German hospitals face funding cuts after health‑care spar package

Germany's federal government approved a new austerity package for the statutory health insurance (GKV) that limits future funding for hospitals. Alexandra Weizel, managing director of the Catholic Sankt‑Katharinen Hospital in Frankfurt, warned that “the free nonprofit clinics will be the first to run out of money” as reimbursements are reduced and mandatory staffing levels become harder to finance. She noted that two‑thirds of German hospitals are already operating at a loss and that the reforms could force clinics to cover part of staff wages themselves.

Baden‑Württemberg Minister‑President Cem Özdemir echoed the concerns, saying the state has little room to create a rescue fund for hospitals and that “Baden‑Württemberg has the best hospital structures but is punished like everyone else.” He highlighted a projected deficit of up to €1.7 billion for hospitals in the state and placed responsibility for funding on the federal level. The package also includes measures such as contribution caps, higher patient co‑payments for medication and a location clause intended to support the pharmaceutical industry.

Both regional leaders argue that while the reform aims to keep health‑insurance contributions stable, it imposes significant financial strain on hospitals across Germany.