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Germany Approves Major Hospital Reform to Restructure Healthcare System

The reform aims to address financial pressures, enhance care quality, and implement a new funding model, but faces criticism over rural access and funding gaps.

  • The German Bundesrat has approved a sweeping hospital reform proposed by Health Minister Karl Lauterbach, set to begin implementation on January 1, 2025, with full rollout by 2029.
  • The reform replaces the current case-based payment system with a model where 60% of funding is allocated for maintaining essential services, aiming to reduce unnecessary treatments and improve care quality.
  • Critics, including hospital associations and local officials, warn that the changes could lead to closures of smaller rural hospitals, increasing travel times for patients in remote areas.
  • A €50 billion transformation fund will support restructuring efforts, but concerns remain over underfunding from inflationary pressures in recent years and its impact on struggling facilities.
  • The reform introduces 'performance groups' to standardize care quality nationwide, while also exempting hospital mergers from antitrust scrutiny to encourage regional consolidation.
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