German Medical Practices' Revenues Outpace Expenses for the First Time in Two Years
Economy / Finance

German Medical Practices’ Revenues Outpace Expenses for the First Time in Two Years

According to data released by the Federal Statistical Office of Germany (Destatis) on Thursday, general medical practices in Germany reported average revenues of 854,000 euros in 2024 per practice. This represents a 6.2 percent increase compared to the previous year (2023: 804,000 euros). Correspondingly, average expenses rose by 4.7 percent to 516,000 euros (2023: 493,000 euros). Importantly, for the first time in two years, revenue growth surpassed expense growth. In both 2022 and 2023, the increase in expenses had significantly outweighed the rise in revenue for these practices.

The average net profit per medical practice saw a jump of 9.0 percent in 2024, reaching 338,000 euros (2023: 310,000 euros). Although these averages are influenced by high-earning practices, the median financial picture is different: half of all medical practices recorded revenue up to 502,000 euros, expenses up to 260,000 euros, and a net profit of no more than 232,000 euros. In 2024, there were, on average, 9.9 people employed across these practices. It is important to clarify that this net profit does not equate to the personal income or earnings of the doctors; rather, it reflects the bottom line of the entire practice’s business year, without accounting for overhead such as practice acquisitions or the social security contributions of the practice owners.

Specific sector analysis shows that dental practices generated an average of 937,000 euros in revenue in 2024, with expenses totaling 632,000 euros. Compared to 2023, revenues increased by 4.8 percent (2023: 894,000 euros), while expenses rose by 3.6 percent (2023: 610,000 euros). The net profit for an average dental practice in 2024 was 305,000 euros, marking a 7.4 percent rise from 2023. The median net profit was significantly lower at 217,000 euros. These dental practices employed an average of 10.2 people in 2024.

In contrast, psychotherapeutic practices, which employed a smaller average of 1.9 people, achieved revenues of 134,000 euros per practice in 2024. While revenue increased by 10.7 percent compared to the previous year, expenses saw a sharp climb of 22.9 percent to 43,000 euros (2023: 35,000 euros). The average net profit grew by 4.7 percent from 2023 (86,000 euros) to 90,000 euros. This growth rate in net profit was considerably lower than that seen in medical or dental practices. Furthermore, half of all psychotherapeutic practices posted a median net profit of 83,000 euros.