The 5% · Germany · Hospital prices

Why Germany hospital prices are lower

Germany sets one hospital price — a DRG, a tariff, or a budget. The hospital takes it. It cannot charge each plan a different secret multiple. In the US the must-have hospital extracts 2–3× Medicare from job plans that cannot walk. The insurer passes that through. It does not set it.

G-DRG inside state budgets

How it works

Statutory insurance (SHI) pays hospitals on G-DRGs. States plan hospital capacity. Outpatient doctors use one EBM fee schedule for everyone. A small private slice exists; it does not set 3× rates for the rest of the country.

Why it holds

The hospital bills a DRG, not a chargemaster. It cannot write a different secret multiple for each fund. Same sepsis, same ICU — a German night. That is why the hospital index lands near 38¢, in the same neighborhood as France.

The invoices

SKUUnited StatesGermany
Hospital unit vs US commercialmodeled$1.0038¢
Bypass at that indexmodeled$89,094~$34,000

See iFHP, RAND hospitals, Papanicolas.

Also: Why Germany brand drugs · Who bargains with whom · Bargaining chips · The rulebook · Problems / solutions · National debt · Hospital voices · Back to The 5%