Germany's Nursing Sector Faces Crisis as Over 1,200 Care Facilities Close Amid Financial Struggles
April 7, 2025
Germany's nursing sector is in crisis, with over 1,200 nursing homes and care services reportedly declaring insolvency or closing between 2023 and 2024.
The situation is dire, as the Employers' Association for Care documented more than 800 insolvencies or closures in 2023 alone, indicating a troubling trend of 'home dying' across various types of care facilities.
Additionally, delays in payments from social services for contributions from needy individuals further exacerbate the financial strain on care providers.
The ongoing financial troubles in the nursing sector highlight the urgent need for reforms to ensure timely payments and sustainable funding for care providers.
The nursing company Argentum recently filed for insolvency on April 1, 2025, highlighting the industry's financial struggles amid a shortage of skilled workers and rising operational costs.
As negotiations for a new government in Germany unfold, there are calls for political action to strengthen care providers and prevent further closures.
The nursing sector is urging political parties involved in government negotiations to prioritize support for care providers and to stop treating them as 'beggars' towards health insurances.
Former Health Minister Karl Lauterbach announced a nursing reform in autumn 2024, but no significant improvements were made before the collapse of the governing coalition.
Currently, Germany has 11,250 nursing homes providing full-time care and 15,549 outpatient care services, underscoring the scale of the crisis.
Isabell Halletz, managing director of the Employers Association of Care, expressed concern over the loss of care places despite a growing demand for them.
Halletz attributed the financial difficulties faced by many care providers to poor payment practices by health insurance funds, which often delay payments and lead to significant debts.
Halletz has emphasized that the decline of care structures should serve as a warning sign for policymakers, urging them to take immediate action.
Summary based on 3 sources