DRK Braunschweig/Salzgitter: declared bankruptcy – future uncertain!

DRK Braunschweig/Salzgitter: declared bankruptcy – future uncertain!

The German Red Cross (DRK) in the Braunschweig/Salzgitter region has filed for bankruptcy, a move that was announced on Wednesday. Despite the serious situation, it was emphasized that business operations will continue to run without restrictions for the time being under the supervision of an administrator. The district court ordered bankruptcy under self-administration after a restructuring concept was developed. Nico Seefeldt Kazazi, the board of the district association, was optimistic and sees good opportunities for a sustainable renovation of the DRK.

The reasons for bankruptcy are complex. Economic burdens caused by the corona pandemic and the enormous increase in energy costs following the Russian attack on Ukraine have made the situation significantly worse. However, a planned sale of a former nursing home, which should have brought in additional income, was delayed. In the past, the DRK generated around 20 million euros in sales and operates numerous facilities, including advice and youth centers, care facilities, daycare centers and two rescue stations. It is particularly important that the salaries of around 450 employees are secured by insolvency money from the employment agency.

The critical situation in the health sector

This insolvency is part of a worrying development within the German healthcare system. According to reports from the German Hospital Association, the monthly deficit for all clinics amounts to around 500 million euros. Despite a planned hospital reform by the federal government, the financial situation of many hospitals is dramatic. At a DRK hospital conference, DRK President Gerda Hasselfeldt expressed her concerns that the reform attempts were not enough to overcome the crisis, quite the opposite: nine DRK hospitals had to file for bankruptcy in the last few months. Hasselfeldt warns against neglecting the DRK hospitals, which play a central role in disaster control and crisis management.

In addition, according to Health Minister Karl Lauterbach, hospital deaths in Germany are an issue that will be with us for many years to come. Several hundred hospital closures are expected over the next ten years. The trend is already alarming: between 2020 and 2024, 88 hospitals declared bankruptcy, a drastic increase compared to 2018 and 2019, when only 10 bankruptcies were registered. The situation highlights the enormous challenges that hospitals face. These are mostly driven by rising prices for energy, medicine and personnel.

Calls for reforms

The DRK district association demands that the transformation in the German health system must be accelerated. A targeted reform of the hospital landscape is necessary to ensure long-term stability. The DRK President appeals to the federal government to provide more support so that the facilities can continue to meet the requirements of the common good in the future. Measures such as partial refinancing of tariff increases and faster payment of hospital claims are necessary to ensure the survival of the clinics.

At a time when the health sector is facing such drastic challenges, the continued existence of the DRK facilities is more important than ever. We must all work to secure medical care in our regions and offer the best possible help.

For further information about the development of the DRK's insolvency in Braunschweig/Salzgitter, read NDR. For more about the hospital reform and its effects on the DRK hospitals, click on DRK. You can find information about the current situation in the German healthcare system at Deutsche Wirtschafts Nachrichten.