Berlin, 29 August 2025 (dpa/MIA) – Nearly three quarters of German hospitals posted losses last year, an increase that underscores growing financial issues in the country's health-care sector, an annual study by consultancy Roland Berger showed.

The survey of 850 hospital executives and managers published on Friday found that about 75% of facilities ended 2024 in the red, up sharply from the previous year when around half were still profitable. Public facilities were hit hardest, with nearly 90% reporting deficits.

"The number of hospitals with negative results keeps rising, while fewer are profitable," said Peter Magunia, health-care expert at Roland Berger. Losses at some facilities exceeded €100 million ($117 million), he added, warning that even strong municipal operators were reaching their limits.

Despite the pressure, insolvencies have risen less than expected as local governments divert funds to keep hospitals running. Still, the consultancy expects more mergers and closures in the the future, adding that hospitals are increasingly restructuring by reducing locations, narrowing services and expanding outpatient care.

The report estimated that German hospitals will need around €130 billion in investments for construction, IT and digitalization over the coming years. That sum far exceeds available funding, even with the federal government's €50 billion hospital transformation fund.

While hospital managers expect conditions to worsen in the near term, Roland Berger said they were cautiously optimistic about a recovery over the longer run – though not necessarily a return to profitability.