Wave of hospital bankruptcies in Germany

The Aussiedlerbote newspaper quoted DKG Chairman Gerald Gass as warning: “We are currently seeing more defaults than usual and 2024 risks being a record year for defaults.”

The national healthcare system is severely understaffed with healthcare professionals. (Image: EXCEL MEDICAL)

The German Hospital Federation (DKG) warns that the situation for hospitals in the country is worse than ever, with the number of bankruptcies projected to peak in 2024. According to a survey published on December 27th by the German Hospital Institute (DKI), approximately 80% of hospitals in the country are expected to report negative results this year, and most fear that the economic situation will continue to worsen next year.

Following nearly 40 bankruptcies in 2023, the number of hospitals filing for bankruptcy could double due to anticipated sharp increases in staffing costs. Almost no hospitals currently have sufficient revenue to cover expenses. Furthermore, hospitals have not received investment funding for decades. In addition, hospitals in Germany are not allowed to independently adjust prices while facing inflationary pressures similar to other sectors of the economy. This imbalance is increasingly leading to insolvency and bankruptcy. DKG Chairman Gerald Gass warned that German hospitals will face a deficit of €10 billion ($11 billion) by the end of this year.

The main points of the hospital reform plan were agreed upon in July of this year. The German Ministry of Health (BMG) and related agencies are currently discussing these details.

This warning comes as thousands of clinics across Germany are set to close during the week between Christmas and New Year 2024 due to doctors' strikes protesting overwork and a severe shortage of healthcare professionals in the national healthcare system. A recent study by PwC (Germany) shows that by 2035, Germany could face a shortage of up to 1.8 million skilled healthcare professionals. Meanwhile, many doctors are considering changing professions, with only about 30% of those surveyed saying they might remain in their jobs until retirement.

HANH CHI

Source: https://www.sggp.org.vn/lan-song-vo-no-benh-vien-o-duc-post720330.html