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Escalating expenses for health clinics' insurance coverage reportedly surge.

"Topped 100 billion figure"

"It's getting more expensive again": Emergency room at Freiburg University Hospital.
"It's getting more expensive again": Emergency room at Freiburg University Hospital.

Escalating expenses for health clinics' insurance coverage reportedly surge.

Health Minister Lauterbach intends to stop the skyrocketing expenses in the healthcare sector by enacting his hospital reform. The health insurance funds retort: The bill has been weakened. The medical field is now surpassing the 100-billion-euro milestone for the very first time.

Anticipated spending by mandatory health insurance funds for hospitals in Germany is likely to surpass 100 billion euros for the initial time this year. This signifies a near doubling of hospital costs since 2006, as per the Health Insurance Funds Association in Berlin. One-third of every contribution from policyholders now goes to hospitals. The Health Insurance Funds Association urged action from authorities to stop this trend.

"Hospital occupancy rates have dwindled to approximately 70 percent, yet costs continue to rise at an alarming rate," pointed out Susanne Wagenmann, Chairwoman of the Health Insurance Funds Association. "This cannot persist, that much is evident."

The Association advocated for reducing unnecessary offerings from clinics. This would enhance efficiency in resource distribution. Moreover, standardized guidelines should be imposed on hospitals nationwide. "In these uncertain times, social security, which includes dependable hospital care as a significant component, is a fundamental foundation for the social harmony of our society," Wagenmann remarked.

Required structural changes delayed

The hospital reform plan proposed by Federal Health Minister Karl Lauterbach attracted criticism from the Association. "The federal states have asserted their financial demands, hence it's mostly getting more costly while there's little hope left for the crucial structural reforms," the Association stated. According to the GKV, mandatory health insurance funds spent a grand total of 49.9 billion euros on hospitals in 2006. In 2023, this figure had already reached 93.9 billion euros, and it could surpass 100 billion euros in the present year.

Lauterbach reported a deficit in millions for the first three months of this year in the health insurance funds. The SPD politician also attributed the escalating expenses in the healthcare sector to the hospitals. With overcapacity and a 30 percent empty bed rate in clinics, the necessity for the planned hospital reform was once again emphasized, he claimed.

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The healthcare reform proposed by Minister Lauterbach aims to tackle the increasing expenses in the hospital sector, which is straining the healthcare system. The healthcare industry's escalating costs are forcing statutory health insurance companies to allocate a significant portion of their budget to hospitals. Critics argue that the delay in implementing necessary structural changes is exacerbating the problem, with the total spending on hospitals surpassing 93.9 billion euros in 2023. Karl Lauterbach has highlighted the role of hospitals in the rising expenses and the necessity for reform in light of overcapacity and high empty bed rates.

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