new measures to cut healthcare spending in germany

PharmacoEconomics & Outcomes News 503 - 20 May 2006

New measures to cut healthcarespending in Germany

A new law has been introduced in Germany intendingto curb spending on pharmaceuticals, reports the BMJ.1General practitioners and specialists will incur financialpenalties if their drugs budgets are exceeded, whilstthose who prescribe fewer and cheaper drugs will havebudgets increased. Effective from May 2006, it isexpected the changes will reduce the total spending onpharmaceuticals by €1.3 billion per year; the overallexpenditure in 2004 was €21.7 billion. Many doctorsand drug companies are opposed to the new law.

Further cost-cutting measures will be implemented inGerman hospitals via the introduction of a new financingsystem by 2009, also reported in the BMJ.2 The mainstayof the system is a fixed uniform charge for standardtreatments, whereby large hospitals receive the samefunding per case as small hospitals. Savings of €5 billionare anticipated in the overall hospital budget. However,the changes could lead to one in three hospitals facingthe threat of bankruptcy; it is thought that smallerhospitals will have the greater chance of survival.1. Tuffs A. German law to cuts drug costs angers doctors. BMJ 332: [2 pages], No.

7549, 6 May 2006. Available from: URL: http://www.bmj.bmjjournals.com.2. Tuffs A. One in three German hospitals faces bankruptcy. BMJ 332: 1114, No.

7550, 13 May 2006. Available from: URL: http://www.bmj.com.800996899

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PharmacoEconomics & Outcomes News 20 May 2006 No. 5031173-5503/10/0503-0001/$14.95 Adis © 2010 Springer International Publishing AG. All rights reserved