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Germany’s Healthcare System Must Shift from Cost Center to Strategic Growth Driver, Say Industry Leaders

Submitted by J. Mikhail on
Germany’s Healthcare System Must Shift from Cost Center to Strategic Growth Driver, Say Industry Leaders

SHERIDAN, WYOMING – May 15, 2025 – With healthcare leaders calling for a fundamental strategic reorientation, the two-day Gesundheitskongress des Westens in Cologne concluded with a clear message: Germany must stop treating its healthcare system merely as a financial burden and start leveraging it as a growth catalyst.

“Healthcare is a strategic field of the future – one with the potential to invigorate our economy, unleash innovation, and reposition Germany competitively on the global stage,” said Claudia Küng, Congress Director. In light of international developments—such as the showcased digital progress from a Chinese delegation—Germany is urged to adopt a bold, clear national strategy to unlock healthcare’s full potential.

Digital Transformation Gains Ground with Electronic Patient Records

A focal point of the congress was Germany’s recent rollout of the electronic patient record (ePA), seen as a crucial step in digitizing healthcare infrastructure. Dr. Florian Fuhrmann, CEO of gematik, highlighted rapid adoption rates following the national launch in late April.

“In just one week, around 18 million ePAs were activated,” Fuhrmann reported, emphasizing the shift needed toward patient-centered data management. “To realize the full potential of the ePA, we must move away from organization-centric data storage,” he stated. According to Fuhrmann, the architecture of Germany’s ePA is positioned to reclaim digital leadership in Europe. “To my knowledge, ours is the only ePA in Europe that can operate with artificial intelligence,” he noted.

Hospital Reform Urgently Needed to Tackle Cost Surge

The congress, the first major healthcare event following Germany’s national election, spotlighted urgent fiscal challenges. Professor Christian Karagiannidis warned of a critical threshold being crossed, with hospital spending exceeding €100 billion for the first time in 2024.

“We are living beyond our means,” he cautioned. The proposed hospital reform—seen as vital for the sustainability of the system—must be swiftly implemented. “We’ve lost over a year. The law must now quickly pass through the Bundestag,” Karagiannidis stressed, highlighting the importance of a digital coordination center to manage patient flows effectively.

Strategic Reform Requires Collaboration and Flexibility

Helmut Watzlawik, Head of Hospital Care at the Ministry of Health in North Rhine-Westphalia (NRW), stressed the importance of thorough preparation and inclusive stakeholder dialogue. “Major reforms cannot be rushed,” he asserted. Watzlawik called for amendments to the Hospital Care Improvement Act (KVHHG), particularly:

  • Greater regional exemptions for rural hospitals
  • Expanded opportunities for inter-facility cooperation
  • A broader definition of specialty hospitals

He cautioned that overly rigid quality mandates could undermine rural healthcare provision.

National Standards vs. Regional Exceptions: A Heated Debate

However, proposals for broad regional exemptions met resistance. Prof. Josef Hecken, Independent Chairman of the Federal Joint Committee (G-BA), strongly opposed long-term exemptions from quality standards.

“Poor care isn’t always better than good care that’s 15 kilometers away,” Hecken stated, warning that permanent opt-outs would equate to a “policy failure.” He did concede that transition periods for critical access hospitals might be reasonable, but insisted that quality benchmarks remain intact.

Primary Care Model Sparks Divided Opinions

The federal government's plans to introduce a primary care gatekeeping system also stirred debate. While consensus emerged on the need for better outpatient patient navigation, Dr. Frank Bergmann, Chairman of the Association of Statutory Health Insurance Physicians in North Rhine-Westphalia, cautioned against unrealistic workloads.

“Depending on the region, each general practice could see 500 to 1,000 additional cases,” Bergmann noted. “That cannot be the solution. If we want navigation to be effective, we need a more nuanced approach.”

Healthcare as a National Growth Lever

Under the theme “Untangling the Knots: Liberating the Healthcare System,” the congress attracted nearly 800 participants from hospitals, policymaking, healthcare business, academia, and nursing. An additional 500 attendees joined virtually, reflecting broad industry interest in reshaping the sector.

As Germany confronts demographic pressures, workforce shortages, and rising costs, industry voices at the congress were unified: healthcare reform must be strategic, data-driven, and inclusive—transforming the sector into an engine for national competitiveness.

Learn more about the Healthcare Congress of the West at https://www.gesundheitskongress-des-westens.de