Germany has embarked on a significant healthcare reform, marking one of the largest overhauls in the past two decades.

The reform, spearheaded by Health Minister Karl Lauterbach, aims to alleviate financial pressures on hospitals and enhance specialization.

The new system will shift from case-based payments to a model where 60% of hospital funding is allocated for maintaining essential services, reducing the incentive for unnecessary procedures.

This change is set to take effect on January 1, 2025, with full implementation expected by 2029. Despite some opposition, the reform has been approved by the Bundesrat, signaling a transformative step for the German healthcare system.

However, concerns remain about the practicality of certain provisions, such as rigid location requirements for hospitals, which may necessitate further adjustments.