Germany Approves Major Hospital Reform to Enhance Care Quality

The Bundestag has passed a controversial bill aiming to reduce the number of hospitals while improving specialization and reducing financial pressures.

The reform seeks to address financial strain and inefficiencies in Germany's hospital system by reducing the number of hospitals and increasing specialization.
Hospitals will receive 60% of their funding upfront to maintain essential services, moving away from the current case-based payment system.
Critics argue the reform could lead to reduced access to care in rural areas, with some states planning to challenge the bill in the Bundesrat.
The reform includes a transformation fund of up to 25 billion euros to support the transition, shared between federal states and health insurance providers.
Implementation will span several years, with full operational changes expected by 2029, as the government aims to prevent unnecessary hospital closures.