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[BUSINESS] · Germany · 24 sources

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German hospitals face rising deficits and insolvency risks

A study by Roland Berger reveals a severe financial crisis within the German hospital sector. In 2025, 73 percent of surveyed hospitals reported deficits, with 56 percent reporting losses exceeding 10 percent of their revenue. Some institutions reported deficits as high as 25 percent, leading experts to warn that the number of hospital insolvencies is likely to rise sharply.

To mitigate these losses, many facilities are planning significant cost-cutting measures. Approximately 68 percent of hospitals intend to reduce nursing staff, while 86 percent plan cuts in administration and other departments. Additionally, over half of the surveyed hospitals plan to postpone or cancel investments in medical technology and infrastructure.

These financial pressures coincide with government reform efforts. The German government is moving forward with the Pflegeneuordnungsgesetz (PNOG) to address rising care costs, while the GKV-Beitragssatzstabilisierungsgesetz aims to stabilize health insurance contributions. In the outpatient sector, the Kassenärztliche Bundesvereinigung estimates annual honor losses of approximately 1.64 billion euros due to the removal of special remunerations, with total outpatient savings projected to reach 3 billion euros by 2027 and potentially 5 billion euros annually by 2030.

Entities

American Hospital Association · Carsten Linnemann · Friedrich Merz · Germany · Jonas Hollacher · Kassenärztliche Bundesvereinigung · Roland Berger · United States

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