The German trade union Verdi has strongly condemned plans by the Federal Ministry of Health to implement significant budget cuts impacting hospitals and statutory health insurance funds. Union leader Frank Werneke voiced deep concern over the proposed reduction of €1.8 billion, warning it will dramatically accelerate the ongoing crisis facing hospitals across the country.
Already, numerous departments and entire clinics are being shuttered due to financial instability. Verdi argues that the current Health Minister is actively promoting a ruthless restructuring process, jeopardizing the security and accessibility of healthcare services for the population. Critics suggest this approach prioritizes budgetary constraints over the critical need to maintain essential medical infrastructure.
Beyond hospitals, the planned cabinet decisions place increased pressure on statutory health insurance funds. The government’s proposed cap on administrative expenses, drastically reducing them below 2024 levels, is perceived as unwarranted interference in the operational capacity of these vital organizations. Verdi characterized this measure as a “de facto austerity program at the expense of employees” pointing out that a considerable portion of administrative costs are tied to personnel – specifically, salary and wage expenses dictated by collective bargaining agreements. The union argues this limits the ability of health insurance funds to adequately manage resources and respond to the evolving needs of their members, potentially hindering preventative care and long-term healthcare stability. The move is being viewed by many as a politically driven attempt to appease fiscal conservatives, potentially at the cost of public health.
