German hospitals fare well despite the economic crisis
In its sixth issue, the Hospital Rating Report, first introduced to the public in Berlin during the 2010 Capital City Congress for Medicine and Health, again examined the financial situation of German hospitals. The study shows financial improvement during 2009 and 2010, despite the economic crisis, but forecasts that it will deteriorate again from 2011.
Community hospitals are particularly likely to feel the effects of the high level of debt of their local authorities. Thus further advances in productivity are required; a shake-up in some regions is also feasible. Rural regions particularly need new, economically sustainable kind of healthcare provision – for example, the complete integration of out- and in-patient sectors.
2008 was a difficult year for hospitals, but 2009 and 2010 – despite the economic crisis – could show better results due to revenue growth generated through the Hospital Financing Reform Act (KHRG). Whilst around 16.4% of all hospitals were at an increased risk of insolvency in 2008 and ‘in the red’, in 2009 this was the case for only 11% of hospitals, with 8% forecasted for 2010. However, after this the financial situation for hospitals is expected to deteriorate again. To prevent a situation where 18% of hospitals could be in the red by 2020, average annual cost reductions of 0.25% through increases in productivity are required.
The Hospital Rating Report 2010 is based on a sample of 713 annual financial reports from 2007 and 2008 and cost and revenue projections for 2010. In total, the annual financial reports cover 1,032 hospitals.
07.07.2010
