Munich, Germany – The federal government’s plan to save 16.3 billion euros in healthcare by 2027, primarily through the Contribution Rate Stabilization Act of the statutory health insurance (GKV), is causing significant alarm among Munich’s hospitals. These drastic cuts, aimed at closing funding gaps in statutory health insurance, will affect not only insured individuals and nursing staff but also hospitals, forcing them to prepare for substantial reductions.
München Klinik Faces 32 Million Euro Hit
The municipal München Klinik (Mük) is projected to lose approximately 32 million euros due to the reform. Götz Brodermann, CEO of Mük, stated, “This austerity measure hits us very hard, and it comes at the worst possible time.” Mük is already in the midst of a reform process, ‘Mük20++’, which was initiated to address its difficult financial situation. This concept involves consolidating departments, restructuring emergency care, expanding outpatient services, optimizing work processes, and adjusting staffing levels. Brodermann insists that the core medical concept of ‘Mük20++’ remains unchanged.
Despite reporting a deficit of 104 million euros in 2025 and an expected 94 million euros by the end of 2026, indicating initial success in their savings efforts, the GKV reform will add further financial strain. Many Bavarian hospitals, like Mük, are still implementing the Hospital Supply Improvement Act of 2024. “This renewed austerity measure deprives us of the time needed to further implement these reforms,” Brodermann emphasized.
Concerns for Nursing Staff and Patient Care
Stefan Jagel (Die Linke), a member of the Health Committee, echoed these concerns, stating that the federal government’s “extremely aggressive austerity measures” are hitting hospitals in the midst of an already challenging process. He believes the savings will primarily come at the expense of nursing staff and patients.
The reform includes significant cuts to the nursing budget, introduced in 2020, which previously covered almost 100 percent of personnel costs and collective wage increases. “This will no longer be the case in the future,” Jagel explained. The cap will also hinder the recruitment of new staff. Furthermore, funding for nursing relief measures, which hospitals could claim as an additional 2.5 percent of the nursing budget since 2025, will be eliminated from 2027. Jagel warned that this could prevent the refinancing of nursing assistants, leading to a “dramatic increase in the workload of nursing staff.”
LMU Klinikum and TU Klinikum Also Heavily Affected
The University Hospital of Ludwig-Maximilians-University Munich (LMU) also anticipates significant revenue losses due to the GKV reform. Markus Lerch, Medical Director and CEO of LMU Klinikum, stated, “It will increase our double-digit million deficit from 2025 by another double-digit million deficit.” Lerch believes that if the reform proceeds as planned, none of Germany’s 37 university hospitals will be able to operate profitably. “This is insidious,” he remarked, especially since LMU Klinikum, like other hospitals, is already implementing “savings measures at every turn.” These are painful processes, he added, as they involve personnel. “A three-digit number of employees were not replaced in 2025,” Lerch lamented, indicating that further personnel cost reductions are almost inevitable with these new austerity measures.
Stadtrat Jagel fears that the GKV savings will not only lead to more red figures in hospitals but also “accelerate hospital closures.” In 2024, five hospitals in Bavaria closed, followed by six in 2025.
The Klinikum of the Technical University of Munich (TU) estimates that the GKV reform will “significantly burden” its operations, expecting a “double-digit million amount.” While the TU also aims to make healthcare “more efficient and future-proof,” it warns that insufficient consideration of real cost developments-particularly collective wage increases, medical-technical progress, digitization, critical infrastructure requirements, and demographic changes-will create “additional structural funding gaps.” This could “long-term restrict” the operational scope of university maximum care facilities.
Protests and Future Outlook
Employees of the München Klinik already protested against the federal government’s austerity measures a week ago, joining other hospital staff across Germany. The Verdi trade union has called for a central rally for clinic employees on Wednesday, June 10, in Hannover, coinciding with the Health Ministers’ Conference. Nadine Adlich, spokesperson for the Verdi works council at Mük, expressed frustration, stating, “We are still grappling with the implementation of the Lauterbach reform at Mük. Where else are we supposed to cut?” She fears that further personnel cuts will come at the expense of the clinic, nursing staff, and patients. Adlich hopes the rally can still influence Berlin, emphasizing that cuts to public services should not continue.
Source: https://www.sueddeutsche.de/muenchen/gesundheitsreform-einsparungen-kliniken-muenchen-li.3492099
