Hospital Funding Crisis Looms
Economy / Finance

Hospital Funding Crisis Looms

The head of Germany’s largest statutory health insurance (GKV) association, Oliver Blatt, has asserted that German hospitals are adequately funded, even expressing concern about the potential for overfunding should proposed revisions to the recently implemented hospital reform be enacted. In an interview with the Frankfurter Allgemeine Zeitung, Blatt cautioned that revisiting the reform could lead to the perpetuation of outdated structures rather than fostering necessary changes.

Hospitals are set to receive substantial financial support, totaling four billion euros in immediate assistance for 2025 and 2026, alongside 3.5 billion euros annually from 2026 onwards, drawn from the federal infrastructure special fund. Blatt warned against uncontrolled distribution of these resources, emphasizing that hospitals currently receive over 100 billion euros annually from contributions and that this level of funding should be sufficient. He noted that the budget for care services has become essentially unlimited, accommodating every wage increase and staffing requirement.

Blatt affirmed his support for the core principles of the hospital reform, which aims to concentrate stationary care services, enhance quality through standardized performance groups and incorporate fixed payments independent of patient volume. He voiced concern that resistance from federal states regarding potential hospital closures, combined with the new Federal Minister of Health, Nina Warken’s willingness to reconsider the reform, could dilute its intended impact.

He argued that maintaining a clinic in every location across Germany is not essential, expressing apprehension that revisions could undermine the reform’s effectiveness. Blatt cautioned against prioritizing regional policy over the quality of care, stressing the importance of upholding standardized performance groups for quality assurance and ensuring that fixed payments are aligned with actual care needs rather than distributed broadly.

Furthermore, Blatt ruled out performance reductions and the reintroduction of co-payments. He endorsed the coalition government’s plan to introduce a primary care physician system for outpatient services, stating that the fundamental concept of establishing such a system is correct. This system aims to require many patients to consult with a general practitioner before visiting specialists.

Blatt highlighted existing inefficiencies in specialist access and referral processes, citing an abundance of psychotherapists yet long waiting times for appointments and instances of patients utilizing emergency transport and accident rooms inappropriately. He described such “misallocations” as wasteful, socially unjust and dangerous.

To improve care quality and realize cost savings, Blatt advocated for a system that steers patients effectively, emphasizing the necessity of an independent appointment brokerage service that prioritizes patient urgency, irrespective of insurance status – whether statutory or private.