Overview

• 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.