Clinics make losses with critically ill patients

University hospitals with high losses in critically ill patients

02/04/2013

University hospitals with high losses in the treatment of complicated diseases. In view of the continuation of the previous lump-sum payments in the billing of medical services in the university hospitals and a withdrawal of the proposed changes by the Federal Government, the Association of University Clinics of Germany (VUD) has pointed to the negative consequences of the remuneration system.

From a cost point of view, dead patients in the current accounting system for clinics would obviously be better than critically ill. In order not to jeopardize its own profitability, the university hospitals would theoretically reject the inclusion of patients in particularly complicated cases. The system of lump-sum payments, in which a fixed amount is paid to the hospitals for each patient with a specific illness, only pays off if the disease is particularly fast or normal. However, if patients develop complications, they will easily incur actual treatment costs that are well above the fixed amount.

Clinics would have to reject complicated cases
Radically formulated, the previous system of lump-sum payments creates incentives to get rid of patients after exceeding the normal duration of treatment or to refuse complicated cases from the outset. Healing attempts that go beyond the normal measure would have to pay the clinics otherwise out of pocket. According to information from the Association of University Hospitals, annual costs of around 175 million euros are already falling at the university hospitals. „Although the gap between rising costs and declining revenues is a fundamental problem of hospital financing, the promised money will be deducted after two years“, The Association of University Clinics revolted early last week.

20 years failed hospital policy
For a long time, a much needed adjustment of the case flat rate system has been discussed. Here, according to many clinicians experts, the system of diagnostic-related case groups should apply (Diagnosis Related Groups; DRG). But with the current „Concept, the funeral of the German DRG system is ushered in by the government coalition“, criticized the Secretary General of the VUD, Rüdiger Strehl. „This ends the last ray of hope in 20 years of failed hospital policy“, so the conclusion of Strehl. (Fp)

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Clinics in Need: Every third person is in the red

Picture credits: Gerd Altmann