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Hospital deficits escalating towards billions

Healthcare establishments reporting unprecedented financial success stirs up fresh worries and protests following recent hardships reported by struggling hospitals.

Hospital deficits escalating towards billions
Hospital deficits escalating towards billions

Hospital deficits escalating towards billions

In Baden-Württemberg, the financial situation of hospitals continues to deteriorate, with losses increasing year by year. According to the Baden-Württemberg Hospital Association (BWKG), the deficits of the state's clinics have surpassed the billion-euro mark for the first time this year.

The BWKG, an umbrella organisation representing hundreds of carriers with hospitals, preventive and rehabilitation facilities, and care facilities, conducted a survey revealing this troubling information. The survey found that at least 73 percent of hospitals in the state are currently operating in the red.

The deficits, totalling over 2.6 billion euros when combined with the deficits from the past two years, have placed a significant strain on public, private, and non-profit hospitals. Districts, such as the Alb-Donau district, are finding it increasingly difficult to cover the financial gaps of hospitals from their own funds.

Tübingen district administrator Joachim Walter stated, "Districts are no longer able to balance hospital deficits of this magnitude." Heiner Scheffold, the BWKG board chairman, echoed this sentiment, stating, "We are queuing up for funding."

Since 2023, districts have provided over two billion euros in hospital support payments. This year, districts are expected to provide approximately 770 million euros in subsidies for hospitals. However, this may not be enough to prevent a financial collapse of the clinics.

The funding provided by the federal government covers a large part of a clinic's ongoing expenses, including personnel costs, medication costs, utilities, and investments. Despite this, the federal and state governments are being urged to provide significant financial support to prevent a crisis.

Joachim Walter criticized the federal government for bearing more responsibility than the state in addressing hospital deficits. He called for the federal government to bear a larger share of the financial burden.

BWKG believes the federal government is primarily responsible for the financial situation due to insufficient coverage of operating costs. Health insurance companies reimburse patient treatments via a case-based payment, based on diagnosis and treatment effort. This system, while designed to ensure fair payment, may not adequately cover the full costs of hospital operations.

In response to the crisis, Baden-Württemberg's health minister, Manne Lucha, called for a "reform of the reform" to prevent an uncontrolled collapse of clinics. The minister's call for reform underscores the urgency of the situation and the need for decisive action to address the financial challenges facing Baden-Württemberg's hospitals.

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