Overview

• The reform aims to reduce the number of hospitals by a few hundred, primarily targeting those in west German cities due to a lack of medical necessity.
• Approximately one-third of hospital beds are currently unoccupied, and many facilities are operating at a financial loss.
• The reform will shift financial incentives, providing hospitals 60% of their funding for maintaining specific services rather than volume of cases.
• Rural hospitals essential for healthcare access will receive additional subsidies to ensure their survival.
• The reform, set to begin in 2025, is expected to stabilize health insurance contributions by 2026, following a predicted increase in 2025.