Capacity Constraints

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There are three main problems with the healthcare system in Germany:

  1. Bad economics: cost of care is too high. This is driven by many factors, including reimbursement incentives, high manual work, various system inefficiencies and silos, and the medical field simply developing further and finding ever more cures for ever more diseases.
  2. Low supply: capacity is maxed out. The main drivers here are the lack of good job opportunities as a whole and the eroding reward/sacrifice ratio in particular, which pushes people out.
  3. High and uneven demand: people live longer and accumulate more and more diseases. The top 10% of patients - which is predominantly the population over 70 - generate 68% of the costs and because of the longer life spans (thanks to that very healthcare system!), this percentage is only getting bigger.

Is this fixable and how? A topic for next week.