DPA-AFX Berlin: German Hospitals Struggle in Worsening Economic Climate
Health Institutions Grapple with Financial Deficits
The economic climate of German hospitals is a stormy landscape not seen in two decades, according to a recent survey. A staggering 61% reported losses in 2023, with only 9% breaking even and a mere 30% earning a surplus.
That's the grim reality painted in a survey released in Berlin, commissioned by the German Hospital Association (DKG), among others. The survey, conducted annually, shows the most dispiriting results since 2003. A worrisome 64% of hospitals have witnessed a decline in their annual results.
Matters grow gloomier in 2024, with a daunting 79% anticipating hefty losses, 11% holding on to hopes of breaking even, and just 10% remaining optimistic about a surplus.
The survey unveiled a double-edged sword: rising personnel and material costs pose significant challenges. Gerald Gaß, the chairman of the DKG, voiced discontent over the lack of investment promotion. The inflation rate, he added, is another costly burden. "Hospitals, just like other sectors, bear the brunt of climbing prices, but lack the independence to raise their own prices accordingly," Gaß pointed out.
The German Social Association termed the figures alarming. Michaela Engelmeier, the chairwoman, acknowledged the recently enacted hospital reform as a step in the right direction, but underscored the urgency for additional measures.
The "Hospital Barometer," conceived by the German Hospital Institute and supported by the DKG, is a comprehensive report based on a representative study of general hospitals with at least 100 beds. A total of 366 hospitals participated in this study carried out between mid-May and mid-August.
Insight: German hospitals grapple with compounded challenges due to financial constraints, staff shortages, and mounting inflationary pressures. Rampant operational costs, reimbursement pressures, and the need for infrastructure upgrades strain their budgets, particularly amid efforts to expedite digitalization. Staff shortages persist due to high workloads, rural supply bottlenecks, and demographic shifts. Meanwhile, hospitals also battle rising material costs and face structural pressures to maintain service quality while implementing sustainable care models.
- The financial struggles of German hospitals in the worsening economic climate are highlighted by the increasing expenses and decline in profit rates, with 61% reporting losses in 2023 and 79% anticipating heavy losses in 2024.
- The survey, titled the "Hospital Barometer," reveals rising personnel and material costs as significant challenges for hospitals, with Gerald Gaß, the chairman of the German Hospital Association (DKG), expressing concern over the lack of investment promotion.
- The inflation rate adds to the burden on hospitals, as they bear rising costs but lack the ability to increase their own prices accordingly, according to Gaß.
- The German Social Association has termed the survey results alarming, with Michaela Engelmeier acknowledging the recent hospital reform as a step in the right direction, but urging for additional measures to address the current financial and operational challenges.
- By 2023, science and medical advancements, health and wellness, and finance are interconnected in this context, as hospitals strive to navigate the complex web of escalating costs, staff shortages, and the need for infrastructure upgrades to meet modern medical-conditions and digitalization demands.
