The Federal Council has approved a legal ordinance to set up a 50 billion euros transformation fund, which supports the modernization of hospital structures.
Funding for hospital reform will be available for 10 years starting in 2026, contingent upon federal states covering at least 50% of investment project costs. The Transformation Fund, part of the hospital reform (KHVVG), is designed to support projects that enhance inpatient care quality and structure. Eligible projects include the concentration of acute care capacities, restructuring hospital sites, developing telemedicine networks, establishing centers for complex diseases, forming regional hospital alliances, integrating emergency services, closing hospitals or parts thereof, and creating training capacities.
The Transformation Fund will draw from the Health Fund’s liquidity reserve, amounting to up to EUR 25 billion, requiring federal states to invest an equal amount to access the full funding. States can also co-finance hospital costs linked to the funded project. The application process will be conducted entirely online through a digital portal, simplifying the previous procedures. Minimal documentation will be required, making it easier for states to manage funding requests, which will be processed by the Federal Office for Social Security (BAS). The BAS will increase transparency by publishing a summary of funding data monthly on its website. This regulatory framework aims to streamline processes, reduce bureaucracy, and enhance the quality of inpatient care across the healthcare system.
