More than three-fourths of hospitals in the affected region are operating at a critical capacity, struggling to cope with the increasing influx of patients.
In a recent study, management consultancy Roland Berger revealed that the crisis in German hospitals is far from over, with many institutions anticipating a further deterioration in the near future. The study, based on the responses of 850 hospital managers and executives, found that three-quarters of German hospitals incurred losses last year, a significant increase compared to previous years.
Peter Magunia, a healthcare expert at Roland Berger, stated that more hospitals are posting negative results, with some crippling losses exceeding 100 million euros. Even strong public providers are reaching their limits due to these losses.
The study shows that hospitals are expected to make significant transformations, including reducing the number of locations, changing their service portfolio, and investing in outpatient care expansion. The estimated investment need for the next few years is 130 billion euros, covering construction measures, IT, and digitalization.
However, the existing funding does not suffice for these investments, even with the 50 billion euros of the hospital transformation fund, which originates from the previous federal government. The fund was intended to support clinics in modernization, but it appears to be insufficient to cover the estimated investment needs.
The ongoing crisis may lead to significant reductions in the number of hospital locations and changes in service portfolios. Roland Berger predicts further hospital mergers and closures as a result. Specific German cities or regions expected to face hospital mergers and closures amid the crisis are not explicitly mentioned in the available search results.
To maintain healthcare provision, many municipalities are shifting funds and delaying other projects. Outpatient care expansion is a key focus for hospitals seeking to improve their financial situation. Despite the challenges, at least half of the hospitals were still operating economically in the previous survey.
The hospital transformation fund does not seem to be sufficient to cover the estimated investment needs, leading to concerns about the long-term profitability of hospitals, even with long-term improvement. The study warns of further hospital mergers and closures due to the ongoing crisis, underscoring the urgent need for action to address the crisis in German hospitals.
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