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Tracking Financial Flows in the German Health System - P4H Network

Tracking Financial Flows in the German Health System

Germany’s health system, rooted in the Bismarckian model, is primarily financed through social contributions split between employees and employers, with sickness funds managing statutory health and long-term care insurance for about 74 million residents. The system features a broad network of public, private, and nonprofit providers with sickness funds as dominant payers, and relatively low expenditure on hospitals despite a high hospital bed density. Government funding covers less than 20% of healthcare costs, with ongoing reforms targeting more efficient resource allocation amid changing health needs and disease patterns.

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