Germany’s hospital reform aims to improve financial stability and ensure high-quality inpatient care across the country. Set to be implemented in stages starting January 1, 2025, the reform focuses on meeting patients’ needs while reducing bureaucratic burdens and enhancing access to essential medical services.
Many hospitals in Germany are experiencing financial difficulties, prompting the Federal Cabinet to approve a hospital reform aimed at stabilizing hospital care for the future. The reforms are designed to ensure high-quality treatment for all and to reduce bureaucratic obstacles within hospitals. Following approval from both the Bundestag and Bundesrat, the law has now taken effect.
Federal Health Minister Karl Lauterbach emphasized that these reforms are essential for ensuring adequate inpatient care in an aging society. Without structural adjustments, hospitals face risks of insolvency, compromised patient care, and longer travel times for patients. The central aim of the Hospital Care Improvement Act is to meet patients’ reasonable expectations, which include accessible rural hospitals, nearby maternity wards, prompt emergency care, and high-quality treatment for complex procedures.
Key features of the reforms include adjustments to the remuneration system, shifting from a flat-rate payment model per case to a system where hospitals are primarily paid based on the services they provide. Moreover, hospitals will be organized into “service groups” based on uniform quality criteria that apply throughout Germany. This allocation aims to ensure that healthcare services are provided only in well-equipped facilities with adequately trained staff.
The Länder (federal states) will maintain control over hospital planning, determining which institutions will deliver specific services. Additionally, the Länder can designate certain facilities to provide a comprehensive range of medical and care services, ensuring public access to quality basic care.
The reforms will be phased in beginning January 1, 2025, with the organization of hospitals into service groups expected to be completed by the end of 2026.
