Fiscal Council Recommends Centralized Healthcare Funding to Tackle Costs

Austria's healthcare system requires urgent reform to ensure its long-term financial sustainability, according to a report by the Fiscal Council. The system is the second most expensive in the European Union, with expenditures already reaching nearly 50.5 billion euros in 2025. Without intervention, these costs could rise by approximately 2.6 percent of GDP by 2070, adding a significant burden to the public budget.

The report identifies a complex administrative structure and fragmented funding from federal states, the federal government, and health insurance providers as key reasons for the high costs. While spending is high, the report notes that this does not necessarily translate into significantly better health outcomes, such as life expectancy, compared to other countries.

Factors contributing to the increased spending include a higher demand for healthcare services, partly due to demographic changes and the rise of lifestyle diseases like diabetes and obesity. Price and wage increases in recent years have also played a role, particularly in stationary and outpatient treatments, which constitute the largest portions of healthcare expenditure.

The Fiscal Council proposes a three-pronged reform plan aimed at increasing efficiency and consolidating resources. Recommendations include joint, cross-regional purchasing of medical equipment and supplies, as well as shared use of facilities to eliminate redundant structures and optimize infrastructure utilization. The ultimate goals are to lower average costs per examination, reduce waiting times, and maintain, if not improve, the quality of care.