German nursing care reform faces industry pushback over wage caps and funding changes

The German Employers' Association for Care (AGVP) and the Diaconical Employers' Association (VdDD) warned that the draft Pflegeneuordnungsgesetz (PNOG) would cap future wage growth for nursing homes at one percentage point below the basic wage rate for four years. They argue the restriction could raise out‑of‑pocket costs for residents, pressure facilities financially and reduce the number of care places unless providers gain more flexibility in staffing and service structures.

Care‑service operator Christian Heisig of Geomell GmbH also criticised the draft, sending a letter to Health Minister Nina Warken. He warned that redirecting care‑funds to direct cash payments for patients – reducing the budget for home‑care and short‑term services to €175 per month – would jeopardise the financing of residential and outpatient care services, potentially harming vulnerable patients and their families.