Overhaul of German health system is Merkel’s first priority

Collapse of the proposed overhaul of the 123-year-old German health insurance system could raise doubts about Angela Merkel’s ability to head the coalition government. The controversial compromise plan has been put on hold for three months.

While it does not go far enough to solve the system’s financial problems, it is excessively bureaucratic and threatens jobs, say opponents (Bertrand Benoit, Financial Times 9/8/06).

The German system is described as being in crisis by an Oct 12 article in the New England Journal of Medicine. 

Although Germany spends 10.8% of GDP on medical services, higher than the average 8.9% for the 30 countries in the Organization for Economic Co-operation and Development, there was a 20% loss in the number of hospital beds between 1991 and 2004. Half of all local hospitals are now said to be operating in the red.

Large numbers of German physicians work abroad, and it will take more than money to restore job satisfaction (Dennis Nowak, “Doctors on Strike—the Crisis in German Health Care Delivery,” New Engl J Med 2006;355:1520-1522).