Nursing homes in Hameln: Closing threatens – financial crisis in the healthcare system!

Nursing homes in Hameln: Closing threatens – financial crisis in the healthcare system!

In recent years there has been an alarming development in the care industry in Germany: more and more facilities are under massive financial pressure. The Curanum Weserbergland center for care and nursing in Hameln has now announced that it will close its doors. This is another worrying sign in an already tense situation, exacerbated by rising costs and skills shortages. Dewezet reports that the Leben am Park facility in Hameln is also affected by the insolvency of the care group Argentum, which was filed for on April 1, 2023.

The situation is not only dramatic locally. According to the Care Employers Association (AGVP), a whopping 1,200 care facilities filed for bankruptcy in 2023/24. The affected locations are noted on a map with the title “Home Death Germany”. The average contribution for residents in the first year is 2,984 euros, which represents a high financial burden. This is happening at a time when the use of social assistance for residential places is constantly increasing, as pensions are often not enough to cover the costs.

Main causes of the crisis

The reasons for this precarious situation are diverse. In addition to the constant shortage of skilled workers, which is bringing many facilities to their knees, personnel and material costs are also rising. daily news points out that more and more large nursing home operators such as Dorea, Curata and the Hansa Group are having to file for bankruptcy. Smaller facilities are particularly affected, such as the Ursula Lambertz House in Kalterherberg, which is struggling with 38 places, of which only 17 are currently occupied.

Home manager Andreas Nowack reports a long waiting list, but the home remains under pressure due to the threat of insolvency. Over a third of nursing homes are already making losses and many can only operate economically if they are at least 98% occupied. But the reality is different: the need for care is increasing, while a whopping 100,000 nursing staff are missing.

The role of financing and negotiations

A key problem is the long processing times for grants from the authorities. The institutions often have to make advance payments and wait up to nine months for the funds to be approved. Those responsible see the payment behavior of the nursing care funds as a main reason for the financial difficulties. The AGVP is even demanding punitive interest from payers because of the delays.

The providers' difficulties are further exacerbated by the tariff binding, which has stipulated since September 2022 that nursing homes have to pay according to the tariff. While larger, non-profit organizations such as the Red Cross are under a little less pressure because they do not have to generate high returns, smaller and private providers are often left behind.

In order to stay afloat, facilities like the Ursula Lambertz House are breaking new ground. Apparently the plan is to expand to 80 places, but construction costs are rising here too. In order to become more attractive as an employer, they rely on incentives such as a 1,000 euro welcome bonus, job bikes and fitness club memberships to attract new employees. Given the ongoing difficulties, there remains concern that many facilities remain at risk and may have to close, which would have serious consequences for affected residents.

The already precarious situation clearly shows that the nursing sector in Germany urgently needs to be reformed. Rising costs, an acute shortage of skilled workers and pressure on facilities pose challenges not only to providers, but above all to the people who rely on these important services. It remains to be hoped that suitable solutions can be found before even more homes have to close their doors.