Economic Situation of German Hospitals at a 20-Year Low
According to a survey by the German Hospital Association (DKG), the economic situation of hospitals in Germany is as bad as it has been in the past 20 years.
The “Hospital Barometer 2024” shows that in the past year, 61 percent of hospitals reported losses, the highest value since the introduction of the DRG system in 2003. 39 percent of hospitals achieved a surplus or a balanced result. Even for 2024, 79 percent of hospitals expect a loss. For the coming year, 65 percent of hospitals predict a further deterioration of their economic situation, while only six percent expect an improvement, and 29 percent do not expect any changes.
In summary, 80 percent of hospitals in the survey rate their economic situation as unsatisfactory, a record high in the past 20 years. Only five percent see themselves in a good situation.
The main reasons for the hospitals’ economic difficulties are price increases in personnel and material costs, which, according to the survey, have a strong or very strong impact on the financial situation of 88 percent of hospitals.
“The situation of hospitals is taking on increasingly alarming proportions” said DKG Managing Director Gerald Gaß to the RND. The causes are the inadequate investment promotion and the continued lack of an inflation adjustment. “This long-standing imbalance will force hospital operators to make even harder consolidation decisions in the coming year” warned Gaß, adding that this will also have negative effects on regional patient care. “Hospitals are forced to make cuts in patient care due to the deficit, without being able to coordinate this with the hospital plans of the states” said Gaß.
The results of the Hospital Barometer 2024 are based on a written survey of a representative sample of general hospitals with over 100 beds, conducted from mid-May to mid-August 2024, in which a total of 366 hospitals participated.