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Initiative: Health insurance companies should compensate for higher wages

Initiative: Health insurance companies should compensate for higher wages

Initiative: Health insurance companies should compensate for higher wages
Initiative: Health insurance companies should compensate for higher wages

Title: Encouraging Health Insurance Companies to Cover Wage Hikes in Hospitals

In a bid to push the federal government, North Rhine-Westphalia plans to submit a Bundesrat initiative focusing on hospital financing. Backed by the SPD within the NRW state parliament, this move aims to prompt the federal government to financially support hospitals encountering pressure. Health Minister Karl-Josef Laumann (CDU) disseminated this information shortly after the cabinet meeting in Düsseldorf, stating that the initiative will be presented on Friday. Besides NRW, Bavaria, Saxony-Anhalt, and Schleswig-Holstein will also endorse this proposal.

The crux of the demand is for the federal government to finance the agreed wage increases for hospital staff, a commitment yet to be fully adhered to by payers, including statutory and private health insurers. Laumann anticipates a majority vote in favor of the initiative during the Bundesrat meeting on Friday.

Burdened by high inflation and wage agreements, the fiscal health of numerous hospitals has weakened. The consequence of the case-flat rate system is that hospital work remains underfunded, leading some institutions to file for bankruptcy.

To alleviate the fiscal deficit caused by undercompensated wage increases in hospitals, the federal government could consider implementing strategies such as:

  1. Establishing a Transformation Fund
  2. Partitioning the fund equally between state governments and statutory health insurance, with the federal government contributing 40%, while state governments and health insurance cover 30% each.
  3. Revising Pricing and Reimbursement Frameworks
  4. Instating reference prices, negotiated reimbursement rates, and compulsory rebates to manage costs while ensuring fair compensation.
  5. Boosting Workforce Development and Retention
  6. Implementing scholarships or training programs to attract and retain healthcare personnel in undersupplied areas.
  7. Engaging in Collective Bargaining Agreement Negotiations
  8. Collaborating with healthcare unions to negotiate wage increases aligned with financial sustainability.
  9. Improving Efficiency
  10. Encouraging medical facility specialization and streamlining administrative processes to better manage resources.
  11. Implementing Regional Solutions
  12. Allocating funds specifically to regions requiring additional support.

By employing these measures, the federal government can mitigate the financial disagreement stemming from uncompensated wage increases in hospitals, fortifying the resilience of Germany's healthcare system.

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