The conflict between public and private hospitals over the allocation of the budget has come to a head, with public hospitals welcoming a 4.3% increase in reimbursement rates for hospital stays in medicine, surgery, and obstetrics, while private for-profit facilities are disappointed with only a 0.3% increase. The Minister of Health, Frédéric Valletoux, announced these new rates, which were eagerly anticipated as hospitals have been facing financial difficulties and deficits due to inflation. Both sectors had hoped for a 10% increase in rates to cover actual costs, but the government’s budget only allowed for a 3.2% increase in spending from the Health Insurance budget for 2024.
The government defends the decision to increase rates, stating that it will provide 3.2 billion euros in additional revenue for hospitals to support activity and meet the health needs of French citizens. The increase in rates will focus on areas such as medicine, pediatrics, maternity, transplants, and palliative care. As the “health debt” from the Covid-19 crisis amounts to 3.5 million missed hospital stays, the government aims to encourage hospitals to increase their activity by setting a target of 2.5% increase in activity for all establishments in 2024. While this goal is ambitious, it may be challenging for hospitals to achieve given that hospital activity only returned to pre-crisis levels at the end of 2023.
The differential treatment between public and private hospitals has sparked outrage among clinics, with the head of the Federation of Private Hospitals expressing shock at the significant gap in rate increases. In 2023, clinics saw a 5% increase in rates, while public hospitals had a 7% increase. This disparity has created tension between the two sectors, with private hospitals feeling unfairly treated. The Federation of Private Hospitalization, representing over 1,000 for-profit facilities, is pushing back against the decision and advocating for more equitable treatment in rate adjustments.
The disagreement between public and private hospitals reflects broader concerns about funding, resource allocation, and healthcare delivery in France. With both sectors facing financial challenges and pressures to meet increasing demand for services, finding a balanced and sustainable solution is crucial. The government’s decision to increase reimbursement rates for public hospitals while offering lower increases for private facilities has exacerbated tensions and highlighted systemic issues within the healthcare system. Addressing these disparities and fostering collaboration between all healthcare providers will be essential to ensuring quality care for all French citizens.
