Hospital Reform: Innovations in the German Healthcare System

The German healthcare system is undergoing significant changes with a new hospital reform. Starting in 2024, a new financial model will support hospitals and aims to enhance the quality of care and expand services while reducing bureaucracy. A key component of this reform is the introduction of "retainer payments."

New performance groups and quality criteria will be established to increase transparency within the healthcare system. The reform promises a fundamental restructuring of the hospital landscape in Germany.

Objectives of the Hospital Reform

The hospital reform aims to profoundly transform the German healthcare system. The main objectives are to improve the quality and efficiency of medical care, with three central goals:

Ensuring and Improving Treatment Quality

One of the main goals is to enhance quality in hospitals. Patient safety will be improved through new standards and processes, ensuring optimal treatment.

Ensuring Comprehensive Coverage

Another goal is to create a comprehensive network of hospitals so that every citizen has access to medical care, regardless of their location. The reform takes into account local needs.

Reducing Bureaucracy in the Healthcare System

The reform also aims to simplify administration. Efficient resource management will help relieve doctors and nursing staff, allowing them to focus more on patient care.

To achieve these goals, the reform plans a new financing model. Retainer payments will alleviate financial pressure on hospitals, improving the quality of care and promoting need-based treatment.

The New System of Retainer Payments

Germany’s hospital financing is changing. The old system of diagnosis-related groups (DRGs) will be replaced by retainer payments. This change will help hospitals maintain financial stability.

Retainer payments will make up 60% of hospital financing, providing financial security regardless of the number of treatments performed. This shift focuses on the quality of care rather than the quantity.

To qualify for retainer payments, hospitals must meet certain conditions:

• Provide specific services
• Adhere to quality standards

The new financing model aims to improve patient care and reduce competition. The remaining 40% of financing will come from DRGs, which will continue to provide incentives for performance improvement.

The reform provides hospitals with a stable financial foundation, aiming to ensure high-quality healthcare for everyone in Germany.

Introduction of Performance Groups and Quality Criteria

The hospital reform brings significant changes to the German healthcare system. A key component is the introduction of performance groups and quality criteria. These measures aim to improve the quality of care and establish uniform standards.

Definition of the 65 Performance Groups

The reform establishes 65 performance groups that cover various medical areas and treatments. Hospitals must meet specific quality criteria to offer and bill for these services. This is intended to promote specialization and enhance treatment quality.

Nationwide Criteria

Each performance group is subject to nationwide quality criteria. These criteria include the equipment and staffing of hospitals. This ensures that patients receive comparable care throughout Germany.

Assessment by the Medical Service

The Medical Service will assess whether the quality criteria are being met. These assessments are to be completed by the end of June 2026. After that, random sampling inspections will replace individual case inspections. This aims to reduce administrative burden and ensure quality assurance.

Hospital Reform: Innovations in the Financing Model

The structural reform in the German healthcare system introduces significant changes. Hospitals will transition from diagnosis-related groups (DRGs) to block payments. This change aims to improve hospital finances and enhance the quality of healthcare.

A key aspect of the reform is the introduction of cross-sectoral care facilities. These facilities integrate outpatient and inpatient care. This innovation helps to better coordinate patient care and optimize investments in healthcare infrastructure.

To increase transparency, a national hospital atlas will be introduced. This tool will assist patients in finding the right treatment facility. The atlas will be continuously updated to meet user needs and improve the quality of healthcare.

FAQ about Hospital Reform

What are the main goals of the hospital reform?

The hospital reform focuses on three main objectives: improving treatment quality, ensuring widespread care, and reducing bureaucracy in the system.

What is the difference between DRGs and block payments?

Previously, hospitals were paid based on the number of treatments. Now, block payments will provide financial stability regardless of the number of patients treated. The aim is to improve the quality of care rather than focusing on the quantity.

What are performance groups and how are they defined?

There are 65 performance groups with nationwide quality criteria. Hospitals must meet these criteria to offer specific services.

Who checks compliance with the quality criteria?

The Medical Service is responsible for checking compliance with the criteria. These checks are to be completed by June 30, 2026. After this date, only random sampling inspections will be conducted.

What other innovations does the hospital reform bring?

The reform introduces new care facilities that improve the connection between outpatient and inpatient care. A national hospital atlas will be implemented to provide greater transparency.