A Call for Urgent Aid for German Hospitals Amid Financial Crisis
The German Hospital Association (DKG) is urging the new federal government to provide immediate aid to the country’s ailing hospitals. Since the start of 2022, nearly 80 hospital sites have filed for insolvency, with some managing to emerge from the process, while others have not, said DKG Chief Gerald Gaß in an interview with the Rheinische Post. “This is just the tip of the iceberg, which is why we need immediate aid.”
Eighty percent of the country’s hospitals are running in the red, according to Gaß, who expressed concern over the lack of clarity on when the promised aid would be forthcoming. “The clinics need an immediate injection of four billion euros to absorb the cost increases since 2022, primarily in energy and personnel costs” he emphasized.
The DKG chief warned of the urgency of the situation, stating that many hospitals are already finalizing their 2024 accounts and if auditors do not see a prospect of continuation, they will not be able to certify the financial statements. If banks then stop lending, it would lead to even more hospital insolvencies, as banks are not satisfied with a coalition agreement as collateral.
Gaß particularly highlighted the vulnerability of rural hospitals, saying, “The insolvency figures show a clear picture: small and medium-sized hospitals, especially in rural areas, are at risk. Those with private or non-profit owners are at a higher risk, with the insolvency risk more than double that of publicly-owned hospitals.” He noted that municipalities often absorb the losses in such cases.
The German Hospital Association represents the interests of 1,887 hospitals, which provide in-patient care to 17 million people annually.