CONSULTING IN THE HEALTHCARE INDUSTRY

The healthcare market is undergoing massive and profound transformation:
Demographic shifts among patients and healthcare professionals, medical advancements, increasing outpatient care, and digital transformation are driving significant needs for adjustment and optimization in hospitals and healthcare facilities.

Hospital-based inpatient care is reaching its economic limits; many hospitals, especially smaller ones providing basic and standard care, are in financial distress. The healthcare system, as a strictly regulated market, is divided into an outpatient sector and an inpatient sector, which so far have been separated by strict boundaries.

The federal government is planning comprehensive hospital reform and has published key points regarding the future financing of hospitals. Fundamental agreements on the reform's contents have been negotiated with the responsible federal states. At its core, the reform aims to reduce financial pressure on hospitals by restructuring funding to cover fixed costs through so-called standby allowances, thereby addressing the systemic inefficiencies of the current DRG-based case payment system.

One of the government’s goals is to consolidate and reduce the number of smaller hospitals, which are often located in rural areas. These hospitals face not only financial challenges but also increasing regulatory requirements that they can barely meet. A significant number of hospitals nationwide are expected to either convert to new healthcare delivery models or close; the state is supporting these transformation and consolidation measures with substantial subsidies.

Outpatient healthcare provided by private practice physicians is also undergoing structural changes. In addition to shortages of specialists in certain medical disciplines, there are significant gaps in rural healthcare due to a lack of general practitioners. Older physicians are retiring, and younger doctors are hesitant to take over rural practices.

In this evolving legislative environment, policymakers favor the establishment and operation of local, multidisciplinary health and care centers in rural areas. These centers are intended to provide basic medical care as well as care and treatment for the elderly and chronically ill patients. As a result, the previously distinct sectors of healthcare and elder care will become more interconnected in the future. This presents new opportunities for providers in both markets.