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Analyses

The reform of hospital remuneration and planning has started – first draft law expected in summer 2023

07 February 2023 | Policy Analysis

 

Based on the third statement and proposals from the Government Commission for a Modern and Need-Based Hospital Sector [1], the Federal Minister of Health and the Ministers of Health in the 16 Federal States started discussions on a fundamental reform of hospital remuneration in January 2023.

In its coalition agreement from 2021, the Federal Government agreed on reforms in the hospital sector, especially to expand the Diagnosis Related Groups (DRG)-based remuneration through the introduction of flat fees and to develop a new instrument for hospital planning based on defined service groups and hospital levels. For this, the Federal Minister of Health appointed an independent Government Commission to develop recommendations. The Commission published its proposal in December 2022, which combines the remuneration via flat fees with the new instruments of defined service groups and hospital levels (see Policy Analysis from December 2022).

Since 2004, hospital remuneration in Germany has been – apart from capital costs – based entirely on caseloads via DRGs. The Government Commission argues in its report that the current system leads to an increase in inpatient cases. Further, an international comparison shows that inpatient numbers are generally higher in Germany, especially for planned procedures like hip and knee replacements and avoidable hospital admissions like asthma or congestive heart failure [1]. A large number of hospitals, including many small ones without basic emergency facilities like stroke units, further characterize Germany’s health system.

Hospital remuneration is subject to federal law, but the states are in charge of hospital planning. Therefore, the Federal Minister of Health needs a common ground with colleagues from the states to realize the main aspects of the planned reform. So far, many stakeholders in politics and the health sector have shown agreement with the principle recommendations [2–5]. One potential challenge will be to define homogeneous service groups and hospital levels between the states.

The first draft of the new act is planned to be published in the summer of 2023, and the legislative process is expected to be finished by the end of the year [6].

 

Authors
  • Philipp Hengel
Country

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