Healthcare costs rise sharply in Austria and Germany

Healthcare costs in Austria and Germany are facing significant upward pressure due to rising expenditures and regulatory shifts. In Austria, total healthcare spending (excluding long-term care) rose by 60 percent between 2015 and 2024, reaching 52.1 billion euros. This growth outpaced the nominal GDP increase of 44.4 percent. Public spending grew by 64.9 percent, while private spending rose by 46.3 percent. Additionally, four in ten Austrians report skipping dental treatments due to financial constraints.

In Styria, Austria, investigations are underway regarding allegations against the Barmherzige Brüder organization. Reports suggest that a pharmacy may have charged markups exceeding 1,000 percent on certain medications, potentially resulting in millions of euros in additional costs for the state through hospital loss coverage.

In Germany, a study by the AOK Scientific Institute (WIdO) indicates that a 2024 reform of medical fee structures (Hybrid-DRGs) led to 360 million euros in additional costs for statutory health insurance in 2025. While intended to shift procedures from hospitals to outpatient clinics, the reform unintentionally triggered a 17 percent increase in total operation numbers. Meanwhile, the KV Sachsen association anticipates an annual loss of 112 million euros in outpatient fees starting in 2027 due to upcoming austerity laws.