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European Union of Private Hospitals

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GERMANY

German hospitals in comparison

oCTOBER 2018.

The PricewaterhouseCoopers (PwC) indicators 2018 on financial and performance of German hospitals have just been released. This report compares the ratios of public, non-profit and private health care providers each year. For the study, PwC evaluated key figures of 100 German hospitals for the year 2017.

German public hospitals are struggling with high maintenance rates, postponed modernization measures and are performing worse than non-profit and private hospitals in almost all financial metrics.

This is in short the conclusion of the study.

Private hospitals demonstrate efficiency

In average, personnel costs represented 60% of German hospital operating revenue, material costs 27%. Public hospitals scores are in average 8% higher than private hospitals.

Although private hospitals handle less ‟cases” per full-time employee in 2017, the Case-Mix-Index calculating the severity of ‟cases” treated in relation with the amount of economic resources engaged, shows that private hospitals work more efficiently.

The bed occupancy rate reached almost 78% in private hospitals for the year 2017, the best rate.

German private hospitals also achieve the best ranks in the financial analysis part, liquidity, investment rate, indebtedness, etc. and show the highest own capital investment capacity. The EBITDA ratio for private hospitals amounts 8% (public sector -6%).