How German Hospital Reform Impacts Demand for Planned Maintenance
Germany’s healthcare system is undergoing reforms to enhance quality of care and financial sustainability. These changes have profound implications for hospitals and laboratories, especially when buying new equipment. Understanding the impact of the new reforms is also crucial for OEMs and their service teams to maintain operational efficiency and compliance and meet the resulting increased demand for planned maintenance.
A summary of hospital reforms in Germany
Medical Device Regulation Reforms
The European Medical Devices Regulations (MDR) entered into force in 2017 and took effect in May 2021 and 2022, respectively.
Maintenance and service are integral to the European medical device regulatory framework. The MDR mandates comprehensive systems for post-market surveillance, vigilance, and quality management to ensure that devices remain safe and effective throughout their lifecycle.
Proper documentation, qualified personnel, and adherence to the manufacturer’s maintenance instructions are essential to this regulatory compliance.
However, delays in implementing the MDR reforms have created significant uncertainty for hospitals.
Reforms to update the Diagnostic-Related Group (DRG) System
The German Federal Government is implementing reforms to reduce financial pressures on hospitals and improve care quality. The DRG system, which provides flat-rate payments per case, is transitioning to a model where hospitals receive remuneration based on the services provided.
This long-term reform process, beginning in early 2024 and spanning five years, aims to make hospital care more sustainable.
Maintenance and service are integral to the functioning of hospitals within Germany’s DRG system. They impact the overall cost structure, quality of care, operational efficiency, regulatory compliance, and financial planning.
By ensuring that medical equipment and facilities are well-maintained, hospitals can provide high-quality care while staying within the financial parameters set by the DRG system.
Impact of the new reforms on hospitals and laboratories
The reforms will likely lead healthcare providers to make more strategic and quality-focused decisions regarding equipment purchases. The emphasis on service-based remuneration will drive investments in enhancing service quality and operational efficiency while also requiring careful consideration of cost, return on investment (ROI), and regulatory compliance.
Impact of the new reforms on OEMs and service teams
Our OEM customers in Germany tell us that the changes to the regulatory environment have led to a cautious approach, with hospitals and laboratories delaying purchases and investments in new equipment.
Consequently, the new reforms significantly impact the demand for planned maintenance services.
To that end, OEMs and service teams are encountering significant increases in the demand for planned maintenance services to ensure the continued reliability and performance of ageing equipment.
In short: Embracing change for mutual benefit
German hospital reforms present a period of transition for both healthcare providers and Original Equipment Manufacturers (OEMs) with their service teams.
While initial uncertainty might lead to a dip in new equipment purchases, a unique opportunity awaits those OEMs who can adapt creatively.
Hospitals and laboratories focusing on service-based remuneration are prioritising maximising the lifespan and efficiency of existing equipment.
OEMs and service teams that can cost-effectively address the consequential surge in the need for planned maintenance will be well-positioned during this crucial period.
More importantly, they’ll emerge as trusted partners in a future-proofed German healthcare system.