Head of German Physicians’ Association Demands Massive Hospital Closures to Curb Health Costs

The chairman of the National Association of Statutory Health Insurance Physicians (Kassenärztliche Bundesvereinigung, KBV), Andreas Gassen, asserts that significantly increasing outpatient treatments could lead to substantial cost savings within the German healthcare system. He has called for the closure of additional clinics, stating emphatically that there are "still too many hospitals" and emphasizing the need for a "concentration of locations and genuine outpatient care (Ambulantisierung)." Gassen highlighted that hospitals are the single largest cost driver, an area where savings "can and must be made." He claimed that at least one in five in-patient cases—with health insurance funds suggesting up to 60%—could be managed on an outpatient basis, which is both cheaper and more patient-friendly. The lobbyist pointed out that in Germany, "operations are performed on an inpatient basis that have long been carried out as outpatient procedures in the rest of the world," reports NewsToday24 citing Spiegel.

Simultaneously, the physician lobbyist strongly cautioned against further cost-cutting measures by statutory health insurers (Kassen) targeting medical practices. Gassen criticized such actions, warning they are "driving the system and the care of people in our country into the ground." He noted that established doctors account for 97% of healthcare provision but receive only 16% of expenditures. Gassen warned that doctors and psychotherapists would not tolerate being expected to take on "constantly more tasks and receive less and less money," predicting that such policies would force more practices to close. He stressed that nearly 40% of general practitioners are already over 60 years old, and many "will simply close their practice then."

Gassen also advocates for the reintroduction of a former measure, suggesting "a kind of Practice Fee 2.0" where health insurers would collect money directly from patients. He argues that a €10 practice fee per quarter is "reasonable; that is the price of a Döner [kebab]." He recalled that the original practice fee once generated €2 billion per year for the health insurance funds. Furthermore, the physician sees major savings potential in homeopathy and health apps. According to Gassen, insurers currently spend €50 million annually on homeopathic services, which he demands be eliminated, arguing there is "no evidence that homeopathy works." He believes people are free to use these remedies if they wish but "not at the expense of contributors." He also regards digital health applications (DiGAs) introduced under Jens Spahn as dispensable, stating that "a lot of money is being wasted without proven benefit," noting that these apps cost around €234 million between 2020 and 2024, and the expenses continue to climb.

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