German Hospitals Face Worst Financial Crisis in Two Decades

Rising costs and insufficient funding push 79% of hospitals to project losses for 2024, threatening patient care and regional services.

The 2024 'Krankenhausbarometer' reveals that 61% of German hospitals reported financial losses in 2023, the highest since the introduction of the flat-rate payment system in 2003.
A staggering 79% of hospitals anticipate operating at a loss in 2024, with only 10% expecting to achieve a surplus.
Rising personnel and material costs, coupled with inadequate inflation adjustments and investment funding, are cited as key contributors to the crisis.
Hospital closures are accelerating, with 24 facilities shutting down in 2024 alone, impacting thousands of employees and reducing access to care in some regions.
The newly approved hospital reform, set to begin in 2025, aims to alleviate financial pressure by adjusting funding models, though concerns remain over potential service reductions and rural hospital closures.