Germany Faces Crisis As One Third of Hospitals Threatened with Insolvency Health Bodies Urge Extended Financial Support

Germany Faces Crisis As One Third of Hospitals Threatened with Insolvency Health Bodies Urge Extended Financial Support

The German Hospital Association (DKG) and the German County Council have warned that another wave of hospital closures could follow unless financial aid is extended.

DKG president Gerald Gaß told the “Rheinische Post” that the situation is urgent. “Eighty per cent of hospitals are in the red right now. A third of all inpatient facilities in Germany face insolvency: 16 % are highly at risk and a further 21 % are threatened” he said.
Gaß urged Health Minister Warken to prolong the federal support that is scheduled to lapse in November 2025. The compensation – amounting to €4 billion – has been providing a stabilising buffer to hospitals, and Gaß called on the ministry to keep that aid in place.

County Council president Achim Brötel echoed those concerns. He highlighted that hospitals run by church, non‑profit or municipal sponsors are especially vulnerable. “Municipal hospitals are doing terribly because we can no longer meet the deficit‑recovery payments at the levels that are currently required” Brötel explained. From 2023 to 2025, counties alone have already mobilised roughly €25 billion to cushion their clinics’ losses.

Brötel called for reforms to the hospital reimbursement system, specifically the elimination of case‑dependent payment structures. He argued that a flat pre‑payment tariff is essential; otherwise, unchecked costs will drive further clinic closures, particularly in rural areas.