Germany's Care Sector Faces Financial Collapse as Over 1,200 Facilities Close

The insolvency of major provider Argentum highlights systemic issues in the care sector, including delayed payments, staffing shortages, and political inaction.

Since early 2024, 1,264 care facilities in Germany have declared insolvency or closed, according to the Employers' Association for Care.
On April 1, 2025, Argentum care group, one of Germany's largest providers, filed for self-administered insolvency for its four holding companies.
Chronic staffing shortages, rising operational costs, and delayed payments from health insurance funds are driving financial instability in the sector.
A care reform proposed in late 2024 by former Health Minister Karl Lauterbach stalled due to the collapse of the coalition government, leaving systemic issues unaddressed.
The Employers' Association for Care warns that the ongoing closures should prompt urgent political action to stabilize the sector and secure care provision for an aging population.