DRK Braunschweig: Insolvency registered - Is there hope for rescue?

The German Red Cross in Braunschweig reports bankruptcy. The reasons are economic burdens and increased energy costs.
The German Red Cross in Braunschweig reports bankruptcy. The reasons are economic burdens and increased energy costs. (Symbolbild/NAG)

DRK Braunschweig: Insolvency registered - Is there hope for rescue?

In the Braunschweig/Salzgitter region, the news of the bankruptcy of the German Red Cross (DRK) causes excitement. It was announced on Wednesday that the DRK district association filed for bankruptcy. However, the business operations will be continued under the supervision of a lawyer. The district court has ordered bankruptcy in self -administration, which means that the DRK has developed a renovation concept, and board member Nico Seefeldt Kazazi believes in good opportunities for sustainable renovation. Despite this situation, the salaries of around 450 employees are secured by bankruptcy money from the employment agency, so that the workforce is financially secured for the time being.

The reasons for this step are obvious. The economic loads caused by the Covid 19 pandemic, as well as the increased increased energy costs due to the Russian attack on Ukraine are heavily increasing. However, an additional planned sale of an earlier nursing home that should contribute to financial relief was delayed.

background of the hospital crisis

The problems of the DRK are not an isolated case. Almost every sixth hospital in the DRK is in a similar location and has filed for bankruptcy. The DRK President Gerda Hasselfeldt reports that free non-profit organizations such as the DRK in particular suffer from the financial burden, since they can only form a limited reserves. The situation in many German hospitals is worrying: A survey by the German hospital company shows that over 80 percent of hospitals are in the red figures. The deficit amount of many clinics has increased to over 14 billion euros. A quick way out is not in sight, and the challenges by the hospital reform, which aims at a stronger specialization of the facilities, could further tighten the situation.

The pressure on these facilities is immense. Clinics have to invest several hours in bureaucracy every day, which requires additional staff. Many clinic managers are skeptical of the planned reforms of the Ministry of Health, which provide for an indecisoryization of the remuneration system. Rural institutions could fall behind in particular due to these changes.

The future of the DRK

What does this mean for the DRK and its facilities? Despite the bankruptcy, the district association still aims to maintain all services. This includes advisory and youth centers, care facilities, daycare centers and rescue guards. The need for financial support and structural reforms to stabilize the industry is obvious. Otherwise, the vicious circle could further tighten, in which more and more clinics are going the same way as the DRK.

The developments related to the bankruptcy of the DRK and the tense situation in the hospital landscape make it clear that a rethink is required here. Health policy urgently needs to be tackled to prevent further loss of facilities and ensure health care. The cycle of financial bottlenecks and administrative stress is no longer portable.

For the people in Braunschweig and the surrounding area, it is to be hoped that the upcoming renovation measures of the DRK will be fruited and a sustainable solution will be found. The commitment of the employees and the extensive offers of the DRK must not fall behind.

NDR reports that ...

ZDF reports ...

Tagesschau illuminates ...

Details
OrtHarz, Deutschland
Quellen