Healthcare sectors face rising costs and funding gaps in Germany and Austria

Healthcare and nursing sectors in Germany and Austria are facing significant financial pressures due to rising costs and reimbursement issues.

In Germany, long-term care costs rose by 17.57 percent in 2024 to a total of 27 billion euros, driven by higher personnel costs, rising wages, and labor shortages. To mitigate rising private health insurance premiums, policy options include switching to basic or standard tariffs, increasing deductibles, or reducing specific service components like private rooms.

In Austria, home nursing services in Vorarlberg reported a deficit of approximately 659,000 euros for 2025. Johanna Rebling-Neumayr, managing director of the regional association, attributed the gap to a decrease in financial contributions from the Austrian Health Insurance Fund (ÖGK). The association criticized the ÖGK for using outdated point values for service reimbursement, which failed to account for increased costs in personnel, energy, and infrastructure.