Germany Faces Alarming Wave of Nursing Home Closures

Over 1,100 care facilities have shut down since 2023, driven by staffing shortages, rising costs, and limited government investment.

Overview

In Mecklenburg-Vorpommern, three nursing homes have closed in the past two years, with another scheduled to shut down in January 2025 due to contract terminations by care insurance funds.
Saxony reported eight nursing home closures in 2024, contributing to a decade-long trend of declining care facilities in the region.
Nationally, 1,143 care facilities have ceased operations or filed for insolvency since 2023, with many others reducing services due to financial and staffing challenges.
Key factors behind closures include rising operational costs, delayed payments from care insurers, and a lack of investment from state governments.
The growing reliance on ambulatory care is attributed to soaring costs for residential care, with average monthly out-of-pocket expenses increasing by 15% in 2024.