Photo by Adhy Savala on Unsplash
The hospital landscape in Germany is changing. The number of privately-run hospitals has continued to rise in recent years and is increasingly influencing care structures. Since 2014, there have been more private hospitals than public ones, and this trend is continuing. But what impact does this development have on profitability, staffing structures and investments?
According to current data, around 40% of German hospitals were privately run in 2023. This represents a continuous increase compared to previous years, when non-profit and public providers still dominated.
It is particularly noteworthy that the sale of hospitals to private operators has continued to increase in recent years. While the public sector is struggling with financial bottlenecks, private operators are increasingly investing in modern medical technology, digitalization and infrastructural improvements.
An analysis of current market studies and reports shows clear differences in the financial and performance figures of hospitals depending on their ownership:
Personnel costs & efficiency:
On average, public clinics have higher personnel costs and a higher cost of materials in relation to turnover.
Private and non-profit facilities often work with more efficient cost structures.
Personnel structure:
Private providers generally employ fewer staff per 1,000 treatment cases than public clinics.
Investments:
Private hospitals invest more in modernization and medical technology than public hospitals.
Debt ratio & cost of capital:
Public hospitals often have a higher debt ratio and rising capital costs, while private clinics use more flexible financing models.
Increasing privatization brings both challenges and benefits:
Advantages: Higher investment in medical innovations, more efficient structures and often more economically stable clinics.
Challenges: Strict profitability requirements, increased pressure on medical staff and frequent adjustments to the range of services.
Developments in private ownership are leading to increasing demands on specialists and managers. BESTMINDS actively accompanies this change and places experienced clinic managers, chief physicians and senior physicians as well as strategic purchasers at clinics of all sponsorships.
Benefit from our many years of experience and our network when filling key positions.
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