The German Hospital Association (DKG) is warning that a third of clinics nationwide may collapse following the hospital savings package approved by the Federal Council on Friday. Gerald Gaß, the DKG executive board chairman, stated in an interview with the “Rheinische Post” that the association must prepare for even more facilities to become financially unstable. He noted that since 2022, 85 hospitals across Germany, operating 102 locations, have already filed for insolvency, with some experiencing the fate twice.
According to Gaß, the reform diminishes the creditworthiness of these hospitals, many of which currently possess liquid funds lasting only four weeks. This puts the country at risk of a three-year wave of insolvencies that could lead to the disappearance of one-third of healthcare facilities. Clinics providing primary and general care in rural areas are considered particularly vulnerable.
Specific cuts are anticipated in services that are the largest drain on hospital finances: emergency departments, maternity units, and pediatric wards. Gaß pointed out that maternity services have already seen drastic reductions over the past decade. Nationwide, there are now only about 570 maternity wards, down from nearly 1,200. Since this area is heavily subsidized, continued unsustainable funding is not viable. Furthermore, a current survey of hospital operators suggests that 61 percent of maternity units are likely to close or restrict their services. Numerous clinics will also be forced to shut down their emergency rooms, meaning they will no longer be available around the clock.
In light of the escalating crisis, the DKG is calling upon the federal states (Länder) for assistance. Gaß asserts, “We are counting on the Länder.” He demands that they cover half of the eight billion euro savings volume-a sum equivalent to four billion euros-warning that failing to act will result in “cold hospital death” detrimental to both patients and regions.
