Financial Struggles in German Hospitals as Christmas Bonuses Can’t Be Paid

Financing via loans
Many clinics cannot pay a Christmas bonus

November 12, 2023, 10:08 p.m

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The financial situation of hospitals in Germany is even more tense than feared. A survey shows that almost two thirds of clinics cannot afford Christmas bonuses for their own employees. Many people have to take out loans to do this.

Because of the tense financial situation, 60 percent of German hospitals are no longer able to pay the collectively agreed Christmas bonuses for their employees from normal operating income. This is reported by the Editorial Network Germany (RND) with reference to the autumn survey of general hospitals by the German Hospital Association (DKG). Afterwards, these clinics need subsidies from the sponsors, short-term liquidity loans from banks or both in order to pay out the Christmas bonuses. In the survey, almost 100 percent of hospitals assured that, despite the financial difficulties, they would pay out Christmas bonuses in full and on time.

The clinics largely describe the current economic situation as bleak. Two thirds of general hospitals rate them as “poor” (43 percent) or “very bad” (24 percent). A third of the houses describe the situation as “mediocre” (26 percent). Six percent gave the rating “good” and only one percent called the situation “very good”.

Criticism of Lauterbach: More deceptions than solutions

Due to the current situation, 42 percent of general hospitals expect to have to reduce their range of services in the next six months, for example by blocking beds or temporarily closing wards. 23 percent of the companies expect restrictions in the scope of services, for example by postponing planned operations, and 49 percent expect staff reductions. Eight percent no longer rule out location closures in the next six months.

“The study once again proves the dramatic emergency the hospitals are in,” said DKG boss Gerald Gaß to the RND. “We are obviously heading towards noticeable gaps in supply,” he warned, referring to the service restrictions expected from the clinics. “Federal Health Minister Karl Lauterbach will soon have to answer for this cold structural change to the detriment of patients,” said the association head. There must finally be full compensation for inflation, he demanded. So far, Lauterbach has only presented deceptive solutions as solutions. From Monday, the hospital industry will meet in Düsseldorf for the annual Hospital Day.