German Hospitals Face Financial Crisis as Reforms Fall Short

Widespread insolvencies and closures highlight gaps in Lauterbach’s hospital reform, threatening rural healthcare access.

Nearly 80% of German hospitals are operating in the red, with total deficits exceeding €14 billion, according to the German Hospital Association.
The reform aims to improve care quality and reduce economic pressures but lacks transitional funding until full implementation in 2027, leading to unplanned closures.
Small, rural hospitals with fewer than 300 beds are particularly vulnerable, with many reporting pessimistic outlooks and increasing closures.
Critics, including hospital leaders and unions, cite excessive bureaucracy and inflation-related cost pressures as exacerbating the crisis.
The reforms, approved in November, include a shift toward specialization and fewer hospital locations but have sparked concerns over reduced local healthcare access and longer patient wait times.