German Hospitals Face Financial Crisis as Insolvencies Surge

Rising costs, declining revenues, and structural reforms strain healthcare facilities, with closures impacting rural areas most severely.

Germany has seen 88 hospitals file for insolvency and 369 closures between 2020 and 2024, with 24 closures reported in 2024 alone.
The financial strain is attributed to rising costs for energy, medication, and staffing, alongside overcapacity and reduced demand for services in some areas.
Smaller, specialized hospitals with fewer than 1,000 employees are faring better financially compared to larger, general facilities.
In Brandenburg, at least 80% of hospitals are operating at a loss, prompting calls for federal financial support and structural adjustments to ensure long-term viability.
The federal hospital reform aims to reduce financial pressures and promote specialization, but its full implementation is not expected until 2029, leaving many facilities in immediate jeopardy.