Hospital Future Act
For hospitals and health IT-providers
With the Hospitals Future Act (KHZG), the federal government of Germany is supporting the digitization of German hospitals with in total 4.3 billion euros.
Flying Health offers consulting services to hospitals and health-IT providers in regards to the Hospitals Future Act (KHZG).
From the very beginning, we have worked closely with hospitals and providers of modern software solutions on innovative digital projects. We are pleased to contribute this expertise also for the projects which can be funded by the new law.
Flying Health offers support to hospitals in various phases – from the development of a fundamental IT strategy for sustainable digitization, the planning of projects eligible for the funding program, the preparation of applications for the KHZG funding, the market search for suitable technology partners and the definition of a long-term innovation strategy. In this context, we can either provide the full range of services or depending on your needs, focus on specific areas of interest or objectives of the KHZG. Our goal is to strengthen the usage of modern software and IT solutions to drive the digitization in hospitals for the future.
Picture of the future & IT strategy
Together with our hospital partners, we develop a digital picture of the future and identify the appropriate IT strategy based on the existing corporate strategy and individual positioning.
The IT strategy and the picture of the future are the foundation for the conception of applicable funding initiatives.
Projects, applications & requirement assessment
Together with our hospital partners, we conceptualize IT projects and provide support in the drafting of funding applications.
As an IT service provider certified by the Federal Office for Social Security (BAS), we focus on the coordination between application formalities, project content and funding conditions.
Selection of technology partners
We support our hospital partners in the search for suitable technical project partners and software solutions. With our broad market knowledge and targeted market research we provide specific solutions for individual funding objectives.
For medtech and software providers we offer different types of assistance to make effective use of the different opportunities offered by the KHZG. In the first step, we ensure the transfer of relevant knowledge regarding the funding opportunities and the current market situation for relevant teams including the product management, marketing and sales. Then we evaluate the product portfolio on the basis of the funding criteria (including MUST and CAN criteria) and develop a targeted marketing and sales strategy.
Expert briefing & know-how transfer
We ensure that health-IT & medtech providers we work with are receiving all the relevant information about the KHZG in the different federal states and are building internally a profound understanding of the funding program.
We evaluate the product portfolio of the health-IT & medtech providers to identify, if they are eligible for the funding conditions provided by the KHZG. In this context, we focus on the respective MUST and CAN criteria so that companies are able to communicate with their hospital customers on point. In addition, the three-year funding period also offers the potential to accelerate strategic product developments.
Marketing and sales strategy
Together with the manufacturing companies, we develop a marketing and sales strategy tailored to the requirements of the KHZG. Furthermore we accompany its implementation as a sparring partner and help create KHZG specific marketing material while also giving a better understanding on how to prioritize different target groups.
With the Hospital Future Act (KHZG), the German government is promoting together with the federal states digitization in German hospitals with up to €4.3 billion in funding. The law came into power on October 29, 2020, and after the publication of the funding guidelines by the Federal Social Security Office (BAS), the federal states as well as hospitals and health-IT & medtech providers started the implementation process.
Hospitals identify and develop relevant projects and submit corresponding requirement-notification (pre-application with intended projects) to their federal states. These have 3 months to review the outlined projects and, if approved, submit a formal funding application for funding of the project to the BAS. While the modalities and deadlines vary among the federal states, the deadline of Dec. 31, 2021 for submitting formal funding applications to the BAS is mandatory for all states. Alongside this, the status of digitization of the hospitals will be evaluated using a digital maturity model, which first will be applied in June 2021 and a second time around June 2023 to measure the success of the funding program and motivate hospitals.
In addition to the complexity of the application process, hospitals also face the prospect of receiving a penalty fee of up to 2% of their annual revenue which derives from providing healthcare services from 2025, if they fail to meet certain requirements in terms of digital maturity. This aspect of the KHZG has a potentially disruptive effect in the mid-term: on one hand, the risk of penalty fee applies to all hospitals, including those without any KHZG related funding at all. On the other hand, the specific modalities will still have to be negotiated between the German Hospital Association(DKG) and the National Association of Statutory Health Insurance Funds (GKV-SV). It is therefore essential, that hospital management strategically drives digitization, deploys sufficient resources, effectively sets up their IT and proactively responds to the changing environmental conditions. Digitization and a high-performance hospital IT infrastructure therefore not only secure the future viability of the institution, but also actively contribute to risk minimization.
Ulrich Pelster, CEO of the Schwester Euthymia Foundation
“In Flying Health, we found a very competent partner who not only accompanies us in our steps towards digitalization but also helps us to develop an innovative and sustainable IT strategy. This ongoing, trustful and partnership-oriented collaboration creates an strong fundament for our funding strategy for the Hospital Future Act.”
Dr. Carsten Giehoff, Head of IT at the Schwester Euthymia Foundation
“With Flying Health, we have found a partner who not only has strong expertise in the field of healthcare but also brings comprehensive knowledge of hospital IT. This is particularly important for us and very valuable, especially with regard to the Hospital Futures Act.”
and many more
Pioneers of the Hospital Future Act: A first review
Author: Laura Wamprecht, Dr. Adrian Schuster (March edition 2021)
Hospital Future Act: Current opportunities and challenges for hospitals and MedTech companies
Author: Laura Wamprecht, Dr. Adrian Schuster (15.03.2021)