German hospitals suffer losses: 66% of the sector is experiencing a financial crisis
Recent data from the German Hospital Association (DKG) reveals a critical financial situation threatening the healthcare infrastructure of Europe's largest economy. Based on a large sample survey conducted by the German Hospital Institute, the association announced that 66% of hospitals in Germany recorded significant financial losses in 2024. This announcement comes at a time when medical institutions are issuing repeated warnings about the worsening financial crises, which could lead to a wave of bankruptcies if the government does not intervene urgently.
Existential threat and restriction of investment
Commenting on these alarming figures, Gerhard Gass, president of the German Hospital Association, issued a warning: "When two-thirds of hospitals are operating at a loss, it's not just a statistic; it's an existential threat to these vital institutions." Gass explained that this financial deficit severely limits hospitals' ability to make necessary investments, particularly in technological upgrades and digitalization, which are the lifeblood of modern medicine.
The German official added that the current political austerity measures did not take into account the long-term consequences of this deficit, stressing that the federal government must assume its responsibilities and finally establish a stable and reliable funding base that ensures the continued provision of medical services at the usual quality.
The economic context and increasing pressures
To understand the depth of the crisis, one must consider the broader economic context surrounding the healthcare sector in Germany. Hospitals are suffering from a "price scissors" scenario, with operating costs skyrocketing due to inflation, rising energy prices, and increased salaries for medical staff to address a severe shortage of skilled workers. Meanwhile, the revenue hospitals receive from health insurance companies has not increased at the same rate. This structural imbalance in funding has made it impossible for many hospitals to cover their operating expenses, let alone generate profits for investment.
Austerity package and bleak outlook
The survey, conducted between May and July 2025, included some 376 of Germany's 1,700 hospitals, providing a strong indication of the sector's overall health. Political decisions further complicate the situation, as the Bundestag and the Federal Council approved an austerity package just before Christmas aimed at stabilizing health insurance premiums. This package imposes strict spending limits on hospitals, amounting to €1.8 billion in 2026.
However, these measures seem detached from the reality on the ground. According to data from the Ministry of Health, total expenditures are expected to rise by about 8 billion euros to reach 120 billion euros, thus widening the funding gap instead of bridging it.
A worrying outlook
Statistics point to a dangerous upward trajectory in the crisis; in 2023, the percentage of hospitals operating at a loss reached 61%, rising to 66% in 2024. This year, which is drawing to a close according to the survey's timeline, this figure is expected to reach 70% of all hospitals in Germany. This ongoing deterioration presents the German government with a difficult challenge: balancing fiscal discipline with maintaining a healthcare system that is among the best in the world.
