Distressed
Health Care
Political decisions are placing hospitals under enormous financial pressure. Starting with the change in remuneration for inpatient services to the DRG system from 2001, requirements have been tightened continuously. Increased demands for resource provision are coupled with reimbursements that can no longer readily cover these costs. The additional burdens recently decided under the Nursing Staff Minimum Levels Act and the new MDK Act are currently causing financial problems to grow significantly.
Inadequate strategic alignment and multiple inefficiencies in day-to-day operations regularly lead to a slide into the red. This confronts those responsible and the hospital owners with serious challenges and often painful decisions that can even result in the facility being closed.
To prevent this, decisive action is required—now.
It is clearly evident that for a great many hospitals—and therefore their owners—“business as usual”, i.e., continuing with merely “gentle optimization”, will no longer be sufficient. Instead, new paths that can be implemented consistently must be identified and pursued.
In the short term, the restructuring instruments provided for by the legislator offer effective improvements. They can be used to fundamentally reshape the business model, overcome liquidity crises, and reorganize liabilities. Depending on the situation, the various instruments are applied in a targeted and effective manner. The following restructuring scenarios are possible: