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We determine the level and development of deficits during the period from 1998 to 2004 in German public hospitals and analyze the reasons for these deficits. Furthermore we discuss their implications for economic policy. In 2004, the deficits reach a peak of 3 billion Euro. Fixed effects estimations suggest that both the duration of treatment and the number of employees have a significant positive influence on the development of the deficits while the number of cases has a significant negative influence. The payment of public hospital deficits out of general budget resources constitutes an unjustified subsidy.

Defizite von öffentlichen Allgemeinkrankenhäusern in Deutschland: Empirische Befunde von 1998 bis 2004 und wirtschaftspolitische Implikationen