ] | [ ] | [ ] |
| Employer National Insurance and pension | [ ] | [ ] | [ ] |
| Rent and service charge | [ ] | [ ] | [ ] |
| Consumables | [ ] | [ ] | [ ] |
| Software and systems | [ ] | [ ] | [ ] |
| Equipment maintenance | [ ] | [ ] | [ ] |
| Insurance and indemnity | [ ] | [ ] | [ ] |
| Card and bank fees | [ ] | [ ] | [ ] |
| Other | [ ] | [ ] | [ ] |
| Total | [ ] | [ ] | [ ] |
2. Cost per clinic hour
Total forecast cost £[ ] ÷ bookable clinic hours [ ] = £[ ] per hour
3. Margin by appointment type
| Appointment | Length (mins) | Cost (hour rate × length + consumables) | Self-pay price | Margin | Insurer rate | Margin |
|---|---|---|---|---|---|---|
| New consultation | [ ] | £[ ] | £[ ] | [ ]% | £[ ] | [ ]% |
| Follow-up | [ ] | £[ ] | £[ ] | [ ]% | £[ ] | [ ]% |
| [Procedure or scan] | [ ] | £[ ] | £[ ] | [ ]% | £[ ] | [ ]% |
4. Proposed prices
| Appointment | Current | Competitor A | Competitor B | Competitor C | Proposed | From date |
|---|---|---|---|---|---|---|
| [ ] | £[ ] | £[ ] | £[ ] | £[ ] | £[ ] | [date] |
5. Patient notice wording
"From [date], our self-pay prices will change. New prices are shown below. If you have already received a written quote, we will honour it. If you have any questions, please call [phone]."
Avoid these
Common mistakes
- Leaving self-pay prices unchanged for three or more years, then needing a big jump.
- Raising prices without checking which appointment types actually lose money.
- Forgetting that insurer rates only change at contract renewal.
- Letting software and service contracts auto-renew without challenge.
- Cutting reception staff to save money and losing bookings as a result.
Free personal check
Done by Paul Robinson, not software
Send me your calculator numbers and I'll show you where your margin is going
What I need from you
- Your calculator inputs
- Your three busiest appointment types and their self-pay prices
What you get
- A sense-check of your numbers against typical clinics
- The three cost or price levers worth most
- Which ones you can act on this month
Within 2 working days
No sign-in, no sales call. I read every request myself and reply on WhatsApp.
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Check where you stand
Benchmarks
£12.71 an hour
National Living Wage from 1 April 2026 for workers aged 21 and over, which lifts the floor for reception and support pay
Source: GOV.UK press release
15% above £5,000 a year
Employer (secondary Class 1) National Insurance rate and secondary threshold for 2026 to 2027
Source: GOV.UK: Rates and thresholds for employers 2026 to 2027
3 to 6 percent a year
Typical annual cost growth for a small private clinic once wages, rent and systems are included
Solvable estimate
Paul Robinson
14 years in UK private healthcare
I solve this one for clinic and hospital teams
Want a hand? I'll look at your situation and tell you the three things I'd tackle first.
A few quick questions, about two minutes. I read every one myself and usually reply the same day.
No sales call unless you ask for one. Just a straight answer from me.
I reply personally, usually the same day.
Questions
Frequently asked questions
Will patients leave if we raise prices?
A few may. Most private patients choose on clinician, access and trust. A modest yearly rise is easier to accept than a large one every few years.
How much notice should we give?
At least 30 days is good practice (not a legal rule), and always honour written quotes already issued.
Can we raise insurer rates?
Only through the insurer's contract or fee review process. Start preparing evidence well before renewal.
Should we cut staff to save costs?
Look at suppliers and unused appointment capacity first. Cutting front-desk staff often costs more in lost bookings than it saves.
How often should we review prices?
Once a year on a set date, plus whenever a major cost changes.
Last reviewed:
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