The Government Announces a 0.5% Increase in Hospital Rates in 2025

The government has decided to increase hospital rates by 0.5% for both public and private institutions in 2025, ensuring equal treatment between the two sectors. This measure aims to prevent tensions like those of the previous year when the rate increase was unequal: 4.3% for public hospitals compared to only 0.3% for private ones. Faced with this disparity, the Federation of Private Hospitals (FHP) had threatened to launch a general strike, which was ultimately suspended following new financial commitments from the state.

Financial Support in a Challenging Budgetary Context

In addition to this rate adjustment, additional funding is being allocated to healthcare facilities, whose financial situation remains concerning. Public hospitals, which are expected to show a €3.5 billion deficit in 2024, will benefit from full government coverage of the increase in retirement contributions for hospital civil servants, estimated at over €1 billion.

On the private sector side, an €80 million package is planned to implement a 2023 social agreement aimed at increasing staff salaries. Additionally, €220 million will be allocated in 2025 to compensate for the end of the Competitiveness and Employment Tax Credit (CICE).

Targeted Increases for Certain Sectors

The French Hospital Federation (FHF), representing public institutions, welcomes the government’s “clear support” despite a difficult budgetary context. It particularly highlights specific increases, such as a 2.5% rise for adult, pediatric, and neonatal intensive care activities, and a 2.7% increase for psychiatry.

An Overall Increase in Health Insurance Expenditures

In 2025, health insurance expenditures dedicated to hospitals, including hospital rates and other financial measures, will increase by 3.8%, reaching €109.6 billion. These expenditures will account for approximately 41% of total health insurance spending, according to the Social Security budget approved by Parliament. This increase includes a €1 billion boost decided by the Bayrou government after the fall of the Barnier government.

Thus, although this hospital rate increase remains modest, it is part of a broader effort to support the hospital sector, which continues to face significant financial challenges.