A looming crisis threatens the stability of Germany’s hospital system, with the national association of statutory health physicians (KBV) issuing a stark warning of potential bankruptcies amongst vital medical facilities. The reform initially championed by former Health Minister Karl Lauterbach (SPD) has been significantly diluted, according to KBV Chairman Andreas Gassen, rendering it functionally ineffective and accelerating the precarious situation.
Speaking to the “Neue Osnabrücker Zeitung” Gassen characterized the reform’s current state as “rendered unrecognizable” asserting that without meaningful structural change, hospitals will continue to collapse into insolvency. Critically, these are not simply smaller, less essential clinics at risk, but essential providers delivering crucial healthcare services.
Gassen placed the blame squarely on the shoulders of state government leaders, accusing them of a collective unwillingness to implement the necessary adjustments. He highlighted a paradoxical reluctance to address the issue, citing a widespread opposition to even the consideration of downsizing smaller facilities – a gesture he sarcastically referred to as “a protest rally in front of a miniclinic with 80 beds.
The KBV chairman underlined the staggering financial burden placed on the healthcare system by hospitals, representing over €100 billion annually – the largest single expense by a significant margin – despite a consistent decline in patient numbers. This unsustainable situation, he argues, prevents the provision of optimal care and the adequate staffing and funding of vital institutions.
Gassen also pointed to a deeply embedded political reality: while all state premiers acknowledge the need for consolidation, they are reluctant to allow closures within their respective jurisdictions, prioritizing regional political considerations over national healthcare strategy. This reluctance, he suggested, is preventing a rational assessment of the system, potentially permitting the continued operation of facilities that offer diminished service and contribute needlessly to the overall financial strain. The consequences, the KBV warns, could be devastating for patient care and the future resilience of the German healthcare system.



