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Hospital reform: Lower Saxony wants to prevent bankruptcies

Hospital reform: Lower Saxony wants to prevent bankruptcies

Hospital reform: Lower Saxony wants to prevent bankruptcies
Hospital reform: Lower Saxony wants to prevent bankruptcies

In the heated debate regarding hospital reform, Lower Saxony aims to deter hospital bankruptcies with a new proposal. According to this proposal, a collective transformation fund, financed by contributions from the federal and state governments, and up to 3.7 billion euros from the federal government's energy fund, will secure hospital financing, Health Minister Andreas Philippi reveals to the Hannoversche Allgemeine Zeitung. The SPD politician assures that this financing proposal is unaffected by the recent budget ruling of the Federal Constitutional Court.

In addition to this, the so-called state prime rate, which finances hospitals, will see an increase as early as July 2024. This advancement, scheduled six months before the planned date, aims to prevent bankruptcies, asserts Philippi. He emphasizes that the goal is to ensure hospitals can cover their expenses until hospital reform takes effect.

As part of hospital reform plans, the remuneration system for hospitals will undergo change. The current system, which pays hospitals flat rates for treatment cases, will be adjusted to reduce financial pressure and promote uniform quality standards. Hospitals will receive 60% of their remuneration simply for providing services. Furthermore, the basis for financing by health insurance funds will be defined more precisely, focusing on service groups that will ensure appropriate funding and strict quality control.

Philippi takes issue with the recently failed Hospital Transparency Act over resistance from the federal states. He argues that the Federal Ministry of Health wants to implement hospital classification into levels indirectly, using the Transparency Act as a tool. However, Philippi remains committed to finding a workable solution, even if it means making compromises.

  • Andreas Philippi's hospital financing proposal, including contributions from the federal and state governments and funds from the federal energy fund, remains unaffected by the Federal Constitutional Court's budget ruling.
  • The proposed transformation fund aims to prevent a wave of hospital bankruptcies in Lower Saxony by providing stable financing.
  • The state prime rate increase, which finances hospitals, is scheduled six months earlier than planned to help prevent insolvencies.
  • Hospital reform plans in Lower Saxony involve adjusting the remuneration system to reduce financial pressure, promote quality standards, and define financing bases more precisely.
  • The failed Hospital Transparency Act faced resistance from federal states, leading to disagreements and the need for compromise in finding a solution.

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Enrichment Insights:

Germany's hospital reforms necessitate addressing systemic issues, as evidenced by research on the DRG system's challenges and criticisms conducted by the Hamburg Center for Health Economics (HCHE). Meanwhile, broader national issues, such as salary issues and funding shortages in the Ukrainian healthcare system, highlight the importance of overall health policy reforms to tackle the challenges faced by hospitals and healthcare systems across the country. Additionally, research in the Journal of Economic Perspectives discusses welfare reforms and administrative burdens, which can indirectly impact healthcare funding and resource allocation.

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