One Third of Clinics Threatened by Insolvency; Calls for €4 Billion Aid Extension
Economy / Finance

One Third of Clinics Threatened by Insolvency; Calls for €4 Billion Aid Extension

The Deutsche Krankenhausgesellschaft (DKG) and the German County Council warn that more hospitals are at risk of closing and demand an extension of state financial aid.

Dr. Gerald Gass, chairman of the DKG, told the “Rheinische Post” on Thursday that the situation is dire: “Today 80 % of hospitals are reporting losses. One‑third of German hospitals face insolvency pressure – 16 % are highly at risk and another 21 % are at risk”.

Gass urges Health Minister Warken to prolong the financial support that is set to lapse in November 2025. “The federal balancing payment of four billion euros, which has helped hospitals stabilise their finances, must be extended” he said.

The county council’s president, Achim Brötel, added that the worst hits have been on churches’ and non‑profit operated facilities, as well as municipally run hospitals. “Our owners can no longer provide the necessary deficit compensations at the required level” he explained. From 2023 to 2025, counties alone have raised about 25 billion euros to shore up clinic losses.

Brötel calls for reforms to the hospital system: he wants the provisional capitation payments to be decoupled from case numbers, arguing that a case‑independent maintenance fee is essential. “Anything less will only accelerate the uncontrolled shutdown of rural clinics” he warned.