Hospital Financing Crisis Address in North Rhine-Westphalia and Schleswig-Holstein
Health Minister Kerstin von der Decken, CDU, along with her North Rhine-Westphalia counterpart, launched a Bundesrat initiative. The objective is to reassure the financial well-being of hospitals, grappling with inflation and tariff-related expenses in the near term. The proposal requests the federal government's persistent support in tackling such cost escalations.
Recent insolvency filings from numerous hospitals, including three in Schleswig-Holstein, highlight the urgent need for such assistance. Existing healthcare facilities across Germany are facing an existential threat due to mounting economic pressure. Von der Decken emphasizes the need for swift financial aid to avert more hospital closures and ultimately save essential healthcare providers.
The proposed reforms by Federal Health Minister Karl Lauterbach, SPD, are promising but delayed, as they won't come into effect until the second half of the current decade. As von der Decken stated, "we can't wait for this - we can't afford to compromise on quality and accessibility of healthcare during this intervening period."
To secure hospital viability and prevent additional insolvencies, the federal government needs to address cost escalations. The following measures can be employed for better financial management:
- Establishment of a Transformation Fund: Involve the federal and state governments, and health insurance funds to finance hospital reforms. The €50 billion fund, distributed equally over 10 years, could help address financial concerns and mitigate immediate increases.
- Federal Government Contribution: Allocate 40% of the necessary funds to the federal government, while state governments and health insurance providers share the remaining 30% each. This balances financial burdens and ensures hospitals receive the support they require.
- Risk-Adjusted Capitation Formula: Revise the formula used by German health insurers to reflect cost increases, giving more equitable distribution of financial liabilities.
- Regulatory Adjustments: Revise the pricing and reimbursement regulations for medical treatments and supplies, lessening the impact of inflation on hospital costs.
- Long-Term Financial Planning: Implement strategic financial planning like gradual premium increases and contributor rate adjustments for health insurers, enabling hospitals to prepare for future cost hikes.
- Legal Challenges and Reforms: Resolve legal disputes from health insurers and social welfare organizations by clarifying how these revisions will affect insurance contributions. This may necessitate reviewing the funding model to ensure fairness and sustainability.
By implementing these measures, the German federal government can provide hospitals with the financial assistance needed to overcome cost escalations, prevent insolvencies, and maintain essential healthcare facilities.
