Cabinet Approves Amendments to Hospital Reform for Enhanced Flexibility

The German federal cabinet has given its approval to a new legislative proposal aimed at refining the ongoing hospital reform. This move is intended to introduce greater flexibility in the implementation of reforms within the healthcare sector, particularly in the operation and management of hospitals across the country.

The revised draft legislation, initiated by the Federal Minister of Health, is set to address several concerns raised since the initial rollout of the reform. Key objectives remain focused on improving the efficiency of healthcare services and maintaining high standards of care quality. However, the amendments are designed to make the reform more adaptable to everyday clinical realities, especially in less urbanized regions.

Core aspects of the proposed changes include the introduction of broader exemptions and enhanced opportunities for cooperation between hospitals, as well as extended transition periods for adapting to new requirements. These measures aim to prevent disruptions in healthcare provision, particularly in rural areas, where access to medical services can be more challenging.

The original reform, which came into effect at the beginning of 2025, had been subject to significant debate and criticism. Both the CDU and SPD parties agreed to revisit and refine the legislation as part of their coalition agreement, following widespread feedback from states and healthcare providers. The reform's primary intention is to streamline the network of over 1,700 hospitals, ensure financial sustainability, and reduce the pressure to increase patient volumes purely for funding purposes.

Financially, the reform introduces a new model based on distinct "service groups." These groups are intended to more precisely define the types of treatments provided and ensure consistent quality standards regarding hospital personnel and expertise. The updated legislative package reduces the number of these service groups from 65 to 61, aiming to simplify implementation while maintaining the reform's core principles.

Another significant element of the amendments is the provision for state governments to exercise greater autonomy in planning hospital locations and services. The previous obligation to adhere strictly to national standards for accessibility and distribution will be relaxed, giving states the ability to adapt the reform to local needs more effectively.

Additionally, several updates to hospital reimbursement procedures are scheduled to take effect one year later than initially planned, providing healthcare institutions with additional time to comply with the new requirements. This is expected to alleviate some of the financial and administrative pressures faced by hospitals during the transition phase.

The legislative proposal, now moving to the Bundestag for further deliberation, does not require approval from the Bundesrat. The government emphasizes that while the framework is being adapted for practical implementation, the overarching goals of optimizing service delivery and upholding quality standards in patient care remain unchanged.

In summary, the cabinet's endorsement of these amendments marks a pivotal step in the evolution of Germany's hospital reform. By granting more flexibility and extending cooperation options, the government aims to ensure that high-quality healthcare remains accessible across the nation, with particular attention to the unique challenges faced by rural and regional hospitals.