GERMAN MEDICAL INSTITUTIONS FACE MASSIVE BANKRUPTCY

The recently increased cost of natural gas and electricity may cause a crisis in the entire health care system in Germany. According to a survey conducted by the German Hospital Society (DKG), the heads of about 40% of the country's clinics expect possible bankruptcy.
According to German publications, hospitals and nursing homes are under significant economic pressure throughout the country.

In addition to problems with staff shortages, the authorities are now most concerned about rising energy prices and high inflation. 

German politicians representing the "greens" are calling on the federal government and the land authorities to provide urgent financial assistance to medical institutions.

It is noted that inflation in the country in August reached 8.8%. For Germany, this is a record figure for the last half century.

The authorities in Berlin have already tried to take measures to reduce the cost of public transport and reduce gas taxes. However, out of more than 900 utilities throughout Germany, more and more organizations are reporting liquidity problems. At the same time, the insolvency of one enterprise causes a chain reaction in others.

Health Minister Karl Lauterbach, representing the SPD, has already promised clinics and nursing homes a package of assistance in September. Another regional health minister, Petra Grimm-Benne, representing Saxony-Anhalt and currently chairing the conference of regional ministers, also considers it necessary to allocate assistance from the country's budget. She calls for the federal authorities to compensate for inflation.

Experts note that the economic situation has a negative impact on all areas of the daily life of hospitals, starting from cleaning the premises and ending with patient nutrition. 

There is a rapid rise in the cost of medical products and, above all, those imported to Germany from abroad. At the same time, the profitability of the health insurance system is still at the same level.

DKG estimates the financial gap in hospital revenues at €9 billion. At the same time, about €4 billion are costs related exclusively to fuel and electricity prices. As the head of the organization Gerald Gass noted, clinics may soon find themselves in a state where they will not be able to pay salaries to employees. Therefore, they need very prompt "non-bureaucratic" assistance from the state.

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