Germany's Hospital Reform to Close Hundreds of Clinics

Minister Lauterbach announces major restructuring, citing overcapacity and financial strain as key drivers for the closures.

The reform aims to reduce the number of hospitals by a few hundred, primarily targeting those in west German cities due to a lack of medical necessity.
Approximately one-third of hospital beds are currently unoccupied, and many facilities are operating at a financial loss.
The reform will shift financial incentives, providing hospitals 60% of their funding for maintaining specific services rather than volume of cases.
Rural hospitals essential for healthcare access will receive additional subsidies to ensure their survival.
The reform, set to begin in 2025, is expected to stabilize health insurance contributions by 2026, following a predicted increase in 2025.