New regulations shaping the future of healthcare in Germany

Understanding the new landscape of investor-owned medical care centers

In recent years, investor-owned medical care centers, known as iMVZ, have sparked significant political discussions in Germany. Proposed legislation aims to enhance transparency regarding their ownership structures and ensure a more appropriate allocation of funds. While the initial discussions hinted at strict measures, including geographic restrictions and quotas, the current proposals seem less stringent. This shift suggests that investing in medical care centers could remain a viable option, contingent on the outcomes of ongoing legislative processes.

Transforming hospital remuneration systems

The previous health minister initiated a comprehensive hospital reform that aims to reshape the remuneration framework for hospitals. Transitioning from the traditional DRG-based flat-rate fees, the new system will primarily reward hospitals based on the services they provide or maintain. This innovative approach categorizes hospitals into specific “service groups,” outlining the range of services they can offer. Although adjustments for federal states are included, the new remuneration model is set to roll out after a three-year convergence phase, expected by 2027. This change could profoundly influence hospital planning, specialization, and regional care strategies moving forward.

The digital transformation of Germany’s healthcare sector

Digitalization is taking center stage in the German healthcare landscape, as evidenced by the establishment of a new federal ministry dedicated to this cause. Building upon existing initiatives, such as the implementation of electronic patient files, the coalition agreement outlines a comprehensive strategy to enhance telemedicine, digital solutions, and seamless data interoperability. Planned investments will focus on the digitalization of hospitals, university clinics, and care infrastructures, creating fertile ground for advancements in AI-supported treatments and care documentation. This digital push presents substantial growth opportunities for investors, especially in telemedicine, software development, AI, and connected medical devices.

Boosting Germany’s pharmaceutical research and production

In recent years, efforts have been made to position Germany as a leading hub for pharmaceutical research and production through strategies like the pharmaceutical strategy and the German Medical Research Act. The new government is committed to continuing these initiatives while enhancing Germany’s competitive edge in research, production, and innovation. The establishment of a national biobank aims to support preventive, precision, and personalized medicine, further solidifying Germany’s status in the global pharmaceutical landscape.

Financial sustainability in the statutory health insurance system

Ensuring the financial sustainability of the statutory health insurance (SHI) system without raising contribution rates is a top priority for the new government. While specific measures are yet to be outlined, a dedicated expert commission will be established to propose concrete actions by 2027. As part of this effort, the AMNOG procedure for evaluating new pharmaceuticals will be refined to balance access to innovative therapies with cost efficiency, potentially increasing financial pressure on pharmaceutical companies.

Local pharmacies and cannabis legislation

The coalition agreement emphasizes the importance of local pharmacies, proposing a one-time increase in their remuneration and allowing for cash discounts from pharmaceutical companies. Additionally, while the previous government partially legalized cannabis, the new coalition’s stance appears more cautious, favoring an evaluation of the law rather than further legalization. This focus on local pharmacies reflects a commitment to strengthen community healthcare services.

The future of healthcare in Germany

While the coalition agreement outlines significant intentions for the healthcare sector, many aspects remain vague and require concrete implementation. Stakeholders within the healthcare domain must stay vigilant, monitoring how these proposals evolve and preparing to capitalize on the opportunities they may present. The future of healthcare in Germany hinges on the actions of the new government and the priorities set forth by Health Minister Nina Warken.