Dresden Municipal Hospital is fighting against a loss of 15 million euros!

Dresden Municipal Hospital is fighting against a loss of 15 million euros!

It's no secret that the healthcare industry is currently facing major challenges. The Municipal Clinic in Dresden is no exception. In 2024, the clinic had to accept a considerable loss of almost 15 million euros, which was significantly lower the year before at 6.5 million euros. The main reasons for this financial imbalance are the sharp increase in personnel and material costs as well as exceptionally high collective bargaining agreements, as MDR reports.

The pressure on the clinic management is noticeable. In order to defuse the financial situation, the clinic is already planning savings measures. Originally, even higher losses were expected, but through an increase in treatments and targeted cost reductions, expenses were reduced by four million euros. With total revenue of 400 million euros in 2024, those responsible have great hope for future savings, especially through improving digitalization and optimizing medical processes.

The hurdles of digitalization

It is all the more depressing to realize that digitalization in German hospitals often comes to a standstill. A study by PwC Germany highlights that many hospitals have difficulty correctly estimating costs for future digitalization projects. This applies not only to the purchasing budget, but also to the actual operating costs, which are often not sufficiently taken into account in funding applications. This makes it all the more difficult for institutions like the Städtisches Klinikum to make the necessary investments, as the planned funding is often only sufficient for the initial investments and not for the ongoing costs, as the study by PwC shows.

Another obstacle is the unpredictable regulatory requirements and the provider market for digital solutions. This uncertainty can significantly complicate hospital financing forecasts. In addition, hospitals are often forced to take on additional work during implementation, which is why the need for personnel - especially in the IT area - is growing. A shortage of skilled workers in this sector makes it even more difficult for hospitals to acquire the required skills.

A step into the future

But there are also bright spots. Well-managed digitalization can not only help to improve the quality of medical care, but also offers new revenue models. The potential for digital business models is there, but getting there requires additional resources and development processes. A holistic digitalization that goes beyond the simple “electrification” of analog processes is urgently needed, according to the tenor from various expert discussions. The acute need for action is also reflected in the realization that the added value of digitalization is primarily of a qualitative nature, but is not easy to market in a time of tight budgets and high deficits, as the [information from kma](https://www.kma-online.de/aktuelles/it-digital-health/detail/finanzsluecken- Bremsen-digitalisierung-in-krankenhaeusern-51000) makes clear.

Overall, the Municipal Hospital in Dresden is faced with a complex balance between financial challenges and the need to find sustainable solutions. The coming months will show whether it is possible to get out of the spiral of red numbers and see digitalization as an opportunity rather than a burden.