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A significant increase in the rate of hospital bankruptcies in Germany

According to the figures of the German Hospitals Association, the rate of bankruptcy of hospitals in this country has increased dramatically, and last year 78% of them were exposed to this risk and were in the red.
– International News

According to the report of the international group Tasnim news agency, newspaper ” “Stuttgarter Nakhreshten” wrote in an article: The financial situation of hospitals in Germany has worsened in the last year. While 54 percent of hospitals were in the red in 2022, 78 percent complained of budget deficits in 2023. This year, the German Hospital Association (DKG) expects that four out of five clinics will no longer be able to make ends meet on their own income. DKG CEO Gerald Goss presented the figures on Tuesday.

This tense situation is also reflected in the development of bankruptcies. While seven hospitals were due to file for bankruptcy in 2022, that number rose significantly to 34 last year. There were six more bankruptcies in January 2024.

“Gus” expects a very tense situation for clinics this year as the collective bargaining agreement in the public sector alone means A ten percent increase in hospital personnel costs.

These figures clarify the necessity of reforms. The battle over hospital reforms planned by German Health Minister Karl Lauterbach is currently the hottest battleground in politics. The German Minister of Health also admits that more than a hundred health institutions are at risk of bankruptcy. However, Lauterbach believes that he has already taken precautions.

The transparency law that has already been passed in the Bundestag consists of two parts.

In the first step, an online platform is to be created that will enable patients to quickly and clearly receive information about the number of cases and treatment successes in each clinic. Second, the clinics will receive six billion euros in short-term liquidity support. The amount Lauterbach believes is enough to finance hospitals. However, since the German federal states have strong reservations about the transparency part of the law, the whole package is currently stalled in the Federal Council.

These conditions The reason was the meeting that Lauterbach held on Monday with the associations of municipalities. Many municipalities are under severe pressure from their financial support of clinics. Goss said Tuesday that 55 percent of hospitals responded to the survey that the measures would have no effect on the risk of bankruptcy.

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