Hospitals Unable to Finance Public Service Tariff Increases

The public service tariff increase of 3.5 percent pay rise is effective retrospectively from 01.03.2012. It will also be applied to communally operated hospitals and will probably be adopted in a similar form by independent, not-for-profit operators. There is also the fact of cuts in hospital budgets amounting to 1.3 billion Euro for 2011 and 2012.

"The main problem for hospitals is the refinancing of current tariff increases while dealing with continuous, concurrent cuts", said the president of the German Hospital Association (DKG), Alfred Dänzer. "A price increase of 1 percent does not pay for wage increases of three percent and more."

This will probably lead to a worsening of the financial situation of these hospitals. The necessary financing could create a gap of one billion Euro. Hospitals cannot expect any further financial support from the federal government and statutory health funds.

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Commentary: ‚More money‘, is a continually recurring demand of hospitals. Every time there is a threat of additional expenditure, hospitals are demanding increased income at the expense of the health funds. A detailed look at the German hospital landscape shows many hospitals still have not dealt with their own problems, because it is possible for the majority of hospitals to plan for and finance an expected wage increase in a budget extending over a few years. Nevertheless, many hospitals still have the capability to lower expenses. Process optimization is often a priority in these cases. Specialized hospital consultations can be helpful in these circumstances.