German Hospitals Face Crisis as Losses Mount
Economy / Finance

German Hospitals Face Crisis as Losses Mount

Germany’s hospitals are teetering on the brink of a systemic crisis, according to a stark new survey by the German Hospital Confederation (DKG), despite repeated political interventions aimed at stabilizing the sector. The “Hospital Barometer 2025” revealed by the Redaktionsnetzwerk Deutschland, paints a grim picture, suggesting a deepening economic malaise impacting the nation’s healthcare infrastructure.

The survey indicates a significant deterioration in financial health, with a staggering 66% of hospitals reporting losses in the past year. This represents a five-point increase compared to 2023, highlighting a relentless downward trend. Only 34% of clinics managed to achieve a surplus or balanced result.

Looking ahead, the prognosis remains bleak. Hospitals anticipate further deterioration in 2025, with 70% projecting losses and only 30% expecting a positive or balanced outcome. The outlook for 2026 offers little respite; a mere 13% of surveyed institutions believe their economic situation will improve, while a worrying 44% anticipate a further decline and 43% foresee no significant change.

“These figures are alarming” stated DKG President Gerald Gaß. He characterized the current situation as a “historic low point” for hospitals since the introduction of outcome-based payment systems over two decades ago. “The fact that two-thirds of hospitals are operating at a loss poses a direct threat to their existence and critically limits their capacity for essential investments in modernization and digitalization.

Gaß voiced a stark warning about the potential consequences. “We are heading towards a situation that will have dramatic repercussions for the German hospital landscape” he said, adding that patients will inevitably experience the fallout. He cautioned that “waitlist medicine will become a reality in Germany” referencing the potential for significantly delayed access to care due to hospital closures and reduced services.

The survey, based on responses from a representative sample of 376 general hospitals with over 100 beds (out of roughly 1700 nationwide), conducted between May and July 2025, underscores a critical failure in Germany’s healthcare financing model. While successive governments have attempted to address the issue, the persistent and worsening financial strain raises serious questions about the long-term sustainability of the healthcare system and the effectiveness of current political strategies. The findings suggest a fundamental recalibration of funding and payment mechanisms is urgently needed to avert a potential collapse of vital healthcare services.