Crisis-stricken Hospitals Brace for Extreme Actions

In the heart of Europe, German hospitals are facing a financial crisis that is forcing them to reconsider their strategies and structures.

According to the annual Roland Berger hospital study, the situation is dire. Last year, around three-quarters of clinics in Germany recorded losses, with the share of public hospitals recording losses almost reaching 90 percent. The financial situation of public hospitals is reaching its limits, and the deficits of individual hospitals sometimes exceed 100 million euros.

To weather this storm, several hospitals are forming hospital associations and closing one or two of their facilities. The Bundesverband Deutscher Privatkliniken e.V. (BDPK) and the Deutsche Krankenhausgesellschaft (DKG) are among those planning to unite, as indicated by their active involvement and discussions around hospital reforms and crisis responses. However, specific formal names of merged entities have not been detailed in the available information.

Capable public providers are reaching their capacity limits due to the financial crisis, and many municipalities are shifting financial resources and delaying other projects to support hospitals. Hospitals are also changing their service portfolio to adapt, investing in the expansion of outpatient care as a strategy to cope with the financial crisis.

The crisis is causing German hospitals to restructure and merge. Some hospitals are discussing mergers across different providers and counties. The number of hospital mergers and closures is expected to increase, as hospitals are reducing the number of their locations as a means to improve their financial situation.

Despite the challenges, the surveyed facilities are striving to maintain healthcare for as long as possible. In 2023, just under half of the facilities were still operating economically, according to the survey conducted among 850 business managers and executives from hospitals.

The number of hospitals with negative annual results is continuing to rise, but there is a glimmer of hope. Fewer and fewer hospitals in Germany are making profits, but the resilience of the healthcare sector remains strong. German hospitals are proving their adaptability in the face of adversity, demonstrating a commitment to providing quality care despite the financial challenges.